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  • Monday Memo: U.S.-Cuba Talks — Colombia Peace Talks — Latin American Currencies — New Uruguayan President — Peruvian Ecotourism

    March 2, 2015

    by AQ Online

    This week’s likely top stories:U.S.-Cuba talks promising; New delegation for FARC peace talks; Dollar strengthens against Latin American currencies; Tabaré Vázquez takes office; Peruvian businesses to learn from Costa Rican ecotourism.

    U.S.-Cuba Normalization Talks Promising: After two rounds of talks—one in Havana last month and the second in Washington DC on Friday—the U.S. and Cuba announced that the re-opening of a U.S. embassy in Havana before the April 10-11 Summit of the Americas is not out of the question. While U.S. Assistant Secretary of State for Western Hemisphere Affairs Roberta Jacobson and her counterpart—Joséfina Vidal Ferreiro, the director for United States Affairs at the Ministry of Foreign Affairs of Cuba—agreed that the talks were productive, Cuba remains on the State Departments Sponsors of Terrorism list and the Cuban Interests Section in Washington DC remains unbanked. While not a precondition for further normalization, Vidal emphasized that the removal of Cuba from the terrorism list was a top priority. U.S. Secretary of State John Kerry emphasized that the terrorism list was an issue separate from the negotiations, and that the review of Cuba’s position on the list would go through Congress. In simultaneous addresses on December 17, U.S. President Barack Obama and Cuban President Raúl Castro announced the re-establishment of relations after Cuba released 65-year-old former U.S. Agency for International Development (USAID) contractor Alan Gross on humanitarian grounds and the U.S. released the three remaining “Cuban Five.”

    Colombian President Announces New Delegation for FARC Peace Talks: Colombian President Juan Manuel Santos announced on Monday that a new delegation of negotiators will be sent to Havana, Cuba on Tuesday to join the ongoing peace talks with the Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia—FARC). The emissaries—five active generals and one admiral of the Colombian Armed Forces—are joining the peace talks with the purpose of discussing a bilateral ceasefire. Santos also commented on the possibility of reaching a solution with the United States to not extradite FARC leaders, should an agreement ending the conflict be reached. Last week, former UN Secretary-General Kofi Annan attended the talks, declaring that any agreement must be just and meet international standards. “Transitional justice is an issue of concern and controversy,” he said. “However, I would like to emphasize that justice must fit the Colombian context—while respecting international minimum standards. No one shoe fits all.”

    Dollar Strengthens Against Latin American Currencies: Several currencies in Latin America are at their lowest levels in years, due to the decline in commodity prices and the expansion of the U.S. economy. Higher U.S. interest rates are expected to drive funds out of riskier emerging markets, contributing to currency weakness in the region. This week, however, several currencies may make profits, with operators seeking to exchange them for dollars to avoid the risk of a currency relapse later in the year, in which the dollar may weaken. In Brazil, the real may decline to 3 reais per dollar this week, causing a further devaluation of the Brazilian currency as market players turn to the dollar. The Colombian peso may move from 2,480 to 2,600 pesos per dollar in the next few weeks. In Peru, the dollar is expected to continue strengthening against the Peruvian Nuevo Sol from 2.96 to between 3.090 and 3.105 Nuevos Soles per dollar. The Argentine peso will likely continue its slight decline to an official 8.77 pesos per dollar, but the informal market levels continue to stay at 13 pesos per dollar. Increased purchasing of dollars may continue the Latin American currency devaluation trend seen in the past five years.

    Uruguayan President Tabaré Vázquez Takes Office: Uruguayan President Tabaré Vázquez was inaugurated on Sunday, taking over from 79-year old President José Mujica. Vázquez, a 75-year old oncologist who served as president from 2005-2010, represents the Frente Amplio (Broad Front—FA), a leftist coalition party. In his inauguration speech, Vázquez called for national unity, particularly regarding public education, health and housing. Vázquez will inherit a growing economy and historically low unemployment rates. This transfer of power marks 30 years of uninterrupted democracy in Uruguay since President Julio María Sanguinetti‘s 1985 election ended the country’s 12-year dictatorship. “I would like to earnestly greet the 30 years of uninterrupted democracy we enjoy in Uruguay,” said Vázquez.

    Peruvian Businesses to Learn from Costa Rican Ecotourism Best Practices: Sixteen Peruvian businesses are attending the Seminario Internacional de Desarrollo y Gestión de Productos y Servicios Turístico Sostenible (International Seminar for Development and Management of Sustainable Tourism Products and Services) in Costa Rica from March 1-8 to learn best practices regarding ecotourism.  Participants in the week-long seminar, organized by La Asociación Costarricense de Profesionales en Turismo (Costa Rican Association of Tourism Professionals—Acoprot), will visit Costa Rican businesses that have successfully created sustainable products and business models. The Peruvian entrepreneurs will learn from tourist guides, sustainable companies and hotels, and will participate in site visits to parts of Costa Rica that have applied sustainable tourism methodologies—the Monteverde Cloud Forest and La Fortuna volcano. The seminar offers technical round tables, keynote speeches and workshops.

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  • Protests Highlight Guatemalan Minimum Wage Concerns

    February 27, 2015

    by Nic Wirtz

    Guatemalan Vice President Roxana Baldetti’s insensitive recent comments about planned changes to the country’s minimum wage were answered by nationwide demonstrations on February 22, organized by Guatemala’s Coordinadora Nacional de Organizaciones Campesinas (National Coordination of Peasant Organizations—CNOC). In response to four accords approved at the end of 2014 to establish a lower monthly minimum wage of 1,500 quetzales ($196.6) in the municipalities of Estanzuela, Masagua, San Augustine and Guastatoya, protesters blocked at least 22 roads in various parts of the country, including border areas and major highways.

    According to the government, a differentiated minimum wage would lower labor costs to encourage investment in the four municipalities. The new wages were set to go in effect in January, but the decision was suspended late that month after the Procurador de los Derechos Humanos  (Human Rights OmbudsmanPDH) raised an injunction in the Constitutional Court, arguing that the measure violated labor rights of workers in those areas. The UN Special Rapporteur on Extreme Poverty, Philip Alston, also criticized the decision. “Having an exploited labor force is not a viable way to foster economic and social development,” he affirmed.

    Responding to the controversy in a press conference last weekend, Baldetti defended the wage differential in a way that many Guatemalans found offensive. Baldetti claimed that if she lived in Estanzuela and had five children, she would be “blessed by God” if she was offered a job in a factory, “whatever the laws say.”  “It’s better to have 1,200 quetzales [$157] in your pocket [than to have] nothing and have to eat […] once a day, tortilla with salt,” she said.

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    Tags: Guatemala, Roxana Baldetti, Minimum Wage, Labor rights

  • Second Round of U.S.-Cuba Talks Begins

    February 27, 2015

    by AQ Online

    Delegates from the U.S. and Cuba met at the State Department in Washington, DC today to continue negotiations to normalize diplomatic relations between the two countries. According to an unnamed U.S. State Department official, the current negotiations will focus on reopening the embassies. Speaking to whether the embassies will be opened before the Summit of Americas in April, a State Department official said, “Both sides have an interest in doing this as quickly as possible. I hope that we can be done in that kind of a time frame but I just can’t be sure.”

    Cuba is likely to link the process to its removal from the U.S. government’s State Sponsors of Terrorism (SSOT) list. The country shares the SSOT designation with Iran, Sudan and Syria. Cuban President Raúl Castro has qualified Cuba’s presence on the SSOT list as “unjustifiable.”

    U.S. President Barack Obama announced a review of the designation last December, but that process is still underway. Regarding the ongoing negotiations, a State Department official said, “It would be very easy to reestablish diplomatic relations if [the Cubans] didn’t link the two things.”

    The Cuban delegation will reportedly also seek a solution to its banking problems in the United States. Cuba’s Special Interests Section in Washington DC has cited the difficulty of finding banks in the U.S. willing to work with it—and consequently, all consular services are being transacted in cash. The U.S. delegation will reportedly seek to hammer out bureaucratic details, such as the number of representatives allowed at the embassies and the elimination of restrictions on diplomatic pouches.

    Tags: Normalization, US-Cuba relations, SSOT

  • Vote to Decriminalize Marijuana Passes in Jamaica

    February 26, 2015

    by AQ Online

    A vote to decriminalize marijuana passed through Jamaica’s parliament Tuesday night and is expected to be signed into law by Governor General Sir Patrick Allen later this week. The law, approved by Jamaica's Senate in February, will overturn the Dangerous Drugs Act of 1948, which punishes the possession, cultivation, selling, transporting, and smoking of “ganja,” the local term for the drug.

