Beyond seeking to deepen trade links with Asia, the leaders of Chile, Peru and Mexico—the three Latin American member states of the Asia-Pacific Economic Cooperation (APEC)—used their time in Beijing to push for greater Chinese investment in their countries. The three leaders also backed a Chinese-led proposal for a Free Trade Area of the Asia Pacific (FTAAP).
Peruvian President and Ollanta Humala and Chilean President Michelle Bachelet met with President Xi separately on Wednesday. In his meeting with Ollanta, the Chinese leader is reported to have proposed a bilateral trade agreement with Peru. The two leaders also reportedly signed a memorandum supporting the creation of a trilateral group with Brazil to plan the construction of a rail link between Peru and Brazil.
While Bachelet left China empty handed in terms of signed agreements, she made her objectives clear. “We have a high level of trade, but we have not made any progress in investments,” she said at a meeting with Chinese Prime Minister Li Keqiang on Monday. However, both Xi and Bachelet expressed confidence that the establishment of a Chilean branch of the China Construction Bank next year will spur future Chinese investment in Chile.
In a sign that the relationship between China and Mexico may not have been seriously damaged by Mexico’s recent cancellation of a bid awarded to a Chinese consortium for the construction of a high-speed rail link, the Chinese leader and Mexican President Enrique Peña Nieto signed 14 separate agreements and investment contracts at a meeting yesterday. Peña Nieto also announced plans to create a joint fund between three Chinese companies and the Mexican oil company Pemex, with the goal of raising up to US $5 billion for energy projects in Mexico.
In a pilot pain prevention program, the municipality of La Florida planted the first marijuana seeds for medical use in Chile on Wednesday. Once the marijuana plants have been cultivated, oil from the plants will be used to treat 200 selected patients as part of a clinical study on the effect of cannabis as a pain medication, administered by the Fundación Daya (Daya Foundation), a nonprofit dedicated to alleviating human suffering.
Daya Foundation employees planted a total of 850 seeds of the Durga Mata II, Wappa, IceCream and Pandora varieties imported from the Netherlands, which will grow on a plantation surrounded by electric and barbed wire fences. The plants will be heavily guarded to stave off any potential thieves.
The Chilean Ministry of Agriculture approved the cultivation of medical marijuana in September, and the harvest will begin in April of 2015, with treatments using cannabis oil scheduled to take place in May.
According to the United Nations, Chile is the third largest consumer of marijuana in South America, but while fellow South-American country Uruguay recently become the first country in the world to legalize the cultivation, production and state-run market of marijuana, the Chilean government has no plans to legalize the plant beyond medical use. “This is about providing people who are suffering from cancer with a natural, healthier and cheaper treatment for their pain,” said Rodolfo Carter, mayor of La Florida.
Both Carter and the Chilean actress Ana María Gazmuri, president of the Fundación Daya, were present for the planting of the first seeds.
Despite government support for the cannabis program, many in Chile’s medical community disapprove of the use of marijuana for medicinal use. Jorge Las Heras, a representative of the Chilean Medical Society, spoke out against the project on Wednesday, saying that there are “sufficient therapeutic alternatives” to marijuana, and that cannabis oil can have negative side effects, such as “convulsions, nausea and other conditions that have even led to death.”
Chilean police arrested three people early yesterday morning in connection to a bomb attack carried out in a Santiago metro station last week. In a statement made after the arrest, Southern Metropolitan Regional Attorney Raúl Guzmán, who is leading the prosecution, said, “We hope that they will be sentenced for these extremely serious acts.” The attack injured 14 and elicited a strong response from the Chilean government, which declared the bombing a “terrorist act” and vowed to charge suspects under the country’s Anti-Terrorist Law.
Guzmán has claimed that authorities have scientific evidence linking the suspects to the bombing. Nevertheless, the authorities have not ruled out that more people may have been involved in the attacks. “We are carrying out an investigation and will follow all leads in order to determine whether there are others who are responsible for these acts,” Guzmán said.
Authorities have not released the suspects’ identities. However, Interior and Security Minister Rodrigo Peñailillo indicated that two men and a woman had been detained. According to Attorney General Sabas Chahuán, they are members of an “enclosed anarchist cell.” Only one of the suspects is believed to have carried out the attack, while the other two are being held as accomplices. The government alleges that the suspects are also connected to another Santiago subway bombing carried out in July. That attack did not cause any injuries.
