Currently released so far... 97115 / 251,287
Articles
Brazil
Sri Lanka
United Kingdom
Sweden
00. Editorial
United States
Latin America
Egypt
Jordan
Yemen
Thailand
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
2011/05/01
2011/05/02
2011/05/03
2011/05/04
2011/05/05
2011/05/06
2011/05/07
2011/05/09
2011/05/10
2011/05/11
2011/05/12
2011/05/13
2011/05/14
2011/05/15
2011/05/16
2011/05/17
2011/05/18
2011/05/19
2011/05/20
2011/05/21
2011/05/22
2011/05/23
2011/05/24
2011/05/25
2011/05/26
2011/05/27
2011/05/28
2011/05/29
2011/05/30
2011/05/31
2011/06/01
2011/06/02
2011/06/03
2011/06/04
2011/06/05
2011/06/06
2011/06/07
2011/06/08
2011/06/09
2011/06/10
2011/06/11
2011/06/12
2011/06/13
2011/06/14
2011/06/15
2011/06/16
2011/06/17
2011/06/18
2011/06/19
2011/06/20
2011/06/21
2011/06/22
2011/06/23
2011/06/24
2011/06/25
2011/06/26
2011/06/27
2011/06/28
2011/06/29
2011/06/30
2011/07/01
2011/07/02
2011/07/04
2011/07/05
2011/07/06
2011/07/07
2011/07/08
2011/07/10
2011/07/11
2011/07/12
2011/07/13
2011/07/14
2011/07/15
2011/07/16
2011/07/17
2011/07/18
2011/07/19
2011/07/20
2011/07/21
2011/07/22
2011/07/23
2011/07/25
2011/07/27
2011/07/28
2011/07/29
2011/07/31
2011/08/01
2011/08/02
2011/08/03
2011/08/05
2011/08/06
2011/08/07
2011/08/08
2011/08/10
2011/08/11
2011/08/12
2011/08/13
2011/08/15
2011/08/16
2011/08/17
2011/08/19
2011/08/21
2011/08/22
2011/08/23
2011/08/24
2011/08/25
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Antananarivo
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Alexandria
Consulate Adana
American Institute Taiwan, Taipei
Embasy Bonn
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Brazzaville
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangui
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Belfast
Consulate Barcelona
Embassy Cotonou
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chiang Mai
Consulate Chennai
Consulate Chengdu
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
DIR FSINFATC
Consulate Dusseldorf
Consulate Durban
Consulate Dubai
Consulate Dhahran
Embassy Guatemala
Embassy Grenada
Embassy Georgetown
Embassy Gaborone
Consulate Guayaquil
Consulate Guangzhou
Consulate Guadalajara
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Hong Kong
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kolonia
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Krakow
Consulate Kolkata
Consulate Karachi
Consulate Kaduna
Embassy Luxembourg
Embassy Lusaka
Embassy Luanda
Embassy London
Embassy Lome
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy Libreville
Embassy La Paz
Consulate Leipzig
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Mission Geneva
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Mogadishu
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maseru
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Merida
Consulate Melbourne
Consulate Matamoros
Consulate Marseille
Embassy Nouakchott
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Nuevo Laredo
Consulate Naples
Consulate Naha
Consulate Nagoya
Embassy Pristina
Embassy Pretoria
Embassy Praia
Embassy Prague
Embassy Port Of Spain
Embassy Port Moresby
Embassy Port Louis
Embassy Port Au Prince
Embassy Podgorica
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Ponta Delgada
Consulate Peshawar
REO Mosul
REO Kirkuk
REO Hillah
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Surabaya
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sapporo
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy Tirana
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
Consulate Thessaloniki
USUN New York
USMISSION USTR GENEVA
USEU Brussels
US Office Almaty
US Mission Geneva
US Mission CD Geneva
US Interests Section Havana
US Delegation, Secretary
US Delegation FEST TWO
UNVIE
UN Rome
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vientiane
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
AF
ADANA
ASEC
AFIN
AMGT
AE
AORC
AID
AR
AO
AU
ASEAN
AGOA
AFGHANISTAN
AFFAIRS
AMED
APER
ASECARP
APEC
AEMR
AS
AA
ANET
AFLU
ABLD
AL
ASUP
AJ
APECO
AMER
ABUD
AODE
AM
AFSN
AESC
AND
AG
ALOW
AROC
AVIANFLU
ATRN
ACOA
AEGR
AMGMT
AADP
AFSI
ACABQ
APRM
AZ
AIDS
ASE
AGAO
ADCO
ABDALLAH
ARF
AIDAC
ACOTA
ASCH
AC
ASEG
AGR
ACS
AMCHAMS
AN
AMIA
ASIG
ADPM
ADB
ANARCHISTS
ALOWAR
ARM
AUC
AINF
AINT
AORG
AY
AVIAN
AMEDCASCKFLO
AK
ARSO
ARABBL
ASO
ANTITERRORISM
ARABL
AOWC
AGRICULTURE
ALJAZEERA
AMTC
AFINM
AOCR
ABER
ARR
AFPK
ASSEMBLY
ASSK
AZE
AORCYM
AINR
AGMT
AEC
ACKM
APRC
AIN
ASCC
AFPREL
ASED
APERTH
ASFC
ASECTH
AFSA
AOMS
AORCO
ANTXON
ARC
AFAF
ADIP
AIAG
AFARI
AEMED
AORL
AX
ASECAF
AOPC
ASECAFIN
AFZAL
APCS
AMB
AGUIRRE
AEMRASECCASCKFLOMARRPRELPINRAMGTJMXL
AIT
ARCH
AMEX
ALI
AQ
ATFN
AMBASSADOR
AORCD
AVIATION
ARAS
AINFCY
ACBAQ
AOPR
AREP
ALEXANDER
ATRD
AEIR
AOIC
ABLDG
ASEX
AFR
ASCE
ATRA
ASEK
AER
ALOUNI
AMCT
AVERY
APR
AMAT
AEMRS
ASPA
AFU
AMG
ATPDEA
ALL
AECL
ACAO
ASECKFRDCVISKIRFPHUMSMIGEG
AORD
AFL
AME
ADM
ASECPHUM
AGIT
ABT
ASECVE
AGUILAR
AT
ABMC
ALZUGUREN
ANGEL
ASR
ANTONIO
BMGT
BEXP
BM
BG
BL
BA
BR
BTA
BO
BY
BBSR
BLUE
BK
BF
BTIO
BELLVIEW
BE
BU
BN
BH
BD
BC
BTC
BILAT
BT
BX
BRUSSELS
BP
BB
BRPA
BUSH
BURMA
BMENA
BESP
BIT
BBG
BGD
BMEAID
BAGHDAD
BEN
BIO
BMOT
BWC
BLUNT
BURNS
BUT
BGMT
BAIO
BCW
BOEHNER
BFIF
BOL
BASHAR
BIMSTEC
BOU
BIDEN
BZ
BFIN
BTRA
BI
BHUM
BOIKO
BERARDUCCI
BOUCHAIB
BORDER
BEXPC
BTIU
BTT
BIOS
BEXB
BGPGOV
BOND
BLR
CE
CG
CH
CVR
CASC
CU
CI
CD
CO
CDG
CB
CJAN
CPAS
COM
CVIS
CMGT
CT
CENTCOM
CNARC
CTERR
COUNTER
CHIEF
CDC
CTR
CBW
COUNTRY
CLEARANCE
CY
CA
CM
CS
CWC
CN
CITES
CF
CWG
CIVS
CFIS
CASCC
CROATIA
CONS
COUNTERTERRORISM
CASA
COE
CJ
CHR
CODEL
CR
CBC
CACS
CHERTOFF
CAS
CONTROL
CONDITIONS
CONDOLEEZZA
CITEL
CV
CLINTON
CHG
CZ
CON
CTBT
CEN
CRIMES
COMMERCE
CLOK
CRISTINA
CFED
CARC
CND
CTM
CARICOM
COUNTRYCLEARANCE
CBTH
CHINA
CSW
CICTE
CJUS
CYPRUS
CW
CAMBODIA
CENSUS
CIDA
CRIME
CBG
CBE
CMGMT
CAIO
CEC
CARSON
CPCTC
CEDAW
COMESA
CVIA
CWCM
CEA
COSI
CAPC
CGEN
COPUOS
CGOPRC
COETRD
CKGR
CFE
CQ
CITT
CIC
CARIB
CVIC
CLO
CAFTA
CVISU
CHRISTOPHER
CACM
CIAT
CDB
CIS
CUL
CHAO
CNC
CL
CSEP
COMMAND
CENTER
COL
CAN
