April 16, 2015
On Wednesday, Colombian President Juan Manuel Santos ordered the resumed bombing of the Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia—FARC) after an early morning attack by the rebel group killed at least 10 soldiers and left 17 injured. In the deadliest clash since the FARC announced a unilateral cease fire nearly four months ago, guerillas ambushed the soldiers with grenades and firearms in the rural southwestern province of Cauca.
In a televised press conference, Santos described the attack as “deliberate” and said it “implies a clear rupture of the promise of a unilateral ceasefire.” Santos’ order to resume bombing suspends the truce he made in March in response to the FARC’s adherence to its cease fire.
The killing of the soldiers is a significant setback to the ongoing peace talks between the government and the FARC that, after more than two years, seemed to be making conclusive progress. Since the FARC’s December announcement of a unilateral cease fire and Santos’ subsequent ban on air raids on FARC camps, the FARC had agreed to end its recruitment of child soldiers and the two groups recently agreed to work together on a historic landmine removal project. The group had also reached agreements with the government on land reform, political participation of ex-rebels, and joint cooperation against drug trafficking.
March 13, 2015
Cada vez que nuevos anuncios emergen de la mesa de conversaciones que el gobierno mantiene con las FARC en Cuba, el presidente Juan Manuel Santos califica el proceso de ‘irreversible’, ‘cerca del fin’ o de ingresar a ‘una etapa definitiva’. Cierto es que tras 33 rondas de conversaciones y pese al hermetismo de las primeras, mucho se ha avanzado en temas duros como el reconocimiento de las víctimas y las responsabilidades en el negocio del narcotráfico que alimenta el conflicto.
Ahora el cese de bombardeos por un mes contra los campamentos de las FARC, decidido unilateralmente por el presidente Juan Manuel Santos, ha levantado una polvareda de opiniones por cuanto para unos, como el procurador general, es un cese bilateral disfrazado y viola la constitución, y para el gobierno, es una respuesta al cese al fuego decretado por las FARC desde diciembre pasado.
No menos revelador resulta el hecho, como lo publicó la Revista Semana, de que el Ejército haya reducido sustancialmente sus actividades militares, pero no solo desde el comienzo de las negociaciones sino incluso desde los años en que el ex presidente Álvaro Uribe, enconado contradictor del proceso, dirigía el país con sus políticas de mano dura y seguridad democrática . En suma, es una realidad que el conflicto ha ido desescalando en el terreno militar, y que aunque mantener arriba la moral de las tropas, es una muletilla bastante popular en el cuerpo castrense, por lo cual sin su participación pacífica, no hay negociación que avance.
Es imposible hablar de un cese al fuego bilateral si no se hubieran sentado cinco generales activos y un almirante en la Subcomisión Técnica del Fin del Conflicto, a discutir el tema. Si soldados y guerrilleros no fueran parte del equipo que se conformó para la tarea titánica de desactivar las minas antipersonales regadas por la geografía de 688 municipios del país, no habría forma de aliviar a estas comunidades.
Monday Memo: Colombia Peace Talks—Peru-Chile Spying—Citigroup Sale—Puerto Rico VAT—Chilean Corruption
March 9, 2015
This week’s likely top stories: Colombia and FARC agree to clear landmines; Peru recalls ambassador to Chile; Citigroup to sell Central American entities; Puerto Rico debates possible VAT; Chilean officials charged with corruption.
Colombia and FARC to Remove Landmines: The Colombian and the FARC guerrilla group reached an agreement on Saturday to work together to clear the country of landmines and explosive devices. Their joint statement was read by Cuba and Norway, the two guarantor countries for the peace process, and the Norwegian People’s Aid (NPA) will assist in the de-mining efforts. This weekend’s agreement marked important progress in the negotiations; for the first time, high-level military commanders were present, and the removal of mines and explosives is a major step toward disarmament. Over 11,000 Colombians have been hurt or killed by landmines in the last 15 years.
Peru Recalls Ambassador to Chile: On Saturday, Peru recalled its ambassador to Chile over spying accusations. Last month, the Peruvian government announced that three Peruvian naval employees were being investigated for allegedly disclosing military information to Chile. On February 20, Peruvian President Ollanta Humala sent Chile a diplomatic note requesting an answer regarding the claims, although Peru has not yet received a response. Chilean Foreign Minister Heraldo Muñoz stated that Chile “does not promote or accept acts of espionage in other states or its own territory.” Peruvian Prime Minister Ana Jara claimed that Peru will not send its ambassador back to Chile until the issue is addressed. Chile and Peru have long harbored tensions over their borders.
