International Trade
Japanese Chamber President says companies to spur
projects in Venezuela
According to Erwin Miyasaka, the President of the
Venezuelan - Japanese Chamber (CAVEJA), Japanese companies are contemplating to
resume commercial projects in Venezuela in 2016, particularly in the areas of
energy, petrochemicals, the automotive industry and technology. "We hope
to take in many off track activities in the Energy Cooperation Committee set up
by both nations," he says. "Biannual
meetings provide a forum for sharing common interests and open up a whole world
of opportunities." In Miyasaka's opinion, Venezuela is one of the few
attractive countries to invest in the region. "Even with prices of US$ 40 a barrel the business of hydrocarbons and
derived products is profitable on the basis of domestic costs," he
says. "With the current Organic Law
of Hydrocarbons, according to experts in the field, there would be no need to
change." (El
Universal, http://www.eluniversal.com/economia/151226/japan-to-further-projects-in-venezuela)
Economy
& Finance
Guerra says economy could further deteriorate
in 2016
Economist José
Guerra, recently elected as an opposition legislator to the National Assembly,
says the nation is undergoing an economic tragedy due to a severe contraction
along with inflation that is destroying wages. He says GDP shrank 11%,
inflation rose 200% and food prices increased 250% as scarcity of regulated
food reached 80%. “All of this lead to a
40% drop in wages and pensions, only a nation devastated by war has such
statistics. The Central Bank’s monetary policy played a large role in price
trends, by financing the deficit by printing money.” More in Spanish: (El Nacional, http://www.el-nacional.com/politica/Jose-Guerra-situacion-deteriorarse-todavia_0_764323604.html)
2015 was the worst economic crisis in 100 years
According the
ECOANALITICA think tank, 2015 has seen the worst economic crisis in a century,
due to scarcities and lower buying power, which have diminished the quality of
life for middle and lower class Venezuelans as a result of FOREX cuts for
private imports and individuals which hurt food subsidies as well as
remittances, Internet operations, travelers and students. FOREX allocations to these
activities dropped 66% from US$ 137.5 million daily in January-November 2014 to
US$ 46 million daily in the same time frame during 2015. More in Spanish: (El
Nacional, http://www.el-nacional.com/economia/subsidios-dolares-clase-media-baja_0_764923645.html)
Majority in the National Assembly will call for
economic reform
Re-elected
legislator Julio Borges says the role of the majority in Parliament is to
demand that the government take steps on the economy to meet the needs of
Venezuelans. He said “the regime must
decide if it will be a part of those changes the nation is demanding, or if it
continues paralysis”. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/politica/mayoria-parlamentaria-exigira-medidas-en-materia-e.aspx#ixzz3vhicl9b7)
PSUV economists say 6.30 FOREX dollar rate must
disappear
Economists within the
pro-government United Socialist Party (PSUV) met recently to seek proposals for
the government on economic policy. One of their suggestions was to modify
exchange policy, and legislator Jesus Faría spoke of an option to reach a
single exchange rate by doing away with the 6.30 rate. Other economists called
this rate “unsustainable”. More in
Spanish: (Ultimas
Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/economistas-proponen-desaparicion-del-dolar-a-6-30.aspx#ixzz3vbucc6b6)
International reserves rose US$ 1.830 billion
According to Central Bank data published
December 23rd, Venezuela’s total FOREX reserves rose US$ 1,830 billion to US$
16.518 billion, up to October levels. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/energia/reservas-internacionales-aumentaron--1-830-millone.aspx#ixzz3vhhI1ZiU; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/reservas-internacionales-aumentaron-1-830-millones.aspx)
Politics and
International Affairs
Opposition will call
for “change in government” if
National Assembly work is blocked
Re-elected legislator Julio Borges, coordinator
of the PRIMERO JUSTICIA party, supported statements by Henry Ramos Allup,
Secretary General of ACCIÓN DEMOCRÁTICA, also re-elected to the National
Assembly, on “changing the government”
in six months, and specified that seeking the constitutional means for it will
depend on whether the government “sabotages
the changes for which millions of Venezuelan’s voted for”. Ramos has
written that the coalition will “honor”
all proposals made during the campaign among them “the commitment to seek within the six months following the inauguration
of the new National Assembly a constitutional, democratic, peaceful and
electoral way to change the government”. He added that the coalition
proposals were “signed and ratified by
all of those who are part of democratic unity, and they are still in force and
unscathed and we will honor them”, and said no matter will be prioritized
because they are all “dramatically urgent”.
