Here is an article published on the website of Figaro
Title:
Venezuela, a rocky road for French companies
Renault, Alstom and Total, implemented in very the country, accumulate litigation.
France has too long ignored Latin America, recently recognized by President Sarkozy. In fact, it was eight years a Minister of Foreign Trade had not come to Caracas. On a mission to Venezuela to defend French excellence, Anne-Marie Idrac surprised at the paradox: the third foreign investor (1.7 billion), France has just 2% market share in trade (625 million dollars in 2008). The French are far behind the United States, Venezuela's largest trading partner despite the recurrent anti-imperialist discourse initiated by President Hugo Chavez. At European level, they are overtaken by Italy and Germany. During his ministerial exchanges, Idrac set the table more "contentious": Repatriation of foreign exchange for Renault, arrears payment to Alstom for the construction of the subway and the payment of compensation to Lafarge.
Three examples alone that summarize the main obstacles in Venezuela. Total Venezuela boss George Bures - 90% of French investments - speaks of "instability and unpredictability of the regime: there is never safe from a new law or tax more» . The 2007 decision to nationalize several strategic sectors like oil has led to bitter negotiations: "We got a deal because we have agreed to be repaid in oil," he says. But above the oil tanker is in a strong position. The brink of financial strangulation, the national oil PDVSA suffers from a lack of investment (production fell by one million barrels per day for ten years) and a shortage of qualified staff. "For twenty years we are present, we have demonstrated expertise and invest in the long term," says George Bures. And for good reason: Total will not let go this could oil El Dorado surpass Saudi Arabia in terms of reserves.
Lafarge has the same impact. Within the scope of nationalization adopted in June 2008, the cement is still waiting-payment of $ 300 million in compensation negotiated. Renault, meanwhile, is fighting for several months to obtain an import license. "The only way to escape the quota is to invest", explains project manager, Patrick Blain. In 2010, the manufacturer will have its assembly plant in Valencia. Growing insecurity
Another puzzle business, the currency market. CADIVI body government has a stranglehold on everything, the payment of imports as the repatriation of dividends. Hundreds of millions are stranded in the country as well. "It takes months to import at the official rate," says Jean-Louis Bourgier, International Director of Casino, French second largest investor with 300 million. "Today, more than half of our imports are purchased on the open market, thus generating more inflation. "Meddlesome bureaucracy, rampant corruption, runaway inflation ... Business leaders also complain of growing insecurity. Just the weekend Last, the capital has seen 50 homicides. To cope, companies are acquiring more and more armored cars. But then, why stay? "We earn money, recognizes the responsibility of Casino. It is a very dynamic consumer market (28 million), the American way. "The trip
Secretary of State for Foreign Trade will be allowed to settle some disputes: Alstom still has a chance to win the contract to renovate the subway in Caracas - 1.3 billion euros of investment - even though that it seemed to the Spaniards acquired. Diosdado Cabello, Minister Public Works and confidant of Chavez, "stressed the necessity of technology transfer and he clearly said he was not satisfied with the English proposal, welcomed Anne-Marie Idrac.
From our special correspondent in Caracas, Anne Cheyvialle
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