Tag Archives: Ecuador

Chavez warns Andean nations against free trade pact

Venezuela’s President Hugo Chavez has advised the Andean Nations to reconsider for the proposed free trade pact with Europe as he considered that it can spoil their economies. Venezuela had already turned down American free trade proposal, labeling it as a plot of America to demolish Venezuelan’s economy. Andean group, a trade bloc, which comprised the five South American countries of Bolivia, Colombia, Ecuador, Peru and Venezuela. Chavez has pulled Venezuela out from the Andean group last year after Peru and Colombia signed U.S. free trade deals. Chavez asserted that proposed free trade deal designed to only benefit the Europe and United States. Andean Nations will get nothing out of it. Venezuelan president preached Europe for providing preferential treatment to the Andean Nations, if they are really concerned about these nations economy. Chavez has already pulled his country out from the international institutions like World Bank and IMF, alleging that these institutions are established to benefit the America and European countries only. Chavez government, which has put the country on the socialism path, shut the door for the capitalism completely as government warned the private companies to honor national law; otherwise they will disappear from the country. Private Venezuelan companies can coexist with the Venezuelan socialist process, but those that try to sabotage the government, create shortages in the country and create anxiety will progressively disappear Venezuela is a major oil producer in the world and exports a huge quantity of oil. Chavez nationalizes its oil refineries and forced western investors to leave the Venezuelan land. America and its close allies impose section on it as its step increased the global oil prices. Government also nationalizes its national Bank and other major fund raiser sector, which shoots up basic items prices. Government ordered not to raise the prices of daily need items, but distributors’ marches on the road against governments price controls policy. Image Via: Chinapost