Argentina and Bolivia cut a deal on natural gas

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morales is acting quickly to put a halt to the historical exploitation of his country's resources... while this is definitely a good thing, it's too bad it has to fall on a neighboring country which hasn't fully recovered from its 2001 economic collapse and is still dealing with the subsequent skyrocketing poverty, unemployment, and, last year, nearly 12% inflation... the good news is that the argentine economy has been growing at better than 9% for over three years... nonetheless, there are many (and i know some of them), who are already being hit hard by rising prices... this won't help...

The government agreed yesterday to pay almost 50 percent more for the natural gas it imports from Bolivia, which has sought to end a tradition of supplying its neighbours with energy at below-market prices.

Presidents Evo Morales of Bolivia and Nestor Kirchner of Argentina signed the agreement at a rally in front of thousands of Argentines and Bolivian immigrants in the northwestern [Buenos Aires] suburban district of Hurlingham.

The pact raises the price to US$5 per million British thermal units (BTU) from US$3.40 per million.

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