Earle Herrera, a re-elected pro-government legislator, says his side is
prepared in case the opposition wants to invoke constitutional means against
the President, such as a referendum to revoke his mandate: “The Constitution…has answers for each of the
constitutional options the opposition calls for”, he says. Ramos and Borges
are currently the leading contenders to preside the incoming National Assembly.
More in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/151228/mud-apelara-a-propuesta-de-cambio-de-gobierno-si-se-impide-labor-de-la)
Opposition seeks to elect new National Assembly
president by consensus
The leaders of
parties within the Democratic Unity Conference (MUD) that have elected
legislators are meeting to discuss a proposal by PRIMERO JUSTICIA to seek a
consensus on rules to guide the work of the full opposition caucus, including
choosing Assembly authorities and committees. If no consensus is reached, it
seems probable the new authorities, including the President, will be elected
through a vote on January 3rd. After the New Assembly takes office
on January 5th, the coalition will announce its agenda. In a
statement published on the Internet, the group again called for “freeing political prisoners, the return of
exiles and the end of persecution against thousands of students and young
people”. The statement emphasizes that “what
is at stake is the viability of the nation itself, beyond the stability of a
government”. (El Nacional, http://www.el-nacional.com/politica/MUD-agotar-consenso-presidente-AN_0_764923643.html; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/mud-anunciara-este-martes-su-agenda-para-el-5-e.aspx#ixzz3vhkQOcWU)
Audits discard fraud claims in December 6th
elections
Two audits carried
out after the December 6th elections show the system performed
correctly with few election infractions, which throws out fraud arguments
alleged by authorities. More in Spanish: (El Nacional, http://www.el-nacional.com/politica/Auditorias-posteriores-tierra-argumentos-fraude_0_764923586.html)
Supreme Tribunal endorses outgoing National
Assembly decisions
The Constitutional
Chamber within the nation’s Supreme Justice Tribunal has decided that all
decisions taken by the outgoing National Assembly during the special sessions
called by outgoing Assembly President Captain Diosdado Cabello, are legal and
there is no limitation on the matters they can decide. In this way they intend
to reinforce the appointment of 13 new Tribunal justices despite charges that
their designation is unconstitutional. More in Spanish: (El Nacional, http://www.el-nacional.com/politica/TSJ-avala-decisiones-Asamblea-saliente_0_761324048.html)
Designation of Supreme Tribunal justices
published
On December 23rd, the
official Gazette published the designation of 13 Supreme Tribunal justices made
by a simple majority of the outgoing National Assembly during a special
session. The new members of the powerful Constitutional Chamber are Calixto
Ortega, Luis Damiani-Bustillos, and Lourdes Suárez-Anderson. More in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/151229/en-gaceta-la-designacion-de-magistrados-del-tsj; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/lista---en-gaceta-designacion-de-magistrados-del-t.aspx)
Venezuelans in U.S.
linked to US$ 1 billion in PDVSA bribes
The U.S. accused two men of taking part in a US$
1 billion bribery scheme to secure contracts with Venezuela’s state oil company
and linked one of the duo to a former head of Venezuelan military intelligence
wanted for alleged cocaine trafficking. Roberto Rincon-Fernandez, a Venezuelan
national, was ordered held without bail on charges of conspiring to launder
money and violating the Foreign Corrupt Practices Act in connection with
Petroleos de Venezuela SA, according to an order signed Dec. 19 by U.S.
