April 14, 2015

International Trade

 

Cargo that has arrived at Puerto Cabello

• Over 3000 tons of construction equipment and supplies arrived from China for the Foreign Trade Corporation (CORPOVEX) government agency
• Over 1,415 tons of tubing from China for Reyco Suministros.

There are a total of seven motorboats in the process of offloading, three of them move bulk cargo. More in Spanish: (Notitarde; http://www.notitarde.com/La-Costa/Llegaron-mas-de-tres-mil-toneladas-de-materiales-de-construccion-a-Puerto-Cabello/2015/04/11/505844)

 

Regime curbs cocoa exports, irks Japanese, Swiss chocolatiers

Venezuela's flavorful cocoa, coveted centuries ago by pirates and now a darling of specialty producers, will not be enriching foreign chocolate bars any time soon. The socialist government has drastically reduced export permits for cocoa in the last five months, according to Venezuela's cocoa industry group which reports some 5,000 tons from the January-February cocoa harvest are stuck in country, ruffling chocolatiers in top importers Japan and Switzerland and risking roughly US$ 17.5 million in export revenue. "They're ruining the reputation of Venezuela as a cocoa exporter," said group President Alejandro Prosperi. Local media says export license restrictions may be intended to bring down domestic chocolate prices. (Reuters, http://www.reuters.com/article/2015/04/10/venezuela-cocoa-idUSL2N0X715A20150410)

 

 

Oil & Energy

 

Maduro sees no improvement in oil prices this year

In a speech upon his return from the Summit, President Maduro said: "One cannot visualize a recovery in oil prices this year, we have done everything possible, but unfortunately the mistaken strategy by President Obama's advisors has led to 'fracking" in order to flood world oil markets." More in Spanish: (Últimas Noticias: http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/ejecutivo-no-ve-recuperacion-de-precios-del-petrol.aspx#ixzz3XIIPCCPh)

 

 

Commodities

 

Venezuela alarmingly low on food

"There is a real storm developing due to the lack of dollars. The situation is desperate and may get a lot worse," says Russ Dallen, head of local investment bank Caracas Capital Markets, who has spent several years keeping a close eye on the Venezuelan situation. "In the next two or three months we are about to see a terrible shortages situation, much worse than we have seen so far -- not only because inventory levels are quite low already, but because at this point imports of the products needed within 8-12 weeks are not being allowed into the country." (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2383181&CategoryId=10717)

 

SIDOR steel production shutting down for lack of industrial gas

Two SIDOR major steel plants in the Guayana region have stopped their production due to lack of industrial gas from PDVSA. The situation arises while SIDOR is already operating at 20% of its installed capacity for lack of investment, supplies and spare parts. Average gas consumption at the plants averages 86,000 cubic feet of gas daily, but PDVSA has been supplying only 40-50,000 cubic feet. Union leader Carlos Ramírez adds: "they haven't told us how long we will be like this". More in Spanish: (Correo del Caroní: http://www.correodelcaroni.com/index.php/economia/item/30086-insuficiencia-de-gas-ha-paralizado-la-aceria-de-palanquillas-de-sidor)

 

 

Economy & Finance

 

Maduro vows to radicalize the "revolution", hit business harder

Upon his return from the Panama Summit, President Nicolás Maduro publicly told his Cabinet and other authorities: "enough with so many meetings with the private sector, so many papers...let's apply a hard hand, let's radicalize the revolution".  He added: "In the current phase of economic warfare two additional products have gone scarce because they are essential for adults. Every week and month there is a new product that is scarce". He said "I told the Vice President and others, with no delay, summon businessmen that received FOREX to import these two products. Investigate them, review their accounts, go to their storage facilities and if necessary turn them over to the Prosecutor because I am sure they are responsible for economic sabotage". He urged workers to take to the street and face off "bandit businessmen", and threatened to extradite and jail publishers of a Miami based webpage that reports on FOREX fluctuations. More in Spanish: (El Universal: http://www.eluniversal.com/nacional-y-politica/150413/maduro-basta-de-tanta-reunidera-vamos-a-radicalizar-la-revolucion; El Mundo, http://www.elmundo.com.ve/noticias/economia/politica/investigaran-a-empresarios-que-comercializan-dos-p.aspx#ixzz3XH8s0Rxa)

 

Cabello says 7,000 companies are now under investigation for irregular use of FOREX

National Assembly President Captain Diosdado Cabello reports the Prosecutor General has opened investigations of around 7,000 private companies for misuse of FOREX. More in Spanish: (AVN; http://www.avn.info.ve/contenido/7-mil-empresas-están-siendo-investigadas-país-uso-irregular-divisas)

 

Central Bank’s international reserves slumped US$ 3.2 billion to US$ 21 billion in March due to shrinking oil revenues and debt payments. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43449&idc=2)

 

Gold Reserve moves to seize Venezuela bond payments over US$ 750 million judgment

