International Trade
Cargo that has arrived at Puerto Cabello:
- Over 33,000 tons of corn from Alimentos
y Forrajes S.A. for state agency Corporación de Abastecimiento y Servicios
Agrícolas (CASA)
- Around 8,000 tons of foods in
293 containers bearing milk, coffee, beef, cooking oil and beans for CASA
and Café Venezuela state agencies.
- 816 tons of processed corn for
Easy Freight C.A.
- Over 410 tons in 43 containers
bearing electric appliances such as refrigerators and washing machines
from China for Lilly & Associates.
- Over 211 tons in 17 containers
bearing toothpaste and sanitary napkins from Procter & Gamble Mexico
for its Venezuelan affiliate.
- 167 tons of wood planking for
the Socialist Cement Corporation.
- Over 110 tons in 11 vans of
household appliances from Panama for Logística Multimodal (Logimodal).
- Over
81 tons of sodium percarbonate from Evonik Treibacher Persalze for Procter
& Gamble
- Over
36 tons Toyota vehicles from Curiel International Logistics and Lilly
Associates International for subsidiaries in Venezuela.
- Shampoo, conditioner,
mouthwash, disposable diapers, sanitary napkins and detergents for
Procter&Gamble.
- A container with disposable
razors for the Venezuelan Foreign Trade Corporation.
- Several containers bearing
spare parts for Ford Venezuela.
- 8 vans with complete equipment
for processing traditional condensed milk, for Taurel & Company.
Logistics & Transport
Port workers collective bargaining talks
suspended...and workers paralyze terminal at Puerto Cabello
Karina Ordoñez, Secretary General of the Socialist
Workers Union at Puerto Cabello, reports collective bargaining talks were suspended with no new date in sight as
terms were sent to the National Inspector's office in Caracas. Workers at the
terminal spontaneously paralyzed activities for 5 hours as a protest against
the decision. More in Spanish: (Notitarde; http://www.notitarde.com/La-Costa/Suspendida-discusion-de-contrato-colectivo-portuario-2361426/2015/03/03/493014/; http://www.notitarde.com/La-Costa/Terminal-maritimo-de-Puerto-Cabello-paralizado-por-5-horas-2362047/2015/03/04/493257/
AVIANCA is cutting ticket sales in local currency
"to the bare minimum"
Gerardo Grajales, Financial
Director for AVIANCA Holdings, reports they are limiting ticket sales in local
currency in Venezuela since exchange controls do not allow them to repatriate
around US$ 300 million. He says AVIANCA has been cutting seats since last
August and will cut sales in bolivars "to
the bare minimum". More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/avianca-recortara-sus-ventas-de-boletos-en-bolivar.aspx#ixzz3Tb71GrCb; El Nacional, http://www.el-nacional.com/economia/Avianca-Venta-bolivares-funcionarios-gobierno_0_586141479.html)
IBERIA reports that it has 200 million Euros blocked
in Venezuela
IBERIA President Luis Gallego says his company has 200
million Euros is has not been able to repatriate from Venezuela. He says they
intend to continue operations here but are adjusting offers to demand. More in
Spanish: (El Nacional; http://www.el-nacional.com/)
Oil &
Energy
Guyana says Exxon to begin offshore drilling,
Venezuela irked
Exxon Mobil is starting exploration drilling at the
large Stabroek Block off the coast of Guyana, the government said, in a move
that could inflame a long-running territorial row with Venezuela. "They are doing the preparatory work, and
actual drilling is expected to commence tomorrow (Friday) morning," says
Guyana's Natural Resources Minister Robert Persaud. Guyanese officials said
President Donald Ramotar met Exxon Mobil officials in Georgetown this week and
the company's exploration rig ship, Deepwater Champion, was now in position at
the concession area. (Reuters, http://www.reuters.com/article/2015/03/05/guyana-exxon-mobil-idUSL1N0W72RE20150305; El
Universal, http://www.eluniversal.com/nacional-y-politica/150305/venezuela-rejects-guyanas-protest-over-exxon-oil-prospecting)
Venezuela loses bid to reduce interest on Exxon
arbitration award
A New York district court has rejected Venezuela's bid
to reduce interest on a US$ 1.6 billion award that an international tribunal
had ordered it to pay Exxon Mobil Corp in compensation for nationalizations. The
decision is a setback for the government that has also sought revisions to the
International Center for Settlement of Investment Disputes' (ICSID) decision,
in addition to its outright annulment. "The judgment shall continue to accrue interest at the rate that the
ICSID award specified: 3.25% compounded annually, until Venezuela has made
payment in full," District Judge Paul A. Engelmayer ordered, denying
Venezuela's motion. (Reuters, http://www.reuters.com/article/2015/03/04/venezuela-exxon-idUSL1N0W621E20150304)
Uruguay may pay for Venezuelan oil with goods and
services
Venezuela will allow Uruguay
to pay for part of the oil it supplies with goods and services, through a 2005
cooperation agreement, according to a supplemental amendment signed in January
by the presidents of both nations in order to make the agreement more flexible.
