Weekly Roundup: Hemispheric Leaders Gather at COA Conference, Brazil's Investment Grade, Uruguay's Rice Boom

Hemispheric Leaders at COA’s Washington Conference

Two presidents and cabinet-level officials from across the hemisphere gathered at COA’s annual Washington Conference this week to discuss pressing policy issues with a focus on hemispheric trade policy. Keynote speaker President George Bush, urging U.S. Congress to approve implementation of a trade pact with Colombia, described trade as the “the most effective way” to promote prosperity in the region. U.S. Secretary of State Condoleezza echoed his remarks, calling trade policy “vital to national competitiveness.” President Martín Torrijos of Panama, which also has a trade deal pending with the United States, emphasized the importance of open markets and democracy, saying, “People recognize in the end that good governance is the key for development.”

Topics covered at the conference included U.S. policy toward Cuba, the challenge of rising food prices, the Doha Round of trade talks, North American collaboration on border and energy security, and educational exchange in the Americas. Ministers and secretaries from the United States, Canada, Colombia, and Peru spoke at the event, titled “The Globalization of the Americas.”

Read more about the conference. View summaries of and listen to audio podcast remarks by conference speakers.

Ecopetrol’s Positive Outlook

Since its 2007 Initial Public Offering (IPO) last year, Colombia’s state-owned company Ecopetrol has enjoyed healthy financial results thanks to high oil prices and recent findings of new oil and gas deposits, increasing its profits up to $11 billion last year—21 percent higher than the previous year. The nearly half a million Colombians who invested in the entire IPO (10 percent of its shares) will receive a windfall of dividends throughout the year.

Bolivia’s Santa Cruz Votes for Autonomy

On May 4, thousands of Cruzeños went to the polls and voted overwhelmingly in favor of greater autonomy from the central government. The referendum served as the latest move in an intricate political showdown between Evo Morales’ ruling party Movimiento Socialista (MAS) and Santa Cruz’s Comité Pro Santa Cruz. The provinces of eastern Beni, Pando, and Tarija are expected to follow suit. Writing for OpenDemocracy, Oxford’s John Cabtree analyzes the political, economic, and social implications of the vote where “the argument over autonomy for Bolivia’s eastern region is reaching a climax.” The Latin American Thought blog offers a closer look at the ethnic, cultural, and economic divide among Bolivians and the unclear road ahead for the Morales’ administration.

Immigration Making Headlines Again

In an investigative report for the New York Times, Nina Bernstein writes about the lack of information provided by the Immigration and Customs Enforcement (ICE) agency to family members following the deaths of loved ones in ICE custody. Between 2004 and 2007, roughly 66 people died while detained by U.S. immigration authorities. A proposed bill by Representative Zoe Lofgren (D-CA) has proposed a bill setting mandatory standards for immigrant detainee healthcare and requiring that all deaths must be reported to the Justice Department and Congress. “This is about whether the government is conducting itself according to the basic minimum standards of civilization,” said Lofgren, commenting on the bill.

A recent AS/COA analysis examines U.S. immigration legislation undertaken on the state level in the absence of comprehensive immigration reform.

Brazil Earns S&P Investment Grade

Standard & Poor’s boosted Brazil’s long-term foreign currency debt rating investment grade following first-quarter news that the country’s economy had achieved its fasted growth since 2004 as well as record levels of foreign direct investment.

German FDI Strong in LatAm

Stable growth and lest volatile economic conditions have increased the level German confidence in Latin America, especially in Brazil and Mexico, writes Peter Rösler for  Latin Business Chronicle. In 2007, German exports into the region accounted for as much tas $30 billion while imports reached $32 billion. “There is no doubt that today Latin America is a lot more important for German companies as an industrial base rather than a simple trading partner,” said Rösler.

Canada Loosens Food Aid Regulations

In the face of mounting concern over rising food prices, Ottawa announced a decision to remove restrictions on where beneficiary countries can purchase goods and will no longer insist on sending domestically grown food. Canada also announced intentions to donate $230 million in food aid, according to a UN report.

Uruguay’s Rice Blockbuster

Uruguay’s rice industry is booming, aided  by the current global rice shortage. The country hopes to benefit from high yield production, low internal demand, and international prices that have increased over 74 percent in last 12 months.

Lula’s Ethanol Defense Continues

President Luiz Inacio Lula da Silva continues to find himself defending ethanol amid rising food crisis fears, arguing that misinformation has lead to unwarranted attacks. He charged critics with failing to distinguish between different kinds of biofuels, Brazilian ethanol is made of sugar cane—not corn, beets, or wheat. “Food versus wheat is not an issue in Brazil,” said Marcos Jank, president of the Brazilian Sugar Cane Association. A report by the Christian Science Monitor examines the ethanol debate, including concerns raised by critics that the scarcity of land for cattle farmers has driven ranchers to clear poorly monitored areas of the Amazon.

Q &A with New Paraguayan President

IPS correspondent David Vargas interviewed the newly-elected President of Paraguay Fernando Lugo, who ended 61 years of uninterrupted political rule by the Colorado Party. Lugo described his upcoming presidency as “open, honest, and transparent.” He also talked about expanding support for poor indigenous peoplecomprehensive agrarian reform, foreign policy, his backing of Mercosur, and the thorny issue about renegotiating the Treaty of Itaipú with Brazil.

Bachelet’s Popularity Rises

In a recent poll (PDF) by Centro de Estudios de la Realidad Contemporánea, Chilean President Michelle Bachelet has gained four popularity points to gain 50 percent of approval—a marked increase from Fall 2007. Amid her increasing popularity, Bachelet is facing an environmental emergency with the volcanic activity at the Chaitén volcano located in the Patagonia region. She visited the region on Monday and has pledged military assistance to evacuate thousands of people. The ash plume has stretched almost 800 miles to Argentine, inducing flight cancellations to avoid ash damage to engines.

Chile’s Copper Mine Strikes

Multiple openings and closing in the last three weeks of the El Teniente mine (the world’s largest underground copper mining operation) caused by worker safety issues  have raised concerns among investors and government officials. The mine’s operator Codelco is losing around $10 million per day while the mine remains closed. Worldwide copper production has been affected, keeping prices near an all-time high.

U.S. Military Base Faces Protests in Ecuador

The Miami Herald reports on demonstrations against the U.S. anti-narcotics base in the city of Manta. Ecuadorian President Rafael Correa will not renew the 10-year contract after its November 2009 expiration date. The base’s commander, Lt. Col. Robert Leonard said that the Manta operation contributes $6.5 million a year into the local economy, as well as employing150 people.

Ecuador Audits America Móvil

After failed negotiation, Ecuador started a final audit on Mexico’s América Móvil to end commercial relations with the cell phone operator, whose contract will expire in August. América Móvil controls 70 percent of the 10.3 million lines available in Ecuador.

The DR’s Upcoming Elections

Dominican President Leonel Fernandéz appears poised to win reelection on May 16, marking his third term in office. An analysis in the Economist credits him with stabilizing his country’s economy, but warns “the politics have been less inspiring. The government is stuffed with party men and has been dogged by corruption scandals.”