Gold Reserve has served banks in Luxembourg with the equivalent of writs of garnishment relating to around US$ 700 million in interest payments on Venezuelan bonds and funds, cranking up its push to collect an arbitration award from this country. "These banks were chosen because they are designated as paying agents or transfer agents in listing memoranda relating to various bonds issued by Venezuela and listed on the Luxembourg Stock Exchange," the Toronto-listed gold mining company said in a statement. The fresh push by Gold Reserve to collect its arbitration award is likely to worry cash-strapped Venezuela, which is struggling to foot hefty bond payments and seeking to delay payment of major arbitration awards. Targeting banks could also unnerve bondholders amid worries over the country's debt servicing. "Venezuela is going to have to turn around and be very careful now about paying and how it pays interests on coupons. Clearly Gold Reserve is going to look for assets to seize or freeze," said Russ Dallen head of Caracas Capital Markets in Miami. Still, Dallen said Venezuela would likely ultimately pay the award when it runs out of dilatory actions. It was not clear when a Luxembourg court might decide on the issue. (Latin American Herald Tribune: http://laht.com/article.asp?CategoryId=10717&ArticleId=2383455)

 

Venezuela bonds rise after new FOREX restrictions

Venezuela's global bonds rose after the government restricted supply of hard currency for foreign travel, potentially improving the nation's capacity to repay debt amid concerns about a potential default. A new resolution limits the amount of dollars that Venezuelans can receive at a preferential exchange when traveling abroad. One Wall St. analyst said that could save US$ 2.8 billion in hard currency in 2015. "This could represent savings for the government of about US$ 2.8 billion in FOREX allocations in 2015, a non-negligible amount that could provide needed relief for Venezuela's tight cash flows," wrote Alejandro Grisanti of Barclays in a research note. (Reuters, http://www.reuters.com/article/2015/04/13/venezuela-economy-idUSL2N0XA0S420150413; El Universal, http://www.eluniversal.com/economia/150413/venezuelan-bonds-climb-after-restrictions-in-usd-quotas)

 

Almost five million people could move to public banks

José Grasso, a Venezuelan economist and the CEO of Softline Consultores, estimates that almost five million card holders in private banks could move to public banks to finance their foreign travel and use the quota allocated in official exchange rate to e-purchases. The new ruling by the Finance Ministry "authorized exchange brokers are those belonging to public banks." The financial expert said that there are 11 million credit cards throughout Venezuela, for around seven million people, taking into account that some individuals hold at least two credit cards. However, public banks cannot issue credit cards to request foreign currency for travel due to plastic shortages. This is what bank customers are reporting after they flocked to Banco de Venezuela and other public banks on Monday to partially or totally migrate from private banking. Private banks can only receive and process requests for FOREX for travelers with credit cards and cash for children and teens through May 9, but major banks are already announcing they will cease such operations ahead of that date. (El Universal, http://www.eluniversal.com/economia/150413/almost-five-million-people-could-move-to-public-banks; Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43461&idc=2; http://www.veneconomy.com/site/index.asp?ids=44&idt=43460&idc=2; http://www.veneconomy.com/site/index.asp?ids=44&idt=43452&idc=2; http://www.veneconomy.com/site/index.asp?ids=44&idt=43451&idc=2)

 

Opposition warns of increase in gasoline prices, interest rates and bank transaction taxes

Enrique Márquez, President of the Un Nuevo Tiempo party, was told media that President Nicolás Maduro is about to announce measures which will further impoverish Venezuelans, including raising gasoline prices and bank interest rates, as well as bringing back the tax on banking transactions. More in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/150414/unt-alerta-que-aumentaran-gasolina-tasas-de-interes-y-retomaran-idb)

 

 

Politics and International Affairs

 

Obama meets Maduro amid high tension

U.S. President Barack Obama met Venezuelan President Nicolas Maduro in a brief informal encounter at the regional summit on Saturday and tried to ease tensions that surged after the United States recently placed sanctions on Venezuela. Maduro had earlier challenged Obama to discuss his decision to sanction seven Venezuelan officials, saying that he had been trying to arrange a meeting with Obama for two years but never received a response. Obama was not present at the time but the two later met. A U.S. official said it was a brief conversation just as Obama was leaving for his return to the United States. Maduro later said “the possibility exists of moving to a process of talks.” He also reported he visited with Fidel Castro for four hours after the Summit to review its results, and proclaimed "this triumph belongs to Fidel". (Reuters, http://www.reuters.com/article/2015/04/12/us-cuba-usa-maduro-idUSKBN0N20QK20150412; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2383405&CategoryId=10717; http://www.laht.com/article.asp?ArticleId=2383223&CategoryId=10718; El Universal, http://www.eluniversal.com/nacional-y-politica/150413/venezuela-us-uphold-peaceful-dialogue; and more in Spanish: Correo del Orinoco: http://www.correodelorinoco.gob.ve/caracas/presidente-maduro-dedica-a-fidel-victoria-dignidad-y-soberania-cumbre-americas/)

