Well, today's front page headline is that Evo annouced a Free Trade Agreement with Venezuela and Cuba. This FTA is called TCP. So, Bolivia will have a trade agreement with Venezuela and Cuba, and will be able to sell its products without paying tariffs. Well, any trade agreement is good, but my question is: How is this an alternative to the American market? Most important: Why are both agreements mutually exclusive? Answers below, please.
In terms of figures, Cuba has a population of 11m and Venezuela has a population of 25m. Their PPP per capita incomes are $3300 and $6500, repspectively. So, this is a market that caters for 37m people, with a PPP per capita income of $5521 (weighted average). On the other hand, the American population is close to 300m (is 298m, to be precise) and the PPP per capita income is $42000. From this, it follows that Evo is substituting a huge market, with lots of cash to spend, for a tiny and poor market, where the only person spending (oil) money will be Chavez, to keep Evo screaming about how he defends Bolivian interests with sovereignity and Bolivian soy producers happy. So, if you really had to choose, which one would it be?
Source for the figures: CIA World Factbook.
Bolivia, Bolivien, Evo, Evo Morales, Venezuela, Chavez, Hugo Chavez