It is impossible not to think of maquilas when you hear about Special Economic Zones (SEZs). The first thing that comes to mind is cheap labor, violation of labor rights, greater exploitation of the worker, low or no taxes and exports. This is what characterizes an SEZ according to the World Bank manuals.
Let us ask ourselves the following question: What would make large foreign capital move so that, instead of investing in their countries, they come to Venezuela or any other nation? Obviously maximizing your profit. In a capitalist system, given the labor-capital contradiction, profits will be higher to the extent that wages are lower.
I am concerned about the naivety of those who affirm that there will be no job losses in the SEZs when it is precisely this aspect that guarantees the highest capital gains. In any case and since the deputies of the National Assembly (AN) assure that this law will not violate the constitutional rights of Venezuelan workers and that there will be no exemptions to the Organic Labor Law, the suggestion, so that there is no doubt, is make it explicit in the bill. Leave it in writing.
What else would excite large foreign capital to "invest" in our country? That after having obtained extraordinary profits they should not deliver them to the State through taxes and / or tariffs. This is clearly established in the ZEE bill: "they may have the automatic, total or partial refund of taxes for a period of up to ten (10) years" (art. 19). In this regard, what more tax exemptions can be offered to transnationals if, since 1999, they do not pay taxes in our territory as established in the Double Taxation Agreement?
So for what other reasons would they come? Most likely for what they have always come: to capture cheap foreign exchange from the State and live off the oil rent. In the SEZ bill, they took care to explicitly guarantee it by ensuring their own exchange regime, freely convertible, regardless of what is decided and governed in the rest of the country (art 25). We suggest reviewing this article. In order to guarantee the principle of territorial integrity, the monetary, financial and exchange system must be unique and equal throughout the territory.
If we look closely, the previous three points are nothing new in our country. So what makes the difference with this SEZ bill? Why would they come despite the economic blockade? There are two issues that concern me: 1) our natural resources and 2) territorial integrity and our sovereignty.
At the public hearing held on 26-05-2021 on this law, it was reported that territories with large deposits will have priority to establish the SEZs. It is also established by articles 5 and 8 in number 2 of the bill. We are concerned about the Orinoco Oil Belt with the world's largest oil reserve and the Orinoco Mining Arc which has the 2nd world gold reserve (7 thousand TN), the 6th of diamonds (33,8 million TN), in addition to a of the world's largest reserves of coltan, among many other minerals. We are also concerned about our fishing riches on the coasts.
In any case, for the tranquility of all Venezuelans, if the law is approved, it should be explicit that all natural resources belong to the people (art. 12 of the CRBV) that any mixed association must have the majority shareholder of the State, and that they must pay high taxes and royalties for the exploitation of our resources.
It is not clear in the bill how special these SEZs can become in terms of the legal establishment and the justice system that governs them. Says Master Luis Britto "Sovereignty is the perpetual and supreme power of a political body to give its own laws, apply them with its own organs and decide the controversies about said application with its own courts."
It is suggested to clearly establish that under no circumstances will differences and conflicts be settled in alternative means of justice and with figures of arbitration agreements. In the same way, make it clear that these zones will be governed by the laws of the Republic, therefore, any exception to guarantee that “special” condition must, necessarily, be approved by the legislative branch.
I am alarmed that the special is so special that the SEZs, having their own special legislation, alternative systems of justice, different economic, financial, monetary and exchange systems, but also in areas with abundant natural and border resources, function as autonomous territories , violating the territorial integrity, the security of the Nation and our sovereignty, to the point of eventual attempts at secession. This is a very delicate aspect that should be shielded in the bill to avoid misinterpretations.
The possibility that the transnationals do not hand over to the State the foreign exchange they obtain from the exports of our natural resources and what they manufacture in our territory is also a matter of concern. The percentage of the foreign currency that they are obliged to deliver to the State must be established, in addition to guaranteeing the principle of the unity of the national treasure. Otherwise, how would we comply with what they have sold us with this law: "that foreign exchange comes in to be able to increase wages."
It worries me that, as we say on these sides, they throw the death of the SEZs to the National Executive. According to the bill, it is the President of the Republic who has the exclusive power to create, by decree, the SEZs (art. 7). This decision is so transcendental for the Security and Defense of our Nation, that it should not fall on a single person. It must be the product of a debate in the National Assembly. In addition, the creation of SEZs implies establishing exceptions to what is established in the laws, which is the exclusive competence of the legislative power. It is suggested to review this aspect.
At this point, it is not very clear to me how this law would allow the cessation of unilateral coercive measures, as some deputies claim. Why would imperialism lay down its most powerful weapons, the genocidal blockade and the criminal attack on the Bolivar, if this law is approved?
Finally, I am also concerned, but above all it surprises me that in the public hearing of 26-05-2021 they affirmed that the SEZ was an initiative of Commander Chávez and that he wrote it “in his own hand” in the Plan of the Homeland. The SEZs do not appear anywhere in the Plan for the Homeland of 11-06-2012. They begin to appear in the Plan of the Homeland approved on 04-12-2013 (objectives 3.4.1) and with greater force in the one approved on 08-04-2019. We have no suggestions at this point, only concern.
