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Application of the Bolivarian Alternative for the Peoples of Our America (ALBA)

Application of the Bolivarian Alternative for the Peoples of Our America (ALBA)

Presidents Hugo Chávez Frías, Evo Morales Ayma and Fidel Castro Ruz, meeting in the City of Havana on April 28 and 29, 2006, decide to sign this Agreement for the construction of the Bolivarian Alternative for the Peoples of Our America ( ALBA) and the Trade Agreements between the Peoples of our three countries.

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 the City of Havana on the 28th and April 29, 2006, decide to sign this Agreement for the construction of the Bolivarian Alternative for the Peoples of Our America (ALBA) and the Trade Agreements between the Peoples of our three countries.

General disposition


Article 1: The governments of the Bolivarian Republics of Venezuela, Bolivia and Cuba have decided to take concrete steps towards the integration process, based on the principles contained in the Joint Declaration signed on December 14, 2004, between the Bolivarian Republic of Venezuela and the Republic of Cuba, which are welcomed and endorsed by the Government of Bolivia.

Article 2: The countries will develop a strategic plan to guarantee the most beneficial productive complementation on the basis of rationality, taking advantage of existing advantages in the countries, saving resources, expanding employment, access to markets or other consideration based on a true solidarity that enhances our peoples.

Article 3: The countries will exchange comprehensive technological packages developed in their countries by the parties, in areas of common interest, which will be facilitated for their use and exploitation, based on principles of mutual benefit.

Article 4: The countries will work together, in coordination with other Latin American countries, to eliminate illiteracy in those countries, using methods of mass application of proven and rapid efficacy, successfully implemented in the Bolivarian Republic of Venezuela.

Article 5: The countries agree to carry out investments of mutual interest that may take the form of public, binational, mixed, cooperative companies, joint management projects and other forms of association that they decide to establish. Initiatives that strengthen capacities for social inclusion, industrialization of resources, food security, within the framework of respect for and preservation of the environment, will be prioritized.

Article 6: In the cases of binational or trinational companies of strategic connotation, the parties will do everything possible, provided that the nature and cost of the investment allow it, so that the host country owns at least 51% of the shares.

Article 7: The countries may agree to open subsidiaries of state-owned banks of one country in the national territory of another country.

Article 8: In order to facilitate payments and collections corresponding to commercial and financial transactions between the countries, the conclusion of Reciprocal Credit Agreements is agreed between the banking institutions designated for this purpose by the governments.

Article 9: Governments may practice commercial compensation mechanisms for goods and services to the extent that this is mutually convenient to expand and deepen commercial exchange.

Article 10: The governments will promote the development of joint cultural plans that take into account the particular characteristics of the different regions and the cultural identity of the peoples.

Article 11: The governments Parties will deepen cooperation on communication issues, taking the necessary actions to strengthen their capacities at the infrastructure levels in transmission, distribution, telecommunication, among others; as well as at the level of informational, cultural and educational content production capacities. In this sense, governments will continue to support the communicational integration space achieved in Telesur, strengthening its distribution in our countries, as well as its content production capabilities.

Article 12: The governments of Venezuela and Cuba recognize the special needs of Bolivia as a result of the exploitation and looting of its natural resources during centuries of colonial and neocolonial rule.

Article 13: The Parties will exchange scientific-technical knowledge in order to contribute to the economic and social development of the three countries.

Article 14: In consideration of 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, decide to carry out the following actions:

Actions to be developed by Cuba in its relations with Bolivia within the framework of ALBA and TCP

FIRST: Create a non-profit Cuban-Bolivian entity that guarantees quality and free ophthalmological operation to all those citizens of Bolivia who lack the necessary financial resources to defray the very high prices of these services, thus avoiding that each year tens of thousands of poor Bolivians lose their sight or suffer serious and often disabling limitations in their visual function.

SECOND: Cuba will provide the highest technology equipment and the ophthalmological specialists required in the initial stage, which, with the support of young Bolivian doctors trained in the Latin American School of Medical Sciences (ELAM) as residents, or other doctors and Bolivian residents or from other countries, will offer careful attention to Bolivian patients.

THIRD: Cuba will pay the salaries of Cuban medical personnel specialized in ophthalmology within the framework of these actions.

FOURTH: Bolivia will guarantee the necessary facilities to provide the service, which may be buildings for medical use, or adapted for these purposes. Cuba will raise to six instead of the three offered in the Bilateral Agreement signed on December 30 of last year, the number of donated ophthalmological centers.

FIFTH: The six centers would be located in La Paz, Cochabamba, Santa Cruz, Sucre, Potosí and the town of Copacabana in the Department of La Paz.
The six will have the capacity to operate together no less than 100,000 people each year. Such capacities can be increased if necessary.

SIXTH: Cuba ratifies to Bolivia the offer of 5,000 scholarships for the training of doctors and specialists in Comprehensive General Medicine or other areas of Medical Sciences: 2,000 in the first quarter of 2006, who are already receiving basic training in Cuba; 2,000 in the second half of this year, and 1,000 in the first quarter of 2007. In subsequent years the established quota will be renewed with new income. Included in these new scholarships are part of the 500 young Bolivians who had already been studying Medicine at Cuban Schools of Medical Sciences.


SEVENTH: Cuba will keep in Bolivia for as long as that sister country deems necessary the 600 medical specialists who traveled to Bolivia due to the serious natural disaster that occurred in January of this year, which affected all Bolivian departments. Similarly, it will donate the 20 field hospitals with surgery services, intensive therapy, emergency care for those affected by cardiovascular accidents, laboratories and other medical resources, sent due to the aforementioned disaster to the most affected areas.

