International Trade
Imports arrived at Puerto Cabello
- 25,999 tons of yellow corn from
Louisiana, for PROAGRO C.A.
- 24,999 tons of soybean meal from Louisiana, for Agrolucha C.A., Grupo Souto, Granja Alconca and Avícola La Guásima
- 23,530 tons of wheat from
Canadá for Molinos Nacionales C.A. (MONACA)
- 16,217 tons of assorted foodstuffs,
including margarine, beef, chicken, powdered milk powder and cream for
CASA.
- Over 12,000 tons of food in 380
containers from Brazil for CASA
- 9,000 ton of degummed crude
soybean oil from Argentina for CARGILL de Venezuela and PROVENCESA C.A.
- 4,100 of heads of cattle from
Brazil
- 2,272 tons of whole milk and
margarine from Brazil for CASA.
2,013 heads of cattle from Brazil arrived into
the port of Guanta, in Anzoátegui state. (Notitarde; http://www.notitarde.com/La-Costa/Mas-de-12-mil-toneladas-de-alimentos-llegaron-al-puerto-2194212/2014/07/10/338268;
Notitarde; http://www.notitarde.com/La-Costa/Llegaron-mas-de-16-mil-toneladas-de-alimentos-2193561/2014/07/08/337059; Agencia
Venezolana de Noticias; http://www.avn.info.ve/contenido/m%C3%A1s-2000-cabezas-ganado-provenientes-brasil-llegaron-venezuela;
Bolipuertos, http://www.bolipuertos.gob.ve/noticia.aspx?id=8065)
Two opposition legislators denounce major
corruption in rice imports from Argentina
Two COPEI party opposition legislators,
Abelardo Díaz and Homero Ruiz, have asked the Prosecutor General to start a
criminal investigation of former Food Minister General Félix Osorio who
negotiated a food cooperation agreement between Argentina and Venezuela. Díaz
says "a major fraud has been
committed against our nation for over U$D 15.5 billion in up to 30% overcharges
on imports of more than 37,000 tons of paddy rice, and an estimated 80%
overcharges on 41,000 tons of rice imported from Argentina”. He says these
commodities were exported by a company named BIOARTS, which is reported to have
a monopoly on paddy rice and corn exports to Venezuela and has "no previous activity in cereals, and much
less in exports”. Rice growers in Argentina made the original charge in
local media there. More
in Spanish: (Notitarde, http://www.notitarde.com/Pais/Diputados-denunciaron-ante-el-MP-megaguiso-en-importacion-de-arroz-2194078/2014/07/10/338273; El Mundo, http://www.elmundo.com.ve/noticias/economia/parlamento/denuncian-presunta-estafa-en-importacion-de-arroz-.aspx; http://www.elmundo.com.ve/noticias/economia/politicas-publicas/empresa-argentina--sin-capacidad--exporto-cereales.aspx#ixzz379dtGNFb;
El Nacional; http://www.el-nacional.com/;
El Nacional, http://www.el-nacional.com/politica/Involucran-hija-Chavez-estafa_0_442755883.html)
Logistics & Transport
Minister claims Venezuela
owes airlines nothing
General Luis Graterol, Minister for Water and
Air Transport says international airfares should be set at the exchange rate of
the first Ancillary Foreign Currency Administration System (SICAD 1) of VEB
10.8/U$D. "There should be no
further distortion" in this area, he says. "The exchange baseline is Sicad and we invite people to learn about the
value of their tickets." Graterol
reports 21 out of 24 international and domestic airlines operating in Venezuela
have delivered their rate brackets to the government. (El Universal, http://www.eluniversal.com/economia/140710/venezuelan-govt-claims-to-owe-nothing-to-airlines;
and more in Spanish: Agencia Venezolana de Noticias; http://www.avn.info.ve/contenido/18-aerol%C3%ADneas-entregaron-tarifas-boletos-para-c%C3%A1lculo-precios-justos)
AA, Venezuelan government
discuss payment schemes
American Airlines Group says it will keep on
working with Venezuelan authorities on dates and applicable exchange rate for
the repatriation of funds owed by Venezuela for ticket sales. (El
Universal, http://www.eluniversal.com/economia/140709/aa-venezuelan-govt-discuss-payment-schemes)
Air France-KLM cuts profit
target on overcapacity, cargo, fallout from a dispute with Venezuela
Air France-KLM Group
(AF), Europe’s largest airline, cut its
full-year earnings forecast amid overcapacity on North American and Asian
routes, poor demand for freight and the fallout from a dispute with Venezuela. Earnings before interest,
tax, depreciation and amortization will be 2.2 billion Euros (U$D 3 billion) to
2.3 billion Euros this year, compared with a previous target of as much as 2.5 billion euros, Air France
said in a statement. In 2013 the airline group reported Ebitda of 1.86 billion Euros.