CAJC
CUIS
CONSULAR
CLMT
CIA
CBSA
CEUDA
CAC
CROS
CIO
CPUOS
CKOR
CVPR
CONG
CONTROLS
CEPTER
CVISCMGTCASCKOCIASECPHUMSMIGKIRF
CDCE
DPOL
DEMARCHE
DHS
DR
DA
DISENGAGEMENT
DEMOCRATIC
DEFENSE
DJ
DY
DARFUR
DHRF
DEA
DTRO
DPRK
DO
DARFR
DOC
DRL
DK
DOJ
DTRA
DOMESTIC
DAC
DOD
DEAX
DIEZ
DEOC
DELTAVIOLENCE
DCOM
DMINE
DRC
DCG
DPKO
DOMESTICPOLITICS
DE
DB
DOT
DEPT
DOE
DHLAKAMA
DHSX
DS
DKEM
DAO
DCM
DANIEL
DEM
DAVID
DCRM
ETRD
EAGR
ETTC
EAID
ECON
EFIN
ECIN
EINV
ELAB
EAIR
ENRG
EPET
EWWT
ECPS
EIND
EMIN
ELTN
EC
ETMIN
EUC
EZ
ET
ELECTIONS
ENVR
EU
EUN
EG
EINT
ER
ECONOMICS
ES
EMS
ENIV
EEB
EN
ECE
ECOSOC
EK
ENVIRONMENT
EFIS
EI
EWT
ENGRD
ECPSN
EXIM
EIAD
ERIN
ECPC
EDEV
ENGY
ECTRD
EPA
ESTH
ECCT
EINVECON
ENGR
ERTD
EUR
EAP
EWWC
ELTD
EL
EXIMOPIC
EXTERNAL
ETRDEC
ESCAP
ECO
EGAD
ELNT
ECONOMIC
ENV
ETRN
EIAR
EUMEM
ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID
EREL
ECOM
ECONETRDEAGRJA
ETCC
ETRG
ECONOMY
EMED
ETR
ENERG
EITC
EFINOECD
EURM
EENG
ERA
EXPORT
ENRD
ECONEINVETRDEFINELABETRDKTDBPGOVOPIC
EGEN
EBRD
EVIN
ETRAD
ECOWAS
EFTA
ECONETRDBESPAR
EGOVSY
EPIN
EID
ECONENRG
EDRC
ESENV
ETT
EB
ENER
ELTNSNAR
ECHEVARRIA
ETRC
EPIT
EDUC
ESA
EFI
ENRGY
ESCI
EE
EAIDXMXAXBXFFR
EETC
ECIP
EIAID
EIVN
EBEXP
ESTN
EING
EGOV
ETRA
EPETEIND
ELAN
ETRDGK
EAIDRW
ETRDEINVECINPGOVCS
EPEC
ENVI
ELN
EAG
EPCS
EPRT
EPTED
ETRB
EUM
EAIDS
EFIC
EFINECONEAIDUNGAGM
EAIDAR
ESF
EIDN
ELAM
EDU
EV
EAIDAF
ECN
EDA
EXBS
EINTECPS
ENRGTRGYETRDBEXPBTIOSZ
EPREL
EAC
EINVEFIN
ETA
EAGER
EINDIR
ECA
ECLAC
ELAP
EITI
EUCOM
ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID
EARG
ELDIN
EINVKSCA
ENNP
EFINECONCS
EFINTS
ECCP
ETC
EAIRASECCASCID
EINN
ETRP
EAIDNI
EFQ
ECOQKPKO
EGPHUM
EBUD
ECONEINVEFINPGOVIZ
ENERGY
ELB
EINDETRD
EMI
ECONEFIN
EIB
EURN
ETRDEINVTINTCS
EIN
EFIM
ETIO
ELAINE
EMN
EATO
EWTR
EIPR
EINVETC
ETTD
ETDR
EIQ
ECONCS
EPPD
ENRGIZ
EISL
ESPINOSA
ELEC
EAIG
ESLCO
EUREM
ENTG
ERD
EINVECONSENVCSJA
EEPET
EUNCH
ECINECONCS
ETRO
ETRDECONWTOCS
ECUN
EFND
EPECO
EAIRECONRP
ERGR
ETRDPGOV
ECPN
ENRGMO
EPWR
EET
EAIS
EAGRE
EDUARDO
EAGRRP
EAIDPHUMPRELUG
EICN
ECONQH
EVN
EGHG
ELBR
EINF
EAIDHO
EENV
ETEX
ERNG
ED
FR
FREEDOM
FINREF
FJ
FI
FRELIMO
FOREIGN
FAA
FETHI
FAS
FTAA
FRB
FAO
FCS
FINANCE
FWS
FTA
FEMA
FDA
FLU
FRANCISCO
FBI
FORCE
FO
FARC
FK
FT
FCSC
FAC
FM
FMGT
FINV
FCSCEG
FARM
FERNANDO
FINR
FIN
FINE
FIR
FDIC
FOR
FOI
FCUL
FKLU
FMLN
FISO
FIXED
GM
GMUS
GG
GR
GE
GAZA
GT
GH
GZ
GJ
GLOBAL
GV
GABY
GOI
GA
GCC
GB
GY
GATT
GC
GUAM
GEORGE
GTIP
GOV
GOMEZ
GUTIERREZ
GL
GKGIC
GF
GU
GWI
GARCIA
GTMO
GN
GANGS
GIPNC
GAERC
GREGG
GUILLERMO
GASPAR
GERARD
GI
HK
HR
HUMANR
HUMAN
HO
HA
HUMANRIGHTS
HU
HHS
HIV
HUM
HRKAWC
HILLEN
HILLARY
HDP
HUMRIT
HSTC
HUMANITARIAN
HCOPIL
HADLEY
HURI
HL
HRETRD
HOURANI
HG
HARRIET
HESHAM
HI
HNCHR
HARRY
HRECON
HRC
HOSTAGES
HEBRON
HUMOR
HSWG
HYMPSK
HECTOR
HN
HYDE
HUD
HRPGOV
HIGHLIGHTS
ID
ILC
IS
IZ
ICAO
IMO
ITU
IR
IAEA
ICRC
IPROP
IT
IBRD
ISRAELI
IRAQI
ISSUES
ITRA
IV
IO
IGAD
IRAQ
IN
IMF
ICTR
ISCON
IADB
IDB
IEA
INR
IWC
ICCAT
ILO
INMARSAT
IOM
ICJ
IQ
ISPA
ITRD
IPR
INTELSAT
ISN
IAHRC
INTERNAL
IFAD
IICA
IHO
IRAN
IL
IRCE
IC
INTELLECTUAL
IRM
IE
ICTY
IDLI
IFO
ISCA
INF
INL
ISRAEL
INV
IBB
INFLUENZA
ISPL
ITER
ITIA
INRA
ISAF
IACHR
INTERPOL
IFR
IRS
INRB
IEF
ISAAC
ICC
INDO
IIP
IATTC
INAUGURATION
IND
INS
IZPREL
IACI
IEFIN
INNP
ILAB
IA
IMTS
ITALY
ITALIAN
IFIN
IRAJ
IX
ICG
IF
ITPHUM
ITA
IP
IACW
IK
IUCN
IZEAID
IRPE
IDA
ISLAMISTS
ITF
INRO
IBET
IDP
IRC
ISO
ICES
IRMO
ITPGOV
IQNV
IMSO
IRDB
IMET
INCB
IFRC
JA
JO
JP
JM
JCIC
JOHN
JE
JEFFERY
JS
JUS
JN
JOHNNIE
JAMES
JKUS
JOSEPH
JML
JAWAD
JSRP
JIMENEZ
JOSE
JKJUS
JK
JAPAN
KMDR
KPAO
KPKO
KJUS
KCRM
KGHG
KFRD
KWMN
KDEM
KTFN
KHIV
KGIC
KIDE
KSCA
KNNP
KHUM
KIPR
KSUM
KISL
KIRF
KCOR
KRCM
KPAL
KWBG
KN
KS
KOMC
KSEP
KFLU
KPWR
KTIA
KSEO
KMPI
KHLS
KICC
KSTH
KMCA
KVPR
KPRM
KE
KU
KZ
KFLO
KSAF
KTIP
KTEX
KBCT
KOCI
KOLY
KOR
KAWC
KACT
KUNR
KTDB
KSTC
KLIG
KSKN
KNN
KCFE
KCIP
KGHA
KHDP
KPOW
KUNC
KDRL
KV
KPREL
KCRS
KPOL
KRVC
KRIM
KGIT
KWIR
KT
KIRC
KOMO
KRFD
KUWAIT
KG
KFIN
KSCI
KTFIN
KFTN
KGOV
KPRV
KSAC
KGIV
KCRIM
KPIR
KSOC
KBIO
KW
KGLB
KMWN
KPO
KFSC
KSEAO
KSTCPL
KSI
KPRP
KREC
KFPC
KUNH
KCSA
KMRS
KNDP
KR
KICCPUR
KPPAO
KCSY
KTBT
KCIS
KNEP
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KNNB
KGCC
KINR
KPOP
KMFO
KENV
KNAR
KVIR
KDRG
KDMR
KFCE
KNAO
KDEN
KGCN
KICA
KIMMITT
KMCC
KLFU
KMSG
KSEC
KUM
KCUL
KMNP
KSMT
KCOM
KOMCSG
KSPR
KPMI
KRAD
KIND
KCRP
KAUST
KWAWC
KTER
KCHG
KRDP
KPAS
KITA
KTSC
KPAOPREL
KWGB
KIRP
KJUST
KMIG
KLAB
KTFR
KSEI
KSTT
KAPO
KSTS
KLSO
KWNN
KPOA
KHSA
KNPP
KPAONZ
KBTS
KWWW
KY
KJRE
KPAOKMDRKE
KCRCM
KSCS
KWMNCI
KESO
KWUN
KPLS
KIIP
KEDEM
KPAOY
KRIF
KGICKS
KREF
KTRD
KFRDSOCIRO
KTAO
KJU
KWMNPHUMPRELKPAOZW
KEN
KO
KNEI
KEMR
KKIV
KEAI
KWAC
KRCIM
KWCI
KFIU
KWIC
KCORR
KOMS
KNNO
KPAI
KBWG
KTTB
KTBD
KTIALG
KILS
KFEM
KTDM
KESS
KNUC
KPA
KOMCCO
KCEM
KRCS
KWBGSY
KNPPIS
KNNPMNUC
KWN
KERG
KLTN
KALM
KCCP
KSUMPHUM
KREL
KGH
KLIP
KTLA
KAWK
KWMM
KVRP
KVRC
KAID
KSLG
KDEMK
KX
KIF
KNPR
KCFC
KFTFN
KTFM
KPDD
KCERS
KMOC
KDEMAF
KMEPI
KEMS
KDRM
KEPREL
KBTR
KEDU
KNP
KIRL
KNNR
KMPT
KISLPINR
KTPN
KA
KJUSTH
KPIN
KDEV
KTDD
KAKA
KFRP
KWNM
KTSD
KINL
KJUSKUNR
KWWMN
KECF
KWBC
KPRO
KVBL
KOM
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KEDM
KFLD
KLPM
KRGY
KNNF
KICR
KIFR
KM
KWMNCS
KAWS
KLAP
KPAK
KDDG
KCGC
KID
KNSD
KMPF
KPFO
KDP
KCMR
KRMS
KNPT
KNNNP
KTIAPARM
KDTB
KNUP
KPGOV
KNAP
KNNC
KUK
KSRE
KREISLER
KIVP
KQ
KTIAEUN
KPALAOIS
KRM
KISLAO
KWM
KFLOA
LE
LU
LH
LA
LG
LO
LY
LANTERN
LI
LABOR
LORAN
LTTE
LT
LAS
LAB
LAW
LVPR
LARREA
LEBIK
LAURA
LS
LOTT
LOVE
LR
LEON
LAVIN
LGAT
LV
LAOS
LOG
LN
LB
MOPS
MO
MARR
ML
MASS
MZ
MR
MNUC
MX
MV
MCC
MY
MEDIA
MTCRE
MG
MCAP
MOPPS
MP
MI
MK
MC
MD
MA
MU
MASC
MW
MT
MEPP
MN
MTCR
MH
MEPI
MIL
MNUCPTEREZ
MMAR
MICHAEL
MUNC
MDC
MPOS
MONUC
MAR
MGMT
MAS
MEPN
MENDIETA
MARIA
MONTENEGRO
MOOPS
MSG
MARITIME
MURRAY
MUKASEY
MOTO
MCA
MFO
MEX
MRSEC
MMED
MACP
MAAR
MINUSTAH
MCCONNELL
MAPP
MGT
MARQUEZ
MANUEL
MNUR
MCCAIN
MF
MOHAMMAD
MOHAMED
MNU
MFA
MILITANTS
MINORITIES
MTS
MLS
MILI
MIAH
MEETINGS
MERCOSUR
MED
MARAD
MNVC
MINURSO
MNUCUN
MIK
MARK
MBM
MPP
MILITARY
MAPS
MNUK
MILA
MTRRE
MACEDONIA
MICHEL
MASSMNUC
MUCN
MQADHAFI
MPS
MARRGH
MRCRE
MTRE
MORALES
MAP
MCTRE
MHUC
MOPSGRPARM
MOROCCO
MCAPS
NL
NU
