International Trade
Venezuela again
reopens Colombian border to allow shoppers to cross
Venezuela has opened its border with Colombia
for the second time this month to allow people to cross over to shop for basic
foods and medicines. Last week 35,000
crossed over for the first time since the border was closed a year ago by
President Nicolas Maduro to fight cross-border crime. Officials said at least 100,000 entered
Colombia over the weekend. The border across a pedestrian bridge connecting Táchira
in Venezuela and Cucuta in Colombia opened on Saturday, a day earlier than
authorities from both countries had previously announced. Officials said they
wanted to avoid the build-up of too many people. It stayed open into Sunday.
(BBC News: http://www.bbc.com/news/world-latin-america-36818030;
Bloomberg, http://www.bloomberg.com/news/articles/2016-07-18/venezuelans-tearful-amid-colombia-s-full-shelves-and-polite-cops;
Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2416673&CategoryId=10718; http://www.laht.com/article.asp?ArticleId=2416678&CategoryId=10717;
El Universal, http://www.eluniversal.com/noticias/daily-news/colombians-welcome-80000-venezuelans-cucuta-search-food-medicine_355797)
Colombian FM announces
temporary border openings will be halted, permanent aperture sought
Colombia´s Foreign Affairs Minister María Angela
Holguín visited the city of Cucuta, bordering on Venezuela, to review a roadmap
in preparation for the reopening of the Venezuela-Colombia border, closed last
August 19, official sources reported. Holguín has met with the governors of the
Colombian departments of Norte de Santander, the capital city of which is Cucuta,
and Arauca, the sites of the three border passages temporarily opened last
weekend that gave access to Colombia of almost 130,000 Venezuelans who bought
food, staples and medicines in short supply in Venezuela. She also met with
Táchira state governor, Lieutenant José Vielma Mora, and announced it has been
decided to not continue with temporary border opening. “The next aperture will be for good. Next weekend there will be no
transit as was the case during the last two weeks, we will rather work now to
have a border we are quickly able to open…a secure border that gives us peace,
where we really control the law and the number of incidents provoked by gangs
and criminal organizations that operate along these borders”. Governor Vielma
said the reason for discontinuing border openings is to “not delay negotiations for a permanent border opening with the
neighboring country”. (El Universal, http://www.eluniversal.com/noticias/daily-news/colombian-visits-venezuela-colombia-border-assess-potential-reopening_355880; and more in Spanish: El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/holguin--este-fin-de-semana-no-habra-apertura-de-l.aspx#ixzz4EqlDwrfp; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/economia/frontera-colombia-no-estara-abierta-este-fin-semana/)
Oil & Energy
PDVSA seeks to securitize oil services debts
Eulogio
Del Pino, President of state oil company PDVSA, has announced that the company is
in talks with oil services companies to turn unpaid bills into financial
instruments, a process known as securitization. Several oil services companies
suspended or slowed operations this year due to difficulties in obtaining
payment from PDVSA, which is struggling because of low oil prices and a
decaying socialist economy. Del Pino last month said PDVSA signed financing
agreements with WEATHERFORD International and HALLIBURTON and was close to a
deal that would allow SCHLUMBERGER to boost its presence in here. (Reuters, http://www.reuters.com/article/venezuela-pdvsa-idUSL1N1A300E; El Universal, http://www.eluniversal.com/noticias/daily-news/pdvsa-deals-with-payment-providers-with-financial-instruments_355814)
Venezuela oil price falls below US$ 38
The
price Venezuela receives for its mix of medium and heavy oil fell continued
falling below US$ 40 as U.S. stocks continued to build, depressing
prices. According to figures released by the Ministry of Petroleum and
Mining, the average price of Venezuelan crude sold by Petroleos de Venezuela
S.A. (PDVSA) during the week ending July 15 was US$ 37.85, down US$ 1.75 cents
from the previous week's US$ 39.60. According
to Venezuelan government figures, the average price in 2016 for Venezuela's mix
of heavy and medium crude is now US$ 31.70 for the year to date. Venezuela's
average oil price for 2015 was US$ 44.65, down from 2014's US$ 88.42, below
2013's US$ 98.08, 2012's US$ 103.42 and 2011's US$ 101.06, 2010's US$ 72.43,
and even 2009’s average price of US$ 57.01. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2416646&CategoryId=10717)
Del Pino claims oil output is on the rise at Orinoco
Oil Belt
Eulogio
Del Pino, Minister of Petroleum and Mining and head of state-run oil company PDVSA
says the Orinoco Oil Belt continues working and producing for the country. He
added that the industry has now a great number of PDVSA-owned equipment that
includes 120 drills purchased in 2008-2009 and service lines for prospecting. (El Universal, http://www.eluniversal.com/noticias/daily-news/del-pino-oil-output-the-rise-orinoco-oil-belt_355789)