    Under the new regulation, possession of up to two ounces of marijuana will no longer show up on an individual’s criminal record, but will be re-categorized as a low-level offense resulting in a small fine. Individuals will be permitted to cultivate up to five plants on their property. Additionally, the law permits the use of marijuana for medical purposes, as well as for Rastafarian religious ceremonies.

    Marijuana regulation has been a hotly contested topic on the island, in large part due to Jamaica's close ties with the United States. However, Jamaica’s national security minister, Peter Bunting, assured the parliament that the new law would not affect international relations.

    "The passage of this legislation does not create a free-for-all in the growing, transporting, dealing or exporting of ganja. The security forces will continue to rigorously enforce Jamaican law consistent with our international treaty obligations," said Bunting.

    Earlier on Tuesday, Alaska passed legislation to legalize the recreational use of marijuana, joining Colorado and Washington as the only U.S. states to do so. Elsewhere in the hemisphere, Uruguay permits the growth, sale and distribution of marijuana, Mexico, Colombia and Argentina have decriminalized possession of the drug, and Chile, Costa Rica and Guatemala are in the process of discussing new policies around marijuana.

    Tags: Jamaica, Legalizing Marijuana, Rule of Law

  • Stay on the Korean Wave, Latin America

    February 26, 2015

    by María Fernanda Pérez Arguello

    The perception Korea once held of Latin America—of lazy workers and inefficient governments—has drastically changed today. From an entire floor dedicated to South Korean music, cuisine and clothes at a mall in Peru, to the first Korean Cultural Center in Argentina, to the United States Ambassador to Costa Rica singing and dancing to Psy’s Gangnam style, South Korea’s presence and influence in Latin America is growing. The small Asian nation has quietly but successfully flooded Latin American markets.

    However, this engagement has not been mutual—Latin American governments have yet to realize that they could lose out if they do not reciprocate.   

    The question then is not how or when this happened, but rather why many Latin American countries have remained unenthusiastic about South Korea, a country that only 30 years ago was torn by civil war and poverty-stricken. A Korea Economic Institute of America report highlights what could attract Latin America to engage more proactively with the country, including South Korea’s capacity to counterbalance China’s hegemony. South Korea does not want to be the third Asian player in Latin America, after Xi and Abe.

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    Tags: South Korea, Free Trade Agreements, emerging markets

  • Paraguayan Supreme Court To Issue Ruling on Expropriation Law

    February 25, 2015

    by AQ Online

    The Paraguayan government’s Institution for Indigenous Affairs of Paraguay (INDI) expressed its hope on Tuesday that the Paraguayan Supreme Court will reject an appeal from two German ranching companies that have been required to return 14,404 hectares of land to an Indigenous community.

    Roughly 500 members of the Sawhoyamaxa community of the Exnet nation have been living alongside a highway in the Chaco region since they were displaced from their ancestral lands by cattle ranchers 23 years ago. In 2006, The Inter-American Court of Human Rights (IACtHR) ruled that the Sawhoyamaxa’s rights had been violated and ordered the Paraguayan government to return the land to the community within three years of the ruling.

    Paraguayan president Horacio Cartes ultimately signed an expropriation law to return the lands to the Sawhoyamaxa on June 11, 2014 after it passed through the House and Senate after months of protests by the Exnet nation that the IACHR order had remained unfulfilled.

    Two months after the law was signed, Heribert Roedel, president of both the German ranching companies Roswell S.A. and Kansol & Company S.A., petitioned the Supreme Court to overturn the law on grounds of unconstitutionality. The Supreme Court unanimously rejected Roedel’s claims, but recently accepted a second appeal from the company that focuses more specifically on article 3 of the new law. The argument put forward by the company states that the article is unconstitutional because the “constitutional provision does not provide an assessment of the amount of compensation carried out by the Ministry of Public Works and Communications.”

    INDI has pointed out that the Paraguayan state would compensate the two companies with roughly $8 million and called the move by Roedel’s lawyers their “latest attempt to retain the property.”

    Tags: Indigenous Land Rights, Inter-American Court of Human Rights, Indigenous Rights

  • Cuba after Netflix

    February 25, 2015

    by Lawrence Gutman

    Cue the House of Cards metaphors. On February 9, Netflix announced via Twitter its release of content in Cuba. It’s been two months since the resumption of U.S.-Cuban diplomacy and Frank Underwood’s journey to the White House can now be viewed within sight of the Plaza of the Revolution.  

    Of course, few on the island actually received Netflix’s tweet. Approximately five percent of Cubans have regular internet access, Cuban broadband is among the slowest in the world and Netflix’s $7.99 monthly fee is prohibitively expensive for a vast majority of Cubans.  For the foreseeable future, Netflix’s Cuban clientele will consist of tourists, visiting businesspeople and journalists, government personnel, and private computer owners with access to foreign subscriptions and/or cash remittances from abroad.

    It may be a small and symbolic investment, but Netflix’s expansion into Cuba is an investment nonetheless. The tech giant’s foray is adding to a growing sense of commercial momentum that is attracting the attention of investors, drawing the island closer to North American capital and eroding support for the half century-old embargo.  This momentum will begin to disabuse many U.S. firms of their “wait and see” approach to assessing Cuban markets and devising investment strategies. It will also give elected officials cover to rethink their advocacy for an unsuccessful policy toward Cuba and the chance to garner support from the business community. Though the embargo remains in place with congressional backing, it now faces unprecedented opposition.

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    Tags: Netflix, Cuba, US Policy in Cuba

  • Terrorism: Fear is Not a Policy

    February 24, 2015

    by John Parisella

    Last week’s international summit on terrorism at the White House showed how much the issue has become a central concern around the world.  Evidently, the fear of a homegrown attack has understandably pushed many nations to enact more stringent laws and preventive measures. The recent spread of terrorist attacks in Western Europe and Canada has only heightened the urgency.

    In Canada, the governing Conservative government has introduced legislation aimed at giving more powers to its intelligence gathering agency (CSIS) in order to diminish a repeat of the lone-wolf attacks of last autumn in Ottawa and St. Jean, Québec.  The proposed legislation has received overwhelming support in a recent poll (according to a poll by IPSOS Reid, over 60 percent of respondents support it).  The highest level of support actually comes from my own home province of Québec, usually more reluctant to enhance existing security measures.

    The debate in the House of Commons in Ottawa is a foregone conclusion. The Conservatives under Prime Minister Stephen Harper have the majority in the House, and the third party Liberal leader Justin Trudeau has indicated his support, along with demands for greater parliamentary accountability and oversight.  Official Opposition leader Tom Mulcair of the New Democratic Party (NDP) has led the charge against the bill, arguing that increased powers for the spy agency warrant serious concerns regarding the possibility that increased powers may violate the Charter of Rights and Freedoms.  Despite this, the bill will likely pass the House of Commons within in a few days.

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    Tags: Canada, Anti-Terrorism, Civil rights

  • U.S. Appeals Ruling Against Obama’s Executive Action

    February 24, 2015

    by AQ Online

    Department of Justice lawyers filed a notice of appeal and a motion for a stay on Monday with Texas Judge Andrew S. Hanen in an attempt to postpone a hold on President Barack Obama’s executive action on immigration.

    U.S. District Judge Hanen filed a preliminary injunction on February 16 against a plan that Obama announced late last year to protect millions of undocumented immigrants from deportation. The first piece of the program—the expansion of the Deferred Action for Childhood Arrivals program—was scheduled to begin on February 18. The other program, Deferred Action for Parental Accountability, was scheduled to begin in May. Together, around 4.7 million undocumented immigrants would be eligible for deferred deportation. Texas and 25 other states have filed a lawsuit arguing that executive action on immigration was unconstitutional, and claiming that it would obligate states to increase their funding for healthcare and education. Twelve states and Washington, D.C., along with 33 cities, the U.S. Conference of Mayors and the National League of Cities have signed an amicus brief in support of Obama’s executive action on immigration.

    Hanen’s ruling has already interrupted the federal government’s immigration action plans: on Friday, the U.S. Citizenship and Immigration Service’s lease on an office building in Virginia to process applications for the program was canceled. A hold on the stay would allow the program to continue throughout the government’s appeal process.

