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Andean Group - December 2011 (ISSN 1741-4466)
VENEZUELA: Colombia’s new customer: the Chávez administration
Venezuelan exporters expressed surprise at the Partial Scope Trade Agreement (PSA) signed by Presidents Hugo Chávez and Juan Manuel Santos in Caracas on 28 November, saying they had not been consulted in advance by the Chávez government. Venezuela's industry minister, Ricardo Menéndez, said that the agreement was aimed at strengthening domestic production in Venezuela; however, there are concerns in the local private sector that the deal is designed primarily to facilitate relations between the Caracas government and Colombian businesses, potentially crowding out the struggling Venezuelan private sector, which has yet to recover fully from the bilateral trade freeze with Colombia imposed by the Chávez government for a year from July 2010.
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