Venezuelan Daily Brief

Published in association with The DVA Group and The Selinger Group, the Venezuelan Daily Brief provides bi-weekly summaries of key news items affecting bulk commodities and the general business environment in Venezuela.

Thursday, September 17, 2015

September 17, 2015


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.

 

Tuesday, September 15, 2015

September 15, 2015


International Trade

 

Cargo that has arrived at Puerto Cabello:

  • Over 40,000 metric tons of cement for state agency Socialist Cement Corporation
  • Over 12,254 tons of beef and chicken from Brazil for state agency CASA
  • Over 4,282 tons of powdered milk, margarine and chicken from Brazil for state agency CASA
    170 containers with material and equipment for oil and gas exploration, production and refining, as well as supplies and accessories for the marine industry and agriculture, for PDVSA
There are 13 ships at bay waiting to offload cargo, 9 of them carrying bulk, 3 with containers and one carrying general cargo.  More in Spanish: (Noticia al Día, http://noticiaaldia.com/2015/09/mas-de-40-mil-toneladas-metricas-de-cemento-llegaron-al-pais/; Bolipuertos, http://www.bolipuertos.gob.ve/noticia.aspx?id=33755; AVN; http://www.avn.info.ve/node/320125; El Universal, http://www.eluniversal.com/economia/150915/llegan-cemento-y-leche-en-polvo-para-reforzar-oferta; Bolipuertos, http://www.bolipuertos.gob.ve/noticia.aspx?id=33754; AVN; http://www.avn.info.ve/node/320125; Notitarde, http://www.notitarde.com/La-Costa/Arriban-a-Puerto-Cabello-25-contenedores-de-leche-en-polvo/2015/09/14/635759/; http://www.notitarde.com/La-Costa/Mas-de-16-mil-toneladas-de-alimentos-llegaron-para-Casa-2501654/2015/09/10/629313/; http://www.notitarde.com/La-Costa/Llegaron-suministros-para-la-industria-agricola-2501652/2015/09/10/629311/; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/arriban-a-puerto-cabello-25-contenedores-de-leche-.aspx)

 

 

Oil & Energy

 

Maduro says time for OPEC to convene heads of state summit

President Nicolas Maduro says it is time for OPEC to convene a heads of state meeting and that he would present the country's proposals to shore up oil prices to the group. Middle East producers from OPEC, however, have pledged to maintain high output in a fight to defend market share against rising competition. So far, they have stuck to their decision despite calls by other OPEC members, such as Venezuela, for the Middle East to cut excessive output. (Reuters, http://www.reuters.com/article/2015/09/15/us-venezuela-opec-idUSKCN0RF00320150915; El Universal, http://www.eluniversal.com/economia/150912/venezuela-proposes-control-over-oil-market)

 

Venezuela detains three vessels for suspected fuel smuggling

Three vessels suspected of smuggling subsidized fuel from Venezuela's refinery-rich Paraguana peninsula were detained this week by the country's navy, a local commander said. Sources told Reuters that seven people have been arrested for allegedly attempting to smuggle diesel in a tanker owned by state oil company PDVSA. Admiral Andres Gomez, commander of a local navy unit, confirmed tanker 'Negra Hipolita' was found with an excess load of 50,000 barrels of diesel fuel at the Cardon refinery. Two additional vessels, both from Panama, were detained this week by the Venezuelan navy, also on smuggling suspicions, Gomez added. It was not immediately clear when they were apprehended. (Reuters, http://www.reuters.com/article/2015/09/13/us-venezuela-oil-idUSKCN0RD01K20150913; El Universal, http://www.eluniversal.com/economia/150914/venezuelan-navy-detains-three-vessels-for-alleged-fuel-smuggling)

 

