Weekly Roundup: Canada-LatAm Ties, Merida Initiative Wins House Approval, and CentralAm Leaders Visit California

Canada Strengthens Ties with Colombia, Peru, and Chile

Canadian officials concluded negotiation talks this week with their Colombian counterparts on a Free-Trade Agreement (FTA); now the agreement must be ratified by the House of Commons and the Colombian congress in order to gain passage. Prime Minister Stephen Harper heralded the pact as a way to support human rights and economic development in Colombia. The negotiations came a week after Canada signed a free-trade agreement (FTA) with Peru focused on commerce, labor cooperation, and environmental teamwork.

As another sign of deepening ties between Canada and Latin America, Harper welcomed Chilean President Michelle Bachelet for a four-day visit to Canada beginning June 9. Her visit marks the end of the first decade of a Canadian-Chilean trade deal. The leaders signed a declaration aimed to increase bilateral cooperation on science and technology exchange, scholarships, and investment ventures in mining.

Construction Slump Hurts Latino Workers

A recent report by the Pew Hispanic Center uncovers worrisome statistics on job growth for Latinos. Hispanics lost nearly 250,000 jobs in 2007, in large part because of a slowdown in housing construction. During the first quarter of 2008, unemployment rates among Latinos rose to 6.5 percent compared with 4.7 percent for all non-Hispanics.

Bush’s E-Verification Order

U.S. President George Bush signed an executive order that mandates all companies contracted by the federal government to use an electronic employment verification system known as E-Verify as part of the hiring process. Some experts criticized the measure. “Should the government cede so much ground to an anti-immigration mob that shows no signs of being appeasable?” asks a Los Angeles Times editorial, which raised questions about the accuracy rate of E-Verify. Jim Harper from the Cato Institute, a libertarian think tank, predicts that “using E-Verify will add to federal contractors' liability and paperwork burdens, and it will put law-abiding citizens through the hassle of straightening out their papers with the Department of Homeland Security and Social Security Administration before they can work.”
Read remarks by Homeland Security Secretary Michael Chertoff and Commerce Secretary Carlos Gutierrez at the State of Immigration Address on June 9.

U.S. House Approves Funds for Merida Initiative

On Tuesday, the U.S. House of Representatives approved a $1.6 billion package to fight drug-related violence in Mexico and Central America. The bill includes funding for a three-year program to be distributed as follows: $1.1 billion for Mexico, $405 million for Central America and $73.5 million for a Bureau of Alcohol, Tobacco, Firearms and Explosives program to combat gun-smuggling from the United States to Mexico.

Read AS/COA’s analysis about the Merida Initiative.

Mexico’s Inflation Rate Increase

Despite the Mexican government’s struggle to control food prices and help the poorest Mexicans to cope with the crisis through subsidies, Mexico’s Central Bank announced on June 9 that their annual inflation rate rose to 4.95 percent, the highest level in more than 3 years. The central bank may be forced to raise interests rates to keep inflation under control. Yet a rate change may slow the national economic growth, which is essential to offset the effects of the U.S. economic downturn, reports the Los Angeles Times.

Puerto Rico’s Independence Raised at UN

Speaking to the UN Special Political and Decolonization Committee, Puerto Rico Governor Anibal Acevedo Vila called for the right to self-determination and accused the Bush administration of denying the island the chance to choose its own status.

Read a recent AS/COA analysis of Puerto Rico’s recent role in the U.S. Democratic primaries and questions raised about its status.

CentralAm Leaders Suggest Help for CA Farms

In an attempt to bridge new partnerships between U.S. farmers and Central American laborers, the President of Honduras José Manuel Zelaya and top government officials from El Salvador and Guatemala visited California’s San Joaquin Valley over the weekend. "We know there is a great shortage of farm labor in California and the southern United States…we really do hope this meeting can contribute to finding a solution to this problem," said Zelaya.

Costa Rica Holds Sustainable Development Summit

As a pioneer in sustainable tourism in Latin America, Costa Rica hosts the fourth meeting of the UN’s International Task Force on Sustainable Tourism Development in San José and Arenal this week. The summit will focus on protection of natural resources, promotion of sustainable agricultural production, and the best practices for green tourism.

Nicaragua Approves Refugee Law

In an effort to mirror international legal standards, Nicaragua’s National Assembly approved a new legal framework to offer greater protections for refugees from neighboring Central American countries as well as from Asia and Africa.

Guatemala Takes Steps to Heal Old Wounds

An article in the Diplomatic Courier examines the recent conviction of five Guatemalan paramilitaries for their involvement in the 1982 massacre of 177 indigenous women and children in the village of Rio Grande. The analysis credits the convictions as “an important step towards finding justice for the victims of the conflict” but wonders whether justice will be served in hundreds of others of massacres that occurred during the country’s brutal civil war.

India-SICA Agricultural Cooperation

During a meeting this week in New Delhi, India agreed to share its successful experience in agricultural and small business development with eight Central American countries represented by the Central American Integration System (SICA). Top SICA officials and Indian External Affairs Minister Pranab Mukherjee signed several agreements, which include setting up a technical commission and abolition of visa requirements for Indian diplomats and officials.

IMF Warns about Latin American Inflation

On June 9, International Monetary Fund Managing Director Dominique Strauss-Kahn praised Latin America for strong fiscal positions that have, thus far, shielded the country from the global financial slowdown. Yet he warned that inflation serves as “the more immediate challenge” in the region and pointed to double-digit rates in several countries.

Read a summary of and listen to audio of remarks by Strauss-Kahn at COA’s 38th annual Washington Conference on the Americas.

Deforestation on the Upswing in the Amazon

With deforestation on the rise in Brazil’s Amazon region, the Economist examines the challenges facing the country, which involve balancing “the wishes of those who would like the Amazon to be a giant park and Indian reserve against those who want to turn it into a giant farm.”

Ecuador Nationalizes Mining Lands

Licenses and titles were revoked on roughly 40 percent of lands leased for mining in Ecuador as a result of new government regulations. Mines and Petroleum Minister Galo Chiriboga explained that the government wants to secure a bigger chunk of the revenue generated by the industry. Nearly half of the nationalized area was concentrated in the hands of 10 mining companies, both domestic and foreign.

OAS Secretary May Run for Chilean Presidency

While attending the OAS 38th General Assembly meeting in Medellín, Colombia, OAS Secretary General José Miguel Insulza signaled his intentions to run for president in Chile’s 2009 elections. The Miami Herald surveys an array of experts on Insulza’s intentions to become a presidential candidate.

Read a recent AS/COA Online interview with Insulza.

Chile’s Educational Partnership with California

Washington Post’s Marcela Sanchez analyzes Chile’s deepening ties with the United States. Next week, Chilean President Michelle Bachelet and California Governor Arnold Schwarzenegger will sign a new joint venture focused on academic training that involves a $6 billion investment from Chile.

Uruguay’s Possible Hydrocarbon Reserves

Recent seismic studies suggest hydrocarbon reserves may sit under the continental shelf in Uruguayan territory. The government hopes to find a suitable exploration partner during a presentation at the European Geoscientists’ Summit in Rome on June 12. “We’ve detected a big gas bubble, which in oil industry terms could mean a lot or nothing, since there are no guarantees but we have the right to expectations,” said Uruguayan Energy Minister Daniel Martinez, who predicts the country could command hydrocarbon reserves within seven or eight years.