Problems relating to Trade and Investment on Venezuela

1. Restrictions on entry of foreign capitals
Issue	Issue details	Requests	Reference

(1) Condemnation / Nationalisation	- Government of Venezuela (GOV) accelerated nationalisation of enterprises in various business fields, heavy industries, financing, retailing, etc. under its policy to socialize the nation, including foreign capital enterprises in these sectors, Amended Law on defence of people in the access to goods and services (INDEPABIS) promulgated in January 2010 simplified the GOV's nationalisation procedures so that GOV may nationalise private enterprises without advance declaration of condemnation. It is a matter of concern that hereafter condemnation or nationalisation abruptly takes place. In addition, since 2006, GOV decided to operate upstream petroleum industries only by a joint venture company (JVC) in which Venezuela's State owned petroleum company, namely, Petroleos de Venezuela, S.A. (PDVSA) owns more than 60% of equity interest. It is a risk that operation of the projects depends solely upon the PDVSA's intention. - GOV has accelerated condemnation or nationalisation of enterprises in key industries (natural resources, energy, steel, finance, foods, communication, etc.) In recent years, GOV has expanded the scope of condemnation or nationalisation into other sectors (distribution, etc.), including the idle properties. Measures must be taken to avoid such properties' requisition or nationalization.		- Amended Law on Defence of People in the Access to Goods and Services (INDEPABIS= (Instituto para la Defensa de las Personas en el Acceso a los Bienes y Servicios)
	(Action) - GOV restricts to less than 50% of total capital the private capital can invest into oil and petrochemical sector, and GOV prohibits such investment into iron ore development.

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