Agreement for the application of ALBA and the Trade Treaty of the People
JOINT COMMUNIQUE
On the occasion of the official visit to Cuba of presidents Hugo Chavéz
Frías and Evo Morales Ayma on April 28 and 29, 2006, there was a
broad-ranging dialogue with the President of the Council of State of
the Republic of Cuba, celebrating the first anniversary of the
agreements launching the implementation of ALBA, the Bolivarian
Alternative for the Peoples of Our America, which is bolstered by the
proposed Peoples’ Trade Agreements (TCP, by its acronym in
Spanish). This dialogue included the analysis of the current
international situation and, particularly, the challenges facing the
peoples of Latin America and the Caribbean in the present political,
economic and social circumstances marked by an increase of the popular
struggles against the failed neo-liberal policy and the search for new
ways and means toward development with social justice in the framework
of genuine fraternal Latin American and Caribbean integration.
The subject of ALBA, the Bolivarian Alternative for the Peoples of Our
America, was discussed by the three leaders as it is the basis of the
exchanges and collaboration between the Bolivarian Republic of
Venezuela and the Republic of Cuba implemented since December 2004 with
excellent results for both nations.
There was discussion of the initiative proposed by President Evo
Morales regarding the TCP (Peoples’ Trade Agreements) which shall be an
instrument for cooperative and complementary exchanges between the
nations whose goal it is to benefit their peoples, in direct contrast
to the Free Trade Agreements which continue to increase the power and
dominance of the trans-nationals.
The needs of the Bolivian people’s development were analyzed as were
the challenges faced by the 3-month old government of President Evo
Morales, after winning an impressive electoral victory allowing, for
the first time, the native communities and the indigenous peoples to
participate in the government of their nation. The three leaders
share the conviction that strong solidarity, mutual cooperation and aid
between their peoples must prevail, free from any interest in business
or market profits. In the particular case of Bolivia, they shall
work on the complicated task of transforming the present reality of
severe shortages of basic social services such as education and
healthcare, while making the best possible use of natural resources
such as gas, oil and others, for the development of its agricultural
potential and the training of skilled human resources, so that the
benefits may improve the lives of the poor, the exploited and the
discriminated.
The leaders agree that only a new and genuine integration based on the
principles of mutual aid, solidarity and respect for self-determination
can provide a suitable response to the level of social justice,
cultural diversity, equity and the right to development which all
peoples deserve and claim for. Such integration is conceived as a
political and economic relationship that is in stark contrast with that
which has been established by FTAA and the free trade treaties.
For all the preceding reasons, the three leaders agreed that Bolivia,
represented by her president, Evo Morales Ayma, should become part of
the process of constructing and implementing the Bolivarian Alternative
for the Peoples of Our America, starting with the development of the
TCP among the three countries and to reiterate the Joint Declaration
signed by the governments of the Bolivarian Republic of Venezuela and
the Republic of Cuba on December 14, 2004, in which the first guiding
principles of ALBA were presented and which are presently joined
by President Evo Morales Ayma and his nation.
TREATY
AGREEMENT FOR THE APPLICATION OF THE BOLIVARIAN ALTERNATIVE FOR THE PEOPLES OF OUR AMERICA AND THE PEOPLES’ TRADE AGREMENTS
Presidents Hugo Chávez Frías, on behalf of the Bolivarian Republic of
Venezuela, Evo Morales Ayma, on behalf of the Republic of Bolivia and
Fidel Castro Ruz, on behalf of the Republic of Cuba, meeting in Havana
on April 28 and 29, 2006, have decided to sign the present Agreement
for the creation of the Bolivarian Alternative for the Peoples of Our
America (ALBA) and the Peoples’ Trade Agreements of our three countries.
General Provisions
Article 1: The governments of the Bolivarian Republic of Venezuela, the
Republic of Bolivia and the Republic of Cuba have decided to take
concrete steps toward implementing the process of integration, based on
the principles contained in the Joint Declaration, signed on the
December 14, 2004, between the Bolivarian Republic of Venezuela and the
Republic of Cuba, which are hereby accepted and embraced by the
Government of Bolivia.
