Iran has pledged to deepen its commercial and energy ties with Venezuela, Paraguay, Brazil, Ecuador, Nicaragua, Cuba and Bolivia as part of an effort to acquire a higher profile in Latin America.
Welcoming the visiting Bolivian President Evo Morales in Tehran, President Mahmoud Ahmadinejad said on Monday that the two revolutionary nations are natural allies and will boost their relations in the fields of commerce, industry, agriculture, gas, oil and politics.
Aid Package
Morales arrived in Tehran after completing a brief visit to Libya. He is the first indigenous President of Bolivia, which has the largest gas reserves in Latin America. Iran has already pledged a $1.1-billion aid package to Bolivia, which is trying to develop its gas industry.
Iran views Bolivia as part of an anti-American revolutionary bloc in Latin America, which also includes Cuba, Nicaragua, Paraguay and energy-rich Venezuela.
Ahmadinejad has paid four visits to Latin America in the last three years, while Venezuela’s President Hugo Chavez has visited Tehran six times.
Morales said he supported Ahmadinejad’s stance against imperialism and defending the rights of the Iranian people.
“My visit to Iran is in response to last year’s visit of President Ahmadinejad to Bolivia and this means that our political and economic relations will further expand in the future,“ Morales said.
According to IRNA, Iran wants to expand ties with Bolivia in oil, gas and other fields and is expected to sign agreements to boost cooperation.
Morales’ two-day trip to the Islamic Republic was the latest sign of strengthening ties between Iran and South American governments.
Bolivia, which has strong ties with the Venezuelan President Hugo Chavez.
The two countries plan to cooperate in the fields of oil, gas, refinery construction, oil exploration, agricultural equipment and dairy plants.
Despite substantial reserves, Bolivia is struggling to meet commitments to pump natural gas to Argentina and Brazil.
Venezuela and Iran also plan to loan Bolivia $225 million to create a state cement company for the construction of roads and houses.
The deal was made among Bolivian President Evo Morales, Venezuelan ambassador Julio Montes Prado and Iranian business official Hojjatollah Soltani.
The state company to be formed would use the credit to build two plants in the southern Andean cities of Oruru and Potosi that would produce a total 700,000 tons of cement per year.
In addition, Iran plans to launch six dairy factories in Bolivia to promote food security in that country.
Iran will also provide Bolivia with 650 tractors to help boost its agro sector and grant scholarships to Bolivian university students to study in Iran.
Economic Dividends
Economic dividends are attracting an ever-growing Iranian presence in Latin America.
OPEC has been one vehicle for the Iranian/Latin American cooperation. Initiated by Venezuela in 1960, this global organization now has two Latin American member states, after Ecuador rejoined last year.
With both Brazil and Bolivia being now prospective new members of OPEC, Iran expects to do more crude business with several Latin American clients.
Iran’s economic ties with the Latin American countries have developed far beyond oil. Venezuela and Iran are now gingerly engaged in a joint project, putting on-line Veniran, a production plant that assembles 5,000 tractors a year, and plans to start producing two Iranian designed automobiles to provide regional consumers with domestically-made cars.
Iran continues to welcome Brazilian products as well, with the value of Brazil’s exports to Iran reaching over $1.5 billion in 2007. As of January 2008, Quito has also had a functioning Iranian trade office which hopes to strengthen Tehran’s commerce with Ecuador.
In addition, Nicaragua received a $231million loan from Iran in 2007 to build a hydroelectric dam.
In August 2008, the Nicaraguan-Iranian relations were further consolidated when President Ahmadinejad donated $2 million for the construction of a hospital.