Bolivia and the United States will restore full diplomatic relations at the ambassadorial level after a 17-year break, Bolivian President Rodrigo Paz Pereira and U.S. Deputy Secretary of State Christopher Landau announced Saturday.

"It has been very unusual not to have ambassadors in our capitals," Landau said at the presidential palace following Paz's inauguration. "This is an important step, and we hope to announce ambassadors very soon."

Paz described the decision as part of a pragmatic shift in Bolivia's foreign policy. "We will reestablish relations with the U.S. government and people under a vision of cooperation and mutual respect," he said.

Both governments said technical talks are underway to expand cooperation in areas such as education, public security, economic development, trade and investment. Although no date has been set for the nomination of ambassadors, both sides said the restoration of full representation will mark a political reset between La Paz and Washington.

Bilateral ties were downgraded in 2008 when then-President Evo Morales expelled the U.S. ambassador, prompting Washington to expel Bolivia's envoy in response. Since then, relations have been managed at the level of charges d'affaires amid recurring tensions.