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Monday Memo: Brazil Elections – Uruguay Elections – Citgo Petroleum – Protests in Haiti – Chiquita

This week’s likely top stories: Brazil’s President Dilma Rousseff is re-elected; Uruguayan elections move to a second round; Venezuela scraps the sale of Citgo Petroleum; Haitians protest a lack of elections; a Brazilian consortium acquires Chiquita.

Dilma Rousseff Re-elected President of Brazil: Brazilian President Dilma Rousseff was narrowly re-elected on Sunday in a runoff election that will extend the ruling Partido dos Trabalhadores (Workers’ Party—PT) government’s mandate until 2019. Rousseff captured 51.6 percent of the vote, defeating challenger Aécio Neves of the Partido da Social Democracia (Brazilian Social Democracy Party—PSDB), who received 48.4 percent after nearly all ballots were counted. Rousseff’s victory marks the fourth straight presidential victory of the PT, although the party has recently come under public scrutiny due to a kickback scandal involving state oil company Petrobras, and has been criticized for an underperforming economy. In her victory speech, Rousseff acknowledged the challenges ahead, saying, “I want to be a much better president than I have been until now.”

Uruguayan Election Goes to Runoff: After Sunday’s election failed to deliver an outright majority to any presidential candidate, Uruguayans will return to the polls on November 30 to make a final decision between former President Tabaré Vásquez of the ruling Frente Amplio (Broad Front—FA) and Luis Lacalle Pou of the Partido Nacional (National Party). Pedro Bordaberry of the right-wing Partido Colorado (Colorado Party) endorsed Lacalle Pou shortly after the results came in, forming a conservative alliance to challenge Vásquez in the next round of voting. Also at stake in the election is the fate of Uruguay’s historic marijuana legislation, passed by outgoing President José “Pepe” Mujica, which legalizes the production, distribution and sale of marijuana to Uruguayan adults. The FA has governed Uruguay since 2005, with Vázquez serving as president from 2005-2010.

Venezuela Fails to Sell Citgo Petroleum: Venezuela will not sell the state oil company Petroleos de Venezuela SA (PDVSA)’s U.S.-based refining subsidiary Citgo Petroleum Corp, the government announced Sunday. Strapped for cash yet unable to find a buyer for Citgo, PDVSA needed the estimated $8 billion to $10 billion from the sale of Citgo to help offset falling oil prices, scheduled debt payments to China and Russia, and the country’s economic recession. In a memo to its clients this month, Barclays Plc predicted that Venezuela would be forced to adjust its economic policies, and could consider curbing subsidized oil to PetroCaribe members, devaluing the bolivar, and renegotiating loans from China. Another possible reform package could include hiking domestic gasoline prices

Protestors in Port-au-Prince Demand a Vote: Haitian protestors armed with voting cards marched through the downtown slum of Bel Air in Port-au-Prince on Sunday to demand a chance to vote in legislative and local elections overdue since 2011. Although President Michel Martelly called for elections earlier this year, a stalemate over electoral law between the government and six opposition senators has left voters unable to exercise their basic sovereignty. While Prime Minister Laurent Lamothe accuses  opposition politicians of seeking to extend their time in office without election, the opposition candidates say they are defending the Haitian Constitution against an administration seeking to remain in power by decree. One of these candidates, Sen. Moise Jean Charles, led the protesters through the streets of the capital on horseback. As the terms of 10 senators will expire in mid-January, the Haitian government is under pressure to organize a vote on Martelly’s electoral law before Parliament dissolves in early 2015.

Brazil’s Cutrale-Safra Purchases Chiquita Brands: The Brazilian Cutrale-Safra consortium agreed on Monday to acquire U.S. banana behemoth Chiquita Brands International Inc., formerly United Fruit, for about $682 million. The Cutrale Group—owned by “Orange King” Jose Luis Cutrale—and Safra Group—a network of companies controlled by Brazilian banker Joseph Safra—snagged Chiquita for $14.50 per share. The takeover was approved only three days after Chiquita shareholders voted to reject the company’s proposed merger with Irish banana producer Fyffes Plc., which would have created the world’s largest banana seller. Safra, who is seeking to diversify his $16 billion portfolio, and Cutrale, who is looking to expand the family business because of a global decline in orange juice consumption, overcame three previous failed attempts to acquire Chiquita. The transaction is expected to close by early 2015, after regulatory approvals have been made.

Any opinions expressed in this piece do not necessarily reflect those of Americas Quarterly or its publishers.
Tags: Dilma Rousseff, Citgo Petroleum, Chiquita

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