Venezuelan regular imports drop 6.57%

Electoral circumstances have constrained the Venezuelan Government to raise public expenditure in 2012. Nonetheless, regarding the approval of US dollars for imports, the figure only increased 0.17% (USD 30.42 million) in one year climbing from USD 18,707.3 million in 2011 to USD 18,737.7 so far this year.

Data from the Venezuelan Foreign Exchange Administration Commission (Cadivi) reveal that authorizations for imports, excluding the operations through Aladi and the Sucre, plunged 6.57%.

Said limitations have led to numerous adverse consequences for companies relying on the foreign currency to import raw materials and equipment for domestic output. For instance, in the case of products regulated by the National Superintendence of Fair Costs and Prices (Sundecop), delays linger as many as 250 days.

Such delays put at risk domestic supply as companies' providers are not paid on a regular basis.

Meanwhile, while companies are going through a hard time in production, consumers are affected by the drop in the variety of products.

Operations rebound through Sucre

While operations through the Latin American Integration Association (Aladi) slightly increased 1.6% standing at USD 3.77 billion in a year, operations though the Unified System for Regional Compensation (Sucre) climbed from USD 228.1 million in the first three quarters of 2011 to USD 1.17 billion in 2012, increasing 412%.

Sucre is a mechanism aimed at promoting development, integration and trade between Latin America and the Caribbean.

enmarcano@eluniversal.com

Translated by Jhean Cabrera