Bush signs free trade agreement with six Latin American countries

WASHINGTON (AP) - President Bush signed a free trade agreement with six Latin American countries on, celebrating a victory in Congress so narrow and gruelling that it cast doubt on the future of other trade-opening pacts the administration is negotiating.

Bush's signature on the Central American Free Trade Agreement capped a bruising political battle.

The relatively modest agreement, which Bush first approved over a year ago, passed the House last week by just a two-vote margin, obtained only after the president and House Republican leaders cajoled and made side promises to wavering lawmakers.

The agreement - with Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic - eliminates tariffs and opens up the region to US goods and services. It also lowers obstacles to investment in the area and strengthens protections for intellectual property.

St Kitts asks Venezuela to build refinery

BASSETERRE, (AP) - The government has asked Venezuela to study the possibility of building an oil refinery in St Kitts as part of a deal to supply petroleum to Caribbean countries under favourable financial conditions.

Public Works Minister Earl Asim Martin made the request during a meeting last week with several Venezuelan oil officials, the St Kitts government said.

The Venezuelan delegation had been touring several Caribbean countries to follow up on the Petrocaribe agreement signed in June. The deal, which is meant to help small Caribbean economies cope with high fuel prices, offers generous financing for oil sales and favourable rates in exchange for good, services or credit.

Martin and the Venezuelan officials signed a letter of intent to create a joint venture, PDV Caribe St Kitts, to administer activities under the Petrocaribe initiative.

Martin also proposed building a storage facility for 7,000 barrels of diesel fuel for a power plant on the island.

DOMINICAN REPUBLIC: Dominican Republic wants to join Caribbean bloc to better negotiate trade with Europe

SANTO DOMINGO, (AP) - The Dominican Republic wants to join the 15-member Caribbean Community to increase agricultural exports and help it negotiate a free-trade agreement with the European Union, the Foreign Ministry said.

By joining the trade bloc known as Caricom, the Dominican Republic hopes to increase sales of sugar, bananas, coffee and other products, said Foreign Ministry spokeswoman Veri Candelario.

The Dominican Republic and more than a dozen Caribbean nations are negotiating a free-trade pact with Europe that would take effect in 2008.

Candelario said Dominican Foreign Minister Carlos Morales Troncoso expressed interest in joining Caricom during a meeting with foreign leaders earlier this month in Santo Domingo.

Troncoso believes Caribbean nations will be able to negotiate a better deal with Europe if they are a unified group, Candelario said.

PUERTO RICO's Governor says he will veto budget

CIALES, (AP) - Gov Anibal Acevedo Vila announced he would veto the budget passed by Puerto Rico's legislature, saying it would not cover the costs of his government.

The Legislative Assembly approved a US$9.2 billion (euro7.6 billion) budget in June, slashing US$473 million (euro392 million) from the budget that the governor had submitted.

The governor's decision means Puerto Rico will revert to last year's budget, which is smaller than the one approved by the legislature. The government, however, would have more flexibility to transfer funds between institutions and programmes.

The legislature, controlled by the pro-statehood New Progressive Party, refused to approve new taxes on several products, arguing they would hurt middle and lower-class families.

Acevedo Vila, whose Popular Democratic Party supports keeping Puerto Rico's status as a US commonwealth, argued the budget left education, health and the police severely underfunded.

Caribbean Sun Airlines begins service between St Maarten and St Thomas

PHILIPSBURG, (AP) - Caribbean Sun Airlines began twice-daily flights between St Maarten and St Thomas in the US Virgin Islands on Monday in a move officials here praised as a boost to tourism.

The new service is part of the Puerto Rico-based airline's expansion in the region, Caribbean Star President Yolanda Suarez said at a ceremony welcoming the inaugural flight at St Maarten's Princess Juliana International Airport.

The morning and afternoon flights depart from San Juan, Puerto Rico, stopping in St Thomas before heading to St Maarten, a Dutch Caribbean territory known as a "shopping Mecca" in the region for its duty-free status.

St Maarten Tourism Commissioner Theo Heyliger said the flights should boost the territory's tourist expenditure.

Caribbean Sun offers daily flights between Puerto Rico and Antigua, St Kitts, St Maarten, and the US and British Virgin Islands.

Caribbean Sun Airlines, Inc is a subsidiary of the Houston, Texas- based Stanford Financial Group, which also owns Caribbean Star Airlines.

Popular Inc to acquire online consumer lending company E-Loan Inc

SAN JUAN, Puerto Rico (AP) - Popular Inc announced it will acquire E-Loan Inc, an online consumer lender, as the Puerto Rican financial services leader seeks to extend its reach in the US market.

The deal, valued at roughly US$300 million (euro243 million) in cash, will complement Popular's non-prime and warehouse lending businesses and "enhance its technology platform," the companies said in a statement.

E-Loan provides mortgage, auto and home equity loans through its Web site www.eloan.com and by telephone. The Pleasanton Calif-based company originated over $5 billion in loans last year.

E-Loan said it will keep its brand and most of its employees after becoming a wholly owned subsidiary of Popular, the holding company for Banco Popular de Puerto Rico, the US territory's largest bank.

Its Banco Popular North America, which has 135 branches in six states, concentrates on the growing Hispanic market and is the nation's biggest Hispanic-owned financial services business.

Venezuelan officials visit St Lucia to follow up on oil deal

CASTRIES, (AP) - Venezuela oil officials visited St Lucia as part of a tour to follow up on an agreement to provide cheaper fuel to Caribbean countries.

Prime Minister Kenny Anthony said he met with the manager of Venezuela's El Palito oil refinery and seven other officials to discuss the Petrocaribe agreement.

St Lucia was one of 13 Caribbean countries that signed the deal with Venezuela during a summit last month. The deal, which comes amid soaring international fuel prices, offers generous financing for oil sales and favourable rates in exchange for goods and services or simply credit.

The Venezuelan delegation was visiting several countries that signed the deal, Anthony said.

Trousers in Denim

Cream of the 'Crop'

Cheeky's World