Cuba admits troubles from shorter supply of Venezuelan
oil
Cuban
President Raúl Castro admitted that the domestic economy undergoes “adverse circumstances” due, among
others, to Venezuela’s standstill and “contraction”
in supply of Venezuelan oil. However, he ruled out a “collapse” or return to the Special Period. At the end of the
plenary session of the Cuban National Assembly, Castro confirmed that the
domestic economy has grown only 1% so far this year, half than expected. Such
outcome is due to declining revenues from exports of goods, such as nickel and
oil, and the plunge of their world prices, in addition to the effects on Cuba
of the crisis in Venezuela, the main partner of the island. According to
Castro, Venezuela is subject to “an
economic war to weaken people support to its revolution.” (El Universal, http://www.eluniversal.com/noticias/daily-news/cuba-admits-troubles-from-shorter-supply-venezuelan-oil_346568)
Commodities
No fuel for fishermen that sell their catch abroad
Admiral
Ernesto Herrera Balsa, the newly appointed commander of Venezuela’s insular
authority, says he has issued an order blocking the sale of subsidized fuel to
those fishermen who sell their catch at sea, saying “the fish … must be delivered to the people, not sold in the Antilles,
if the government subsidizes fuel …it is to benefit the people.” The price
of fish is controlled by the government. More in Spanish: (El Universal, http://www.eluniversal.com/noticias/venezuela/suspenderan-cupo-gasolina-pescadores-que-vendan-fuera-del-pais_355865)
Economy & Finance
CONINDUSTRIA says government is bankrupting remaining
enterprises here
Juan
Pablo Olalquiaga, President of the National Industry Confederation
(CONINDUSTRIA) says the government is fully aware of the reasons why companies
have been losing the ability to operate. “The
government and all of its agencies inspect plants regularly and are aware of
their operating déficit….the economic problem is not due to lack of
information, it is due to lack of understanding on how the economy works”. He added “raw
material has not arrived, qualified Venezuelans continue to migrate, industrial
installations continue deteriorating and factories keep on closing. We will
never rebuild industry this way.” He pointed out that debts to foreign
suppliers are around US$ 12 billion. Olalquiaga said CONINDUSTRIA’s proposals
have been disregarded. The institution has “proposed
legalizing the black market, repaying debt, removing price controls and
returning companies to the private sector”. More in Spanish: (Noticiero
Venevision: http://www.noticierovenevision.net/economia/2016/julio/18/162956=conindustria-asegura-que-el-gobierno-esta-quebrando-las-empresas-que-quedan-en-el-pais;
Notitarde; http://www.notitarde.com/Olalquiaga-Ejecutivo-no-rectifica-el-rumbo-economico/Economia/2016/07/18/1011860/;
El Universal, http://www.eluniversal.com/noticias/economia/conindustria-gobierno-esta-quebrando-las-empresas-que-quedan-pais_355746)
National Assembly votes down decree extending “economic emergency” powers
The
opposition majority within the National Assembly voted down a decree by
President Nicolas Maduro extending emergency powers for 60 more days and terms
it “unconstitutional”. The
legislature also said conditions have worsened sharply since the first decree
was imposed by the Supreme Court. Hector Rodríguez, leader of the pro-regime
caucus, called on Venezuelans to work together to overcome the economic crisis
and claimed the government’s social achievements. President Nicolas Maduro had
previously published the decree extending emergency powers for the fourth time
since January 14th. Emergency
powers empower Maduro to allocate funds with no legislative controls, dispose
of private goods and services, and impose currency restrictions. The government
controlled Supreme Court here has upheld the decree. More in Spanish:
(Infolatam: http://www.infolatam.com/2016/07/14/gobierno-venezolano-extiende-por-60-dias-mas-decreto-de-emergencia-economica/;
Noticiero Venevision: http://www.noticierovenevision.net/politica/2016/julio/14/162626=an-rechaza-extension-del-decreto-de-emergencia-economica; Ultimas
Noticias, http://www.ultimasnoticias.com.ve/noticias/politica/an-debate-sesion-especial-prorroga-del-decreto-estado-excepcion/)
Venezuelan military had big role in economic woes
President Nicolas Maduro’s announcement
this week that the military will lead the battle against widespread food
shortages overlooks one key fact: The armed forces have played a big role in
Venezuela’s economic mess. Since Maduro
took office in 2013, he has named a number of active and retired generals to
run the economy. All five of his food ministers who manage one of the
government’s largest budgets have come from the armed forces. And they in turn
have placed dozens of their military cohorts to lead everything from a
state-run chain of supermarkets to an agency overseeing food imports. But
leaning on the military is unlikely to yield the economic miracle Venezuela
