Wednesday, November 16, 2005

Factoids on Free Trade -In 1980 Venezuela and Mexico had export levels that were similar, roughly US$ 20 billion in exports, mostly oil. Twenty five years later Mexico exports are expected to be between US$ 222 to 240 billion a year+, of which barely 11% is oil, Venezuela on the other hand will export around US$ 45 billion, still mostly oil. -In 1980, Mexico's GDP was US$ 4130, Venezuela's was US$3580. In 2004 Venezuela's was US$ 5800, Mexico's US$ 9600. -In 1987, the market capitalization (Worth of all stocks that trade in it) of the Mexican Bolsa and the Venezuelan Stock Market were roughly the same: US$ 10 billion. Today, the Mexican market is close to US$ 164 billion, while the Venzuelan Stock Market capitalization is less than US$ 5 billion. --Despite not believing in free trade, the Chavez Admisnitration will send a delegation of 130 people to the WTO meeting in Hong Kong. Curiously, the only expert in the Foreign Minsitry on the subject is not going. --Lost in the shuffle on Sunday, Chavez said that Venezuela had no use for the Andean Pact of which Venezuela is an integral part. The Andean Pact has been very good for trade, increasing it by a factor of three in the last 15 years between all the countries. However, Venezuela has had trouble competing with manufactured products versus Colombia and Peru. Can Venezuela compete better with Argentina and Brazil? +I had earlier used the number quoted by Fox on CNN yesterday, I have corrected it to reflect the Mexican Government's projection (US$ 222 billion) and a Wall Street Broker (US$ 240 billion) that I have a paper report for. 8:19:56 PM    comment []

Supreme Court stops expropriation, for now Slowing down the Law of the Jungle, The Venezuelan Supreme Court ruled yesterday that the Government had to suspend the exprpriation of the Polar silos in Barinas state. As described here in late September the Governor of Barinas State who happens to be Chavez' father, expropriated the plant without following any of the legal procedures established in the law. Of course, they can now go back and do things right to satisfy the Court, but at least they will have to follow the procedures established in the Constitution for expropriating something, which includes the National Assembly declaring it a public utility and paying compensation. 8:50:35 AM    comment []