International
Trade
Recent imports at Puerto Cabello
- 30,000 tons of corn
from Brazil, for state company CASA
- 195 tons of frozen beef from Brazil, also for
CASA.
- 338 tons in 19 vans of condensed milk and
baby formula, from NESTLÉ Mexico to NESTLÉ Venezuela.
- 765 tons in 26 containers of condensed milk
from Uruguay to Alimentos NISA and Lácteos La Cabaña
- 60 tons of butter from ECOLAT Uruguay, for
Flor de Aragua.
- 5,495 tons of cement, along with steel mesh
and corrugated cardboard also arrived.
More in Spanish: (El Carabobeño; http://www.el-carabobeno.com/impreso/articulo/98935/-30-mil-toneladas-de-maz-arribaron-al-puerto-para-la-estatal-casa;
Notitarde, http://www.notitarde.com/La-Costa/Mas-de-30-mil-toneladas-de-maiz-llegaron-al-puerto/2014/04/14/321163)
Commodities have been left behind in
Panama
Since the government broke relations with Panama goods coming from that
country were left there, including appliances, medicines, chemicals for
agriculture and food were left behind while merchants here have been left with
little to sell. More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/investigacion/mercancia-se-quedo-varada-en-panama.aspx#ixzz2yrL3vcSv; El Mundo, http://www.elmundo.com.ve/noticias/actualidad/noticias/mercancia-se-quedo-varada-en-panama.aspx)
Logistics
& Transport
Airlines will not be repaid at VEB 4.30 or at 6.30,
contrary to what the Minister had announced
Contrary to what General Hebert García Plaza, Minister for Aquatic and
Air Transportation, said a few weeks ago, an inside source who asked to remain
anonymous says the decision has been made to repay all government debts with
airlines pending since 2012 at the SICAD 1 rate, which averages VEB 11/U$D. "Negotiations are stalled, no payment
has been made since the announcement made by General García Plaza. Authorities
are proposing different forms of payment to the airlines, and the companies are
studying them. For the time being no airline has accepted full repayment at the
SICAD 1 rate", it said. More in Spanish (El Nacional; http://www.el-nacional.com/)
Oil
& Energy
Venezuela's proven oil reserves up
0.2%
Venezuela's proven reserves went up 0.2% in 2012-2013, says the Ministry
of Petroleum and Mining. (El Universal, http://www.eluniversal.com/economia/140414/venezuelas-proven-oil-reserves-up-02)
Commodities
Basic food scarcity index was up to 60.2% at the close of
Q1 2014
According to measurements taken by DATANALISIS the scarcity index for
regulated foodstuff averaged 51.9% during Q1 2014, and rose to 60.2% by the end
of March. The survey includes supermarket chains, independents, grocery stores,
informal trade and the government network including MERCA, PDVAL AND Abastos
Bicentenario. Consumers could access an average of 9 out of 18 products in the
basic food basket. The scarcity index rose 36% above 2012 and 14.7% above 2013.
More in Spanish: (El Universal, http://www.eluniversal.com/economia/140415/escasez-de-alimentos-basicos-se-ubico-en-602-en-marzo)
Economy
& Finance
High oil prices do not translate
into high international reserves
Constraints on FOREX available at the official exchange
rate for key sectors of the Venezuelan economy are due to fewer US dollars
available at the Central Bank of Venezuela. International reserves available
for core imports and debt service is running below demand. Whereas oil prices
have been above U$D 90 over the past years, commitments by state-run oil
holding Petróleos de Venezuela (PDVSA) have limited the sale of foreign
currency to the BCV. As a result, the flow for purchases of raw materials,
finished products and equipment, as well as payment of services, has narrowed. (El Universal, http://www.eluniversal.com/economia/140414/high-oil-prices-do-not-mean-high-international-reserves)
Fewer items will be imported at VEB6.30/U$D
The Cencoex is going over the current customs codes
(goods and services) to determine which could go from the Bs.6.30:$ rate to the
fluctuating SICAD 1 rate, set at Bs.10:$ in the most recent bid. The procedure
with the Cencoex would be the same (the companies would not participate in the
bidding) but when the Venezuelan Central Bank (BCV) liquidates the dollars, it
would do at the SICAD 1 rate. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=38903&idc=2)
Anglo American sues Venezuela over U$D
600 million expropriation
Global mining company Anglo American PLC has become the
latest corporation to file suit against Venezuela over its treatment of
investors. Venezuela now has 28 cases pending against it – the most of any
nation in the world. Argentina, which had previously held the number one spot,
now has only 24 cases listed as pending. The World Bank’s International Center
for the Settlement of Investment Disputes (ICSID) has accepted a request for
arbitration against Venezuela filed by Anglo American’s lawyers. The company
says that Venezuela's actions regarding the Loma de Niquel mining concession -
including the expropriation of Loma’s assets without prompt, adequate and
effective compensation - breached the UK-Venezuela Bilateral Investment Treaty.