More in Spanish: (Ultimas
Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/uruguay-podra-pagar-con-bienes-y-servicios-parte-d.aspx#ixzz3TPRoj300;
El Mundo, http://www.elmundo.com.ve/noticias/economia/internacional/uruguay-podra-pagar-con-bienes-y-servicios-parte-d.aspx;
El Nacional; http://www.el-nacional.com/)
Commodities
The government owes the food industry US$ 805
million
Pablo
Baraybar, President of the Food Industry Chamber (CAVIDEA), reports the government has not yet disbursed
US$ 805 million it still owes the food industry for payments to international
suppliers. "The delay is 195 days
and this is what is needed to transfer to suppliers, the industries do not
physically receive a single dollar". He estimates that in order
to correct the situation"60% of the
FOREX now used to import food should be directed to importing staples and
intermediate goods for domestic production". More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/banca/-805-millones-adeuda-el-gobierno-a-la-industria-de.aspx#ixzz3Tb1AIOFv;
Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/805-millones-de-dolares-adeuda-el-gobierno-a-la-in.aspx;
El Nacional, http://www.el-nacional.com/economia/Produccion-alimentos-caido-ano_0_586141582.html,
http://www.el-nacional.com/economia/Cavidea-Dolar-Simadi-impactara-alimentos_0_586141475.html)
Economy
& Finance
FEDECÁMARAS reports new FOREX system doesn't work,
Central Bank is now allocating currency directly
FEDECAMARAS, Venezuela's
principal business federation says the new FOREX system is "not benefitting" the economy and is
"accelerating the crisis"
in inventories. FEDECAMARAS Vice President Francisco Martínez says "we do not yet have a really reliable,
transparent and free flowing system for acquiring FOREX needed for buying
intermediate goods and staples for producing in Venezuela"...."this
accelerates the crisis in inventories...and is reflected on the shelves".
SIMADI’s poor design and the lack of dollar offers is raising alarm and forcing
the parallel dollar or black market dollar skyrocket. Software-related problems allegedly have prevented
smooth operation of the Exchange Marginal System (SIMADI), thus causing delays
in transactions. In the meantime, the
Central Bank cancelled a previously scheduled FOREX tender for banks and
exchange houses and instead has begun allocating FOREX "according to needs". (VENECONOMY, http://www.veneconomy.com/site/index.asp?ids=44&idt=42996&idc=2; El
Universal, http://www.eluniversal.com/economia/150305/interconnection-flaws-cause-delays-in-venezuelan-forex-system; and more in
Spanish: El
Mundo, http://www.elmundo.com.ve/noticias/economia/gremios/fedecamaras-denuncia-mal-funcionamiento-de-nuevo-s.aspx#ixzz3Tb1YvEKY;
http://www.elmundo.com.ve/noticias/economia/politicas-publicas/extraoficial---bcv-suspende-subasta-de-divisas.aspx#ixzz3Tb32ijo4;
El Universal, http://www.eluniversal.com/economia/150306/bcv-suspende-subasta-de-dolares-para-el-menudeo;
Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/fedecamaras-denuncia-mal-funcionamiento-de-simadi.aspx;
El Nacional, http://www.el-nacional.com/economia/Fedecamaras-critico-funcionamiento-sistema-cambiario_0_586141501.html;
http://www.el-nacional.com/economia/Suspenden-subasta-asignaran-directo-operadores_0_586141603.html)
Black market rate weakens below 250 bolivars per
dollar
Venezuela's black market exchange rate has weakened
below 250 bolivars per dollar as a new foreign exchange platform struggles to
satiate avid demand for dollars. The bolivar has weakened 32% since the start
of the year to fall to 255.43, according to website DolarToday, which says it
publishes the black market rate based mostly on currency trades along the
Colombian border. (Reuters, http://www.reuters.com/article/2015/03/04/venezuela-forex-idUSL1N0W62E020150304)
A significant sale operation of gold from the
Venezuelan Central Bank (BCV) reserves would take place very soon, according to journalist
Nelson Bocaranda. The BCV’s board of directors is reportedly set to approve the
sale of 1,400 Troy ounces, via the Deutsche Bank, Bank of America and Citibank,
with around US$ 500 million from each bank, according to Bocaranda. (Veneconomy,
http://www.veneconomy.com/site/index.asp?ids=44&idt=42998&idc=2)
Venezuela as risky for investors as Afghanistan, Iran
or Iraq
British risk advisors AON list Venezuela at the same
risk level for investors as Afghanistan, Iran or Iraq. The company says
Venezuela presents "high risks"
in all economic areas, along with "particularly
important problems in the legal, regulatory and foreign exchange areas".
More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Venezuela-invertir-Afganistan-Iran-Iraq_0_586141405.html)
Politics and
International Affairs
Jailed opponents to be
nominated to legislature, Prosecutor General claims López is barred
Jesús Torrealba, Secretary General of the
opposition Democratic Unity Conference (MUD) says the three key jailed leaders,
Caracas Mayor Antonio Ledezma, Voluntad Popular's Leopoldo López, and former
San Cristóbal Mayor Daniel Ceballos, have agreed to be nominated to the
National Assembly. The date for parliamentary elections has yet to be set.