Article 2: The countries shall elaborate a strategic plan in order to
guarantee complementary products that can be mutually beneficial based
on the rational exploitation of the countries’ existing assets, the
preservation of resources, the expansion of employment, market access
and other aspects inspired in the true solidarity fostered by our
peoples.
Article 3: The countries shall exchange comprehensive technology
packages developed in their respective nations by the parties, in areas
of common interest, which shall be provided for their use and
implementation, based on the principles of mutual benefit.
Article 4: The countries shall work together, in coordination with
other Latin American countries, to eradicate illiteracy in these
nations, using efficient, tried and tested methods of mass application,
which have been successfully used in the Bolivarian Republic of
Venezuela.
Article 5: The countries agree to make investments of mutual interest
which could take the form of public, binational, mixed or cooperative
companies, joint management projects or any other form of association
that they decide to establish. Priority shall be given to the
initiatives which strengthen the capacity for social inclusion,
resource industrialization and food security, in a framework of respect
and preservation of the environment.
Article 6: In the case of strategic binational or trinational
companies, the parties shall do everything possible, the nature and
cost of the investment permitting, to ensure that the host country hold
at least 51% of the shares.
Article 7: The countries may agree to the opening of branches of state
banks of one country in the national territory of another.
Article 8: In order to facilitate the payments and charges relating to
the commercial and financial transactions between the countries,
Reciprocal Credit Agreements shall be arranged between the banking
institutions appointed by the governments to this effect.
Article 9: The governments may use commercial compensation mechanisms
of goods and services, if and when this is mutually convenient for the
extension and reinforcement of the commercial exchange.
Article 10: The governments shall promote the development of joint
cultural projects which take into account the particular
characteristics of the different regions and the cultural identity of
the peoples.
Article 11: The governments shall reinforce cooperation in the field of
communication, by taking any action necessary to strengthen their
infrastructure capacities in respect of transmission, distribution,
telecommunications, etc; and in respect of their informative, cultural
and educational contents production capacities. In this regard, the
governments shall continue to support the space devoted to
integrationist communication created by Telesur, by increasing its
distribution in our countries, as well as its contents production
capacities.
Article 12: The governments of Venezuela and Cuba acknowledge the
special needs of Bolivia as a country whose natural resources were
exploited and plundered during the centuries of colonial and
neo-colonial rule.
Article 13: The Parties shall exchange scientific and technical
know-how with the aim of aiding the economic and social development of
the three countries.
Article 14: Taking into account all of the above, the Government of the
Republic of Cuba, the Government of the Bolivarian Republic of
Venezuela and the Government of the Republic of Bolivia, have agreed
upon the following actions:
Actions to be implemented by Cuba as part of its relations with Bolivia
in the framework of the Bolivarian Alternative for the Peoples of Our
America and the Peoples’ Trade Agreements
FIRST: To create a non-profit Cuban-Bolivian entity which will provide
free high quality ophthalmologic surgeries to all Bolivian citizens
lacking the financial resources needed to cover the high cost of this
service, thus preventing tens of thousands of poor Bolivians from
loosing their sight or serious and often crippling limitations to their
sight each year.
SECOND: Cuba shall supply the most advanced technology equipment and
the ophthalmologic specialists required in the initial stage who, with
the support of young Bolivian doctors trained in the Latin American
School of Medical Sciences (ELAM), working as doctors in residence, or
other doctors and residents from Bolivia or other countries, shall
offer attentive care to the Bolivian patients.
THIRD: Cuba shall pay the wages of the Cuban ophthalmologic specialists working in the framework of this action program.
FOURTH: Bolivia shall provide the facilities necessary to render this
service, be they buildings already used to provide healthcare or others
adapted to this purpose. Cuba shall increase the number of
ophthalmologic centres donated from three, the number initially offered
in the Bilateral Agreement signed on December 30 of last year, to six.
