Research firm: Venezuelan imports from Colombia are to double

While the governments of Venezuela and Colombia have not completed negotiations of a Partial Scope Trade Agreement signed by presidents Hugo Chávez and Juan Manuel Santos in November 2011, economic research firm Ecoanalítica estimated that Venezuelan imports from its neighboring country could double in 2012.

In a report drafted by Ecoanalítica, the economic research firm warned that the volume of goods imported from Colombia to supply the Venezuelan market would amount to USD 4.5 billion this year. This means that bilateral trade would double compared to 2011, when it hit USD 1.75 billion as of October 2011, according to the Venezuelan-Colombian Economic Integration Chamber (Cavecol).

Ecoanalítica said that "as oil prices are expected to soar over the coming months, Venezuela's Executive Office will have more foreign currency available. This would encourage imports and lead to a sort of consumption feast, especially in this election year. Further, foreign exchange restrictions affecting the private sector could be relaxed." However, "Chavezism seeks to promote endogenous development, which tries to encourage industrialization and the creation of value." Therefore, it would tend "to put an end to Venezuela's port economy."

"The Venezuelan government seeks to increase imports of five essential products, namely powdered milk, sugar, wheat, corn, and edible oils," said the report.