• by IPS Correspondents (caracas)
• Saturday, December 17, 1994
• Inter Press Service

CARACAS, Dic 17 (IPS) - Venzuelan imports will reach 16.467 billion dollars while imports will be under eight billion for 1994, Foreign Trade Minister Alberto Poletto said on Friday.

The projections indicate that exports have increased 11 percent, while imports have fallen 27 percent, in a year marked by economic recession, serious devaluation and rigid exchange controls imposed in June.

Poletto said that petroleum exports will earn 12.3 billion dollars, iron 194 million and non-traditional exports 3.9 billion dollars - the highest level ever.

He said that 14 percent increase from the nontraditional sector was especially important for the country because of understimulated production and the most difficult economic crisis in the nation's history, and will further assist the move away from dependence on petroleum.

Venezuela has a population of 21 million people, a Gross Domestic Product of 67 billion dollars, and a foreign debt of 28.8 billion dollars - and payments will swallow 34 percent of the 1995 budget of 15 billion dollars.

Poletto said that Colombia was the main buyer of non-traditional goods - pushing the United States out of the first position - and that 67 percent of the exports came from the private sector.

Colombia purchased 26.4 percent of these exports, compared with 24.5 percent in 1993, and the United States 25.3 percent, compared with 23 percent the year before.

Britain, Japan, Mexico, and Colombia and the United States buy 72 percent of Venezuela's non-traditional exports, while Latin American countries take 41 percent of the total non-iron or petroleum exports, 60 percent of which is in base metals, metallurgical goods, chemicals, motor vehicles and precious metals and gems.

While bilateral trade with Colombia is expected to reach 1.4 billion dollars in 1994 - down from the two billion expected - Colombia will only import 371 million dollars of Venezuelan goods.

Poletto stressed that 1995 would consolidate the export of non- traditional goods, as the Andean Pact trade agreement between Bolivia, Colombia, Ecuador, Peru and Venezuela will go into effect.

In addition, from Jan. 1 the G-3 Free Trade Agreement between Colombia, Venezuela and Mexico will result in Mexican tariffs on Venezuelan goods falling by 10 percent on most items.

The G-3 agreement promises total trade liberalisation for most sectors within 10 years, with special exemptions for agriculture, car production and Venezuelan textiles.

© Inter Press Service (2014) — All Rights Reserved. Original source: Inter Press Service

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