The U.S. Embassy in Caracas recently reported that the lower house of the Venezuelan Congress gave final approval to the double taxation treaty between Venezuela and the United States on July 15. The treaty strengthens the U.S.- Venezuelan commercial bilateral relationship and seeks to reduce or eliminate withholding rates in the respective countries. The bill now goes to President Chavez for signature. If President Chavez signs the treaty legislation and the treaty is ratified by the U.S. Senate, it will enter into force on January 1, 2000. Full cable available.
Telecommunications is the only sector that remains closed to new foreign investment in key areas.
However, it has been the government's policy to not issue licenses to operate in this field to other providers. There is currently much discussion about opening up this sector to additional providers. A committee has been formed to advise the government on appropriate regulations and regulatory bodies needed to govern an open telecommunications sector. Full cable available. Ecuador Congress Poised to Reject Privatization Bill President Mahuad's proposed privatization law was voted down by a majority of Deputies on June 24 when the measure faced the first of two required votes.