desperately needs — at least judging by its record so far. In addition to the
military’s inexperience in economic matters, there are also concerns that it is
profiting from the mounting problems. Troops have been seen taking goods for
themselves or demanding bribes at military checkpoints that have proliferated
across the country in the past year. One of Maduro’s former food ministers is
wanted on charges of profiting from overseas purchases. Two others, including
current head Gen. Rodolfo Marco Torres, are being investigated by the
opposition-controlled National Assembly for allegedly inflating contracts and
embezzlement. In April, lawmakers demanded Torres’ removal for failing to
appear before the legislature. Some fear
the military’s enhanced role will only stain the institution. “They’ve given the military total power to
fix a problem they helped create and for which there’s no solution,” said
Fernando Ochoa Antich, a retired general and former defense minister in the
pre-Chavez era. “The only result is
they’ll now share responsibility for the failure.” (The Washington Post: https://www.washingtonpost.com/world/the_americas/analysis-venezuelan-military-had-big-role-in-economic-woes/)
Politics and International Affairs
Venezuela nears constitutional crisis as opposition nullifies
Supreme Court appointments
Venezuela
is heading toward a constitutional crisis to add to its economic collapse after
the opposition-controlled National Assembly challenged the power of the Supreme
Court that backs President Nicolas Maduro. The National Assembly last week
voted to nullify the appointment of 13 of 32 Supreme Court judges, stripping
them of their powers and said any decisions these justices take part in will be
null and void. A report by a Special Committee indicated the process for
appointing these justices by the outgoing legislature after the December 6th
elections had been fraudulent and corrupted and that several of those
identified do not have the qualifications required for such offices. Congress
now is studying the appointment of new judges, according to congressional
President Henry Ramos Allup. The Supreme Court’s Constitutional Chamber, which includes some of the
cancelled justices, reacted by declaring that the National Assembly’s Special
Committee is “illegitimate and
constitutionally non-existent”. (Bloomberg, http://www.bloomberg.com/news/articles/2016-07-18/venezuela-nears-constitutional-crisis-as-opposition-changes-tack;
and more in Spanish: Noticiero Venevision: http://www.noticierovenevision.net/politica/2016/julio/14/162676=parlamento-nacional-dejo-sin-efecto-designacion-de-13-magistrados-principales-del-tsj-por-irregularidades-en-el-proceso; El Mundo, http://www.elmundo.com.ve/noticias/actualidad/politica/tsj-anulo-comision-de-la-an-que-reviso-designacion.aspx#ixzz4EqmO3Yaw)
EU backs former presidents' efforts in Venezuela, calls
for "urgent dialogue"
Foreign
ministers of the European Union have “fully”
supported efforts by former Presidents José Luis Rodríguez Zapatero (Spain),
Leonel Fernández (Dominican Republic) and Martín Torrijos (Panama) “to facilitate an urgent, constructive and
effective dialogue” between the government and the parliamentary majority
in Venezuela. “These efforts provide a
crucial opportunity to create enabling conditions and a framework for peaceful
and shared solutions to the country's multidimensional challenges,” the
ministers highlighted in the EU Council conclusions on Venezuela. They urged
all institutions and political players “to
engage in this process in full respect of the democratic and constitutional
framework, including those of jailed opponents who cannot exercise their rights.”
They refrained from appointing Zapatero as the European Union’s mediator, urged
the group’s High Commissioner for Foreign Affairs, Federica Mogherini, to keep
in touch with him, and called for other ways for the European Union to further
talks and help overcome the most urgent needs. Mogherini, who will consider
naming Zapatero as special envoy for Venezuela, says the matter has not been
discussed politically or institutionally. Spain’s former President Felipe
González wrote that Venezuela is undergoing a “triple crisis” that must be urgently tended to. “It is an institutional, socioeconomic and
citizen safety crisis. The first thing the sides must agree upon are the items
for the agenda as well as who will do the mediating”. Venezuela’s
opposition has demanded that the mediating group be expanded by including the
Vatican, the OAS and other former presidents. (El Universal, http://www.eluniversal.com/noticias/daily-news/backs-ex-presidents-efforts-venezuela-requests-urgent-dialogue_355878;
and more in Spanish: El Nacional: http://www.el-nacional.com/politica/Rodriguez-Zapatero-confirmado-mediador-UE_0_886711631.html)
Capriles says Zapatero has mistaken view of the crisis
in Venezuela
Opposition
leader and former Presidential candidate Henrique Capriles says Spain’s former
President José Luis Rodríguez Zapatero has a mistaken view of the economic
crisis here. Capriles says “When they say