The Chilean branch of a Greece-based anarchist organization known as Synomosía Pyrínon Tis Fotiás (Conspiracy of Cells of Fire or Conspiración de células del fuego—CCF) has allegedly claimed responsibility for both the July and September bombings. In a statement published online, the group attempted to deflect responsibility for the attack’s casualties onto the police, claiming that the group alerted authorities about the bomb ten minutes before it detonated. The communiqué goes on to state that the CCF did not intend to injure “consumers and/or workers” but rather sought to target “power’s structures, property, and thugs.”
Just days after a bomb exploded in a Santiago metro station, Chile commemorated what is perhaps the most divisive event in the country’s modern history—the September 11, 1973 military coup that interrupted Chile’s democracy, and ushered in the dictatorship of Augusto Pinochet.
In a speech at the presidential palace, La Moneda, on Thursday, President Michelle Bachelet linked the two events, saying that “there is no room for violence and fear” in Chile. Calling democracy the country’s “most precious asset,” Bachelet went on to declare that “we will not allow the culture of respect, of rights and of peace that we are celebrating today, which belongs to all of us, to be trampled, abused or scorned by anyone.”
The day, however, was marked by violence and signs of general unease. According to local reports, confrontations between security forces and protesters left 10 police injured and led to the arrest of at least 30 individuals. Police sources also reported receiving 35 false bomb alerts over the course of day. It is unclear who is responsible for the false alerts, or whether they are related to Monday’s bombing. Authorities are still investigating Monday’s attack, though government officials have blamed “terrorists.”
The government also announced yesterday that it intends to repeal the country’s 1978 Amnesty Decree Law. The law covers the period from 1973-1978, and critics say that it shields members of the Pinochet regime accused of human rights abuses from prosecution. The effort to repeal the law was announced by Justice Minister José Antonio Gómez. In an unrelated event, a national legislator, Rosauro Martínez, was arrested in connection to the death of three Movimiento de Izquierda Revolucionaria (Movement of the Revolutionary Left—MIR) activists in 1981.
An explosion at a fast food restaurant in Santiago, Chile on Monday injured 14 people and has led Chilean authorities to investigate a potential terrorist attack. No one has claimed responsibility for the blast, which occurred at a mini mall next to the Escuela Militar metro station in the residential Las Condes neighborhood. The station remained closed while authorities investigated, although the metro continued to run normally.
Government spokesman Álvaro Elizalde condemned the incident as a “terrorist act” and affirmed that the government will invoke harsh anti-terrorism laws, which allow for tougher sentences, to bring those responsible to justice. So far in 2014, there have been 30 bombings or attempted bombings in Santiago. In July, another explosion occurred in the metro, though no bystanders were hurt in the incident.
With Monday’s injuries, citizens will be looking to President Michelle Bachelet for action regarding the increase in bombings in recent years. Bachelet denounced the attacks as “cowardly,” but claimed that Chile is still a safe country.
This week, Chile will mark the 41st anniversary of the 1973 military coup d’état that overthrew socialist President Salvador Allende and installed a 17 year-long military government in which thousands of political dissidents were disappeared and killed. The week of September 11 in Chile is often a time of increased protests and violence in the country.
This week’s likely top stories: Barack Obama delays executive action on immigration; a former Petrobras director names 40 politicians in scandal; former Salvadoran President Flores turns himself in; private equity fundraising in Latin America this year could reach $8 billion; Chileans remember September 11, 1973.
Immigration reform stalled: U.S. President Barack Obama’s promise to use his executive authority to reform immigration has hit a roadblock in the run-up to midterm elections, angering immigrant rights activists who hoped he would take action to ease deportations after Congress’ August recess. Polls conducted this summer revealed that voters in states like Arkansas and Iowa were overwhelmingly opposed to executive action on immigration, and a July survey by the Pew Research Center for People and the Press showed that a majority of respondents believed Obama had mishandled the surge of unaccompanied minors at the border this summer. A White House official said this weekend that the president will take action on immigration at the end of the year.
Petrobras corruption scandal: Paulo Roberto Costa—a former director of Brazilian state-run oil company Petróleo Brasileiro S.A. (Petrobras) who was arrested in 2013 for corruption—alleged that more than 40 Brazilian politicians received commissions for contracts signed with Petrobras between 2004 and 2012. Brazilian media revealed on Saturday that most of the individuals Costa named were members of the ruling Partido dos Trabalhadores (Workers’ Party—PT), further complicating President Dilma Rousseff’s re-election bid on October 5. Costa struck a plea deal with prosecutors before naming the politicians. Rousseff said Saturday that she would await official information to “take all appropriate measures” to investigate the scandal.
