EnThe Organization of American States looks set to eject Venezuela, following a similar move by the Mercosur trade bloc, as outlined in Panjiva research of December 2. Panjiva analysis of Venezuela’s trade with its five largest trading partners ( U.S., China, Mexico, Brazil and Colombia) shows imports dropped 18.2% in January vs. December, and 20.1% on a year earlier. That included shipments from Brazil and Colombia dropping 77% and 22% on a month earlier to reach new lows.
The drop in imports outpaced a 1.5% fall in exports, which were still 65.2% higher than a year earlier due to higher oil prices. As a consequence a country with food and medicine shortages, CNN reports, it ran a $854 million trade surplus with its top five partners in January, or $4.65 billion over the past 12 months.
Source: Panjiva
The increase in oil exports may not last. Shipments to the U.S. and China over the two months to January 31 dropped 5.9% vs. the same period to December 31. That included a 6.4% rise in average prices, as a consequence of which volumes shipped – a proxy for production – may have dropped 12.3%. That may also be the result of a shortage of funds to support shipping, as reported by Reuters previously. While benchmark prices increased for February they have subsequently dropped back to $41.2 / barrel, the lowest since November. The lower price may come at the same time as OPEC-required production cuts take effect, and may be extended according to Bloomberg.
Source: Panjiva
Shipments of food officially recorded by the governments of Brazil, Colombia and Mexico increased 12.0% in January on a month earlier. Colombian exports specifically jumped 51.3% in the month, though they are still at just 19% of the level seen in the same month of 2013.
Source: Panjiva
