Bridges Weekly Trade News Digest • Volume 6 • Number 39 • 14th November 2002

US Requests Consultations On Venezuelan Agricultural Barriers


On 7 November, the United States requested consultations with Venezuela at the WTO over aspects of the Latin American country’s agricultural import regime. The dispute focuses on Venezuela’s import licensing processes, which according to the US Trade Representative (USTR) restrict US agricultural exports to Venezuela. American agricultural exports to Venezuela are estimated at about USD 200 million per year. According to one trade source, the US is looking to secure market access for its agricultural surpluses in the wake of last May’s 80 percent increase in US support for its domestic agricultural producers.

The USTR alleges that Venezuela has imposed "a variety of discretionary import licensing practices to impede or prevent imports of agricultural products" from the US. As an example, the USTR said that Venezuela requires that importers of corn often purchase domestically produced feed grains in order to obtain import licenses. Consequently, the USTR asserts, this has led Venezuelan corn imports to drop by almost 60 percent over the past year.

The US is also challenging other Venezuelan practices, including a lack of published rules on licensing procedures and delays in processing applications, which have allegedly reduced US exports of sorghum, dairy products, grapes, poultry, beef, and soybean meal. "We hope that Venezuela will take our concerns seriously and use the consultations as an opportunity to bring its import regime for agricultural products into full compliance with WTO rules," USTR Robert Zoellick said.

Venezuela has 30 days to consider whether to agree to consultations with the US. If the discussions begin and do not produce a resolution after sixty days, the United States can formally initiate a dispute settlement panel process.

"U.S. Seeks WTO Consultations with Venezuela in Dispute over Rules Restricting U.S. Agricultural Imports", USTR PRESS RELEASE, 7 November 2002.