International Trade
Border crisis hurts bilateral trade
Gilberto Gudiño, President
of Zulia's State Business Union, says closing down land trade with Colombia at
the border will cost the nation around US$ 800 million for the remainder of
2015, at around US$ 5-10 daily. He reports around 200 vans with products and
supplies for industry have been stuck on this side of the border for over a
week, and says border exchange normally includes seeds, detergents and personal
care products such as toothpaste, shampoo, mouthwash and soap. More in Spanish:
(El Universal, http://www.eluniversal.com/economia/150917/situacion-fronteriza-afecta-comercio-bilateral)
Venezuela to sign over 10 agreements with Saudi Arabia
The Kingdom of Saudi Arabia and Venezuela have set up
a "Joint High Level Committee"
during a visit to Caracas by Saudi Arabia's Minister of Trade and Industry,
Tawfiq bin Fawzan Al Rabiah. The agreements will focus on the areas of
petrochemicals, industrial, agribusiness, energy, education, culture, and
diplomacy of both nations. (El Universal, http://www.eluniversal.com/nacional-y-politica/150915/venezuela-to-sign-over-10-agreements-with-saudi-arabia)
Oil &
Energy
Venezuela's OPEC proposal
focuses on oil price, not volumes
Government officials claim Venezuelan proposals
for a summit between OPEC and non-OPEC producers are advancing, and should
focus on bolstering oil prices rather than limiting volumes. The country seeks
a fair price for oil that will support economic growth and energy
demand, Oil Minister Eulogio Del Pino said after a meeting between
Venezuelan and Saudi Arabian officials in Caracas. The oil price floor
Venezuela is suggesting would be analyzed every quarter, he said. “The minimum, minimum price should be US$ 70,”
President Nicolas Maduro said : “Oil at
$70 a barrel guarantees investments needed for global energy and economic
stability.” (Bloomberg, http://www.bloomberg.com/news/articles/2015-09-15/venezuela-says-opec-meeting-plan-advancing-after-saudi-talks)
Economy
& Finance
A PDVSA default could put
Venezuela's oil exports at risk
President Nicolás Maduro's regime, overwhelmed
by an acute liquidity crisis, has already defaulted on private business, and
markets are pointing to the possibility of a sovereign debt default next year
if oil prices do not improve. Yet Maduro will do everything possible to meet
state oil company PDVSA's obligations, even if it means selling off all
remaining FOREX reserves and dooming millions of Venezuelans to starvation. Analysts
say a default on PDVSA bonds would strike a devastating blow on Venezuela's
distressed economy as it would not only put the company's remaining assets
abroad, but also its ability to export the crude oil that generated 95% of the
nation's dollar income. BARCLAY's has reported that “Venezuela and PDVSA will probably meet their obligations up to the
first quarter of 2016....but without structural reforms the following payments
will depend on oil prices and China's willingness to continue, or raise, the
level of its exposure in Venezuela". PDVSA must pay out US$ 3.1
billion that are due in late October and early November 2016. More in Spanish:
(El Nuevo Herald, http://www.elnuevoherald.com/noticias/mundo/america-latina/venezuela-es/article35386086.html#storylink=cpy)
Politics and
International Affairs
Maduro to meet with
Santos over border crisis
President Nicolás Maduro has announced he will
meet with Colombian President Juan Manuel Santos over the ongoing border
conflict between both countries. "We
got it ...it will take place next Monday in Quito (Ecuador)", Maduro
said. Ecuador's President Rafael Correa confirmed the meeting will take place
following efforts by himself and Uruguayan President Tabaré Vázquez. Santos had
previously said there could be a meeting after pointing to positive gestures by
Venezuelan authorities toward people crossing the common border. (Reuters, http://www.reuters.com/article/2015/09/15/us-venezuela-colombia-idUSKCN0RF2H320150915;
El Universal, http://www.eluniversal.com/nacional-y-politica/150916/colombias-santos-extending-border-shutdown-prevents-solutions; and more in Spanish: Infolatam, http://www.infolatam.com/2015/09/17/santos-y-maduro-se-reuniran-el-lunes-en-quito-por-crisis-fronteriza/)