 

STRATFOR: The US cannot end Venezuela's crisis

Caracas is running out of lifelines. For now, Maduro will have to rule with the ever-present possibility of protests. The long-running economic crisis could soon become an existential crisis for the ruling United Socialist Party. The rapid economic decline has clearly affected the government's public approval, and the polling trend in recent months shows a clear deterioration of political support for the government. Maduro's administration will probably not be able to reverse the trend ahead of legislative elections simply by spending more. As it is, there is just not enough petroleum income to sustain the central government. Venezuela's leaders realize that the current situation is unsustainable, but political factions within the ruling party do not want to make changes that could bring down the government or threaten their current positions. Members of the political and military elite, for example, currently benefit from currency arbitrage through the country's overvalued exchange rate. Some of these officials are concerned that they may face U.S. criminal charges, primarily for drug trafficking. To move ahead with a serious negotiation toward a political transition, the United States and the political opposition in Venezuela would have to take these individuals' interests into account. Legislative elections will be crucial to watch. If the opposition makes significant gains, it could gain some power within the legislature and potentially acquire leverage to pressure Maduro into making concessions, such as releasing political prisoners. Such a vote may not proceed peacefully. And Washington, along with an array of willing mediators in Latin America, will be pushing Caracas toward such concessions in an effort to cushion Venezuela's fall. (STRATFOR: https://www.stratfor.com/sample/analysis/united-states-cannot-end-venezuelas-crisis)

 

Chile's Lagos and Frei join efforts to free political prisoners in Venezuela, Bachelet refuses to meet wives

Chilean former Presidents Eduardo Frei y Ricardo Lagos met with the wives of Antonio Ledezma and Leopoldo López (Mitzy Capriles and Lilian Tintori) and joined a list of 26 former democratic heads of state - including Chile's Sebastián Piñera - that are pressing the Maduro regime for the release of political prisoners in Venezuela. Lagos proposed the state of political prisoners here should be verified by the International Red Cross, as was the case during Pinochet's dictatorship in Chile. Chile's Socialist President Michelle Bachelet declined to see the wives of the two imprisoned opposition leaders alleging her country's involvement in mediation efforts between Venezuela's regime and the opposition here. More in Spanish: (El Nacional; http://www.el-nacional.com/)

 

In  Panama, Capriles charges regime with prioritizing ideology above  local problems

Opposition Governor of Miranda state Henrique Capriles has charged that President Nicolás Maduro prioritizes "socialism and brotherhood among countries" over the Venezuelan economic crisis, high prices, and the border dispute with Guyana. He  added that the government "sought to transform the freezing of assets and suspension of entry into the US against some Venezuelan officials into ‘an imperial interventionist action and meddling.” (El Universal, http://www.eluniversal.com/nacional-y-politica/150413/dissenter-ideology-is-prioritized-over-local-problems)

 

HUFFINGTON POST: United States, Venezuela and UNASUR: Four Questions

Sanctions adopted by the U.S. government against seven mid-ranking Venezuelan state officials, who are involved in or are responsible for severe human rights violations, have prompted some strong reactions in Latin America for the past month. All this triggers four questions. And the first of these questions must be whether these reactions are proportional to the cause. The measures were not taken against the country as a whole, its economy or its population, but only against seven mid-ranking state officials who do not benefit from state immunity under international law. These seven individuals are banned from entering U.S. territory and entry restrictions for foreigners are always a prerogative of any sovereign state. Furthermore, the U.S.-based assets of these seven officials have also been subject to freezing orders - and it seems unclear whether any such assets actually exist. The next question is whether these rather symbolic sanctions are legal. Was UNASUR right to question its legality? The justification given by the Obama administration was the need to enforce respect for human rights and to safeguard democratic institutions within the framework of international law. These rules are enshrined in treaties to which Venezuela and the United States are parties as well as in customary international law. UNASUR -- which curiously enough does not include a legal adviser among its recently recruited senior staff -- gives the impression of dismissing these measures as illegal without thorough examination. The third question is: Why the United States? Isn't this a case of double standards? It is true that despite the hierarchy of human rights in the international system, countries generally tend to avoid taking actions when human rights are violated in another state. But this reluctance does not mean non-directly injured States cannot, individually and within certain parameters, adopt sanctions: some will take small steps, others may take more substantial ones. And to do that, international law does not ask for an unblemished own record which no country has. (Huffington Post: http://www.huffingtonpost.com/paz-zarate/united-states-venezuela-a_b_7034284.html)

 

 

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.

