EL UNIVERSAL

Venezuelan authorities have refused to grant the certificates of origin required under regional export standards, thus having the non-traditional exporters on the rack and jeopardizing Venezuelans' trade links to Colombian customers.

"When we you are going to export, there is a price previously agreed on with the buyer in the neighboring country (which is Colombia, in this case). Such a price has been set, and cannot be changed," said Francisco Mendoza, chair of the Venezuelan Association of Exporters (AVEX).

If Venezuela tried to send products lacking the certificate of origin to Colombia, the trade preferences set under the Andean integration agreements would be lost. Therefore, exports to Colombia would in fact become more expensive de facto.

"When you do not have the certificates of origin, prices virtually treble," and if the buyer cannot afford such high prices or rejects them, the operation fails. This even involves losing your place in international markets.

The Venezuelan body granting the certificates of origin is the Foreign Trade Bank (Bancoex). But the institution is attached to the Ministry of Industries and Commerce (Milco), which has not ordered Bancoex to resume issuing the relevant documents for exporters.

The issuance of certificates of origin was discontinued more than two weeks ago, amidst a temporary breaking-off of diplomatic relations between Venezuela and Colombia, which were brought back to normal recently.

Based on AVEX estimates, some 140 containers carrying goods that were supposed to be sold to Colombian customers are stranded in Venezuela, as they lack the relevant documents for transportation. Such exports are valued at over USD 600 million.

While Venezuelan exporters remain with their hands tied, their Colombian counterparts are selling their goods in Venezuela, with trade preferences taking tariffs down to zero.

In this way, the Venezuelan government is undermining the competitiveness of non-traditional exports to Andean countries.

Translated by Maryflor Suárez R.