22 April 2011

VENEZUELA: Chavez Exits Andean Trade Pact After 38 Years; Hikes Windfall Oil Tax To 95%.

AP/ WaPost /

   Venezuela announced that it will leave the Andean Community of Nations/CAN trade pact after 38 years.
   In 2006, President Hugo Chavez announced that Venezuela would exit the five-nation group after fellow members Peru and Colombia approved free trade deals with the USA.
   Venezuela's five years notice expires today.

ALSO:   President Hugo Chavez has hiked the 2008 oil windfall tax to take advantage of rapidly rising prices...and use the extra income for social spending...ahead of next year's election.
   Under the new rules, the government can take as much as 95%.  Previously the tax was 60% ... and only when prices reached the $100 bbl. level.
http://af.reuters.com/article/energyOilNews/idAFN2212275020110422?pageNumber=2&virtualBrandChannel=0&sp=true