April 10, 2015

International Trade

 

Cargo that has arrived at Puerto Cabello

• 2,974 tons in 266 containers bearing construction materials and mixer trucks from China's Duowei Union Group and Sany Automobile for the Venezuelan Foreign Trade Corporation.
• 2,759 tons in 110 containers bearing milk and frozen beef from Eskimo, Centrolac, Productos Lácteos La Perfecta, Industria Comercial San Martín, Nova Terra y Exportadora San Andrés.
• 1,767 tons of milk from Sancor Cooperativas Unidas for state agency Corporación Venezolana de Comercio Exterior (CORPOVEX)
• 1,752 tons of doors and Windows from Catic Beijing for state agency CORPOVEX.
• 1,134 tons of personal care products such as shampoo, sanitary napkins and diapers sent by Procter & Gamble to their Venezuelan affiliate.
• Over 1,079 tons of maize seed from Colombia for state agency AGROPATRIA and 850 tons from Montesano Comercial for CORPOVEX.
• 155 tons of auto parts sent by China's Chery Automobile to Corporación ZGT.
• Over 121 tons of frozen beef from Loma Bonita S.A.
• 67 tons of frozen beef from Frigorífico Gorina Saic. for state agency Banco del Tesoro

More in Spanish: (Notitarde; http://www.notitarde.com/La-Costa/Mas-de-mil-toneladas-de-leche-para-Corpovex-llegaron-al-puerto-2387488/2015/04/08/505335/; and http://www.notitarde.com/La-Costa/Mas-de-dos-mil-toneladas-de-alimentos-llegaron-al-puerto-local-2386642/2015/04/07/505160/)

 

 

Logistics & Transport

 

Zulia port operations down 67% due to drop in imports

Ship arrivals in Zulia state are reported to have dropped from 60 to 10, and the Naval Association says difficulties for importers in acquiring FOREX is the main reason. Port activity in the region dropped 67% during the first quarter this year, says Gonzalo Fernández, President of the Zulia State Naval Association (ASONEZ),  adding: "Sea transport does not escape the nation's real situation. Trade is lower each year. We have lost markets in North America, Central America and Europe".  Weekly routes are now every 15 days. Ships that are over 495 feet long no longer arrive. Exports are also down drastically. From 1,100 containers that used to go out of Zulia, bearing items such as shrimp, crabs, plantains, asphalt and chemicals, they are now down to 20 at the most. He reports that 85% of containers stranded at the port are from the public sector. Activity by customs agents is down 30% since companies to not get the FOREX needed for imports. The worsening situation endangers 40,000 direct jobs and 300,000 indirect ones. Trade in Zulia has had a 90% drop in inventories during the first quarter this year, according to Gilberto Gudiño, of the UCEZ, who adds there is 75% scarcity in vehicle spare parts and 90% scarcity of auto parts needed to assemble vehicles, as well as 90% scarcity in beef. Fernández, of ASONEZ, also says there is a serious problem with sediments in the navigation channel in Zulia, as 19 months have gone by with no dredging by the National Canalization Institute at Maracaibo's port. 15 years ago the channel was 42.5 feet deep and it is now 35.1 feet so ships cannot be loaded at full capacity. More in Spanish: (La Verdad, http://www.laverdad.com/economia/72896-operaciones-portuarias-disminuyen-67-por-caida-en-las-importaciones.html)

 

 

Oil & Energy

 

Venezuela's income from crude oil sales to the US cut by half

Venezuela's income from crude oil sales to the US in January and February this year were US$ 2.156 billion, a 54% drop from last year, according to the US Department of Commerce. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/petroleo/pdvsa/ingresos-por-ventas--de-crudo-a-eeuu-caen-mas-de-l.aspx#ixzz3WnxKa6eW)

 

PDVSA to pay interest to bond holders

State oil company Petróleos de Venezuela (PDVSA) says that on April 13h it will pay holders of PDVSA bonds 2017, 2027, and 2037 interests accrued for the six-month period ending in April this year. PDVSA says payments are to be made "in compliance with the predefined conditions of the bonds issued on April 12, 2007." Bond holders must go to the bank or financial institution where they purchased the bonds in order to get information about their status and how the payment would be settled. (El Universal, http://www.eluniversal.com/economia/150408/pdvsa-pays-interests-to-bond-holders)

 

Venezuela links EXXON presence in disputed zone to Obama Executive Order

Venezuela’s government claims a subsidiary of U.S. oil giant ExxonMobil is carrying out “unauthorized” operations in disputed waters off Guyana and linked them to Washington’s recent diplomatic steps against Caracas. “The actions of (Esso Exploration and Production Guyana Ltd.), with its intention to carry out unauthorized operations within the maritime territory adjoining Venezuela, contradict public international law and show its intent to subvert it,” says Venezuela’s Foreign Ministry. The ministry says it sent a letter to the head of that Exxon unit, Jeff Simon, reiterating its rejection of the company’s intentions and asserting that they violate bilateral obligations signed by Guyana and Venezuela. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2382782&CategoryId=10717; Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43413&idc=4; El Universal, http://www.eluniversal.com/nacional-y-politica/150409/venezuelan-fm-rejects-exxon-mobils-meddling-in-disputed-area)

 