Citigroup Inc. to Sell Central American Operations: Citigroup Inc. may soon sell its Central American retail units to Banco Popular Español S.A., which is based in Madrid, Spain. According to a source’s comments on Saturday, Citigroup aims to sell its retail operations in Costa Rica, El Salvador, Guatemala, Nicaragua, and Panama in an effort to leave markets yielding low revenues and to streamline operations. Citigroup hopes to sell for $1.5 billion. The deal is not yet finalized and is subject to change. Spokesmen for both banks declined comment on the matter.
Puerto Rico Proposes Plan to Combat Tax Evasion: Puerto Rican Governor Alejandro García Padilla is supporting a new plan to impose a 16 percent value-added tax (VAT), in an effort to reduce the territory’s $73 billion public debt. The plan, which is currently being considered by lawmakers, would replace Puerto Rico’s current tax rate of 7 percent and would curb tax evasion on the island. Pending approval, producers would pay the VAT on raw materials, and include it in the price given to retailers, and the VAT would eventually be paid by consumers. Charging the VAT at each stage in the sales process would ensure proper collection. Currently, Puerto Rico’s informal economy is estimated to be worth $16 billion, a figure representing approximately 25 percent of the GDP. García Padilla is expected to make an announcement regarding the plan today.
Chilean Corruption Scandal Racks Opposition Party: After court hearings last week, a tax auditor, a former government official and four executives from the Penta Group, one of Chile’s largest financial groups, were jailed on Saturday for tax fraud, bribery and money laundering. Ten defendants were implicated in the scandal, including two tax officials and two politicians from the Unión Demócrata Independiente (Independent Democratic Union—UDI) opposition party. In a public declaration on Monday, La Superintendencia de Bancos e Instituciones Financieras (Superintendency of Banks and Financial Institutions—SBIF) announced that the Penta executives, including owners Carlos Délano y Carlos Eugenio Lavín, would be unable to maintain their positions as shareholders in the company.
February 13, 2015
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.
January 8, 2015
In a video statement released yesterday, Colombia’s Ejercito de Liberación Nacional (National Liberation Army—ELN) reaffirmed its willingness to join formalized peace talks with the Colombian government and announced that it would consider a ceasefire.
In the video, ELN leader Nicolás Rodríguez said, “The government […] has called the insurgents to the table. We will attend this dialogue to examine the will of the government and the Colombian State. If we conclude that arms are no longer necessary, we will consider quitting using them.”
For two years, the Colombian government has been conducting formal peace talks with the country’s largest rebel movement, the Fuerzas Armadas Revolucionarias de Colombia (Armed Revolutionary Forces of Colombia—FARC). On December 20, 2014, the FARC declared a unilateral, indefinite ceasefire, and Colombian President Juan Manuel Santos recently said that he had instructed government peace negotiators to “accelerate” the talks with the FARC.
Last June, Santos revealed that his government and the ELN had begun separate preliminary peace talks in January 2014. Until now, little was known about the progress of those talks. The two sides recently concluded a “spiritual retreat” in the Colombian city of Cartagena, after which the President Santos urged the ELN to consider a ceasefire.
“We have given much thought to a unilateral and indefinite ceasefire, in this regard with must recognize that the FARC have delivered. We want to invite the ELN to join the initiative and to reach an agreement as soon as possible regarding the issues we have been discussing for some time,” Santos said.
Read more about the Colombian peace negotiations here.
December 22, 2014
Los entusiastas de los diálogos recibimos con optimismo—y siempre cautela—las noticias de la última semana: la Unión Europea reconoció a Palestina como Estado, Cuba y EEUU restablecieron sus relaciones diplomáticas después de 55 años de “guerra fría,” y las Fuerzas Revolucionarias de Colombia (FARC) declararon un cese al fuego unilateral e indefinido.
Decisiones audaces y polémicas, que siempre necesitan veeduría, pero que envuelven ánimos de ensayar nuevos métodos a la hora de solucionar diferencias. Desde que el gobierno de Colombia se embarcó en los diálogos con las FARC hace casi dos años y medio, muchas decisiones han sido controversiales, comenzando por el proceso de paz mismo—que tiene enconados contradictores, como el senador y ex presidente, Álvaro Uribe. Cada año que comienza—o cerca de cada elección—el presidente Juan Manuel Santos promete una firma de paz inminente. ¿Será que el 2015 le da la razón?
