The Complex Relationship Between Chile and Bolivia: Historical Grievances, Trade Agreements, and Recent Legal Rulings

The current relationship between Chile and Bolivia is complex and multifaceted, influenced by historical, economic, and political factors.

Historical Context

The relationship between Chile and Bolivia has been historically strained, primarily due to the War of the Pacific (1879-1884), which resulted in Bolivia losing its coastal territory and becoming a landlocked country. This conflict has left a lasting impact on Bolivian national identity and its foreign policy towards Chile.
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Diplomatic Relations

Diplomatic relations between Chile and Bolivia have been intermittent. Bolivia severed diplomatic ties with Chile in 1978 and re-established them in 2003. However, the relationship has seen periods of tension and cooperation over the years.

Recent Developments

  1. Trade Agreements: Bolivia and Chile have a "complementary agreement" (ACE 22) that eliminates or reduces tariffs on specific products. This agreement is part of Bolivia's broader trade strategy, which includes various bilateral and multilateral trade agreements.
  2. International Court of Justice (ICJ) Ruling: In a recent ruling, the ICJ addressed a dispute over the waters of the Silala River, affirming Bolivia's rights and sovereignty over the water flow and the management of artificial canals. This ruling calls for ongoing consultations between the two countries to manage the Silala waters cooperatively.
  3. Political and Emotional Components: The relationship is also influenced by the emotional and symbolic significance of Bolivia's historical claim to regain access to the Pacific Ocean. This claim is deeply rooted in Bolivian national identity and has been a central issue in Bolivian politics and foreign policy.
  4. Mercosur Membership: Bolivia gained full membership in Mercosur in 2023, while Chile remains an associate member. This membership provides Bolivia with tariff reductions when trading with full members but does not grant full voting rights or free access to members' markets.

Current Status

As of now, the relationship between Chile and Bolivia is characterized by a mix of cooperation and tension. While there are ongoing efforts to manage shared resources and resolve disputes through international courts, the historical and emotional components continue to influence the bilateral relationship.
In summary, the relationship between Chile and Bolivia is complex, with historical grievances, ongoing trade agreements, and recent legal rulings shaping their interactions. The emotional and symbolic significance of Bolivia's maritime claim remains a central element in their diplomatic relations.