ALBA-TCP Agreement 

The Presidents Hugo Chávez Frías, on behalf of the Bolivarian Republic of Venezuela, Evo Morales Ayma, on behalf of Bolivia and Fidel Castro Ruz, on behalf of the Republic of Cuba, gathered in the City of Havana on the 28th and 29th of April, 2006, decide to sign the present 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 Provisions:

Article 1: The Governments of the Bolivarian Republic of Venezuela, of Bolivia and of Cuba, have decided to take concrete steps towards the process of integration, based on the principles inscribed in the Joint Declaration, signed on December 14th, 2004, between the Bolivarian Republic of Venezuela, Republic of Cuba and to which the Government of Bolivia adheres and welcomes.

Article 2: The countries will implement a strategic plan to guarantee the most beneficial and productive complementarities on the basis of rationality, use of existing advantages in the countries, resources saving , extension of employment, access to markets or another consideration underpinned by a real solidarity, which promotes our peoples.

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

Article 4: The countries will work together, in coordination with other Latin-American countries, to eliminate illiteracy in these countries, using massively evidence-based and efficient methods, which have been put successfully into practice in the Bolivarian Republic of Venezuela.

Article 5: The countries agree to execute investments of mutual interest, which can adopt the form of public, binational, mixed, cooperative companies, joint management projects and other forms of association which they decide to establish. Priority shall be accorded to the initiatives that strengthen the capacities of social inclusion, the industrialization of the resources, food safety, within the framework for respect and environmental conservation.

Article 6: In cases of binational or three-nation companies with strategic connotation, the parties will do their best, as long as the nature and cost of the investment allow it, for the host country to hold at least 51% shares.

Article 7: The countries will be able to agree upon the opening of state-owned bank subsidiary of a country on the national territory of the other country.

Article 8: to facilitate the payments and collections relative to commercial and financial transactions between the countries, the conclusion of swap arrangements between the banking institutions designated for the purpose by the Governments.

Article 9: The Governments will be able to practice mechanisms of commercial compensation of goods and services to the extent that this proves to be mutually suitable in order to extend and deepen the commercial exchange.

Article 10: The Governments will promote the development of joint cultural plans which keep into account the particular characteristics of the different regions and the cultural identity of the peoples.

Article 11: The Governments Party will deepen the cooperation regarding communication, taking the necessary actions to strengthen its capacities at levels of infrastructure, in terms of transmission, distribution, telecommunication, among others; as well as at level of capacities of production of information, cultural and educational contents. Accordingly, the Governments will continue supporting the communicational space of integration secured through Telesur, strengthening its distribution in our countries, as well as its capacities of content production.

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

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

Article 14: In the light 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 execute the following actions:

Actions to develop by Cuba in its relations with Bolivia in the framework of ALBA and the TCP (People’s Trade Agreement))

FIRST: To create a Cuban - Bolivian non-profit entity which guarantees free quality ophthalmological operation to all those citizens of Bolivia who lack the necessary economic means to cover the highest prices of these services, with a view to preventing tens of thousands of poor Bolivians from losing the sight every year or suffering serious limitations, which are often disabling as to the visual function.

SECOND: Cuba will provide the highest technology equipment and the ophthalmological specialists needed in the initial stage, and those, 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 coming from other countries, will offer diligent care to the bolivian patients.

THIRD: Cuba will cover Cuban medical staff salaries in the framework of the present actions.

FOURTH: Bolivia will guarantee the necessary facilities to offer the service, and the latter could be buildings intended for medical purposes or adapted for these aims. From the three donated ophthalmology centers offered within the Bilateral Agreement signed on 30 December last year, Cuba will raise that previous number to six.

FIFTH: Six centers would be located in La Paz, Cochabamba, Santa Cruz, Sucre, Potosi and Copacabana town of La Paz Department. Those six ophthalmology centers will be able to operate on no less than 100 thousand persons every year. Such capacities will be able to expand if required. 

SIXTH: Cuba ratifies Bolivia's offer of 5 thousand scholarships for the training of doctors and specialists in Integral Family Medicine or other areas of the Medical Sciences: 2.000 in the first quarter of 2006, are already undergoing basic training in Cuba; 2.000 in the second semester of the present year, and 1.000 in the first semester of 2007. In the subsequent years, the established quota will be renewed with new entrants. They are included among these new scholarship holders; some 500 young Bolivians who have already been studying medicine at Faculties of Cuban Medical Sciences.

SEVENTH: Cuba will maintain in Bolivia for as long as that brotherly country considers it necessary, 600 medical specialists who travelled to Bolivia on the occasion of the serious natural disaster which occurred in January of this year and affected all the Bolivian departments. Likewise, it will donate 20 field hospitals with surgery, intensive therapy, and emergency care to the victims of cardiovascular accidents, laboratories and other medical resources sent on the occasion of the mentioned disaster for the most affected areas.

