VZCZCXRO3906
PP RUEHQU
DE RUEHPU #1618 2421734
ZNR UUUUU ZZH
P 301734Z AUG 06
FM AMEMBASSY PORT AU PRINCE
TO RUEHC/SECSTATE WASHDC PRIORITY 3926
INFO RUEHZH/HAITI COLLECTIVE PRIORITY
RUEHBR/AMEMBASSY BRASILIA PRIORITY 1204
RUEHSA/AMEMBASSY PRETORIA PRIORITY 1046
RUEHQU/AMCONSUL QUEBEC PRIORITY 0567
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

UNCLAS PORT AU PRINCE 001618 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR WHA/CAR 
WHA/EPSC FOR FAITH CORNEILLE, ED MARTINEZ 
EB/IFD 
STATE PASS TO USAID FOR LAC/CAR 
TREASURY FOR JEFFERY LEVINE 
COMMERCE FOR SCOTT SMITH 
 
E.O. 12958: N/A 
TAGS: ENRG EPET ECON EAID HA
SUBJECT: PARLIAMENT RATIFIED PETROCARIBE AGREEMENT 08/29 
 
REF: A. PAP 856 
     ¶B. PAP 1377 
     ¶C. PAP 1598 
 
¶1.  Parliament ratified the PetroCaribe agreement during a 
session of the national assembly, which included 19 of 27 
senators and 47 of 88 deputies.  53 voted in favor and 13 
abstained; no parliamentarians voted against ratification. 
The agreement, signed by President Rene Preval and Venezuelan 
Vice President Jose Vincente Rangel on Preval's inauguration 
day (ref A), was read out loud followed by commentary on the 
document.  Several parliamentarians spoke in favor of 
ratification citing resultant increases in government 
revenues.  (The GOH plans to resell gasoline provided under 
the agreement to local suppliers at market prices and keep 
the difference.)  Notably, all appeared to understand that 
PetroCaribe would not lower the price of petroleum in Haiti, 
currently at around US $5 per gallon at the pump.  The local 
news today reports the passage of the PetroCaribe agreement, 
stating only the facts of the vote, with little commentary or 
media fanfare. 
 
¶2.  Comment: Despite this obvious step forward for 
PetroCaribe agreement, Haiti still has many kinks to work out 
before the program is fully implemented.  As the Ambassador 
has stressed to Haitian officials, transportation and 
insurance costs, as well as storage and distribution of the 
petroleum are only several of many obstacles.  The GOH 
finally sold, in mid-August, the first and only petroleum 
shipment, which arrived May 13 (ref B), and there is no news 
of a second shipment yet.  Because Haiti has a relatively low 
petroleum demand -- around 11,000 barrels per day -- and 
PetroCaribe has offered to supply up to 6000 barrels per day, 
the agreement could have a considerable effect on the 
petroleum industry in Haiti.  Post will continue to send 
updates as appropriate. 
TIGHE 

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