Monday Memo: Mercosur Considers Ecuador and Bolivia – Peña Nieto in the Presidency – Colombia, FARC Continue Talks – Peru, Chile at The Hague – and more
December 3, 2012
Top stories this week are likely to include: Mercosur convenes; first week of Enrique Peña Nieto’s presidency; FARC peace negotiations resume; Peru, Chile dispute their border at The Hague; and Rousseff’s oil royalties veto makes waves in Brazil.
Mercosur Considers Ecuador and Bolivia: When Mercosur’s member nations convene on Friday in Brasilia, they will consider upgrading Bolivia and Ecuador—currently associate members—to full membership. Brazilian Foreign Minister Antonio Patriota cites a desire to deepen South American integration. AQ Editor-in-Chief Christopher Sabatini notes that “with each new addition to Mercosur the original intent of the customs union is becoming diluted. The additions may be economic benefits to Brazil and serve a broader political end, but with Venezuela and now potentially Bolivia and Ecuador the task of coordinating a common external tariff and ensuring that monetary policy doesn't interfere with internal trade is nearly impossible.”
Peña Nieto in the Presidency: After announcing his cabinet on Friday and transitioning into power the following day, Mexican President Enrique Peña Nieto undergoes his first full week in Mexico’s highest office. Yesterday, the main domestic political parties announced the Pacto por México (Pact for Mexico) that outlines desired political reforms for Peña Nieto’s term. The reforms center on three areas: strengthening the state; economic and political modernization; and expansion of social rights. As AQ Senior Editor Jason Marczak observes, “the show of unity with the joint signing of the Pacto por México is an important accomplishment for Peña Nieto but the specifics of how to implement these reforms will be the real challenge especially with PRD legislators already threatening to block them.”
Peru, Chile at The Hague: Beginning today, the International Court of Justice will hear a lawsuit by Peru brought against Chile over an unclear maritime border. In the lead-up, however, both Chilean President Sebastián Piñera and his Peruvian counterpart Ollanta Humala have discouraged their respective citizens from being belligerently nationalistic. Piñera wrote against “exacerbated nationalism, which poisons the soul of the people,” while Humala urged for both countries to consider the outcome of the lawsuit as “the end point of a dispute between brother countries.”
Colombia, FARC Continue Talks: Both sides will resume peace negotiations in Havana on Wednesday. The Colombian government’s chief negotiator, Humberto de la Calle, has stressed “a stable and enduring peace” as the desired outcome of the talks; President Juan Manuel Santos recently announced that he has designated November 2013 as the deadline for an agreement.
Impact of Dilma’s Partial Veto: Brazilian President Dilma Rousseff was absent at last Friday’s Unasur meeting in Lima due to “domestic engagements.” The issue in question was whether she would sign into law a controversial law on oil royalties, which would spread the nation’s resource wealth to non-producing states. According to Reuters, Dilma’s veto “changes the bill so that producer states continue to receive royalties on output from existing oil concessions. She signed most of the rest of the bill passed [in early November] by Congress, redistributing royalties from all future oil concessions so that non-producing states get a greater share.” The oil-producing states had threatened to take their case to the Supreme Court, which would have dragged out the case amid Brazil’s preparations for the 2014 and 2016 sporting mega-events. Pay attention this week to see further reactions within Brazil to Dilma’s partial veto.
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