El Salvador’s Francisco Flores under house arrest: Former Salvadoran President Francisco Flores, of the ARENA party, turned himself in to Salvadoran authorities on Friday, four months after a warrant for his arrest was issued in May. Flores was accused of misappropriating $15 million during his 1999-2004 presidential term, funds allegedly provided by Taiwan to help with reconstruction efforts after two earthquakes, as well as to fight drug trafficking and crime. On Friday, Flores—who had been missing for months—said he had turned himself in “voluntarily and out of respect for the law.” He is currently under house arrest and denies the charges against him.
Private equity push in Latin America: Private equity and venture capital fundraising in Latin America has already reached $3.5 billion in the first half of 2014, indicating that year-end totals could reach as high as $8 billion, according to new data from the Latin American Private Equity & Venture Capital Association (LAVCA). In 2011, a record $10.27 billion was raised, and in 2013, investments reached a six-year high—but have decreased by 10 percent for the same period this year. According to LAVCA, information technology attracted 30 percent of total investments, followed by healthcare.
Chileans march in memory of September 11: Thousands of Chileans marched through Santiago on Sunday to commemorate the anniversary of the September 11, 1973 military coup that overthrew President Salvador Allende and led to the death or disappearance of some 3,000 people. The march was largely peaceful, according to Chilean police, although four journalists were injured when some of the protesters threw objects at the police. More marches are planned for Thursday, September 11.
On Wednesday morning, Chilean President Michelle Bachelet pledged $510 million for the restoration of Valparaiso after large wildfires devastated parts of the city in April. The blazes lasted several days and killed 15 people and destroyed or damaged at least 15,000 homes in the port city, which was named a UNESCO World Heritage Site in 2003.
The money will be disbursed over eight years and will be divided into three tiers—the city overall, neighborhoods and individual homes. Destroyed homes will receive almost $100 million, with the rest of the money being put towards urban development, cultural spaces, public transportation and city infrastructure to reinforce and protect inhabitants from future fires, including safety devices such as fire alarms and sprinklers. Seventy-one percent of the restoration and construction is expected to be completed by March 2018.
President Bachelet said that the plan’s benefits would go beyond Valparaiso and is meant to reactivate the Chilean economy. “This plan is about more than normalizing life in the city; it is a commitment to change the urban development of the country,” she said.
While the plan will help the 2,600 families affected by the fire, it is facing criticism for being too narrow in scope. Renzo Trisotti, deputy of the Unión Demócrata Independiente (Independent Democratic Union—UDI) party of Chile’s Tarapacá region expressed his concern with the omission of the northern regions of Chile, also affected by natural disasters earlier this year. “Five months after the two earthquakes affected the northern regions, there are still families living and tents and there is no plan for reconstruction,” he said.
Thousands of students marched in the streets of Santiago and other cities throughout Chile yesterday to express their impatience with the lack of progress made on education reform—a key promise made by Chilean President Michelle Bachelet after she was reelected in 2013. The Universidad de Chile’s (University of Chile) student organization Federación de Estudiantes de la Universidad de Chile (University of Chile Student Federation—FECh) estimated that 80,000 students marched in Santiago yesterday, while the government put the number at 25,000.
FECh President Melissa Sepúlveda addressed the protesters at the march, warning that, “This is a direct call to the Ministry of Education, so that the agreements from the Right [parties] are not included in the Education Reform [bill].” After Sepúlveda and other student leaders had finished speaking, dozens of mostly young encapuchados, hooded delinquents, destroyed traffic lights, burned dumpsters, threw sticks and rocks toward the Carabineros, the Chilean police force. The Carabineros responded by spraying the protestors with water, shooting tear gas at them, and removing those occupying the Faculty of Law at the Universidad de Chile. According to Observadores Derechos Humanos Chile (Human Rights Observers in Chile), there were 17 arrests.
Bachelet sent the first part of her education reform to congress in May, eliminating subsidies for for-profit schools and ending selective entrance policies, but the bill is still being debated in the lower house. Meanwhile, a second round of reforms that would make university education free will be sent to congress later this year. FECh leaders expressed their dissatisfaction with the exclusion of students from the deliberations, and voiced concern over “deals behind closed doors,” and “agreements that would benefit education businesses.”