    If Hanen rejects the motion, the U.S. government is likely to request a stay at the 5th U.S. Circuit Court of Appeals in New Orleans. Hanen’s decision is expected by the close of business on Wednesday, February 25.

    Tags: Andrew S. Hanen, executive action, U.S. immigration reform, DACA

  • Monday Memo: Peru-Chile Relations—Panama Hydroelectric Dam—Guatemala-Honduras Customs—São Paulo Drought—Venezuela Conspiracy Charges

    February 23, 2015

    by AQ Online

    Allegations of Espionage Threaten Peru-Chile Relations: Chilean Minister of Foreign Affairs Heraldo Muñoz announced on Sunday that Chilean Ambassador Roberto Ibarra would not return to his post in Peru in light of the country’s espionage complaints against Chile. On Friday, Peruvian Ambassador Francisco Rojas Samanez was recalled to Lima after Peruvian prosecutors claimed that several Peruvian naval officers sold confidential information about their navy’s surveillance of fishing boats to Chilean navy officials.  Two of the naval officers implicated in the leaks have been placed in detention. Muñoz has stated that Ibarra is “in consultations” to craft a response to the allegations “with calmness and without harsh remarks.” Peruvian president Ollanta Humala called on Chilean president Michelle Bachelet to issue assurance “that such espionage activities will never be repeated.”

    Panama to Mediate Conflict Regarding Hydroelectric Dam: The Panamanian government formally announced negotiations on Saturday to address growing conflict over the construction of the Barro Blanco hydroelectric plant on the Tabasará River, which is now 95 percent complete. A neighboring Indigenous community, the Ngäbe Buglé, is demanding cancellation of the $225 million project due to environmental concerns, and local protests stalled construction work on February 9. Negotiations over the dam are to be facilitated by the UN in the district of Tolé, 400 kilometers west of Panama City, and led by a high-level committee headed by the vice president and foreign minister of Panama, Isabel de Saint Malo de Alvarado. Panamanian President Juan Carlos Varela expressed faith in the negotiations, saying, “we will do whatever we have to do in the negotiations to seek a solution. I have a lot of confidence and we will take the time that is required.” However, the president of the Regional Congress of the Traditional Ngäbe Buglé, Toribio García, said the community’s opposition to the dam is “not negotiable” and announced that they would not participate in the negotiations.

    Guatemala to Eliminate Customs Duties with Honduras: Guatemalan President Otto Pérez Molina set a deadline of mid-December 2015 to eliminate customs duties between Guatemala and Honduras in an effort to improve both countries’ trade. Guatemalan Foreign Affairs Minister Carlos Raúl Morales also confirmed that three shared land border crossings between the two countries could also be phased out, and expressed hope that El Salvador and Nicaragua would eventually join the partnership. The plan is part of a coordinated response to the humanitarian crisis of thousands of migrants fleeing to the U.S. border in the summer of 2014. In September 2014, the three Northern Triangle countries of El Salvador, Guatemala and Honduras formed the Alliance for Prosperity in the Northern Triangle, a joint development plan that included eliminating customs to promote peace and prosperity in the region. The Northern Triangle’s combined population is 29 million and has the highest poverty levels in Latin America. The plan has received support from the Obama administration.

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    Tags: Peru-Chile espionage, Hydroelectric dam, Guatemala-Honduras customs, Brazil Drought, Venezuela conspiracy, Nicolás Maduro, Antonio Ledezma

  • Maduro Enajenado de la Realidad Venezolana

    February 20, 2015

    by Paula Ramón

    Luego de superar el único intento de golpe de Estado registrado en los últimos 15 años, el entonces presidente de Venezuela, Hugo Chávez, ordenó la detención de Henrique Capriles Radonski—un joven alcalde opositor—quien debía manejar la seguridad de la Embajada de Cuba en medio de la crisis política nacional. 

    El confuso incidente—Capriles afirma que intentaba mediar entre opositores y los diplomáticos de La Habana, mientras que el gobierno lo acusaba de poner en peligro a la delegación—nunca fue esclarecido. Capriles, siendo alcalde electo del municipio Baruta, permaneció cuatro meses detenido en la sede de la dirección de inteligencia sin un proceso judicial. Los cargos fueron descartados en 2006. 

    En 2014, Nicolás Maduro, heredero político de Chávez, y Leopoldo López, el exalcalde de Chacao, repitieron el capítulo de 2002. López, un joven economista egresado de Harvard, fue compañero de partido de Capriles durante algunos años y se convirtieron en la nueva cara de la política venezolana. Jóvenes, exitosos y con aparente ambición política, han sido blancos constantes de la “revolución bolivariana.” El año pasado el gobierno ordenó la detención de López, quien el 12 de febrero había liderado una protesta estudiantil demandando la renuncia de Maduro. Después de entregarse voluntariamente, López ha permanecido recluido en una cárcel militar, sin derecho a visitas, por un año. ¿La acusación? Golpismo. 

    Este jueves 19 de febrero, el jefe de Estado pidió cárcel para el alcalde mayor de Caracas, Antonio Ledezma, quien luego fue detenido por la policía política en un operativo poco claro. Doce horas después del arresto, ninguna información oficial ha sido divulgada, excepto el “Ledezma va a ser procesado” que Maduro esbozó la misma noche del jueves.

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    Tags: Nicolás Maduro, Leopoldo Lopez, Hugo Chavez, Venezuela

  • Dictator Gives Millions to Rio Carnival Winner

    February 20, 2015

    by Flora Charner

    Thousands of performers and eight elaborate floats from the Beija-Flor samba school paraded through Rio de Janeiro’s Sambadrome arena last Monday. The 80-minute spectacle, meant to take spectators on a tour of the African country of Equatorial Guinea, was chosen as this year’s winner after receiving a nearly perfect score in every category from the judges.

    But underneath the peacock feathers and gyrating dancers, lurked the dark shadow of allegations that a large chunk of the parade was funded by one of Africa’s most oppressive dictators.

    Teodoro Obiang Nguema Mbasogo, Equatorial Guinea’s 72 year-old leader, reportedly funneled  $10 million Brazilian reals (roughly $3.5 million dollars) into sponsoring Beija-Flor’s carnival parade theme. A big fan of Rio’s carnival, the dictator has attended the pre-lenten festivities for more than 10 years.

    Considered to be one of the world’s wealthiest and most corrupt leaders, Obiang is accused of squandering Equatorial Guinea’s oil wealth and keeping the majority of its 700,000 citizens living in poverty. He has been in power for more than 35 years after leading a bloody coup against his uncle and former dictator Francisco Macias, whom he had executed by firing squad.

    Although it is common for samba schools to accept money from companies or countries sponsoring parade themes—past parades have been accused of laundering drug money and being funded by an illegal gambling scheme called the jogo do bixo—no school has ever received such a large sum. While many are shocked by the decision to crown Beija-Flor, others believe politics should not taint their performance.

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    Tags: Beija-Flor, Carnival, Teodoro Obiang Nguema Mbasogo

  • Colombian Court Rules There Must Be a Biological Tie for Gay Adoption

    February 20, 2015

    by AQ Online

    Colombia’s Constitutional Court upheld the right of adoption by same-sex couples on Wednesday via Twitter, but only if the child in question has biological ties to one of the partners. The narrow 5-4 ruling excludes gay adoption in other circumstances. “Adoption will only be allowed when it deals with the biological child of the same sex partner," read the decision.

    Wednesday’s decision comes after a historic 6-3 ruling in August 2014 that allowed an adoption request from a same-sex couple for the first time. The Court found that sexual orientation cannot be a discriminating factor in second-adoption cases, and overruled Colombia’s Family Welfare bureau, which had denied a woman’s petition to adopt her partner’s biological daughter—who was conceived through in vitro fertilization (IVF).

    Lesbian, gay, bisexual, and transgender (LGBT) groups expressed disappointment, saying the Court did not go far enough and promoting the hashtag #SiALaAdopcionIgualitaria (yes to equal adoption). Wednesday’s ruling is the latest in a string of favorable precedents set by the Court. Colombia’s highest court has been slowly expanding gay rights—recognizing de facto unions for gay couples and granting them joint health insurance coverage in 2007; shared pension rights in 2008; and inheritance rights in 2009.

    Same-sex marriage and adoption rights have so far been recognized in Argentina, Uruguay, Brazil and some states in Mexico.