US will finance energy projects in the Caribbean

On his way to the Summit of the Americas meeting in Panama, US President Barack Obama met with the heads of state of member nations within the Caribbean Community (CARICOM) and announced his country will make an initial contribution of US$ 20 million for public and private investment renewable energy projects in the Caribbean. He said the nations in the region need access to "cleaner" and "more affordable" energy. More in Spanish: (El Universal; http://www.eluniversal.com/internacional/150410/eeuu-financiara-proyectos-de-energia-en-el-caribe; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/mundo/eeuu-invertira-20-millones-para-impulsar-energias-.aspx; El Mundo, http://www.elmundo.com.ve/noticias/petroleo/energias/eeuu-invertira--20-millones-para-impulsar-energias.aspx)

 

PETROCARIBE inaugurated two new plants in the Eastern Caribbean

PETROCARIBE has inaugurated a GLP cylinder filling plant in Grenada and a fuel storage and distribution plant in Saint Vincent and the Grenadines. The Grenada plant can store 1200 barrels of liquid oil gas; and the Saint Vincent plant can store 34,000 barrels of fuel several tanks. More in Spanish: (PDVSA, http://www.pdvsa.com/; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/fotos--inauguran-planta-de-gas-licuado-chavez-bish.aspx; El Mundo, http://www.elmundo.com.ve/noticias/petroleo/gas/inauguran-planta-de-gas-licuado--chavez-bishop--en.aspx; Agencia Venezolana de Noticias; http://www.avn.info.ve/contenido/inaugurada-planta-distribución-combustible-hugo-chavez-san-vicente-y-granadinas, http://www.avn.info.ve/contenido/inauguran-planta-llenado-gas-grenada)

 

 

Commodities

 

Rice supply is in critical condition, says Fuad Kassen, head of Venezuela’s National Rice Federation. Rice planted during the dry season is barely 60% of the amount planted in the same cycle last year. Kassen also reports the sector is working at a loss as it costs them Bs.15 to produce one kilogram and they barely get Bs.8.60/kilogram. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43399&idc=3)

 

 

Economy & Finance

 

For three months running Venezuela's Central Bank (BCV) has failed to publish inflation figures (100 days without any figures, actually). It has also failed to publish shortage indexes and GDP data as well as the components of the balance of payments. An IMF mission was in the country just before Easter, trying to solve the lack of transparency in Central Bank statistics to no avail. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43410&idc=2)

 

Tax reform may be enacted using special powers

President Nicolás Maduro has announced his regime will enact a new fiscal reform using special powers granted to him by the National Assembly. He did not enter into any details about proposed changes. More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/ejecutivo-hara-reforma-fiscal-via-habilitante.aspx#ixzz3Wi1WZWtw; El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/ejecutivo-hara-reforma-fiscal-via-habilitante.aspx)

 

 

Politics and International Affairs

 

Obama says Venezuela is no threat to the US, Maduro indicates "new era" in bilateral relations

US President Barack Obama has said in an interview that: “We do not believe that Venezuela poses a threat to the United States, nor does the United States threaten the Venezuelan government,” Obama said in an interview ahead of this week’s VII Summit of the Americas in Panama. “But we do remain very troubled by the Venezuelan government’s efforts to escalate intimidation of its political opponents, including the arrest and prosecution of elected officials on political charges, and the continued erosion of human rights".  He added that neither the United States nor any other member of the Inter-American community “should remain silent” about the situation in Venezuela, although he stressed that Washington “remains open to direct dialogue” with Caracas. he said. Previously, veteran US diplomat Thomas A. Shannon, Jr., Counselor to the US State Department, visited Caracas at the invitation of the Venezuelan government and met with Foreign Minister Delcy Rodríguez. It was not confirmed whether a planned meeting with President Nicolás Maduro took place. Shannon delivered a message from the US for the Venezuelan government and Rodríguez repeated the demand that President Obama´s Executive Order of March 9th - terming Venezuela a "threat" - should en repealed, according to a brief Foreign Ministry communiqué. Shannon also met with leaders of the opposition Democratic Unity Conference (MUD). MUD Executive Secretary Jesús Torrealba "welcomed" the US initiative on "clarifying" the terms of the Executive Order, and said they "are in favor of punishing those who violate human rights worldwide,  but oppose sanctions against an entire nation". After Obama's statement, Venezuelan President Nicolás Maduro went on national media to say "this could at the moment open a door to start a new historic era of relations between Venezuela, Latin America and the US empire", but added that "we demand the dismantling of the war machine set up in the US Embassy, which is directing the economic war, that has directed the attempt to divide the Armed Forces, that directs the political and psychological warfare. That is not an Embassy for diplomacy, it is a war machine against Venezuela, and it isn't possible that way." (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2382921&CategoryId=10717; El Universal, http://www.eluniversal.com/nacional-y-politica/150409/obama-says-venezuela-is-not-a-threat-asks-for-direct-dialogue; and more in Spanish: El Universal, http://www.eluniversal.com/nacional-y-politica/150409/canciller-solicito-a-shannon-que-eeuu-derogue-el-decreto; http://www.eluniversal.com/nacional-y-politica/150410/maduro-abrimos-una-nueva-era-de-relaciones-con-eeuu; http://www.eluniversal.com/nacional-y-politica/150410/obama-sigue-abierto-el-dialogo-con-venezuela; http://www.eluniversal.com/nacional-y-politica/150410/mesa-felicito-aclaratoria-de-washington-sobre-su-decreto; El Nacional; http://www.el-nacional.com/; Infolatam, http://www.infolatam.com/2015/04/08/canciller-venezolana-se-reune-con-consejero-de-eeuu-thomas-shannon-en-caracas/; El Mundo, http://www.elmundo.com.ve/noticias/economia/politica/mud--estados-unidos-tendra-una-presencia-mas-activ.aspx)

