ANNOUNCED AS TEMPORARYNo
On 2 October 2015, the government of Venezuela approved a new subsidy of Bolívares 16.4 (USD 2.58) per kg of paddy (used for rice cultivation). This subsidy is to be granted on top of the official producer price of Bolívares 8.6 (USD 1.35) per kilo.
Moreover, the government of Venezuela also increased the coffee producer prices (i.e. the prices paid by the government to the producers for their coffee as well as the prices based on which farmers are obliged to sell their products to other third parties). The new prices are ranging from Bolivares 6,804 (1,071.56) to 15,200 Bolivares (USD 2,381.25) per 100 kg. The previous prices ranged from approximately Bolivares 2,878 (USD 453) to Bolivares 4,500 (USD 709) per 100 kg.
The government furthermore announced additional subsidies as well as elevated producer prices for maize (i.e. prices the government pays to the producers for their maizeas well as prices based on which farmers are obliged to sell their products to other third parties). The new elevated prices for maize range from Bolivares 7 (USD 1.10) to Bolivares14.60 (USD 2.30). The previous prices for maize ranged from Bolivares 6 (USD 0.94) to Bolivares 7 (USD 1.10). Finally, the government also increased the subsidies paid to producers per kg of maize. Specifically, the subsidies for maiz were increased from Bolivares 7.10 (USD 1.12) to USD 15.10 (USD 2.38) per kg.
Nota Bene: Accoring to UN Comtrade, no country imported the affected products to Venezuela in the year prior to the described intervention. Thus no affected trading partners were identified.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
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