MercoPress. South Atlantic News Agency

Bush promotes trade, Chavez promises cheap oil

United States president George W Bush sent to Congress the Central America & Dominican Republic Free Trade Association, CAFTA, a free trade agreement which faces strong opposition from Democrats and organized labour.

Meantime in Venezuela president Hugo Chavez is launching his regional oil company project, Petrocaribe, for distributing oil at low prices. On sending the treaty which Congress has 90 days to discuss, President Bush urged Democrats and Republicans to leave aside differences and vote for the bill, which is of strategic importance for United States and for governance and stability in the region.

"I'm satisfied the president sent Congress the bill for the implementation of the CAFTA treaty", said US Trade Representative Robert Portman.

"I hope Congress approves as soon as possible". Apparently the Bush administration expects the treaty to be approved before national holiday July 4, or at the most before the Congressional summer recess at the end of July, early August.

Although CAFTA faces one of the fiercest legislative opposition of all free trade agreements United States has signed so far, both the Bush administration as well as diplomats from the countries involved are optimistic about the final result.

The treaty has already been approved by El Salvador, Guatemala and Honduras, but still is waiting in Nicaragua, Costa Rica, Dominican Republic and United States. Reacting to the CAFTA initiative Venezuela's Hugo Chavez regime is holding this week a conference with Central American and Caribbean countries committed to creating PetroCaribe for the distribution of Venezuelan oil and derivates at low prices to the region's energy starved countries.

"This is the true alternative to the perverse proposal of Washington of turning us again into colonies", blasted Monday President Chavez who described the future oil company, Petrocaribe as "part of the Bolivarian Integration project", which will unite the region instead of exacerbating poverty with "free market policies". Venezuelan opposition has accused President Chavez of selling cheap oil to Cuba and other Caribbean countries for political motives. Mr. Chavez argues that the "preferential oil deals" are beneficial for Venezuela, the region and keeps United States' influence at bay.