FIFTH: The six centres shall be located in La Paz, Cochabamba, Santa
Cruz, Sucre, Potosí and the town of Copacabana in the La Paz region.
Together they shall have the capacity to operate on at least 100
thousand people each year. This capacity may be increased should the
need arise.
SIXTH: Cuba hereby reaffirms its offer to provide Bolivia with 5
thousand scholarships to train doctors and specialists in General
Integral Medicine or other areas of Medical Science: 2 000 in the first
quarter of 2006, who are now receiving basic training here in Cuba; 2
000 in the second semester of this year, and 1 000 in the first quarter
of 2007. Over the subsequent years the established quota shall be
replenished with new students. Included in these new scholarships are
some of the 500 young Bolivians who are already studying Medicine in
Schools of medical Science al over Cuba.
SEVENTH: Cuba shall prolong the stay of the 600 medical specialists who
travelled to Bolivia as a result of the serious natural disaster which
occurred in January of this year, affecting all the regions of the
country, for as long as this sister nation deems necessary.
Furthermore, it will donate 20 field hospitals equipped with surgical
facilities, intensive care units, emergency services for patients
suffering of cardiovascular accidents, laboratories and other medical
resources, to be sent to the areas hardest hit by this disaster.
EIGHTH: Cuba shall continue to provide Bolivia with the experience,
didactic material and technical resources necessary to implement the
literacy program in four languages: Spanish, Aymara, Quechua and
Guaraní, to be made available to all sectors of the population in need.
NINTH: With regards to the education sector, the exchange and
collaboration plan shall be extended to offer help in the methods,
programs and techniques of the educational process of interest to the
Bolivian party.
TENTH: Cuba will share its energy-saving experiences with Bolivia and
shall cooperate with this country on an energy-saving program that
could yield significant convertible currency resources.
ELEVENTH: During the investment recovery period, any state investment,
investments made by Bolivian mixed companies or even those made with
Bolivian private capital in Cuba will be tax-exempt.
TWELVETH: Cuba shall grant Bolivian airlines the same facilities
provided to their Cuban counterparts, with regard to passenger
transportation, freight to and from Cuba and the use of airport
services or any other facilities, as well as the internal
transportation of passengers and freight within Cuba.
THIRTEEN: The exportation of goods and services from Cuba may be paid
for with Bolivian products, in the national currency of Bolivia or in
other currencies mutually agreed upon.
Actions to be implemented by Venezuela as part of its relations with
Bolivia in the framework of the Bolivarian Alternative for the Peoples
of Our America and the Trade Agreements between the Peoples
FIRST: Venezuela shall encourage extensive collaboration in the energy
and mining sector, including: the institutional consolidation of the
Ministry of Hydrocarbon and Energy and of the Ministry of Mining and
Metallurgy of Bolivia, by way of technical and legal assistance; the
increase in the supply of crude oil, refined products, LPG and asphalt,
envisaged in the Energy Cooperation Agreement of Caracas, by the amount
needed to satisfy the internal demand of Bolivia. Compensation
mechanisms shall be established with Bolivian products so as to
completely cancel all debts created by these services. Technical
assistance for the Bolivian Fiscal Oilfields (YPFB) and COMIBOL shall
also be established, as shall the development of projects to adapt and
extend infrastructures as well as petrochemical, iron and steel and
chemical and industrial projects, and any other form of cooperation
agreed upon by the parties.
SECOND: During the investment recovery period, any state investment or
investments made by Bolivian mixed companies in Venezuela shall be
tax-exempt.
THIRD: Venezuela hereby reaffirms its offer to provide Bolivia with 5
000 scholarships in the different areas of interest for the productive
and social development of the Republic of Bolivia.
FOURTH: Venezuela shall create a special fund of up to 100 million
dollars for Bolivia to use to finance productive and associated
infrastructure projects.
FIFTH: Venezuela will donate thirty million dollars to look
after the social and productive necessities of the Bolivian people as
decided by their Government.