(Bloomberg, http://www.bloomberg.com/news/2014-07-08/ir-france-klm-cuts-profit-target-on-overcapacity-cargo.html)
Venezuela's airport
'breathing' tax
The biggest international airport in Venezuela
is charging a fee for the right to inhale clean air. At Maiquetia International
Airport in Caracas has passengers flying out now have to pay 127 bolivars tax
for the air they breathe to cover the cost of a newly-installed system which
uses ozone to purify the building's air conditioning system. But with outgoing tickets
already expensive and scarce because of Venezuela's economic crisis, many on
social media have responded to the tax with both humor and outrage. Radio
presenter Daniel Martínez tweeted: "Could
you explain to me the ozone thing in Maiquetia? The toilets don't have water,
the air-con is broken, there are stray dogs inside the airport, but there's
ozone?" (BBC News; http://www.bbc.com/news/blogs-trending-28227198)
Land Transport Minister says construction of
third bridge over the Orinoco river is 65% completed
Construction of the third bridge over the
Orinoco River, which connects the states of Bolivar and Guarico, located in the
south of the country, is 65% completed, according to Land Transport Minister
Haiman El Troudi. The cable bridge will span 11 kilometers of elevated
structure, with a 90 foot deep excavation in the center of the Orinoco River.
As a result the bridge will have a height of 232 meters, which is equivalent to
a 92-story building, from the bedrock of foundations to the top of the central
towers. The Minister says around U$D 2.8 billion dollars have been invested in
this megastructure, which has generated more than 13,500 direct and indirect
jobs. (AVN, http://www.avn.info.ve/contenido/construction-third-bridge-over-orinoco-river-65-completed)
Oil &
Energy
PDVSA tax obligations calculated
using the exchange rate of VEB 6.30/USD
The Central Bank of Venezuela (BCV) has decided
the exchange rate of VEB 6.30/U$D will
be used to calculate tax duties on state-run oil holding Petróleos de Venezuela
(PDVSA), its partners and service providers. PDVSA will sell oil income at VEB
6.30/U$D, and funds for investment will be offered at the exchange rate of the
second Ancillary Foreign Currency Administration System (SICAD 2), of around
VEB 50/U$D. (El Universal, http://www.eluniversal.com/economia/140710/pdvsa-tax-obligations-at-the-exchange-rate-of-veb-630usd)
Santa Rosa gas complex in Anzoátegui is operating
normally after
completing a depressurization process, says PDVSA. The company explained a
routine operational procedure to include the controlled burning of gas in the
pit was carried out to replace a blocked valve in a pipe. Anaco residents had
reported an explosion and fire in the complex. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=40139&idc=4)
Economy
& Finance
Bloomberg ranks
Venezuela as the worst global country risk among emerging nations
Bloomberg has just published a ranking of “Scariest Places on the Business Frontiers”
in which Venezuela appears as the riskiest place among 43 emerging nations,
after Nigeria, Egypt, Pakistan and Argentina. Bloomberg's global risk indicator
is prepared with the Zurich Insurance Company, based on 35 financial, economic
and political indicators for each country. More in Spanish: (EnOriente; http://www.enoriente.com/canales/yvn/34808-bloomberg-venezuela-con-el-mayor-riesgo-global-entre-los-pa%C3%ADses-emergentes-(infograf%C3%ADa))
Venezuela's consumer confidence is lowest in
Latin America
According to a Nielsen report consumer
confidence in Venezuela is now at 76%, the lowest in Latin America. Market analysts say that although there have
been two minimum wage adjustments here so far this year, buying power has not
recovered due to 60%+ inflation, expected new devaluations and scarcity. More
in Spanish: (El Nacional, http://www.el-nacional.com/economia/Confianza-consumidor-venezolano-America-Latina_0_442755895.html)
Reactionaries within the government hold back
exchange rate unification, propose dual exchange
A group of extreme leftist reactionaries, led
by Executive Vice President (and Chavez son-in law) Jorge Arreaza, is strongly
resisting exchange rate unification as announced by Economic Affairs Vice
President Rafael Ramírez. They instead propose a dual exchange rate under the
control of the National Foreign Trade Center (CENCOEX). Arreaza has the support
of Planning Vice President Ricardo Menéndez, CENCOEX President Alejandro
Fleming, and Foreign Minister Elías Jaua, who argue that devaluation will bring
about great political cost. More in Spanish: (El Nacional; http://www.el-nacional.com/)
Demand for FOREX by
far exceeds supply
Every week the government calls for bidders to take
part in a US dollar auction sale within the Ancillary Foreign Currency
Administration System (SICAD), but demand for FOREX exceeds supply by far. Based
on official figures, demand was for U$D 3.9 billion in eight out of 16
auctions, but only U$D 1.4 billion (36%) were actually sold. The National
Foreign Trade Center (CENCOEX) –the body convening auctions - says companies that
fail to meet all the requirements to take part in the auctions, or those either
suspended or failing to pay taxes properly are dismissed. (El Universal,
http://www.eluniversal.com/economia/140710/venezuelan-foreign-currency-demand-exceeds-supply-by-far)
Auto parts chamber
reports 82% drop in trade
José Cinnirella, Vice President of the Auto
Parts Dealers Chamber (CANIDRA) says the sector has shrunk around 82%, which is
a downturn similar to that of carmakers in Venezuela. (El Universal, http://www.eluniversal.com/economia/140710/auto-parts-chamber-reports-82-drop-in-the-sector;
http://www.eluniversal.com/economia/140710/car-manufacturing-in-venezuela-in-2014-below-2003-level)
Politics
Government calls on
the opposition to resume talks
After a meeting of the national Council of
State Executive Vice-President Jorge Arreaza reaffirmed President Nicolás
Maduro's calls on the different sectors "to settle differences within the framework of the Constitution”.
