Weekly Roundup: Chile's Presidential Primaries, Mexico's Medical Tourism, LatAm's Defense Imports

U.S. Senate Passes Immigration Reform

In a 68-32 vote, the U.S. Senate passed the Border Security, Economic Opportunity, and Immigration Modernization Act on June 27, reports Politico. The bill, which former Mexican Ambassador to the U.S. Arturo Sarukhan calls "a chance to fundamentally enhance the security, prosperity, and well-being of North America," includes a 13-year pathway to citizenship for undocumented immigrants, increased border security, a new visa program for lower-skilled workers, as well as requiring employers to implement a workplace verification system.

Ecuador Says It Will Drop U.S. Trade Pact over Snowden Asylum Tensions

President Rafael Correa and other senior Ecuadoran officials said on June 27 the country would not be deterred from weighing political asylum for NSA contractor and whistleblower Edward Snowden, opting to drop the U.S. preferential tariffs afforded as part of the Andean Trade Promotion and Drug Eradication Act (ATPDEA). “In the face of threats, insolence and arrogance of certain U.S. sectors, which have pressured to remove the preferential tariffs because of the Snowden case, Ecuador tells the world we unilaterally and irrevocably renounce the preferential tariffs,” said Correa on June 27.

Meanwhile, U.S. State Department Spokesperson Patrick Ventrell questioned whether Quito can make such a decision on ATPDEA. “I mean, those are really congressional, unilateral trade preferences granted by the U.S. Congress to Ecuador. So I’m not sure that you can really withdraw from them one way or another,” said Ventrell. He went on to say that the United States is Ecuador’s largest trading partner and represents 35 percent of that country’s trade.

Chile Prepares for June 30 Presidential Primaries

With the June 30 primary elections drawing near, the four contenders vying for the left-leaning Concertación nomination—former President Michele Bachelet, her administration’s Finance Minister Andrés Velasco, lawyer Claudio Orrego, and former Justice Minister José Antonio Gómez—squared off for a final debate on June 23. Economy, education, and inequality were the topics that took center stage. Bachelet is considered the favorite and would face either conservative former Economy Minister Pablo Longueira or former Defense Minister Andres Allamand in November’s presidential vote, reports Bloomberg. Between 800,000 and 1,300,000 people are expected to participate in Sunday’s vote.

After Protests, Brazil’s Congress Defeats “Impunity Amendment”

On June 25, Brazil’s Chamber of Deputies voted 430-9 against PEC 37, a controversial constitutional amendment aimed at defanging Brazil’s public prosecutors’ offices. The bill, dubbed the “impunity amendment,” was decried by many protesters during Brazil’s demonstrations over the past two weeks. Congressmen also voted in favor of a bill to set aside 75 percent of oil royalties for education and 25 percent for health. That bill will move to the Senate for consideration.

Brazilians are Hungry—for Online News

The Reuters Institute Digital News Report 2013, which measures habits of news consumption and participation in nine countries, shows 38 percent of Brazil’s urban population comments on news stories shared via social networks. In the category for 25-34 year-olds most willing to pay for digital news, 58 percent of Brazilians surveyed responded positively, compared with only 5 percent in United Kingdom and 9 percent in United States.

Mexicans Vexed by U.S. Border “Surge” Proposal

The U.S. Senate proposal, approved on June 25, would increase the number of troops manning the southern border from 18,000 to 38,000, as well as adding four drones and 40 helicopters for surveillance purposes.  The bill, which will cost $46 billion to secure the border with Mexico, has drawn criticism from Mexican observers. “Fences are not a solution to the migration phenomenon, and they are not congruent with a safe and modern border,” Mexican Secretary of Foreign Relations José Antonio Meade told reporters this week. “They don’t contribute to the development of a competitive region that both countries are trying to build.”

Skipping the Beach: Medical Tourism on the Rise in Mexico

Mexico’s tourism industry accounts for 8 percent of the country’s economy, and Tourism Secretary Claudia Ruis Massieu Salinas is focused on “wooing ‘medical tourists’” to top-notch hospitals that are less expensive than the U.S. ones, reports the Financial Times beyondbrics blog. Eight hospitals have already received certification from the Joint Commission International, and Ruis Massieu hopes to get 98 more approved.

Women Outnumber Men in Mexican Newsrooms

Female journalists in Mexico have become an important factor in the country’s media, with the number of radio and television reporters surpassing their male counterparts, writes the University of Texas Knight Center blog. Still, women hold just 15 percent of the chief positions in Mexico’s media industry.