SIXTH: Venezuela will donate asphalt and an asphalt mixing plant to contribute to road construction and maintenance.
SEVENTH: Venezuela will notably increase the imports of Bolivian
products, especially those that contribute to the increase of its
strategic foods reserves.
EIGHTH: Venezuela will provide fiscal incentives in her territory to projects of strategic interest to Bolivia.
NINTH: Venezuela will provide preferential facilities to Bolivian
aircraft on Venezuelan territory within the permissible limits of her
legislation.
TENTH: Venezuela will place at Bolivia’s disposition the
infrastructure and equipment for air and sea transportation in a
preferential manner in order to support the economic and social
development plans of the Republic of Bolivia.
ELEVENTH: Venezuela will provide facilities for Bolivian public
or joint companies to establish themselves for the transformation of
raw materials, down river.
TWELFTH: Venezuela will collaborate with Bolivia in research projects on biodiversity.
THIRTEENTH: Venezuela will support Bolivia’s participation in the
promotion of endogenous development nuclei, using the experience of
Mision Vuelvan Caras.
FOURTEENTH: Venezuela will develop agreements with Bolivia in the
field of telecommunications, which may include the use of satellites.
Actions to be developed by Bolivia in its relations with Cuba and Venezuela within the framework of ALBA and TCP
FIRST: Bolivia will contribute the export of her mining,
agricultural, agro-industrial, livestock and industrial products as
required by Cuba or Venezuela.
SECOND: Bolivia will contribute to the energy security of our
nations with its available surplus production of hydrocarbons.
THIRD: Bolivia will not charge utility taxes on any state or
mixed venture investments formed between Bolivia and the Venezuelan and
Cuban States.
FOURTH: Bolivia will contribute its expertise in the study of native peoples, both in theory and in research methodology.
FIFTH: Bolivia will participate together with the governments of
Venezuela and Cuba in the exchange of experiences in the study and
recovery of ancestral knowledge in the field of natural medicine.
SIXTH: The government of Bolivia will actively participate in the
exchange of experiences in the scientific research on natural resources
and genetic agricultural and livestock patterns.
Actions to be jointly developed by Cuba and Venezuela in their relationship with Bolivia within the framework of ALBA and TCP
FIRST: The governments of the Bolivarian Republic of Venezuela
and the Republic of Cuba will immediately proceed to remove tariffs and
other non-tariff barriers that apply to all imports within the tariff
universe of Cuba and Venezuela whenever the apply to products
originating in the Republic of Bolivia.
SECOND: The governments of the Bolivarian Republic of Venezuela
and the Republic of Cuba will guarantee the purchase of amounts of
oil-based products and other agricultural and industrial products
exported by Bolivia, that may not have a market as a result of the
application of a Free Trade Treaty or Treaties initiated by the
government of the United States or by European governments.
THIRD: The governments of Venezuela and Cuba offer financial,
technical and human resource collaboration to Bolivia so that a genuine
national Bolivian State airline may be established.
FOURTH: The governments of Venezuela and Cuba offer Bolivia their
collaboration in the development of sports, including facilities for
the organization and participation in sports competitions, and training
centres in both nations. Cuba offers the use of her facilities
and equipment for the control of anti-doping in the same conditions
that are offered to Cuban athletes.
FIFTH: The governments of Cuba and Venezuela, in coordination
with Bolivia, will promote actions needed to support the just Bolivian
demand for the unconditional cancellation of her foreign debt, since it
constitutes a serious obstacle to Bolivia’s struggle against poverty
and inequality.
New economic and social measures may be added to this present Agreement by the three signing Parties.
Bolivia, Venezuela and Cuba will struggle for the unity and integration of the peoples of Latin America and the Caribbean.
Bolivia, Venezuela and Cuba will struggle for peace and international cooperation.
Evo Morales Ayma
President of the Republic of Bolivia
Hugo Chávez Frías
President of the Bolivarian Republic of Venezuela
Fidel Castro Ruz
President of the Council of State of the Republic of Cuba
