ANNOUNCEMENT 15 May 2009

In May 2009, the government of Venezuela announced altered domestic business conditions for foreign investors.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Website of the Venezuelan Ministry of Food, Occupied Cargill plant to guarantee production of price-regulated pasta (Ocupada planta Cargill para garantizar producci?n de pasta regulada): http://www.minpal.gob.ve/index.php?option=com_content&task=view&id=199&Itemid=4
Venezuelan Ministry of Food, February 27, 2009, Resolution DM/No 016-09 published in the Official Gazette of the Bolivarian Republic of Venezuela (Gazeta Oficial de la Republica Bolivariana de Venezuela, Numero 39.129, Lunes 02 de Marzo de 2009):
http://www.tsj.gov.ve/gaceta/marzo/020309/020309-39129-10.html (pages 367.712 to 367.713)
Reuters:
http://www.reuters.com/article/2009/05/15/us-venezuela-cargill-idUSTRE54E5P620090515
BBC: http://news.bbc.co.uk/2/hi/8053006.stm

http://uk.reuters.com/article/2009/08/20/venezuela-cargill-idUKN2053509020090820


Inception date: 15 May 2009 | Removal date: 14 Aug 2009
Still in force

FDI: Treatment and operations, nes

On May 15, 2009, the Venezuelan Minister of Food announced the temporary nationalisation of a pasta factory owned by the American company Cargill.
The justification of this measure is based on a decision taken in February 2009 (Ministry of Food, Resolution DM/No 016-09, February 27, 2009) imposing that 70 per cent of the pasta produced has to comply with price regulations. The Venezuelan authorities claimed that Cargill did not comply with this rule with 59 per cent of its production which were sold at an unregulated price.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A