Chavez Oil Deal in Caribbean Is Bid to Challenge U.S. Economic Power in Region
Oooooops Exactly what Sadam did, now we will definitely have to be wataching for an attack on Venezuela
By Christopher Toothaker Associated Press Writer
Published: Sep 14, 2005
CARACAS, Venezuela (AP) - Venezuelan President Hugo Chavez has extended a preferential oil trade deal to 13 Caribbean countries in what he says is part of a plan to challenge U.S. economic domination of the region.
Under his plan, called PetroCaribe, Venezuela will soon sell up to 190,000 barrels of fuel a day to countries from Jamaica to St. Lucia, offering favorable financing while shipping fuel directly to reduce costs. It is expected to help those countries save millions of dollars (euros).
Chavez, a close ally of Cuban leader Fidel Castro, says the new plan is part of a vision of a "multipolar" world no longer controlled by "U.S. imperialism." He sees it as part of an alternative for international trade based more on regional solidarity than U.S.-style free trade.
The plan includes a US$50 million (euro40 million) fund to pay for social programs across the Caribbean, similar to those Chavez has started at home with rising oil profits.
Chavez has emerged as a leading critic of the U.S. government and its proposal for a Free Trade Area of the Americas, saying that plan would simply help big U.S. companies at the expense of Latin countries by drawing away their natural resources while doing nothing to confront systematic poverty.
Relations between Chavez and Washington have become increasingly strained, though the United States remains the top buyer of Venezuelan oil. Chavez has repeatedly accused the U.S. government of backing plots against him, and recently alleged Washington was preparing an invasion of his country.
U.S. officials strongly deny his claims but have expressed concerns about the health of Venezuelan democracy under Chavez, who was first elected in 1998 pledging a social "revolution" for the country's poor majority.
Still, the PetroCaribe plan is a welcome message for cash-strapped Caribbean nations that traditionally have looked to the U.S. for aid.
"PetroCaribe is good for a country like Jamaica," Jamaican Commerce Minister Phillip Paulwell said Tuesday during a trip to Trinidad. He said his island's deal will help free up vital funds for social projects at a time of high oil prices.
Grenada expects to save up to US$14 million (euro11.4 million) a year through the Venezuelan initiative, Energy Minister Gregory Bowen said Tuesday.
He said at that rate, after a decade the island "will have at its disposal over US$140 million (euro114 million)" to be used for public projects.
Venezuela and the 13 Caribbean countries signed on to PetroCaribe during talks in June. Under more specific deals signed by nine countries last week, the Caribbean nations will be required to pay only a portion up front and can finance the rest over 25 years at low interest rates.
The South American country, the world's fifth-largest oil exporter, plans to allow Caribbean nations to pay some debts with goods such as rice, bananas or sugar. Venezuela also plans to expand its tanker fleet for direct shipping while helping to upgrade Caribbean refineries.
"It's a modest contribution," Chavez said recently. Caribbean oil deals, such as similar ones with Brazil, Argentina and Uruguay, had shown "we can do a lot among ourselves as governments," he added.
Some Venezuelan opposition politicians argue the only reason Chavez is providing Caribbean nations such a bargain is to shore up support for diplomatic clashes with Washington. Caribbean countries make up roughly half of the 34-member Organization of the American States, where debates on the political situation in Venezuela have played out.
"PetroCaribe is Chavez's tool to buy political backing from these countries, which see the agreement as too attractive to turn down," opposition lawmaker Freddy Lepage said.
But Chavez has rebuffed suggestions Venezuela is giving away its oil for political motives, saying the Caribbean agreement will support integration and benefit both Venezuela and the region.
Chavez had been expected to take his message to this week's U.N. summit in New York, but on Tuesday, the Venezuelan leader accused U.S. authorities of denying visas for his security team and said that forced him to put the trip on hold.
U.S. officials said they had not denied visas to any members of the Venezuelan delegation.
----
Associated Press writers Kerry-Ann Hamilton in Port-of-Spain, Trinidad; Michael Bascombe in St. George's, Grenada; and Howard Campbell in Kingston, Jamaica, contributed to this report.
