Brazil and Argentina to benefit most from Venezuela’s Mercosur incorporation
The formal incorporation of Venezuela to Mercosur next July will benefit mainly Brazil and Argentina since they could considerably increase their exports to the oil-rich country at the expense of the local production sector weakened by the economic policies from the administration of President Hugo Chavez, according to analysts.
“Main producers such as Brazil and Argentina will become the main beneficiaries of the incorporation because they will have greater access to the Venezuelan market, which is highly dependent on imports” said economist Pedro Palma from consultants Ecolatina.
Palma added that Venezuela “has virtually dismantled the private sector production capacity since many companies have been taken over by the state and once under state management they lose competitiveness and their level of productivity”
In Venezuela the policies of seizures and nationalization propped by the government of President Chavez, in office since 1999, have punished the private sector and caused the dramatic fall of domestic production in such sectors as aluminium, iron, and cacao and sugar among others, which traditionally have been strong in Venezuela.
Analyst Felix Arellano recalls that Venezuela has four years to adapt to the rulings of Mercosur and “there was no need to incorporate Venezuela to the block” precisely because countries such as Brazil and Argentina “are already selling huge volumes to the Venezuelan market” given the political affinity between the governments.
According to official data bilateral trade with Brazil multiplied fivefold since 2003 and reached 5.9 billion dollars in 2011, mostly sales of Latam’s largest economy. With Argentina trade jumped from 526 million dollars in 2006 to over two billion last year.
Furthermore countries such as Argentina benefit from the reduction of “tariffs for the purchase of oil” from Venezuela which has one of the world’s largest certified reserves of hydrocarbons.
Another factor which is a disadvantage for Venezuelan producers is exchange rate controls which make exporting difficult, pointed out Arellano who is head of the International Studies School from the Central University of Venezuela.
“The rigid exchange rate system has been a government policy that has destroyed production sectors”, insisted Arellano.
Suggested Stories
-
May 23rd 2013
Cristina Fernandez administration limits overseas dollar extractions to a minimum
-
May 20th 2013
Brazil trapped by Argentina and Venezuela economic mismanagements
-
May 17th 2013
Argentina’s ‘autarkic project’ worsens bilateral relations and multiplies problems
-
May 23rd 2013
Beware inflation: CFK announces “political groups” will keep track of prices in shops
32 comments Feed
Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Thank you.
But lets not forget Argentina is a world leader in human rights lol...... bunch of lying hypocrites......
Just another day in whiny and failed Mercosur states (yes)
Few people could put together a package where a Venezuelan politician would solicit Paraguayan military support of the Paraguayan president Lugo, whilst, at the same time, preparing a 'counter-coup' via Mercosur if the impeachment succeeded.
Is Chavez bright enough?
Who is the genius of the Left? Dilma? Surely not CFK.
.......................
And, by the way, Forgetit, @#5, you are becoming progressively unworthy of the esteem I expressed in an earlier posting. Grow up, you are not funny.
I can't see your point. It's a case of green on blue - a guy in the afgan forces turns and shoots 3 British soldier who thought they were working along side him! The Afgans are suppose to take over shortly and keep the taliban out so are getting training for their military/police.
How would this compare if indeed the UK had to defend to islanders against the agressor of the Argentine gov?
Boy you ar one sicko. Tell me where the hell is the connection between “Brazil and Argentina to benefit most from Venezuela’s Mercosur incorporation” and the murder of three soldiers?
Oh, I see because they were British!!
Right so now we are thrilled when some British soldiers get killed in Afganistan!
WTH has that got to do with us?
Forgetit, you need to see a therapist ASAP, you're in a very bad way!!!
its so easy to laugh is it not,
as long as its not your family
perhaps if it was argentine troops in cyprus,
you are without doubt a total disgrace,
and a bloody cretin.
Spoken like a COWARD. This has nothing to do with this thread, and your comments are distasteful.
How would you feel if British made fun of Argentine dead?
You are PATHETIC and because you know Argentina is failing rapidly and will never obtain the Falklands, you stoop very low.
I have asked the moderators to remove your cowardly and disrespectful comments.
Altogether,
What a very sad and despicable man .
Read more: www.dailymail.co.uk/news/article-2167773/Theyre-SO-trouble-Low-flying-Brazilian-air-force-pilots-shatter-window-countrys-Supreme-Court.html#ixzz1zZSTI5HV
Wanna be a pilot,
There are great pilots,
And not so great pilots,
These are no so great,
mmmmm
.
Are you sure? I've been here for far longer than you, and I've seen comments - mostly British - far more offensive than mine, which lamenting the deaths of hapless but incompetent UK soldiers. Britard users should grow some thick skin before they hypocritically act like this self-righteous, indignant mob.
And you have turned into a despicable evil cretin,
You should even be ashamed to post on here,
You are a disgrace to mankind,
go and repent in the gutter, and pray it does not happen to your family.
now skiddadle .
.
Maybe ,from the reason of this website publishing in London.
Do not care them they are solely fluttering scions of in the pipe line Empire.
in the pipe line = about the finish
ENGLISH only
in British English the same expession meaning is :
in the pipe line = about the finish = it is almost finish
UK Empire is in the pipe line ( about the finish).
if you say so.
Don't you think to use power saw !?
Both you and me knows you aren't going two metres from your favourite chair.
Stop ranting and go catch that sheep, maybe today is the day...
Another important thing about that map, as JuanGabriel mentioned, NO FALKLAND ISLANDS.
So Chaves finally admits that Argentina has no claim to the Islands.
Thank you Coronel Chavez
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!