Chavez Frias: the FTAA is dead and a new model is taking its place

As a result of Venezuelan President Hugo Chavez Frias’ visit to Uruguay to attend the inauguration of the new President Tabare Vasquez, Uruguay has been included into the Petrosur joint venture project.

The decision was reached during a meeting of Presidents of Argentina , Brazil and Venezuela in Montevideo .

Venezuela will supply Uruguay with 43,600 barrels of oil per day, of which 75% will be paid for within 20 days and part could be paid by goods and services.

  • The remaining 25% has a 2 years grace and a timetable of 15 years.

Venezuelan Energy & Petroleum Minister, Rafael Ramirez says Uruguayan President Vasquez has offered to repay with housing plans, as well as meat and milk products.

The Argentinean Foreign Minister, speaking on behalf of President Kirchner, has announced that Venezuela has decided to buy up to $500,000 of Argentina ‘s sovereign debt as an aid measure.

Chavez Frias says both Brazil and Venezuela could become buyers of Argentinean debt bonds.

When asked whether he thought the USA would be annoyed with such close relations between South American countries, Chavez Frias replies that it shouldn’t be and even if it was, the trilateral relationship will continue.

The Venezuelan President has declared the USA-sponsored Free Trade Agreement for the Americas (FTAA) as dead, saying a new model is being put in place instead.

The Venezuelan President insists that South American countries set up something similar to NATO, commenting that if there had been such an organization (South Atlantic Treaty Organization) during the Falklands War, the British fleet would not have been allowed to sail through the Caribbean to the Falkland Islands (Malvinas) in the 80s.

Uruguayan Foreign Minister, Reinaldo Gargano says his country, which has renewed relations with Cuba, will study a Cuban request to join Mercosur.

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