Gasoline consumption down 7 million liters per day in bordering regions

Venezuela says it will save US$ 2.5 billion a year, as gasoline consumption in the bordering municipalities of Táchira (southwest Venezuela) and Zulia (west) states has decreased by 7 million liters of gasoline per day, according to the President of state-run oil holding Petróleos de Venezuela (PDVSA), Eulogio Del Pino. Del Pino, who is also Minister of Energy and Mines, says President Nicolás Maduro's order to shut down several border crossings with Colombia on August 19 (in Táchira state) and September 7 (in Zulia state) has helped to clarify the real numbers of gasoline consumption in the area. Due to the shutdown of the Colombia-Venezuela border in Táchira state last August 19, a total of 1.5 million liters of gasoline per day have been prevented from being smuggled into Cúcuta, Colombia, the minister explained. The border shutdown prevents over 260,000 gallons of gasoline from being smuggled into Cúcuta from Venezuela, and gasoline represents 80% of Venezuelan products sold in Cúcuta, the Foreign Office added. (El Universal, http://www.eluniversal.com/economia/150912/gasoline-consumption-down-7-million-liters-per-day-in-bordering-region)

 

Venezuela to appeal judgment giving PDVSA refinery to CONOCO

Responding to a refinery loss, Venezuelan state-owned oil company PDVSA says it intends to appeal the U.S. federal court ruling upholding ConocoPhillips’ acquisition of its stake in a delayed coking unit at a Texas refinery. PDVSA and Conoco formed a 50-50 joint venture in the late 1990s to operate the unit at the refinery. Phillips 66, which was spun off from Conoco in 2012, currently owns and operates the coking unit and the rest of the Sweeny refinery, located in Old Ocean, Texas. The federal court in New York upheld a ruling last year by the Paris-based International Chamber of Commerce, which found in an arbitration case filed in 2010 that Phillips 66 had sole ownership in the refinery because PDVSA had forfeited its stake by failing to supply a contractually agreed amount of crude. PDVSA received no compensation for its 50% stake in the delayed coking unit based on a calculation in which the dividends it had received were subtracted from its capital contributions. Analysts said its portion of the refinery was worth over half-a-billion. PDVSA is represented by Curtis, Mallet-Prevost, Colt & Mosle, who frequently represent Venezuela and its state-owned oil company. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2396138&CategoryId=10717)

 

 

Commodities

 

PDVAL decreases outdoor food market sales operations due to lack of food

Food scarcity nationwide is even hitting government food distribution operations. PDVAL has had to cut down on the outdoor distribution operations, according to sources close to the organization who report: "Operations used to take place 5 times a week, Tuesday to Saturday, but due to shortages they are now taking place only on Saturdays, since last May". The same source reports that PDVAL warehouses used to distribute an average 13 primary products, and are now down to 5-7. More in Spanish: (El Nacional; http://www.el-nacional.com/)

 

 

Economy & Finance

 

Monaldi: The impact of the decline in oil prices on the economics, politics and oil industry of Venezuela

The picture does not look pretty for Venezuela. The macroeconomic crisis will likely get worse for lack of adjustment in an election year. There is even a small probability of hyperinflation and a much higher probability of debt default in 2016. There may be more political instability. The legislative elections should produce a majority for the opposition that could intensify the confrontation and might lead to a push to recall the president in a referendum in 2016–17. Street protests are likely to increase as the economy continues to collapse. The numerous problematic trends in the oil industry have been made worse by low oil prices. However, the new pragmatism in oil policy might lead to some improvement in private investment, but above ground risks could limit its impact. Conventional production would continue falling, so total production is most probably going to remain stagnant in the short term and is highly unlikely to grow significantly in the next two to three years. Extra-heavy production could rise at an increased rate if the current investor-friendly attitude remains in place. In a ten-year horizon production is more likely to increase, particularly if there is a transition to a more credible and stable government, but that potential could remain unfulfilled if political instability remains a serious issue. (Columbia, http://energypolicy.columbia.edu/sites/default/files/energy/Impact%20of%20the%20Decline%20in%20Oil%20Prices%20on%20Venezuela_September%202015.pdf)

 

FORBES: How does Venezuela compare to the world's worst managed economies?

