Julio Ortega, who for years represented the Dominican Republic in negotiations regarding the San Jose Agreement with Mexico, suggests that the Dominican government no longer purchase fuel from Mexico. In a write up in the Listin Diario, Ortega says that it is unlikely the DR will ever be able to take advantage of the soft interest loans from Mexico established in the agreement. He says Mexico demands commercial banking conditions, unlike Venezuela which has less requirements to make the loans.Ortega suggests that the DR purchase the 20,000-25,000 barrels of fuel it now buys from Mexico from Venezuela, Trinidad & Tobago, Colombia or even Gulf countries that offer better conditions. He says Venezuela has financed 20 projects for more than US$300 million under the San Jose Agreement. The San Jose Pact is a regional oil supply agreement for the purchase of oil at market prices from Mexico and Venezuela. The two countries agreed to provide soft loans for development projects for 20-25% of the purchase price of the oil. Only Venezuela has honored this part of the deal.
