Reaction from Hugo Chavez

By April 11, 2008Trade

Hugo Chavez continues his attack on democracy and capitalism.

The largest steel mill in Venezuela, Ternium-Sidor is to be nationalized, according to a presidential decision made following yet another strike closure.

Ternium-Sidor, which is sixty percent owned by Argentineans was not able to reach an agreement with unions on wages. When the work force went out on strike President Hugo Chavez ordered its nationalization.

The move was in the works before yesterday’s ignoble vote in the House to block the U.S-Colombia Free Trade Agreement — earlier this week, foreign-owned cement companies were nationalized — but Chavez must be even more emboldened. If you abandon your allies, why should your foes fear you?

(More on Chavez’s attack on the private sector in The Economist.)

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