Bolivia: Evo Morales tries to contain indigenous mobilizations
Bolivian President, Evo Morales, has intensified his campaign against new indigenous protests that are heading for La Paz. The purpose of the mobilizations is, once again, demonstrate dissatisfaction with the decision of the Bolivian government to build a road on the Indian Territory Isiboro Secure National Park (Tipnis), which is an indigenous nature reserve. Trying to win support from public opinion, Morales flew along with the local and foreign journalists over Tipnis, showing the benefits of the work on this ecological reserve. The road that the government intends to build on Tipnis is designed to unite the central region of Cochabamba with the Amazon region of Beni, through half of the Tipnis population, rejects the proposal.
To resolve this impasse, Morales is in holding a referendum to be held on May 10. The vote will decide whether the indigenous will approve or not the construction of the road on Tipnis. Despite the initiatives of the Bolivian president to keep dialogue channels open and consult his primary voter base – the indigenous movement – there is strong resistances to approve the project driven by the executive branch.
Brazil: More chapters in the Forestry Code debate
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The approval by the House of Representatives of the new Forestry Code in disagreement with what the Presidential Palace wanted creates a double problem to be managed by the government.
On the eve of the Conference Rio +20 and an eye on the international agenda, President Dilma Rousseff wanted the Representatives kept the text provided by the Senate, with a favorable view towards the environmental sector. But as the issue is not confined to the polarization between government and opposition, the government had the sympathy only of the PT within the allied base.
Given the result, government sectors indicate that the President will veto the crucial points of the text to both sides, such as amnesty for deforestation done previously.
Certainly, the veto will displease both sides, since the ruralists accept no exclusion in the approved text and environmentalists yearn for its rejection in its entirety. Representatives linked to agribusiness admitted they will work to overthrown any possible vetoes.
If the government decides to veto parts of the bill and submit to the Congress a provisional measure or bill of law with an urgent regime as a way to soothe negative reactions, it will still have risks since, as it occurred with the veto, other propositions will also have to analyzed by the congressmen,
In order to avoid the same situation, the government will have to demonstrate political skill to conduct the issue.
Comment (0)Argentina: Voters support YPF’s expropriation
Even though it caused tension in the relationship with Spain and hindered the image of the South American country with international investors, the controversial measure adopted by Argentine President Cristina Kirchner, to expropriate YPF, was viewed positively by public opinion.
According to a research made by the newspaper La Nacion (Buenos Aires), 62% of respondents approved the Cristina’s decision. Only 31% of respondents disapproved of the measure. It is important to mention that to 44% of the population, the government is responsible for the current low oil production, whereas 36% believe the negative production is responsibility of the owners of YPF, and 20% did not answer.
Among the respondents, 49% said that the expropriation will be positive for the economy, while 31% think the opposite, namely that the government’s decision will be negative. However, 47% of the questioned voters believe that the expropriation of YPF will be negative to Argentina’s image abroad. For 22% though, it will be positive, 18% believe it will not affect the country’s external imagem and 13% did not answer.
Among problems in the economy and alleged corruption charges against Vice President, Amado Boudou, this risky maneuver helps president Cristina Kirchner, politically, in the short term.
In addition to bringing something new to the agenda, the maneuver feeds the nationalist sentiment of the Argentines. On the other hand, the expropriation of YPF could bring future problems, especially if Cristina cannot preserve the elevated political capital she enjoys today.
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Comment (0)Paraguay: Exports decreased by 5.4% in first quarter
Paraguayan exports registered a decrease of 5.4% during the first quarter of 2012 compared to the same period last year, due to the decrease in its agricultural activity, according to data by the Central Bank of Paraguay (BCP).
According to the BCP, the value of foreign sales in January and March closed at US$ 1.08 billion compared to the nearly US$ 1.15 billion in the first three months of 2011, the report pointed.
Among the exports, soybeans, which figure as one of the country’s most important revenue sources, shrunk 32.6%, from US$ 286.2 million to US$ 192.8 million.
Meat, which is the second most important export item, summed US$ 69.5 million in sales between January and March 2012 compared to US$ 86, 6 million for the same period last year.
Two outbreaks of FMD in September 2011 and January this year, caused a significant decrease in beef production, while a prolonged drought between December and January affected the soybeans exports.
Comment (0)Brazil: Dilma wants “equal” relations between U.S. and Latin America
The president of Brazil, Dilma Rousseff, wants from her U.S. counterpart, Barack Obama, “closer and more equal” relations with Brazil and the rest of Latin America, remembering the ”negative models” of the past.
