A SUPPLEMENT TO International Commerce Venezuela XHS . nnrasuvAmA statu DOCUMENTS SECTIOU A U.S. DEPARTMENT OF COMMERCE PUBLICATION A SUPPLEMENT TO International Commerce ... the weekly news magazine for world traders published by the Bureau of International Commerce and sold by the Superintendent of Documents, U.S. Government Printing Office, Washing- ton, D.C. 20402, and by Department of Commerce Field Offices for $16 a year. a market for U.S. products Venezuela DEPARTMENT C O M M P U B L I C AT U.S. DEPARTMENT OF COMMERCE Luther H. Hodges Secretary Franklin D. Roosevelt, Jr. Under Secretary Jack N. Behrman Assistant Secretary for Domestic and International Business Thomas G. Wyman Deputy Assistant Secretary for Domestic and International Business BUREAU OF INTERNATIONAL COMMERCE Eugene M. Braderman Director For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 Price 50 cents By Reynaldo Rodriguez BUREAU OF INTERNATIONAL COMMERCE \_ his study was prepared under the direction of Bernard J. Cahill, Chief of the West Coast Section, American Republics Division, Office of International Regional Economics. Mrs. Irene S. Johnson, statistician of the same Division, assisted in the collection and presentation of the statistical data. Photographs were obtained through the courtesy of the Creole Petroleum Corporation, Pan American Union, the Vene- zuelan Information Service, and W. R. Grace Company. Valuable assistance was rendered by the Commercial Section of the U.S. Embassy in Caracas and colleagues in the Bureau of International Commerce. n Foreword 1 His handbook assesses the Venezuelan market for imports, now expanding dy- namically, and provides practical information for U.S. exporters interested in selling there. Venezuela ranked eleventh in the world and second in Latin America as a market for U.S. products in 1963. Venezuela's total foreign trade — exports and imports — was the largest in Latin America in 1962, the most recent year of record. On a per capita basis, Venezuela ranks first in imports in Latin America. The outlook for increasing sales in this market is better than at any time since Venezuela's boom year of 1957. Venezuela has no shortage of foreign exchange — official reserves are at the highest level in 7 years. Venezuela's development plan is generating a greater demand for capital goods imports. At the same time the increased output of domestic industry and the imposition of restrictions are limiting the imports of many consumer goods, but total imports are expected to increase at about 4 per- cent annually. The Department of Commerce believes that sales prospects for a wide variety of U.S. goods in Venezuela are very good. United States exporters can increase their sales to Venezuela substantially, if they sell vigorously and on terms competitive with those of other supplying countries. Jbuf* • ■ m S < T3 2 | 5. - _) ■a o o w iS-J [ 3 al b terr apit terr - si 5 >_ ° •. | ° S ° W 2 % § % £ 5 s 2 - z 2 • • ii £ uj 2 uj a: a: w 1 > i • o CHAPTER I The Venezuelan Market U nited states exports to Venezuela amounted to $507.1 million in 1963, second highest in Latin America. On a worldwide basis, Venezuela stood eleventh in 1963 as a customer of the United States, thus: Canada $4,119* Indi Japan 1,697 United Kingdom __ 1,161 Federal Republic of Germany 1,103 Italy 880 Mexico 827 Netherlands France Belgium- Luxembourg Venezuela 804 761 678 522 507 * In millions. In spite of a long and steep decline in imports be- ginning in 1957, Venezuela continues to rank high as a market for U.S. products. When the 1957 decline began, U.S. exports there had reached a peak of $1,053.3 million. That year, Venezuela ranked first in Latin America and fourth in the world as a market for U.S. products. The ensuing precipitous decline in value of U.S. exports was due to: (1) An end of an economic boom that was nurtured by an unusual world demand in 1957 for Venezuelan oil and a subsequent period of economic readjustment, balance-of-payment difficulties, and political insta- bility. -*- LIFE, LIBERTY, AND THE PURSUIT OF HAPPINESS : Monument to the heroes of the War of Independence on Avenida de lot Pro'teret, Caracal. (2) A continued decline in the U.S. relative share of the Venezuelan market for imports vis a vis other foreign suppliers. (3) A commercial policy since 1959 by the Vene- zuelan Government strongly oriented towards the en- couragement of industrialization through tariff pro- tection for local industries. Now, the outlook for U.S. exports to Venezuela is more favorable because: (1) Exchange reserves of the Central Bank of Venezuela are at their highest level since 1957 and by far the largest in Latin America. They amounted on February 29, 1964, to $757 million. (2) The nation's capacity to import is expected to grow annually at 4 percent — -in line with the ex- pected growth of petroleum production and exports. (3) The accelerated program of economic develop- ment called for under the Four-Year Development Plan, 1963-66 is expected to generate an annual in- crease of 22 percent in imports of capital goods and of 3.5 percent in overall imports. (4) The growth of local industries is both closing out the market for some goods that were formerly imported — consumer goods — and creating a demand for raw materials and capital goods not formerly sup- plied or supplied in not so great a quantity. (5) Increased measures on the part of U.S. busi- ness and Government to increase exports offer pros- pects that the United States shall use its natural ad- vantages more effectively to retain and even increase its relative share of this growing market. DEVELOPMENTS AFFECTING IMPORTS Venezuela enjoyed unprecedented growth in 1950-57 with gross national product increasing 9.5 percent annually. The growth was spurred by an expanding world market for petroleum as a result, in large part, of unusual developments, such as the Iranian nationali- zation of oil and the Suez crisis. Venezuelan produc- tion and earnings from exports then rose rapidly and provided the stimulus for growth in other sectors of the economy. During this period, Venezuela enjoyed a very strong balance-of-payment position. Indeed, in spite of a 17-percent annual increase in imports, an increase in service payments, and withdrawal of some capital, balance-of-payment surpluses amounted to $421 million in 1956 and $501 million in 1957. Ex- change reserves of the Central Bank thus increased steadily to a peak of $1,445 million in 1957. The Venezuelan boom, fed on speculation centering around petroleum, came to an end when the crisis in the Middle East abated and new sources of petroleum came into production in other parts of the world. The rate of economic growth declined after 1957, as petroleum, construction, and other activities were cut back sharply. An economic recession followed and was made worse by the political instability that fol- lowed the overthrow of the dictatorship in 1958. Growth in the gross national product declined to 3 percent anually in 1958—61, and the annual surpluses in the balance-of-payment turned into deficits of 383.2 million in 1958, $465 million in 1959, $308.9 million in 1960, and $18.3 million in 1961. Exchange reserves of the Central Bank, which had stood at a record $1,445 million in 1957, were down to $533.6 million in 1961. While earnings from exports held up reasonably well, changes in the capital accounts were the principal cause of the deterioration in the balance of payments. Energetic measures were taken to revive the economy and to check the drain on exchange reserves through import duty hikes, quantitative restrictions, and ex- I t+ j ■ Xr\. t*^^ / )\ — ■-— '""Vi) J*. <^v/ / y* / n • V \ > / \ \ 1 I / ) %i\ , { ' '" ^ / / \> V\Y s~> 1 i \ X—b ( ( ' 1/ r - ^ / i V. ; y / 1 V— — / change controls. As a result, total imports fell sharply from $1.8 billion in 1957 to $985 million in 1962. Thus, these measures had the desired effect. By the end of 1961, the Venezuelan recession was at an end and its balance-of-payment equilibrium virtually restored. The economy displayed renewed vigor with gross national product up 6 percent in 1962 over that in 1961 and the balance of payments showing a surplus of 77 million, the first since 1957. Economic growth continued throughout 1963 with gross national product up 4 to 5 percent over that in 1962 and with exchange reserves of the Central Bank at $740 million, the highest since 1957. The outlook was further im- proved in December when presidential and congres- sional elections were held — in spite of threats of ter- rorist attacks — and a moderate left of center govern- ment was elected. During early 1964, there were increasing signs of confidence, the economy maintained a rapid rate of growth, and the nation's balance-of-payment position continued to improve. Total imports in 1963 are expected to record their first increase since 1957. United States exports to Venezuela reversed their downward trend in 1963 and increased 8 percent over those in 1962, climbing to $507.1 million. With equilibrium restored, a sound basis has been established for implementing the ambitious economic development goals called for by the Four-Year . De- velopment Plan. At the outset of 1964, the trade outlook was con- siderably improved. Exchange reserves of the Central Bank were at the highest level since 1957 and the highest in Latin America. In addition, the nation's capacity to import during the 1960's is expected to grow 4 percent per year, or equal to the growth of petroleum production and exports. At the same time, the accelerated program of economic development called for under the Four-Year Development Plan is expected to generate a 3.5-percent annual increase in overall imports. United States suppliers can participate fully in the growth of this expanding market provided they can meet the competitive challenge of other suppliers. FOUR- YEAR DEVELOPMENT PLAN In keeping with the goals of the Alliance for Prog- ress, which calls for rapid economic and social devel- opment, Venezuela's Four-Year Development Plan — Plan de la Nacion, 1963—1966 charts the development goals for the nation. The plan contemplates an 8-percent annual growth in gross domestic product. See table 1. Higher growth rates are to be achieved in other sectors of the econ- omy. Manufacturing is accorded high priority and is to grow 14 percent annually. The construction in- dustry, a large employer of labor, is to grow 15 percent annually and electricity, gas, and water production, 13 percent. The overall growth rate intended for the economy — 8 percent — is the same as that actually achieved in 1951—59. However, the petroleum sector is planned to grow 4-percent annually as compared to an actual growth of 6 percent annually during 1951—55. With a population growth estimated at 3 percent an- PRINCIPAL OILFIELD : The Tia Juana Field, Lake Maracaibo, continues to produce plenty of petroleum from its multiple wells. 4 nually, per capita income is expected to grow 5 percent per year. The plan calls for total investments of 28 billion bolivares, or $8.3 billion,' amounting to 20 percent of gross domestic product, over the 4-year period. Of this total, 14 billion bolivares, or 50 percent, is to be financed from private domestic savings, 10.3 billion bolivares, or 37 percent, from public domestic savings, and 3.7 billion bolivares, or 13 percent, from public and private sources abroad. The plan anticipates an increase of 3.5 percent annually in the total value of imports. See table 2. Imports of capital goods are to increase 22 percent annually and manufacturers in general 4 percent annually. U.S. SHARE OF MARKET The United States still supplies more than 50 percent of total Venezuelan imports. See table 3. The Federal Republic of Germany, Canada, Italy, France, and Japan have improved their share in this market. - The decline in U.S. share of this market reflects, in part, a return to the pre World War II trade pattern. With the recent strong recovery of Japan and Europe, there has been a resurgence of competition. Today, more than just an order book and pencil are required to sell in this market. Prices, credit terms, quality, services, and sales promotion are the principal factors affecting sales. FACTORS AFFECTING SALES The Venezuelan market is highly responsive to prices, and U.S. competitors seek to increase their sales in Venezuela by trimming prices whenever possible. For example, intensive price competition from other for- eign suppliers has reduced the U.S. share of sales for typewriters, adding machines, calculators, aluminum products, machine tools, turbines, elevators, hospital supplies, transformers, electric motors, radios, phono- graphs, industrial chemicals, agricultural equipment, and iron and steel mill products. It is important for the U.S. producer to minimize not only his factory cost but every other cost, including shipping and han- dling charges and middlemen's and distributor's mark- ups to assure a final price that is fully competitive. Many alert U.S. companies are already doing this and. of course, selling successfully in this market. VENEZUELA IMPORTS: HALF FROM U.S. Other Countries PRINCIPAL SUPPLIERS OF Japan 4.1 %^\. v VENEZUELAN IMPORTS, \. 1962 Netherlands ^^ 2.3% ^\^ Belgium-Luxembourg 2.5% s\v \ 11.0% / \ 3.0% Italy Federal Republic -- r 5.3 %^""\>c^\ / ^^^^ United States 52.5% 1, 8.7 % /y of Germany V^5%/ / / - — \/6.1 % / / Canada -""" United Kingdom 1 Converted at average rate of 3.61 bolivares equal $1. 2 In some eases, products Imported from these countries are produced by the foreign subsidiary of a U.S. firm, which, because of lower labor costs or other factors, is supplying the Venezuelan market from its sub- sidiary abroad. Next to price, credit and terms of payment usually are the most important factors in this market. While the cost of money is not so high as in other Latin American countries, it is generally higher than in the United States or in European countries. Commercial banks in Caracas charge 8 percent for prime loans. Improved economic conditions and increasing compe- tition in this market have brought about a general liberalization of terms by foreign suppliers. Equally important is the need to be selective in ex- tending credit terms. Many importers who. over the years, have carefully built up reputations for prompt payment expect liberal credit terms that are in keeping with their credit standing. Such importers object to a supplier who extends for his product line the same terms to all comers, regardless of credit standing. On the sale of machinery or other goods sold under medium- or long-term financing, the exporter should be prepared to assist actively the importer in obtaining financing. The exporter can be especially helpful with importers who require financing from such institutions as the Export-Import Bank of Washington and the Inter-American Development Bank. In addition, the supplier must frequently be willing to finance the importer or to obtain financing. The availability of export guarantees and credit insurance through the Export Credit Insurance Association makes available to U.S. exporters credit facilities fully com- parable to those offered by other exporting countries. For information on these facilities, see article in March 25, 1963 issue of INTERNATIONAL COM- MERCE entitled "U.S. Export Credit Insurance and Guarantee Programs" and Export-Import Bank of Washington publication entitled "Financing and In- surance for American Exports," 1963. The U.S. exporter has a distinct advantage in quality of product since, over the years, U.S. goods have estab- lished a well-earned reputation. In many cases, quality may offset other factors, such as a higher price. How- ever, quality is not an unmixed blessing because in some cases the U.S. product may be too advanced for this market and thus less desirable than the less effi- cient product of another supplier. For example, ma- chinery produced in the United States is frequently the most up-to-date available, capable of producing, at extremely high speed, a product of the highest stand- ard of quality. But such a machine may find little acceptance in the Venezuelan market. Even when pro- ducing for the mass Venezuelan market, the machine could satisfy the market in a relatively short time and then stand idle. Moreover, the high standard of the product itself is also likely to limit its distribution to One sfore in only U.S. chain of the luxury trade, further restricting the market. A slow speed, less efficient machine, producing a simple but well-made product, devoid of frills or gadgets, is likely to have acceptance in this market. Closely related to quality is the need to adapt the product to the characteristics of the market. The U.S. supplier may choose to leave his product unchanged and satisfy himself with the relatively small luxury trade or modify his product to the characteristics of the mass market. In any case, use of the metric system or of 60-cycle electric current throughout most of Venezuela but 50-cycle electric current in Caracas are examples of factors necessitating changes in the prod- uct. Willingness to adapt the product carefully to local conditions and to sell in small lots are factors that may determine the acceptance of the product. A product is often sold in Venezuela by reason of the availability and the quality of the service offered by the seller. The United States has advantages that frequently are decisive. For example, good telephone and telegraph connections permit careful attention to orders and follow through when problems arise. Over- night air service brings U.S. factory technicians quickly to Venezuela and permits prompt replacement of parts from the U.S. stocks. These advantages are, at times, nullified by the in- difference and neglect with which a few U.S. suppliers occasionally treat orders from Venezuela. Thus, the U.S. supplier who refuses to accept small orders, to extend competitive terms, to provide prompt and effi- cient service, and to entertain reasonable requests for product modification does exist and unfortunately creates a general impression that U.S. suppliers are less interested in foreign orders than their European and Japanese competitors and tend to regard foreign orders as marginal to their domestic business. Selection of an aggressive, capable representative who has the resources and standing to promote effec- tively the sale of the product is of the first importance. The type of representation will, of course, vary from company to company. See Chapter IV, Trade Practices. But a clear understanding with the agent and willing- ness to support him fully with technical assistance, Spanish literature, periodic