In a dramatic shift for Bolivian foreign policy, President Rodrigo Paz has reestablished full diplomatic relations with the United States, putting an end to nearly two decades of frosty ties and ideological isolation. The announcement came just hours after Paz, a 58-year-old former senator of the moderate Christian Democratic Party (PDC), was inaugurated on Sunday, November 9, 2025, in La Paz. The move signals a new era for Bolivia, one that Paz hopes will bring the country back into the international fold and help address its deep economic woes.
The inauguration ceremony itself was a regional affair, drawing leaders from across the political spectrum. Notable attendees included Argentina’s Javier Milei, Paraguay’s Santiago Peña, Chile’s Gabriel Boric, and Uruguay’s Yamandú Orsi. Their presence underscored the significance of Bolivia’s political transition. As reported by Newsmax, President Milei, who also inherited a battered economy, told Paz, “I know what you’re receiving, I speak from experience.” Paz replied, “Good advice will be given. We are good at receiving advice.”
The U.S. delegation was led by Deputy Secretary of State Christopher Landau, who arrived in La Paz on Friday, November 7. Landau described the trip as the “most emotional” of his career, reflecting on the strained U.S.-Bolivia relationship over the previous 20 years. “Our countries have been estranged for 20 years and I’m thrilled, on behalf of President Donald Trump and Secretary of State Marco Rubio, to usher in a new era of cooperation and partnership for the good of both our peoples,” Landau posted on social media, according to Newsmax. Paz responded warmly: “What a pleasure to have you in our little wonder, Deputy State Sec. Thank you for joining us in the rebirth of Bolivia.”
Moments after his inauguration speech, Paz held a press conference with Landau to announce the restoration of full diplomatic relations at the ambassadorial level. “We’re going to establish those relations,” Paz declared, standing alongside Landau. Landau added that the two countries would now “reestablish relations at the ambassadorial level, as it should always be. It has been historic that we have not had ambassadors, that is very important.” Both sides expressed hope that ambassadors would be named soon, marking a return to the status first established in 1849 and elevated to full Embassy status in 1942.
Paz’s decision to restore ties with Washington is a sharp reversal from the policies of the Movement Towards Socialism (MAS) party, which had ruled Bolivia for nearly 20 years. The long rupture began during the first term of Evo Morales, who expelled the U.S. ambassador and suspended the Drug Enforcement Administration (DEA) in 2008, accusing them of spying and conspiring against his government. These accusations were never substantiated, but they set the tone for a relationship marked by suspicion and minimal cooperation. Although partial diplomatic ties were restored in 2011, the relationship remained tense, with neither Morales nor his successor, Luis Arce, allowing the DEA to resume operations in Bolivia.
In his inaugural address, Paz did not mince words about the legacy he inherits. He described Bolivia as “devastated … morally and materially indebted, with endless lines for fuel and empty markets.” He added, “Bolivia is rejoining the world, never again isolated. Never again will the country be held hostage by an ideology; ideology doesn’t put food on the table.” According to Breitbart, Paz further criticized his predecessors: “This is the country they left us. What the hell did they do with all that prosperity? Why are there people, families who have nothing to eat today, if we were so rich with so much gas and lithium as our future? They will answer to the nation for the poverty and need of every Bolivian man and woman.”
The economic context for these statements is dire. As reported by Newsmax, the MAS party’s statist economic model, which once thrived during the commodities boom of the early 2000s, has since collapsed. Natural gas exports have sputtered, generous subsidies have become unsustainable, and chronic fuel shortages plague the country. U.S. dollars are scarce, and the fixed exchange rate has contributed to mounting debt and economic stagnation. Against this backdrop, a majority of Bolivians voted for Paz, who promised major reforms but at a more gradual pace than his right-wing opponent, Jorge "Tuto" Quiroga, who advocated for an International Monetary Fund bailout and a fiscal shock program.
“The country we inherited is devastated,” Paz reiterated during his press conference. “Morally and materially indebted, with endless lines for fuel and empty markets.” He has pledged to cooperate with all international organizations on security matters, including the DEA, whose return would mark another major departure from MAS-era policies. According to Newsmax, after the election, Paz announced that his government would welcome cooperation with the DEA and other global agencies, a clear signal that Bolivia is ready to tackle drug trafficking and organized crime with international support.
U.S. Secretary of State Marco Rubio, in an official statement, welcomed Paz’s victory as a “transformative opportunity for both nations” to collaborate on investment, immigration, security, and other pressing matters. The State Department emphasized the United States’ commitment to a strong partnership with Bolivia rooted in mutual prosperity. This sentiment was echoed by Landau during his visit, as he stressed, “We want good relations with the Bolivian government, and that is what we will do.”
The MAS party, once a near-monolith in Bolivian politics, suffered a historic defeat in the August 2025 general elections. Reduced to just two seats in the Chamber of Deputies and none in the Senate, MAS has been effectively wiped out from power. Paz’s victory over conservative former President Jorge Quiroga in the October runoff further cemented the electorate’s desire for change.
For many Bolivians, the restoration of ties with the United States is more than a diplomatic gesture—it represents hope for economic recovery and reintegration into the global community. The country’s vast reserves of natural gas and lithium, once seen as the foundation for a prosperous future, have yet to deliver widespread benefits. As Paz himself asked, “What did they do with all that prosperity?” The answer, he suggests, lies in a combination of corruption, mismanagement, and failed ideology—a legacy he is determined to reverse.
With the promise of renewed cooperation, the appointment of ambassadors on the horizon, and a clear mandate for reform, Bolivia stands at a crossroads. The coming months will test Paz’s ability to deliver on his pledges and steer the nation away from the economic and diplomatic isolation of the past. For now, though, Bolivians and their new president can look forward to a fresh start, one rooted in engagement with the world and a commitment to rebuilding what was lost.