El año pasado también hubo una tregua de las FARC, aunque limitada a un mes durante las fiestas de fin de año. Según la Defensoría del Pueblo, fue entonces violada en tres ocasiones con ataques a la fuerza pública. Y ese es el meollo del asunto: las concesiones de las FARC en el terreno militar se reducen al ataque, no a la posibilidad de “legítima defensa.” Una tregua no es un desarme, ni una concentración de combatientes en una zona desmilitarizada (vieja fórmula de los diálogos del Caguán durante el gobierno del presidente Andrés Pastrana). Si no es decididamente bilateral, no obliga a la otra parte a no usar las armas; y el gobierno colombiano ha sido clarísimo en que nunca renunciará a su deber de defender a los ciudadanos. Y finalmente, necesita verificación, la que también es generalmente implementada en medio de un armisticio.
La víspera de la tregua (19 de diciembre), las FARC mataron a cinco militares en el departamento del Cauca y todavía el Ejército sigue buscando a un soldado desaparecido. Es la vieja táctica de la guerrilla: mostrar poder militar antes de mostrar voluntad de paz. En adelante, si las fuerzas militares aprovechan esa concesión de las FARC para atacarlas, la tregua será violada en instantes, y con ello vendrá toda la crítica de sectores opuestos al diálogo. ¿Hay una fórmula exitosa? Si no hay desarme, el escenario bélico es una bomba de tiempo; un desarme es el fin último de los diálogos—aunque no sabemos qué tan cerca estamos.
December 1, 2014
This week's likely top stories: Global leaders gather in Lima for the COP20 Climate Summit; Tabaré Vázquez wins the runoff presidential election in Uruguay; With FARC hostages released, Colombian peace talks are set to resume in Havana; Venezuela braces for impact as oil prices hit rock bottom; Cuba misses the mark on economic growth in 2014.
Global Leaders Gather for COP20 Climate Summit in Lima: Thousands of government officials and environmental advocates will gather in Lima this week and next for the annual UN Climate Change Conference. The 20th annual session of the Conference of the Parties, or COP20, opens today and will conclude on December 12, bringing together delegates from 195 countries to draft an international agreement on reducing carbon emissions and global warming. Last month in Beijing, both China and the U.S. agreed to cut emissions by 2030, which could help advance the talks. If the talks in Lima succeed, a climate change agreement could be signed in Paris in late 2015.
Tabaré Vázquez Wins Uruguayan Election: Former Uruguayan President Tabaré Vázquez will return to the presidency after he easily defeated challenger Luis Lacalle Pou of the Partido Nacional (National Party—PN) in Sunday’s runoff election. Vázquez, of the governing Frente Amplio (Broad Front—FA) earned 52.8 percent of the vote to Lacalle Pou’s 41 percent. Vázquez pledged to continue outgoing President José Mujica’s controversial marijuana legalization policy, and to focus on education reform and crime reduction, two major concerns of Uruguayan voters. The Frente Amplio has been in power since 2005, when Vázquez was elected to his first presidency; it won a narrow majority in Congress in October’s elections.
Hostages Safely Home and Delegation Returns to Havana: With three FARC hostages released on Sunday, the Colombian government delegation will return to Havana, Cuba to meet with delegates from the Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia—FARC) to discuss the resumption of peace talks. Pastor Alape, a FARC negotiator, traveled from Cuba to personally coordinate the release of General Ruben Dario Alzate Mora, as well as his two companions, who were kidnapped in mid-November. The release “contributed to restoring a climate conducive to continuing the talks” said Colombian president Juan Manuel Santos. A two-day meeting in Havana to evaluate recent events will begin Tuesday. Santos ordered the suspension of the peace talks on November 17, shortly after the kidnappings took place.