visits, and other promo- tional assistance are equally important. Too frequently, the Venezuelan buyer does not know about the U.S. product, particularly in the less sophisti- cated markets outside Caracas. Immigration from Europe has been heavy in recent years, and technicians in Venezuelan plants are frequently of European origin. These Europeans frequently purchase products from the old country because of their unfamiliarity with so much as the name of a comparable U.S. prod- uct to say nothing of its characteristics and competitive advantages. These technicians and other Venezuelan buyers can be sold on U.S. products if told about the overall advantages. They can be reached through an aggressive and technically qualified representative who is capable of covering the national market. INDUSTRIALIZATION AND IMPORTS Although manufacturing grew 13.6 percent annually throughout 1950—57, manufacturing in Venezuela in 1959 was still relatively retarded as compared with that in countries of similar per capita income or even with the more advanced economies of South America itself. The availability of foreign exchange with which to purchase goods abroad did not, of course, impose the urgency for industrialization that existed in other Latin American countries. Balance-of-payment difficulties, unemployment, and greater awareness of the need for diversification were among the factors that prompted the new government in 1959 to intensify its program for industrialization. The Government declared a policy of according strong protection to local industries through import duties, import license requirements, and tie-in arrangements whereby local purchase, in a specified ratio, is required for each unit of product imported. In addition, the Government may grant import duty exoneration for imports of machinery and raw materials intended for use by local industries. See Chapter V, "Regulation of Imports." U.S. GOODS AND SERVICES : Men and materials from the -► United Slates help industrialize Venezuela. -- ■- S- _^*^ W*K t * / j ■ ■' / (i i i I SPOOL BANK : Venezuela's dynamic textile plants offer the U.S. textile machinery makers the pleasing prospect of good sales. Although the rate of growth declined with the reces- sion, manufacturing advanced annually at 6 percent in 1961, 12 percent in 1962, and 12 percent in 1963. Manufacturing has advanced in recent years at almost twice the rate of growth of the gross national product. By 1963, this sector comprised 12 percent of the gross national product compared to 11 percent in 1958 and 9 percent in 1950. The total value of manufactures in 1962 reached 3.9 billion bolivares, or $100 million at average selling rate of 3.96 bolivares equal $1. The value was ac- counted for as follows, in percent of total: Food 19.8 Paper and paperboard__ 2.4 Beverages 14.4 Petroleum products 10.5 Textiles 6.3 Chemicals 6.1 Metals 4.8 Graphic arts 4.8 Nonmetallic minerals 4.4 Wearing apparel 3.0 Rubber 2.8 The growth of industry has greatly increased the ability of the domestic economy to satisfy domestic demand. By 1962, Venezuela's domestic economy was supplying 62 percent of the total consumption of goods. Ninety-two percent of the total consumption of meat, 51 percent of the fish, 38 percent of the milk, cheese, and eggs, 97 percent of the fats and oils, and 97 per- cent of the sugar and confections are supplied by local industry. Similarly, local industries supply 98 percent of the beverages and virtually all of the Vehicles 2.0 Tobacco 2.2 Wood 1.3 Furniture .9 Hides and skins .9 Electrical equipment .4 Artisan manufactures 10.7 Miscellaneous 1.6 cigarettes, other tobacco products, wearing apparel, and furniture consumed in Venezuela. Even in con- sumer durable goods, local production now satisfies about 32 percent of the market as compared to 27 percent in 1959. Local manufacturers are now supply- ing or will soon be supplying the market for automo- biles, radios and televisions, and refrigerators, stoves, and other household appliances. Naturally, these developments have had an effect on the composition of Venezuelan imports. Many food, tobacco, beverage, rubber, textile, paper, and other products formerly imported in significant amounts have been closed out as local plants — frequently represent- ing U.S. capital participation or operating under licensing agreement with U.S. firms — have initiated production. At the same time, a need arose for differ- ent raw materials and machinery to supply the new industries. Data on the composition of Venezuelan imports, 1959—62, are somewhat distorted by the recession and the balance-of-payment difficulties but do reveal the changing composition of imports. Food products and beverages and tobacco indicate a gradual percentage decline while chemicals and crude materials show an increase. See table 4. The Four-Year Development Plan anticipates a continuation of the present trend in the composition of Venezuelan imports. Agricultural imports and im- ports of manufactured goods — exclusive of capital goods — are expected to decline annually at 9 and 5 percent, respectively, as these sectors of the local econ- omy grow increasingly self-sufficient. But, imports of capital goods are expected to rise 22 percent annually and total imports, 3.5 percent annually. CLASSES OF IMPORTERS The market for imports in Venezuela may be grouped into four major classes. First, there is the very large general class of com- merce and industry, which accounts for at least 85 percent of total imports. See table 5. Imports intended for this class of importers are ultimately destined for sale to small and medium businesses or retailers. Such imports are usually made through import houses, com- mission agents, brokers or other middlemen, the larger department stores, chain stores, and some fabricators. Imports for this class consist largely of raw materials and machinery and equipment but cover a wide va- riety of other imports, including food and other con- sumer goods. Second, the Government and its autonomous agen- cies are principal importers. Their purchases amounted to $52.4 million, or 5 percent of total imports, in 1962. The National Government is thus the single largest importer even though there has been a relative cutback in its purchases. Machinery and equipment are the single largest category of imports but construction materials and consumer goods are also included. See also section, Government Purchasing in Chapter IV. Third, the petroleum companies imported 866.9 million, or 7 percent of total imports, in 1962. With the no-new-concession policy of the Government lim- iting petroleum exploration, imports of the petroleum companies declined to 7 percent of all imports from the peak in 1957 when this category comprised 22 percent of total Venezuelan imports. The petroleum companies are authorized to procure much of their re- quirements directly from local Venezuelan sources or from agents of foreign suppliers in Venezuela. How- ever, many of the larger purchases are made through the head offices in the United States and England. The fourth class of importers comprise the mining companies. They imported $5.4 million worth of goods in 1962. Orinoco Mining Company and Iron Mines Company of Venezuela— subsidiaries of United States Steel Company and Bethlehem Steel Company, re- spectively — account for most of these purchases. As in the case of the petroleum companies, these firms are authorized to buy much of their supplies direct al- though some major purchases are made through the head offices in New York City. B/G INCH WORKS : Seamless steel pipe at San Tome de Guayana mill that uses steel from next door plant that smelts local iron ore. 9 CHAPTER II Basic Data On Venezuela r* I V CACIOtE M 4EAC4i V ENEZUELA, located approximately 2,000 miles south- southeast of New York and about 1,200 miles south- east of Miami, is situated on the northern coast of South America. 1 It is bounded on the north by the Caribbean Sea and the Atlantic Ocean; on the east by British Guiana, on the southeast by Brazil, and on the west and southwest by Colombia. Covering an area of 352,141 square miles, Venezuela is the sixth largest country in South America. It is one-third larger than the State of Texas. It has a coastline on the Caribbean Sea and the Atlantic Ocean of 1,748 miles. It has more than 1,000 rivers — the longest being the 1,240-mile long Orinoco, which is the eighth longest river in the world and the second longest in South America. VENEZUELA'S FOUR REGIONS The country has four main geographic regions: the Lake Maracaibo Basin, the Andean Highlands, the llanos, and the Guayana Highlands. (1) The Lake Maracaibo Basin is a V-shaped low- land, enclosed in a fork of the Andes Mountains. The population of the region is 908,733, of which 77 per- cent is urban. This region accounts for about three- fourths of Venezuela's petroleum output and contains some of Venezuela's best agricultural and cattle lands. The region comprises only 7 percent of the territory of Venezuela but contains 12 percent of the total pop- ulation. Maracaibo is the principal distribution center and is Venezuela's second largest city, accounting for 49 percent of the region's population. The region is only 23 percent rural. Climate is hot and humid, with the average temperature 83 °F. and the average hu- midity 77 percent in the city of Maracaibo. (2) The Andean Highlands extend north and south in an arc from Colombia in the southwest and then east and west along the coast to the tip of the Paria Peninsula in Sucre State. The population of this region totals 4,937,604 of which 57 percent is urban. While 1 The geography of Venezuela and n- effect on the Venezuelan market are described in more detail in the U.S. Department of Commerce publics, tion, Basic Data on the Economy of Venezuela, Overseas Business Reports. No. 63-132. October 1963. Other factors in the Venezuelan market are also dealt with in that report ; for example, climate, population characteristics, Income and conaumption patterns, and overall level of foreign trade. -4- VIGILANCE : Indian Chief Maraeay, Maratay, Venezuela. representing only 12 percent of Venezuela's land area, this region contains 65 percent of the population and provides most of the national income. Most of Vene- zuela's principal cities are located in this region, in- cluding Caracas, Barquisimeto, Valencia, Maraeay, San Cristobal, Cumana, and Merida. Venezuela's growing manufacturing industries are concentrated in Caracas and the nearby cities of Valencia and Maraeay. The region also contains some of Venezuela's best agricultural land, particularly around Valencia. The climate is mostly mild. In the higher elevations it is cool and moist, but in the lower elevations of the coastal area it can be very hot and humid. Caracas, situated at an elevation of 3,018 feet, enjoys very pleas- ant temperatures which range from an average of 66°F. in January to 71 °F. in May. Humidity is low. (3) The llanos are a broad, low, alluvial plain ex- tending from the base of the Andes east to the Orinoco River Delta. The population totals 1,440,371 of which 40 percent is urban. This region comprises 36 percent of the national territory but only 18 percent of the population. Maturin (54,250), Barinas (25,895), El Tigre (42,028), Guanare (18,476), San Fernando de Apure (24,443), and San Carlos (11,935) are the principal cities in this region. The climate is generally hot and dry, but torrential rains are common from April to October. During the rainy season, much of the land is under water. Cattle raising has been the principal pursuit of the region, but other agricultural activities are increasing in significance. (4) The Guayana Highlands is a sparsely settled region, lying south and east of the Orinoco River. It comprises 45 percent of the national territory, but its population of 225,000 amounts to only 3 percent of the national total. The region is rich in minerals, such as iron ore, gold, and diamonds, and also contains extensive forests. San Tome de Guayana is rapidly de- veloping as an industrial complex around a new steel industry and the possible development of an aluminum reduction and other metalworking industries. Ciudad Bolivar, however, is the principal distribution center of the region. Angel Falls, the highest waterfall in the world, is located in this region. The climate is gen- erally hot and humid. POPULATION AND PRINCIPAL CITIES Venezuela's population, according to the official census of February 26. 1961, was 7,555.799 as com- pared to 5,091,543 in the 1950 census. It was esti- mated at 8,255,456 on December 1. 1963. It has in- 11 TWIN TOWERS, SIMON BOLIVAR CENTER, CARACAS : Two of the buildings erected in the $300,000,000 construction of this center. creased 3.5 percent annually — one of the highest rates in the world. Population in each of the 20 States and other Federal entities is reported in table 6. Sixty-two percent of Venezuela's population lives in urban centers, i.e., in communities of 2,500 or more inhabitants. These communities consist of 227 centers. See table 7. Among the principal cities 2 is Caracas, the National Capital, the political, financial, cultural, industrial, and commercial center of Venezuela. The population of the metropolitan area of Caracas is 1.1 million per- sons, or 15 percent of the total population. Forty percent of personal disposable income and 60 percent of the nation's industrial production are concentrated here. The nearby town of La Guaira serves as its sea- port and the adjacent town of Maiquetia as the site of an international airport. A superhighway, i.e., an autopista, connects La Guaira and Maiquetia with Caracas. Maracaibo, the second largest city of Venezuela, owes its importance to the oil industry that has de- veloped on the periphery of Lake Maracaibo. It is the commercial center for the State of Zulia, the An- dean States of Merida, Tachira, Trujillo, and part of the State of Falcon. Barquisimeto, the third largest city, is strategically located both as a gateway to the Andean and to the 2 See, also, the appendix, Commercial Regions of Venezuela. llanos regions and as an important agricultural proc- essing center Valencia and Maracay are, after Caracas, the two principal manufacturing centers, having attracted many U.S. firms. These cities are situated in a rich agricultural region. San Cristobal is a coffee center and the gateway to Colombia. Cabimas and Ciudad Ojeda, situated on the east coast of Lake Maracaibo, owe their signifi- cance to the petroleum activities on the eastern shore of the Lake. Cumana, in the east, is the center of the sardine canning industry and an international port of some significance. Ciudad Bolivar, also in the east, is a major river port 270 miles from the mouth of the Orinoco River. San Tome de Guayana, in the east, is a new city, incorporating the former towns of Puerot Ordaz, San Felix, and Palua, and the center of a rapidly growing industrial complex that is built around min- eral and hydroelectric resources. Puerto Cabello, the country's second leading port, is the shipping center for the States of Lara, Yaracuy, and Carabobo while Puerto La Cruz, including Guanta and Barcelona, is the port and distribution center for the eastern region of Venezuela. Valera and Merida, in the Andean States of Trujillo and Merida, are agricultural distribution centers and popular tourist centers. Coro, in the State of Falcon, is a distribution center serving the Petro- leum refining centers on the Paraguana Peninsula. Maturin and El Tigre are petroleum centers in the east. 12 The principal cities and towns of Venezuela, 1961, were: Locations by State Population Metropolitan Caracas 1 ..Federal District and State 1,101,147 of Miranda. Maracaiho Zulia 421,166 Barquisimeto Lara 199,691 Valencia Carabobo 163,601 Maracay Aragua 135,353 San Cristobol Tachira __ Cabima9 Zulia Cumana Sucre Ciudad Bolivar Bolivar Puerto la Cruz Anzoategui Maturfn Monagas __ Ciudad Ojeda Zulia Puerto Cabello Carabobo _ San Tome de Guayana a __Bolivar Valera Trujilo Merida Merida Coro Falcon Barcelona Anzoategui 98,777 92,656 69,630 64,133 59,099 54,250 54,247 52,222 50,000 46,646 46,409 45,368 42,267 El Tigre .Anzoategui 42,028 1 Metropolitan Caracal includes important suburbs, such as El Valle. El Racreo, Petare, Maiquetia, Le Vega, Chacao, and Baruta. Caracas proper has a populution of 786,710. 2 Estimate. Source: Based on data of Ministcrio de Fomento. IX Censo Nacional de Poblicaciun, Resulltidos Preliminares for Centrus Poblados, 1962, Caracas. Seventy percent of the Venezuelan population is classified as mixed, 20 percent white, 9 percent colored, and 2 percent Indian. During the 1950's, immigrants arrived mainly from Europe — Spain, Italy, Portugal — and the West Indies. In the 60s, immigration has been insignificant in amount. All told, there are today 700,000 immigrants. About 80 percent of the population lives in the northern highland or coastal regions. The Maracaibo Basin, the llanos, and the Guayana Highlands are sparsely populated. Half of the population is under the age of 18. Fifty percent of the population was esti- mated as literate in 1958, but even more in recent years. The labor force is estimated at 2,570,000 and dis- tributed as follows, in percent of total: agriculture, 34; petroleum, 2; manufacturing, 11; commerce, 10; services, 21; and other activities, 22. Spanish is the official language and most of the pop- ulation is Roman Catholic. Life-expectancy is esti- mated at 63.5 years, which is well above the average for Latin America. Venezuela's culture has strong roots in Spain al- though modern Venezuela has a cosmopolitan back- ground of race and culture which blends traits of southern Europe, northern and eastern Europe, the African Negro, and the indigenous Indians. About 17,000 United States citizens live in Vene- zuela, most of whom are representatives or employees Wt' 'to? CARACAS : Its import houses, distributors, and agencies. 