Weekly Roundup: U.S.-Colombia Deal, Peru's Investment Grade, Calderon's Energy Reform Bill

Colombia Pact in Congress' Hands

President George W. Bush signed appropriate documentation to send the U.S.-Colombia trade agreement to Congress for fast-track approval, requiring action on the deal within 90 legislative days. The deal could face challenges to congressional approval, particularly from Democratic leaders who voiced resistance to the White House decision to attempt forcing the deal through Congress. House Speaker Nancy Pelosi announced Congress may make use House rules to prevent a vote and postpone consideration of the pact.

Mark Penn stepped down as the chief strategist for Senator Hillary Clinton’s presidential campaign after it came to light that he had met with Colombian officials to work on behalf of the bilateral deal. Clinton has voiced opposition to the deal. The Washington Post’s George Will writes, “Mark Penn’s sin was to be caught doing something sensible, surreptitiously.” 

COA’s guide to the U.S.-Colombia trade agreement provides a list of resources about the deal, including links to articles and op-eds, as well as reports by the United States and Colombian governments.

Read an AS/COA Online analysis of the Bush administration’s decision to submit the pact for congressional approval.

According to a new survey by Mexican newspaper Reforma, Mexico’s public is evenly divided between Democratic candidate Hillary Clinton and Barack Obama, with 31 percent of survey participants supporting each. While northern Mexico favors Clinton, Obama leads in the south. Respondents overwhelmingly support Democrats; only 7 percent prefer Republican John McCain.

Calderón Introduces Energy Reform Bill

A dispute over how to resolve the flagging production of Mexico’s state-owned oil company Pemex continues between the administration of President Felipe Calderón and opposition members. Calderón submitted an energy reform bill to Mexico’s Congress Tuesday, saying the reform would “make the best use of the potential of our petroleum industry.” Wall Street Journal columnist Mary Anastasia O’Grady warns that, “without new investment Mexico will bid good-bye to its legacy as a world-class oil producer.” El Universal provides coverage of the debate over energy reform. 

Calderón served as keynote speaker at this year’s AS/COA Latin American Cities Conference in Mexico City. Listen to an audio podcast of his remarks.

Venezuelan-Mexican relations took a hit after Caracas announced intentions to nationalize the cement industry. As the Financial Times reports, Mexican cement manufacturer Cemex accounts for more than half of market shares and sales in Venezuela. The Venezuelan government also intends to nationalize the country's largest steel maker, Sidor. An Argentine-Italian conglomerate holds a majority stake in the company.

In the Fall 2007 issue of Americas Quarterly, Mark Weisbrot of the Center for Economic and Policy Research and Francisco Rodriguez of Wesleyen University debated the effects of Venezuela's economic policies. Their exchange continued in other fora, with Francisco Rodriguez recently defending his conclusions in a new working paper (PDF). 

Venezuela’s Hospitals in Poor Health

The Los Angeles Times examines the problems besetting public hospitals in Venezuela. Experts say that, while the country’s healthcare system experienced problems before President Hugo Chávez came to power, childbirth death rates are on the rise and dengue and malaria cases have doubles since 1998. 

Ethanol Surges in Brazil

Dallas Morning News columnist Jim Landers writes about the sugarcane ethanol boom in Brazil, where ethanol outsells gas as a cheaper alternative, drawing billions in renewable energy investments.

Assistant Secretary for Western Hemisphere Affairs Thomas Shannon traveled to Buenos Aires Tuesday for a diplomatic visit with President Cristina Kirchner to boost U.S.-Argentine ties. During a presentation at the Americas Society/Council of the Americas last week, Shannon stressed the Bush administration’s intent “to make sure that our level of dialogue with Argentina is as open and fluid as possible.” 

Listen to a podcast of Shannon’s remarks at AS/COA.

Chile-NYT Controversy, Part II

Days after a New York Times article about Chile’s salmon industry sparked debate, a new controversy developed over plans to build dams in the Chilean Patagonian region. The newspaper published a letter from Robert F. Kennedy Jr. on April 8; Kennedy discussed a recent meeting with Chile’s President Michelle Bachelet in which she voiced opposition to big dams. The letter responded to an earlier Times editorial urging the Chilean government to block the building of the dams. 

Inequality in Chilean Education

A new study by the Universidad de Chile found that Chile’s education system ranks as the most segregated between rich and poor of the 40 nations investigated. 

Bolivia’s Constitutional Divide Continues

Leaders of the Catholic Church, charged with mediating between supporters and opponents of a new constitution, released a statement Tuesday warning that the dispute could lead to political violence. The Bolivian public is evenly split in its opinion of the draft of the constitution. President Evo Morales pledged constitutional reform when running for office in 2005.

Peru Reaches Investment Grade

Fitch ratings boosted Peru’s foreign currency issuer default rating to investment grade. RGE’s Latin America EconoMonitor takes a closer look at what achieving investment grade means for Peru, as well as the disparate reasons Latin American countries attract foreign direct investment. 

In a new article for Poder, COA Vice President Eric Farnsworth examines Alan García's efforts to position Peru to become one of Latin America’s fastest-growing economies.

Mining and the Environment in Peru

The Peruvian government hopes to pass an initiative that would lower the maximum permissible limits of emissions by the mining industry. But, reports Tierramérica, the proposed limits would continue to fall short of those set by international standards. 

Riots on Nicaragua’s Caribbean Coast

Pro and anti-government sympathizers clashed in Nicaragua’s northern Caribbean coast following election officials’ decision to postpone municipal elections in three Sandinista-controlled indigenous municipalities. President Daniel Ortega argued that elections cannot be held because the area remains devastated by Hurricane Felix. Iindigenous leaders say the suspension of elections is more likely related to questionable negotiations between local officials and international lumber companies.

Latin American Paradoxes

In a column for El País, former Mexican Foreign Minister Jorge Castañeda writes that, in recent years, Latin America has made important strides in democratic consolidation, economic growth, and an expanding middle class. Yet he also warns that the region faces new threats of conflicts between and within countries as well as the continued concentration of power in the hands of monopolies.