Chavez Announces Creation of Common Economic Area

A common economic zone for the member countries of the Bolivarian Alliance for the Peoples of Our Americas (ALBA), was approved by the presidents attending the XI Summit of that block.

With the Treaty (Eco-ALBA) agreed by Venezuela, Cuba, Bolivia, Ecuador, Nicaragua, Antigua and Barbuda, Dominica, and St. Vincent and the Grenadines trade for the development of the integration mechanism will be promoted.

The common economic space will have a bank, to which they agreed to earmark one percent of the international reserves of each member nation of ALBA.

With that multilateral fund, the use of a single currency by the System of Regional Compensation (Sucre) will be possible, agreed the dignataries who passed the new structure.

According to Telesur, the unanimous approval of the common economic area was announced by Venezuelan President Hugo Chavez, who noted the need for progress in financing and production within ALBA.

Cuban President Raul Castro said that ALBA’s success will lie in the economic aspect as the conditions are optimal to stimulate the integration of the region.

This is a union of independent nations and a strategy of fair and equitable development for our people and not for foreign capital, said the Cuban head of State. (Taken from PL).