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Venezuela Sees Boosting Trade With Cuba
By Fabiola Sanchez, Associated
Press Writer, April 10, 2006.
HAVANA - Friendly ties between Cuba and
Venezuela are now much more than political,
opening the way to a burgeoning trade relationship
estimated to reach more than $3.5 billion
this year - about 50 percent richer than
in 2005, according to Venezuela's ambassador
to Cuba.
The favorable balance converted Cuba last
year into Venezuela's third most important
trade partner, after the United States and
Colombia.
The bulk of trade comes from the 90,000
barrels of crude petroleum that oil-producing
Venezuela sends to the communist-run island
daily, but the South American nation also
has increased non-petroleum exports to Cuba
in recent months, selling products from
construction supplies to chocolate.
"The potential grows every day,"
Adan Chavez, Venezuela's ambassador to Cuba
and President Hugo Chavez's older brother,
told The Associated Press in an interview
here last week.
Chavez said the countries ended 2005 with
$2.5 billion in trade. By increasing Venezuela's
non-petroleum exports to the island, "in
2006 we should finish with a balance of
some $3.5 billion," he said.
The ambassador said Venezuela's oil exports
to Cuba last year were worth about $1.8
billion.
Sold on preferential terms, the Venezuelan
oil has helped Cuba deal with the island's
serious energy problems, giving it the rest
of the petroleum it needs to provide electricity
to this island of 11.2 million people.
Cuba, meanwhile, sold Venezuela about $500
million of goods and services in 2005, Chavez
said.
Venezuela's purchases of Cuban products
will continue growing in areas such as medicines
and medical equipment, supplying a program
providing free medical care in poor Venezuelan
neighborhoods, he said.
Cuba has about 22,000 doctors and other
health workers now in Venezuela as part
of that program, but the costs to Cuba for
sending the doctors - along with other government-to-government
cooperative programs - are not included
in the trade estimates.
Other planned programs include one to build
housing in Venezuela and Cuba, Chavez said.
Cuban officials have estimated more than
$1 billion investment in that program from
both governments.
Though much of the trade has been promoted
by the closely allied governments, private
companies also are involved. The ambassador
said the countries agreed to launch several
mixed enterprises this year - using government
and private funds - to produce musical recordings
and films, and publish books and magazines.
They will also form a construction company,
he said.
"Beyond the economic .. there is the
feeling of cooperation, of solidarity, of
authentic integration," said the ambassador.
He was referring to the two countries' Bolivarian
Alternative for the Americas - their concept
for shared regional trade following socialist
principles in lieu of the Washington-backed
Free Trade Area of the Americas.
Among private Venezuelan companies that
now have a presence in Cuba is Lamigal,
the country's No. 1 manufacturer of galvanized
steel sheeting for construction.
Javier Leon, export analyst for Lamigal,
said Cuba is using the company's construction
materials for the roofing of homes and to
build sheds. In the future, the materials
could be also used as safety guards on the
island's highways, Leon said.
Venezuela's Foreign Commerce Bank approved
an initial line of credit of $24 million
to finance the exports that began last August,
said Leon. He added that the eventual value
of the construction materials exported could
grow to $96.8 million.
The president of the government's Industrial
Bank of Venezuela, Luis Quiaro, said his
country is already exporting a wide variety
of products to Cuba, including workers'
uniforms, boots, construction materials,
and food products such as chocolate, tomato
sauce, canned sardines, gelatin, fruit jams
and juices.
Castro brothers meet top Malaysian diplomat
HAVANA , 6(AFP) - President Fidel Castro
and his brother, Raul Castro, the communist
Cuban regime's number-two official and armed
forces chief, met separately with Malaysia's
visiting foreign minister, the Cuban foreign
ministry said.
The Castro brothers met with Syed Hamid
Albar shortly before he left Cuba late Wednesday,
the ministry said.
During his one-day stay, the Malaysian
top diplomat also met with his Cuban counterpart,
Felipe Perez Roque, "in a cordial and
friendly atmosphere reflecting excellent
bilateral ties," the ministry said
in a statement.
Cuba is due to take over leadership of
the Non-Aligned Movement from Malaysia in
September.
The countries also agreed to create a joint
computer services business, and to boost
ties between their universities.
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