NS
NI
NPT
NATO
NO
NG
NATEU
NSF
NZ
NAS
NP
NDP
NLD
NGO
NEPAD
NAFTA
NASA
NEA
NGUYEN
NIH
NK
NIPP
NONE
NR
NANCY
NEGROPONTE
NRR
NERG
NSSP
NSG
NSFO
NE
NATSIOS
NFSO
NATIONAL
NTDB
NT
NCD
NTSB
NRC
NELSON
NAM
NH
NPG
NEC
NSC
NFATC
NMFS
NATOIRAQ
NAR
NZUS
NARC
NCCC
NA
NC
NEW
NRG
NUIN
NOVO
NATOPREL
NEY
NV
NICHOLAS
NPA
NW
NARCOTICS
NORAD
NOAA
NON
NTTC
NKNNP
NMNUC
NUMBERING
ODIP
OIIP
OPRC
OSCE
OREP
OTRA
OPET
OSCI
OVIP
OECD
OCII
OUALI
OPDC
OEXC
OFPD
OPIC
OFDP
OPCW
OECV
OAS
OM
OMIG
ODAG
OPREP
ORA
OIC
OEXCSCULKPAO
OIG
OASS
OFFICIALS
ORTA
OSAC
OIL
OIE
OEXP
OPEC
OPDAT
OMS
OES
OHI
OMAR
OCRA
OFSO
OCBD
OSTA
OAO
ONA
OTP
ORC
OAU
OXEC
OA
ODPC
OPDP
OVIPPRELUNGANU
OASC
OSHA
OPCD
OTR
OPPI
OPCR
OF
OFDPQIS
OSIC
OHUM
OSTRA
OASCC
OBSP
OFDA
OPICEAGR
OIM
OGAC
OTA
OTRAORP
OPPC
OESC
OCEA
OVP
ON
OPAD
OTAR
OCS
ODC
OTRD
OCED
OSD
ORUE
OREG
PHUM
PINR
PTER
PGOV
PREL
PREF
PL
PM
PHSA
PE
PARM
PINS
PK
PUNE
PO
PALESTINIAN
PU
PBTS
PROP
PTBS
POL
POLI
PA
PGOVZI
POLMIL
POLITICAL
PARTIES
POLM
PD
POLITICS
POLICY
PAS
PMIL
PINT
PNAT
PV
PKO
PPOL
PERSONS
PING
PBIO
PH
PETR
PARMS
PRES
PCON
PETERS
PRELBR
PT
PLAB
PP
PAK
PDEM
PKPA
PSOCI
PF
PLO
PTERM
PJUS
PSOE
PELOSI
PROPERTY
PGOVPREL
PARP
PRL
PNIR
PHUMKPAL
PG
PREZ
PGIC
PBOV
PAO
PKK
PROV
PHSAK
PHUMPREL
PROTECTION
PGOVBL
PSI
PRELPK
PGOVENRG
PUM
PRELKPKO
PATTY
PSOC
PRIVATIZATION
PRELSP
PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ
PMIG
PREC
PAIGH
PROG
PSHA
PARK
PETER
POG
PHUS
PPREL
PS
PTERPREL
PRELPGOV
POV
PKPO
PGOVECON
POUS
PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN
PWBG
PMAR
PREM
PAR
PNR
PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO
PARMIR
PGOVGM
PHUH
PARTM
PN
PRE
PTE
PY
POLUN
PPEL
PDOV
PGOVSOCI
PIRF
PGOVPM
PBST
PRELEVU
PGOR
PBTSRU
PRM
PRELKPAOIZ
PGVO
PERL
PGOC
PAGR
PMIN
PHUMR
PVIP
PPD
PGV
PRAM
PINL
PKPAL
PTERE
PGOF
PINO
PHAS
PODC
PRHUM
PHUMA
PREO
PPA
PEPFAR
PGO
PRGOV
PAC
PRESL
PORG
PKFK
PEPR
PRELP
PREFA
PNG
PGOVPHUMKPAO
PRELECON
PINOCHET
PFOR
PGOVLO
PHUMBA
PRELC
PREK
PHUME
PHJM
POLINT
PGOVPZ
PGOVKCRM
PGOVE
PHALANAGE
PARTY
PECON
PEACE
PROCESS
PLN
PRELSW
PAHO
PEDRO
PRELA
PASS
PPAO
PGPV
PNUM
PCUL
PGGV
PSA
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PGIV
PRFE
POGOV
PEL
PBT
PAMQ
PINF
PSEPC
POSTS
PHUMPGOV
PVOV
PHSAPREL
PROLIFERATION
PENA
PRELTBIOBA
PIN
PRELL
PGOVPTER
PHAM
PHYTRP
PTEL
PTERPGOV
PHARM
PROTESTS
PRELAF
PKBL
PRELKPAO
PKNP
PARMP
PHUML
PFOV
PERM
PUOS
PRELGOV
PHUMPTER
PARAGRAPH
PERURENA
PBTSEWWT
PCI
PETROL
PINSO
PINSCE
PQL
PEREZ
PBS
RS
REFUGEES
RW
RP
RELFREE
RO
REGIONAL
RIGHTS
REACTION
REPORT
RU
RENAMO
RIGHTSPOLMIL
REFORM
RM
REFUGEE
REL
RELATIONS
ROW
RREL
REGION
RATIFICATION
RBI
RICE
ROOD
RODENAS
RUIZ
RODHAM
ROBERT
RGY
ROY
REUBEN
RELIGIOUS
RUEHZO
RODRIGUEZ
RUEUN
RELAM
RSP
RF
RSO
RCMP
REO
ROSS
RPTS
RENE
REID
RUPREL
RMA
RI
REMON
RPEL
RFE
RFIN
RA
RAFAEL
RAY
RUS
RPREL
ROBERTG
RECIN
RAMONTEIJELO
SNAR
SP
SN
SMIG
SL
SOCI
SU
SG
SF
SENV
SZ
SOE
SCUL
SY
SO
SR
SYR
SE
SA
SW
SIPDIS
SCIENCE
SADC
SI
SCI
SOCIETY
SC
SAARC
STR
SECRETARY
SANC
SSH
ST
SNA
SGWI
SEP
SOCIS
SETTLEMENTS
SPECIALIST
SK
SHUM
START
STET
SCVL
SREF
SCHUL
SCUIL
SYRIA
SECURITY
SPCE
SYAI
SMIL
SOWGC
STEPHEN
SNRV
SKCA
SENSITIVE
SECI
SNAP
SPP
SCUD
SOM
SPECI
SMIGBG
SENC
SCRM
SGNV
SECTOR
SENVEAGREAIDTBIOECONSOCIXR
SENVSXE
SASIAIN
SACU
SENVSPL
SWMN
STEINBERG
SOPN
SOCR
SCOI
SCRS
SILVASANDE
SWE
SARS
SNARIZ
SUDAN
SENVQGR
SM
SNARKTFN
SAAD
SD
SAN
SIPRNET
STATE
SENS
SUBJECT
SFNV
SECSTATE
SSA
SPCVIS
SOI
SOFA
SCULKPAOECONTU
SPTER
SKSAF
SENVKGHG
SHI
SEVN
SANR
SPSTATE
SMITH
SCOM
SH
SNARCS
SNARN
SIPRS
SNARM
SIPDI
SCPR
SNIG
SELAB
SULLIVAN
SENVENV
SECDEF
SOLIC
SOIC
SPAS
SASC
SOSI
SEC
SEN
SENVCASCEAIDID
TU
TH
TW
TSPA
TRGY
TPHY
TBIO
TIFA
TS
TZ
TX
TSPL
TT
TK
TC
TINT
TERFIN
TERRORISM
TIP
TURKEY
TI
TECHNOLOGY
TNGD
TRSY
TRAFFICKING
TOPEC
TPSL
TP
TD
TR
TA
TIO
TREATY
TO
THPY
TECH
TRADE
TPSA
TG
TAGS
TF
TRAD
THKSJA
TVBIO
TNDG
TN
TBIOZK
TWI
TV
TWL
TRT
TWRO
TSRY
TTPGOV
TAUSCHER
TRBY
TRBIO
TL
TPKO
TIA
TGRY
TSPAM
TREL
TNAR
TBI
TFIN
TPHYPA
TWCH
THOMMA
THOMAS
TERROR
TRY
TBID
TPP
TE
THANH
TJ
TBKIO
UNGA
USUN
UN
UG
UNSC
UK
UP
US
UNCTAD
UNVIE
UNHRC
USTR
UNAMA
UNCRIME
UNESCO
UV
UNDP
UNHCR
UNCSD
UNCHR
UZ
USAID
UNEP
UNO
UNPUOS
UY
UNDC
UNCITRAL
UNAUS
UNCND
UA
UNMIK
USTDA
USEU
USDA
UNICEF
UR
UNFICYP
USNC
USTRRP
UNODC
UNRWA
UNOMIG
USTRPS
USAU
USCC
UNEF
UNGAPL
UNFPA
UNSCE
USSC
UGA
UEU
UNMIC
UNTAC
UNION
UNCLASSIFIED
USPS
UNA
UMIK
USOAS
UNMOVIC
UNFA
UNAIDS
UNCHC
USGS
UNSE
UNRCR
UNTERR
USG
UE
UAE
UNWRA
UNCSW
UNSCR
UNCHS
UNDESCO
UNPAR
UNC
UB
UNSCS
UKXG
UNGACG
UNREST
UNHR
USPTO
UNFCYP
USCG
UNIDROIT
UNSCD
UPU
UNBRO
UNECE
USTRUWR
UNCC
UNESCOSCULPRELPHUMKPALCUIRXFVEKV
VM
VE
VT
VETTING
VN
VZ
VIS
VC
VTPREL
VIP
VTEAID
VTEG
VOA
VA
VTIZ
VANG
VISIT
VO
VENZ
VAT
VI
VEPREL
VEN
WFP
WTO
WHO
WTRO
WBG
WMO
WIPO
WA
WI
WSIS
WHA
WCL
WE
WMN
WEBZ
WS
WAR
WZ
WMD
WW
WILLIAM
WEET
WAEMU
WM
WWBG
WWT
WWARD
WITH
WMDT
WTRQ
WCO
WEU
WALTER
WRTO
WB
WHTI
WBEG
WCI
WEF
WAKI
WHOA
WGC
Browse by classification
Community resources
courage is contagious
Viewing cable 05CARACAS790, 2005 INVESTMENT CLIMATE STATEMENT FOR VENEZUELA
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #05CARACAS790.
| Reference ID | Created | Released | Classification | Origin |
|---|---|---|---|---|
| 05CARACAS790 | 2005-03-16 21:19 | 2011-08-24 01:00 | UNCLASSIFIED | Embassy Caracas |
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS CARACAS 000790
SIPDIS
STATE FOR EB/IFD/OIA
STATE PLEASE PASS TO USTR
TREASURY FOR OASIA-GIANLUCA SIGNORELLI
HQ USSOUTHCOM FOR POLAD
E.O. 12958: N/A
TAGS: ECON KTDB ETRD PGOV VE OPIC USTR
SUBJECT: 2005 INVESTMENT CLIMATE STATEMENT FOR VENEZUELA
REF: 04 STATE 250356
¶1. (U) Per Reftel, the 2005 Investment Climate Statement for
Venezuela is presented below.
¶2. (U)
2005 Investment Climate Statement for Venezuela
Contents
¶A. Openness to Foreign Investment
A.1 The New Constitution
A.2 Legal Framework: Decree 2095
A.3 Limitations under Decree 2095
A.4 Areas Covered by Special Laws
A.5 Hydrocarbons
A.6 Natural gas
A.7 Electric Power
A.8 Domestic Retail Fuels Market
A.9 Mining
A.10 Telecommunications
A.11 Banking
A.12 Insurance
A.13 Privatization