EIGHTH: Cuba will continue contributing to Bolivia through its experience, didactic material and the necessary technical means for the literacy program in four languages: Spanish, Aymara, Quechua and Guarani, which could be offered to the entire needy population.

NINTH: In the education sector, the exchange and collaboration will extend to the assistance of methods, programs and techniques of the teachers’ and educational process that are of interest for the Bolivian party.

TENTH: Cuba will convey its experiences to Bolivia regarding energy saving and will cooperate with this country in an energy saving program, which will be able to bring about important resources in convertible currencies.

UNDÉCIMO: Every state investment and Bolivian mixed companies, including the private Bolivian capital in Cuba are exempted from taxes on profit, during the period of recovery of the investment.

TWELFTH: Cuba grants the Bolivian airlines the same facilities which the Cuban airlines have as to the passenger transport and cargo to and from Cuba and the use of airport services, or any other kind of facilitation, as well as the domestic passenger transport and cargo on the cuban territory.

THIRTEENTH: The exports of goods and services coming from Cuba will be able to be paid for by means of bolivian products, in the national currency of Bolivia or in other mutually accepted coins

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

FIRST: Venezuela will promote a wide collaboration in the mining and energy sector, which will include: institutional strengthening of the Ministry of Hydrocarbons and Energy and of the Ministry of Mines and Metallurgy of Bolivia, through legal-technical assistance; extension of the supply of the crude oil, refined products, LPG and asphalt, covered by the Energy Cooperation Agreement of Caracas, up to the volumes needed to satisfy the domestic demand of Bolivia, establishing compensation mechanisms with Bolivian products for the total invoice cancellation   for these items ; technical assistance to Bolivian Fiscal Oilfields “(YPFB)” and “COMIBOL”; development project of adequacy and extension of infrastructures and petrochemicals, steel products, industrial chemicals, as well as other forms of cooperation that the parties agree upon.

SECOND: All state investment and Bolivian mixed companies in Venezuela are exempted from paying taxes on profits during the period of recovery of the investment.

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 dollars for the financing and productive infrastructure projects.

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

SIXTH: Venezuela will donate asphalt and an asphalt mixing plant that contributes to the maintenance and construction of pathways.

SEVENTH: Venezuela will increase significantly the imports of bolivian products; especially those which help raise its strategic food reserves.

EIGHTH: Venezuela will grant fiscal incentives to projects of strategic interest for Bolivia on its territory.

NINTH: Venezuela will grant preferential facilities to aircraft flying a Bolivian flag on the Venezuelan territory within the limits allowed by its legislation.

TENTH: Venezuela puts its infrastructure and airlift and maritime transport assets in a preferential manner at the disposal of Bolivia in order to support the economic and social development plans of the Republic of Bolivia.

ELEVENTH: Venezuela will grant facilities so that Bolivian public or mixed companies can be set up for the downstream transformation of raw materials.

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

THIRTHEENTH: Venezuela will support the participation of Bolivia in the promotion of endogenous development hubs by sharing the experience of the Mission Vuelvan Caras (Change Faces).

FOURTEENTH: Venezuela will develop agreements with Bolivia in the sphere of telecommunications, which might include the use of satellites.

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

FIRST: Bolivia will contribute with the export of its mining, agricultural, agroindustrial, livestock and industrial products which are needed by Cuba or Venezuela.

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

THIRD: Bolivia will exempt all state investment of mixed companies that are set up between Bolivia and the States of Venezuela and Cuba, from taxes on profits.

FOURTH: Bolivia will provide all its experience in the study of the indigenous peoples both in theory and in the investigative methodology.

FIFTH: Bolivia will take part with the Governments of Venezuela and Cuba in the exchange of experiences for the study and recovery of ancestral knowledge in natural medicine.

SIXTH: The Government of Bolivia will take part actively in the exchange of experiences for scientific research on natural resources, agricultural genetic patterns, and farmers

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

FIRST: The Governments of the Bolivarian Republic of Venezuela and the Republic of Cuba eliminate in an immediate manner the duties or any type of non-tariff barrier applicable to all the imports from all customs areas, made by Cuba and Venezuela, and which come from the Republic of Bolivia.

SECOND: The Governments of the Bolivarian Republic of Venezuela and the Republic of Cuba guarantee Bolivia that they will purchase the quantities of products of the oilseed chain and of other agricultural and industrial products exported by Bolivia, which may be left with no market, as a result of the application of a Treaty or Free-Trade Treaties, promoted by the government of The United States or of the European Governments.

THIRD: The Governments of Venezuela and Cuba offer Bolivia their financial, technical collaboration and human resources for the establishment of a bolivian state airline, which is genuinely national.

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

FIFTH: The Governments of Cuba and Venezuela will promote, in coordination with Bolivia, the actions that prove to be necessary to support the Bolivian just demand for the cancelation, without conditionalities, of its foreign debt, which constitutes a serious obstacle to the fight of Bolivia against poverty and inequality.

New measures of economic and social character will be added to the present Agreement between the three signatory 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

Havana, 29th of April, 2006