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business & economy

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Business & Economy Briefs

Venezuela's withdrawal from CAN causes ripples at home and abroad

by Patrick J. O'Donoghue --- VHeadline.com

Venezuelan President Hugo Chávez Frias's announcement that his country is leaving the Andean Community of Nations (CAN) has created ripples both at home and abroad.

Chávez Frias says Peru's and Colombia's signing of bilateral free trade agreements with the USA are the final death sentence of the CAN economic community because they contravene regional trade dispositions.

The Colombian Industry and Trade Ministry replies that CAN remains protected under its free trade agreement (FTA) with the USA because CAN's juridical ordinance is not subject to the FTA.

The Ministry says Colombia asked each CAN member country for information about sensitive products that could be affected by the FTA before signing.

Venezuela's decision to join the Southern Cone Economic Zone (MERCOSUR), Minister Carolina Botero says, has imposed on Colombia a very severe level of competition in the Venezuelan market vis-a-vis Brazil and Argentina.

Colombia is expected to ask Venezuela to explain its reasons for withdrawing.

Within Venezuela, the National Federation of Venezuelan Ranchers (Fedenaga) has complained about the withdrawal.

Fedenaga president, Genaro Mendez Contreras says it's a case of politics dominating over the economy.

"Fedenaga should have been consulted because we are an important sector ... the president should understand that Venezuela is not his personal fiefdom and must respect the opinions of those working and producing."

The political decision will have a knock-on effect on Venezuela's economy and that of member countries.

Fedenaga prefers CAN to Mercosur and fears competition from milk and beef- producing Uruguay.

Panama Canal expansion update

Also in this section:
Preparing for the canal expansion announcement
Upscale water thieves?
Venezuela quits the Andean Community
Business & Economy Briefs