13 of U.S. firms operating there. The majority reside in Valencia, Caracas, Maracay, and Maracaibo, but a number live in oil camps and other petroleum instal- lations in the States of Zulia, Anzoategui, Monagas, Falcon, Guarico, and Barinas and the Territory of Delta Amacuro. Another large group of U.S. citizens lives near San Tome de Guayana in Bolivar State close to U.S. iron ore mines and the new steel mill. INCOME AND CONSUMPTION PATTERNS Per capita income in Venezuela, in terms of U.S. purchasing power, is $570 annually, the highest in Latin America. However, disparity of income is also greater than in most Latin American countries. It is estimated that 10 percent of the total number of fam- ilies in Venezuela receive 50 percent of the national income whereas 45 percent of the total number of families receive 10 percent of the national income. This wide variation in income distribution is, of course, a factor severely limiting the size of the market for most imports to about one-quarter of the total popu- lation. An estimate of the structure of annual family income distribution for 1962 is presented in table 8. Income varies greatly among different cities, regions, and different industries. Per capita income in the city of Caracas is probably the highest in the country. In Valencia and Maracay — cities with highly productive manufacturing industries - — and in petroleum centers such as Maracaibo, Ca- bimas, Lagunillas, and Punto Fijo the difference in per capita income as compared to Caracas is not ex- cessive. However, per capita income in cities, such as Barcelona and Cumana in the East and in smaller towns in the interior, are, in many cases, as much as 30 percent less than in Caracas. Living costs in these towns are less than in Caracas; therefore, the differ- ence in real income may not be too great. On a regional basis, per capita income is highest along the coastal mountain range, extending from Caracas west to Valencia and into the Maracaibo Basin. Per capita income in the Andean agricultural valleys and in the llanos are generally depressed. In the eastern coastal region around Barcelona, Puerto La Cruz, and Cumana income levels are most depressed. Per capita income also varies extensively among industries. The 35,000 workers employed by the pe- troleum industry are the highest paid. Their average total remuneration is 28,000 bolivares, or $7,500, per year. The workers in the iron ore industry and in the new manufacturing plants located in Valencia and Maracay also command generally high incomes. The average per capita income declines in other economic activities; in agriculture, the lowest incomes prevail. The campesino masses, which comprise 750,000 work- ers, are estimated to have annual incomes which range from 300 bolivares, or $90, to 1,000 bolivares, or $267. The medium monthly salary of empleadoes, i.e., white collar workers, in the city of Caracas in 1961 amounted to 638.3 bolivares, or $171.7. 3 For male anco Central de Venezuela; Memarie, 1952, Caracas. SUPERMARKET IS A MERCADO IN MARACAIBO : Distribution of foreign and local goods to western Venezuelans goes on day in and out. 14 15 h :L HIGHWAY CONSTRUCTION CREW : Men use low-cost maehniery in building new Venezuelan highway. employees, the medium monthly salary amounted to 733 bolivares, or $196, whereas for female employees it amounted to 396 bolivares, or $106. Salaries in cities such as Valencia, Maracay, or Maracaibo are only slightly below these averages, but are significantly less for other parts of Venezuela. Medium monthly remuneration in Caracas for employees in manufac- turing industries amounted to 677 bolivares, or $181, in construction to 696 bolivares, or $186, in commerce to 810 bolivares, or $217, in transport to 799 bolivares, or $214, and in services to 717 bolivares, or $192. Medium monthly salaries are considerably higher in industries which require high technical proficiency and have high productivity. Employees working for the foreign-owned petroleum and iron ore mines are the highest paid in Venezuela, receiving monthly remunera- tion of 2,905 bolivares, or $640, and 1,877 bolivares, or $502, respectively. Those employed in automotive assembly receive 1,425 bolivares, or $381, while those employed in the rubber industry receive 1,304 boli- vares, or $349, and those in banking and insurance receive 1,120 bolivares, or $298, monthly. Average wage rates in Caracas for manual labor range from 10 bolivares, or $2.67, per day for un- skilled labor to 30 bolivares, or $8.02, per day for skilled workers. Selected wage rates are reported in table 9. Wage contracts in Venezuela, as in most Latin American countries, provide for the semana corrida, which requires payment for Sundays — a holiday — if the worker has worked 6 consecutive days. Wage rates in the country are approximately 10 percent less than those in Caracas. Consumer expenditures, on a per capita basis, amount to $540 annually. See table 10. Expenditures, by type, follow to a great extent the usual pattern in developing countries. However, there are notable dif- ferences that reflect the Venezuelan consumer's grow- ing ability to allocate an increasing share of his income to items other than immediate and absolute essentials. Thus, the percentage of total expenditure allocated to food purchases in Venezuela (30 percent) is signifi- cantly less than in Ecuador (44 percent), Honduras (38 percent), or Peru (39 percent) but greater than in Canada (23 percent). Similarly, the percentage of total expenditures allocated for beverages or wearing apparel in Venezuela is proportionately less than in other developing countries. On the other hand, the percentage of total expenditures allocated to personal care and medical services in Venezuela (8.5 percent) is significantly greater than in Ecuador (5.3 percent), Honduras (4.4 percent) , or Peru (4.7 percent) . The percentage of consumer expenditures allocated to trans- portation (including automobiles), entertainment, and education and other services is greater than in most developing nations. Families in lower income groups — those with in- comes ranging from 600 bolivares, or $160, to 2,000 bolivares, or $535 — were found to allocate 47 percent of income for food, 11 percent for housing, 8 percent for wearing apparel, 5 percent for medical services and savings, 14 percent for social security, union dues, time payments on durable goods purchases and other amortization payments, and 15 percent for tobacco, recreation, gifts, and other similar expenditures. 4 4 Ministerio de Hacienda, Memoria, 1962, Caracas. 16 STRUCTURE OF ECONOMY Venezuela's gross national product in 1963 was esti- mated at $7.8 billion at current market prices. She follows Brazil and Mexico and ranks about even with Argentina, among Latin American nations, in the total value of goods and services produced. However, since Venezuela has but 8 million population, she is unex- ceeded in Latin America in per capita income, which is estimated at $570 annually, expressed in U.S. pur- chasing power. Throughout the 1950's, Venezuela's economy ad- vanced 8 percent anually. Growth abated in 1960—61 but accelerated again in 1962 to 6.3 percent and con- tinued to advance in 1963. See table 11. The Four- Year Development Plan calls for an annual increase of 8 percent in GNP in each of the years 1963—66. Petroleum plays a predominant role in the economy, accounting for almost one-third of the gross domestic product. Other sectors of the economy have advanced with petroleum mining. Manufacture, commerce, min- ing, and power have, in fact, increased their relative shares of the gross domestic product. Manufacture, in particular, increased its relative share of gross domestic product from 9 to 12 percent by 1963. But agriculture did not keep pace with the rapid growth of the econ- omy during the 1960's: its output increased 5.5 per- cent annually. This rate of increase has accelerated since 1958. The development of important iron ore deposits during the 1950's accounts for the rapid growth of the mining sector. See table 12. The Four- Year Development Plan intends to reduce Venezuela's dependence on petroleum by accelerating the rate of growth in other sectors. Thus, while petro- leum production is expected to increase annually at 4 percent, the manufacturing sector is to grow at 14 percent, agriculture at 8 percent, and services, includ- ing Government, at 7 percent. Venezuela plans to use her substantial earnings from petroleum to help finance development in these sectors. SIGNIFICANCE OF FOREIGN TRADE Exports account for 31 percent and imports for 14 percent of Venezuela's gross domestic product. Foreign trade, therefore, has a significant effect on the country's economy. The economy is particularly sensitive to de- velopments in petroleum from which comes most of the foreign exchange income. In value of foreign trade, Venezuela ranks first in Latin America. The total value of both its exports and imports in 1962 reached $3.6 billion as compared with $2.7 billion for second place Brazil, $2.6 billion for third place Argentina, and $2.2 billion for fourth place Mexico. With respect to imports alone, Venezuela in 1962 ranked in fourth place with total imports of $1 billion in 1962 as compared with $1.5 billion for Brazil, $1.5 billion for Argentina, and $1.4 billion for Mexico. On a per capita basis, Venezuela in 1962 ranked first with imports of $134.78 per inhabitant. See table 13. As a market for U.S. products, it ranks second in Latin America with U.S. exports in 1962 amounting to $468.3 million as compared with $790.2 million for first place Mexico, $424.8 million for third place Brazil, and $374.9 million for fourth place Argentina. In terms of exports, Venezuela ranks first in Latin America with total exports valued at $2.6 billion in 1962 as compared with $1.2 billion for Brazil, $1.2 billion for Argentina, and $937 million for Mexico. Per capita exports for 1962 in Venezuela amounted to $328 as compared with $66.72 for second place Costa Rica. Ninety-two percent of her total exports are derived from petroleum. See table 14. Of the petroleum ex- ports, two-thirds are exported as crude and one-third as refined petroleum products. Fuel oil is the major refined product exported, representing 14 percent of total petroleum exports. Gas oil, diesel oil. gasoline, kerosene, naptha, lubricating oils and greases, asphalt, jet fuel, and butanes are also produced. Iron ore is the second leading export, accounting for 5 percent of total exports. Coffee and cacao are the next two leading exports, but each accounts for less than 1 percent of the total. Diamonds, cement, tonka beans, fish products (mainly tuna and shrimp), bananas and plantains, balata, asbestos, and sugar are other but minor exports. A consistent excess of exports over imports is a characteristic of the country's merchandise trade. See table 15. This excess trade balance goes, in large part, to amortize and service foreign investments, which account for virtually all of the petroleum and iron ore exports. In addition, it is used to offset negative balances in freight, insurance, tourism, and other services as well as to amortize and service loans and other capital movements in the balance of payment. The rapid increase in earnings from exports has permitted a very significant increase in the overall value of imports. 17 ' ,s SIMON BOLIVAR : Statue of the liberator, Plaza Bolivar, Maraeay, capital of Aragua State, Venezuela. CHAPTER III Commodity Analysis 18 V ood and beverages, textiles, chemicals, iron and steel, fats and oils — these goods and many more are imported by Venezuela from the United States. 1 See table 16. MACHINERY AND TRANSPORT EQUIPMENT Machinery and transport equipment 2 form the largest single category of imports; these imports amounted in 1962 to $345.7 million, or 35.1 percent of all imports. See table 17. The high level of industrial growth and the emphasis accorded by the Four-Year Development Plan to economic development are expected, according to CORDIPLAN, to result in an average annual increase of 22 percent in imports of capital goods. Indeed, U.S. exports of this category in 1963 were up 15 percent over that in 1962. Only, a small amount of machinery and transport equipment is produced locally. These items are im- ported, principally from the United States. The U.S. exports of these items amounted in 1962 to 65 percent of the total. Other leading suppliers were the Federal Republic of Germany, United Kingdom, Italy, Japan, France, and the Netherlands. Import duties in this category are generally low, and importers may be exonerated from them when the goods are intended for use in industrial establishments. Machinery and equipment for mining, construction, and industry is, by far, the major group of imports, amounting, in 1962, to $112.5 million, or 32.5 percent of all imports in this category. Drilling equipment; water and gasoline pumps and accessories; dollies; elevators; excavating and leveling machinery and accessories; machinery and accessories for paper, graphic arts, textile, dairy, food-processing, sugar re- fineries, bakeries, tanneries, shoe, cigarette, and phar- maceutical industries; sewing machines; industrial air conditioners; refrigeration plant and freezers, air pumps; ovens and industrial furnaces; ball bearings; and gaskets and pressure regulators are among the lead- ing imports in this group. The United States, West Ger- 1 Data on Venezuelan imports are reviewed in this chapter. This review is not intended as a comprehensive market survey for specific products. But. comprehensive data on production, consumption! and imports may be obtained from market or industry reports in the U.S. Department of Com- merce. Those reports cover industries, such as food and beverage, textiles, chemicals, iron and steel, fats and oils. They have been prepared by the Foreign Service of the United States and may be obtained on request from U.S. Department of Commerce Field Offices or its Bureau of Inter- national Commerce. The data arise from Venezuelan sources except for those reported in table 16. The data in table 16 come from U.S. sources. They include 1963 figures, which are not now available from Venezuelan sources. 3 This comprises Section 7. Machinery and Transport Equipment, of Venezuela's tariff schedule. AUTOMOBILE ASSEMBLY PLANT, CARACAS : Importation of assembled vehicles is now prohibited in Venezuela. many, United Kingdom, Italy, Netherlands, and Japan are the leading suppliers. Imports of road motor vehicles are the second most important group in this category, amounting to S84.1 million, or 24.3 percent of all imports in this category. Passenger cars, station wagons, jeeps and agricultural vehicles, trucks, buses, chassis, and parts and acces- sories comprise this group. The United States is the major supplier, but West Germany and France supply significant quantities. As of January 1963. Venezuela has prohibited importation of assembled vehicles. As a further step in its program of promoting local man- ufacture, the Government requires that a designated proportion of the weight of an assembled vehicle be of local manufacture. In this way. the automotive parts industry is being encouraged. Electrical machinery, appliances, and apparatus is the third most important group, with imports amount- ing to $79.8 million, or 23.1 percent of all imports in this category. Generators: electric plants: electric motors; transformers, rheostats and electric current 19 controlling equipment; switchboards; electric batteries; headlights; bulbs, incandescent and fluorescent tubes; receivers and transmitters for radio, telegraph, tele- phone, television, and electronic equipment; tubes and valves for receiving and transmitting equipment; amplifiers; condensers; sparkplugs; X-ray equipment; electrical machinery for household uses; portable elec- tric tools; electric cables and wires; insulators and electric plugs are the major items of importance. The United States, United Kingdom, Switzerland, Italy, Netherlands, Sweden, and Japan are the major sup- pliers. Imports of office machinery in 1962 amounted to $25.8 million, of which accounting or statistical ma- chines, typewriters, calculators, adding machines, re- producing equipment, staplers, counters and parts and accessories are the principal imports. Competition from Italy, West Germany, and other countries have resulted in declines in U.S. market shares in type- writers, adding machines, and, to a lesser extent, cal- culators. But, the United States remains the dominant factor in the market for computers and business sys- tem equipment. The market for business system equip- ment in Venezuela is in its infancy and offers espe- cially good prospects for growth. Imports of power-generating machinery other than for electric power generation amounted in 1962 to $20.1 million. Diesel or semidiesel motors; internal combustion engines; steam-generating boilers; econo- mizers, condensers, superheaters, and other equipment for steam-generating plants, their parts and accessories account for 90 percent of all imports in this group. The United States, United Kingdom, and West Ger- many are the major suppliers. Tractors and tractor parts are also an important group in this category of imports, amounting to $12.4 million in 1962. The United States, United Kingdom, and France are among the major suppliers. Imports of metalworking machinery in 1962 amounted to $12.1 million and consisted of the fol- lowing items in percent of total imports: machine tools, 24; foundry machinery, 16; machinery for working metal, 32; and their parts and accessories, 28. DRILLRIGGER'S MASTERPIECE : Neither the heat nor humidity prevents men from drilling in Lake Maracaibo for the bountiful oil. 20 Aircraft imports in 1962 amounted to $6.8 million, of which 48 percent represented aircraft and 52 per- cent, parts and accessories for aircraft. The United States was the major supplier. Imports of agricultural equipment and implements in 1962 amounted to $5.7 million. The United States, United Kingdom, West Germany, and France are the major suppliers. Greater attention to this sector of the economy offers better prospects for importation of this equipment. The value of road vehicles other than motor vehicles imported in 1962 amounted to $2.7 million of which 46 percent represented bicycle imports and 20 percent bicycle parts.