Abstract. When Evo Morales, former coca grower and leader of the coca-growers’ union, was elected president of Bolivia in 2005, many observers of Bolivian politics anticipated that Bolivia would rapidly cease cooperation with the United States in the “War on Drugs.” Such a change, however, has not been apparent. What explains Bolivia’s continued cooperation?  I argue here that US-Bolivian trade policy, which enables the US to use trade preferences as a carrot to promote Bolivian drug policy, may best explain this apparently anomalous behavior, suggesting that trade may be an effective tool in promoting non-economic foreign policy goals. (pp. 76–104)

JEL: F13, J51, N72, N76

Keywords: trade, drug, policy, US, Bolivia, tool

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