Outside of Venezuela, around the world, controlling inflation is seen as the primary concern of most central bankers. In the economic crises of the 1970s and 1980s inflation soared in as a series of economic shocks rocked Latin America. Looking at the deleterious effects of these periods of hyperinflation, the region’s central bankers have made stamping out inflation and promoting economic stability their number one priority. Latin America, with its longstanding and heavy reliance on natural resource exports, is remarkably vulnerable to boom and bust cycles as commodity prices rise and fall. Today, successful economies in Latin America focus on responsible macroeconomic management and work to promote economic stability. Even revolutionary leaders such as Evo Morales in Bolivia have adopted conservative macroeconomic management policies and eschewed irresponsible, short-term spending binges in favor of programs designed to create sustainable growth. So, looking at the list of the world’s worst performing economies in terms of inflation management a few things stand out. The fact that Venezuela tops the list should come as no surprise. The nation has become a poster child for macroeconomic mismanagement. President Nicolas Maduro, the unfortunate successor to populist icon Hugo Chavez, has inherited a deeply unbalanced economy, and has resorted to desperate PR stunts such as jailing opposition leaders and blaming inflation on business owners rather than working to address the country’s underlying economic problems. Within Latin America, aside from Venezuela, only Argentina stands out for its struggles to control inflation. With double-digit inflation, Argentina is the only other Latin American economy besides Venezuela that sits alongside economies such as North Korea, Sudan, Syria, Ukraine, and the Central African Republic as one of the world’s worst managed economies. If policymakers in Venezuela are looking for a model to follow, they may want to turn their attention to Mexico, which has transformed from being a heavily protected interventionist economy to a much more open country with a strong industrial base. (Forbes, http://www.forbes.com/sites/travisbradberry/2015/09/15/6-ways-to-win-at-office-politics/)

 

Venezuela is in last place in world economic freedom report

For the second consecutive year, Canada's Fraser Institute has placed Venezuela last out of 157 countries that comprise its' 2015 World Economic Freedom Annual Report, with 3.23 points against a worldwide average of 6.86. (Fraser Institute: http://www.fraserinstitute.org/studies/economic-freedom-of-the-world-2015-annual-report)

 

BofA Merrill Lynch suggests free floating FOREX system for Venezuela

Venezuela needs to lift foreign exchange controls and move forward towards a free floating foreign exchange system, in conjunction with a macroeconomic stabilization plan, says Francisco Rodríguez, director of Bank of America-Merryl Lynch. "It is not a threat for the country, because it does not have to lose international reserves in defending the foreign exchange rate. In that regard, the foreign exchange convertibility within a free floating exchange regime is the best way to defend the country's resources held in the Central Bank. Lifting foreign exchange controls is not something to be afraid of," says Rodríguez. "The Central Bank could hold a transparent auction for US$ 100 million per day at a foreign exchange rate set by the market," he said. (El Universal, http://www.eluniversal.com/economia/150912/bofa-merrill-lynch-suggests-free-floating-forex-system-for-venezuela)

 

 

Politics and International Affairs

 

Harsh sentence for protest leader a gamble for Venezuela

The stiff sentence handed down to Venezuela's most prominent jailed opposition leader brought a cascade of criticism as President Nicolas Maduro's government continued along a combative path despite a crushing economic crisis, feuds with his neighbors and accusations of authoritarianism. Leopoldo Lopez was convicted of inciting violence during a wave of protests against the country's socialist administration in 2014, and was sentenced to the maximum punishment of nearly 14 years in a military prison. Critics at home immediately said the sentence should rally anti-government voters to the polls for crucial December legislative elections. From abroad, the White House said it was "deeply saddened" by the ruling. Amnesty International, the European Union and U.N. human rights officials joined in condemnation. "This case is a complete travesty of justice," said Jose Miguel Vivanco, Americas director at Human Rights Watch. "In a country that lacks judicial independence, a provisional judge convicts four innocent people after a trial in which the prosecution did not present basic evidence". The conviction of Lopez is likely to end, for now, a behind-the-scenes push by the U.S. to normalize relations with the country it declared a national security threat in March. The White House said Maduro's government was using the justice system to attempt to silence critics. Meanwhile, conservative lawmakers, including Florida Sen. Marco Rubio, began calling for a new round of sanctions in response to what the Republican presidential contender called a "show trial." The outrage in Washington contrasted with silence in Latin America, where no sitting president had yet to criticize the ruling. (The New York Times, http://www.nytimes.com/aponline/2015/09/11/world/americas/ap-lt-venezuela-opposition-leader.html)

 