* The United Kingdom, Japan, West Ger- many, and Italy were the major suppliers. Imports of ships and boats in 1962 amounted to $2 million, of which motor launches or motorboats repre- sented 19 percent of all imports in this group; dredges and other ships and boats, 55 percent; and parts and accessories, 26 percent. The United States and the United Kingdom are the major suppliers of these items. Imports of railway locomotives and rolling stock amounted in 1962 to $937,337, consisting mainly of spare parts for railroad rolling stock. The United States and Italy are the main suppliers. The railroad system of Venezuela is very limited. The country de- pends mainly on existing highways and air facilities. MANUFACTURED GOODS Imports of manufactured goods 3 other than those covered in other parts of this chapter are the second most important category of imports; they amounted, in 1962, to $339.6 million, or 34 percent of all Vene- zuelan imports. See table 18. United States exports of this category to Venezuela were up 9 percent over that in 1962. This category comprises a wide range of product groups which are discussed briefly below. Manufactures of common, i.e., base metals is the most important group, amounting to $86 million, or 25 percnt, of all imports in this category in 1962. Iron or steel in its primary form; steel girders; steel bars, plates and sheets; steel wire rods and wire; steel pipes and tubes; tinplate; copper bars, rods, and strips; copper pipes and tubes; aluminum foil; and aluminum sheets and plates are the leading items of import in this group. The establishment of a Vene- zuelan steel mill, a decline in petroleum exploration, and keen competition from West Germany, the United 3 In this category have been combined, in this report, Manufactured Goods, Chiefly by Material and Section 8, Miscellaneous Manufactured Articles of the Venezuelan tariff schcdue. MAIQUETIA AIRPORT, VENEZUELA : The U.S. Travel Service, Bogota, Colombia, serves Venezuelans wishing to tour the United States. Kingdom, Belgium, Japan, Sweden, and Canada have reduced U.S. exports of these items to Venezuela in recent years. As a result, iron and steel pipes and plates, which are the major U.S. exports in this group, have been cut back sharply. Yarns, fabrics, and articles made of textile fibers excluding clothing are the next most important import among manufactured goods, amounting, in 1962. to $55.2 million, or 16 percent, of all imports in this category. Wool yarn and threads, mainly from Australia; cotton sewing thread from the United King- dom; cotton yarns from the United States and the United Kingdom; polyamide fibers, mainly from the United States; cotton fabrics from Japan. Italy, and the Netherlands; woolen fabrics from the United King- dom; artificial textile fabrics from the United States. Japan, and Italy; textile cords from the United States for use in tires; twine for fishing and fishing nets from Japan, Italy, and the United States: and special type fabrics are among the major imports included in this product line. The growth of Venezuela's textile in- dustry has reduced the market for finished textiles but has created new demand for textile raw materials. Metal articles are the third most important imports in this category, amounting to $21.5 million in 1962. Twisted wire, ropes, and cables: barbed wire: fence staples, nails, screws, nuts, and bolts: machetes: hand tools: kitchen sets, tableware, and other household 21 MARACAIBO BRIDGE : Structure 27,143 feet long at western end of Venezuela's Caribbean road, now down for repair of two spans. utensils; cutlery, knives, and pocket knives; razor blades; locks, padlocks, keys, fittings, and other hard- ware articles of steel or copper; kitchen ranges and stoves; pressure lids; metal springs; electrodes, rods or tubes, rivets; military sidearms and ammunition are the major imports in this product line. The United States, United Kingdom, Canada, Belgium, West Ger- many, France, and Japan are the major suppliers. Imports of miscellaneous manufactured articles in 1962 amounted to $46.3 million, accounting for 14 percent of all imports in this category. Refrigerators and freezers; buttons; tablecloths and household orna- ments of plastic materials; spectacles; children's wheeled toys, dolls, electric toys, and other games and toys; pens, ballpoints, writing and drawing pencils, and lighters; phonographs; recording apparatus; and books, magazines, maps, banknotes, certificates, and other printed matter are the principal imports in this product line. The United States, West Germany, United Kingdom, Italy, Netherlands, France, and Hong Kong are major suppliers. Paper, cardboard and paperboard, and their manu- factures are imported in significant quantity, amount- ing to $25.8 million in 1962. Newsprint and paper for books are the two major imports, but large quan- tities of waterproof paper; paper and cardboard and paperboard coated, impregnated, gumproof, or trans- parent; paperboard for building purposes; stencils, packing tape, and gummed paper and packing and writing paper are also imported. The United States, Canada, Sweden, and Norway are major suppliers of this market. The market for this product group has grown at an even faster pace than the growth of the economy. While the domestic industry now satisfies most of the demand for kraft and other coarse paper, all of the newsprint, 84 percent of the printing and 22 writing paper, 52 percent of the paperboard, and 12 percent of the specialty paper are supplied by imports. Further planned development of the paper industry could result in an additional cutback of imports in this group. Imports of professional, scientific and measuring instruments, photographic and optical equipment, and watches and clocks amounted to $25 million in 1962. Medical, dental, surgical, or veterinary instruments; Surveying and navigation instruments; apparatus for measuring of checking; teaching apparatus; films and plates for radiography and photography; sensitized paper, motion picture films, and watch movements are the principal imports in this product line. The United States and West Germany are the major suppliers of scientific and medical instruments and of photographic and motion picture supplies. The United States, United Kingdom, and Mexico are the major suppliers of mo- tion picture films and Switzerland is the major supplier of watches and clocks. Nonmetallic mineral manufactures imported in 1962 amounted to $18.4 million. Sheet and plate glass; safety glass; glass in semi-manufactured form; glass containers; glass, pyrex, and crystal tableware; articles of glass for laboratories; table and kitchen ware of pottery; rock wool and other mineral compounds; water filters; carbon and graphite products; friction belts; asbestos piping and building materials; bricks and paving slabs of refractory earths and refractory cement and mortar comprise the major imports. The United States supplies most of these imports, but Belgium and France are the major suppliers of as- bestos building materials, the United Kingdom of water filters, West Germany of crystal tableware, and Japan of pottery. Imports of clothing and clothing accessories in 1962 amounted to $7.6 million. Protective gloves for work- men, cotton handkerchiefs, fiber hats, bathing suits, cotton gloves, and leather belts are the major items. Protective duties and import restrictions limit the market to specialty items not produced in Venezuela. Among the principal suppliers are Hong Kong, Italy, and the United States. Rubber manufactures imported in 1962 amounted to $7.2 million, of which tires and tubes for automo- biles, conveyor belts, and rubber carpets or mats for automobiles comprised 60 percent of all imports in this product line. The United States and the United Kingdom are the major suppliers. Protective duties and import license requirements limit imports mainly to special items or items in sizes not locally produced. Leather and leather manufactures were imported in the amount of $5.5 million, of which sole leather, cattle and horse hide, and patent and metallized leather ac- counted for over 65 percent of imports in this product line. Principal suppliers are the United States and the United Kingdom. Imports of prefabricated buildings and of plumbing, heating, and lighting fixtures and fittings amounted, in 1962, to $5.1 million, of which electric lamps, cop- per taps, sanitary fixtures and fittings (not of metal) accounted for over 60 percent of all imports in this product line. Due to impor restrictions, imports of prefabricated buildings have declined to relatively in- significant amounts and imports of fixtures are limited to items not produced locally. The United States, West Germany, Hong Kong, Italy, and Japan are the leading suppliers. The wood and cork manufactures excluding furni- ture amounted to $2.4 million, of which veneer sheets; boards of wood and other vegetable fibers: barrels, casks, and kegs; and cork manufactures accounted for 60 percent of all imports in this product line. The United States is the leading supplier of barrels, casks, and kegs. France, Italy. Finland, and the United States are major suppliers of boards and of veneer sheets and Spain and Portugal of cork manufactures. Of travel goods, handbags, and similar articles the imports amounted to $1.6 million in 1962. of which suitcases, purses, wallets, and handbags were the lead- i^^ssfTT r c SAN TOME DE GUAYANA STEEL MILL : One of the largest steel mills in Latin America to go from row iron ore fo finished products. 23 CANNERY ABOVE AND FISH BELOW : Fish from the surrounding eastern Venezuela waters are canned at a Cumana waterfront plant. ing items. The United States, West Germany, and Japan are the leading suppliers. Furniture imports totaled $1.1 million in 1962, of which imports of metal furniture is the leading item, accounting for one-fifth of all imports in this product line. Most of these imports come from the United States and Italy. Silver, platinum, precious stones, and jewelry im- ports amounted to $1.1 million in 1962, of which chains, links, and wristbands are the principal items. West Germany, Belgium, Hong Kong, and Japan are the principal suppliers. Imports of footwear in 1962 amounted to $517,000, of which workmen's boots accounted for 90 percent. Czechoslovakia and Japan are the principal suppliers. Protective duties and other measures greatly restrict imports of wood manufactures, travel goods, furniture, footwear, silver, platinum, precious stones, and jewelry. FOOD PRODUCTS Food products 4 ranked as the third most important category of imports, amounting to $113 million, or 10 percent, of total Venezuelan imports in 1962. See table 19. Dried and dehydrated milk and wheat are by far the two major imports, accounting for 23 and 17 percent, respectively, of total food imports in 1962. Dietetic or medicinal food products, hatch- ing eggs, gourd type cheese, apples, grapes, kidney and French beans, barley, fruit pulp and paste, un- milled corn, peas, dried fruit, fishmeal, pears, fruits in syrup, meat extracts, hops, and corn flour are the other leading imports in this category. These imports, including dried and dehydrated milk and wheat, repre- sent three-quarters of all food imports. Although Venezuela has extensive agricultural re- sources, its farms were not keeping pace until 1959 with the growth of national income; as a result, the country was growing increasingly dependent upon im- ports of food products. Since 1959, under the stimulus of a protective tariff, domestic price supports, subsi- dies, guaranteed markets, and other incentives offered by the Government, agricultural production has been spurred and imports of food products have declined sharply. Poultry, eggs, milk and cream, cheese, other dairy products, canned foods, fruit and fruit juices, corn, cotton, flour, and animal feeds are among the imports that have declined as local production in- creased. The Government intends to encourage and protect the development of the food products industries. The Four-Year Development Plan anticipates a fur- ther increase in Venezuela's capacity to supply do- mestic requirements of food products. Indeed, the plan foresees steady decreases in imports of agricultural products, except for wheat, fluid milk, and peas. Never- theless, there should continue to exist a small but lucrative market for luxury food products which are not manufactured in Venezuela. The United States is the largest supplier of food products, but Canada, Denmark, and Belgium-Luxem- bourg compete strongly in the market for dairy prod- ucts. Canada also competes in the market for wheat. While price is an important competitive factor, quality and consumer preferences appear to be equally sig- nificant. Importers of a few essential products — whole or powdered dry milk, dietary or medicinal milk, wheat, dried beans, black beans, peas, and fishmeal — are granted a subsidy of 1.15 bolivars per dollar of im- ports. Duties on essential foods that are not produced in sufficient quantities are low or duty free. Luxury goods are generally subject to moderate rates. Foods that can be produced by Venezuela's food industries are subject to prohibitive duties or import license re- quirements, or tie-in arrangements. CHEMICAL PRODUCTS Imports of chemical products 5 are the fourth most important category of imports into Venezuela, amount- ing in 1962 to $110.7 million, or 11 percent of all Venezuelan imports. See table 20. United States ex- * This group comprises Section O, Food Products, of Venezuela's tariff schedule. 5 This comprises Section 5, Chemical Products, of Venezuela's tariff schedule. 24 ports of chemicals to Venezuela in 1963 stood at $47.6 million, down 9 percent over that in 1962 and well below the $60.4 million exported in 1959. Although the domestic chemical industry is expanding, particu- larly petrochemicals and pharmaceuticals, Venezuela will continue to rely on imports of many chemical products which cannot be produced locally. In 1962, the United States supplied 57 percent of total Venezuelan imports of chemical products. There has been a slight but steady decline in U.S. market share since 1959. West Germany, United Kingdom, Switzerland, France, and Italy are among the major competitors in this market. Import duty rates on chemical products are gen- erally low. However, for products that are manufac- tured locally, duties may be prohibitive or import licenses may be required. Pharmaceutical products are subject to price controls. Pharmaceutical specialties are subject to the terms of Venezuela's pharmaceutical regulations, which require prior registration of the product with the Ministry of Health and Social Assist- ance. (See U.S. Department of Commerce publication, Pharmaceutical Regulations of Venezuela, World Trade Information Service, Part 2, No. 57-112). Fertilizers, insecticides, fungicides, and herbicides are also subject to special sanitary requirements. Chemical products comprise the following groups. Medicinal and pharmaceutical products comprise the most important group of imports, amounting, in 1962, to $31.7 million, or 29 percent of all imports in this category. Medicaments for fighting infectious, contagious, and parasitic diseases; medicaments for parenteral, i.e., injectable use; penicillin, streptomycin, and other antibiotics; medicaments for external use; serums, vaccines, and bactereological products; or- ganotherapeutic products; medicaments for internal use; medicaments for veterinary use; curative prod- ucts and human plasma are among the major items of imports. The industry is growing rapidly and many of the laboratories — frequently representing U.S. firms — are developing their activities beyond packaging. Population growth, improved living standards, and greater emphasis on social welfare have resulted in an average annual growth of 10 percent in domestic consumption of pharmaceuticals in recent years. Miscellaneous chemical materials and products com- prise the next major product group in this category, amounting, in 1962, to $31.1 million. Artificial ther- moplastic and thermostable resins; disinfectants; fungicides, herbicides, raticides, and insecticides; VENEZUELAN SISAL : Locally grown sisal is fabricated into rope • in Venezuela and exported to a Boston, Massachusetts, company. semimanufactured plastic materials; preparations for use in petroleum industry; activated carbon; solvents and diluting preparations; brake fluid; antiscaling compounds; water treating preparations; casings for sausages; and glues and dressings are the major items in this group. Imports of organic chemicals in 1962 amounted to $14.2 million, of which nitrogen organic compounds, alkyl-benzene, organic acid derivatives, salts of organic acids, freon, glycerin, sulfate of turpentine, trichlor- ethylene, aldehydes and ketones, isoproyl and other alcohols, alcohol derivatives, organic acids and an- hydrides, and rennet accounted for 55 percent of all imports. The United States is the major supplier, West Germany and the United Kingdom are other suppliers. In 1962, imports of inorganic chemicals amounted to $8.6 million, of which sodium phosphates, lamp- black, sodium carbonate, phosphoric acid and phos- phoric andrydride, calcium carbide, chloride of lime, lead oxides, aluminum sulfate, copper sulfate, and sodium hydroxide represented 63 percent of all im- 25 ports in this group. The United States, United King- dom, and West Germany are the major suppliers. Imports of essential oils, perfumes, and flavoring products amounted, in 1962, to $6.9 million, or 6 per- cent, of all imports in this category. Synthetic ma- terials and aromatic concentrates, nonalcoholic, for use in the beverage industry accounted for 63 percent of all imports in this group, synthetic materials and aromatic concentrates and other mixtures of essential oils accounted for 17 percent, essential vegetable oils for 13.4 percent, and artificial extracts and concen- trates for flavoring food and other preparations for 13 percent. With the growth of the food and beverage industries in recent years, imports have been rising. Imports of pigments, paints, varnishes, and related products amounted to $4.5 million. Titanium white, mineral colors, in powder form; printers ink; prepared enamels and varnishes and coloring materials account for 70 percent of all imports in this group. The indus- try is well established in Venezuela, and imports are limited mainly to products not produced locally. The United States, Switzerland, and the United Kingdom are the major suppliers. In 1962, imports of manufactured fertilizers amounted to $4 million, including ammonium sulfate, 15 percent, phosphates, n.e.s., 13 percent; superphos- phates, 11 percent; potassium sulfate of up to 96 per- cent purity, 7 percent; and mixed fertilizers, 5 percent. The petrochemical plant at Moron plans to increase its production of certain chemical fertilizers, thus reduc- ing the need for imports. The United States and West Germany are the major suppliers. Imports of coal tars and dyestuffs amounted to $2.6 million, of which West Germany, Switzerland, and the United States, in that order, are the major suppliers. Millions of Dollars 300- WHAT VENEZUELA BUYS ABR0AD- AND WHAT THE U.S. SELLS HER Total Imports Imports from United States Machinery & Manufactured Food transport goods Products equipment Chemicals Crude Mineral fuels Animal & Beverages Miscellaneous materials & lubricants vegetable & tobacco commodities oils & fats & transactions Venezuelan Imports and Imports from the United States, by major commodity sections, 1962 26 HOME FOR THE SALESMAN : Home for 'our man in