EIGHTH: Cuba will continue to provide Bolivia with the experience, educational material and technical means necessary for the literacy program in four languages: Spanish, Aymara, Quechua and Guaraní, which it can offer to the entire needy population.

NINTH: In the education sector, exchange and collaboration will be extended to assist in methods, programs and techniques of the teaching-educational process that are of interest to the Bolivian side.

TENTH: Cuba will transmit to Bolivia its experiences in energy saving and will cooperate with this country in an energy saving program that will be able to provide it with important resources in convertible currency.

ELEVENTH: All state investment and Bolivian mixed companies and even Bolivian private capital in Cuba are exempted from taxes on profits, during the investment recovery period.

TWELFTH: Cuba grants Bolivian airlines the same facilities that Cuban airlines have regarding the transportation of passengers and cargo to and from Cuba and the use of airport services, facilities or any other type of facility, as well as in the internal transportation of passengers and cargo in Cuban territory.

THIRTEENTH: Exports of goods and services from Cuba may be paid with Bolivian products, in the national currency of Bolivia or in other mutually agreed currencies.

Actions to be developed by Venezuela in its relations with Bolivia within the framework of ALBA and TCP

FIRST: Venezuela will promote broad collaboration in the energy and mining sector that will include: institutional strengthening of the Ministry of Hydrocarbons and Energy and the Ministry of Mining and Metallurgy of Bolivia, through technical-legal assistance; expansion of the supply of crude, refined products, LPG and asphalt, contemplated in the Caracas Energy Cooperation Agreement, up to the volumes required to satisfy the internal demand of Bolivia, establishing compensation mechanisms with Bolivian products for the total cancellation of the invoice for these concepts; technical assistance to Bolivian Fiscal Oil Fields (YPFB) and COMIBOL; development of projects for the adaptation and expansion of infrastructures and petrochemicals, iron and steel, chemical-industrial, as well as other forms of cooperation that the parties agree.

SECOND: All state investment and Bolivian joint ventures in Venezuela are exempted from taxes on profits during the investment recovery period.

THIRD: Venezuela ratifies the offer of 5000 scholarships for studies in different areas of interest for the productive and social development of the Republic of Bolivia.

FOURTH: Venezuela will create a special fund of up to $ 100 million to finance productive projects and associated infrastructures, in favor of Bolivia.

FIFTH: Venezuela will donate thirty million dollars to meet the social and productive needs of the Bolivian people as determined by its Government.

SIXTH: Venezuela will donate asphalt and an asphalt mixing plant to contribute to the maintenance and construction of roads.

SEVENTH: Venezuela will notably increase imports of Bolivian products, especially those that contribute to increasing its strategic food reserves.

EIGHTH: Venezuela will grant tax incentives in its territory to projects of strategic interest to Bolivia.

NINTH: Venezuela will grant preferential facilities to Bolivian-flag aircraft in Venezuelan territory within the limits that its legislation allows.

TENTH: Venezuela makes its air and maritime transport infrastructure and equipment available to Bolivia on a preferential basis to support the economic and social development plans of the Republic of Bolivia.

ELEVENTH: Venezuela will provide facilities for Bolivian public or mixed companies to establish themselves for the downstream transformation of raw materials.

TWELFTH: Venezuela will collaborate with Bolivia in research studies on biodiversity.

THIRTEENTH: Venezuela will support the participation of Bolivia in the promotion of endogenous development nuclei by transmitting the experience of the Vuelvan Caras Mission.

FOURTEENTH: Venezuela will develop agreements with Bolivia in the field of telecommunications, which could 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 with the export of its mining, agricultural, agro-industrial, livestock and industrial products that are required
for Cuba or Venezuela.

SECOND: Bolivia will contribute to the energy security of our countries with its surplus available hydrocarbon production.

THIRD: Bolivia will exempt from tax on profits all state investment and joint ventures that are formed between Bolivia and the States of Venezuela and Cuba.

FOURTH: Bolivia will provide all its experience 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 for the study and recovery of ancestral knowledge of natural medicine.

SIXTH: The government of Bolivia will actively participate in the exchange of experiences for scientific research on natural resources and agricultural and livestock genetic patterns.

Joint actions to be developed by Cuba and Venezuela in their relations with Bolivia within the framework of ALBA and TCP

FIRST: The governments of the Bolivarian Republic of Venezuela and the Republic of Cuba immediately eliminate tariffs or any type of non-tariff barrier applicable to all imports of the tariff universe made by Cuba and Venezuela, which are from the Republic of Bolivia .

SECOND: The governments of the Bolivarian Republic of Venezuela and the Republic of Cuba guarantee Bolivia the purchase of the quantities of products of the oilseed chain and other agricultural and industrial products exported by Bolivia, which could be left without a market as a result of the application of a Free Trade Agreement or Agreements promoted by the United States government or European governments.

THIRD: The governments of Venezuela and Cuba offer their financial, technical and human resource collaboration to Bolivia for the establishment of a genuinely national Bolivian State airline.

FOURTH: The governments of Venezuela and Cuba offer Bolivia their collaboration in the development of sport, including facilities for the organization and participation in sports competitions and training bases in both countries. Cuba offers the use of its facilities and equipment for anti-doping controls under the same conditions as those granted to Cuban athletes.

FIFTH: The Governments of Cuba and Venezuela will promote, in coordination with Bolivia, the actions that are necessary to support the just Bolivian demand for the cancellation, without any conditions, of its external debt, which constitutes a serious obstacle to Bolivia's struggle against poverty and inequality.

New measures of an economic and social nature may be added to this Agreement between the three signing Parties.

Bolivia, Venezuela and Cuba will fight for the union and integration of the peoples of Latin America and the Caribbean.

Bolivia, Venezuela and Cuba will fight 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.


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