    Tags: Gay Rights, Same-sex adoption, Constitutional Court

  • Pemex Suspends Deep Water Projects

    February 19, 2015

    by AQ Online

    Emilio Lozoya, the CEO of Petróleos Mexicanos (Mexican Petroleums—Pemex), announced Wednesday that some of the company’s deep water exploration projects would be put on hold due to the declining prices of crude oil. In addition to scaling back on research projects, Lozoya said that job cuts would also be part of a spending cut of over $4.16 billion dollars approved by Pemex’s board of directors last week.

    The price of oil has dropped drastically in the last year. Although crude prices averaged at $86 dollars a barrel in 2014, prices fell from a high of $100 dollars a barrel in June of last year to a mere $40 dollars in January of this year. This week prices were slightly up at $50.57 dollars a barrel, a price considered $25 dollars below the amount needed to make such deep water exploration projects profitable. “The exploration of some deep water deposits, especially the riskier ones and those that have not yet begun will be suspended,” said Lozoya.

    However, despite the pull backs, Pemex insists that it will continue with Round 1 projects, which are investments in shallow-water areas with lower extraction costs bid upon by outside companies. 

    Pemex, which is the seventh largest oil producer in the world, has been rocked by a number of changes over the past year. In August of 2014 the administration of President Enrique Peña Nieto succeeded in passing an energy reform bill to break-up the Pemex oil monopoly, awarding foreign companies oil contracts for the first time in Mexico since 1938. The oil giant has also had to deal with illegal tapping of its petrol and diesel pipelines, costing the company over $1 billion dollars.

    Tags: Pemex, oil prices, Mexico

  • U.S. and Cuba Schedule Second Round of Diplomatic Talks

    February 18, 2015

    by AQ Online

    The U.S. and Cuba will hold the second round of negotiations to restore diplomatic ties on February 27 in Washington D.C., State Department Spokesperson Jen Psaki announced on Tuesday.

    The initial round of talks occurred in Havana on January 21-22, with Assistant Secretary of State for Western Hemisphere Affairs Roberta Jacobson leading the U.S. delegation, and Josefina Vidal, General Director for the U.S. within the Cuban Foreign Ministry heading the Cuban envoy. The U.S. has called for Cuba to lift travel restrictions for U.S. diplomatic staff, and has indicated that it will not remove Cuba’s name from its list of state sponsored terrorists until the U.S. embassy is allowed to reopen. Cuba has countered that its name must be removed from the list before it allows the U.S. embassy to reopen. It has also insisted that the U.S. halt its support for Cuban political dissidents, and that the U.S. trade embargo to be lifted.

    Since the December 17th announcement that the two countries would aim to normalize relations, the Obama administration has taken steps toward easing travel and trade restrictions against Cuba, including a decision by the State Department last Friday to allow imports of privately produced products from Cuban entrepreneurs. However, it will take an act of legislation from Congress to fully lift the trade embargo.

    A group of bipartisan lawmakers introduced a bill on February 12th that would end the trade embargo. Democratic senator Amy Klobuchar, the lead sponsor of the bill, completed a 4-day visit to Cuba yesterday with two other Democratic Senators, Claire McCaskill and Mark Warner. The bill is co-sponsored by Republican Senators Jeff Flake and Mike Enzi, as well as Democrats Patrick Leahy, Richard Durbin and Debbie Stabenow.

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    Tags: Cuba Embargo, U.S. diplomacy in Latin America, U.S. Cuba policy

  • Foreign Policy Made in North America?

    February 17, 2015

    by Kezia McKeague

    When U.S. Secretary of State John Kerry hosted his counterparts from Mexico and Canada for a North American Ministerial at Boston’s Faneuil Hall last month, the discussions focused on many of the trilateral issues that affect this deeply integrated economic space—citizen security, trade and investment, and energy and climate change. Of interest to foreign-policy wonks, however, were the references to global challenges during the congenial press conference, ranging from Syria and Middle East peace to the promotion of democracy in the Americas.

    Behind the scenes, the three ministers had just agreed to the formation of a North American Caucus to consult on policy positions at multilateral fora. According to sources at the State Department the initial step will consist of monthly meetings at the ambassadorial level in the headquarters cities of the United Nations. The hope is that consultations will lead to policy coordination. While this already happens to a great extent with Canada, the challenge will be encouraging Mexico to take a more active global role.

    Mexican foreign policy has evolved since the watershed signing of the North American Free Trade Agreement more than 20 years ago. Traditional rhetoric had emphasized Latin American solidarity and non-interventionism—themes that still resonate in Mexico today, despite the steady growth of economic and social integration with the U.S. Between 2000 and 2012, the Partido Acción Nacional (National Action Party—PAN) administrations of Vicente Fox and Felipe Calderón distanced themselves from their predecessors’ preference for non-alignment and prioritized human rights and democracy in their relations with Latin America. Nevertheless, Mexico continued to punch below its weight on the world stage, and it sometimes found itself at odds with U.S. policy on global issues. Bilateral relations reached a nadir in 2003 when Mexico, a non-permanent member of the UN Security Council at the time, voted against a resolution authorizing military action in Iraq.

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    Tags: North America, foreign policy, multilateral organizations

  • Federal Judge Temporarily Halts Administrative Relief

    February 17, 2015

    by AQ Online

    U.S. District Judge Andrew S. Hanen issued an injunction yesterday against programs announced by President Obama last November that would shield millions of undocumented immigrants from deportation. Led by Texas, twenty-six states are suing the federal government over the programs, arguing that President Obama had acted beyond the boundaries of his legal authority and that the programs would create significant new costs for states. In a statement, Texas Attorney General Ken Paxton said, “This injunction makes it clear that the president is not a law unto himself, and must work with our elected leaders in Congress and satisfy the courts in a fashion our Founding Fathers envisioned.” Thirteen states, the District of Columbia, 33 mayors, and the Conference of Mayors have filed an amicus brief in support of the federal government.

    In a 123-page opinion that accompanied the injunction, Judge Hanen did not rule on the legality of the programs, Deferred Action for Parents of Americans (DAPA) and the expansion of Obama’s 2012 Deferred Action for Childhood Arrivals (DACA). However, he wrote that, by failing to provide the notice-and-comment period customary in federal rulemaking, the administration did not meet the requirements of the Administrative Procedure Act. He also noted that the injunction was needed to make time for a full trial on the case. “There will be no effective way of putting the toothpaste back in the tube” if the program were to start before a final ruling, he wrote. The government was due to begin receiving applications for the expanded DACA program on Wednesday.

    The White House has indicated that it will appeal the decision at the Fifth U.S. Circuit Court of Appeals. A statement released by the White House early today said, “The district court’s decision wrongly prevents these lawful, common-sense policies from taking effect and the Department of Justice has indicated that it will appeal that decision.” The administration is also widely expected to seek an emergency stay of the injunction, though it is unlikely that a stay will be granted before the application phase of the DACA expansion was due to begin.

    Meanwhile, Congress is currently dead-locked over attempts by Republican lawmakers in the House of Representatives to make the rollback of Obama’s executive actions on immigration a condition for funding the Department of Homeland Security. The department’s current funding expires on February 27.

    Tags: Immigration, DAPA, DACA

  • Meeting with Vice President Biden Triggers Alleged Retaliation from Venezuelan Government

    February 13, 2015

    by AQ Online

    At approximately 4 a.m. this morning, several armed, masked men reportedly broke into Venezuelan opposition leader Leopoldo López’ jail cell, destroying his belongings. López was then forcibly moved to a small isolation cell without access to running water or a toilet.

    According to human rights activist Lilian Tintori, López’ wife—who reported the events on Twitter—the move is retaliatory in response to her February 12 meeting with U.S. Vice President Joe Biden in the White House. During the meeting, which also included the family members of pro-government and anti-government protestors killed during last year’s demonstrations, Vice President Biden affirmed his support for human rights in Venezuela and advocated an end to impunity. He also called for the release of political prisoners in the country.

    Earlier this week, Tintori met with OAS Secretary General José Miguel Insulza, as well as Amnesty International Secretary General Salil Shetty.

    Various world leaders and NGOs have called for the release of Leopoldo López—who is accused of attempting to destabilize the government of President Nicolás Maduro—and other Venezuelan political prisoners without success. In October 2014, UN High Commissioner for Human Rights Zeid Raad al-Hussein advocated for Lopez’ release. The Venezuelan government rejected al-Hussein’s statement, claiming his assertions were “meddlesome, false and unfounded.”