US  "deeply concerned" about Lopez sentence in Venezuela

Assistant Secretary of State for Latin America Roberta Jacobson says the United States is "deeply concerned" about the conviction of Leopoldo Lopez", and called upon the government here "to protect democracy and human rights in Venezuela". More in Spanish: (Infolatam, http://www.infolatam.com/2015/09/11/roberta-jacobson-profundamente-preocupada-por-condena-a-lopez-en-venezuela/)

 

Latin American governments start to speak out on López case

Costa Rica's President Luis Guillermo Solis has openly criticized Lopez's conviction and that nation's Foreign Ministry indicated it is "concerned about the trial of Leopoldo López and four student leaders". Chile's Foreign Ministry followed suit in a note to the Maduro regime indicated it is "attentively" following the López process and hopes "judicial guarantees for a due process and effective available options so that the parties can appeal a sentence". Their Venezuelan counterpart quickly retorted by asking Chile "not to meddle", either "through direct action or under the influence of foreign powers". Paraguay's Foreign Ministry has said it expects "strict compliance with due process and actual respect for rights". The Peruvian government expressed concern over Venezuela's internal polarization and called for dialogue. OAS Secretary General Luis Almagro asked that the international community have access and expressed hope that due process and human rights standards should be observed during the appeals process. (Infolatam, http://www.infolatam.com/2015/09/15/silencio-de-los-gobiernos-latinoamericanos-frente-a-lopez-empieza-a-romperse/)

 

What about the Vatican?

Considering that this is an overwhelmingly Catholic country where the Holy See has strong connections (its secretary of state Pietro Parolin was serving there till 2013) and that Leopoldo López himself is Catholic, people might have expected Pope Francis or at least a senior Vatican spokesman to issue an instant condemnation of the verdict. But for better or worse, that is not the current papacy's way; it prefers to make its feelings known more discreetly, and to leave things to local bishops. Archbishop Roberto Luckert, one of the country's most outspoken hierarchs, has roundly condemned President Nicolás Maduro for expelling thousands of Colombians from the country.  But religious leaders, like political ones, have to make hard choices between keeping relationships and channels of dialogue open, and openly telling hard truths. In the course of his travels the pontiff, who has shown real eloquence in condemning the excesses of the capitalist north, can still expect some hard questions about his attitude to excesses of another kind. Will he denounce left-wing authoritarianism as much as he has denounced the right-wing variety? (The Economist, http://www.economist.com/blogs/erasmus/2015/09/pope-cuba-and-venezuela)

 

Colombia protests for military flyover, Venezuela denies charge

Colombia's government will formally protest and seek an explanation from Venezuela after detecting two military airplanes that flew into its airspace, President Juan Manuel Santos said. The two aircraft entered Colombia's northern La Guajira province without permission, flew about 1.8 miles over the border and then circled above a military unit, Colombia's Defense Ministry said in a statement. Venezuelan Foreign Minister Delcy Rodriguez said there was no evidence of any violation of Colombian airspace; and Venezuela's Minister of Defense and Head of the Strategic Operational Command of the Armed Forces (CEOFANB), General Vladimir Padrino López, denied that Venezuelan military aircraft violated the Colombian airspace over the weekend. Padrino López argued that Venezuelan pilots had asserted that they have not violated any foreign airspace whatsoever. (Reuters, http://www.reuters.com/article/2015/09/14/colombia-venezuela-idUSL1N11K01B20150914; Bloomberg, http://www.bloomberg.com/news/articles/2015-09-13/colombia-says-venezuela-military-planes-crossed-into-territory; El Universal, http://www.eluniversal.com/nacional-y-politica/150914/venezuelan-ministry-of-defense-denies-airspace-violation-in-colombia)

 

Closing the border was the “only way,” Zulia governor says

Zulia state Gov. retired Colonel Francisco Arias Cardenas says that closing the border in this region was “the only way” left for Venezuelan authorities to combat the problems of paramilitaries and the shipping of contraband to Colombia.
The top authority of Zulia, a state that shares more than 600 kilometers (370 miles) of border with Colombia, said in an interview that the government is “absolutely convinced that this can be a way, or perhaps the only way we have left, to deal in depth with these problems.” “This seems to us a strong but necessary measure that forces people, as in the game of dominoes, to shuffle the cards and change things,” said the governor, who stressed the need to “reestablish the border.” (The Latin American Herald Tribune,
http://www.laht.com/article.asp?ArticleId=2396341&CategoryId=10717)