 

Venezuela's demand on US Executive Order blocks Summit consensus

Venezuela's demand on including a condemnation of the US Executive Order on sanctions on 7 officials marked for violating human rights and corruption may block a final consensus statement by heads of state meeting at the 7th Summit of the Americas. Panama's Vice President and Foreign Minister, Isabel de Saint Malo, will avoid publishing agreements reached during the meeting in formal documents, and instead deliver them to appropriate international organizations, such as the OAS, ECLAC and the Inter American Development Bank. In lieu of a final statement, Panamanian President Juan Carlos Varela will deliver a final "institutional statement". More in Spanish: (Infolatam, http://www.infolatam.com/2015/04/09/exigencia-venezolana-de-condenar-a-eeuu-impide-consenso-en-cumbre-americas/)

 

More than 25 former heads of State and government from America and Spain have presented the Panama Declaration, on the eve of the Summit of the Americas. In it they decry “the severe democratic and institutional, economic and social crisis affecting Venezuela.” They also demand the release of Venezuela’s political prisoners and the reestablishment of conditions for the exercise of fundamental rights. Spain's former President José María Aznar read the statement, flanked by Mexico's Felipe Calderón, Colombia´s Andrés Pastrana and Bolivia's Jorge Quiroga. "Silence is equivalent to complicity", he said. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43412&idc=5; El Universal, http://www.eluniversal.com/nacional-y-politica/150409/former-presidents-and-leaders-ask-to-stop-silence-on-venezuela; and more in Spanish: El Universal, http://www.eluniversal.com/internacional/150410/exigen-a-lideres-de-la-region-dejar-silencio-sobre-venezuela; Infolatam, http://www.infolatam.com/2015/04/09/25-ex-presidentes-firman-declaracion-en-defensa-de-la-libertad-en-venezuela/)

 

Venezuelan opposition leader Carlos Vecchio met with Bill Clinton in Panama

A key leader of opposition party Voluntad Popular, Carlos Vecchio, met with former US President Bill Clinton within the framework of the 7th Summit of the Americas in Panama. The exiled leader said he had the opportunity to thank "Clinton's support in favor of the freedom of Leopoldo López and political prisoners in Venezuela". (El Universal, http://www.eluniversal.com/nacional-y-politica/150409/venezuelan-dissenter-carlos-vecchio-meets-with-bill-clinton-in-panama)

 

Mayor Ledezma indicted for alleged conspiracy

Venezuela's Prosecutor General has indicted opposition Caracas Metropolitan Mayor Antonio Ledezma for conspiracy, for allegedly supporting violent groups seeking to create chaos in the country. (El Universal, http://www.eluniversal.com/nacional-y-politica/150408/mayor-ledezma-indicted-for-alleged-conspiracy)

 

Colombia asks Venezuela not to harm civilians on shared border

The Colombian government has asked Venezuelan military authorities to avoid actions harming civilians who live at the border between Colombia and Venezuela. On Wednesday, a Colombian citizen was shot when seven fugitives were being chased by Venezuelan Marines. Five of the fugitives were Colombian civilians who were held at the premises of the Marine Corps, Efe reported. (El Universal, http://www.eluniversal.com/nacional-y-politica/150409/colombia-asks-venezuela-not-to-harm-civilians-on-shared-border)

 

Former Justice Garzón: Venezuela faces serious human rights issues

Spanish former Justice Baltasar Garzón says Venezuela faces a serious situation of fundamental rights abuses, which should be investigated. He says it is "fair" that Spanish former socialist President Felipe González is defending two Venezuelan opposition leaders held in custody. "There is undoubtedly a serious human rights issue in Venezuela; we can see it every day," Garzón stressed. (El Universal, http://www.eluniversal.com/nacional-y-politica/150409/former-justice-garzon-venezuela-faces-serious-human-rights-issues)

 

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.

 

April 07, 2015

International Trade

 

Cargo that has arrived at Puerto Cabello

• 14,528 tons of beef, chicken and powdered milk in 441 containers from Brazil's JBS for state agency CORPOVEX
• 2,147 tons of powdered milk and margarine in 80 containers from Brazil for CASA
• 440 tons of security valves in 24 containers, from China for state agency CORPOELEC
• 92 tons of auto parts in 11 containers of auto parts from Ford Motor USA for Ford Motor Venezuela.