    Listen to AQ’s interview with Lilian Tintori, on her fight for human rights in Venezuela.

    Tags: Lilian Tintori, Leopoldo Lopez, Human Rights

  • FARC Will No Longer Recruit Minors, Urges Government to Follow Suit

    February 13, 2015

    by AQ Online

    The Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia—FARC) announced yesterday an immediate ban on the recruitment of minors younger than age 17.

    In a statement on Thursday, the UN's International Day Against the Use of Child Soldiers, the FARC reiterated, “We want to take steps that will ensure that fewer generations and fewer young people will be involved in military confrontations which put their lives at risk.” The new ban will increase the previous minimum recruitment age of 15 by two years.

    Additionally, the chief negotiator for the FARC, Iván Márquez, accused the Colombian government of using minors to fight the guerrillas through the forced recruitment of young men and the use of children for gathering intelligence. He called on the armed forces to join the FARC in discontinuing the recruitment of minors.

    The Colombian government and the FARC have been involved in peace talks in Havana, Cuba since 2012. Many opponents of the peace talks point to the FARC’s own use of child soldiers in their criticism of the negotiations. The Colombian government has stated that it has rescued almost 6,000 former child soldiers in the last 15 years, many of them former guerrillas. Yet the FARC has disputed these figures, and says that its recruitment practices are in line with international humanitarian law.

    Read journalist Jenny Manrique’s interview with FARC peace negotiators in Havana in the Fall 2014 issue of AQ.

     

    Tags: FARC, Iván Márquez, child soldiers, Colombia Peace Talks

  • Peruvian Protest against Pluspetrol Turns Deadly

    February 12, 2015

    by AQ Online

    One person died and dozens more were injured after a protest against the Argentine energy company Pluspetrol turned violent late Tuesday night. A 25-year-old man, who was identified as Ever Pérez Huamán, passed away Wednesday morning after receiving a bullet wound to the abdomen. Police representative Edwin Rojas has said an investigation is underway to find out who fired the shot.

    The protest began on Monday, led by the Frente de Defensa Ambiental (Environmental Defense League) in the Pichanaki district in central Peru, and escalated late on Tuesday when, according to Peru’s interior ministry, over 500 people blockaded the roads leading to a Pluspetrol office in Pichanaki, destroyed two tents, and stole a water pump. Police forces reportedly responded by using tear gas to quell the crowd, and protesters then reportedly attacked with stones, spears and guns. Protesters say that the energy company contaminates their land and rivers.

    However, representatives of Pluspetrol have dismissed the accusations of environmental contamination. “It is a very basic exploration; we haven’t drilled, we haven’t contaminated anything, there is no possibility of a spill because we’re not producing anything,” said Pluspetrol spokesperson Daniel Guerra.

    Pluspetrol has been working in Peru since 2001 and has been conducting exploratory work on lot 108 in Pinchanaki since 2012. The nearly 3 million acres of land comprising the lot is a key excavating site, and experts have compared the quantity of gas reserves available to those of Camisea, which supplies half of Peru’s electric energy.

    Despite the promise of large quantities of natural resources, energy companies and local farmers and Indigenous groups continue to clash in Peru. Pluspetrol has been the focus of tension in two separate areas of the Peruvian Amazon since January of this year. Protestors claim they are demonstrating against President Ollanta Humala, who as part of his 2011 presidential campaign promised to defend the Amazon region against exploitation by the extractive industries.

    Read more about land rights and the extractive industry in AQ’s 2014  Peru Country Study and the Spring 2014 issue of AQ on consulta previa.

    Tags: Pluspetrol, Natural resource extraction, Frente de Defensa Ambiental

  • UNASUR and CAF Announce Plans for Latin American Fiber Optic Cable

    February 11, 2015

    by AQ Online

    The Unión de Naciones Suramericanas (The Union of South American Nations—UNASUR) and the Banco de Desarrollo de América Latina (Latin American Development Bank—CAF) announced plans on Tuesday to develop the first fiber optic cable exclusively financed by Latin American institutions.

    The creation of the proposed Red de Conectividad Suramericana para la Integración (South American Connectivity Network for Integration) could reduce South America’s reliance on foreign businesses for the infrastructure needed to connect to the Internet, subsequently lowering costs of access as well as increasing connectivity speeds.

    UNASUR Secretary-General Ernesto Samper explained in a press conference in Montevideo, Uruguay, that Internet speed in South America is significantly slower than in other countries because of the challenges of broadband connectivity in the region, causing prices to surge up to 20 times higher than in developed countries.

    There are an estimated 22.3 million Internet users in Latin America, accounting for 54.7 percent of the region’s population. Samper expressed concern about the digital divide in South America, stating that “one who is not connected is lost” and that Latin America “needs to generate value added processes and create autonomous communications highways to strengthen its independence and cyber defenses.” 

    CAF has pledged an initial investment of 1.5 million dollars for the first phase of the project, which will involve an in-depth analysis of the current Internet technologies in each South American country to determine how they will incorporate existing cables into the future fiber optic grid. The vice president of CAF, Antonio Sosa, stated that the study would focus on demographics, technical issues and institutional framework in each country.

    Tags: Internet and communication technology, UNASUR, CAF

  • El Salvador’s Upcoming Election: A Window for Reform?

    February 11, 2015

    by Julio Rank Wright

    El Salvador will hold its next legislative and municipal elections in three weeks, on March 1, 2015. As the country’s electorate preps for yet another election, political parties scramble to fine tune logistics and communication strategies in the run up to the election.

    The period leading up to the election has showcased El Salvador’s positive evolution in establishing democratic institutions. However, it has also shed light on pending reforms and necessary safeguards to protect the institutional framework which stemmed from the 1992 Peace Accords.

    The upcoming election will be a first for the country for several reasons. In November 2014, the Supreme Court of Justice determined that citizens could not be prevented from voting for individual candidates from various political parties. An election without blocked lists would take place for the first time. This would allow voters to choose between pre-determined party lists or select individual candidates from the different political parties.

    Despite the late notice of the reform (a mere four months before the election), El Salvador’s electoral institutions—including the Supreme Electoral Tribunal and political parties—responded positively and adapted to the change in voting procedures. Similarly, the forthcoming election will be the first to elect pluralist, multi-party municipal councils. Both reforms will ultimately contribute to strengthened political and democratic institutions within the legislative branch and in local municipalities.

    Read More

    Tags: El Salvador elections, El Salvador, FMLN, ARENA

  • La barbarie venezolana

    February 10, 2015

    by Paula Ramón

    El año comenzó con eventos que conmocionaron al mundo y llamaron a reflexionar sobre seguridad, radicalismo y civilización. Venezuela no fue inmune al contexto internacional. El 31 de enero de 2015, Caracas difundió una nota de pesar por el asesinato del periodista japonés Kenji Goto. En tres párrafos, el presidente Nicolás Maduro condenaba “enérgicamente” su decapitación. En las últimas líneas ratificaba que su gobierno abogaba "por el respeto a la vida y la tolerancia”. 

    Esto en un país que cerró 2014 como el segundo con mayor homicidios de la región, 82 por cada 100 mil habitantes (24.980 personas), según el reporte del Observatorio de la Violencia, ONG venezolana que monitoriza el tema en el país. El único “balance” oficial del gobierno venezolano al respecto fue el dado por la ministra de Interior y Justicia, Carmen Meléndez, quien el 5 de enero se limitó a decir que la tasa de homicidio en el país “ha bajado, un poco”. 

    En la primera semana de enero, en la principal morgue de Caracas ya contabilizaban el ingreso de 100 cadáveres para 2015, según la prensa nacional. Una semana cualquiera en la capital nacional. 

    Las cifras pueden transmitir la gravedad de la situación venezolana, pero no el día a día de un país cuya cotidianidad fue transfigurada. Restaurantes y lugares nocturnos modificaron sus horarios y comenzaron a operar con detectores de metales en las puertas para evitar el ingreso de armas. Carteles prohibiendo el porte de pistolas proliferan por todas partes, como si estar armado fuese algo normal. Caminar se ha vuelto un deporte de riesgo, y el territorio nacional es una zona roja, donde estar vivo es un regalo divino o un exceso de suerte.