 

US says Venezuela fails to comply with anti-drug efforts

US President Barack Obama has sent a message to Congress indicating that Venezuela and Bolivia, along with Burma, are nations that did not - in the past year - honor their commitments on drug traffic and production control under international antidrug agreements. More in Spanish: .(El Nacional; http://www.el-nacional.com/)

 

Venezuelan Supreme Tribunal balks complying with Human Rights Court decision on RCTV

Venezuela's Supreme Tribunal has declared that a decision by the Inter American Human Rights Court, ordering the Maduro regime to restore operating permits to the RCTV television network is "inapplicable". Other regime spokesmen have openly mocked the decision. More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/politica/tsj-declara-inejecutable-fallo-de-la-cidh-sobre-rc.aspx#ixzz3lQJmBcj4; El Nacional, http://www.el-nacional.com/politica/TSJ-declara-inejecutable-fallo-CIDH_0_699530314.html; El Universal, http://www.eluniversal.com/nacional-y-politica/150911/tsj-pide-al-gobierno-denunciar-en-la-oea-a-jueces-de-corte-idh)

 

 

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.

Thursday, September 10, 2015

September 10, 2015


International Trade

 

Cargo that has arrived at La Guaira:

  • 30,000 tons of white corn from México
  • 15,000 tons of wheat from Canada
  • 8,000 tons of wheat from New Orleans
More in Spanish: (Bolipuertos, http://www.bolipuertos.gob.ve/noticia.aspx?id=33745)

 

Cargo that has arrived at Puerto Cabello:

  • 283 tons of tires in 22 containers from Ecuador
  • Over 184 tons of rubber for manufacturing tires, from Guatemala, for Goodyear Venezuela
More in Spanish: (Notitarde; http://www.notitarde.com/La-Costa/Llegaron-283-toneladas-de-cauchos-a-Puerto-Cabello/2015/09/10/627131)

 

Border closing can shut down 60% of all exports to Colombia

By closing down the main land crossings on the border to Colombia, bi-national trade has been limited to air and sea routes at a time when Colombia continues to be Venezuela's third largest non-oil export market - and Venezuela's Exporters Association explains that 60% of all exports in 2013 were carried out by land, so the shutdown is estimated to impact in the same proportion. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/gremios/cierre-fronterizo-afecta-60--de-las-exportaciones-.aspx#ixzz3lKUfftXu)

 

 

Logistics & Transport

 

Empty trucks roll back over border

Some of the 103 trucks the Venezuelan regime has allowed to return from Colombia have started to come back, but with no cargo despite pleas by business associations grouped in FEDECÁMARAS to authorities so they will allow a large amount of merchandise from South America, Europe and Asia to pass through. More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/fedecamaras-camiones-sin-carga-retornaron-esta-mad.aspx#ixzz3lKLHVx8A)

 

 

Commodities

 

This Brazilian beef company has a US$ 2 billion stake in Venezuela's future

In June, the president of Venezuela’s congress, Diosdado Cabello, spent four days in Brazil. His first major meeting was with Joesley Batista, the eldest of a billionaire clan of five siblings who control JBS SA, the world’s largest meat packer. On three days, Cabello went to JBS plants. JBS has a US$ 2.1 billion contract and provides almost half the meat and a quarter of the chicken eaten by 28 million Venezuelans. The country accounts for about 10% of JBS’s export revenues, which some analysts have labeled a risky position, given Venezuela’s near default status.  JBS has an arrangement other companies do not. In 2014 it sold US$ 1.2 billion of food to the Venezuelan government and was paid within 90 days, according to documents prepared jointly by the company and the state import monopoly CORPOVEX. By contrast, numerous local and foreign corporations in Venezuela haven’t been able to obtain rationed dollars from the government in years. ECOANALITICA, a Caracas-based consultancy, notes that the Venezuelan government has US$ 28 billion of unpaid invoices to private companies. The JBS deal provides a Brazilian lifeline to Maduro’s government as it endeavors to stock food shelves in advance of elections. Last year, JBS was the biggest donor to Rousseff’s Workers’ Party. The company’s growing donations to Rousseff, as well as her opponents, were cited in a congressional inquiry of BNDES, the Brazilian state development bank, which owns a quarter of the beef maker. (Bloomberg, http://www.bloomberg.com/news/articles/2015-09-07/in-hungry-venezuela-a-brazil-beef-giant-has-extraordinary-power)

