Cuba-Venezuela relations

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Cuban-Venezuelan relations
Flag of Cuba Flag of Venezuela
     Cuba      Venezuela

Relations between Cuba and Venezuela have significantly improved during the Presidency of Hugo Chávez. Chávez has formed a major alliance with Cuban president Fidel Castro and significant trade relationship with Cuba since his election in 1999. After decades of inequalities and American domination in Latin America, several governments in the region have started to reject United States' path of capitalism.[1] Hugo Chavez have described Castro as his mentor.[2]

Contents

[edit] Background

The bilateral relation includes development aid, joint business ventures, large financial transactions, exchange of energy resources and information technology, and cooperation in the fields of intelligence service and military. A characteristic of Cuba-Venezuela ties is that both nations are exchanging assets among each other which are inexpensive for the sending country but of high significance for the receiving country.[3]

In October 2000, Chávez and Castro signed the Convenio Integral de Cooperación under which Venezuela will send 53,000 barrel per day (bpd) of oil to Cuba and will receive technical support and in the fields of education, health care, sports, and science and technology.[4]

In April 2005, the two countries signed an agreement to increase the number of healthcare workers in Venezuela to 30,000 and initiated health programs which included establishment of 1,000 free medical centers, training of 50,000 medical personnel, and surgical treatment for approximately 100,000 Venezuelans in Cuba. Cuba also offered to train an additional 40,000 Venezuelan physicians. Meanwhile the oil shipment to Cuba is increased to 90,000 barrels per day (bpd).[4]

Venezuela is sending nearly 90,000 barrel per day (bpd) of oil to Cuba which represents less than 3.5% of the nation's total oil production. But for Cuba, 90,000 bpd is of high value. Much of this oil obtained from Venezuela is subsidized. As of 2005, Venezuela is providing Cuba nearly 20,000 to 26,000 bpd of oil free of cost, for a total "gift" of $6-8 billion until 2020. Cuba is reportedly re-exporting 40,000 to 50,000 bpd of oil because Cuba produces 80,000 bpd oil domestically and total oil consumption in Cuba 120,000 bpd. On the other hand, Cuba is sending approximately 30,000 to 50,000 technical staffs to Venezuela which includes physicians, sport coaches, teachers, and arts instructors who are offering social services often in many poverty stricken regions. Under the programme Convenio de Atención a Pacientes implemented in 2000, Venezuela send patients and their relatives for medical treatment in Cuba where the Government of Venezuelan pays the transportation costs, and Cuba bears all other expenses.[3]

[edit] Oil

In 2006, the two countries established a joint venture to revamp the Cienfuegos oil refinery in Cuba. Venezuela and Cuba were set to invest approximately $800m to $1bn in primary stage into the programme. According to this scheme, 51% share of the plant will be held by Cuba and 49% by Petróleos de Venezuela S.A. (PDVSA), the Venezuelan state-owned petroleum company.[5]

[edit] Economic ties

On January 25, 2007, Chavez and Cuba's Vice President Carlos Lage signed an agreement to develop a range of production projects which involved nickel, electricity and rice. This deal also included construction of an underwater fiber optics cable to bypass a US embargo which was aimed to be built within 2009.[6]

[edit] Military

Close ties with Cuba is helping Caracas in its goal to transform the Military of Venezuela began in 2004. As part of removing US influence from the country, the Army of Venezuela is trying to replace NATO-compliant Belgian rifles with AK-103. The Military of Cuba, which has an experience of over 40 years to handle Soviet and Russian military equipment, and in training combatants from guerrilla warfare and in counterinsurgency operations, is well able to help Chávez with this military transformation.[3]

[edit] Research

The Venezuelan Institute for Scientific Research and Cuban scientists collaborated in a research project for analyzing "stress" in rice production caused by drought or saline soils. Research findings on this were presented in the 4th International Encounter on Rice held in Havana in 2008. One of the several objectives of this joint scientific project is to understand the effectiveness of the hormones.[7]

[edit] ALBA

On December 15, 2004, an agreement called the Bolivarian Alternative for the Americas (ALBA) was signed to eliminate tariffs and import duties and promote investment as well as technical and educational cooperation between several countries of America such as Argentina, Bolivia, Ecuador and Brasil. Venezuela and Cuba have been close trading partners since a cooperative agreement was signed between them on October 30, 2000. On April 29, Cuba, Venezuela and Bolivia signed a People Trade Agreement, which was a step towards the ALBA.[1]

[edit] 2008 Dávila-Maduro meeting

In May 2008, Venezuelan Foreign Minister Nicolás Maduro Moros, leading a delegation in Cuba to attend the 12th meeting of the Cuba-Venezuela Political Consultation Body,[8][9] met Vice President of Cuba Carlos Lage Dávila at the Ministers' Council headquarters to discuss the situation in Latin America and other bilateral issues. At the opening of the meeting, Maduro said Cuban Revolution "showed us the path of the second, real political, economic, social and cultural independence 50 years ago". Describing the relations between the two countries, he said "our relation is a profound, longstanding, strategic fraternity by which we have become a single people, a single nation, as dreamed by the liberating fathers".[8] Maduro held talks with Raul Castro also and discussed issues related to bilateral relations.[10][11]

[edit] References

  1. ^ a b Sujata Fernandes (2006-05-20). Trade Treaties and US Hegemony in the Americas (HTML). Economic and Political Weekly. Retrieved on 2008-06-08.
  2. ^ The world according to Hugo Chavez (HTML). DNA (2006-07-22). Retrieved on 2008-06-08.
  3. ^ a b c Javier Corrales, Amherst College. The Logic of Extremism: How Chávez Gains by Giving Cuba So Much (PDF). Center for Latin American and Caribbean Studies, University of Connecticut. Retrieved on 2008-06-08.
  4. ^ a b Dan Erikson, Inter-American Dialogue. Castro’s Chávez Strategy (PDF). Center for Latin American and Caribbean Studies, University of Connecticut. Retrieved on 2008-06-08.
  5. ^ Venezuela and Cuba agree oil link (HTML). BBC News (2006-04-11). Retrieved on 2008-06-08.
  6. ^ Cuba, Venezuela extend ties despite Castro's illness (HTML). DNA (2007-01-25). Retrieved on 2008-06-08.
  7. ^ Cuba and Venezuela Boost Rice Research Project (HTML). Ahora (2008-06-05). Retrieved on 2008-06-08.
  8. ^ a b Cuban Vice President Meets Venezuelan FM (HTML). Ahora (2008-05-29). Retrieved on 2008-06-08.
  9. ^ Venezuelan foreign minister arriving in Cuba today (HTML). Granma (2008-05-27). Retrieved on 2008-06-09.
  10. ^ Raul Castro Meets Venezuelan Foreign Minister (HTML). Ahora (2008-05-30). Retrieved on 2008-06-08.
  11. ^ Raúl meets with Venezuelan foreign minister (HTML). Granma (2008-05-30). Retrieved on 2008-06-09.

[edit] External links

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