A.14 Capital Outflow Policy
¶B. Conversion and Transfer Policies
¶C. Expropriation and Compensation
¶D. Dispute Settlement
¶E. Investment Incentives and Performance Requirements
E.1 Investment Incentives
E.2 Performance Requirements
¶F. Right to Private Ownership and Establishment
¶G. Protection of Property Rights
G.1 Real Property Rights
G.2 Intellectual Property Rights
G.3 Patents and Trademarks
G.4 Copyrights
¶H. Transparency of the Regulatory System
H.1 Legal Environment
H.2 Tax Treatment of Foreign-Owned Firms
¶I. Efficient Capital Markets and Portfolio Investment
I.1 Capital Markets
I.2 Credit Markets
¶J. Political Violence
¶K. Corruption
¶L. Bilateral Investment Agreements
¶M. OPIC and Other Investment Insurance Programs
¶N. Labor
¶O. Foreign Trade Zones/Free Ports
¶P. Foreign Direct Investment
Statement
---------------------------------
¶A. Openness to Foreign Investment
---------------------------------
Venezuela officially encourages foreign investment and
provides equal treatment to local and foreign companies
though the overall environment is in fact considerably less
welcoming. Capital repatriation is allowed (subject to
exchange control restrictions described below) and there are
few formal restrictions on investments except for several
sectors that are reserved to the State or Venezuelan
nationals such as oil production, and hydropower generation
(with some exceptions).
Venezuela's economic performance had been negative for
several consecutive years until 2004 when the economy showed
sharp growth, though admittedly from a much lower base. GDP
in 2004 expanded by 17.2 percent. Considering, however, that
real GDP decreased by 7.6 percent in 2003 and by 8.9 percent
in 2002, a large percentage of the strong expansion can be
attributed more to the lower starting point rather than to
organic growth. Inflation for 2004 was 19.2 percent and is
expected to reach 15 percent in 2005. A strong recovery in
global oil prices, increased tax revenue collections, and a
strong overall economic recovery have been positive
developments.
Statements by President Hugo Chavez and other Venezuelan
officials about the need to adopt a new non-capitalist
economic model (what President Chavez calls "Socialism of the
21st Century"), the takeover by individuals of some rural
lands and an aggressive adoption of a "land reform" program
at the state and national levels, the passage of legislation
which has expanded the Supreme Court, with the subsequent
appointment of judges on what observers consider a political
basis rather than merit, and a sudden shift in petroleum
royalty policies have been negative developments. The
Venezuelan government has also sought to promote an
increasing state presence in areas of the economy previously
left to private enterprise. The most prominent is its
"Mercal" chain of food stores aimed at low income
Venezuelans, which is supplied by state purchases of
commodities. Other areas that the Venezuelan state is
reentering include civil aviation, telecommunications, cement
production, paper manufacturing, and sugar refining.
In early 2003, President Chavez created an Exchange
Administration Board (CADIVI) to regulate the purchase and
sale of foreign currency. At first, CADIVI was unable to
process foreign currency requests efficiently and was only
supplying currency to about 15-20 percent of approved
authorizations. Over time, the system has improved, and the
supply of foreign currency reached a level of approximately
$15 billion in 2004, or 55 percent of approved
authorizations. A number of goods have also been added to
the list of imports eligible for foreign exchange including
intangibles such as services and the repatriation of capital,
which totaled $1.5 billion at the end of the third quarter.
There continue to be delays with pre-inspection companies
thereby increasing storage costs. Although the number of
approvals has increased sharply, the backlog in liquidations
puts significant constraints on imports which accounted for
68.5 percent of requests, followed by private foreign debt
with 12.5 percent and foreign investments with 8.6 percent.
Exchange control authorities have repeatedly said that the
exchange control system will be eased but will remain a
permanent long-term mechanism. As of now, the system remains
highly discretionary and subject to sudden changes in its
application.
In terms of direct foreign investment, a number of projects
are under development or in pre-engineering stages, mainly in
oil and gas or large infrastructure projects. The former are
governed by either the Hydrocarbons or Gaseous Hydrocarbons
laws (see section A5). These involve varying kinds of
contractual relationships with state oil corporation
Petrleos de Venezuela (PDVSA). As regards the latter, the
preferred venture scheme has become sovereign deals or
contracts between state corporations. Power, several road
and railroad projects and the expansion of some production
facilities for basic industry seem to be the main areas where
there are projects in the pipeline. However, most of these
projects have very little if any private participation at all.
-- A.1 The 1999 Constitution
The Venezuelan Constitution of 1999 treats private capital
investment as a means of promoting the development of the
national economy. Article No. 299 of the Constitution
recognizes private enterprise as a factor for creating
sources of employment and local added value, as well as
raising the standard of living of the population, within a
framework of free competition. The Constitution reserves
certain strategic sectors for the State such as oil activity
and hydropower generation.
Article 301 of the Constitution adopts international
standards for the treatment of private capital, with equal
treatment of local and foreign capital. As well, as a member
of the Andean Community, Venezuela has accepted the
application of the Andean Decisions, although examples can be
found of non-compliance.