Oil Plummets to $65 Per Barrel, Rocking Caracas: The Organization of Petroleum Exporting Countries’ (OPEC) decision last week to maintain its current production ceiling of 30 million barrels per day caused oil prices to plummet to $65 per barrel—the lowest level since the global recession in 2008. Venezuela will be among those hit hardest by the recent price drop: according to an International Monetary Fund assessment, the country can only hope to break even with oil priced at about $120 per barrel. Already plagued by failing political and economic policies, Venezuela might be forced to avoid a default by pursuing any number of difficult choices: devaluing its currency, seeking a bailout from the Chinese, cutting imports, raising domestic energy prices, scaling back petroleum subsidies to PetroCaribe member nations, or even cutting the popular chavista social welfare programs. The decline in oil prices also dragged down other commodities, which sank to a five-year low as China’s demand for fuel and metals slows. The larger trend of stagnating commodity prices will cause stress on many national economies in Latin America which remain dependent on commodity exports.
Cuban Economy Hoping for Substantial Growth in 2015: In spite of the economic reforms instituted by President Raul Castro in 2014, the Cuban economy failed to reach its projected levels of growth this fiscal year. Before presenting Cuba’s budget and economic plan for 2015 at a cabinet meeting on Friday, Vice President and Minister of Economy Marino Murillo Jorge announced that the Cuban economy will grow by 1.3 percent instead of the state’s initial estimate of 2.2 percent. According to Murillo, the nation’s underperforming sugar and manufacturing sectors are responsible for the reduction in projected growth. By increasing capital investment in renewable energy production, infrastructure projects and food imports, and continuing to pave the way for expansion of its burgeoning non-state sector, the Cuban government is maintaining its optimistic estimate that GDP will grow 4 percent in 2015.
November 24, 2014
Aunque los cálculos políticos y militares anunciaban una pronta liberación del general del Ejército Rubén Darío Alzate Mora, secuestrado por las FARC en el Chocó, el hecho que provocó la suspensión del proceso de paz entre el gobierno colombiano y esa guerrilla por primera vez en dos años de diálogo, todavía lo tiene en vilo.
Las operaciones de rescate de la Cruz Roja Internacional, lideradas por los países garantes Cuba y Noruega e iniciadas el pasado 19 noviembre, podrían tomar más tiempo de lo esperado por la necesidad de cesar operaciones militares en el Chocó. Una versión del plagio habla de que el General y sus acompañantes, el cabo Jorge Rodríguez y la abogada Gloria Urrego, se subieron de manera voluntaria en una chalupa en el corregimiento de las Mercedes con dos guerrilleros vestidos de civil, y se fueron río abajo. Otra dice que los sujetos iban armados hasta los dientes y los obligaron a hacerlo.
Cuando se de la esperada entrega del general, vendrá por primera vez la rendición de cuentas de un ex secuestrado: al militar le espera una citación al Senado para que explique qué hacía vestido de civil y desarmado, en una zona roja de alta presencia guerrillera, que él mismo conoce como la palma de su mano. No en vano estaba allí al mando de una fuerza de Tarea Conjunta antiguerrilla, en uno de los departamentos más golpeados por la violencia de las FARC.
Las misteriosas circunstancias del histórico plagio de un General de la República, el hecho de que el ex-presidente Álvaro Uribe fue el primero en dar la noticia en su Twitter y el debate que el Congreso está dando sobre el proyecto del fuero militar, no son hechos aislados. Al contrario, ponen sobre el tapete la fuerte voz que quieren tener los militares y los sectores de ultraderecha en el proceso de paz, y la necesidad del gobierno—en particular a través de su ministro de defensa, Juan Carlos Pinzón—de hacerles sentir que nadie está claudicando en el terreno de la guerra. Que la moral de las tropas debe estar siempre en alto. Que las fuerzas militares, entregadas ellas mismas por 50 años a combatir al terrorismo, jamás serán equiparadas con los guerrilleros en términos de juzgamiento y condena—no importa cuántos excesos hayan podido cometer o con quién se hayan aliado para lograr la derrota de ese gran y único enemigo llamado FARC.
Monday Memo: Colombia Peace Talks — Mercosur and Pacific Alliance — Uruguay Elections — Walmart in Panama — Goldcorp in Argentina
November 24, 2014
This week's likely top stories: Colombia to resume peace talks with FARC once hostages are released; Mercosur and Pacific Alliance convene to discuss regional cooperation; Uruguayans return to polls on Sunday to elect president; Panama courts Walmart for its regional distribution center; Goldcorp to inaugurate Cerro Negro mine in Argentina.
