Argentine Business Leaders Positive About Cristina Fernandez Re-Re-Election Chances Fading
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Headlines Week#4 October
Argentine business leaders ‘positive’ about Cristina Fernandez re-re-election chances fading
Leaders of the Argentine business sector find “positive” that possibilities of Cristina Fernández re-re- election are fading, said FIAT Argentina CEO Cristiano Ratazzi who also questioned the so-called Kirchner development-inclusion model.
Argentine bio-diesel exports to EU threatened by new duties: EC votes on Tuesday
Argentina's bio-diesel industry warned it faces collapse if Europe makes good on a threat to impose stiff duties on their product next month. The European Commission earlier this month moved to raise duties on Argentine and Indonesian bio-fuels in response to alleged dumping.
Argentina pays 500m dollars and settles pending disputes with private companies
Argentina agreed to compensate five companies that won rulings over investment disputes as the country looks for the World Bank to approve 3 billion dollars in loans. The companies agreed to accept payment in dollar bonds and to reduce the principal amount of their awards by 25%, the Argentine economy ministry said Friday in a statement.
Opposition to Cristina Fernandez consolidates for mid-term election in two weeks
Argentine President Cristina Fernandez candidate for the 27 October mid term election in the crucial Buenos Aires province is trailing by eight points his main rival, Sergio Massa who is leading with 41.2% of vote intention according to the latest public opinion poll released by Poliarquía, one of the country’s most respected pollsters.
Argentina established a TAC of 312.000 tons of hake for the current year
Argentina's National Fisheries Coordination Agency reported that the Federal Fisheries Council (CFP) established fishing quotas for hake (Merluccius hubbsi) for the current year: 277,000 tons for the south area (south of parallel 41°SL) and 35,000 tons for the north area (north of parallel 41°SL).
Argentine economy 12 month expansion in August was 4%
Argentine economic activity grew 4% in August from the same month last year, the government said on Friday, growth that far exceeded market expectations.
Agrochemicals linked to rise in disease
Some see a link between huge use of pesticides and increase in illness across the country
Farmworker Fabián Tomasi was not trained to use protective gear as he pumped pesticides into crop dusters. Now at 47, he's a living skeleton.
* By M. Fernanda Uruguay among the countries in Latam with the highest power costs
Uruguay is among the Latin-American and Caribbean countries with the highest power costs according to a paper from the Inter-American Development Bank, IDB, Bloomberg and New Energy Finance. This is extensive both for residential consumers and for manufacturing and large consumers.
Brazil confident Paraguay will be returning to Mercosur before the end of the year
Brazil trusts Paraguay will fully return to Mercosur before the end of the year, said Brazil's Executive foreign policy advisor Marco Aurelio Garcia in a Sunday edition interview with the influential Folha de Sao Paulo.
* By M. Fernanda Argentine business leaders ‘positive’ about Cristina Fernandez re-re-election chances fading
Leaders of the Argentine business sector find “positive” that possibilities of Cristina Fernández re-re- election are fading, said FIAT Argentina CEO Cristiano Ratazzi who also questioned the so-called Kirchner development-inclusion model.
“Democracy works as it is supposed to work, with people alternating in power and with no sense of risks of totalitarianism. Therefore, there is a significant optimism among businessmen,” Ratazzi told reporters but hoped for “much more than ten years of development” so that Argentina “regains a position in the world it lost” during the 90’s neo-liberal decade that led to the country’s deindustrialisation.
Following with his analysis on the domestic scenario, Ratazzi took the chance to question high inflation trends affecting growth. “Inflation problems are pretty much serious, I hate inflation. I would like to be at 5% levels,” the FIAT chief considered.
“ We as well want one-digit inflation rates but talks must be held with those that set prices, the government is certainly not raising prices,” head of the pro-government CGT labour confederation Antonio Caló fired back calling on union, business and political sectors to be “responsible.”
“We have to work along each other and set an agreement so that inflation drops,” Caló said ramping up his criticism of Ratazzi.
“It makes me feel sorry listening to an Argentine entrepreneur that makes money in Argentina criticizing this model. There has to be an internal criticism, we must work all together for the country’s good,” the union leader assured.
Argentine bio-diesel exports to EU threatened by new duties: EC votes on Tuesday
Argentina's bio-diesel industry warned it faces collapse if Europe makes good on a threat to impose stiff duties on their product next month. The European Commission earlier this month moved to raise duties on Argentine and Indonesian bio-fuels in response to alleged dumping.
The increases would be on top of temporary duties the Commission imposed on Argentina in May.