 

Maduro says Venezuela and China to develop gold industry

President Nicolás Maduro says that a special plan had been outlined to turn the gold industry into a new source of income for Venezuela as part of the agreements signed by his government and China; adding that the Minister of Petroleum and Mining and President of state-run oil company Petróleos de Venezuela (Pdvsa), Eulogio Del Pino, will be working along with an ad-hoc team to rearrange the entire gold sector in the country. (El Universal, http://www.eluniversal.com/economia/150909/venezuela-to-develop-gold-industry)

 

 

Economy & Finance

 

Venezuela´s Central Bank (BCV) has not paid out dollars that CENCOEX has previously authorized for the private sector over the past two months, according within the BCV. The reason for this is that PDVSA has not sold dollars to the BCV in these two months as it is saving funds to pay US$ 4.6 billion to service its bonds between September and December this year. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=45395&idc=2)

 

 

Politics and International Affairs

 

The Russian government denies Vladimir Putin and Nicolás Maduro have reached any concrete agreements to lower oil prices, during their recent meeting in Beijing, as Maduro claimed when he returned to Venezuela. Russian Presidency’s spokesman Dmitri Peskov said Tuesday “no specific cooperation or coordination tools were mentioned, nor were any particular steps or concrete promises made.” (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=45408&idc=4)

 

US Secretary of State Kerry calls Venezuela counterpart on border crisis, López case; Rodríguez version clarified

US Secretary of State John Kerry called Venezuelan Foreign Minister Delcy Rodriguez by phone Tuesday in an attempt to keep the lines of communication open between the countries, according to Roberta Jacobson, the top U.S. diplomat for Latin America. Kerry expressed concern about individuals jailed for political reasons in Venezuela, including prominent opposition leader Leopoldo Lopez, according to Jacobson. Lopez has been jailed for 19 months and a verdict in his case is expected Thursday. Last week, Kerry met with Lopez's wife, Lilian Tintori, in Washington. Kerry also discussed the need to find a quick resolution to Venezuela's two week-old border dispute with Colombia in light of the humanitarian situation. Rodríguez had previously posted to her Twitter account that: "At the request of the US Secretary of State, John Kerry, I received a call against the backdrop of talks to regularize bilateral diplomatic relations... The conversation... was fluent and tense at times. I conveyed frankly the stance of dignity of the Venezuelan government and people". Jacobson clarified: "The Foreign Minister has published several Tweets and that is her perspective." And said: "I will leave specific details to my boss". Jacobson said talks between both countries continue, "with discrepancies", in search of a "pragmatic relationship with Venezuela". (Associated Press, http://news.yahoo.com/secretary-state-kerry-talks-venezuela-counterpart-215339878.html; El Universal, http://www.eluniversal.com/nacional-y-politica/150909/venezuelan-and-us-fms-hold-telephone-conversation; and more in Spanish: Noticias RCN: http://www.noticiasrcn.com/internacional-america/crisis-fronteriza-y-situacion-leopoldo-lopez-temas-reunion-kerry-y-delcy)

 

Colombian President Santos says Maduro does not respond to Uruguay's mediation, will not react to "buffoonery"

Colombian President Juan Manuel Santos says his Venezuelan counterpart Nicolás Maduro is not taking telephone calls from Uruguayan President Tabaré Vázquez, who has offered to mediate in the border conflict between both Andean nations: "I spoke today to the President of Uruguay, he mentioned that President Maduro has not taken his phone call since last week, just as he did not answer me at the onset of this conflict, when we opened ways for talks". Maduro had said he would accept mediation by Brazil and Argentina. He added, in reference to Maduro's recent comments: "I will not be provoked by buffoonery". Santos went on to say that the Venezuelan revolution was deteriorating because of its own problems, and not due to external elements. "I am not destroying the Bolivarian revolution... The Bolivarian revolution is destroying itself, because of its results, not because of Colombians or the president of Colombia," he said, and added that although he respected the so-called Bolivarian revolution, he did not agree with it. "We do not believe that it is the most appropriate path to satisfy the people's needs," he noted. "We have not taken part in a plot to destroy it (the revolution)," Santos stressed. (El Universal, http://www.eluniversal.com/nacional-y-politica/150909/president-santos-the-bolivarian-revolution-is-destroying-itself; and more in Spanish:  Infolatam, http://www.infolatam.com/2015/09/09/santos-afirma-que-maduro-no-responde-llamada-de-uruguay-para-mediar-en-crisis/)

