IMPORT-EXPORT: AMERICAN BUSINESS RESOURCES
Your complete guide on how to start and do business with the USA, Central and South America. Information such as import/export regulations, customs information, tax , currency, copyrights, etc.

BUSINESS IN VENEZUELA
II. INTERNATIONAL LEGAL RELATIONSHIP

1. Trade Agreements
A. Marrakesh Agreement that Establishes the World Trade Organization (WTO).
Venezuela is a founding member of the WTO, as of January 1st 1995. This is the main international agreement relating to foreign trade and its rules represent the basic regulations for Venezuela's international commercial relations. This treaty, also known as GATT 94, succeeds the treaty of GATT 1947, however Venezuela retains its relations, under the regulations of the latter, with those countries that are yet not part of the WTO, but are still members of GATT 1947. With the access of Venezuela to the WTO, the country has acquired commitments in all the subjects referred to in GATT 1947 plus the new topics in international trade, such as:
a) Agreement in tariff and services (known as GATS)
b) Agreement related to intellectual property rights (known as TRIPS)
c) Investment measures.
d) The integrate system of controversies solution, and
e) The inquire mechanism of trade policy.

B. Latin-American Integration Association (LAIA).
This is the largest integration zone in the Region. It is comprised of Argentina, Bolivia, Brazil, Colombia, Chile, Ecuador, Mexico, Paraguay, Perú, Uruguay, and Venezuela. Although the undertaking that are by this Association, which seek to create a common market are flexible, Venezuela has concluded an important number of Agreements covering certain goods within the framework of this Association. They deal mainly with tariff reductions and include the following countries:
a) Argentina,
b) Brazil,
c) Uruguay, and
d) Paraguay
Also, within the framework of this Association, is the Latin American Regional Preference Tariff Agreement among all its members and numerous other agreements in specific sectors (chemical, photographic, phonografic and, petrochemical) where tariff preferences are given to various items. The Agreement signed between the Central Banks of the LAIA States, called the Reciprocal Payment Agreement, enables commercial transactions to be carried out in the local currencies of the member countries of the Association. The Venezuelan Central Bank is a signatory to similar Agreements with the Central Banks of Cuba, Jamaica, Dominican Republic and Malaysia.

C. The Free Trade Agreement between Colombia; Mexico and Venezuela, The Group of Three (G-3).
This relatively new integration agreement, among Colombia, Venezuela and Mexico, aims to set up a free trade zone between the three countries. It has been in force since January 1st 1995 and provides a program of tariff reductions to be implemented over a period of ten years. In addition, it contains specific rules in areas which include custom valuation, rules of origin, investment measures, intellectual property, etc. In summary, it covers the basic areas of the economy, and most of its rules are inspired by the WTO and NAFTA.

D. Andean Community.
Like the G-3, the Andean Community is also an Agreement within The LAIA framework. It has been in force in Venezuela since 1973, and since 1992 created a free trade zone for an entire universe of items among Bolivia, Colombia, Ecuador and Venezuela. Peru while also a member of the pact, joined the free trade zone in 1994.
A customs union which was one of the main goals of the Andean Community, came into effect on February 4th, 1995 with a common external tariff (CET) applicable, with exceptions, in the free trade zone. The Andean Group is the most significant integration scheme of all the integration pacts to which Venezuela is involved. It has its own institutional framework and many subjects are regulated by common authorities, such as: foreign investment, rules of origin, custom valuation, intellectual property, dumping, and others.

E. Central American Common Market (CACM).
Venezuela has trade agreements with countries of the Central American Region (Costa Rica, El Salvador, Honduras and Nicaragua) within the framework of the LAIA's norms despite the fact that the Central American Countries are not members of this Association. Venezuela is currently negotiating a much broader agreement with the entire block of CACM.