Hostages Released and Peace Talks to be Resumed: Peace talks between the Colombian government and the Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia- FARC) will resume after the two parties reached an agreement to free hostages kidnapped by the FARC over a week ago. The FARC will release a total of five hostages, including General Ruben Dario Alzate Mora, the highest-ranking military captive ever taken by the FARC. The Colombian delegation will return to Havana and resume peace talks as soon as the captives are liberated and the humanitarian operations by the Red Cross to return the captives home are underway. Colombian President Juan Manuel Santos ordered the suspension of the peace talks on November 17, just after the kidnappings took place.
MERCOSUR and Pacific Alliance Meet in Santiago: Chilean President Michelle Bachelet inaugurated a meeting today in Santiago between Latin America’s prominent regional integration blocs, the Alianza del Pacífico (Pacific Alliance)—comprising Chile, Mexico, Colombia, and Peru—and the Mercado Común del Sur (Southern Common Market—Mercosur)—which represents Brazil, Argentina, Uruguay, Paraguay, and Venezuela. The meeting, a follow up to Chilean Foreign Relations Minister Heraldo Muñoz’s proposal last February to design a formal trade alliance between the entities, brings together representatives from both sides, including trade officials, academics, union members, and business leaders, in order to dialogue about opportunities for cooperation on climate change, infrastructural development, public health, tourism, and the export of manufactured goods. In her opening statement, Bachelet said, “We are hoping that this historic meeting sets us on our first steps down the shared path of developing our Latin America and each one of our countries.”
Uruguayans Vote for President on Sunday: Uruguayan voters will return to the polls this Sunday, November 30, to elect the country’s next president in a runoff vote. Former president and Frente Amplio (Broad Front—FA) candidate Tabaré Vázquez is almost assured a victory after a November 12 Cifra poll showed that 52 percent of eligible voters plan to elect Vázquez, compared with the 35 percent of voters who plan to vote for challenger Luis Lacalle Pou of the Partido Nacional (National Party—PN). Other polls have made similar predictions, and Lacalle Pou recently said that he fully expects to be defeated by Vázquez in the second round. Vázquez just missed an outright victory after he won 47.8 percent of votes during Uruguay’s first round election on October 26, falling short of the 50 percent plus one required to avoid a runoff. Vázquez served as Uruguay’s president from 2005 to 2010.
Panama Courts Walmart to Host Distribution Center: Panamanian business leaders have asked U.S. multinational Walmart to build a Latin American distribution center in Panama’s free trade zone, the Zona Libre de Colón (ZLC). ZLC Manager Surse Pierpoint said that Panamanian President Juan Carlos Varela has sent a letter to Walmart executives asking them to consider the proposal, which Pierpoint said will “elevate the status and image of the ZLC” and attract additional companies to Panama. Pierpoint and other business leaders, including the head of the Consejo Empresarial Logístico (Business Logistics Council) and the Cámara Marítima (Maritime Chamber) are seeking a meeting with Walmart executives, expected to take place in December or January, to pitch the proposal.
Goldcorp to Open New Mines in Argentina: Today, the Argentinian Secretary of Mining, Jorge Mayoral, announced in a memo following an on-site meeting with Goldcorp’s Vice President and COO of Central and South America, Eduardo Villacorta, that the company’s Cerro Negro mine will be inaugurated in February 2015. In 2010, Canadian gold giant Goldcorp acquired the Cerro Negro mine, located in the Santa Cruz province of Argentina, and invested $1.67 million in its reconstruction. Cerro Negro is expected to forge between 130,000 and 180,000 ounces of gold before the end of 2014, and once fully operational, the mine will maintain a production capacity of 4,000 tons per day of concerted gold and silver throughout its 23 year lifespan. Cerro Negro marks the Vancouver-based miner’s second Argentinian venture, after its 37.5 percent share of the Alumbrera copper mine in Catamarca.
Monday Memo: Colombia Peace Talks — U.S. Refugee Status — Petrobras Arrests — Cuba Tourism — Pemex Investments
November 17, 2014
This week's likely top stories: Colombia’s peace talks suspended over kidnapping; U.S. will grant refugee status to select minors from Central America; Brazilian police arrest 27 in Petrobras corruption scandal; Cruise ship tourism is booming in Cuba; Pemex invests millions in hydrocarbon production and exploration.