Torrealba added that if they are elected "by the sovereign people....if this should happen, if the people's
decision is to take these three leaders out of jail, I do not see how the
government can prevent it." Prosecutor General Luisa Ortega swiftly
replied that Leopoldo López cannot run
in the legislative elections because he has been banned from
public office until 2017. She explained that “it is not that the candidacy is null, it’s he cannot be nominated.”
López was banned from public office by the Comptroller General’s Office in
2008, in two consecutive “rulings” for six years and for three years.
(Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43000&idc=1;
and more in Spanish: Infolatam, http://www.infolatam.com/2015/03/04/opositores-presos-ledezma-lopez-y-ceballos-seran-candidatos-parlamentarias/)
Maduro terms
"stupid" speculation over leftist coup d'état
President Nicolás Maduro labeled news agency
Efe as "stupid" following
analyses and reports regarding the possibility of a coup d'état perpetrated by
the government itself in order to put off the upcoming parliament vote, due to
chavismo's declining popularity. "Coup perpetrators have reported that I am going to launch a coup. How Machiavellian
is that! Those leading the Efe agency are stupid people who hate us,"
Maduro said during a rally in downtown Caracas to commemorate the second
anniversary of the death of former President Hugo Chávez. (El Universal,
http://www.eluniversal.com/nacional-y-politica/150305/maduro-terms-stupid-speculation-over-leftist-coup-detat)
US pushes back on
Venezuela’s order to slash embassy staff
The United States has pushed back against
Venezuela’s demand for a dramatic cut in the American diplomatic mission in
Caracas. State Department spokeswoman
Marie Harf says the U.S. noted that Venezuela was wrong about the number of
diplomats it has working in the U.S. “The
numbers the Venezuelan government has offered regarding the size of its mission
in the United States dramatically understates the number of Venezuelan
diplomats,” she said. Venezuela has
74 officials accredited by the US State Department, at its Embassy in
Washington DC and 8 consulates - not 17 as Maduro announced. Harf said no
American diplomats had been ordered to leave Venezuela. The U.S. was only
ordered to submit a plan within 15 days on how it would reduce staffing at the
embassy in Caracas and would respond “after
due consideration of their request,” she said. Venezuela published also regulations
removing the U.S. from a list of countries whose citizens can travel here
without obtaining a visa. US citizens must now pay US$ 30 to receive a one year
multiple entry visa for a total 90 days in Venezuela, applications must be made
90 days before the travel date. The same official notice also formally banned
entry by a list of conservative U.S. politicians, including former President
George W. Bush, former Vice President Dick Cheney and Republican Sen. Marco
Rubio of Florida. (The Washington Post: http://www.washingtonpost.com/world/the_americas/us-pushes-back-on-venezuelas-order-to-slash-embassy-staff/;
Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2377057&CategoryId=10717;
El Universal, http://www.eluniversal.com/nacional-y-politica/150305/us-to-respond-to-venezuelas-measures-via-diplomatic-channels);
and more in Spanish: El Universal, http://www.eluniversal.com/nacional-y-politica/150306/estadounidenses-deben-pagar-30-por-la-visa-de-turista; http://www.eluniversal.com/nacional-y-politica/150306/gobierno-de-venezuela-tiene-74-diplomaticos-en-eeuu)
UNASUR confirms visit by
secretary general and foreign ministers
The Union of South American Nations (UNASUR) has
confirmed that a delegation of Unasur foreign ministers and Secretary General Ernesto
Samper are meeting here with President Nicolás Maduro "to examine the situation in the country,"
and foster "rapprochement and
dialogue with other political and social actors". (El
Universal, http://www.eluniversal.com/nacional-y-politica/150305/unasur-confirms-visit-of-secretary-general-and-foreign-ministers-to-ca)
Inter American Human Rights Commission asks
regime to avoid "excessive use of
force"
The Inter American
Human Rights Commission has asked the Venezuelan regime to take steps to avoid
the "excessive use of force"
at demonstrations and has expressed regret at the death of a 14 year old high
school student during protests in San Cristóbal. More in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/150304/cidh-solicito-medidas-para-evitar-uso-excesivo-de-fuerza; El Nacional; http://www.el-nacional.com/)
Venezuela urges Guyana
to reopen border dispute negotiations
The Venezuelan government has urged Guyana to
reopen bilateral "negotiation" mechanisms to address a border dispute
between both countries as soon as possible. The Venezuelan Foreign Office
pointed out that discussions should be conducted "with no reservations or misunderstandings, in a peaceful, legitimate,
and lawful manner, through the United Nations Secretary General Good Officer
Process as an optimal and convenient methodology to undertake bilateral and
friendly negotiations without the annoying interference of foreign factors, in
order to reach a practical and satisfactory solution for both parties."
(El Universal, http://www.eluniversal.com/nacional-y-politica/150305/venezuela-urges-guyana-to-reopen-border-dispute-negotiations)
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.