Colombia and NATO Ink Cooperation Pact

On June 25, Colombia and the North Atlantic Treaty Organization (NATO) signed a cooperation accord aimed at sharing classified information and practices in the fight against terrorism and drug trafficking, writes El Nacional. While the accord does not make Colombia a NATO member, a release by the multilateral organization said the deal “constitutes a first step for future cooperation in the security field.”

Changes ahead for Cuba’s Food Distribution Rules

Cuba is launching its first privately-run wholesale market, expected to open on July 1, writes The Economist. While some see this as a sign of the state’s loosening grip over controlled food distribution, production ability is limited as the government maintains it grasp on seeds and fertilizers, which farmers and producers need to diversify their market goods.

Doubts Cloud Future of Nicaraguan Canal Project

Reuters reports on the doubts surrounding the Chinese-run Canal Project that was approved this month by Nicaragua’s Congress. The article notes that no confirmed route yet exists for the canal and geography will pose significant construction hurdles, while not much is known about the Chinese lawyer and businessman backing the project. "Are international shipping companies going to trust a one-guy shop with minor telecommunications experience to be the system integrator on a $40 billion project in a country whose transparency is already subject to question?" National Defense University’s Evan Ellis posed to the news outlet. A spokesperson for shipping company Maersk Line would not speculate on the project’s future but told Reuters: "We applaud bold initiatives that can boost the possibilities for container shipping for the benefit of both lines and our customers."

Defense Spending up, up, and away in Latin America

The past few years have seen a surge in Latin American defense spending, with the region’s weapons imports increasing 16 percent from 2008 to 2012 and reaching $3.42 billion annually, says consultancy firm IHS Jane. Brazil accounted for the region’s largest defense budget last year and weighed in at $30.62 billion. It also saw imports increase 87 percent from 2008 to 2012. However, Venezuela stood as the region’s top importer in 2012, receiving $1.2 billion in arms. The United States remains Latin America’s top defense supplier at $759 million in 2012. But Russia came in not too far behind at $731 billion, largely due to exports to Venezuela. (H/T: Latin Business Chronicle).

Economic Lessons from Latin America

With a middle class of 225 million, the Latin American economy is projected to grow 4 percent in 2013, almost double the prediction for the United States, writes Banco Itaú CEO Ricardo Villela Marino for The Miami Herald. He writes that, while global economies can learn from the region’s counter-cyclical policies­­ that contributed to its resilience after the recession—such as cutting interest rates and introducing stimulus money—Latin America should focus on investing in human capital, exploring new markets, and developing alliances in order to stay at the top of its game.

Who Will Win Latin America’s Innovation Game?

ABC Univision looks at five factors to determine who is winning the Latin American race to create the next Silicon Valley, and ranks Brazil and Mexico neck-and-neck, tied for three categories: talented human capital, large internal markets and infrastructure, and foreign direct investment. Two deciding factors give Mexico an edge, writes Stephen Keppel: the country’s strong business regulations and policies, and its location—Mexico shares a border and time zone with Silicon Valley, while a flight to the technology hub from Brazil takes 13 hours.

LatAm Crime Organizations Increase Social Media Use

Organized criminals are increasingly using social media to promote opportunities for criminal activities such as kidnapping, extortion, and hiring hit men, reports InsightCrime News. Criminal groups use sites like Facebook to seek out potential targets and capitalize on the vast amounts of personal information available to learn their addresses, family member identities, and daily routines. Latin American governments are struggling to keep up with the online criminal behavior. “That gangs now feel so comfortable online…should act as a wake-up call to governments across the region that modern and effective strategies are needed urgently to tackle evolving criminal techniques,” notes InsightCrime.

City Homicide Rates: DF Safer than DC? Santiago Safer than Seattle?

The Avenida América blog takes a look at year-end 2011 murder rates in select Latin American and U.S. cities to demonstrate results that might surprise many observers. The comparison shows that Mexico City has lower murder rate than does Boston, São Paulo's is lower than Chicago's, Buenos Aires' is lower than Los Angeles', and Santiago’s is lower than Seattle's. “Certainly, comparing crime between the U.S. and most of Latin America is comparing apples and oranges at best,” notes the blog, acknowledging that crime isn’t just about homicide. But the post suggests that “before you postpone that next trip down south because the State Department has you terrified, it’s worth making a quick comparison between the so-called tranquil, law-abiding metropolises in the U.S. and the perceived lawlessness of big cities in Latin America.”