Eight masked gunmen disguised as airport workers robbed an armored money transportation truck at Arturo Merino Benítez International Airport in Santiago on Tuesday, stealing over 6 billion pesos ($10 million)—the largest robbery in Chile’s history. The truck belonged to the U.S. security firm Brinks, and the money was due to be a loaded onto a flight for delivery at various banks and mining sites in Copiapó and Antofagasta in the north of Chile.
The thieves fled the scene in two vans headed in opposite directors and scattered nails in their wake to thwart potential pursuers, prompting Chilean Vice President Rodrigo Peñailillo to say that the gang was “obviously well organized.” Meanwhile, Chilean Sub-Secretary of the Interior Mahmud Aleuy Peña y Lillo called the security at the airport, which is handled by civil aviation authorities, “an embarrassment.”
Tuesday’s robbery tops a 2006 heist where thieves stole $1.6 million from a similar Brinks truck at the same airport terminal. In that case, the assailants were apprehended by police and are currently serving time in prison.
This week’s likely top stories: President Juan Manuel Santos announces new ministers; Venezuela and Colombia crack down on smuggling; Codelco’s CEO has new plans for Chuquicamata Mine; Bolivia deports an Argentine accused of crimes against humanity; a fire at a Pemex refinery kills at least four people.
President Santos to announce new Cabinet: Colombian President Juan Manuel Santos is expected to announce new Cabinet ministers today as he launches his second term in office. Of the 16 Cabinet positions, Colombian Defense Minister Juan Carlos Pinzón, Minister of Finance Mauricio Cárdenas, and Minister of Foreign Relations María Ángela Holguín will retain their titles, while former Minister of the Interior Aurelio Iragorri will now be Minister of Agriculture, and Juan Fernando Cristo, former president of the Senate, will take Iragorri’s place at the ministry of the interior. At his inauguration address last week, Santos said that in addition to signing a peace agreement with the Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia—FARC), he will focus on education and equality as pillars of his 2014-2018 presidential term.
Venezuela to shut its border with Colombia at night: Effective today, Venezuelan President Nicolás Maduro and Colombian President Juan Manuel Santos have agreed to close the Colombia-Venezuela border between the hours of 10 pm and 5 am each night in an effort to reduce smuggling. Heavily subsidized Venezuelan goods—such as food and fuel—can be sold at much higher prices in Colombia, causing tax losses for the state and profits for drug gangs and guerrilla groups. So far this year, the Venezuelan government has seized 21,000 tons of food and 40 million liters of fuel that were destined for Colombia. Maduro and Santos agreed to the measures on August 1 at a summit in Colombia.
New Codelco CEO says open-pit mine must go underground: Nelson Pizarro, the new CEO of Chile’s state-owned copper mining company Codelco, said on Sunday that Chile’s open-pit Chuquicamata Mine should be transformed into a subterranean mine to make it profitable. Pizarro, who was named Codelco’s CEO at the end of July and will officially take over on September 1, faces opposition from the miners’ unions, who say that the plan to revamp the mine will cause many to lose their jobs because many are not trained to work underground. Pizarro replied that “if the unions don’t do their part, there will be no future for Codelco.” Codelco is currently the largest producer of copper in the world.
Bolivia deports Argentine accused of Dirty War crimes: Jorge Horacio Páez Senestrari, a former infantry captain during Argentina’s 1976-1983 military dictatorship, has been deported back to Argentina after he was captured on Friday in Santa Cruz, Bolivia. Páez was accused of committing crimes against humanity in the Argentine province of Santa Cruz during the dictatorship. He had been temporarily released from prison in San Juan in 2011 to await his trial, but after he failed to attend his hearing, local police and Interpol issued an international alert for his arrest. Now that he has returned to Argentina, Páez’s trial is expected to resume.
Pemex refinery accident in Mexico: A fire that broke out on Friday at a Petróleos Mexicanos (Pemex) oil refinery in Ciudad Madero, Mexico, had killed at least four people as of Sunday night. Seven refinery workers were still hospitalized, according to Pemex officials. The latest explosion happened as workers performed maintenance on an empty petroleum coke tank, which was used to hold a solid carbon by-product of the oil refining process. On July 24, a different fire had broken out at the refinery, injuring 23 workers. Last week, the Mexican government passed secondary legislation to open its energy sector to private and foreign investment for the first time in over 70 years, in an effort to increase production and attract foreign expertise and technology.
June 1: This AQ-Efecto Naím segment looks at sustainable cities in the hemisphere.