Venezuela Trade

Subchapters:

  • Business Relationships
  • FTAs ​​and Treaties
  • Development Cooperation
  • Prospective fields of study (MOP)

Business relations

Trade relations with the EU

The EU is Venezuela’s fourth largest trading partner after India, China and the US. The total trade between the EU and Venezuela was EUR billion in 2019 and was the highest in 2012 (EUR 11.08 billion). For most of the past decade, the EU exported more to Venezuela than it imported, but since 2017 the value of EU imports to Venezuela exceeds EU exports to Venezuela except in 2020. In 2019, there was a negative trade balance of around €billion. EU trade with Venezuela, as with other countries and partners, is affected by the protracted economic crisis in Venezuela.

The EU’s most important exports to Venezuela (2019) include refined petroleum products (57%), machinery and transport equipment (14%) and chemicals (9%). Venezuela’s exports to the EU are mainly from oil and related chemicals (83%). EU trade in services with Venezuela is also declining, falling from a peak of €4 billion in 2012 to €billion in 2018 (€0.7 billion in exports and €0.4 billion in imports).

2018 2019 2020 2021 2022
Exports from the EU (million EUR) 614.1 695.6 707.0 ON ON
Imports into the EU (million EUR) 1,643.9 2,217.5 712.5 ON ON
Balance with the EU (million EUR) 1,029.8 1,521.8 5.5 ON ON

Source: European Commission

Trade relations with the Czech Republic

The Czech Republic imports a small amount of aluminum and beverages, which mainly means Venezuelan rum, which is still produced in small quantities by Venezuela. The minimum export of the Czech Republic to Venezuela is due to the deep crisis of all sectors of the Venezuelan economy and the low purchasing power or hyperindebtedness of the country.

Trade exchange with the Czech Republic

2018 2019 2020 2021 2022
Exports from the Czech Republic (billion CZK) 0.0 0.0 0.1 ON ON
Imports to the Czech Republic (billion CZK) 0.2 0.3 0.3 ON ON
Balance with the Czech Republic (billion CZK) 0.1 0.3 0.3 ON ON

Source: businesscarriers.com

FTAs and treaties

Treaties with the EU

There are no preferential trade arrangements between Venezuela and the EU. The trade relationship between the EU and Venezuela is based on World Trade Organization (WTO) rules and tariffs.

Contracts with the Czech Republic

Overview of bilateral agreements:

  • Agreement on cultural cooperation between the government of the Czechoslovak Republic and the government of the Republic of Venezuela dated 25 October 1983
  • Basic Agreement on Technical Cooperation between the Government of the Czechoslovak Republic and the Government of the Republic of Venezuela dated 3 November 1988
  • Agreement between the Government of the Czech and Slovak Federative Republic and the Government of the Republic of Venezuela on the abolition of the visa requirement for holders of diplomatic and service passports negotiated by exchange of notes, No. j.448/1991 Coll., dated 11/07/1991
  • Agreement between the Czech Republic and Venezuela on the support and mutual protection of investments, No. 99/1998 Coll., signed in Caracas on 27/04/1995, entered into force on 23/07/1996
  • Agreement between the Czech Republic and Venezuela on the prevention of double taxation and the prevention of tax evasion in the area of ​​income and property taxes, No. 6/1998 Coll. signed in Prague on 26/04/1996, entered into force on 12/11/1997.
  • Memorandum of Understanding on the development of cooperation in the field of tourism between the Ministry for Regional Development of the Czech Republic and the Ministry of Industry and Trade of the Bolivarian Republic of Venezuela, No. 128/2004 Coll. of international treaties, Prague dated November 4, 2002

Developmental cooperation

The Czech Republic does not have any ongoing or completed development cooperation projects with Venezuela, nor is it planning any in the foreseeable future, Venezuela is not included in the list of priority countries for the Czech Republic’s development cooperation.

The European Commission currently supports projects in the field of humanitarian aid and support for the development of civil society and human rights in Venezuela through the EU Delegation. In the area of ​​regional cooperation, it supports projects related to the EUROCLIMA program and anti-drug policies (COPOLAD program) throughout Latin America.

In the past, the support of the land registry (CARCAVEN project) achieved the best results. Interested parties can enter the geographic programs through tenders published by the Delegation of the European Union in Venezuela. It is possible to enter DCI thematic programs through selection procedures at EuropeAid or DEU Caracas.

Prospective fields of study (MOP)

Reconstruction of road and railway infrastructure, the construction industry, the mining industry, energy and mass urban and suburban transport systems could be considered possible future promising fields (if the business climate changes). The state budget includes planned investments in the following framework projects:

  • infrastructure projects
  • coal mining
  • projects in the gas industry
  • building a basic telecommunications center
  • national transport rail system including connections with Colombia and Brazil
  • construction of three million dwellings for the poor

New opportunities for Czech exports depend on future political developments in the country. In addition to the above-mentioned perspective options, under standard business and payment conditions, e.g. deliveries for:

Petróleos de Venezuela (PDVSA) – opportunities to export seamless oil and gas pipes, industrial waste treatment plants and incinerators, oil fittings, transfer stations, repair shop equipment, etc.

Compaňía Venezolana de Guayana (CVG) – supply of machinery and equipment for surface mining, handling, loading and unloading of iron ore and bauxite and their processing

State shipyard DIANCA – equipment of docks and repair shops, etc.

Possible acquisitions of new products of the Czech industry, especially engineering and means of transport, chemical products, equipment for the food processing industry (lines for breeding and slaughtering poultry and cattle), finished industrial products and consumer goods, etc., can be considered as potentially promising. However, there is still a need to draw attention to the dangers arising from the closedness of the Venezuelan economy, legal uncertainty and the politically planned economic structure of state-owned companies often led by military generals. An important aspect is also the guarantee of many government loans by government assets and property. The extent and structure of these guarantees provided to the largest creditors – Russia and China – is not known.

Venezuela Trade