 

Colombian Foreign Minister met with UN's Ban Ki-moon, Venezuelans will follow suit

Colombian Foreign Minister María Angela Holguín has met in New York with UN Secretary General Ban Ki-moon over the border crisis with Colombia. She reported the Secretary general "understood the situation there perfectly. He had an excellent disposition and will surely now speak to Venezuela." Venezuelan President Nicolás Maduro announced his Foreign Minister, Delcy Rodríguez, is now on her way to New York to meet with Ban Ki-moon. More in Spanish: (El Nacional; http://www.el-nacional.com/; AVN; http://www.avn.info.ve/contenido/canciller-rodr%C3%ADguez-sostendr%C3%A1-reuni%C3%B3n-secretario-onu-para-tratar-tema-fronterizo)

 

UN: 20,000 Colombians have been expelled or have left Venezuela

The United Nations Office for the Coordination of Humanitarian Affairs reports that 1,467 Colombians have been expelled from Venezuela and 18,619 have left the country of their own accord due to the border crisis that arose 20 days ago. The figures, included in the latest OCHA report, are current as of Sept. 7. OCHA emphasizes that although no new expulsions have been registered in Colombia’s Norte de Santander province since Aug. 26, “in other provinces the figure continues to climb.” (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2396055&CategoryId=10718; El Universal, http://www.eluniversal.com/nacional-y-politica/150909/un-some-20000-colombians-displaced-in-border-crisis)

 

Garzón recommends bringing Venezuela-Colombia border conflict to the ICJ

A quick and immediate solution to the immigration conflict between Colombia and Venezuela could be found if the issue is addressed at the International Court of Justice (ICJ) of the United Nations, says Spanish former judge Baltasar Garzón. "Solution should be found through dialogue or international justice," said the judge in Buenos Aires. (El Universal, http://www.eluniversal.com/nacional-y-politica/150909/garzon-recommends-bringing-venezuela-colombia-border-conflict-to-the-i)

 

Brazilian envoy backs Guyana in border dispute with Venezuela

The Brazilian ambassador to Guyana has expressed support for Georgetown in its century-old dispute with neighboring Venezuela over control of the Essequibo region. “I firmly believe that in the 21st century there is no place for old territorial disputes. Guyana has the right, and I agree that the government has a duty, to seek the development of the country,” Lineu Pupo de Paula said, according to a statement released by the Guyanese government. De Paula made those comments in the presence of Guyanese President David Granger during a function at the ambassador’s residence to mark Brazil’s independence day. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2396048&CategoryId=10717; El Universal, http://www.eluniversal.com/nacional-y-politica/150909/brazil-supports-border-development-of-guyana)

 

DATANÁLISIS: People's dissatisfaction towards the government rises

Venezuelan economist and director of polling firm DATANÁLIS, Luis Vicente León, says recent economic measures implemented in Venezuela "have increased people's dissatisfaction towards the Venezuelan government." He adds that citizens .hold the government accountable when crisis is perceived. In this case, León pointed out that for some people "Maduro is to blame for the crisis, while for other people, he is not responsible for it, but he is unable to solve the problems. For this reason, given the clear decline in his popularity, (Maduro) prefers to have the public attention focused on the border." (El Universal, http://www.eluniversal.com/nacional-y-politica/150908/datanalisis-peoples-dissatisfaction-towards-the-govt-rises)

 

73% of the polled population believes Chávez erred when he appointed Nicolás Maduro as his successor, according to the most recent poll by DATINCORP. Maduro fails at every issue involving his administration. Half those polled (50%) favor a referendum to revoke his mandate. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=45405&idc=1)

 

 

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.