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Economy / Bolivia

Drug Success Prevents U.S. Sanctions

October 2007 | Risk Summary
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Bolivia has been deemed by the US to have done enough to fight the drug trade in the last year to avoid economic sanctions. The success allows Bolivia to escape a possible cut-off in aid donation from the US, which could have resulted if it had 'failed demonstrably' to meet its counter-narcotics commitments. However, with President Evo Morales intent on courting anti-US leaders such as Iranian President Mahmoud Ahmadinejad, relations between Bolivia and the US remain patchy, which could pose financial risks going forward.