F. Venezuela and the Caribbean.
Venezuela has a trade agreement with the Caribbean Community (CARICOM) which has been in force since 1992. Recently, July 24th, 1994, Venezuela promoted and became a founding member of the Association of Caribbean States, a new agency set up for the member countries of the integration schemes operating in the Caribbean basin: CARICOM, CACM and G-3. It also includes other Caribbean countries, such as Puerto Rico, Cuba and the Dominican Republic; and countries that are not located in the Caribbean
basin including El Salvador and Suriname. The aim of this new ample pact is to create an economic area.
The first secretary general of this agency is a Venezuelan which may facilitate improved relations between Venezuela and the Caribbean.

G. Venezuela and Chile.
Venezuela has a Bilateral Free Trade Agreement with Chile, which began in 1993, with an aim to achieve a tariff liberalization program. It is to be concluded with total liberalization by January 1st, 1999. It also contains provisions for dealing with unfair trade practices, internal tax treatment, government purchases, investments, technical norms and services.

H. Other Bilateral Agreements.
Venezuela has also signed, within the framework of the LAIA's norms, trade agreements with Cuba and Trinidad and Tobago.

I. Venezuela and MERCOSUR.
Venezuela is currently negotiating a free trade agreement with MERCOSUR (Argentina, Brazil, Uruguay and Paraguay). The Venezuelan authorities have announced that for November of 1996 the negotiations might be concluded.

2. Investment Agreements

A. Multilateral Agreements.
a. Multilateral Investment Guarantee Agency.(MIGA).
b. Convention on the Settlement of Investment Disputes between States and Nationals ofN Other States (ICSID).
c. Convention on the Recognition and Execution of Foreign Arbitral Sentences (New York Convention, ONU)

B. Bilateral Agreements
Venezuela is signatory to Bilateral Investment Treaties with the following countries: Netherlands, Argentina, Switzerland, Ecuador, Chile, Portugal, Barbados the Czech Republic, Lithuania, Denmark and the United
Kingdom.
Negotiations have finished and await Congressional approval with Peru.
There are negotiations ongoing with the United States aiming the to sign a treaty in the near future;
Venezuela and the US are currently signatories to a program (1990) regarding the protection and promotion of bilateral investment through the Overseas Private Investment Corporation (OPIC).

C. Taxation Agreements.
a. Venezuela is a signatory of treaties to avoid double taxation in transportation matters with: USA, Chile, Netherlands, Canada (air and sea); Belgium, Brazil, Colombia, France, German, Spain, Switzerland, Trinidad and Tobago (air only).
b. Venezuela is a signatory of treaties to avoid double taxation in income tax and to prevent fiscal evasion with France and Italy. Negotiations have finished with Belgium, Sweden and Netherlands. Congressional approval is expected in the near future.

D. Intellectual Property Agreements.
Venezuela has been a member of the World Intellectual Property Organization (WIPO) since 1984, and has ratified the following agreements within the framework of this Organization:
a. The Bern Agreement for the Protection of Literary and Artistic Works.
b. The International Rome Convention on the Protection of Artists Interpreters or Executors, the Producers of Phonograms and the Organisms of Broadcast.
c. The Paris Convention for Industrial Property Protection

3. Inter American Agreements
Venezuela has been a member of the Organization of American States since 1952, and has ratified, under the auspices of this continental cooperation scheme, among others, the following treaties:
a. Inter-American Convention on conflict of Laws relating to Cheques.
b. Inter-American Convention on conflicts of Laws relating to Companies.
c. Inter-American Convention on Evidence and Information of Foreign Law.
d. Inter-American Convention on Extraterritorial Validity of Foreign Judgments and Arbitral Awards.
d. Inter-American (Panama) Convention on International Commercial Arbitration.
e. Inter-American Convention on Receipt of Evidence in a Foreign Country.
f. Inter-American Convention on Requisitorial and Rogatory Letters.
g. Inter-American Convention on the Legal Regime for Powers of Attorney to be utilized in a Foreign Country.
h. Inter-American Convention on the Law Applicable to International Contracts.