More in Spanish: (Notitarde; http://www.notitarde.com/La-Costa/Mas-de-16-mil-toneladas-de-alimentos-llegaron-al-puerto-local-2385807/2015/04/06/504989/)

 

 

Logistics & Transport

 

6 new carriages for the Los Teques Metro arrived at La Guaira port

Land Transport and Public Works Minister Haiman El Troudi has announced that 6 new carriages for the Los suburban Los Teques Metro have arrived at La Guaira's port, for a new train linking Caracas and the satellite city. More in Spanish: (AVN; http://www.avn.info.ve/contenido/arribaron-al-puerto-guaira-6-nuevos-vagones-para-metro-teques-0)

 

 

Oil & Energy

 

Maduro will propose a constitutional ban on "fracking" in Venezuela

President Nicolás Maduro says he will propose a "constitutional prohibition" of fracking in Venezuela. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/petroleo/pdvsa/maduro-propondra-prohibicion-constitucional-del-fr.aspx#ixzz3WWMeQCad)

 

Harvest Natural Resources is planning a restructuring after the Venezuelan government blocked its plans to sell assets it still has in that country. The American crude oil and natural gas producer said it had had a restriction to liquidity due to PDVSA not paying dividends and failing to comply with other parts of their contract. It explained it is in talks with PDVSA to try to reach a friendly way out of PetroDelta where the company has a 20% stake. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43326&idc=4)

 

 

Economy & Finance

 

FOREX reserves down 13% in March to US$ 20.973 billion from US$ 24.176 billion at the beginning of the month. More in Spanish: (El Universal, http://www.eluniversal.com/economia/150406/que-esta-pasando)

 

Gold reserve "swap" may happen soon

The Central Bank is reported to be negotiating a swap using 1.4 million troy gold ounces of its reserves as 4 year collateral for US$ 1.5 billion. More in Spanish: (El Universal, http://www.eluniversal.com/economia/150406/operacion-swap-de-oro-es-factible-en-el-corto-plazo)

 

Canadian Gold Reserve reports a request to declare default against Venezuela in a Washington court (1st District of Columbia). After an arbitration process that concluded in September 2014, the court ruled Venezuela had to pay the mining company US$740 million. Gold Reserve filed a motion to have the ruling executed last November to no avail. Venezuela must pay over US$ 2.8 billion for the different cases of expropriation of assets in the country. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=43339&idc=2)

 

Venezuelan tax authority exceeds collection goal by 54%

The Venezuelan Customs and Tax Administration Service (Seniat) says it has exceeded by 54% its income tax collection goal for the first quarter this year. Income tax collection totaled VEB 60.23 billion (US$ 9.56 billion) versus a goal of VEB 39.10 billion (US$ 6.2 billion), according to a communiqué issued by SENIAT.  It received over 3.5 million tax returns, a surge of over 1,100,000 returns from January-March 2014, which is regarded as a success in the expansion of the tax base. (El Universal, http://www.eluniversal.com/economia/150406/venezuelan-tax-authority-exceeds-collection-goal-by-54)

 

Tribunal dismisses VENOKLIM lubricants case against Venezuela

A World Bank tribunal has thrown out an arbitration case pitting Netherlands-incorporated motor lubricants company Venoklim against Venezuela over a 2010 nationalization. The International Center for Settlement of Investment Disputes (ICSID) said on Friday that Venoklim is ultimately owned by Venezuelans and thus did not qualify for arbitration as a foreign company. "The tribunal dismissed the case for lack of jurisdiction," wrote Venezuela's lawyer George Kahale of Curtis, Mallet-Prevost, Colt & Mosle LLP in an e-mail to Reuters on Monday. "Claimant said (the compensation sought) was a substantial amount, but the case did not reach the stage for it to specify how much." (Reuters, http://www.reuters.com/article/2015/04/06/us-venezuela-arbitration-idUSKBN0MX17G20150406)

 

 

Politics and International Affairs

 

CARICOM supports Guyana in border dispute with Venezuela

The Caribbean Community (CARICOM) supported Guyana in its border dispute with Venezuela, arguing that the Arbitral Award of 1899 is valid. The 15 countries comprising the Caricom rejected a communiqué by the Venezuelan Ministry of Foreign Affairs and published in several Caribbean newspapers, in which Venezuela contended that the Arbitral Award of 1899 was null and void. CARICOM says the award "definitively settled the boundary between the two countries." (El Universal, http://www.eluniversal.com/nacional-y-politica/150406/caricom-supports-guyana-in-border-dispute-with-venezuela)

 