Kidnapping Halts Colombian Peace Talks: Colombian President Juan Manuel Santos has suspended peace talks with the Fuerzas Armadas Revolucionarias de Colombia (Revolutionary Armed Forces of Colombia—FARC) after the rebel group kidnapped a Colombian army general this weekend. General Rubén Darío Alzate Mora—who was apparently dressed as a civilian when captured—and two other people were reportedly abducted on Sunday by the FARC’s 34th front in the western department of Chocó, making General Alzate the first general ever to be kidnapped by the guerrillas. Colombian Defense Minister Juan Carlos Pinzón deployed hundreds of troops to the area on Sunday. On Santos’ orders, Colombian government peace negotiators will not travel to Havana today to participate in the second round of the two-year-old peace talks with the FARC.
Some Central American Minors to Receive Refugee Status: Vice President Joe Biden announced on Friday that the U.S. government will grant refugee status to minors from Guatemala, Honduras and El Salvador if their parent is a legal U.S. resident. The program, to be launched next month, will permit immigrant parents to request refugee status for any children under age 21 living in any one of the three Northern Triangle countries. Upon arrival, the children will be eligible to work and will eventually be eligible for permanent residency and citizenship. Currently, a maximum of 4,000 Latin American immigrants per year from Colombia and Cuba only are eligible for refugee status in the United States. Biden’s announcement comes amid growing concerns about the surge of unaccompanied Central American migrant youth who entered the U.S. illegally this year. The Obama administration is expected to announce further reforms to the immigration system in the coming weeks.
Brazilian Police Arrest 27 in Petrobras Corruption Scandal: In response to mounting political pressure to resolve the Petrobras corruption scandal, Brazilian police made 27 arrests on Friday in connection with the investigation by order of federal prosecutors at the Ministério Público Federal (Federal Public MInistry). Those arrested included Renato Duque, the former director of engineering and services at the state-owned oil company, as well as nine executives from construction firms who signed fraudulent contracts with Petrobras. Authorities also froze $277 million in assets belonging to 36 suspects and three unnamed companies. Former Petrobras director Paulo Roberto Costa, arrested in March, first disclosed the details of the company’s alleged decade-long, $3.8 billion dollar kickback scheme to buy influence among the members of the ruling Partido dos Trabalhadores (Workers’ Party—PT). Responding to the arrests, President Dilma Rousseff, who chaired the board of Petrobras from 2003-2010 while serving as energy minister, commented that “This will change forever the relationship between Brazilian society, the Brazilian state and private companies.” Following Petrobras’ statement that it would delay the release of its third quarter earnings, the company’s stock fell five percent on the IBOVESPA exchange.
Hike in Cruise Ship Tourism Projected in Cuba: The state-run Cuban tourism agency, Cubatur, announced late last week that it is expecting the arrival of more the 200 cruise ships at ports throughout the island during the upcoming winter season, which ranges from late November to April. Tourism is the nation’s second largest source of income (after technical and medical expertise), and it brought 2.85 million visitors to the island in 2013. The resurgence of cruise ship tourism reflects the Cuban government’s attempt to diversify its tourist offerings. The cruise ship industry had been all but abandoned in Cuba since the Spanish firm Pullmantur was acquired by the U.S.-owned Royal Caribbean cruises in 2006 and subsequently shut down all operations to the island. The Cuban government has rejuvenated the cruise ship tourism sector by establishing joint operations with international companies. This was made possible by the Foreign Investment Law, inaugurated in 2014, which aims to attract foreign investment through concessions such as new tax breaks, more flexible labor policies, and a reinforcement of the offer of allowing 100 percent ownership.
Pemex to Invest Millions in Upstream Oil Industry: Petróleos Mexicanos (Pemex) announced to investors today that it is planning to invest up to $161.7 million between 2015 and 2019—or 78 percent of its available capital—to its upstream search for potential underground and underwater sources of hydrocarbons. Pemex’s investment may cover shale gas extraction from the Agua Nueva deposit in the Tampico-Misantla Basin and deep-water drilling across the Perdido Fold Belt in the Western Gulf of Mexico. By comparison, only $34.4 million will be rerouted back into downstream activities—such as refining, marketing and distribution—to increase the efficiency of oil refineries like the complexes in Tula, Salmanca, and Salina Cruz. Since peaking in 2004, Pemex’s crude oil production has fallen by nearly one million barrels a day. Moreover, this past October, the state-owned oil company posted its eighth consecutive quarterly loss. Against this grim background, the redistribution of capital resources into upstream projects represents Pemex’s long term objective of achieving national energy security by diversifying the national energy portfolio.