"We thought the opposition would
come, but it did not," Arreaza said. "We have pondered the possibility of incorporating not only dissenters
from the Unified Democratic Panel (MUD), but all the sectors of the Venezuelan
society," he added. (El Universal, http://www.eluniversal.com/nacional-y-politica/140710/venezuelan-govt-calls-on-the-opposition-to-resume-talks)
Former Presidential candidate Capriles says the
dialogue with the government will continue frozen until those detained for political reasons are
released. Miranda Governor Henrique Capriles reiterated it is the government
that has to answer for the country’s problems and not the opposition. He also
called on all of the opposition to channel public dissatisfaction "more forcefully", and demanded a
new Elections Board to bring about change through "transparent" elections. At the same time, the Andrés Bello
Catholic University (UCAB) has demanded that national authorities release all
the students detained for protesting and stop the ongoing legal persecution.
(Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=40136&idc=1;
and more in Spanish: Infolatam)
El Universal buyer betting
on political change in Venezuela
A representative of the acquiring parties says
the acquisition of Venezuelan newspaper El Universal, which has so far been
critical of the Maduro regime, is a bet that a political shift in the country
will ease restrictions on media companies and opposition groups. “They are convinced that this is going to
happen,” says Jose Luis Basanta when asked if they were expecting political
change in the country. (Bloomberg, http://www.bloomberg.com/news/2014-07-10/el-universal-buyer-betting-on-political-change-in-venezuela-1-.html)
Canada dismisses J.V.
Rangel's claim is a "pure fabrication"
The Canadian government, through its ambassador
to Caracas, Ben Roswell, answered claims by journalist José Vicente Rangel, a
former Chavez Vice President, who has hinted that the Canadian diplomatic
mission took part in destabilization. "The
government of Canada absolutely rebuts the charges (made by Rangel), which are a
pure fabrication" says the diplomat. (El Universal, http://www.eluniversal.com/nacional-y-politica/140709/canada-contends-that-venezuelan-former-officers-claim-is-pure-inventio)
MERCOSUR Summit will be held in Caracas on July 29, according to Paraguay’s
Foreign Affairs Minister. The summit has been postponed three times and was
originally scheduled for December 17, 2013; then postponed for January and
later for February. In the end, it had no scheduled date due to the Venezuelan
political crisis. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=40129&idc=3)
SPECIAL REPORT: Who
rules Venezuela?
The death of a charismatic leader such as Hugo
Chavez, along with the ascent of a less popular official such as Nicolás Maduro
has created a power vacuum in Venezuela, which is currently being covered by a
de facto triumvirate (Maduro-Diosdado Cabello y Rafael Ramírez) that has the
backing of Cuba's Castro regime. Foreign Minister Elías Jaua himself has
admitted that "no one, no Bolivarian
or Chavista, can ignore how serious, how complex it is not to have commandant
Chavez at the head of the Bolivarian revolution". Political analyst
Alfredo Keller says "it is obvious
that Nicolás Maduro has not been able to impose a personal regime, such as
Chavez had. What we have here is a triumvirate in which each member needs the
other. Chavismo has become a bunch of interests in which internal tension
prevails in the absence of the leader that held them together". According to analyst Agustín Blanco Muñoz, “this revolution is dominated by a military
cabal coordinated by Diosdado Cabello and connected to Cuba's G2, which places
civilians led by Maduro at a disadvantage”. Rafael Ramírez and his group of
technocrats were recently strengthened by Maduro, who personally ratified
Ramírez - who controls all funds - as Venezuela's new economic czar and
denounced a "brutal campaign"
aimed at "destroying him".
Ramírez is not expected to do away with exchange controls, but rather establish
a new single rate within a system of brackets, and is reported to be
negotiating the adjustment -including price increases and a reduction in social
programs - with the business community. Economic analyst Rubén Marcano says
what lies ahead is "the mother of
all devaluations". More in Spanish: (Infolatam)
