As a result of Venezuela's departure in 2006 from the G3 Free Trade Agreement, in which it participated with Mexico and Colombia, Mexican investors do not have an international instrument that grants legal certainty to their investments in the Venezuelan economy.
Trade and investment flows between Mexico and Venezuela, today in the midst of political uncertainty after a disputed presidential election this weekend, have maintained a downward trend in the last decade, until they are currently marginal, according to data of the Bank of Mexico.
In 2023, Mexican imports of products from Venezuela were US$17 million (-56% year-on-year), while exports of goods from Mexico to the Venezuelan market totaled US$228 million (-32% year-on-year).
From another angle, Venezuela's participation in Mexico's exports was 0.04% and the South American country's participation in Mexico's imports was a meager 0.003%.
In the last decade, the total value of bilateral trade contracted 89% from US$2,243 million (with a Mexican surplus of US$2,062 million) to just 245 million last year (with a Mexican surplus of US$211 million).
In general, Venezuela's international merchandise trade with the entire world has decreased in recent years, to US$7.5 billion in exports and US$11.3 billion in imports in 2023, according to calculations by the World Trade Organization (WTO). .
Among the Mexican products exported to Venezuela are corn; organic surface agents (except soap) and washing preparations; medicines; mixtures of odoriferous substances and mixtures; and petroleum oils, except crude oil.
Venezuela exports products such as oil, shrimp, urea and aluminum to the world, some of which it shipped to Mexico in the past.
Also, the flows of Foreign Direct Investment (FDI) between Mexico and Venezuela remain practically zero, with accumulated investments by Venezuelan companies in Mexico for US$ 190 million and with disinvestments by Mexican companies in Venezuela.
In 2014, the Mexican Ministry of Foreign Affairs calculated that Mexican companies had productive investments worth US$1,285 million in that South American country.
As a result of Venezuela's departure in 2006 from the G3 Free Trade Agreement, in which it participated with Mexico and Colombia, Mexican investors do not have an international instrument that grants legal certainty to their investments in the Venezuelan economy.
ADVERSE ENVIRONMENT
With this new context, in August 2008, the government of then Venezuelan President Hugo Chávez expropriated Cemex's assets.
“The region continues to be affected by the economic and political crisis in Venezuela, which has had a major impact on the regional economy and poses a significant economic, social and security risk,” Cemex said in its 2023 report.
Then, in February and March 2009, Coca-Cola FEMSA faced the takeover of several of its facilities in that country by dissatisfied workers.
Currently, this company maintains operations there. But as of December 31, 2022 and 2021, the fair value of its investment in Venezuela was zero.
A third case was that of Gruma, whose assets in Venezuela were forcibly acquired on May 12, 2010 by the government of that nation.
Gruma held its investment in Monaca and Demaseca through two Spanish companies, Valores Mundiales and Consorcio Andino.
Regarding this last case, on July 25, 2017, a court resolved the arbitration in favor of Valores Mundiales and Consorcio Andino and ordered Venezuela to pay these companies US$ 430.4 million in damages, an amount that, updated As of December 31, 2023, considering interest, it amounted to US$ 630 million.
On the other hand, the Venezuelan food and beverage company Empresas Polar began commercial operations in Mexico, with the aim of producing tequeños, a typical Venezuelan snack filled with cheese.