Magistrate Judge Nancy K. Johnson citing an indictment. Abraham Jose Shiera-Bastidas, a Venezuelan
living in Florida, was jailed in Miami on the same charges. The bribes included
monetary gifts, travel, hotel reservations, meals, liquor, car rental, a yacht,
a US$ 14,000 stay at the Fontainebleau Hotel on Miami Beach, and other gifts to
obtain “business on behalf of Rincon’s
and Shiera’s companies,” according to the joint indictment filed in Miami. In
her order to keep Rincon behind bars, Johnson said he “has significant assets which could fund a fugitive life-style” and
there’s a “serious risk” he could
flee. Rincon, with homes in Aruba and Spain, has a “close personal friendship” with retired Venezuelan General Hugo
Carvajal, who was arrested in Aruba on Rincon’s private aircraft and later
released, according to the order. Carvajal – recently elected to the National
Assembly on the government party ticket - is wanted in the U.S. for drug
trafficking and Aruba has declined to extradite him, according to Johnson’s
order. The case is U.S. v. Rincon-Fernandez, 15-cr-654, U.S. District Court,
Southern District of Texas (Houston). (Bloomberg, http://www.bloomberg.com/news/articles/2015-12-22/venezuelan-in-houston-linked-to-1-billion-in-pdvsa-bribes)
Venezuela reached
homicides record in 2015
According to the Venezuela Violence Observatory
(OVV) non-government organization, violent deaths in this nation were up to
27,875 this year, a 12% increase over last year – up to 90 for every 100,000
inhabitants, which makes Venezuela one of the most violent nations in the
Hemisphere. At mid-year the government was admitting to only 66 homicides per
100,000 inhabitants. More in Spanish: (Infolatam,
http://www.infolatam.com/2015/12/28/las-muertes-violentas-aumentan-en-venezuela-durante-2015/)
Venezuela ceases
mediator role in talks with Colombia’s ELN
Venezuela has allegedly abandoned its role as a
mediator in the rapprochement efforts that have been under way for two years
between the Colombian government and the guerrilla National Liberation Army
(ELN) intended to start a peace process similar to that taking place since 2012
in Cuba with the Revolutionary Armed Forces of Colombia (FARC). The digital
edition of Colombian newspaper El Tiempo reported that "according to sources close to the
rapprochement," the government of Venezuelan President Nicolás Maduro
has "decided to freeze its mediation".
(El Universal, http://www.eluniversal.com/nacional-y-politica/151228/venezuela-ceases-mediator-role-in-talks-with-the-eln)
Two hurt when Venezuelan
police chopper crashes in Colombia
Both occupants were injured when a helicopter
of Venezuela’s national police crashed just across the border in the northern
Colombian province of La Guajira, Colombia’s defense minister said. The
aircraft crashed onto a parking lot in the village of Paraguachon in the
Colombian municipality of Maicao, but did not catch fire, Luis Carlos Villegas
said.
According to the minister, the two crew members flying the Bell helicopter were injured and were taken to medical centers in Venezuela. “Our presence at the site was a humanitarian effort to see if the crew members were being well looked after, and through diplomatic channels we will proceed to establish with the Venezuelan government what should be done with the helicopter wreckage that is left on this side of the border,” the minister told reporters. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2402558&CategoryId=10717)
According to the minister, the two crew members flying the Bell helicopter were injured and were taken to medical centers in Venezuela. “Our presence at the site was a humanitarian effort to see if the crew members were being well looked after, and through diplomatic channels we will proceed to establish with the Venezuelan government what should be done with the helicopter wreckage that is left on this side of the border,” the minister told reporters. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2402558&CategoryId=10717)
Samper: Changes of
course in Argentina, Venezuela are normal in democracy
Ernesto Samper, Secretary General of the Union
of South American Nations (UNASUR), says political changes in Argentina and
Venezuela are a "normal change in
direction" within a democratic system, and he refused claims that the
region is in the middle of ideological confrontation. "There is no need for drama over these
changes," he added. (El
Universal, http://www.eluniversal.com/nacional-y-politica/151228/samper-changes-of-course-in-argentina-venezuela-are-normal-in-democrac)
Fourth CELAC Summit to
be held in Quito on January 27, 2016
The Fourth Summit of the Community of Latin
American and Caribbean States (CELAC) will be held on January 27 next year in
Quito, Ecuador. Cuban Vice-Foreign Minister Abelardo Moreno said that the 33
countries comprising the CELAC would seek to establish new ways to reduce
inequality in the region. "There are
great expectations. CELAC is our mechanism for political agreement, which has
consolidated upon the summits held so far," Moreno said. (El
Universal, http://www.eluniversal.com/nacional-y-politica/151228/fourth-celac-summit-to-be-held-in-quito-on-january-27-2016)
The following brief is a synthesis of the news
as reported by a variety of media sources. As such, the views and opinions
expressed do not necessarily reflect those of Duarte Vivas & Asociados and
The Selinger Group.