Caracas' who works from 9 to 6 with 2 hours for lunch, Monday through Saturday noon. Perfumery products, cosmetics, soaps, and cleansing and polishing preparations were imported to a value of $2.3 million. Sulfonated and sulfated oils and greases, alcohols and waxes, for polishing porcelain, wood, metal, glass, and other surfaces are the two major imports. The United States and West Germany are major suppliers. The domestic industry is well established, and imports are generally subject to very high duties. The value of imports of dyeing and tanning extracts and synthetic tanning materials amounted to $2.1 million, consisting mainly of synthetic tanning ma- terials, artificial preparations for tanning, quebracho wood tanning extract, and chestnut wood tanning ex- tract. Imports of explosives in 1962 amounted to $2 mil- lion, of which dynamite and other explosives, blasting fuses, cords, detonators, and percussion caps were the principal imports. The Four-Year Development Plan calls for the establishment of an explosive plant that when established should reduce imports of this prod- uct. Mineral tar and crude chemical products derived from coal, petroleum, or natural gas were also im- ported, being valued at $480,531. Mineral tar, ben- zene, and benzine were the major items. CRUDE MATERIALS, INEDIBLE, NOT FUELS Imports of crude materials, unfit for human con- sumption except fuels 6 in 1962 amounted to $40.6 million, of which the United States supplied $15.7 million, or 39 percent. See table 21. Oilseeds — mainly copra, soybean, and sesame — and crude rubber, including synthetic, are the two major imports, amounting to 32 and 18 percent, respectively, of all imports in this category. Other leading imports in percent of total imports in this category were: me- chanical and chemical paper pulp, 16; nonmetallic minerals, 8; textile fibers, 7; and cotton, 5. In spite of the balance-of-payment problem during 1959-62, imports in this category declined but very little. In fact, imports of oilseeds, synthetic rubber, and paper pulp increased. Imports in this category are destined for use in newly established industries, such as rubber, paper, and edible oil. The short-term outlook for this category is favorable. However, the proposed production of synthetic rubber and of paper pulp in Venezuela, while still somewhat in the distance, could eventually make Venezuela self-sufficient in these items. The United States is a major supplier of paper pulp, synthetic and regenerated rubber, soybeans, cotton (ginned, linters, or waste) , asphalt, white or pitch pine, seeds for sowing, infusorial earths and clavs, iron and steel scrap, and raw chicle gums. Import duty rates for crude materials included in this category are relatively low and there are but few re- strictions. Where the crude materials are intended for use by local industries, the Government may ex- tend import duty exoneration to the importer. MINERAL FUELS, LUBRICANTS Imports of mineral fuels and lubricants ' in 1962 amounted to $9.9 million, of which the United States supplied 66 percent. See table 22. Lubricating oils 6 This comprises Section 2, Crude Materials Unfit for Human Consumption. Except Fuels, of Venezuela's tariff schedule. 7 This comprises Section 3, Mineral Fuels. Lubricants and the Like, of Venezuela's tariff schedule. 27 NATURAL GASOLINE PLANT : U.S. made compressors give first- clots, continuous service under exacting working conditions. and blending agents for mixing with gasoline are by far the two leading imports, accounting in 1962 for 39 and 26 percent, respectively, of all imports in this category. Other major imports in 1962 were, in percent of all imports in this category: coke of coal or lignite, 19; paraffin, 6; vaseline, 1; and pitch, resin, petroleum coke, and other petroleum byproducts, 4. These prod- ucts comprised 96 percent of all imports in this category. Petroleum imports have declined with the expansion of the refining industry and are now limited to items not produced by Venezuela's well-established petroleum refining industry. Imports per year of coke for the steel mill amount to 100,000 metric tons and may in- crease to 250,000 metric tons. At present, all of the coke is imported from England. The United States supplies the bulk of the petroleum products imported. Import duties are low for those essential products that are not produced locally. Import duty exoneration may be extended to importers if the products are destined for use by local industries. OILS AND FATS Imports of animal and vegetable oils and fats 8 in 1962 amounted to $5.8 million, of which the United States supplied $3.8 million, or 65 percent. See table 23. Cottonseed oil, animal tallow, and corn oil are the three major imports in this category, accounting for 30, 17, and 16 percent, respectively, of all imports in this category. Other major imports in this category in 1962, were, in percent: hydrogenated fats and oils, 10; olive oil, 7; linseed oil, 4; soybean oil, acidic oils, and oils of animal origin, 2. These items account for 93 percent of all imports in this category. Domestic production consists of sesame, cottonseed, and coconut oils and small quantities of tallow and ani- mal grease. Sesame and cottonseed oil production has about doubled since 1958, standing at 23,181 and 2,358 metric tons, respectively. Production of coconut oil and animal oils has remained fairly stable. However, do- mestic production has not kept pace with demand, and imports have been increasing in recent years. The United States has maintained its share of the market in this category. It is the major supplier of ani- mal oils and fats, cottonseed oil, hydrogenated fats and oils, and acidic oils. The Netherlands is the major sup- plier of linseed and soybean oils, Belgium of corn oil, and Spain and Italy of olive oil. Import duties on these items are moderate. However, tie-in arrangements, requiring importers to purchase in a specified ratio a certain amount of the local product for each unit imported is required for imports of ani- mal oils. BEVERAGES AND TOBACCO Imports of beverages and tobacco 9 in 1962 amounted to $5.7 million, of which the United States supplied $1.5 million, or 26 percent. See table 24. Imports in this category have shown a steady decline as local produc- tion expanded rapidly with the aid of Government assistance. Whisky and raw tobacco accounted in 1962 fi This comprises Section 4, Animal or Vegetable Oils and Fats, of Venezuela's tariff schedule. 9 This comprises Section 1, Beverages and Tobacco, of Venezuela's tariff schedule. 28 GASOLINE PUMP : On fhe Paraguana Peninsula at Punta Cardan, one of the world's largest petroleum refineries. for 30 percent each of all imports in this category. Other leading imports in this category in 1962 were, in percent of total: grape must, 10; champagne, 8; clarets and other red wines, 8; and white wines, 4. With official encouragement of the local industry, production has grown rapidly. Some exporters, in an effort to leap the tariff wall, have found it necewary to establish plants in Venezuela or to enter into licensing agreements with Venezuelan firms. Internationally known brands of gins, brandies, vodkas, liqueurs, wines, champagnes, whiskys, and cigarettes are now being produced under licensing arrangements or by local subsidiaries of foreign companies. The United States is not a significant supplier of beverages to Venezuela, although small quantities of corn or barley whisky are imported for consumption, mainly by the U.S. community. Venezuelans, them- selves, seem to prefer a Scotch type whisky. However, the United States supplied about three-quarters of the raw tobacco imported in 1962. Imports of raw tobacco have virtually ceased as Venezuela has developed suc- cessfully a leaf comparable to the Virginia leaf. Im- ports of cigarettes and tobacco manufacturers — a major import in past years — have virtually been eliminated with the development of the local industry. As a result, U.S. exports in this category declined from SI 1.2 mil- lion in 1959 to $223,000 in 1963. The Government imposes prohibitive duties, im- port license requirements, or other highly protective measures on those products that are produced by local industries. On luxury products not produced locally, the rates are moderate. MISCELLANEOUS COMMODITIES Imports in the category of miscellaneous commodi- ties and transactions 10 amounted in 1962 to S13.6 million of which the United States supplied 36 percent. See table 25. This category consists of the following items, in percent of total: live animals, not intended for food, 2: personal luggage of travelers, 40; com- mercial samples of salesmen. 3: gold bars and ingots, 38; and coins and banknotes, 17. 10 Imports in this category correspond to Section 9. Live Animals, n.e.s. ; Goods Subject to Special Formalities; Cold and Other Valuables, of the Venezuelan tariff schedule. 29 CHAPTER IV Trade Practices In I^ince nearly 1.3 million of Venezuela's 8 million per- sons live within the metropolitan area of Caracas and another 3,891,000, or 51 percent, of the total popula- tion live within the Central region of Venezuela, Ca- racas is the major distribution center of the country. See appendix, Commercial Regions of Venezuela. Most import houses, distributors, or agencies have head offices in Caracas, and many of these have branch of- fices, warehouses, and other facilities which are ade- quate for nationwide distribution of the product. Most exporters prefer to treat Venezuela as an integrated market through an exclusive representative in Caracas. However, since Maracaibo city and its environs has 793,754 persons, or 11 percent of the total population, and has a natural marketing area that comprises 2.3 million, or 30 percent of the total population, some ex- porters find it preferable to establish an independent representation in Maracaibo covering the Western region. In addition, the Puerto la Cruz-Barcelona- Cumana urban area has a population of 551,995 per- sons, or 7.3 percent of the total population, and serves a natural marketing area in the Eastern region of 1.4 million, or 19 perecent of the population. MARKETING CHANNELS Import channels may be classified into four principal types: import houses, commission agents, direct im- porters, and branch houses or subsidiaries. The import houses frequently are large and well- financed concerns that import on their own account, although they will agree to represent an exporter on a commission basis. Forty of these are major dis- tributors that have a large sales staff, warehouses, and 30 'NATIONAL PANTHEON | Final retting place for Bolivar and other yreul mon, Caracal, Venezuela other facilities throughout the country. They sell to regional wholesalers or direct to retail outlets through- out the country. Other import houses are considerably smaller and may not have the standing or facilities to provide nationwide representation. Some of the larger houses handle an extensive line of products, which in fact does not permit them to concentrate their promo- tional and other activities on any single line. Other import houses specialize in the distribution of similar but not competitive products. All of these have obvious advantages and disadvantages which must be carefully weighed in selecting a representative. The commission agent does not sell on his own ac- count but on behalf of his principal, the exporter. He sells to wholesalers and retailers and obtains a commis- sion for his service. As in the case of the import house, care must be taken in the selection of an agent since some do not have the standing, the facilities, or the technical qualifications to provide good representation while others may handle too many products or prod- ucts that are competitive with those of the exporter. Frequently, the best and preferred type of agency is the one that specializes in a small group of similar but non- competitive products. The agent is paid a commission of 2.5 to 10 percent, depending on the product line. Sales are also made direct to the ultimate con- sumer, such as the petroleum companies, iron ore com- panies, large department stores, large chain stores, large agricultural estates, fabricators, and public utilities. Another method is to establish a local subsidiary or branch. This method assures the exporter of efficient and aggressive promotion and permits him to retain control over his product. Some of the larger U.S. corporations have such representation. GOVERNMENT PURCHASING The National Government is by far the largest single importer with purchases abroad in 1962 of $52.4 mil- lion, or over 5 percent of all imports. Government entities generally invite tenders for supplies and mate- rials and for the execution of Government projects. However, the Finance Law of March 17. 1961. calling for tenders in Government purchases permits exemp- tions in the case of purchases under 10,000 bolivares. or $222.22. and in other specified circumstances. The law also requires that firms submitting bids on Govern- ment tenders must be legally organized in the country. Thus, foreign firms wishing to participate in Govern- 31 ment contracts must do so through qualified local representatives. Venezuela's Public Credit Law of July 23, 1959, re- quires that Government agencies obtain congressional approval of all loans exceeding the agencies' current budget or extending beyond the budget year. "Buy Venezuela" legislation was established by De- cree No. 512 of January 13, 1959, which requires that all Government agencies purchase from domestic sources whenever possible, provided the domestic price is not over 25 percent greater than that of the imported product. When the imported product must cope with freight, insurance, and custom duties, a Venezuelan supplier has a significant advantage in sales to Govern- ment agencies. There is no central procurement agency; the various ministers and agencies of the Government generally make their own purchases. The ministries or agencies generally require that local manufacturers or dealers and agents of foreign suppliers who wish to qualify as bidders must first register with the Ministry. They must establish that they are up-to-date on the payment of Venezuelan taxes and that financially and technically they are qualified to participate in Government bidding. If the application for registry is accepted, the applicant is assigned a number and is free to inspect the list of requirements of the Ministry and to make bids on tenders. The Armed Services have military attaches with the Venezuelan Embassy in Washington, D.C., through which procurement is at times arranged. Similarly, the Guayana Corporation, which operates the steel mill, maintains a field office in Pittsburgh through which purchases are arranged. However, in most cases, it is essential for firms wishing to sell to the Venezuelan Government to have a local representative who has reg- istered and otherwise met the criteria of the agency as a qualified supplier. Among the major Government entities engaged in foreign procurement are: Ministry or agency Agrarian Reform Institute — Institute Agraria de Reforma Major function Carries out agrarian reform program Agricultural and Livestock Bank — BAP Extends loans to farmers Electrical Development Company — CADAFE Guayana Development Corporation — Cor- poration Venezolana de Guayana National Institute of Railroads — Instituto Nacional de Ferrocarrilles Venezuelan Development Corporation — CVF Engages in generation and distribution of electrical power Plans and executes development of east- ern Venezuela, including large steel mill Operates about 300 miles of state-owned railroad lines Engages in general development activ- ities Venezuelan Navigation Company — CAVN Operates state shipping line Venezuelan Petrochemical Institute — IVP Venezuelan Petroleum Corporation — CVP Ministry of Agriculture and Livestock — Ministerio de Agricultura y Cria Ministry of Communications — Ministerio de Comunicaciones -"* Ministry of Defense — Ministerio de De- fensa Ministry of Public Works — Ministerio de Obras Publicas Operates an expanding state-owned petro- chemical plant Engages in petroleum exploitation and refining Fosters development of agriculture Operates state telegraph and telephones Army, Navy, Airforce Executes public works programs Type of procurement Agricultural machinery, implements, live- stock, seed. Agricultural machinery and implements for resale to farmers. Equipment for powerplants, substations, transmission lines. Equipment for steel mill, powerplants, coal mines, and other varied installa- tions. Railroad rolling stock, railroad ties, main- tenance and other operating equipment. Equipment for sugar mills. Vessels and equipment for operation of shipping line. Machinery, equipment, and raw materials for petrochemical plant. Petroleum equipment. Agriculture machinery, equipment, live- stock, seed. Telegraph, microwave, radio, telephone, other communication equipment. Equipment for Armed Forces. Construction equipment and miscellaneous goods. 