Maduro extends border
closure with Colombia
The border closure already extends to 17 more municipalities
for a total of 23 across three border states (Táchira, Zulia and Apure), under
a state of emergency and strong military presence at all levels, allegedly to
avoid "provocations from the other side," as Maduro has insisted. The
only border state spared from this outrage so far is Amazonas. (Latin American
Herald Tribune, http://www.laht.com/article.asp?ArticleId=2396635&CategoryId=10717)
Arreaza says border decisions are irreversible
Executive Vice
President Jorge Arreaza says decisions taken by President Maduro about the
Colombia-Venezuela border "are
irreversible", and hopes Colombia will "step up and guard its own border". More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/arreaza-las-acciones-en-la-frontera-son-irreversib.aspx#ixzz3lzOMlxtS; El Nacional; http://www.el-nacional.com/)
Nearly half of Colombians fear Venezuela war
over border crisis: poll
Nearly half of Colombians fear a diplomatic
dispute that began last month when Venezuela closed several border crossings
and deported thousands of Colombians, could lead to war, a survey showed. 43% of people in a CIFRAS Y CONCEPTOS poll said
they fear the crisis could lead to military conflict between the two countries.
20% percent said they were afraid more Colombians would be expelled from
Venezuela. The neighbors could break diplomatic relations, 19% said, while 13%
believe Venezuelans could leave their country for Colombia. The countries share
a long and porous border plagued by drug trafficking, paramilitaries, left-wing
guerrillas and smugglers. (Reuters, http://www.reuters.com/article/2015/09/15/us-venezuela-colombia-survey-idUSKCN0RF22Q20150915)
Uruguay: No formal
announcement yet on UNASUR meeting to address border crisis
The Ministry of Foreign Affairs of Uruguay, which
holds pro-tempore presidency of the Union of South American Nations (UNASUR), has
said there is no final decision on a summit of UNASUR Heads of State to tackle
the border crisis between Venezuela and Colombia. Venezuelan Foreign Minister
Delcy Rodríguez had announced that the UNASUR Heads of State would meet next
Monday, September 21, at the request of Argentina, to discuss the border issue,
but she would not reveal the place where the meeting would be held. (El
Universal, http://www.eluniversal.com/nacional-y-politica/150916/uruguay-no-formal-announcement-yet-on-meeting-to-address-border-crisis)
Guyana starts gold
extraction in disputed area with Venezuela
The government of Guyana announced the beginning
of gold extraction works in a mine located in region 7, in the Essequibo,
northeast Guyana, an area whose sovereignty is currently in dispute with
Venezuela. Guyanese President David Granger congratulated Canadian company
Guyana Goldfields, the company which was granted the mine concession, during
the opening of operations in the Aurora mine. Guyana Goldfields has invested
US$ 200 million to start up the mining project in the Aurora mine. The expected
output of the mine amounts to an average of 194,000 ounces (6 tons) of gold
during the next 17 years. (El Universal, http://www.eluniversal.com/nacional-y-politica/150916/guyana-starts-gold-extraction-in-disputed-area-with-venezuela)
President Maduro
freezes approval of Guyanese ambassador
President Nicolás Maduro has announced that the
government of Guyana requested the agrément for its new ambassador to
Venezuela, but approval was put on hold following some alleged offensive
remarks made by Guyanese Foreign Affairs Minister Carl Greenidge against
Venezuela. "On the one hand, they
(Guyana) ask us to approve their (designated) ambassador, and on the other
hand, they destroy us, they attack us, and issue offensive statements against
Venezuela and the Bolivarian government. The government of President (David)
Granger must come clean," President Maduro said. He remarked that the
possibility of normalizing ties between Venezuela and Guyana opened up
recently, within the framework of oil alliance PETROCARIBE. Bilateral relations
