This report examines the political and economic situation in Venezuela and U.S.-Venezuelan relations. It is divided into three main sections -- political background, current political and economic environment, U.S. relations and policy -- and also includes introductory and outlook information.

This report discusses the current Congressional issues in relation to Venezuela, including background on the political situation and recent developments, the economic conditions, relevant U.S. policies, and the legislative initiatives in the 111th and 112th Congresses. The United States traditionally has had close relations with Venezuela, a major supplier of foreign oil, but there has been friction in relations under the government of populist President Hugo Chávez. U.S. officials have expressed concerns about human rights, Venezuela's military arms purchases, its relations with Cuba and Iran, and its efforts to export its brand of populism to other Latin American countries.