-- A.2 Legal Framework: Decree 2095
Decree 2095 (1992) establishes the legal framework for
foreign investment in Venezuela. This Decree implemented
Andean Pact Decisions 291 and 292 and significantly expanded
foreign investment opportunities in Venezuela by lifting most
restrictions on foreign participation in the economy. Most
sectors of Venezuela's economy, except those specifically
noted, are open to foreign participation. Article 13 of the
Decree explicitly guarantees that foreign investors will have
the same rights and obligations as national investors "except
as provided for in special laws and limitations contained in
this Decree."
Under Decree 2095, foreign investors need only register with
the Superintendent of Foreign Investment (SIEX) within 60
days of the date a new investment is made. (The exception to
this general rule is the Security and Defense Law, which
provides that foreigners cannot own property in certain
border regions or near military installations and basic
industries without written authorization of the President
through the Ministry of Defense.) Foreign companies may
generally open offices in Venezuela without prior
authorization from SIEX as long as they do not engage in
certain sales or business activities that would require
registration. No prior authorization is required for
technical assistance, transfer of technology, or
trademark-use agreements, provided they are not contrary to
existing legal provisions. Shares of foreign companies may
be sold publicly.
Decree 2095 also guarantees foreign investors the right to
repatriate 100 percent of profits and capital, including
proceeds from the sale of shares or liquidation of the
company, and allows for unrestricted reinvestment of profits.
Foreign exchange is, however, still subject to government
exchange controls.
Joint ventures and wholly owned subsidiaries of foreign
companies are treated in the same way as Venezuelan firms.
Only registration of the venture with SIEX is required.
Decree 2095 imposes no limits on the amount of dividends,
reinvestment, or repatriation. (The foreign exchange regime,
however, has significantly affected such transfers.)
-- A.3 Limitations under Decree 2095
Decree 2095 reserves three areas of economic activity to
"national companies": television, newspapers, and
professional services that are regulated by national laws. A
"national company" (as defined in Article 1 of Andean Pact
Decision 291) is a company in which Venezuelan nationals hold
more than 80 percent of the equity. Foreign capital is
therefore restricted to a maximum of 19.9 percent in
enterprises engaged in radio, television, Spanish-language
newspapers, and professional services subject to licensing
legislation (e.g., law, architecture, engineering, medicine,
veterinary medicine, dentistry, economics, public accounting,
psychology, pharmacy, and management). Foreign professionals
are free to work in Venezuela without restriction, but must
first revalidate their title at a Venezuelan university.
This is not required for consulting services under contract
for a specific project. The Investment Promotion and
Protection Law of October 1999 maintained these exceptions
and reserved sectors.
-- A.4 Areas Covered by Special Laws
The sectors that are regulated by "special laws" that
supplement the Constitution include hydrocarbons, natural
gas, iron ore, mining, telecommunications, broadcasting,
banking, mortgages, and insurance.
-- A.5 Hydrocarbons
Venezuela's vast reserves make oil and gas is leading sector
in terms of attracting foreign investment. However, foreign
investment is restricted in the petroleum sector. The 2001
Hydrocarbons Law reserves exploration and production, as well
as "gathering" and initial transportation and storage of
hydrocarbons to the state. Under this regime, primary
activities must be carried out directly by the state, by a
100 percent state-owned company such as Petroleos de
Venezuela (PDVSA), or by a joint venture company with more
than 50 percent of the shares held by the state. The 2001
law does, however, leave new refining ventures open to
private investment as well as commercialization activities,
under a license and permit regime.
The Hydrocarbons Law mandated an increase in royalty payments
from 16.67 percent to 30 percent, with the possibility of a
reduction to 20 percent for heavy crude projects. It also
stipulated that any arbitration proceedings would henceforth
be in domestic not international venues. No projects have
yet been negotiated under this law.
The Hydrocarbons Law did not specifically grandfather
contracts executed under earlier legislation: i.e., the 33
operating service contracts awarded for "marginal" or
inactive oilfields in three rounds in the 1990's; the
exploration and production profit-sharing agreements awarded
in 1996; and the four so-called "Strategic Associations,"
joint ventures formed in the 1990's to extract and upgrade
Venezuela's extra heavy oil. The Venezuelan Government
argued in 2001 that no such provision was necessary because
retroactive application of legislative provisions is
forbidden by constitutional mandate. In October 2004, the
Government unilaterally eliminated a nine-year royalty
holiday ceded to the Strategic Associations, arguing that
this was allowable under earlier hydrocarbons legislation.
The oil sector suffered two years of negative growth in 2002
and 2003 with a 14.2 percent contraction in 2002 and 2.1
percent in 2003 The sharp decrease was due to a two-month
national strike from December 2003-February 2003 that brought
production to a complete halt. In an effort to restart
operations in the oil industry, the Chavez Government
dismissed over 18,000 striking employees, many in management
positions, of which only a small percentage have been
rehired. However, oil GDP increased by 18.6 percent by the
third quarter of 2004 in comparison with the same period in
¶2003.
The Chavez administration has played a price hawk role in
OPEC. It has also begun promoting the regional development
and integration of state energy companies under the name of
"Petroamerica." Petroamerica would be divided into Petrosur
comprising the Southern Cone, Petrocaribe comprising the
Caribbean nations and Petroandina comprising the Andean
nations. The stated purpose of the strategy is to gain
strength in international markets by eliminating trade
barriers, increasing the refining infrastructure and reducing
costs.
--A.6 Natural gas
Venezuela has vast untapped natural gas reserves, estimated
as the eighth largest in the world, and is promoting greater
use of natural gas domestically as a clean and more
cost-efficient energy source. Venezuela would like to take
advantage of its reserves and geographic location to export
natural gas to regional markets including the U.S.
The 1999 Gaseous Hydrocarbons Law offers more liberal terms
than are available to petroleum investors, and Venezuela's
government has sought foreign investment to develop offshore
natural gas deposits near the Orinoco delta.
The 1999 Gaseous Hydrocarbons Law opened the entire natural
gas sector to private investment, both domestic and foreign.
The law created a licensing system for exploration and
production of Venezuela's non-associated natural gas reserves
regulated by the Ministry of Energy and Mines. Natural gas
that is produced in association with crude oil production
remains subject to the Hydrocarbons Law. The state retains
ownership of all natural gas "in situ", but PDVSA involvement
is not required for gas development projects. Complete
vertical integration of the gas business from wellhead to
consumer is prohibited.
In 2001, Venezuela held its first commercial auction of
concessions for natural gas not associated with petroleum
production and successfully awarded six of eleven onshore
areas it offered to bidders. In 2003 and 2003, the
government licensed three exploration and development blocks
in the "Deltana Platform," located in waters contiguous to
Venezuela's boundary with Trinidad and Tobago. Talks
continue over the development of the Mariscal Sucre offshore
natural gas project, which would involve the development of
an LNG facility in Guiria in the Paria Peninsula. Venezuela
also recently signed an agreement with Colombia that
envisions the construction of a natural gas pipeline, which
initially would bring Colombian gas to Venezuela but which
could later be expanded to send Venezuelan gas to Central
America. Finally, more private investor interest is
anticipated for future gas rounds as Venezuela focuses on
export oriented natural gas projects and promising off-shore
exploration areas.
--A.7 Electric power
Electric power production requires intensive investments in
all stages - generation, transmission, and distribution. In
Venezuela, the area that is most in need of investment is
generation since approximately 70 percent of country's
generation capacity is concentrated in hydro stations located
in a single river basin. A drought during 2000, 2001, and
2002 raised serious concerns and highlighted the need to
increase and balance generation to mitigate the consequences
of droughts and grid deficiencies. Investments in hydropower
generation continue however, with the incorporation of
Caruachi, a 2,280 MW dam, and plans to build Tocoma, which
will supply an additional 2,160 MW to the system.
Although approximately 98 percent of the national territory
receives electric service, transmission is an area that also
requires intensive capital investments. Venezuela's
transmission assets were developed between the 1960's and
80's. While maintenance has generally been adequate,
population growth has outpaced upgrades creating transmission
bottlenecks particularly in the central region of the country.
A legal framework has also been crafted to regulate the
sector. Its implementation, however, has been stalled mainly
over concerns about the ability of CADAFE (the national power
utility) to un-bundle activities and honor contracts. CADAFE
is involved in generation, transmission, and distribution of
electricity and is often accused of having serious management
issues and very high non-technical (commercial) losses.
-- A.8 Mining
The mining law of 1999 consolidates the provisions of the
1945 mining law with subsequent mining decrees and encourages
greater private sector participation in mining activities.
The mining law created the National Institute for Geology and
Mining (INGEOMIN), which serves as a national information
center to gather and disseminate technical and scientific
data for the mining industry. The law established an
inter-ministerial commission to coordinate the mining
sector's development between the Ministries of Energy and
Mines (now the Ministry of Heavy Industry and Mining),
Environment, Defense, Finance, and Planning. It also called
for a "one-stop shopping" to be created within that
commission to expedite concession authorization procedures.
The 1999 law maintained the basic concession terms of the
1945 law. Venezuela's concessions remain mineral-specific,
and have a maximum 20-year authorization, which can be
extended for an additional 20 years. The law lengthened
slightly the exploration period from 3 years to 4 years, and
the development period from 4 to 7 years.
The mining law also changed the mining sector's tax
structure. The 1945 mining law required a small one-time
exploration tax: a surface tax of 40 centavos per hectare for
alluvial deposits and one Bolivar per hectare on veins and
strata deposits and a layered royalty rate. The surface tax
could not be adjusted for inflation because a fixed amount
was written into the 1945 law and over time has become
negligible.
The legalization of small and medium size mining operations
has been viewed as a positive step toward the modernization
of the sector and as a way to enforce environmental standards
often violated by illegal small miners. The law,
nevertheless, has been criticized for its high and variable
royalties. A critical issue is a provision of Title VII that
allows an exploitation tax of anywhere between 1 percent and
3 percent.