have been strained over the last few months in a new chapter in a historic
border dispute over the Essequibo territory. (El Universal, http://www.eluniversal.com/nacional-y-politica/150916/president-maduro-freezes-approval-of-guyanas-ambassador)
Guyana-Venezuela border spat takes to Google
Maps
The centuries-old territorial dispute has taken
a technological turn as anglophone Guyana decries Google Maps' Spanish-language
labeling of street names in a region claimed by neighboring Venezuela. The
contended English-speaking area, which encompasses two-thirds of Guyana and
effectively functions as part of the former British colony, is at the heart of
the long-standing dispute, recently revived after an oil discovery off its
shores. Roads in the sparsely populated jungle region are known locally by
English monikers, but some appear with entirely different Spanish-language
names on Google Inc's map service. (Reuters, http://www.reuters.com/article/2015/09/16/us-venezuela-guyana-idUSKCN0RG00F20150916;
Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2396540&CategoryId=10717)
López holds Maduro
directly responsible for his personal safety
Jailed opposition leader Leopoldo López has
said President Nicolás Maduro and his henchmen will be responsible for "any attack" made against him inside
prison, and call for the people to mobilize "peacefully and democratically". He is currently appealing his
conviction. More in Spanish: (Infolatam, http://www.infolatam.com/2015/09/16/lopez-responsabiliza-a-maduro-de-cualquier-atentado-que-pueda-sufrir/)
European Parliament
rejects López' conviction
The President of the European Parliament Martin
Schulz, speaking on behalf of the parliament, rejected the conviction of
Venezuelan opposition leader Leopoldo López, who was sentenced to nearly 14
years of imprisonment last week. Schulz said that the EP would send Venezuelan
authorities a note of protest against López conviction. He added he had met a
few weeks ago with López' wife, Lilian Tintori, to whom he conveyed his
solidarity for an "unfair proceeding".
(El Universal, http://www.eluniversal.com/nacional-y-politica/150916/european-parliament-rejects-lopezs-conviction)
Venezuela was saved from a 'Pinochet,' leader
says after opponent jailed
President Maduro claims Venezuela has been
spared a Pinochet-like figure, in an apparent defense of a near 14-year jail
sentence handed to opposition leader Leopoldo Lopez after deadly protests last
year. "We're vaccinating the
fatherland of a 'Pinochet'," Maduro said, referring to former Chilean
dictator Augusto Pinochet. (Reuters, http://www.reuters.com/article/2015/09/16/venezuela-politics-idUSL1N11M02G20150916)
Cuba rejects "smear campaigns" against Venezuela
The government of Cuba has reasserted its
"absolute" support of
Venezuela over what it described as "smear
campaigns" against the administration of President Nicolás Maduro, who
currently faces harsh criticism and international rejection following the
conviction of opposition leader Leopoldo López. "It is not possible to accept interference or meddling in Venezuela's
internal affairs, let alone in the decisions adopted observing procedural
guarantees and due process," said Cuban Minister of Foreign Affairs
Bruno Rodríguez. (El Universal, http://www.eluniversal.com/nacional-y-politica/150916/cuba-rejects-smear-campaigns-against-venezuela)
....and ALBA follows
suit
The countries comprising the Bolivarian
Alliance for the Peoples of Our America also issued a communiqué warning
against an alleged "smear and
aggressions campaign" against Venezuela, and remarking they would be
"on the alert to threats to the
independence and sovereignty of the nation." In addition, the ALBA
countries voiced their concern over statements made by several countries
concerning recent judicial decisions in Venezuela. They noted that ALBA could
not accept "attitudes seeking to
interfere or meddle in the internal affairs of a State, coming from other
States." (El Universal, http://www.eluniversal.com/nacional-y-politica/150915/albatcp-warns-against-alleged-smear-campaign-against-venezuela)
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.
