Cuba and Venezuela Begin Building Alternative to FTAA

During a visit by Venezuelan President Hugo Chavez to Venezuela at the end of April, the two countries further developed an alternative agreement to the Free Trade Agreement of the Americas (FTAA), originally proposed under the Clinton administration in 1994.

The FTAA is a blueprint for an American hemisphere as one massive trading bloc, with the exception of Cuba, led and dominated by the U.S. The U.S. also planned to use the FTAA to further harm Cuba, with some reactionary Cuban Americans openly gloating that under the deal, the crippling American blockade could be extended to every country in the region.

Initially, despite the resistance of leaders from some of the smaller nations, particularly in the Caribbean, and the opposition of the majority of the peoples of the Americas, it appeared the U.S. would succeed in brokering a deal. This does not seem to be possible any longer, as Brazil and Venezuela have openly refused to sign the agreement without significant concessions from the U.S. regarding its demands for market access. Their initiative has led to other countries in the region, including Argentina, Uruguay and the Caribbean states renewing their own objections to the FTAA.

The Americans’ response to this opposition has been to renew attempts to reach bilateral or multilateral trade agreements with as many countries in the region as possible, trying to suggest that any nation not involved in such an agreement will be devastated economically.

In response to some of the Americans’ more blatant threats in this regard, Cuba and Venezuela proposed a different kind of agreement for the region – one based on principles of respect for sovereignty and mutual economic benefit. Entitled the Agreement for a Bolivarian Alternative for the Americas (ALBA), it would include reciprocal social, cultural and economic investments. In their recent meetings, Cuba and Venezuela developed a strategic plan for implementing ALBA. This plan includes:

· The inauguration in Venezuela before the end of the year of 600 Integral Diagnostic Centers; 600 Rehabilitation and Physiotherapy Departments and 35 High Technology Centers, using Cuban healthcare expertise to offer services free of charge to the Venezuelan population.

· The training by Cuba of 40,000 doctors and 5,000 health technology specialists in Venezuela.

· The training in Cuba of 10,000 Venezuelan high school graduates in the areas of medicine and nursing, who will be deployed throughout the country’s polyclinics and hospitals and will stay in the homes of Cuban families.

· The provision in Cuba of surgical eye treatment for 100,000 Venezuelans with a variety of eye conditions.

· Continued material and human support by Cuba for Venezuela’s literacy program, which aims to have Venezuela declared the second illiteracy-free territory in the Americas.

· The opening of an office in Havana of the Venezuelan national gas company, PDVSA, to provide assistance with the exploration and exploitation of oil in Cuba, including refining, transportation and storage of Cuban oil.

· The granting by Venezuela of preferential tariffs on 104 different Cuban export products, including manufactured goods, foods and medicines.

· Exemption by Cuba on payment of taxes or tonnage rights for Venezuelan vessels arriving in Cuban ports from abroad.

· Preferential tariffs on $412 million worth of Venezuelan manufactured goods and materials exported to Cuba in 2005-06, including iron, steel and agricultural products.

· The creation of a joint strategic alliance with the goal of developing a number of economic initiatives such as nickel and cobalt mining projects, the repair and construction of sea vessels, and improving the railway infrastructure of both countries.

The two countries also agreed to the establishment of a number of joint research projects aimed at everything from improving agricultural practices to environmental technology to telecommunications.

In all, including government agreements, letters of intent, memorandums of understanding, contracts and framework agreements, 40 documents were signed.

In a joint declaration, the two countries state: "Only a broad Latin American vision, which acknowledges the impossibility of our countries’ developing and being truly independent in an isolated manner, will be capable of achieving what … (Cuban independence hero Jose) Marti conceived of as ‘Our America’ to differentiate it from the other America, the expansionist one with imperialist appetites.”

Back to Modern Communism