June 23, 2006
Venezuela and Caribbean nations sign oil deal

(AP) - "An oil trading initiative offered by Venezuelan President Hugo Chávez as an alternative to free trade deals backed by the United States has received final approval from Caribbean leaders amid rising world fuel prices. Chávez and the leaders of nine nations signed accords that set out the details of the Venezuelan leader's Petrocaribe initiative, which could help some of the more fragile economies in the region survive the shock of higher fuel prices.

Those signing the accords included the Dominican Republic, which has already proposed a series of national measures aimed at curbing fuel consumption, along with smaller countries such as Antigua, Suriname and St. Kitts and Nevis.

Cuba and Jamaica had previously signed onto the plan.

'We have the opportunity to break from the path of imposed domination and servitude,' Chávez told leaders and representatives of 16 nations gathered at a Jamaican resort.

Under the plan, Caribbean governments would pay market price for Venezuelan oil, but they would only be required to pay a portion of the cost up front and could finance the rest over 25 years at 1 percent interest, Jamaican Prime Minister P.J. Patterson told the gathering.

Governments could also pay for part of the cost with services or goods such as rice, bananas or sugar while oil-rich Venezuela would provide assistance in expanding shipping and refining facilities.

Venezuelan Oil Minister Rafael Ramírez said the Petrocaribe initiative may also be extended to any interested Central American nations.

Patterson, whose government last month became the first to finalize a Petrocaribe agreement with Venezuela, said the accords come 'without any political strings' though critics of Chávez say it will allow the leader to expand his influence in the region.

Small groups of demonstrators blocked roads throughout Jamaica to protest the rising cost of water, electricity and bus fares but the site of the summit was under heavy security and no problems were reported (...)

The Venezuelan president is firmly opposed to the U.S.-proposed Free Trade Area of the Americas, and has instead sought to build support for his own proposal -- the Bolivarian Alternative for the Americas trade pact, or ALBA for its Spanish initials, named after independence hero Simon Bolivar.

High oil prices have had severe effects in Caribbean economies already weakened by the waning of the traditional banana and sugar industries".