32 COMMERCIAL HANKS The number of commercial banks increased from 12 to 37 during the 1950's with the growth of the economy. There are now 456 separate banking offices, consisting of 37 banks, 146 branch banks, and 273 banking agen- cies. Four foreign banks have branches or subsidiaries in Venezuela, with the First National City Bank being the only U.S. bank operating in Venezuela. However, the Chase-Manhattan Hank has acquired a 49-percent interest in Venezuela's Banco Mercantil y Agricola. Of course, many U.S. banks have correspondent relation- ships with Venezuelan banks. Interest rates charged by commercial banks have been relatively stable and ranged in 1962 from 7.5 to 10 percent annually, with an average of 8 percent. The stability of the bolivar has contributed to maintaining interest rates below those in most Latin American countries. MARKET RESEARCH Several firms, including Venezuelan subsidiaries of U.S. companies, engage in market research, consumer motivation, polls, or industry studies. In addition to these firms, some of the larger companies that distribute in large volume in Venezuela maintain their own re- search organization for market evaluation. All of the commercial banks in Venezuela furnish credit information on an exchange basis and free of charge to banking and credit entities abroad. Inquiries by individuals should be made through their commer- cial banks. In addition, Dun and Bradstreet maintains an office in Caracas through which up-to-date credit reports on Venezuelan firms are prepared for distribu- tion through its U.S. offices. The U.S. Department of Commerce through its World Trade Directory Reports has an extensive and up-to-date file of information on the credit standing of numerous Venezuelan firms. There are, in Venezuela, a number of firms that handle delinquent cases of collection. It is at times better to turn some cases of delinquent collection to such firms before attempting costly and time-consuming ADVERTISING The advertising industry has grown rapidly in recent years. At least 10 firms — 3 of which are subsidiaries of well known U.S. companies — are capable of organ- izing complete promotional or publicity programs. These firms can prepare advertising or adapt it to the local market, select advertising media, and evaluate results. The U.S. exporter usually supports in part tin- advertising program of his representative in Venezuela. Television and radio are the most effective medial in the mass market. It is estimated that 45 percent of total advertising expenditures is placed in televi-ion. 30 percent in radio, 15 percent in newspapers, and 10 percent in magazines, billboards, movie houses, and other medias. WTD REPORTS HELP IN SELECTING REPRESENTATIVES AND TRADING PARTNERS Information on private firms in Venezuela is available to U.S. businessmen thorguh World Trade Directory — WTD reports. The WTD reports include information on organization, sales territory, lines of goods handled, operation meth- ods, size of business, capital, sales volume, trade and financial reputation. The WTD reports are available to qualified U.S. firms — or will be prepared on request— through the Commercial Intelligence Division, Bureau of International Commerce, U.S. Department of Commerce, Washington, DC, 20230, for $1 each. The reports may also be obtained through the Department's Field Offices. Television has grown spectacularly in recent years; today, there are four television stations in Caracas, one in Maracaibo, and one in Valencia. While nation- wide coverage is not yet complete, the existing net- works bring television to the principal population centers. The number of television receivers is esti- mated at 320,000. Rates are high; a 1-minute com- mercial at premium time costs $5,100. Three radio networks make possible the simultane- ous coverage of Venezuela. There are 90 radio stations in Venezuela and. with the availability of low price transistor sets, an estimated 2.1 million receivers. Radio is particularly effective in the smaller communi- ties where illiterarcy is high and television not yet available. Newspapers are the next most important advertising media. They are the most effective media for reaching the business community. Caracas has six Spanish dailies and one English daily, each with large circula- tions. The more popular of them circulate widely even outside of Caracas. Rates for a full page advertisement in the larger newspapers range from Sl(>6 to S377. In 33 addition to the large Caracas newspapers, other cities have local dailies. Many of the towns have weekly newspapers. (See U.S. Department of Commerce, Trade List, Advertising Media — Venezuela, June 1963). Several local weekly magazines have large circula- tions. Among them, by circulation, are: Elite, 71,000; Momento, 60,000; La Fusta, 50,000; Venezuela Grafica, 53,000; Bohemia Venezolana, 50,000; El Gallo Pelon, 40,000; and Paginas, 45,000. Spanish language editions of several well-known U.S. maga- zines are also popular with Venezuelan readers. Movies are well attended, particularly in the smaller towns, and advertising in movie theaters is much more common than in the United States. Other forms of advertising include direct mail, billboards, neon signs, and bus cards. TRADE ASSOCIATIONS The Federacion Venezolana de Camaras y Asocia- ciones de Comercio y Produccion — FEDECAMARAS is an affiliation of chambers of commerce and industry throughout the country. The organization has great influence and is recognized as the spokesman for busi- ness in Venezuela. It maintains headquarters in Caracas. The Chamber of Commerce of Caracas — Camara de Comercio de Caracas — is the largest of the chambers affiliated with FEDECAMARAS. Union Patronal Venezolana del Comercio is an organization in Caracas that strongly represents Venezuelan im- porters. United States businessmen and Venezuelan representatives of U.S. firms are banded together in a United States Chamber of Commerce. Many of the larger chambers have full-time paid executive secretaries and well-stocked commercial libraries; they prepare monthly bulletins for their members. These chambers can provide valuable serv- ices to exporters in search of a representative or of commercial information. WAREHOUSES AND FREE PORTS SEAPORT FOR CARACAS : La Guaira, Caribbean seaport, \2Vi miles from Caracas by autopista, leading port for Venezuelan imports. warehouse are that goods may be stored up to 6 months without payment of customs duties and that the goods can be insured fully against fire, theft, civil commotion, or acts of God. Free storage in customs warehouses is provided during the first 6 days after the arrival of the vessel, but Venezuelan customs authorities impose progres- sively higher charges in order to discourage use of customs warehouses beyond the 6 days. The Venezu- elan Customs Law establishes a 2-percent ad valorem fee on goods remaining in customs warehouses more than 6 days and not more than 10 days. The fee is then increased to 10 percent ad valorem per month or for any fraction of a month. Goods not removed from customs warehouses within 2 months following the 6— day gratis period are subject to seizure and sale at public auction. Venezuela has no free ports. New port facilities at La Guaira and Puerto Cabello provide adequate storage space for all types of cargo, including refrigerated cargo. Facilities at Maracaibo and other ports have also been improved and are generally adequate. Bonded warehouses are in operation in Caracas and Puerto Cabello. Among the advantages of the bonded TRANSPORTATION AND COMMUNICATIONS Ocean shipping accounts for 88 percent of the value of total imports. Imports by air — primarily from the United States — account for 12 percent of the value of total imports. The availability of rapid air freight 34 service from the United States provides an important competitive advantage to U.S. exporters of foodstuffs, chemicals, machinery, and raw materials. La Guaira is by far the principal port for imports, accounting in 1962 for 57 percent of the $985 million in imports. Puerto Cabello ranked second, accounting for 19 percent by value of all imports; Maracaibo was third, accounting for 15 percent; Puerto La Cruz fourth, with 5 percent; and Ciudad Bolivar fifth, with 3 percent. Alcoa, Grace, Lykes lines, Royal Netherlands, and the Venezuelan state-owned Compania Anonima Venezolana de Nevegacion — CAVN are among the shipping lines that provide regularly scheduled service between U.S. Atlantic and Gulf ports and Venezuelan ports. Daido, Johnson, D'Amico, Ferndale, Italian, K, Mitsui, Moore-McCormack, N.Y.K., O.S.K., and Zim Israel lines provide service between Venezuela and the Pacific Coast of the United States and Canada. CAVN also provides service among Venezuelan ports. Pan American Airways, Delta Airlines, and Venezo- lana Internacional de Aviacion, S.A. — VIASA are among the airlines providing service between Vene- zuela and the United States. Domestic airline service between Venezuelan cities is supplied by two Venezuelan companies: Aerovias Venezolana, S.A. — AVENSA and Linea Aerea Venezo- lana — LAV. The AVENSA is a private company in Si™ M\ OCEANPORT : What oil flows out of the many Venezuelan wells and through modern refineries goes to market in oceangoing tankers. which Pan American Airways has a minority interest; LAV is owned by the Venezuelan Government. Du<- to lack of railroads and highways, some places depend on air service to transport passengers and cargo. Because of the absence of railroads and the rela- tively high cost of air and coastal transport, moil goods in Venezuela move by truck. Venezuela has a comparatively good network of roads, and trucking lines provide relatively quick and efficient service between Venezuelan towns. Local telephone service in Venezuela is provided by the National Telephone Company of Venezuela — CANTV, an autonomous Government corporation. CANTV and the Telecommunication Section of the Ministry of Communications provide long-distance service among Venezuelan cities. The telephone sys- tem in Venezuela is overloaded, and there are frequent waits in making connections. Many cities have a long list of persons waiting for telephones. Rapid and convenient telephone communication between the United States and Venezuela is available and is frequently an important factor in facilitating U.S. exports. The Ministry of Communication in Venezuela pro- vides domestic telegraph service among towns and cities in Veriezuela while International Cables and Radio, Inc., and the Radio-Telegraph Section of the Ministry of Communication provide international service. Airmail from the United States to Venezuela takes 4 to 5 days before actual delivery. Postage rates are 15 cents for the first ounce. Mail service is not so reliable as in the United States, although in cases of registered mail, reported losses are not considered abnormal. OTHER TRADE PRACTICES Terms of sale, of course, vary with the customer and the product. But the cost of money in Venezuela is higher than in the United States and in Europe and stiff competition among suppliers requires terms that are fully competitive. Open account terms, while more prevalent than in other Latin American countries, are not used extensively because of the risk to the ex- porter, except in cases of long and satisfactory experi- ence with a reputable and well-established Venezuelan firm. Because of cost, the letter of credit is used infre- quently in sales to well-established firms. Thus, sight drafts and time drafts are the more common means 35 of payment and the trend is toward liberalization of terms. However, in extending sight or time drafts, the exporter must note that Venezuela's Customs Law prohibits "to order" bills of lading. A definite con- signee must be named, and the consignee is considered the owner of the goods once they have entered Vene- zuela. Delivery of the merchandise to the importer even when shipping instructions specify "documents against payment" is thus possible if steps to avoid this are not taken. While it is possible to designate the collection bank as a consignee with instructions to turn over the goods to the importer upon payment or acceptance, banks do not normally have the facili- ties for exercising proper control or for clearance of the shipment. Banks tend to avoid this function by charging high rates for this work. It is a more common practice to designate a customs broker at the port of entry as consignee while indi- cating in the shipping document the actual purchaser as the ultimate consignee. The shipping documents are then mailed to the customs broker, with instruc- tions first to clear the goods and then to release them to the importer on complying with the terms of the sale. At the same time, the exporter draws on the importer a draft that is sent to the bank for collection. Venezuelan customs brokers are considered reliable and usually, follow instructions carefully. In addition, a customs broker as consignee can be depended on to clear the merchandise through customs promptly, thus avoiding fines that accrue for goods remaining in customs beyond the 6-day maximum period. It is a practice in Venezuela to consider sight drafts not payable until the shipment has arrived in Vene- zuela, and commercial banks will not generally present a draft for collection until the shipment has arrived. Venezuelan importers prefer a quotation c.i.f. Vene- zuelan port since this permits ready determination of the total cost of the goods at the Venezuelan port. Installment sales are widespread and account for a high level of total retail sales. Installment selling is used in retailing automobiles, household appliances, furniture, and, in general, all types of merchandise sold on installment in the United States. Stores, such as Sears Roebuck and the large chains, attribute a large volume of their business to their charge accounts and report good experience with credit sales. The usual hours of business are from 8 a.m. to 6 p.m., with a 2-hour lunch. Retail establishments, including banks, usually open from 9 to 12 a.m. and from 2 to 6 p.m. Most retail establishments, banks, CAPITAL SUPERMARKET : In Caracas, Venezuela's National Capital, a shopper might very easily lose himself in the vast building. 36 HOTEL MARACAY, MARACAY, VENEZUELA : Men who carry on the business of their Maracay plants frequently stay here. importers, wholesalers, and other establishments are open until noon on Saturdays and then remain closed until Monday morning. Traditional holidays observed in Venezuela are the following: January 1: New Year's Day January 6: Epiphany Carnival: Monday and Tuesday before Ash Wednesday Holy Thursday: date varies Good Friday: date varies April 19: Declaration Day May 1: Labor Day July 5: Independence Day July 24: Bolivar's Birthday October 12: Columbus Day November 1: All Souls Day December 25: Christmas Day August and September are the months in which most persons take vacations. Spanish is the language of business. Correspondence, catalogs, and technical literature should be written in Spanish. However, the officials of companies dealing with U.S. firms and educated Venezuelans frequently know the English language. The metric system is the only system of weights and measures legally recognized. The customs law requires shipments to express weights and measures in the metric system. Other legislation prohibits use of non- metric units in trade. The Venezuelan Government maintains price con- trols on drugs, pharmaceuticals, petroleum products, milk, meat, rent, and a few other basic consumer products as well as services. 37 7V~ ^ 4— n V*. t ;l 1v ' , j - :t-.^ i ^^^^^^^^^^ilT V * * i ■■■ j_^^HBl — ■ ^««— — a— ^k ' pHt-W i w ■■ » i t ^^B~ — - — - ^h V.J FJLvj URBAN HOME : Sixty-two percent of Venezuela's population lives in communities of 2,500 or more persons. AIDS FOR TRAVELERS Business visitors to Venezuela must obtain a tran- sient visa, which is valid in the case of U.S. citizens for 1 year. Documents required by a Venezuelan consulate for issue of a transient visa are: (1) a valid passport, (2) certificate of smallpox immunization and of general health, both issued within the past 3 years, (3) certificate of good conduct, issued within the past 6 months by police authorities at place of residence, (4) letter from applicant's employer, stating purpose and duration of trip as well as assumption of responsibility for applicant during stay in Venezuela, and (5) four front-view photographs, 2 by IV2 inches. Used articles of clothing, instruments needed in the exercise of a profession, toilet articles, and other items of personal use except furniture and a vehicle, which are subject to duty even for personal use, are regarded as baggage of the traveler and as such are accorded duty-free entry into Venezuela. However, new articles which are legitimately part of passengers' baggage are charged a surtax of 20 percent of duty if the normal duties thereon are less than 600 bolivares. If the normal duties exceed 600 bolivares for such goods, the surtax is 45 percent of duty. For unused effects that cannot legally be con- sidered part of passengers' baggage, the surtax is 50 percent of duty when the normal duties are under 500 bolivares and 100 percent on any excess over 500 bolivares. Commercial travelers may bring into the country samples of noncommercial value, weighing up to 25 kilograms, free of duty. Samples of noncommercial value but weighing in excess of 25 kilograms are subject to an import duty of 0.20 bolivares per kilo- gram. Samples with commercial value may also be introduced into Venezuela duty-free by depositing with the customs authorities a bond in an amount equal to the applicable duties. But these must be reexported within 2 years of entry or the bond will be forfeited. This exoneration does not apply to samples of gold, silver, or platinum jewelry nor to precious stones. These can enter the country only by paying the corresponding import duties. Taxi fare from Maiquetia Airport to Caracas is 30 bolivares, or $6.60, but por puestos, i.e., taxis that carry several passengers, will take their passengers to their destinations in Caracas for 10 bolivares, or $2.20. In Caracas, the fare to any part of the city should not exceed 5 bolivares, or $1.10. A clear understanding regarding the fare should be made before undertaking a trip. In Caracas, car rental service is available at reason- able prices. Small European makes may be rented for $5 a day. A U.S. operator's license is valid for driving in Venezuela. Climate in Caracas is very pleasant with an average temperature of 70 °F. and little deviation from this average throughout the year. Tropical worsteds and wash and wear suits are worn year round. During the winter months — December through March — one slightly heavier suit for evening wear is appropriate. In Maracaibo, Maracay, Valencia, San Tome de Guay- ana, and cities in the lower elevations, light summer suits are worn year round. In Merida and other Andean cities, winter suits and a topcoat are worn. Formality in clothing is observed, and suits should be worn in making business calls. The business card is essential in making calls. In restaurants and bars, the waiter's tip is added to the bill, but practice requires an additional 5 percent. 