According to the ICSID docket, Venezuela now has 28 cases pending against it –
the most of any nation in the world -- after a rash of expropriations and
nationalizations by Venezuela's late President Hugo Chavez - who formally
removed the country from ICSID jurisdiction in January of 2012, saying he would
not accept any further rulings from the arbitration court. However, clauses in
bilateral investment treaties and individual contracts continue to give ICSID
jurisdiction to hear cases against Venezuela. Other companies with pending
ICSID arbitrations against Venezuela include mining and smelting companies Gold
Reserve Inc., RUSORO Mining Ltd., CRYSTALLEX International Corporation, and
TENARIS SA; food industry companies GRUMA, POLAR, LONGREEF, VESTEY, and OWENS-ILLINOIS
Inc.; and oil industry companies Tidewater Inc., Williams Cos. Inc., KOCH
Industries Inc., CONOCOPHILLIPS, and EXXONMOBIL. (Reuters, http://www.reuters.com/article/2014/04/12/angloamerican-venezuela-idUSL2N0N40BP20140412; Bloomberg, http://www.bloomberg.com/news/2014-04-12/anglo-american-files-for-arbitration-over-venezuela-concession.html;
and Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=1926189&CategoryId=10717)
Opposition demands inflation data
Venezuela's opposition has accused the government of delaying
publication of March inflation data for political reasons, saying the annual
rate has reached an alarming 60%. The Central Bank is supposed to publish the
closely watched consumer price index in the first 10 days of the month, but
delays sometimes occur. Venezuela has the highest inflation in the
Americas, with the opposition saying that is evidence of the failure of
socialism and President Nicolas Maduro blaming his opponents for sabotage,
hoarding and economic "war" against him. (Reuters, http://www.reuters.com/article/2014/04/14/venezuela-economy-idUSL2N0N60K720140414)
Politics
Dialogue is continuing between the government and
opposition, Brazilian FM back in Caracas
Talks are continuing between government representatives
and members of the opposition Democratic Unity Conference, and Brazil's Foreign
Minister Luiz Alberto Figueiredo is back in Caracas to act as
"witness" on behalf of UNASUR. (El Universal, http://www.eluniversal.com/nacional-y-politica/140415/gobierno-y-mud-discuten-sobre-metodologia-y-temas-del-dialogo); Ultimas
Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/este-martes-continua-dialogo-entre-gobierno-y-la-m.aspx#ixzz2yx8q0BLI; http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/canciller-brasileno-viaja-a-caracas-para-segunda-r.aspx#ixzz2yxAVLLSz
Capriles: Change in Venezuela will not
be driven by violence, calls on the government to truly dialogue
"Whether you
like it or not, our Venezuela changed on April 14, but it changed for an
inclusive proposal and a country where we all represent everyone," says
opposition leader Henrique Capriles Radonski in summarizing opposition
achievements in the presidential election of April 14, 2013. Capriles apparently
lost by a margin of 1.49% (7.3 million votes, that is, 49.12%), but asked the
National Elections Council to audit all ballot boxes, tally sheets, and poll
books on grounds that the election had been subject to irregularities. The
initially promised audit never took place. Capriles also said the government
must prove that it wants to dialogue. He said "The country is skeptical of dialogue because a lot of water has gone
under the bridge and since there are no concrete actions, they can be
indifferent. But it is up to the government for that to change. How can it
change and prove that it really wants a dialogue? If there are actions, there
are signs." (El Universal, http://www.eluniversal.com/nacional-y-politica/140414/capriles-no-change-in-venezuela-will-be-driven-by-violence;
and http://www.eluniversal.com/nacional-y-politica/140415/miraflores-debe-dar-senales-de-que-quiere-dialogar)
Machado asks European Parliament to send a mission to
Venezuela
Ousted National Assembly legislator María Corina Machado
spoke to the Foreign Affairs Commission of the European Parliament on the
situation in Venezuela, and requested the group send a mission to Venezuela,
"to get a first hand view of repression carried out by the Maduro
regime". Her request was supported by Spain's Socialist legislator Luis
Yañez, who proposed the mission travel next June. More in Spanish: (El
Universal, http://www.eluniversal.com/nacional-y-politica/140415/solicitan-a-eurodiputados-el-envio-de-mision-a-venezuela)
Venezuela's military admits excesses
during deadly protests
The military here has admitted it committed "some excesses" during weeks of political unrest that have left
more than 40 people dead. The military's strategic command chief, General
Vladimir Padrino, said they were investigating 97 officers and police staff for
"cruelty and torture". But
the general stressed these were less than 1% of all officers. Security forces
have been accused of human rights abuse during the almost daily anti-government
protests. The opposition and human rights activists accuse the security forces
of repression and using heavy-handed tactics. "No soldiers have received orders to hurt anyone, harass or end the life
of a Venezuelan," says General Padrino. (BBC)
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.