AP-ES-09-14-05 0408EDT
Link Here
By Christopher Toothaker Associated Press Writer
Published: Sep 14, 2005
CARACAS, Venezuela (AP) - Venezuelan President Hugo Chavez has extended a preferential oil trade deal to 13 Caribbean countries in what he says is part of a plan to challenge U.S. economic domination of the region.
Under his plan, called PetroCaribe, Venezuela will soon sell up to 190,000 barrels of fuel a day to countries from Jamaica to St. Lucia, offering favorable financing while shipping fuel directly to reduce costs. It is expected to help those countries save millions of dollars (euros).
Chavez, a close ally of Cuban leader Fidel Castro, says the new plan is part of a vision of a "multipolar" world no longer controlled by "U.S. imperialism." He sees it as part of an alternative for international trade based more on regional solidarity than U.S.-style free trade.
The plan includes a US$50 million (euro40 million) fund to pay for social programs across the Caribbean, similar to those Chavez has started at home with rising oil profits.
Chavez has emerged as a leading critic of the U.S. government and its proposal for a Free Trade Area of the Americas, saying that plan would simply help big U.S. companies at the expense of Latin countries by drawing away their natural resources while doing nothing to confront systematic poverty.
Relations between Chavez and Washington have become increasingly strained, though the United States remains the top buyer of Venezuelan oil. Chavez has repeatedly accused the U.S. government of backing plots against him, and recently alleged Washington was preparing an invasion of his country.
U.S. officials strongly deny his claims but have expressed concerns about the health of Venezuelan democracy under Chavez, who was first elected in 1998 pledging a social "revolution" for the country's poor majority.
Still, the PetroCaribe plan is a welcome message for cash-strapped Caribbean nations that traditionally have looked to the U.S. for aid.
"PetroCaribe is good for a country like Jamaica," Jamaican Commerce Minister Phillip Paulwell said Tuesday during a trip to Trinidad. He said his island's deal will help free up vital funds for social projects at a time of high oil prices.
Grenada expects to save up to US$14 million (euro11.4 million) a year through the Venezuelan initiative, Energy Minister Gregory Bowen said Tuesday.
He said at that rate, after a decade the island "will have at its disposal over US$140 million (euro114 million)" to be used for public projects.
Venezuela and the 13 Caribbean countries signed on to PetroCaribe during talks in June. Under more specific deals signed by nine countries last week, the Caribbean nations will be required to pay only a portion up front and can finance the rest over 25 years at low interest rates.
The South American country, the world's fifth-largest oil exporter, plans to allow Caribbean nations to pay some debts with goods such as rice, bananas or sugar. Venezuela also plans to expand its tanker fleet for direct shipping while helping to upgrade Caribbean refineries.
"It's a modest contribution," Chavez said recently. Caribbean oil deals, such as similar ones with Brazil, Argentina and Uruguay, had shown "we can do a lot among ourselves as governments," he added.
Some Venezuelan opposition politicians argue the only reason Chavez is providing Caribbean nations such a bargain is to shore up support for diplomatic clashes with Washington. Caribbean countries make up roughly half of the 34-member Organization of the American States, where debates on the political situation in Venezuela have played out.
"PetroCaribe is Chavez's tool to buy political backing from these countries, which see the agreement as too attractive to turn down," opposition lawmaker Freddy Lepage said.
But Chavez has rebuffed suggestions Venezuela is giving away its oil for political motives, saying the Caribbean agreement will support integration and benefit both Venezuela and the region.
Chavez had been expected to take his message to this week's U.N. summit in New York, but on Tuesday, the Venezuelan leader accused U.S. authorities of denying visas for his security team and said that forced him to put the trip on hold.
U.S. officials said they had not denied visas to any members of the Venezuelan delegation.
----
Associated Press writers Kerry-Ann Hamilton in Port-of-Spain, Trinidad; Michael Bascombe in St. George's, Grenada; and Howard Campbell in Kingston, Jamaica, contributed to this report.
AP-ES-09-14-05 0408EDT
Link Here
posted by Kangaroo Brisbane Australia at 7:19 AM
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