At the end of the Business Summit of the Americas, Dilma said that “in Latin America there is a huge space for partnerships, and that these partnerships should be beneficial for all parts involved”.
During the Summit, the Latin American countries demanded Cuba’s participation in the meeting, which the U.S. and Canada did not accept. Several of them stated that they expect this to be the last summit without Cuba.
Dilma also defended the measures adopted by the government to protect the country’s industry in face of the Eurozone’s expansionary monetary policy, and ensured that these measures are not equivalent to a protectionist plot.
Comment (0)Brazil: Pressures to boost the economy
In few moments in the history of the country it was possible to to see such harmony between business interests and unions. The monetary tsunami in Europe, mentioned by President Dilma Rousseff, is causing the devaluation of the dollar and reducing the competitiveness of Brazilian products.
Given this scenario, business representatives and trade unions have urged the Government to take measures to protect local industry and preserve jobs. Interests converge with those of the government. In particular, after the result of the GDP in 2011 (2.7%), below expectations and the order of President Dilma is to fight for a growth of around 4% in 2012.
The expansion of the payroll tax relief to more sectors of the industry should happen within two weeks, as promised by the Minister of Finance, Guido Mantega, to the entrepreneurs. He also demonstrated more flexibility in relation to the tax over company revenue, which will replace the 20% contribution made to the INSS.
The National Confederation of Industry (CNI) wants more, the taxation of all foreign capital entering the country, the full exemption from the wage bill of enterprises, reduction of taxes on inputs used in production, and the requirement for use of national contents in bidding processes and with the participation of foreign companies (according to the CNI, biddings in the energy sector are happening with the importation of Chinese components).
In addition to the payroll tax relief, the government will release decree to change theanti-dumping legislation. It will be charged a fee of the product under investigation, while the Department of Commercial Defense (DECOM) analyzes the process. The idea is to require the adoption of provisional surcharge against the product under investigation within 120 days.
According to press reports, the government initiated discussions with financial institutions to improve the credit lines of working capital for construction. The sector is important in the hiring of labor and it is also vital to achieving the goals of the housing program “My Home My Life”.
The Government is working to reduce the banking spread and reduce costs and expand working capital lines of public banks. It is also studying a restructuring of the credit lines of the National Development Bank (BNDES) focused on areas most affected by the appreciation of the real currency.
The government will reduce interest rates of the “Revitaliza” program, which provides credit lines to the modernization and expansion of production capacity and financing of exports in sectors such as textiles, footwear and leather, auto and capital goods. The Investment Support Program (PSI), aimed at the acquisition of capital goods and financing of exports, will also become less expensive.
The Central Bank is also perfectly aligned with the government. It will reduce, in the next meetings of the Monetary Policy Committee, the basic interest rate (Selic) to 9% per year.
Moreover, there is strong pressure for the adoption of the Senate draft resolution bill (PRS 72/11), which standardizes the rates of VAT in interstate operations with goods imported from abroad. The issue will be the subject of public hearings this week in the Senate.
Comment (0)ECUADOR: National Assembly approves agreements with Uruguay and Argentina
The National Assembly of Ecuador approved two agreements with Uruguay and Argentina in the areas of defense and space research/
According to Ansa agency, with 92 votes in favor, the organ ratified the defense alliance between Quito and Montevideo which aims to promote cooperation in military maneuvers, use of military equipment, peacekeeping operations, among others.
According to congressman Fausto Cobo, the agreement contributes to the Latin American integration which is a ”strategic goal” stipulated in the Constitution.
Comment (0)MEXICO: First presidential debate should be held in May
The four candidates for election in Mexico, to be held in July this year, will hold the first debate on May 6, according to party sources.
According to Ansa agency, Enrique Peña Nieto, from Partido Revolucionário Institucional (PRI), Josefina Vázquez Mota, from the government’s Partido Ação Nacional (PAN), Andrés López Obrador, from Partido da Revolução Democrática (PRD), and Gabriel Quadri, do Partido Nova Aliança (Panal), agreed with the date.
Comment (0)URUGUAY: Standard & Poor’s raised the country to investment grade
The rating agency Standard & Poor’s upgraded Uruguay’s debt ratings investment grade.
According to Ansa agency, the bank raised the country’s grade Uruguay from BB + to BBB- with stable outlook.
The Uruguayan government was expecting this recognition from Fitch Ratings and Moody’s for some time now.
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