    Read More

    Tags: Venezuelan economy, Nicolás Maduro, Venezuelan Protests

  • Narco-trafficker Claims He Funded Former President Fernández’ Campaign

    February 10, 2015

    by AQ Online

    Former Dominican army captain and infamous drug trafficker Quirino Ernesto Paulino Castillo announced on Monday that he funded former president Leonel Fernández’ presidential campaign, alleging that Fernández was fully aware of the source of the funding.

    In an interview yesterday on the TV program Hilando Filo, produced by reporter Salvador Holguín, Paulino Castillo said that he provided funds for Fernández’ presidential campaign from 2002 to 2004 (Fernández went on to serve as president from 2004 to 2012), as well as for the Fundación Global Democracia y Desarrollo (Global Democracy and Development Foundation—FUNGLODE), a non-profit founded by Fernández in 2000.

    Paulino Castillo indicated that over $155,625 in narco-trafficking funds was used for FUNGLODE. He also stated that Fernández owes him approximately $500,000, money that was used in his campaign for president of the Partido de la Liberación Dominicana (Dominican Liberation Party—PLD). Paulino Castillo further affirmed that the former president was aware that it was “dirty money,” and offered to take a polygraph test to prove his claims.

    Paulino, who was extradited to the U.S. in 2005 for drug crimes, was released in 2014, after rumored “negotiations” with authorities, leading to questions regarding the veracity of his claims.

    While Fernández was applauded for reducing inflation and encouraging foreign investment while in office, he was also criticized for downplaying corruption in the Dominican Republic. Three of his senior advisors had their visas revoked by the U.S. in 2012 for alleged ties to possible drug-traffickers.

    Administrative Minister of the Presidency José Ramón Peralta was asked today to comment on rumors circulating that his colleagues were financing a negative publicity campaign against Fernández. So far there has been no comment from Fernández on the allegations.

    Tags: Quirino Ernesto Paulino Castillo, President Leonel Fernandez, FUNGLODE

  • Canada’s Balanced Approach and the 2015 Election

    February 9, 2015

    by John Parisella

    To many outside our country, Canada has been characterized as a stable, durable democracy with a consistently enlightened approach to matters of public policy.  The political parties that have governed the country since its inception in 1867 have usually struck a balance between ideological pursuits and the general values Canadian hold dear.  Canada’s Supreme Court, meanwhile, has been devoid of the ideological splits that have characterized different periods in U.S. history.

    Last week best illustrates how Canada can come to grips with some crucial and potentially divisive issues.  On February 2, the Conservative government of Stephen Harper tabled new anti-terrorism legislation that went further than some (including myself), who cherish basic freedoms and favor restraints on police authority in the exercise of these freedoms, would have liked.  The proposed legislation, however, does strike a chord with a majority of Canadians who are willing to give some leeway to authorities in combating the scourge of terrorism and in remembering the risks of homegrown terrorist assaults (this following two such acts last autumn on Canadian soil).

    The opposition parties—the New Democratic Party (NDP) and the Liberals— immediately expressed serious reservations about the new police-type powers handed to Canada’s intelligence agency, the Canadian Security Intelligence Service, or CSIS (Canada’s version of the CIA).

    The NDP has chosen to use parliamentary debate to extract amendments before indicating its decision to vote for or against the proposed bill.  The Liberals decided to support the bill, but proposed stronger oversight measures for the elected representatives.  This being an election year, we can expect more fireworks, with the ultimate assessment of the law being made some time after the upcoming Canadian election.  But the debate in itself is healthy.

    Read More

    Tags: Canada, Canadian politics

  • Monday Memo: Iguala Students—Cuban Internet—Nicaragua Canal—Strike in Haiti—Unasur facilitates U.S.-Venezuela dialogue

    February 9, 2015

    by AQ Online

    Likely top stories this week: Independent forensic team deems Mexico’s 43 missing students case inconclusive; Cuban authorities to expand Internet centers in 2015; archaeological relics uncovered along Nicaragua Canal route; a general strike in Haiti on eve of Carnival; Unasur seeks to facilitate U.S.-Venezuela dialogue.

    Independent Forensic Team Deems Mexico’s 43 Missing Students Case Inconclusive: A forensic report conducted by a team of Argentine experts was released on Saturday, questioning the Mexican government’s announcement last month that the 43 missing students in Iguala were definitively murdered. Hired by the students’ families to conduct an independent investigation, the Argentine Forensic Anthropologists concluded that Mexico’s official statement does not provide sufficient evidence to close the case. The report also issued a list of discrepancies in the Mexican attorney general’s investigation, including mistakes in the collection of 20 genetic profiles from family members that rendered them unusable, and allowing the trash dump—a key crime scene—to be unguarded for weeks. The Argentine team insists that investigations into the students’ disappearances should continue. The attorney general’s office has not responded to the statement.

    Cuba to have 300 Internet Centers by Late 2015: Cuban authorities plan to create more than 300 Internet centers by the end of 2015, according to the state-run telecommunications company, Etecsa. There are currently 155 public “cyber points,” established by Etecsa in June 2013, that provide restricted access to the Internet at the steep cost of $4.50 per hour—as much as 20 percent of the minimum monthly wage. Etecsa also announced the possibility of creating Wi-Fi networks in hotels. Currently, only certain professionals have access to the internet—with government authorization. In January, the U.S. eased export restrictions on IT equipment to improve telecommunications and Internet access in Cuba, a market of 11 million people.

    15,000 Pre-Columbian Artifacts Discovered along Nicaragua Canal Route: Nicaragua Canal developers have discovered 15,000 pre-Columbian artifacts—mainly shards of pottery and obsidian—along the interoceanic canal’s proposed 173-mile route. The relics were found above ground, but archaeologists expect to unearth more artifacts once digging officially begins. Environmental Resources Management (ERM), a British consulting firm, and Jorge Espinoza, a Nicaraguan archaeologist, plan to work with the Nicaraguan government and the Chinese development firm HKND to conduct a number of specific archaeological excavations along the route. “Due to the quantity, it would be impossible to preserve every last relic,” says ERM. The $50 billion project is estimated to take five years and has faced significant pushback from Nicaraguan farmers citing social and environmental concerns.

    General Strike in Haiti on Eve of Carnival: The three-month-long protests against Haitian President Michel Martelly are expected to continue today, with a two-day general strike planned in the capital city of Port-au-Prince over the high cost of gasoline. While the global price of crude oil continues to fall, and is currently at about $53 per barrel, the Haitian government has emphasized that it cannot lower the price of gasoline—currently at $4.50 a gallon after a recent $0.25 reduction—due to its PetroCaribe debt.  Haiti’s debt to Venezuela’s preferential fuel program is currently at about $1.5 billion. Protestors have threatened to disrupt Haiti’s Carnival, set to begin on February 15, if the prices aren’t lowered further. Haiti’s long-delayed elections originally sparked the anti-government protests in December, and President Martelly continues to rule by decree. Despite threats of violence during the strike, protests against the high cost of fuel that drew about 6,000 people over the weekend were largely peaceful.

    Unasur Seeks to Facilitate U.S.-Venezuela  Dialogue: As the meeting of the foreign  affairs ministers of the Unión de Naciones Suramericanas (Union of South American Nations—Unasur) requested by Venezuelan President Nicolás Maduro drew to a close in Uruguay today, Ricardo Patiño, Minister of Foreign Affairs of Ecuador, expressed Unasur’s concerns over U.S. sanctions against Venezuela. Patiño emphasized the committee’s interest in opening up direct channels of communication between the U.S. and the South American nation after receiving a report on the potential impact of recent U.S. sanctions against Venezuelan government officials, which stem from charges of corruption and human rights violations following mass protests in Venezuela last year. The U.S. sanctions have frozen assets and restricted travel visas for former and current government officials who are believed to have taken part in human rights abuses, and were expanded to include their immediate family members last week after the Venezuelan government ignored “repeated calls for change,” and “continued to demonstrate a lack of respect for human rights and fundamental freedoms,” according to U.S. State Department spokeswoman Jen Psaki.

    Tags: Ayotzinapa, Nicaragua Canal, Cuba Internet, UNASUR, President Michele Martelly

  • Brazilian Authorities Question Workers’ Party Treasurer in Petrobras Scandal

    February 6, 2015

    by AQ Online

    On Thursday morning, Brazilian police questioned the treasurer of Brazil’s governing Partido dos Trabalhadores (Workers’ Party—PT), João Vaccari Neto, in connection with the deepening corruption scandal that has engulfed the state-run oil company Petroleos Brasileiros SA (Brazilian Petroleum SA—Petrobras). Vaccari’s questioning came just a day after the oil giant’s chief executive, Maria das Graças Foster, and five other executives resigned in connection to the scandal. After the interrogation, Vaccari released a statement on the PT website. “All the questions asked by the police chief were clarified,” Vaccari declared. “I answered everything transparently, and with total candor and tranquility.”