38 A tip of about 1 bolivar, or $0.22, for small services, such as carrying one suitcase, is appropriate. Hotels and brokerage houses have high service charges for converting dollars into bolivares. Com- mercial banks are the best place to purchase exchange. The U.S. Commercial Attache's office is located at the Embajada de los Estados Unidos, Avenida Princi- pal de la Floresta, Esq. Francisco de Miranda. The telephone number of the Embassy is 336-331. The switchboard operator connects you with his office. Caracas offers a wide range of hotel accommoda- tions. The Tamanaco, gay and popular with Ameri- cans, and the Avila, quiet and elegant, are the two best hotels. The former has a small golf course and both have swimming pools. Rates begin at $15 a day for single rooms. The Potomac, Waldorf, and El Conde are among the good, smaller hotels in Caracas with rates in the $10 range. About 1-hour ride outside of Caracas and close to the Maiquetia airport is the new and luxurious Macuto-Sheraton. This hotel is on the coast and has excellent beach and other facilities and is within commuting distance of Caracas. Prices start at about $15 for a single room. In Maracaibo, the Hotel del Lago, which is operated by International Hotel Corporation, is popular with U.S. travelers. It charges about $15 a day for a single room. The Hotel Detroit is also popular and has more modest prices. The state-owned National Corporation of Hotels and Tourism — CONAHOTU in an effort to promote travel and tourism operates a chain of hotels which are comfortable and attractive. CONAHOTU hotels are located in Barinas, Coro, Cumana, Guanare, Mara- cay, Merida, Porlamar, San Cristobal, Trujillo, and Urena. Prices for single rooms are in the $10 range. Caracas, Maiquetia, and Valencia have 110-volt, 50-cycle, single phase, alternating current. All the rest of the country is on 60-cycle current; a program is now underway to convert these three cities to 60-cycle current. In order to leave Venezuela, businessmen traveling under a transient visa must first obtain a certificado de solvencia, a certificate assuring that they have paid taxes on their income earned in Venezuela. The amount of the tax is 6 percent of the earned salary while in Venezuela. In addition, an exit tax of 80 bolivares, or $17.77, must be paid. 39 ,-n rt i ^ f>^ '' ril wk&tMri* rfft f lf*# ,^ -ft.; i-fi" t< S . 55 Table 3. — Value of Imports and Percentage Share of Principal Suppliers, Selected Years [Millions of 1960 bolivares 1 and as percent of total imports] Country 1938 1939 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956' 1957 1958 1959 1960 1961 1962 United States 56.4 7.1 m 12.0 2.5 3.0 7.3 5.2 1.7 4.8 61.1 4.2 .9 9.5 2.5 3.0 4.2 3.9 1.9 8.8 74.1 5.7 1.9 ( 2 ) 1.3 1.3 1.0 .7 ( 2 ) 14.0 77.9 6.5 2.0 .3 1.6 1.0 .9 .7 m 9.1 73.4 7.6 2.5 1.1 2.2 1.7 1.8 .9 .3 8.5 68.1 6.8 3.6 3.0 2.3 2.5 1.2 1.3 1.9 9.3 67.9 6.4 3.9 4.1 2.1 2.5 1.9 1.6 .8 8.8 69.0 7.2 4.5 3.5 1.8 2.4 1.6 2.0 .9 7.1 67.4 7.0 3.8 4.6 2.0 2.2 1.8 1.9 1.0 8.3 61.6 7.8 4.0 6.8 2.5 3.5 1.7 2.2 1.3 8.6 58.9 7.9 4.0 9.0 2.8 3.7 1.8 2.4 1.9 7.6 59.1 7.9 3.3 8.6 3.4 3.4 2.8 2.8 1.6 7.1 63.5 6.4 2.4 9.4 4.4 2.7 1.9 1.8 1.6 5.9 57.2 7.4 3.1 8.5 6.6 2.5 2.3 2.3 1.7 8.4 52.9 7.1 3.3 9.3 5.9 2.4 3.1 2.7 2.7 10.6 51.7 6.0 3.7 8.8 6.3 2.3 2.9 2.5 3.6 12.2 54.0 5.4 4.1 8.6 5.7 3.3 2.2 2.3 3.7 10.7 52.5 United Kingdom 6.1 4.5 Germany, Federal Republic of Italy 8.7 5.3 3.0 Belgium-Luxembourg 2.5 Netherlands 2.3 4.1 11.0 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Total imports, millions of dollars 97 102 559 839 716 597 681 759 91V 944 1,026 1,833 1,432 1,416 1,066 985 1 Excluding air and parcel post imports. 2 Less than 0.05 percent. Sources: Direccion General de Estadistica y Censos Nacionales, Estadistica Mercantil y Maritima, 1938 and 1939, and 1947-55; Direccion General de Estadistica- Boletin Mensual de Estadistica, 1956-58; and Direccion General de Estadistica y Censos Nacionales, Boletin de Comercio Exterior, 1959-62. Table 4. — Total Imports and Imports from the Vni ted States, by Commodity Sections, 1959-62 [Thousands of dollars 1 ] 1959 1960 1961 1962 Commodity section Total From United States Total From United States Total From United States Total From United States Value Percent of total Value Percent of total Value Percent of total Value Percent of total Food products, including live $169,843 21,875 41,336 12,768 5,326 113,915 534,179 503,681 12,613 $82,062 10,921 11,261 11,263 3,164 66,955 335,289 224,974 3,213 48.3 49.9 27.2 88.2 59.4 58.8 62.8 44.7 25.5 $156,220 6,826 38,577 11,187 5,686 102,173 381,976 353,494 9,932 $78,006 3,581 10,975 9,728 3,664 59,874 228,902 150,222 3,335 49.9 52.5 28.4 87.0 64.4 58.6 59.9 42.5 33.6 $137,853 9,079 39,210 8,398 6,631 105,382 323,975 339,902 21,633 $72,364 2,016 19,136 6,527 4,462 60,962 214,704 152,663 3,277 52.5 22.2 48.8 77.7 67.3 57.8 66.3 44.9 15.1 $113,040 5,739 40,609 9,914 5,838 110,712 345,694 339,575 13,632 $49,380 1,486 15,718 6,553 3,788 62,764 226,183 146,691 4,884 43.7 25.9 Crude materials, unfit for human 38.7 Mineral fuels, lubricants, and 66.1 Animal and vegetable oils and fats.. 64.9 56.7 Machinery and transport equip- ment 65.4 43.2 Miscellaneous commodities and transactions 35.8 Imports, total 1,415,535 749,208' 52.9 1,066,070 550.646 2 51.7 992,062 535,570' 54.0 984,755 517,488 52.5 1 Converted to dollars at the rate of one bolivar equals $0.2985 (1959 and 1960) and at the average selling rates of $0.2770 (1961) and $0.2525 in 1962. 2 Details do not add to totals due to discrepancies in reported data. Source: Ministerio de Fomento, Boletin de Comercio Exterior, 1959-1962, Caracas. Table 5. — Imports by Class of Importer, 1957-62 [Millions of boh'vares * and percent of total] Class 1957 1958 1959 1960 1961 1962 2 Bolivares Percent Bolivares Percent Bolivares Percent Bolivares Percent Bolivares Percent Bolivares Percent 3,854.4 394.7 1,240.7 98.1 69.0 7.1 22.2 1.7 3,740.0 335.1 660.6 47.5 78.3 7.0 13.8 .9 2,975.4 301.2 420.7 23.0 84.2 6.4 8.9 .5 2,999.1 274.3 246.7 32.3 84.4 7.7 7.0 .9 3,162.4 183.7 157.2 18.6 89.8 5.2 4.5 .5 3,411.0 207.6 264.9 21.5 87.3 5.3 6.8 .6 Total 5,587.9 100.0 4,783.2 100.0 3,720.3 100.0 3,552.4 100.0 3,521.9 100.0 3,905.0 100.0 1 The average selling rate for the bolivar was 3.35 bolivares per $1 in 1957-60, 3.61 bolivares per $1 in 1961 and 3.96 bolivares per $1 in 1962. 2 Provisional. Source: Banco Central de Venezuela, Memoria, 1957-1962, Caracas. 56 Table 6. — Population, by Federal Entities, According to Censuses of 1941, 1950, and 1961 Table 7. — Urban Centers, by Number of Inhabitants, 1961 Federal entitiei Venezuela Federal District States Anzoatcgui Apure Aragua Itnrinas Bolivar Carabobo Cojedes Falc6n Guarico Lara Merida Miranda Monagas Nueva Esparta Portuguese Sucre Tachira Trujillo Yaracuy Zulia Federal territories Amazonas T>elta Amacuro Federal dependencies 11)41 CCIISIIS 3,051,371 880,099 158,946 84,560 138,285 62,959 112,522 191,442 49,769 232,644 135,089 332,975 192,994 227,604 122,901 09,195 87,151 291,452 245,722 264,270 127,030 360,667 47,128 37,165 852 1 951) census 5,091,543 709,602 242,398 95.489 189,891 79,944 131,631 242,923 52,111 258,759 164,523 368,169 211,110 276,273 175,560 75,899 122,158 384,107 304,181 273,919 132,486 570,836 45,702 33,648 779 1961 ccnsu , 7,555,799 1,257,515 382,002 121,077 313,274 139,271 217,543 881,636 72,652 340,450 244,966 489,140 270,668 492,349 246,217 89,492 208,707 402,292 399,163 826,634 175,291 923,863 31,757 33,979 861 Percent of population as url>an, 1961 1 Data are not available. Source: Ministerio dc Foniento, Caracas. IX Censo Xacional de Poblario 62.5 08.1 65.3 24.7 80.1 24.7 62.4 74.9 33.9 44.0 47.0 56.0 29.2 70.4 45.3 44.S 43.1 40.2 45.8 31.6 50.5 77.0 46.5 29.1 (') 1962, Centeri, classed by Dumber of inhabitant! Number of urlian eenten Population in each chut Per. of total population in rarh < la»« Of 500,000 or more 1 l 3 11 24 33 51 103 1.101.147 421.166 MB 841 762,879 765,386 437,749 858,600 365,716 14.6 Of 200,000 to 499,001) 5.6 Of 100.000 to 199,000.... 8.6 Of 50,000 to 99,99!) 10.1 Of 20,000 to 49,999 10.2 Of 10,000 to 19.999 Of 5,000 to 9,999 ... 5.8 4.7 Of 2,500 to 4,999 4.9 Total 227 4,705,288 62.5 Source: Ministerio de Foniento. IX Cento Xacional de I'oblarion 1962, Caracas. Table 8. — Annual Income of Families in Venezuela, 1962 Annual family income (in boliviares ') Number of families Percent of total families Persons per family Total population More than 80,000 14,000 to 30,000 7,200 to 14,000 Less than 7,200 42,000 98,000 280,000 980,000 3 7 20 70 3.5 4.0 4.5 6.5 147,000 392.000 1,260,000 6,370,000 Total 1,400,000 100 5.6 8,169.000 ' The average selling rate for the bolivar in 1962 was 4.2 bolivares equals $1. Source: Ebasco Services, Incorporated, Considerations AJferting the De- velopment of Sew Industrial Opportunities in Venezuela, 1964, Caracas. Table 9. — Median Wage Rates for 8-Hour Day in Selected Trades in Caracas, Third Quarter of 1963 Class of worker Miller of corn or wheat Master baker Bottle washer Delivery man Electrician Shoemaker Linotype operator Type setter Mason assistant Painter Plumber Construction worker, unclassified Textile worker, unclassified Dyer Railroad switchman Chauffeur Truckers' assistant Bolivares per 8-hour day Dollars ' per 8-hour day 15.00 4.01 25.00 6.68 15.00 4.01 10.80 2.89 28.10 6.18 22.50 6.02 25.00 6.68 29.50 7.89 15.00 4.01 20.80 5.56 22.00 5.88 12.65 3.38 16.00 4.28 22.50 6.02 22.50 6.02 28.85 7.71 14.45 3.86 1 Converted at average selling rate of 8.74 bolivares equal US$1. Source: Ministerio de Foniento, Boletin Mrnsuol dc Kstadistica, Caracas, Oct., Nov., Dec. of 1962 (No. IS), pages 180 and 181. Table 10. — Expenditures for Private Con- sumption per Capita, 1961 Amount Percent Type of expenditure In bolivares In U.S. dollars of total tfiOS sv> 100 Foodstuffs 543 101 55 162 30 16 30.0 5.6 Meat 3.0 Fish 24 7 1.3 Milk, cheese, eggs „.. 76 23 4.2 Fats and oils 30 9 1.7 Fruits and vegetables 184 55 10.2 60 12 92 18 4 28 3.3 5.1 53 16 2.9 Wearing apparel 149 44 8.2 269 s,. 14.9 Fuel and light 119 36 6.6 57 Table 10. — Expenditures for Private Con- sumption per Capita, 1961 — Continued Type of expenditure Furniture and domestic appliances House maintenance Personal and medical expenditures Transportation and communication Expenditures for private transport (own automobile) Expenditures for transport services Communications Spectacles and diversions Spectacles Books, newspapers, magazines Other services Education Amount In bolivares In U.S. dollars 44 13 44 13 153 46 161 48 41 12 115 34 5 2 45 13 18 5 27 8 121 36 16 5 Percent of total 2.4 2.4 8.5 6.3 .3 2.5 1.0 1.5 6.7 Table 11. — Gross Domestic Product and Percentage Increase, 1950-62 [Billions of bolivares at constant 1957 prices] Year Gross domestic product Percentage increase 1950 12.7 14.2 15.2 16.2 17.8 19.3 21.4 23.8 24.2 26.1 26.4 26.9 28.6 30.2 1951 11.6 1952 7.3 1953 6.1 1954 9.6 1955 8.9 1956 10.5 1957 11.6 1958 _ 11.6 1959 7.9 1960 1.3 1961 1.9 1962 6.3 1963' 5.8 Source: Banco Central de Venezuela, Informe Economico Correspondiente al Ano 1962, Caracas, pages 510 and 512. 1 Provisional. Source: Banco Central de Venezuela, Memoria, 1962, Caracas, and, for 1963, U. S. Embassy. Table 12. ross Domestic Product by Major Sectors, Selected Years [Millions of bolivares x at 1957 market prices] Sector 1950 1955 1957 1958 1959 1960 1961 1962 1963 2 Agriculture, livestock, and fishing 1,014 20 5 15 3,920 3,797 123 1,150 783 367 827 69 1,726 699 1,161 2,140 12,727 1,352 221 187 34 5,777 5,514 263 2,004 1,663 341 1,363 159 2,862 951 1,752 2,884 19,325 1,507 383 334 49 7,472 7,135 337 2,429 2,105 324 1,580 238 3,933 940 2,141 3,224 23,848 1,576 379 334 45 7,073 6,708 365 2,607 2,289 318 1,618 280 3,809 1,002 2,398 3,427 24,164 1,642 420 377 43 7,560 7,154 406 3,012 2,703 309 1,707 336 4,003 1,090 2,664 3,632 26,065 1,807 470 432 38 7,796 7,384 412 2,898 2,594 305 1,444 367 3,839 1,041 2,875 3,898 26,433 1,844 343 318 25 8,000 7,554 447 3,007 2,700 • 307 1,097 417 3,927 1,032 3,007 4,205 26,881 1,979 316 290 26 8,773 8,279 494 3,246 2,935 311 1,156 487 4,045 1,060 3,145 4,378 28,585 2,077 278 Mining Iron ore Other Petroleum 8,905 Crude Refined Manufactures 3,528 Industrial Artisan Construction 1,369 Water and electricity 542 Commerce 4,506 Transportation and communication 1,186 Rent and interest 3,101 Services, including Government 4,750 Gross domestic product 30,243 Percen tage distribi ition of gros s domestic p roduct Agriculture, livestock, and fishing 8.0 .1 7.0 1.1 1.0 .1 29.9 28.5 1.3 10.5 8.6 1.8 7.0 .8 14.9 4.9 9.1 14.9 6.3 1.6 1.4 .2 31.3 29.9 1.4 10.2 8.8 1.4 6.6 1.0 16.6 3.9 9.0 13.5 6.5 1.6 1.4 .2 29.3 27.8 1.5 10,8 9.5 1.3 6.7 1.2 15.7 4.1 9.9 14.2 6.3 1.6 1.4 .2 29.0 27.4 1.6 11.5 10.4 1.2 6.5 1.3 15.5 4.2 10.2 13.9 6.8 1.8 1.6 .2 29.5 27.9 1.6 11.0 9.8 1.1 5.5 1.4 14.4 4.0 10.9 14.7 6.9 1.3 1.2 .1 30.0 28.1 1.7 11.2 10.0 1.1 4.1 1.5 14.5 3.8 11.2 15.6 6.9 1.1 1.0 .1 30.7 29.0 1.7 11.3 10.3 1.0 4.0 1.7 14.1 3.7 11.0 15.3 6.9 9 Iron ore Other .1 30.8 29.8 1.0 9.0 6.1 2.9 6.5 .5 13.7 5.5 9.1 16.8 29.4 11.7 Industrical 4.5 Water and electricity 1.8 14.9 3.9 10.2 Services, including Government 15.8 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1 One bolivar was equal to US$0.29 in 1957. 2 Provisional. Source: Banco Central de Venezuela, Memoria, various issues and, for 1963, U. S. Embassy sources. 58 Table 13. — Population, Foreign Trade, anil Per Capita Foreign Trade of Venezuela and Other Latin American Countries, 1962 Table 15. — Export* and hnprtrts and Tradr Balance 1951-62 I Iiipii-.iiiiI- of Hollar* 1 ] Country Popu- lation (thou- Total Importii c.i.f. (in millioni oa dollars) Total exports, f.o.l,. (in millions US dollars) Per capita import! - 1957 5,931,308 75.2 1,357,779 17.2 7,289,087 92.4 882,416 4.8 115,549 1.5 83.570 .0 7.754 403 P) 1958 5,500,032 71.7 1,585,260 20.7 7,091,898 92.6 404,204 5.8 120,541 1.0 88.748 .5 5,701 306 P) 1959 5,521,877 70.4 1,760,431 22.4 7,282,508 92.8 425,712 5.4 52.205 1.0 29.694 .4 8,133 1,8*8 1960 5,488,890 68.0 1,904,989 23.6 7,893,885 91.0 554,309 6.9 78.127 .9 31,004 .4 4.903 MM (') 1961 5,424,169 67.6 2,010,905 25.2 7,441,134 92.8 442.472 5.5 75,482 .9 26,374 .3 10.589 .1 un i 1962 5,840,572 07.2 2,217,400 25.5 8,057,978 92.7 401,045 4.7 02,008 .7 32.970 .4 10.178 .2 9,000 .1 1955.. 1956. 1957.. 1958 1959.. 1960 1961 1902 798 P) 514 (') 19 P) 392 C) 1,511 P) 343 (■') 01 P) 379 r?) 257 P) 436 P) 09 <*) 359 P) 4,506 .1 2,822 P) 84 p> 17,672 .2 281 294 288 345 885 875 567 950 P) 350 P) 514 P) P) 8.304 0.1 6.243.595 P) 527 (>) 2,035 P) 11.405 .2 T.ltti .1 7.066.263 P) 32 P) 8,129 P) 58,758 .7 5,709 .1 7.693.504 P) 83 P) 3,362 P) 7,131 .1 5,435 P) 7.070.172 P) 38 P) 2.217 P> 17 C) 9.821 .2 7.843.105 P) 585 P> 1.839 P) P) 5.713 .1 i..o,;.i ;, t : P) 695 o 190 P) P) 7.2S1 .1 8,011,168 P) 785 P) — — 5 P) >s,s;; 1.0 s >)88,8SS 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1 One bolivar equal to (0.8988 in 1955 1900. *0.277 in 1901. and *0.252 in 1902. 5 Less than 0.05 percent. Source: For years 1955 to 1901. Ministerio de Rclaciones Estcriores. SxportaeUNMI \'enr:»lanas. IM5-IM1, January 1963. Caracas For 1902 data, Ministerio de Fomento, Boletui de Comercio Exterior, December 1902. 59 Table 16. — United States Exports to Venezuela, by Commodity Sections and Principal Commodity Groups, 1959-63 Nomenclature and description 1960 1961 1962' 1963' Exports, including reexports, total Reexports Domestic exports, total Section — Food and live animals 001 Live animals, n.e.s 021 Milk and cream 025 Eggs 041 Wheat, unmilled 046 Wheat, flour 047 Cereal, prepared 051 Fruit, fresh, and nuts , 053 Fruit, preserved, and fruit preparations 054 Vegetables, fresh, frozen, or simply preserved 055 Vegetables, preserved or prepared 062 Sugar, confectionery, and other sugar preparations Section 1 — Beverages and tobacco 121 Tobacco, unmanufactured 122 Tobacco, manufactured Section 2 — Crude materials, inedible, except fuels 221 Oilseeds, oil nuts, and oil kernels 231 Rubber, crude, including synthetic and reclaimed 251 Paper pulp and waste paper 266 Synthetic and regenerated (artificials) fibers Section 3 — Mineral fuels, lubricants, and related materials 332 Petroleum products Section 4 — Animal and vegetable oils and fats 431 Animal and vegetable oils and fats, processed, and waxes of animal or vegetable origin Section 5 — Chemicals 512 Organic chemicals 513 Inorganic chemicals: elements, oxides, and halogen salts 514 Other inorganic chemicals 533 Pigments, paints, varnishes, and related materials 541 Medicinal and pharmaceutical products 551 Essential oils, perfume, and flavor materials 554 Soaps, cleansing, and polishing preparations 561 Fertilizers, manufactured 581 Plastic materials, regenerated cellulose, and artificial resins Section 6 — Manufactured goods classified chiefly by material 629 Articles of rubber, n.e« 641 Paper and paper board 642 Articles of paper pulp, of paper, or of paperboard 651 Textile yarn and thread 652 Cotton fabrics, woven (not including narrow or special fabrics) 653 Textile fabrics, woven (not including narrow or special fabrics), other than cotton fabrics 655 Special textile fabrics and related products 656 Made-up articles, wholly or chiefly of textile materials, n.e.s 663 Mineral manufactures, n.e.s 665 Glassware 672-679 Iron and steel mill products 682 Copper 684 Aluminum 691 Finished structural parts and structures, n.e.s 692 Metal containers for storage and transport 694 Tools for use in the hand or in machines 697 Household equipment of base metals 698 Manufactures of metal, n.e.s Section 7 — Machinery and transport equipment 711 Power generating machinery, other than electric 712 Agricultural machinery and implements 714 Office machines 715 Metal working machinery 717 Textile and leather machinery $738,851,000 $551,218,000 $515,662,000 $470,613,000 2,219,000 736,631,665 85,492,692 2,357,191 12,277,866 5,708,132 13,268,455 2,072,453 11,360,957 5,323,511 6,142,987 4,234,657 2,454,799 2,836,650 11,190,463 332,230 10,714,900 10,752,366 696,655 2,613,162 1,997,477 267,918 8,524,322 8,505,919 2,080,240 1,023,559 60,448,969 1,649,441 2,674,502 2,326,394 2,605,352 20,092,397 2,873,424 2,171,919 1,014,728 6,718,787 105,045,075 5,393,216 15,413,908 7,711,316 7,540,179 6,673,393 3,426,422 2,598,000 4,058,019 2,450,620 5,572,576 37,019,342 1,767,618 1,465,450 6,345,314 6,280,998 6,718,810 9,115,937 9,940,505 343,024,596 21,235,669 18,915,124 3,345,735 9,048,639 4,862,706 2,803,000 548,414,828 2,353 513,308,888 4,818,000 465,797,057 86,167,144 78,437,486 56,349,393 2,112,268 13,156,502 7,955,246 15,261,038 376,915 11,895,093 5,691,917 4,900,548 3,493,752 2,066,160 3,991,634 3,737,974 1,082,128 8,284,192 6,366,387 19,090,930 140,696 11,494,421 4,008,401 4,461,935 4,880,985 1,624,551 3,244,324 1,846,037 1,142,273 4,949,261 3,807,572 11,900,330 303,149 8,864,919 4,050,887 2,934,986 4,440,664 1,158,935 3,156,928 1,339,479 1,486,176 2,205,303 10,522,996 682,522 1,079,478 16,735,304 760,722 549,001 16,363,611 744,271 3,036,842 2,191,762 685,121 6,653,067 1,489,167 3,449,063 4,021,806 703,569 4,617,037 1,600,179 3,704,900 4,606,754 1,050,784 3,790,624 6,634,866 2,497,663 4,463,914 4,563,330 3,766,568 3,933,126 1,708,566 52,040,213 2,771,191 54,786,335 2,636,127 52,186,742 1,827,556 2,251,683 2,049,032 1,817,658 17,564,865 2,715,702 2,061,208 1,070,721 4,454,309 100,980,443 2,518,725 2,529,404 2,588,571 1,998,190 17,670,167 2,905,517 1,984,914 808,515 5,434,107 99,391,708 2,886,740 2,260,810 2,853,685 1,959,444 12,705,293 3,045,061 2,093,863 1,083,539 5,451,173 94,022,083 4,252,818 13,475,007 4,406,043 6,615,839 4,287,602 2,253,411 1,809,040 2,652,923 2,176,859 4,541,496 22,542,889 2,131,416 1,124,713 2,493,676 3,959,253 6,209,974 6,677,031 5,254,891 240,080,369 3,906,672 15,364,571 2,592,632 8,065,693 5,556,132 3,586,656 2,159,458 3,917,918 2,187,648 3,696,104 19,360,641 3,036,271 1,123,845 1,786,289 3,269,380 4,073,039 5,479,805 4,481,466 211,274,819 4,292,079 14,385,743 2,764,343 8,315.232 3,740,421 1,956,749 1,739,155 2,426,831 2,534,201 3,729,911 20,232,601 2,203,977 1,318,609 1,110,052 2,940,288 4,339,726 4,900,432 5,172,270 199,871,380 11,528,782 11,642,472 2,438,653 1,932,952 4,778,692 12,735,725 9,676,734 5,644,590 2,779,524 4,156,519 12,699,103 10,865,937 2,221,251 4,589,438 5,661,021 $507,091,000 2,777,000 504,314,000 55,385,000 2,935,000 4,249,000 3,527,000 13,469,000 389,319 6,411,000 4,167,000 2,687,000 5,607,000 1,216,855 2,366,000 223,000 142,000 17,733,000 1,481,000 3,097,000 5,718,000 555,000 2,903,000 4,281,000 2,902,000 47,624,000 2,687,000 1,706,000 2,209,000 1,589,000 10,552,000 3,050,014 1,741,000 678,007 5,662,000 105,271,000 3,851,731 11,713,000 2,820,269 6,825,000 2,975,000 2,954,000 1,776,067 2,370,000 3,449,441 3,335,516 31,172,000 2,348,000 1,345,000 3,392,956 2,663,581 5,005,000 3,562,000 5,412,357 230,803,000 13,955,000 12,808,000 2,105,000 4,161,000 5,447,000 60 Table 16. — United States Exports to Venezuela, by Commodity Sections and Principal Commodity Croups, 1959—63 — Continued Nomenclature and description 1959 1900 1901 190*' 1903 > 718 Machines for special industries 719 Machinery an,si IT7 4,170.174 8,391,040 14,144.877 14.549,051 55.158.944 4,067,843 31,516.451 ."