Problems relating to Trade and Investment on Venezuela

15. Price controls
Issue	Issue details	Requests	Reference

(1) Growing Intensity of Government Control from Cost to Retail Price

- GOV, with no grasp or knowledge of either the Industrial Characteristics or Value Chain, carelessly compels/controls from cost, markup to final retail price. It had given serious damages to the economic activity of enterprises, driving them into a-sales-below-cost syndrome in certain cases. There is strong concern that the maintenance of business operation and employment would be more difficult.
- GOV's Price Control is implemented in a compulsory, haphazard manner without any solid plan whatsoever at unrealistic prices. It suppresses profitability of private sectors business. Business activity in the private sectors has been dwindling year after year.

- It is requested that GOV takes steps to:
-- steer economy into more realistic direction, and
-- give priority to a Systematic Treatment on the Foreign Exchange Issue, rather than Control, which is a Symptomatic Therapy.

- "A Law of Fair Costs and Prices (Gazette No. 39.715, 2011)" enacted under Presidential Enabling Act, Details not yet prepared (which is also problematic).

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