The president of the Venezuelan-American Chamber of Commerce and Industry (Venamcham), Edward Jardine, does not believe that the inauguration of a new president in the Unites States will affect trade relations with Venezuela. Referring to the inauguration of Barack Obama as US President, Jardine said that this event is not going to have "any impact on bilateral trade." "They are two separate things."
The president of Venamcham said in an interview aired in private TV news network Globovisión that "the trade ties between the US and Venezuela have been very strong and have climbed dramatically in the last few years. Estimations suggest that in 2008 bilateral trade stood at some USD 70 billion."
When Jardine was asked about the strategies that the companies affiliated to Venamcham will follow in 2009, he replied that because of the restrictions imposed by the Foreign Exchange Administration Commission (Cadivi), "many of them will be obliged to use different ways to import goods and this will have an impact on the cost of products." Jardine expects "a significant increase in the inflation rate this year. We have heard that the inflation would range between 40 percent and 50 percent in 2009."
The president of Venamcham was also asked about foreign investments in Venezuela. He stated that foreign investments "are a little bit difficult. If I said otherwise I would be burying my head in the sand. However, the companies that are here (in Venezuela) are doing good businesses."
However, Jardine said that exchange control and other regulations hamper Venezuela's competitiveness. "There is a great deal" of measures "which are adverse to business. For instance, everything related to Cadivi. This is a lengthy process. Companies must use a lot of time and efforts to get foreign currency. They are forced to meet these regulations."
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