FOREIGN POLICY: Busting myths about the latest U.S. sanctions on Venezuelans

A significant number of cognoscenti have labeled President Obama's recent sanctions on seven Venezuelans a “mistake,” one that is likely to embolden Maduro instead of weakening him. Don’t believe it. There’s zero evidence that the sanctions are helping Maduro in any way. If anything, they’re hurting him. Part of the uproar over the Executive Order has to do with its harsh language. The document calls the situation in Venezuela “an unusual and extraordinary threat to the national security and foreign policy of the United States,” and declares “a national emergency to deal with that threat.” This was done in order to invoke the International Emergency Economic Powers Act, which allows the White House to impose sanctions on individuals. This tough wording did not sit well with Latin American governments. Most of them have expressed support for Venezuela and called for the order’s repeal. Maduro is hoping to make this a major issue at the upcoming Summit of the Americas and has embarked on a drive to collect signatures for a national petition protesting the U.S. measures. But the frenzied objections from Caracas are just hot air. Judging by his overreaction, Maduro is terrified of further sanctions. He’s doing his best to convince everyone that sanctions are making him stronger, and attempting to dissuade the international community from imposing further penalties on corrupt members of his clique. The sanctions do not affect ordinary Venezuelans in any way. By making life hard on those in charge of implementing orders from above, and who also happen to be the people least likely to have taken precautions to protect themselves — the sanctions may well cause serious cracks in the governing coalition. Venezuelans don’t seem to be buying into Maduro’s hysterics because they have more serious problems to worry about. There have been numerous reports of people being coerced to sign. Public servants are being forced to do so, as are schoolchildren; and signatures are being demanded in exchange for hard-to-find items, such as chickens sold at government grocery stores. If the sanctions were a boon to the Venezuelan government’s standing with its own population, you’d think that it would have been happy about the announcement from Washington. Yet this doesn’t explain why Venezuelan officials spent months lobbying against the implementation of the sanctions. Maduro is trying to scare Obama from going any further and has even said that, if the sanctions go away, Venezuela stands ready to work with the U.S. There is no basis to conclude that sanctions are helping Maduro. If they were, he’d be welcoming them. Instead, he’s acting like a man under siege, doing his best to bully Obama into repealing them. That is a clear sign that they’re hurting. (Foreign Policy, http://foreignpolicy.com/2015/04/02/busting-myths-about-the-latest-u-s-sanctions-on-venezuelans-caracas-maduro-obama/)

 

US does not plan to discuss Venezuela at Summit, disappointed at lack of Latin American support

US Assistant Secretary of State for Latin America Roberta Jacobson has said "I see no reason to talk about a specific country" at the upcoming Summit of the Americas in Panama. She also expressed disappointment that more Latin American governments did not help Washington clarify that the sanctions imposed are not directed against Venezuela's government or its economy. Jacobson also said President Barack Obama plans only for one separate meeting, and that is with his Panamanian host Carlos Varela. More in Spanish: (El Heraldo, http://www.elheraldo.co/internacional/ee-uu-no-piensa-abordar-tema-de-venezuela-en-cumbre-de-las-americas-de-panama-190038)

 

Former presidents denounce "alteration of democracy" in Venezuela

Nineteen former Ibero-American presidents denounced the "alteration of democracy" in Venezuela through the so-called Panama Declaration, which will be presented next April 9, ahead of the seventh Summit of the Americas to be held in Panama. According to the FAES foundation, whose chairman is former Spanish President José María Aznar, the undersigned asked the participants of the Summit to join efforts to find an "alternative" to solve the Venezuelan crisis, Efe highlighted. (El Universal, http://www.eluniversal.com/nacional-y-politica/150406/former-presidents-denounce-alteration-of-democracy-in-venezuela)

 

Colombia's Santos deplores US sanctions against Venezuelan officials

Colombian President Juan Manuel Santos rejected the sanctions levied by his US counterpart Barack Obama against seven Venezuelan government officials, and called for talks among the different local political factions. In an interview he said: "We have always said that unilateral sanctions are counterproductive in the long run, hence we deplore them." (El Universal, http://www.eluniversal.com/nacional-y-politica/150406/colombias-santos-deplores-us-sanctions-against-venezuelan-officials)

 

Peruvian minister: no comments about Venezuela's situation

Pedro Cateriano, the Chairman of the Council of Ministers of Peru, said that it would be wrong "to intervene in Venezuela's internal affairs" when he was asked whether the government of President Ollanta Humala should adopt a more critical stance towards the government of Venezuelan President Nicolás Maduro. (El Universal, http://www.eluniversal.com/nacional-y-politica/150406/peruvian-minister-no-comments-about-venezuelas-situation)

 

Rajoy hopes for "good relations" with Venezuela

Spain's President Mariano Rajoy says he hopes to have "good relations" with Venezuela, although he also said that he would like to see Venezuelan dissenters Leopoldo López and Antonio Ledezma "out of prison". In an interview, Rajoy recalled that he has met with the wives of both dissenters in his capacity and added: "There is no reason for them (López and Ledezma) to be in prison." (El Universal, http://www.eluniversal.com/nacional-y-politica/150406/rajoy-hopes-to-have-good-relations-with-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.