Weekly Roundup: Venezuela-Russia Deals, Brazil-Colombia Pacts, and U.S. Business at Bat for Immigration

Chavez Tightens Relations with Russia

Venezuelan President Hugo Chávez arrived in Moscow on July 22 with pen in hand to sign several arms’ purchase agreements for new submarines, helicopters, arms, and air defense weapons. The size of military deals between Russia and Venezuela may reach $5 billion over the course of the next decade. In addition to the arms pact, Chávez also signed new energy deals with Russian oil heavyweights TNK-BP, Lukoil, and Gazprom for exploration in Venezuela’s Orinoco belt.

An analysis appearing on the blog of international business lawyer Robert Amsterdam takes a look at the divergent Venezuelan and Russian spins on the agreements, warning that "Russia is not just exporting tanks, jets, and kalashnikovs to Venezuela, it is exporting legitimacy."

Chávez has also extended his energy alliances in the Central America as of late; the Financial Times explores the widening influence of Venezuela in 17 Central American and Caribbean countries through the promise of cheap oil.

Rumors of Russian Bombers to Be Deployed in Cuba

Strong reactions from high-ranking American military officials have arisen in the past two days after Russian newspaper Izvestia reported on July 21 that an unidentified source revealed plans of Russian bombers that may be sent to bases in Cuba. The move would be in response to plans for a U.S. missile defense system to be set up in Eastern Europe. The unconfirmed report raises memories of the 1962 Cuban Missile Crisis, but has been downplayed by experts on Kremlin affairs, reports the Washington Post.

Recommendations for a More Transparent Venezuela

The International Crisis Group released a report that takes a look at growing disenchantment with the administration of Venezuelan President Higo Chávez, saying his movement “has become bureaucratic, corruption is spreading, and the government’s management is poor.” The report provides a set of recommendations for the Veneuzuelan officials, oppositions leaders, civil society, and the governments of Cuba, Brazil, and the United States to support transparency and diplomatic improvements with Venezuela's neighboring countries.

Latin America Policy: McCain vs Obama

The Diplomatic Courier takes a look at the presumptive U.S. presidential nominees proposed policies toward Latin America. The analysis notes that while Republican Senator John McCain and Democrat Senator Barack Obama disagree on the issues of Cuba and trade policy, they agree on most matters. Instead, how these leaders are perceived is what is most important in the case of regional policy: “Latin Americans tend to see Mr. McCain as a George W. Bush retread” and “Mr. Obama, on the other hand, represents a new hope to Latin Americans.”

Meanwhile, Deutsche Welle’s Across the Pond blog examines the two candidates’ immigration policy, noting their similar stances despite their sparring over each other’s record on the issue.

U.S. Businesses Play Immigration Policy Role

A recent editorial in the New York Times reports that the private sector is playing an important role in stopping harsh, state-level immigration laws from winning approval, arguing that “ill-conceived laws go overboard in punishing well-meaning companies and their legal employees.”

On July 23, AS/COA launched a new whie paper, U.S. Business and Hispanic Integration: Expanding the Economic Contributions of Immigrants, which demonstrates a collective commitment by private sector leaders to integrating immigrant communities and offers best practices for encouraging Hispanic workforce development and community integration.

End of Imprisonment for Undocumented in Mexico

Starting July 22, Mexico will no longer imprison illegal immigrants, who previously could be sentenced to prison terms as long as six yeas. They will instead face fines in the range of $500 and $2,400. Mexico serves as a transit point for Central American migrants traveling to seek work in the United States.

Mexican Navy Intercepts Drug Smuggling Sub

The Mexican navy announced seizure of a submarine carrying nearly six tons of cocaine from Colombia. Though the capture occurred with the assistance off U.S. intelligence, the operation was carried out entirely by the Mexican military, which has stepped up patrols in the area off Mexico’s Pacific coast where the submarine was seized. An article in the Los Angeles Times suggests Mexico may find itself forced to consider developing a submarine force, previously deemed “expensive and unnecessary,” to counteract the growing use of submarine drug smuggling in its waters.

A new AS/COA hemispheric update takes a look at the Merida Initiative, which recently gained U.S. congressional approval.

Brazil and Colombia Get Closer

Brazilian President Luiz Inácio Lula da Silva visited Colombia on July 19 and 20 to celebrate Colombia’s national Independence Day. After meeting with President Álvaro Uribe, they released a joint communiqué with new agreements on bilateral integration, defense and military joint ventures, and cross-border economic and commercial cooperation.

Brazil also signed cooperation agreements to boost bilateral trade and energy with Trinidad and Tobago on July 23.

Digicams and Memory Cards Smuggled across S. Am Border

Award-winning journalist Marcelo Ballvé writes about the rising quantities of electronics getting smuggled across Paraguay border towns into Brazil. “For this new breed of smugglers, Paraguay is a treasure trove of cheap, digital cargo that can be sold to Brazilian middlemen and shopkeepers for high profits.”

In a recent speech, COA Vice President Eric Farnsworth examines the possibility of Hezbollah agents operating in certain South American border regions.

More Support for U.S.-Colombia FTA

In an op-ed published by the International Herald Tribune, U.S. Defense Secretary Robert Gates and his Colombian counterpart Minister Juan Manuel Santos spell out the benefits achieved in the last decade by the Colombian government in reducing violence and improving overall security. They insist that better standards of living, more foreign investments, and free trade should achieve lasting peace and stability in both countries.

Argentine Airline Back in State Control

Buenos Aires decided to renationalize struggling Aerolineas Argentinas, which has been plagued by problems such as high rates of delays and rising fuel prices. A BBC business analysis that examines the history of how the airline has changed hands over the decades also raises questions about its future, such as how the government plans to succeed where private enterprise has failed.

Bolivian Judge Presses for Referendum Delay

A high-level justice urged the Bolivian government to postpone an August 10 public referendum on whether or not the country’s president and governors should stay in power, with a delay allowing the constitutional court time to rule on the legality of the vote.

Constitutional Assembly in Ecuador Submits Draft

Ecuador’s constitutional assembly submitted a draft of a new constitution, which goes to vote in a public referendum on September 28. President Rafael Correa has already criticized the draft, saying assembly members committed several “barbarities” that need to be corrected, though the legal time allotted for changes has already passed.

A new AS/COA hemispheric update examines recent political events in Ecuador.

Mapping Out Energy Policy in Canada and Latin America

An analysis by the Foreign Policy Association’s Great Decisions 2008 breaks down three dominant energy policies in the Americas at a time of rising oil prices and growing environmental concerns. In the first case, countries such as Mexico and Venezuela serve as examples of oil producers that subsidize fuel. The second category includes Chile, Argentina, and Ecuador—importer countries that subsidize fuel to offset skyrocketing prices. Finally, the analysis examines fuel policy in Canada, a country with large oil reserves that does not subsidize oil and is taking measures to develop environmentally friendly policies.

USDA Loses Track of Canadian Cows

Following anxiety over the possibility of salmonella-infected Mexican tomatoes and jalapeños in U.S. supermarkets, an audit of the U.S. Department of Agriculture found the agency had failed to track hundreds of Canadian cattle coming into the United States, reports the Chicago Tribune. Canada has reported 13 cases of mad cow disease.