Venezuela’s economic crisis is due to a lack of dialogue…there is a clear
failure in understanding what we Venezuelans are going through.” He invited
the Spanish politician to go see people going hungry or visit a hospital. The
opposition leader indicated that Zapatero is not in Venezuela “to seek a solution” for the people, but
instead wants to solve “the crisis the
government is facing”. More in Spanish: (Infolatam: http://www.infolatam.com/2016/07/14/capriles-dice-que-zapatero-falla-en-su-diagnostico-sobre-crisis-venezolana/)
Cabello says “there
will be no talks” with the opposition and that there will be no recall vote
this year
Former
lieutenant Diosdado Cabello, Vice President of the ruling PSUV party, says there
“will be no talks” with the
opposition because it has made it a precondition that there must be set a
timetable for a recall referendum, and there will be no recall referendum “this year…we guarantee it” and “at the rate we are going” there will be
no vote “next year” either. He said
the “chavistas” will negotiate “nothing” with the opposition and will not allow
them to “set conditions”. More in Spanish: (Infolatam: http://www.infolatam.com/2016/07/14/cabello-dice-no-habra-dialogo-con-oposicion-porque-no-va-a-haber-referendum/; Noticiero Venevision: http://www.noticierovenevision.net/politica/2016/julio/16/162826=cabello-advierte-al-)
Borges says no date has been set for talks with the
government
Julio
Borges, head of the National Assembly’s opposition majority caucus, says no date
has been targetted for talks between the Maduro regime and the Democratic Unity
opposition coalition (MUD). “I don’t know
who they are talking to, but it is not with the MUD”, he said. He added
that the government’s call for talks “is
a way to wash their faces internationally”, and that any talks must lead to
a recall referendum. More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/politica/borges-nego-haya-fecha-dialogo/)
MERCOSUR to debate transferring pro tem chair to
Venezuela next week
Uruguay
has called a meeting of MERCOSUR foreign ministers next July 30th,
to discuss transferring the pro tem chair of the organization to Venezuela for
the next semester. The group will try to
solve the crisis that emerged after Paraguay, Brazil and Argentina expressed
reservations over Venezuela’s “credentials”
due to undemocratic practices and human rights violations under the Maduro regime.
More in Spanish: (Infolatam: http://www.infolatam.com/2016/07/17/uruguay-convoca-al-consejo-del-mercosur-para-tratar-el-traspaso-de-mando/;
Agencia Venezolana de Noticias; http://www.avn.info.ve/contenido/cancilleres-del-mercosur-discutir%C3%A1n-traspaso-presidencia-pro-t%C3%A9mpore-pr%C3%B3ximo-30-julio;
El Mundo, http://www.elmundo.com.ve/noticias/actualidad/politica/mercosur-discutira-traspaso-de-presidencia-pro-tem.aspx;
Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/politica/venezuela-presidencia-mercosur-reglamento/;
Noticiero Venevision: http://www.noticierovenevision.net/politica/2016/julio/17/162855=canciller-rodriguez--aseguro-que-la-oposicion-mantiene-vinculos-con-lideres-de-la-union-europea-)
UN concerned at the lack of information on state of
emergency in Venezuela
The
United Nations Deputy High Commissioner for Human Rights, Kate Gilmore, said
the body has expressed concern to President Nicolas Maduro over the lack of
information on the state of emergency recently decreed in Venezuela. Her
remarks came in a response to a communication addressed to the UN last May 23
by the board of the National Assembly, signed by Speaker Henry Ramos, and
vice-presidents Enrique Márquez and Simón Calzadilla. (El Universal, http://www.eluniversal.com/noticias/daily-news/concerned-the-lack-information-states-emergency-venezuela_355909)
CONATEL is asked to shut down Colombian ELN guerrilla
radio stations here
Javier
Tarazona, President of the Tachira state Teacher’s Union, has demanded that the
National Telecommunications Commission (CONATEL) close down radio stations run
by Colombia’s ELN guerrilla in Venezuelan territory because they transmit
illegal content and indoctrinate children and young people, mainly in Zulia,
Apure, Tachira and Apure states. Tarazona demands the closure of radio stations
95.5 FM Voz de la Libertad, Antorcha Estéreo 96.7 FM and 96.6 FM, owned by
Colombia’s ELN guerrilla, designated as a terrorist organization by the United
Nations. “CONATEL has shut down 120 radio
stations nationwide…but cynically does not monitor these stations”, he
said, charging Venezuelan institutions with “complicit silence” on this matter. More in Spanish: (CARACOL: http://caracol.com.co/radio/2016/07/18/internacional/1468877431_907135.html)
Anibal Chavez, brother of late Venezuelan President
Hugo Chavez, dies at 60
Anibal
Chavez, brother of late Venezuelan President Hugo Chavez, died on Sunday in
Caracas from a stomach ailment, media reports said. He was 60. Chavez was the
mayor of Sabaneta, a city in western Venezuela. (Latin American Herald Tribune,
http://www.laht.com/article.asp?ArticleId=2416663&CategoryId=10717)
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.