Individual mining firms have faced significant problems, and
government officials have made comments suggesting that a
generalized review of existing mining contracts may take
place.
-- A.9 Telecommunications
President Chavez signed the Telecommunications Organic Law in
2000, replacing the antiquated 1940's era law and setting the
stage for significant levels of new investment in the sector.
The new law, coupled with a national telecommunications plan
developed by the national telecommunications commission
(CONATEL), and the November 2000 expiration of the monopoly
held by CANTV on basic telephony, created a favorable climate
for telecommunications investors.
Between 2000 and 2003, Venezuela received over US$3 billion
in investments in the telecommunications sector. Figures for
2004 have not been released but are estimated to be near the
levels of 2003, which stood at 237 million and were the
lowest they have been since the opening of the sector to
private investment.
Venezuela has one of the leading wireless telephony markets
in the region. Three major companies share the market: CANTV
(originally state-owned, now largely privatized and 28% owned
by Verizon); Telcel, (recently sold by Bellsouth to
Telefonica of Spain); and Digitel (formerly a subsidiary of
Italy's TIM group but being acquired by CANTV). Higher
investment levels are expected in 2005 to reflect these
acquisitions, estimated at US$1.3 billion for Telcel and
US$450 million for Digitel.
EDELCA, a national utility involved in power generation and
transmission and subsidiary of state-owned industrial giant,
Corporacion Venezolana de Guayana (CVG), has formed a
telecommunications company, CVG Telecom, using its existing
fiber-optic capabilities and rights of way. According to the
government, EDELCA's fiber optic capacity covers
approximately 70 percent of its grid and is interconnected to
those of Colombia and Brazil. This company, it is suggested,
would eventually compete with Venezuela's privately owned
telecommunications providers.
-- A.10 Banking
A 1994 Banking Law (Gazette No. 4641 of 1993) opened
Venezuela's banking and financial services sectors to 100
percent foreign ownership. Foreign banks may enter the
Venezuelan market in one of three ways: acquisition of shares
of existing commercial banks or other financial institutions;
creation of a new bank or other financial institution
wholly-owned by foreign banks or investors; establishment of
a branch of a foreign bank or financial institution. In
2001, President Chavez passed a new Banking Law as part of
the package of enabling laws. This law regulates all banks
with the exception of four state-owned banks.
Applications for entry into the banking sector are submitted
to the Bank Superintendency, which must seek an opinion from
the Central Bank before granting authorization. The
government can take into account "economic and financial
conditions, general and local" (Article 11 of the Banking
Law) and insist on reciprocity (Article 106 of the Banking
Law) when deciding on an application for entry, but it has
generally not used those powers.
Total bank assets increased from US$ 23 billion at the end of
2003 to US$ 25.7 billion in October 2004. Since late 1996,
seventeen banks have received authorization to become
universal banks. Citibank is currently the only U.S. bank
operating branches in Venezuela.
In 2001 a Merger Law was passed, aimed at strengthening the
financial sector by allowing stronger banks to acquire weaker
institutions. Since the law was passed, 13 mergers have
occurred reducing the number of small banks by twenty. By
November 2004, the Venezuelan financial system consisted of
17 universal banks; 15 commercial banks; 2 development banks,
5 investment banks; 2 mortgage banks; 1 leasing company; 3
savings and loan associations; 2 money market funds; 4
special law-regulated banks. Of the 51 financial institutions
43 are private and 8 are national entities.
The banking system is increasingly required to direct credit
to borrowers in accordance with government requirements such
as the imposition of a minimum amount of lending to be made
to small businesses and farmers and a cap on mortgage
interest rates.
-- A.11 Insurance
Venezuela's Insurance and reinsurance sector was opened to
100 percent foreign ownership in 1994. A subsequent decree
passed on November 2001 (Official Gazette No. 5.553)
establishes rules for contracts as the basis for insurance
activity, detailing rights and obligations to guarantee
equilibrium and protect customers. Foreign investors may
acquire shares of an existing insurance or reinsurance
company or create an entirely new company. Applications for
entry into the sector are submitted to the Insurance
Superintendency for authorization. Foreign insurance
companies are prohibited from offering insurance contracts
fulfilled outside of Venezuela, unless the premiums become
part of the net worth of an insurance company operating
within Venezuela.
-- A.12 Privatization
The GOV has a Privatization Law (Gazette No. 5199 of 1997),
which allows for the privatization of public assets. A
number of assets were bundled and earmarked for privatization
in the early and mid 90s. From 1990-1998 FIV, the Investment
Fund of Venezuela, the entity in charge of selling the assets
and later renamed the Economic and Social Development Bank
(BANDES), privatized over 40 entities and generated cash
receipts of nearly $4.8 billion. Foreign investors purchased
stakes in the telecommunications, electricity, steel, sugar
refining, tourism, dairy, cement and aviation sectors.
The Chavez Administration has shifted its policy away from
selling a large portfolio of assets toward forming strategic
alliances, particularly in the form of contracts with
state-owned enterprises of other countries. Participation in
strategic associations regarding state owned entities is
coordinated and administered by BANDES. Although it has not
rolled back any privatizations, the Government of Venezuela
has created new state enterprises in aviation and
telecommunication--areas from which the state had previously
exited.
-----------------------------------
¶B. Conversion and Transfer Policies
-----------------------------------
Foreign investors in capital markets and foreign direct
investment projects are guaranteed the right to repatriate
dividends and capital under the Constitution. However, the
Law Governing the Foreign Exchange System (Gazette No. 4897
of 1995) permits the executive branch to intervene in the
foreign exchange market "when national interests so dictate."
After a steep decline in the value of the national currency
(the Bolivar) following a two-month general strike that
brought oil production to a near standstill, the Central Bank
of Venezuela halted trade in Bolivars on January 22, 2003.
President Chavez announced the creation of an Exchange
Administration Board (CADIVI) on February 5, 2003 to regulate
the purchase and sale of foreign currency. During much of
2003, CADIVI was unable to process requests for authorization
of foreign exchange in an efficient and timely manner and
only supplied $3.6 billion or approximately two months worth
of transactions. There has been significant improvement over
time. The supply of foreign currency reached a level of
approximately $15 billion in 2004, or 55 percent of approved
authorizations.
A new CADIVI resolution allows importers to ship products
without pre-approval by the government. There continue to be
delays with pre-inspection companies, which increases storage
costs. Although the number of currency certificate approvals
has increased sharply, operating with a 50 percent backlog in
liquidations puts significant constraints on imports which
accounted for 68.5 percent of requests, followed by private
foreign debt with 12.5 percent and foreign investments with
8.6 percent. Exchange control authorities have repeatedly
said that the exchange control system will be eased but will
remain a permanent long-term mechanism. Nonetheless, the
quasi-legal parallel market remains an important source of
foreign exchange.
A number of goods have also been added to the list of imports
eligible for foreign exchange including intangibles such as
services and the repatriation of capital, which totaled $1.5
billion at the end of the third quarter. Decree 2095
guarantees foreign investors the right to repatriate 100
percent of profits and capital, including proceeds from the
sale of shares or liquidation of the company, and allows for
unrestricted reinvestment of profits. Legislation is pending
in the National Assembly that would impose criminal penalties
for financial transactions made outside of CADIVI's channels.
This is a subject of significant concern within the business
community given the discretionary and irregular nature of
CADIVI approvals.
---------------------------------
¶C. Expropriation and Compensation
---------------------------------
There have been several cases which raise significant issues
of expropriation and/or serious impairment of the value of
foreign investments in the Venezuelan state. One case
relates to INTESA, a joint venture formed between Science
Applications International Corporation (SAIC), a U.S.
company, and Venezuela's national oil corporation PDVSA, to
provide information technology services to PDVSA. PDVSA
provided INTESA with a five-year service contract that it
decided not to renew in 2002. INTESA continued to provide
services under a provisional agreement while the parties
discussed termination of the joint venture. The national
strike then intervened in December 2002. The national
government took over INTESA claiming the firm had not allowed
non-striking PDVSA personnel to restart operations by denying
access to key control systems. SAIC 's interest had been
insured by the Overseas Private Investment Corporation (OPIC)
which determined in July 2004 that an expropriation had
occurred. It paid compensation to SAIC and has in turn
sought repayment from PDVSA.
Another case is related to a joint venture between Williams,
a U.S. corporation, and Canada's Enbridge Corporation to
operate an oil-loading terminal in Venezuela's Jose
Industrial Complex. Venezuelan authorities seized control
of the facility in December 2002 during the national strike,
claiming that the terminal was of strategic importance and
that the company, which had declared force majeure, had
joined the strike. PDVSA subsequently refused to negotiate
compensation for the termination of the contract. The matter
is currently before an international arbitration panel and a
ruling is expected shortly.
President Chavez has recently issued a controversial decree
aimed at expropriating idle land for agricultural purposes as
part of the agrarian reform spelled out in a 2001 law. The
decree sets up a commission to inspect farmland and decide
whether or not to expropriate the land holdings based on a
finding that the land is not being put to adequate use or
that the owner is unable to show legal title to the land. If
ownership can be proved, compensation is to be provided.
However, land titles in Venezuela are not always clearly
documented, and there are serious concerns regarding the
process and the amount of discretion granted to the
investigating authorities. In March 2005, the Venezuelan
Government nationalized nearly half of the 13,000 hectare
British-owned El-Charcote cattle ranch in the central
Venezuelan state of Cojedes.
A 1998 land census found that 60 percent of all Venezuelan
farmland was owned by less than 1 percent of the population.
The census also noted that over 80 percent of the farmland
redistributed during a 1960 land reform had returned to large
landowners. More than 80 percent of Venezuela's population
lives in rural areas.
