Weekly Roundup: Mexico's Round Zero, Brazil's Credit Rating, Bogota's Policy Future

Mission to Caracas: UNASUR Ministers in Venezuela

This week, foreign ministers from the Union of South American Nations (UNASUR) bloc spent 48 hours in Venezuela, meeting with the president, governing party officials, members of the opposition, and student leaders, among others. Though the bloc did not publicize its recommendations, diplomatic sources said that the foreign ministers of Brazil, Colombia, and Ecuador agreed to serve as mediators between the government and oppositions.

For the latest on what’s happening in Venezuela, follow AS/COA Online’s timeline.

No Disney for You: Halt on First-Time U.S. Tourist Visas for Venezuelans

The U.S. embassy in Caracas announced this week that it will no longer issue tourist visas to first-time applicants in Venezuela, reports the Associated Press. Embassy officials said they have insufficient staff after the expulsion of three consular officials last month, in addition to delays by Venezuelan President Nicolás Maduro’s administration to authorize the arrival of new consular employees.

Secondary Telecom Laws Submitted to Mexico’s Congress

Mexican President Enrique Peña Nieto submitted the secondary implementation laws for a telecom reform to Mexico’s legislature on March 24, with Communications Secretary Gerardo Ruiz Esparza expressing hope for the laws to pass during the current session of Congress. However, the two main opposition parties aligned to voice criticism of the laws and América Móvil, telecom magnate Carlos Slim’s company, charged that the legislation protects Mexican media company Televisa.

Round Zero: Mexican Regulators to Review Pemex Wish List

On March 27, Mexican state oil company Pemex sent regulators a “wish list” during the so-called “Round Zero” of the country’s energy reforms, naming which oil fields it wants to keep for development and which portions would be open to private investors. Pemex hopes to retain 83 percent of its proven and probable reserves, writes COA’s Christian Gómez, Jr for the Americas Quarterly blog. The energy ministry has until mid-September to make a decision.  

Two-Speed Mexico: Report Highlights GDP Growth Challenges

A new McKinsey report looks at the factors behind why Mexico’s economic growth keeps falling short, saying the country functions in two gears—one where it’s rising in the ranks of global manufacturing and investment and another of smaller domestic enterprises in which productivity is on the decline. “This problem explains why GDP growth has risen by only 2.3 percent a year, on average, since 1981 and Mexico lags behind countries whose GDP per capita it once surpassed, despite more than 30 years of market-opening measures,” say the report authors.

Mexico and Panama Conclude Free-Trade Negotiations

This week in Mexico’s capital, Mexican and Panamanian leaders signed an act to conclude negotiations on a free-trade deal. Mexican President Enrique Peña Nieto described the move as bringing Panama another step closer to joining the Pacific Alliance. He travels to Panama at the beginning of April.  

S&P: Brazil’s Credit Rating Downgraded to BBB-

This week, Standard & Poors downgraded Brazil’s credit rating to BBB-, the company’s lowest investment-grade rating. The decision was based on sluggish economic growth and increasing debt levels, said S&P.

Learn more about Brazil’s economic outlook and its credit rating. Read what experts had to say at AS/COA’s São Paulo conference this week.

Santos Launches Plan for Colombia’s Capital

On March 25, President Juan Manuel Santos announced a new policy plan for the country’s capital, less than a week after he signed a removal order for Bogota Mayor Gustavo Petro. The plan includes measures in security, public transportation, housing, and health. Santos said Friday that a mayoral election will be scheduled, but has not announced a date yet.

Argentine Senate Approves Repsol Settlement

On March 27, Argentina’s Senate approved a settlement between Spain's Repsol and President Cristina Fernández de Kirchner's administration to pay the oil company $5 billion in bonds as compensation for expropriating a 51 percent stake in Argentine energy company YPF in 2012.

Chileans March in Favor of Reforms

On March 23, tens of thousands took to the streets of Santiago for the “March of all Marches,” demanding that newly inaugurated President Michelle Bachelet keep her campaign promises. During her campaign, Bachelet vowed to improve healthcare, reduce income disparity, and overhaul the constitution, in addition to education reforms.

Paraguay’s First General Strike in Two Decades 

Large numbers of workers went on strike in Paraguay on March 26, protesting an infrastructure privatization law as well as demanding education reform, pay increases, and improved public transportation. It was the first general strike to take place in the country in 20 years. On March 27, President Horacio Cartes announced he would establish a commission to create a dialogue with the country’s main unions.

Report: Trends in Inequality in Argentina, Brazil, and Canada

The Chartbook of Economic Inequality examines long-term changes in income, earnings, and wealth in 25 countries worldwide, including Argentina, Brazil, and Canada. Brazil’s poverty rate has been falling over the past 20 years, though the country shows high levels of overall income inequality while in Argentina, the poverty rate grew dramatically between 1993 and 2002, when it began a sharp drop. In Canada, poverty and inequality rates remained relatively stable from 2000 to 2011. (H/T Economist Americas blog)

Fertility Rate Drops to All-time Low in Costa Rica 

The fertility rate in Costa Rica is at the lowest level in the country’s history, reports The Tico Times. At 1.76 children last year, the fertility rate falls below the replacement rate to maintain the current population. The Wall Street Journal reports that Brazil and Mexico also have seen significant dips in fertility rates.

Who’s Who of LatAm Leaders on Social Media

Mexican President Enrique Peña Nieto is “the most talked about” Latin American leader on social media, while Ecuador’s Rafael Correa has the most positive mentions, according to a Llorente & Cuenca study on the region’s presidents. The report also shows that Peña Nieto and Brazilian President Dilma Rousseff are perceived as having the “most solid” digital strategies among Latin American presidents.