■'• ••• 1,005.704 1,957,075 4,547,359 4.144,475 4.409,094 1,957.499 1.547,674 3.834,958 4.544.658 5,053,746 6.444,168 6,748.475 5,946,531 6,444,168 19,350.000 00.375.000 tl.7U.fXXJ 1.414.704 8.003.000 9.000,000 10,873.000 00.575,000 7.140.000 31.171.000 :(.!>;< 117 1,145.559 1.571,397 5,016.000 4,167,000 4,415,000 4.051.000 1,654.495 3.006.594 4.104.698 5.363.193 8,940.000 N.Oill.lHHI Source: Basic data of the U.S. Bureau of the Census. 1 Due to statistical inconsistencies, these data are not comparable with Venezuelan import statistics. 2 Preliminary. Table 1 7. — Imports of Machinery and Transport Equipment, Total and from the United States, by Commodity Groups, 1962 Commodity group number and commodity group Thousands of dollars ' Imports, total Imports from United States 711 714 Power generating machinery, other than electric 19,817 5,919 14,464 6,516 14,136 114.495 79,889 937 84.114 4,678 6,814 1,967 15,417 3.440 713 7,939 714 4,464 715 6.548 710 75,641 741 731 734 Electrical machinery, apparatus, and appliances Railway and tramway locomotives and rolling stock 44,459 740 61.147 733 Road vehicles, other than motor vehicles 707 784 Aircraft 6,347 735 Ships and boats 1,615 Total 345,694 446,183 1 Converted at average selling rate for 1964 of 3.96 bolivarcs equal $1. Source: Ministcrio dc Fomonto, Bolttitl rfe Comtrcio Exterior, 1964, Caracas. Table 18. — Imports of Manufactured Goods, Total and From the United States, by Com- modity Groups, 1962 [Thousands of dollars 1 ] Commodity group number and commodity group 611 614 613 641 649 631 634 638 641 644 651 654 653 654 655 656 657 661 Leather Manufactured of leather and artificial or recon- stituted leather For skins, dressed whether or not dyed Unfinished rubber materials Rubber manufactures, n.e.s. Veneers, plywood, boards artificial or reconstituted wood and other wood, worked Wood manufactures Cork manufactures Paper and paperboard Articles made of paper pulp, paper or paperboard Yarns and threads of textile fibers Cotton fabrics of standard type (not including narrow- and special fabrics) Textile fabrics of standard type (not including narrow and special fabrics) other than cotton fabrics Tulle, lace, embroidery ribbons, trimmings, and other small wares Special fabrics of textile fibers and related products Made-up articles wholly or chiefly of textile mate- rials either than clothing and footwear) Floor coverings and tapestries Lime, cement, and fabricated building materials, except glass and clay materials Imports, total 4,476 10.644 3.500 10.490 4.109 610 074 Imports from United States 155 781 301 489 41 1.866 1,138 5,409 3.179 837 469 1.441 557 347 77 41.953 13.464 3.885 3.145 18.118 5.601 4.H5 , ,;,s 1.707 5.849 s-l 416 490 61 Table 18. — Imports of Manufactured Goods, Total and From the United States, by Com- modity Groups, 1962 — Continued [Thousands of dollars 1 ] Table 19. — Imports of Food and Live Animals, Total and From the United States, by Com- modity Groups, 1962 — Continued [Thousands of dollars 1 ] Commodity group number and commodity group Imports, total Imports from United States 662 Clay building materials and refractory building 1,004 3,849 3,395 7,216 2,274 174 51 869 73,469 4,869 123 6,363 523 276 358 44 2,635 47,493 74 5,071 1,094 1,572 7,591 65 517 14,055 4,538 1,675 4,472 4,654 6,754 35,221 696 663 Nonmetailic mineral manufactures, except of glass 2,338 66+ 1,022 665 4,360 666 Pottery 159 671 37 672 Pearl and precious and semiprecious stones, worked 2 673 Jewelry and goldsmiths', silversmiths' and plat- 180 681 21,249 68?. 2,885 683 Nickel 106 684 Aluminum 2,518 685 188 686 95 687 Tin 60 689 691 Other nonferrous base metals used in metallurgy 27 2,038 699 21,453 811 74 812 Sanitary, plumbing heating and lighting fixtures 2,555 821 831 Furniture and fixtures 815 425 841 Clothing and clothing accessories, except for 2,696 842 Fur clothing (except hats, caps, and gloves) and 40 SSI 27 861 Scientific, medical, optical, measuring and checking 7,358 862 2,637 863 Cinematographic films, exposed, whether or not 953 864 247 891 Musical instruments, gramophones, gramophone 2,455 892 4,295 899 Manufactured articles, n.e.s Total 18,997 339,573 146,691 Commodity group number and commodity group 021 022 023 024 025 026 029 031 .032 043 044 045 046 047 048 051 052 053 054 055 061 062 071 072 073 074 075 081 091 099 Milk and cream, fresh Milk and cream, evaporated, condensed, or dried Butter Cheese and curd Eggs Natural honey Dairy products, n.e.s Fish, fresh and simply preserved Fish, in airtight containers, n.e.s., and fish prep- arations, whether or not in airtight containers, including Crustacea and mollusks Wheat, including spelt and meslin, unmilled Rice Barley, unmilled Maize (corn), unmilled Cereals, unmilled, other than wheat, rice, barley and maize Meal and flour of wheat and spelt, including meslin.. Cereals, milled, except wheat flour Cereal preparations, including preparation of flour and starch of fruits and vegetables Fruits and nuts, fresh, not including oil nuts Dried fruits, including artificially dehydrated Fruit, preserved and fruit preparations Vegetables, fresh and dry, roots and tubers, not including artificially dehydrated Vegetables, preserved and vegetable preparations.... Sugar Sugar confectionery and other sugar preparations... Coffee Cocoa Chocolate and chocolate preparations, including chocolate confectionery Tea and mate Spices Feeding stuff for animals, not including unmilled cereals Margarine and shortening Food preparations, n.e.s Total Imports, total 163 27,220 18 5,970 3,517 2 5,006 956 1,680 19,261 523 49 1,176 173 131 10,027 7,892 1,171 4,080 5,924 1,929 113 12 272 965 3,345 290 1,321 113,040 Imports from United States 3,020 13 882 3,412 125 223 9,063 175 P) 1,176 255 162 14 4,963 1,120 2,656 4,093 1,196 88 3 1 3 1 Converted at average selling rate for 1962 of 3.96 bolivares equal $1. 2 Less than $500. Source: Ministerio de Fomento, Boletin de Comercio Exterior, 1962, Caracas. 1 Converted at average selling rate for 1962 of 3.96 bolivares equal $1. Source: Ministerio de Fomento, Boletin de Comercio Exterior, December 1962, Caracas. Table 19. — Imports of Food and Live Animals, Total and From the United States, by Com- modity Group, 1962 [Thousands of dollars 1 ] Commodity group number and commodity group 001 Live animals 011 Meat, fresh, chilled, or frozen 012 Meat, dried, salted, smoked, or cooked, not in air- tight containers 013 Meat in airtight containers, n.e.s., and meat preparations, whether or not in airtight containers Imports, total 1,330 5,600 424 1,559 Imports from United States 1,127 1,842 192 521 Table 20. — Imports of Chemicals, Total and From the United States, by Commodity Groups, 1962 [Thousands of dollars 1 ] Commodity group number and commodity group 511 Inorganic chemicals 512 Organic chemicals 521 Mineral tar and crude chemical products derived from coal, petroleum, and natural gas 531 Coal tar dyestuffs and natural indigo 532 Dyeing and tanning extracts and synthetic tanning materials Imports, total 8,585 14,287 480 2,624 2,126 Imports from United States 5,382 7,928 195 537 488 62 Table 20. — Imports of Chemicals, Total and From the United States, by Commodity Groups, 1962 — Continued [Thousands of dollars 1 ] Commodity group number and commodity group Imports, total Imports from United States 533 Pigments, paints, varnishes, and related products 4,493 31,724 6,927 2,334 4,010 1,981 31,140 2,564 17,809 5,772 552 Perfumery products, cosmetics, soaps, and cleansing 1,400 1,335 1,632 17,723 Total 110,712 62,764 1 Converted at average selling rate for 1962 of 3.96 bolivares equal $1. Source: Ministerio de Fomento, Boletin de Comercio Exterior, 1962, Caracas. Table 22. — Imports of Mineral Fuels, Lubri- cants, and Related Materials, Total and From the United States, by Commodity Groups, 1962 [Thousands of dollars 1 ] Commodity group number and commodity group Imports from United States 311 Coal, coke, and briquettes 312 Petroleum, crude and partly refined 313 Petroleum products 314 Natural and artificial gas 315 Electric energy Total 6,553 1 Converted at average selling rate for 1962 of 3.96 bolivares equal $1. 2 Less than $500.00. Source: Ministerio de Fomento, Boletin de Comercio Exterior, 1962. Table 21. — Imports of Crude Materials, Inedible, Except Fuels, Total and From the United States, by Commodity Groups, 1962 [Thousands of dollars 1 ] Commodity group number and commodity group 211 212 221 231 241 242 243 244 251 261 267 271 272 283 284 285 291 292 Hides, skins, except fur skins, undressed Fur skins, undressed Oilseeds, oil nuts, and oil kernels, including crushed or ground, edible or inedible Crude rubber, including synthetic and reclaimed Fuel wood and charcoal Wood in the round or roughly squared Wood, shaped or simply worked Cork, unworked and waste Paper pulp and waste paper Silk, not manufactured into yarn, thread, or fabrics. Wool and other animal hair, not manufactured into yarn, thread, or fabrics Cotton, not manufactured into yarn, thread, or fabrics Jute, not manufactured into yarn, thread, or fabrics Vegetable fibers, other than cotton and jute, not manufactured into yarn, thread, or fabrics Manmade fibers, not manufactured into yarn, thread, or fabrics Waste materials from textile fabrics, including rags. Fertilizers, crude Crude nonmetallic minerals, excluding coal, petro- leum, fertilizers, and precious stones Iron ore and concentrates Iron and steel scrap Nonferrous base metal ores and concentrates Nonferrous base metal scrap Silver and platinum ores Crude animal materials, inedible, n.e.s Crude vegetable materials, inedible, n.e.s Total Imports, total 983 4 12.921 7,316 59 1,008 565 288 6,402 1 23 1,812 ( 2 ) 59 2,750 140 30 3,206 ( 2 ) 376 99 ( 2 ) 1 201 2,364 40,609 Imports from United States 787 ( 2 ) 2,190 3,681 11 40 543 ( 2 ) 3,170 1 ( 2 ) ( 2 ) 981 77 5 1,822 ( 2 ) 376 41 ( 2 ) ( 2 ) 43 1,278 15,718 Table 23. — Imports of Animal and Vegetable Oils and Fats, Total and From the United States, by Commodity Groups, 1962 [Thousands of dollars 1 ] Commodity group number and commodity group Imports, total Imports from United States 1,158 3,661 1,020 1,122 1,990 413 Processed oils and fats, and waxes of animal or 376 Total 5,838 3,788 1 Converted at average selling rate for 1962 of 3.96 bolivares equal $1. Source: Ministerio de Fomento, Boletin de Comercio Exterior, 1962. Table 24. — Imports of Beverages and Tobacco, Total and From the United States, by Com- modity Groups, 1962 [Thousands of dollars 1 ] Commodity group number and commodity group Imports, total Imports from United States 76 3,915 1,706 42 2 45 1,126 U Total 5,739 1,486 1 Converted at average selling rate of 3.96 bolivares equal $1. Source: Ministerio de Fomento, Boletin de Comercio Exterior, 1962, Caracas. 1 Converted at average selling rate for 1962 of 3.96 bolivares equal $1. 2 Less than $500. Source: Ministerio de Fomento, Boletin de Comercio Exterior, 1962, Caracas. 63 Table 25. — Imports of Miscellaneous Commodi- ties and Execution of Transactions, Total and From the United States, by Commodity Groups, 1962 [Thousands of dollars 1 ] Commodity group number and commodity group Imports, total Imports from United States 921 Live animals (except £sh and microbial cultures) 285 6,015 7,332 55 931 Returned goods and special transactions 3,935 999 Gold, silver, coins, banknotes and similar articles 894 Total 13,632 4,884 1 Converted at average selling rate for 1962 of 3.96 bolivares equal $1. Source: Ministerio de Fomento, Boletin de Comercio Exterior, 1962, Caracas. Table 26. — Population of Venezuela by Prin- cipal Zones and Federal Entities, 1950 and 1961 1950 1961 Increase, Zone Number Percent of total Number Percent of total percent 1,618,305 31.8 2,260,778 29.9 39 7 570,336 258,759 211,110 304,181 273,919 2,433,514 11.2 5.1 4.1 5.9 5.4 47.8 923,863 340,450 270,668 399,163 326,634 3,890,878 12.2 4.5 3.6 5.3 4.3 51.5 62 31 6 28 2 31 2 Trujillo 19.2 59 9 Federal District.. 709,602 276,273 189,891 242,923 132,436 368,169 122,153 52,111 79,944 95,489 164,523 1,038,925 13.9 5.4 3.7 4.8 2.6 7.2 2.4 1.0 1.6 1.9 3.2 20.4 1,257,515 492,349 313,274 381,636 175,291 489,140 203,707 72,652 139,271 121,077 244,966 1,403,082 16.6 6.5 4.1 5.0 2.3 6.5 2.7 1.0 1.8 1.6 3.2 18.6 77.2 78 2 65 57 1 Yaracuy 32.4 32 9 Portuguessa 66.8 39 4 74 2 26 8 48 9 Eastern Zone 35.2 242,378 75,899 334,107 175,560 131,631 45,702 33,648 4.8 1.5 6.6 3.4 2.6 .9 .7 382,002 89,492 402,292 246,217 217,543 31,757 33,979 5.0 1.2 5.3 3.2 2.9 .4 .4 57.6 Nueva Esparta... Sucre Monagas 17.9 20.4 40.2 65.3 Amazonas Delta Amacuro -6.9 .9 Total 5,091,543 100.0 7,555,799 100.0 48.3 Table 27. — Motor Vehicles in Circulation, by Federal Entities, December 1961 Federal entity Total Central zone Federal District Miranda Aragua Carabobo Yaracuy Lara Portuguessa Cojedes Barinas Apure Guarico Western zone Zulia Merida Tachira Trujillo Falcon Eastern zone Anzoategui Nueva Esparta Sucre Monagas Bolivar Federal Territory of Amazonas Delta Amacuro Number 371,982 235,171 73,172 19.7 59,437 16.1 33,690 9.1 26.920 7.2 5,713 1.5 15,267 4.1 6,833 1.8 2,532 .7 3,990 1.1 1,581 .4 6,036 1.6 93,074 44,918 12.2 7,911 2.1 15,037 4.0 9,022 2.4 16,186 4.3 18,307 4.9 2,177 .6 6,215 1.7 7,246 1.9 9,056 2.4 228 .1 506 .1 Percent of total 100.0 11.8 Source: Ministerio de Fomento, Boletin Mensual de Estadistica, July- September 1962, Caracas. Table 28. — Total Imports, by Custom Ports, for 1962 Custom ports La Guaira Maracaibo Puerto Cabello Puerto la Cruz (Guanta) Las Piedras Ciudad Bolivar Puerto Caripito Puerto Sucre Guiria Carupano Pampatar San Antonio del Tachira Total In kilograms 890,055,237 264,289,699 702,228,227 80,442,305 35,403,223 229,054,538 2,610,669 31,904,211 5,276,768 10,272,229 1,367,687 15,379,146 2,268,233,939 Percent 39.2 11.6 32.0 3.5 1.6 10.1 .1 1.4 .2 .5 .1 .7 100.0 In bolivares l '., 209,578, 320 549,705,832 724,606,610 174,719,978 37,802,849 126,606,579 3,349,432 28,187,276 17,562,854 19,229,573 3,204,465 5,464,612 3,900,018,380 Percent of total value 56.7 15.1 18.6 4.5 1.0 3.2 .1 .7 .4 .5 .1 0.1 100.0 Source: Ministerio de Fomento, IX Censo Naeional de Poblacion, Resultados Preliminares por Centres Poblados, 1962, Caracas. 1 The average selling rate for the bolivar in 1962 was 3.96 bolivares = $1. Source: Ministerio de Fomento, Boletin de Comcreio Exterior, December 1962, Caracas. 64 TRADE LISTS The U.S. Department of Commerce, Bureau of International Commerce, Washington, D.C., 20230, and the Department's Field Offices have trade lists at $1 each for Venezuela. The lists give names and addresses of agents, wholesalers, dealers, distributors, importers, exporters, producers, and refiners in Venezuela. A — agents D — dealers or distributors E — exporters I — importers M — manufacturers P — producers R — refiners Air Conditioning and Refrigeration Equipment — I D M Aircraft and Aeronautical Equipment — I D American Firms, Subsidiaries, and Affiliates Architects, Builders, Contractors, and Engineers Automotive Products — M Automotive Vehicles and Equipment — I D Beverages, Alcoholic — I D Beverages, Alcoholic — M Beverages, Nonalcoholic — M Boat and Ship Builders, Repairers, and Chandlers Books, Magazines, and Periodicals — I D Boots and Shoes — I D Boots and Shoes — M Canneries and Frozen Foods — P E Chemicals — I D Clothing— M Coffee, Tea, and Cocoa — E Confectionery — I D M Cooperage and Containers — I D Dairy Producers Dry Goods and Clothing — I D Electronic Equipment for Home Entertainment, Phonograph, Records, and Pre-Recorded Tapes- IDM Electronic Equipment, Electron Tubes, and Other Electronic Components and Accessories — I D M Feedstuffs— I D M Fertilizers — I D M E Fibers — P E Furniture — M Glass and Glassware — I D M; Chinaware and Household Pottery Products — I D Hardware — I D Household Appliances — I D Instruments, Medical, Surgical, Hospital, Scientific, and Process — I D M Iron and Steel, Nonferrous Metals and Building Materials — I D Laundry and Dry Cleaning Industry Leather and Shoe Findings — I D Lumber, Plywood, and Veneer — I A E Machine Tools, Dies, Other Metalworking Machin- ery, and Industrial Furnaces — I D Machinery, Equipment, and Supplies, Electrical — I D Machinery and Equipment, Except Electrical — I D Machinery and Equipment, Farm — I D M Meat Packing, Sausage, and Casings Medicinal and Toilet Preparations — 1 D M Metallurgical and Metalworking Plants Mining Companies and Exporters of Ores Motor Bus Lines and Transport Companies Musical Instruments — -I D Office Supplies and Equipment, Paper, and Stationery — I D Oils (Animal, Fish, and Vegetable)— I D P R E Paints, Varnish, and Pigments — I D M Petroleum Products — I DPR Photographic Supplies Dealers and Photographers Plastics Materials— I D M Printers, Lithographers, Engravers, and Publishers Provisions — I D Pulp and Paper Mills Seeds and Bulbs — I D E Sporting Goods, Toys, and Games — I D Tanneries Tobacco and Tobacco Products — I D M Vending Machines — I D Waste Paper and Rags — I D 65 PENN STATE UNIVERSITY LIBRARIES NOW ADDDD712fifl7M the to < port Stirring changes in the world's markets could mean export sales opportunities not significant in your earlier surveys. 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