---------------------
¶D. Dispute Settlement
---------------------
Venezuela's legal system is accessible to foreign entities
seeking to resolve investment disputes. While the legal
system is often slow, inefficient, and has been accused of
corruption and politicization, foreign entities have not
generally been discriminated against in legal proceedings.
While not common, Venezuelan law allows the filing of
criminal charges in some commercial disputes.
Decree 2095 allows for the arbitration of disputes as
"provided by domestic law." The Commercial Arbitration Law
(Gazette No. 36,430 of 1998) eliminated the previous
requirement for judicial approval of arbitration.
Arbitration agreements involving national or international
firms can be automatically binding.
The Commercial Arbitration Law also allows state enterprises
to subject themselves to arbitration in contracts with
private commercial entities, but requires that they first
obtain the approval of the "competent statutory body," as
well as the "written authorization" of the responsible
minister. In the case of PDVSA, for example, the Ministry
of Energy and Mines issued a blanket written authorization in
1998 which allows the company to enter into such arbitration
agreements, as it deems convenient or necessary. However,
the 2001 Hydrocarbons Law prohibits PDVSA from entering into
agreements providing for international arbitration.
--------------------------------------------- --------
¶E. Investment Incentives and Performance Requirements
--------------------------------------------- --------
-- E.1 Investment Incentives
Investment incentives take the form of tax credits, income
and wholesale tax exemptions, exemption from customs duties,
and some tax rebates for selected sectors in the economy.
Incentives to encourage production for the export market are
available to both domestic and foreign companies.
Article 45 of the Value-Added Tax Law (Gazette No. 5341 of
1999) gives the tax agency, SENIAT, the authority to grant
investors exemption from VAT levies if they are engaged in
new industrial projects in the pre-operative stages of
development. The exemption can last up to five years or
until the pre-operating period terminates, with the
possibility of extensions.
Exporters may make use of special customs procedures aimed
principally at raising the competitiveness of non-traditional
exports by the suspension or refund of duties on imports that
local producers incorporate into their export production.
Mechanisms include temporary admission for inward processing,
drawback, and replenishment of inventories, in-bond
warehousing, and refund of the wholesale tax. The drawback
mechanism has been accused of being lengthy, and bureaucratic.
Decree 1217 (Gazette No. 35,907 of 1996) updated the norms
for debt-for-equity swaps to provide incentives for new
direct foreign investment entities and reduce Venezuela's
external debt stock. The decree expanded the use of this
instrument for a wide range of sectors: agriculture;
industrial production or high technology services;
petrochemical, coal, processed wood, wood pulp and its
byproducts production; production and acquisition of capital
goods and services; tourism; and construction of houses,
medical facilities, or other structures related to social
welfare interests.
-- E.2 Performance Requirements
In any enterprise with more than 10 workers, foreign
employees are restricted to 10 percent of the work force, and
Venezuelan law limits foreign employee salaries to 20 percent
of the payroll. The state oil company, PDVSA, seeks to
maximize local content and hiring in its negotiations with
foreign hydrocarbon investors.
--------------------------------------------- --
¶F. Right to Private Ownership and Establishment
--------------------------------------------- --
There are no legal limits on foreign ownership, except as
noted in Decree 2095 and in "special laws" (see above).
--------------------------------
¶G. Protection of Property Rights
--------------------------------
-- G.1 Real Property Rights
Foreign investors may pursue property claims through
Venezuela's legal system. While the legal system's
procedures are lengthy, judgments are uneven, and allegations
of corruption and politicization are common, there is little
evidence that the legal system discriminates against foreign
investors.
-- G.2 Intellectual Property Rights
Venezuela is a member of the World Intellectual Property
Organization (WIPO). It is also a signatory to the Berne
Convention for the Protection of Literary and Artistic Works,
the Geneva Phonograms Convention, the Universal Copyright
Convention, and the Paris Convention for the Protection of
Industrial Property. Through Andean Community Decision 486,
Venezuela has ratified the provisions of the WTO Agreement on
Trade-Related Aspects of Intellectual Property Rights
(TRIPS).
The Venezuelan Industrial Property Office (SAPI) leaves much
room for improvement, and its actions and occasional publicly
stated antagonism towards IPR often draw criticism from IPR
advocates and rights holders. Protection of IPR is also
hindered by the lack of adequate resources for the Venezuelan
copyright and trademark enforcement police (COMANPI) and for
the special IPR prosecutor's office. Venezuela's tax agency
SENIAT is promoting several measures to fight piracy in an
effort to reduce tax evasion, including a new anti-piracy law
and the introduction of a tax on street vendors. According
to industry representatives, SENIAT seems to be a promising
enforcement entity due to its better technical and financial
capabilities.
Unfortunately, pirated software, music and movies remain
readily available throughout the country. In the 2003 Annual
Review, Venezuela remained on USTR's Special 301 "Watch List."
-- G.3 Patents and Trademarks
Venezuela provides the legal framework for patent and
trademark protection through Andean Community Decision 486
and the 1955 National Industrial Property Law. Andean
Community Decision 486 takes major steps towards bringing
Venezuela into WTO TRIPS compliance. However, without
corresponding local laws, Venezuela is not completely TRIPS
compliant. Andean Community Decision 345 covers patent
protection for plant varieties.
U.S. companies remain concerned about the impact of the
Andean Tribunal's 2002 interpretation of Articles 14 and 21
of Decision 486, which do not allow for the patenting of
"second-use" products. Under pressure from the Andean
Community and in line with some changes in leadership at
SAPI, Venezuela has revoked previously issued patents. No
patents were awarded in 2004 to imported pharmaceutical
products. Since 2002, Venezuela's food and drug regulatory
agency (INH) began approving the commercialization of new
drugs which were the bioequivalents of already patented
drugs, thereby denying the patent-holding companies
protection of their test data. In effect, the government now
allows the test data of patented drugs or those for which
patents have been requested, most of which required lengthy
and expensive development, to be used by others seeking
approval for their own unlicensed versions of the same
products.
-- G.4 Copyrights
Andean Pact Decision 351 and Venezuela's 1993 Copyright Law
provide the legal framework for the protection of copyrights.
The 1993 Copyright Law is modern and comprehensive and
extends copyright protection to all creative works, including
computer software. A National Copyright Office was
established in October 1995 and given responsibility for
registering copyrights, as well as for controlling,
overseeing and ensuring compliance with the rights of authors
and other copyright holders. Industry experts are concerned
about a proposed new copyright law proposal, which would
require the mandatory registry of works, reduce protection
terms, hamper distribution agreements and increase royalties.
The Venezuelan copyright and trademark enforcement branch of
the police (COMANPI) continues to provide copyright
enforcement support with a small staff of permanent
investigators. A lack of personnel, coupled with a very
limited budget and inadequate storage facilities for seized
goods, has forced COMANPI to work with the National Guard and
private industry to improve enforcement of copyrighted
material. COMANPI can only act based on a complaint by a
copyright holder; it cannot carry out an arrest or seizure on
its own initiative, which leads to weaker enforcement.
Venezuela does not automatically recognize foreign patents,
trademarks or logotypes, so foreign investors must be sure to
register patents and trademarks appropriately and in as many
categories as are applicable. It is advisable not to have
agents or distributors do this in their name because the
agent can then claim that he/she is the registered owner of
the trademark in question.
----------------------------------------
¶H. Transparency of the Regulatory System
----------------------------------------
-- H.1 Legal Environment
The Government of Venezuela adopted three laws in the early
1990's to promote free market competition and prevent unfair
trade practices: an Anti-Trust Law (Gazette No. 34,880 of
1992), an Antidumping Decree (Gazette No. 4,441 of 1992), and
a Consumer Protection Law (Gazette No. 37.390 of 2004).
Venezuela also passed a government procurement law that came
into effect in 2001. The law supposedly increases
transparency in the competitive bidding process for contracts
offered by the central government, national universities, and
autonomous state and municipal institutions. Despite this
legal framework, there is little transparency in Venezuela
and many contracts are awarded without open competition.
-- H.2 Tax Treatment of Foreign-Owned Firms
All companies and individuals are required to register with
the national tax authority (SENIAT). Income received from
any economic activity carried out in Venezuela is subject to
taxation.
There are several different corporate tax regimes to which
foreign investors could be subject, depending upon the type
of economic activity in which they are engaged. Except for
the petroleum sector, the current Venezuelan income tax law
does not differentiate between foreign-owned and
Venezuelan-owned firms. The income tax rate is progressive
based on income, ranging from 6 percent to 34 percent.
Companies involved in hydrocarbon and related activities pay
50 percent, except associations formed under the Hydrocarbons
Law, which receive a different treatment. Companies involved
in mining pay 60 percent. The Business Assets Law imposes a
one percent tax on business assets (Gazette No. 4654 of
1993). The assets tax is assessed on the gross value of
assets (with no deduction for liabilities) after adjustments
for depreciation and inflation
Venezuela has international double taxation agreements in the
areas of air and sea transport with several countries,
including the Unites States. A US/Venezuelan treaty to avoid
double taxation went into effect on January of 2001.
SENIAT is undertaking a very aggressive tax collection
program called "The Zero Evasion Plan" which has boosted
fiscal revenues in 2004. Highly publicized raids have taken
place and businesses, including multinational firms, have
been temporarily closed administratively. Firms subject to
these measures complain that these closures have been imposed
for minor paperwork violations as opposed to actual tax
evasion.
In 1999, the government replaced the wholesale tax (ICVSM)
with a value-added tax (IVA). The value-added tax rate is
currently 15 percent.
A Bank Debit Tax (BDT) was also implemented last year levying
all bank transactions. Since its implementation rates have
varied increasing from 0.75 percent to 1 percent at the end
of 2002, and then decreasing again to 0.5 in 2004 where it
currently stands.
