Venezuela and Mexico renew 22-year-old oil pact
Venezuela and Mexico renewed a 22-year-old pact to sell 160,000 bpd of oil on eased financial terms to 11 Caribbean and Central American nations. Venezuelan President Hugo Chavez signed the San Jose pact in Caracas. Mexican President Vicente Fox simultaneously signed the agreement in Mexico City.
The agreement was created in August 1980 and is renewed yearly. Under the pact, Mexico and Venezuela each provide
80,000 bpd of oil to Barbados, Belize, Costa Rica, El Salvador, Guatemala, Haiti, Honduras, Jamaica, Panama and the
Venezuela has separate deals to sell oil under preferential financial terms to 14 Latin American and Caribbean countries, including Cuba. Mexico has rejected Venezuela's proposal to include Cuba in the San Jose pact.