    Vaccari has been under suspicion for months, since a former Petrobras director, Paulo Roberto Costa—detained last March and now cooperating with authorities—alleged that Vaccari was the intermediary between corrupt elements of Petrobras and the PT. Another informer in the case, Pedro Barusco, has alleged that Vaccari had collected 200 million Brazilian reals (about $72 million) for the PT. “[Vaccari] never received cash payments as treasurer of the PT,” Vaccari’s lawyer is reported to have said. The PT has reportedly released a statement declaring that the party has only received legal donations, and that all donations have been registered with the country’s electoral authorities.

    While formal charges have not been lodged against Vaccari, his questioning represents a further challenge for Brazilian President Dilma Rousseff, as opposition parties prepare to launch a congressional probe into the scandal. This morning, her government moved quickly to stanch the fallout from Wednesday’s crisis, naming Aldemir Bendine, the current president of the Banco do Brasil (Bank of Brazil), as the new chief executive of Petrobras.

    Tags: Petrobras Scandal, Lava Jato, corruption

  • Secretary-General of UNASUR, Nicolás Maduro Meet in Caracas

    February 5, 2015

    by AQ Online

    Ernesto Samper, Secretary-General of the Unión de Naciones Suramericanas (Union of South American Nations—UNASUR) traveled to Caracas Wednesday to meet with Venezuelan President Nicolás Maduro and discuss efforts to reinitiate talks between Venezuela and the United States. The two met Wednesday evening in a private meeting at the Miraflores Palace.

    Maduro announced the planned arrival of Samper during his weekly address to the nation on Tuesday night, during which he also accused the Obama administration of attempting to orchestrate a “bloody coup” against the Venezuelan government. The partnership with UNASUR would be aimed at building a “diplomacy of peace, dialogue, and understanding, so as to stop aggression against Venezuela,” Maduro said.

    In addition to UNASUR, Maduro also broadcast his outreach to the Comunidad de Estados Latinoamericanos y Caribeños (Community of Latin American and Caribbean States—CELAC) through its president pro-tempore, Ecuadorean President Rafael Correa, who Maduro said would lend support to a collaborative effort among UNASUR nations to fight the alleged U.S. conspiracy against Venezuela.

    Earlier this week, the U.S. government implemented sanctions against Venezuelan officials accused of corruption, narco-trafficking and human rights violations, as part of a sanctions bill signed by U.S. President Barack Obama in December of last year.  The Venezuelan government has vehemently fought back against the bill, which places travel restrictions and freezes the accounts of the alleged human rights abusers and their families.

    For more on Venezuela’s foreign policy, check out Víctor Mijares’ article in the new Winter 2015 issue of AQ.

    Tags: Nicolás Maduro, Ernesto Samper, Venezuela-U.S. relations

  • Portillo: from Prisoner to Political Return?

    February 4, 2015

    by Nic Wirtz

    Former Guatemalan president Alfonso Portillo could be set for a stunning return to the political arena in the country’s upcoming elections in September.

    Portillo will be released from federal prison in the U.S. in February, having served less than 12 months of his six-year sentence for conspiracy to launder $2.5 million—money he received from the Taiwanese government. 

    With the elections seemingly a straight fight between Manuel Baldizón—who lost to President Otto Pérez Molina in a runoff in 2010—and Alejandro Sinibaldi, former minister of communications in Pérez Molina’s government, Portillo will add an intriguing element to the campaign if he runs.  To win, he will have to break tradition; since 1996, every election has been won by the runner-up in the previous presidential run-off.

    Portillo is a potential vice-presidential candidate, should Edmond Mulet—now the UN Assistant Secretary General for Peacekeeping Operations—find a party to run as its presidential nominee.  In September 2014, Mulet and Edgar Gutiérrez, the former foreign minister and chief of civil intelligence during Portillo’s government, met with Portillo in prison in Colorado and discussed his possible return to politics.

    Read More

    Tags: Guatemala, Alfonso Portillo

  • Costa Rica to Invest $100 Million to Modernize Border Crossings

    February 4, 2015

    by AQ Online

    The Inter-American Development Bank (IDB) approved $100 million dollars for Costa Rica to modernize its border-crossing infrastructure, the Ministry of Finance announced on Tuesday. The plan seeks to bolster trade competitiveness at Costa Rica’s four border crossings with Nicaragua and Panama. In late 2014, Nicaragua completed the construction of a bridge at the Las Tablillas border crossing over the disputed San Juan River.

    Costa Rica also requested a $200 million credit line to back renewable energy, transmission and distribution projects. The energy projects would help mitigate the impact of climate change and promote sustainable economic growth and regional integration through the Mercado Eléctrico Regional (Central Regional Electricity Market—MER).

    “In close coordination with the Bank, after reviewing the progress of all running programs, we established the most important projects for 2015, which we defined in accordance with the priorities established by the government in the National Development Plan,” said Minister of Finance Helio Fallas.

    The IDB will provide an additional $2.9 million in technical cooperation grants for Costa Rica’s social and fiscal growth, and will help formulate the 2015-2018 Country Strategy, a joint initiative between the IDB and the Costa Rican government that will address issues such as macroeconomic stability, public finances, competitiveness, infrastructure and poverty reduction.

    The current $1.1 billion portfolio of programs between Costa Rica and the IDB includes projects in areas of transportation, energy, education, tourism and prevention of violence, among others.

    Out now: click here to view the table of contents for the Winter 2015 issue of AQ

    Tags: Costa Rica, Border Crossing, San Juan River, IDB

  • Paralyzed on Economic Reforms, Venezuela Will Mortgage Citgo

    February 3, 2015

    by Thomas O'Donnell

    Since before the death of Venezuelan President Hugo Chávez in March 2013, his successor, Nicolás Maduro, has remained paralyzed to enact reforms needed to escape the economic dysfunction Chávez left behind.  

    In his latest national address on the economy on January 21, Maduro finally acknowledged the recession and shortages faced by Venezuelan citizens. Yet, he failed again to clearly implement any of the pragmatic economic reforms[1] advocated by Rafael Ramírez, the former minister of energy and former president of Petróleos de Venezuela, S.A. (Petroleum of Venezuela—PDVSA)— such as a de facto bolívar-to-dollar devaluation via unification of Venezuela’s multi-tier foreign exchange (FX) system, measures to attract more foreign financing for oil production, and removing internal price controls, especially for gasoline.  Meanwhile, in September 2014, Ramírez was demoted to foreign minister, and then to UN ambassador several months later.

    According to insiders, Maduro’s failure to implement pragmatic reforms stems principally from two sources. First, within the raging confrontation over economic policy between “pragmatic” and “ideological” factions of the ruling Partido Socialista Unido de Venezuela (United Socialist Party of Venezuela—PSUV), Maduro has found himself both dependent on militant chavistacolectivos,” and simultaneously at risk of these groups turning against him.  These often-armed, barrio-based gangs are aligned with the PSUV’s ideological faction and have no patience for pragmatic economic reforms.  

    Second, Maduro faces low voter approval ratings due to the continued collapse of the Venezuelan economy.  As a result, he clearly fears triggering a popular backlash against the pain that reforms would bring in the near-to-medium term—and the danger that the ideological wing of his party would seize upon any such opportunity to denounce him as a “neoliberal” and push him from power.

    Read More

    Tags: Venezuela, Citgo Petroleum, Nicolás Maduro

  • Argentine Judges Decline to Hear Case against President Fernández de Kirchner

    February 3, 2015

    by AQ Online

    On Monday, Argentine Judges Ariel Lijo and Daniel Rafecas turned down the case of late prosecutor Alberto Nisman against President Cristina Fernández de Kirchner, alleging that the president participated in a cover-up plot surrounding a 1994 terrorist attack in Buenos Aires.