--------------------------------------------- --------
¶I. Efficient Capital Markets and Portfolio Investment
--------------------------------------------- --------
-- I.1 Capital Markets
Access to the Venezuelan secondary capital market is
relatively easy, and U.S. firms essentially enjoy treatment
equal to that of domestic firms. Foreign companies may issue
common and preferred stocks, bonds, and other securities in
Venezuelan capital markets. Foreign investors may also buy
shares directly in Venezuelan companies or on the stock
exchange.
The Caracas Stock Exchange (CSE) is a privately owned
corporation in operation since 1947. Trading on Venezuelan
stock exchanges is thin and highly concentrated. The
Venezuelan Futures and Options Clearinghouse (CACOFV), the
first market of its kind in the country, started operations
in Caracas in September 1997. Membership in local capital
markets is open to both individuals and legal entities.
A Capital Markets Law came into effect in September 1998
(Gazette No. 36,565 of 1998). It gives autonomy to the
National Securities Commission (CNV) and provides regulations
for intermediaries, establishes new conditions for public
offerings, enhances the transparency of brokerage operations,
and makes regulations more flexible for small firms that wish
to issue stocks.
The Congress passed the Collective Investment Companies Law
(Gazette No. 36,027 of 1996) to foster the development of
Venezuela's capital market through the creation of collective
investment companies. The law, which is designed to make
capital market investments more attractive for small and
medium investors, opened the door to the establishment of
mutual funds, collective investment venture capital
companies, and collective real estate investment companies.
CNV issued capital requirements for collective investment
companies in 1998 (Gazette No. 36,027 of 1998). Despite the
relatively advanced legal regime, Venezuela's capital markets
have shrunk in size over the last decade, a reflection of
economic stagnation.
-- I.2 Credit Markets
The Venezuelan financial system recovered strongly from a
crisis in the mid 90's that caused the failure of a number of
institutions. Banks tend to register higher profits than
those in other countries in the region. Much of this is
attributable to exchange controls which limit the ability of
the owners of capital to transfer it outside of the country.
The purchase of several troubled banks by large foreign banks
also injected much needed capital, technology, and
competition into the sector. Foreign banks have also taken a
minoity interest in several other local banks.
Conseuently, foreign banks now control approximately 40
percent of all banking sector assets. Venezuelan banks have
become increasingly dependent on the public sector as a
borrower. It is currently estimated that approximately 50
percent of banks' investment portfolios is made up of
government debt.
Financing is available from a variety of sources and does not
discriminate against foreign investors seeking access to
credit. Banks cannot lend more than 10 percent of their
assets to any one borrower.
A major concern for the financial system is the recent
agricultural and housing mortgage legislation, which forces
banks to lend a percentage of their portfolio at preferential
rates fixed by the local authorities. The percentage of the
portfolio to be dedicated to agricultural loans is currently
fixed at 16 percent. The percentage for mortgages has not
yet been established it is expected to be around 15 percent.
These loans are of concern because the mandated rates are
well below market rates and below the fairly high Venezuelan
inflation rate (19.2 percent in 2004).
---------------------
¶J. Political Violence
---------------------
No major incidents were confirmed against foreign-owned or
operated companies, projects, or installations in Venezuela
in 2004.
-------------
¶K. Corruption
-------------
Corruption is a serious problem in Venezuela. Venezuela has
a regulatory system to prevent and prosecute corruption and
accepting a bribe is a criminal act. Penalties include fines
and/or prison sentences. Historically, the country has
lacked an effective judicial system to provide judicial
security for either foreign or national residents. The new
constitution also gives the central government enhanced
powers to investigate cases of corruption and oversee the use
of government funds.
Government tenders are the most vulnerable to corruption
because the tender process frequently lacks transparency.
Critics have also targeted the current regime of government
price and exchange controls as a source of corruption.
----------------------------------
¶L. Bilateral Investment Agreements
----------------------------------
Venezuela currently has bilateral investment agreements in
force for the promotion and protection of investment with the
following countries: Argentina, Barbados, Canada, Chile,
Costa Rica, Cuba, the Czech Republic, Denmark, Ecuador,
Germany, Lithuania, Netherlands, Paraguay, Peru, Portugal,
Spain, Sweden, Switzerland, the United Kingdom and Uruguay.
France and Belgium have signed agreements that are still
awaiting legislative approval. No agreement exists with the
United States.
--------------------------------------------- --
¶M. OPIC and Other Investment Insurance Programs
--------------------------------------------- --
OPIC currently has significant exposure in Venezuela, as does
the Export-Import Bank. Please refer to the section on
Expropriations and Compensation for information on OPIC. In
April 2003 Ex-Im Bank formally placed Venezuela "off cover"
for new lending where it currently remains.
--------
¶N. Labor
--------
Venezuela's total labor force (defined as all persons 15
years of age and older who are working or looking for work)
was 12.2 million at the end of December 2004. According to
the National Institute of Statistics (INE), 1.8 million, or
15.5 percent, were unemployed. Persons are considered as
employed if they work at least 1 hour per week. Of the 10
million employed workers, approximately 47 percent work in
the informal sector (i.e. as street vendors, domestics, small
entrepreneurs, etc.). The government employs about 1.4
million of those who work in the formal sector.
The major labor organization in Venezuela is the
Confederation of Venezuelan Workers (CTV), which represents
most of the unionized workers in Venezuela. The CTV claims a
membership of 3 million, although its actual membership is
probably closer to one million. The CTV is especially strong
in the public sector. A second union confederation the
National Workers Union (UNT) has been formed and enjoys
support from the Venezuelan government.
President Caldera signed landmark legislation in June 1997
(Gazette No. 5152 of 1997) to reform the outdated and
unworkable severance pay system in the Organic Labor Law. The
legislation was based on a framework agreement negotiated
among representatives from the government, private business,
and organized labor. Under the previous severance pay system,
departing employees received one month's salary (two months
if they left involuntarily) for each year worked based on
their current pay. The 1997 system did away with
"retroactivity" (i.e. basing the entire benefit on current
salary) and requires employers to calculate their severance
pay obligations annually and to make monthly deposits into a
pension fund, an employer account, or an outside trust
account.
The 1997 Organic Labor Law also provides that the minimum
wage will be reviewed at least once a year and may be
adjusted based on considerations such as the "food basket." A
minimum wage of Bs. 321,235 ($139) per month for urban
workers and Bs. 289,111 ($125) per month for agricultural
workers took effect in August 2004.
The Organic Law Pertaining to the Integral Social Security
System (Gazette No. 5199 of 1997) provides the general
framework for the social security structure. Congress passed
a social security reform in 1998, but the system remained
under review by the Chavez government, until 2002, when the
National Assembly passed the Social Security System Organic
Law (Gazette No. 37600). However, the full application of
this law that covers everybody that contributes or not with
the expenses, will depend on the fiscal reforms.
The Organic Labor Law places quantitative and total wage cost
restrictions on the employment decisions made by foreign
investors. Article 27 of the Labor Law requires that the
number of foreigners hired by an investor not exceed 10
percent of a company's employees, while salaries paid to
foreigners may not exceed 20 percent of the total company
payroll. Article 28 allows for temporary exceptions to
Article 27 and outlines the requirements for hiring technical
expertise when equivalent Venezuelan personnel is not
available. Article 20 of the law requires that industrial
relations managers, personnel managers, captains of ships and
airplanes, and foremen be Venezuelan. Article 19 requires
that all orders and instructions to workers be given in
Spanish.
The Venezuelan government has imposed a freeze--renewed every
six months--on layoffs. Thus, reductions-in-force require
the negotiation of severance packages in exchange for
voluntary resignation.
---------------------------------
¶O. Foreign Trade Zones/Free Ports
---------------------------------
The Free-Trade Zone Law (Gazette No. 34,772 of 1991) provides
for free trade zones/free ports. The two existing free trade
zones are located in the Paraguana Peninsula on Venezuela's
northwest coast (industrial) and Margarita Island
(commercial). Under the law, any investor in the Paraguana
industrial free zone can receive a 10-year exemption from
income taxes on all profits earned from goods produced for
export. The government may extend such benefits for an
additional 10 years. Few investors have taken advantage of
the tax breaks in Paraguana due to infrastructure problems in
the region. Both the Paraguana and Nueva Esparta (Margarita
Island) zones provide exemptions from most import and export
duties and offer foreign-owned firms the same investment
opportunities as host country firms. Venezuela has three free
ports that also enjoy exemptions from most tariff duties:
Margarita Island, Maracaibo and, the most recent addition to
this list established in May 1999, Santa Elena de Uairen in
the state of Bolivar.
----------------------------
¶P. Foreign Direct Investment
----------------------------
Embassy estimates the total stock Foreign Direct Investment
(FDI) in Venezuela stood at 21 billion in 2004. The United
States was the single largest foreign direct investor in
Venezuela, representing approximately 53 percent, followed by
the Cayman Islands with 17 percent, the Netherlands with 7.5
percent and Spain with 5 percent. The percentage represented
by the Cayman Islands is thought to include Chinese
investments.
The stock of U.S. foreign direct investment (FDI) in
Venezuela in 2003 was $10.8 billion according to U.S.
Department of Commerce statistics. U.S. FDI in Venezuela is
concentrated largely in the petroleum, telecommunications,
manufacturing and finance sectors.
The estimated U.S. trade deficit with Venezuela for 2004 is
projected at $19.5 billion, an increase of $5.2 billion from
the trade deficit of $14.3 billion in 2003. U.S. goods
exports to Venezuela were approximately $4.5 billion, up $1.8
billion from 2003. U.S. imports from Venezuela are estimated
at about $24 billion in 2004, an increase of $7 billion from
the level of imports in 2003. The large increase in imports
is related primarily to the increase the price of petroleum,
which represents the vast majority of U.S. imports.
Brownfield
NNNN
2005CARACA00790 - UNCLASSIFIED