    After investigating the case for over a decade, Prosecutor Nisman presented an indictment for the president and Foreign Minister Héctor Timerman in mid-January for their suspected involvement in attempting to hide Iran’s role in the bombing of the AMIA Jewish Community Center in Buenos Aires in 1994, which killed 85 people. Nisman was found dead in his apartment on January 18, just four days after the indictment. His death, which initially appeared to be a suicide, was declared a “suspicious” death upon further investigation. It is still unclear whether or not the death was a suicide (forced or not) or murder.

    The case has been wrought with controversy. Yesterday, Viviana Fein, the prosecutor overseeing the investigation into Nisman’s death, denied the existence of a document that Clarín reported had been found in Nisman’s trash. The document allegedly called for the arrest of Timerman and President Fernández de Kirchner in June 2014. The government has stated that Nisman’s request to arrest the president only came in January, due to unnamed foreign pressure. However, Fein admitted Tuesday morning that her denial of the detention order’s existence was a mistake.

    Yesterday, Judge Lijo declined to take on the investigation of Nisman’s allegations on technical grounds, claiming that it was not in his jurisdiction. A federal chamber will now appoint a judge to manage the investigation.

     

    Tags: Alberto Nisman, Cristina Fernandez de Kirchner, AMIA bombing

  • Monday Memo: Haitian Immigrants – Venezuelan Currency Losses – Abortion in Chile – Iguala Relatives in Geneva – Puerto Rico’s Economy

    February 2, 2015

    by AQ Online

    Likely top stories this week: the deadline passes for children of undocumented immigrants to apply for legal status in the Dominican Republic; U.S. companies stand to lose billions of dollars in Venezuelan currency losses; Michelle Bachelet moves to end Chile’s abortion ban; relatives of Mexico’s 43 missing students meet with UN officials in Geneva; Puerto Rico’s economy continues to suffer.

    Children of Immigrants to Lose Legal Status in the Dominican Republic: A deadline for the children of undocumented immigrants in the Dominican Republic to register for legal status expired on February 1 at midnight, potentially leaving some 200,000 people stateless—most of them of Haitian descent. The deadline was part of a May 2014 law designed to normalize the status of the children of undocumented immigrants in the D.R. after a September 2013 court ruling revoked the citizenship of Dominican-born children of undocumented immigrants, sparking an international outcry. Thousands of people affected by the law formed long lines to register themselves in the past weeks, but it is unclear if the government will extend the deadline. Human rights groups have harshly criticized the government’s failure to adequately publicize information about the law, and so far, only 5 percent of the estimated 110,000 people eligible to apply for legal status have been able to do so. Meanwhile, the government of the Bahamas has also introduced strict new requirements that have disproportionately affected Haitian immigrants and their children.

    U.S. Companies Losing Billions in Venezuelan Currency: At least 40 U.S. member of the S&P 500, including General Motors and Merck & Co Inc., stand to lose billions of dollars in Venezuelan currency losses, a Reuters analysis shows. The American automotive and pharmaceutical giants together have at least $11 billion in assets in Venezuelan bolivars. Companies like Clorox have already exited the South American nation due to continued devaluation, insecurity and unfavorable conditions. While the official exchange rate is 6.3 bolivars to the dollar—with government-set rates SICAD 1 and SICAD 2 at 12 and 50 bolivars to the dollar, respectively—the black market rate registered at 190 bolivars to the dollar on Sunday.

    Bachelet Proposes End to Total Abortion Ban in Chile: Chilean President Michelle Bachelet announced on Saturday that she would submit a bill to Congress that would end Chile’s total ban on abortions. The bill would permit abortions up to the 12th week of pregnancy in the cases of rape, a life-threatening pregnancy, or if the fetus will not survive—and abortions would be permitted until the 18th week for girls aged 14 and younger. Chile’s total ban on abortions began in 1989, a legacy of the 1973-1990 military dictatorship of Augusto Pinochet. The anti-abortion lobby and Catholic Church remain a powerful influence in Chile, but some 15,000 to 160,000 abortions are still carried out in the country each year. “Facts have shown that the absolute criminalization of abortion has not stopped the practice,” Bachelet said. Chile, along with El Salvador, the Dominican Republic, Nicaragua, Honduras, Haiti, and Suriname are the only countries in Latin America that outlaw abortion under any circumstance.

    Relatives of Mexico’s Missing Students Rally in Geneva: Parents and relatives of the 43 Mexican students who went missing after a protest in Iguala, Mexico in September are in Geneva this week meeting with the United Nations Enforced Disappearances Committee. To date, no one has been tried in the case of the missing students. The parents reject Mexican officials’ claim that the students were killed and burned in a landfill by members of the Guerreros Unidos gang, asserting that the government is holding the students illegally. At least 23,721 people are missing in Mexico, according to official figures. The Mexican National Human Rights Commission will present a report to the UN today, requesting that the Enforced Disappearances Committee make recommendations to Mexico’s government.

    Puerto Rico Enters Eighth Year of Recession: The economically battered U.S. commonwealth saw its economic activity drop 1.4 percent between December 2013 and December 2014. Puerto Rico is in its eighth straight year of recession, with over $73 billion in public debt. Puerto Rican government officials met with the Federal Reserve Bank of New York in January to discuss strategies for strengthening the territory’s economy. The Puerto Rican House approved the borrowing of an additional $225 million for public works last Thursday.

    Tags: Venezuelan economy, Dominican Republic-Haiti relations, Abortion in Latin America

  • Panamanian Supreme Court Approves Corruption Inquiry against Martinelli

    January 30, 2015

    by AQ Online

    Panama’s Supreme Court voted unanimously on Wednesday to appoint a special prosecutor to investigate corruption claims against former president Ricardo Martinelli.

    Martinelli has been accused by his erstwhile political ally and former head of the Programa de Ayuda Nacional  (National Assistance Program—PAN), Giacomo Tamburelli, of ordering the inflation of government contracts worth $45 million for  the purchase of dehydrated food.  Tamburelli, who is under house arrest, said Martinelli had ordered him to inflate contracts while he was head of PAN.

    Meanwhile, Martinelli—who was attending a session of the Parlamento Centroamericano (Central American Parliament—Parlacen) in Guatemala—denied any wrong-doing. “I have not done anything,” he said.

    As a member of Parlacen, Martinelli is invested with diplomatic immunity. According to the Spanish daily El País, members of Panama’s National Assembly have called on Martinelli to renounce his immunity. The current president, Juan Carlos Varela, a former ally of Martinelli who broke with the ex-president and accused the administration of corruption before running for the presidency on a strong anti-corruption message, said, “An ex-president must face justice and be held accountable if he didn’t do things right. […] I am a person who respects democracy, human rights, freedom of expression, and everyone is responsible for their actions. I’ll answer for mine; let the ex-president answer for his.”

    Martinelli has not said whether or not he will relinquish immunity or return to Panama. “I will make that decision in the future, but I am not going to go for a trial arranged by Mr. Varela,” he said.

    Tags: Martinelli, corruption, Parlacen

  • Chilean Legislators Approve Same-Sex Civil Unions

    January 29, 2015

    by AQ Online

    After a four-year debate, the Chilean Senate has passed a bill allowing for same-sex unions. The law passed on Wednesday with a vote of 25 to 6, with three abstentions.

    Under the new law, called the Acuerdo de Unión Civil (Civil Union Accord—AUC), same-sex couples are afforded many of the rights of married couples, including health, inheritance and pension rights. The law was originally proposed under the Sebastián Piñera administration, coined the Acuerdo de Vida en Pareja (Couple Life Agreement—AVP),  and has been advocated for publically by President Michelle Bachelet, who promised to pass the AUC during her latest presidential campaign.

    “We’re very happy that the State recognizes, for the first time, that same-sex couples also constitute a family and deserve protection,” said Luis Larraín, president of the LGBT rights group Fundación Iguales.

    While the bill has now passed the Senate and the House of Representatives (on a vote of 78-9), it still needs to be approved by President Michelle Bachelet and then will go to the Constitutional Court. Upon its final approval, Chile will be one of three South American countries to allow same-sex civil unions, along with Colombia and Ecuador. Brazil, Argentina and Uruguay allow same-sex marriage.

    Taking the next step to same-sex marriage remains unlikely in Chile, which has historically conservative laws based on Roman Catholic ideology. Divorce was illegal until 2004, and Chile is still one of the few countries in Latin America where abortion for any reason is illegal.

    For more on social inclusion in the Americas and to see how each country ranks in LGBT rights, check out the 2014 AQ Social Inclusion Index.

    Tags: Civil Unions, Michelle Bachelet, Chile

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