“The European Commission confirmed its decision to close the bio-diesel market for Argentina, putting the whole Argentine soya chain in check,” the Argentine Biofuel Chamber said in a statement.
Argentina is the world's top producer of bio-diesel, which is made from soybeans, producing 2.5 million tons in 2012, of which 1.6 million tons are exported.
The trade dispute first flared in April 2012, when Spain cut back its bio-diesel imports after President Cristina Fernandez nationalized a majority stake in Argentine holdings of Spain's Repsol oil company.
The Argentine bio-fuels chamber said the EC met with Argentine industry representatives and foreign ministry officials on Wednesday in Brussels. The EC has scheduled a vote Tuesday on a proposal to impose duties of between 22 and 25% on Argentine bio-diesel, to go into effect November 28.
“ The application of this measure would cause the collapse of the Argentine bio-diesel industry,” the chamber said. The group denied that Argentine producers were dumping product below cost, and accused
* By M. Fernanda the EC of protectionism.
The European policy “will have economic and social repercussions in Argentina and will negatively impact the price of diesel in Europe,” it warned.
Argentina has threatened to file a complaint with the World Trade Organization but producers fear they won't be able to export to Europe again before 2016. The 8% duties in place since May have already led to a 75% drop in Argentine exports to Europe compared to levels during same period last year, according to the chamber.
Argentina pays 500m dollars and settles pending disputes with private companies
Argentina agreed to compensate five companies that won rulings over investment disputes as the country looks for the World Bank to approve 3 billion dollars in loans. The companies agreed to accept payment in dollar bonds and to reduce the principal amount of their awards by 25%, the Argentine economy ministry said Friday in a statement.
Argentina will hand over local law bonds due 2015 and 2017 with a face value of 506 million for the 677 million dollars of claims, Minister Hernan Lorenzino revealed on making the announcement.
Argentina has been sued more than any other country in the World Bank’s arbitration court (International Centre for the Settlement of Investment Disputes) by investors, utilities and energy companies pursuing reimbursement for currency devaluations, nationalizations and rate freezes after the nation’s 95 billion dollars default in 2001.
To enforce existing arbitration judgments, the US, the World Bank largest shareholder, suspended in March 2012 Argentina’s participation in a trade program that allows certain goods from developing countries to be imported duty-free.
“The agreements with the companies that had obtained firm rulings, which allow for the normalization of 677 million of debt, were obtained in extremely favourable conditions for the country,” the ministry said, and added that “the Republic won’t be using cash or international reserves” for the payment.
Companies involved are Blue Ridge Investments LLC, which owned rights to CMS Gas Transmission Company claims, CC-WB Holdings LLC, which owned rights to Continental Casualty Company claims, Vivendi Universal Sociedad Anonima, Cia. de Aguas del Aconquija Sociedad Anonima and Azurix Corp. Argentina also agreed to compensate NH-UN Holdings LLC, which owned claims from National Grid (NG).-
In addition, the companies agreed to invest 68 million dollars in a government bond that matures in 2016 and carries a 4% annual interest rate, the Economy Ministry said. Proceeds from the so-called BAADE bond will be used to finance energy projects in Argentina.
Argentina is settling the outstanding claims in part to tap World Bank loans, Buenos Aires-based newspaper Ambito said Oct. 10. The WB is considering lending 3 billion to be disbursed through 2016, Economy Minister Hernan Lorenzino said Oct. 10.
Argentine bonds have rallied since Oct. 10 on speculation the nation will obtain fresh funds from the
* By M. Fernanda World Bank and settle some of the outstanding arbitration claims in a sign the government is normalizing relations with international financial institutions.
Opposition to Cristina Fernandez consolidates for mid-term election in two weeks
Argentine President Cristina Fernandez candidate for the 27 October mid term election in the crucial Buenos Aires province is trailing by eight points his main rival, Sergio Massa who is leading with 41.2% of vote intention according to the latest public opinion poll released by Poliarquía, one of the country’s most respected pollsters.
Massa who basically represents the growing dissatisfaction with President Cristina Fernandez administration, if successful in his bid could also emerge as serious candidate to the leadership of the Peronist movement that dominates Argentine politics in an almost hegemonic way and thus a formidable contender for the presidential election in 2015, when the widow of Nestor Kirchner must step down.
Anyhow Martin Insaurralde her hand picked candidate is not doing that bad because with 33.2% he is three points up from the 29.6% he managed last August when primaries were held. At the time Massa received 34.9% which also means he has grown faster.
Nevertheless the gap has shortened because at the end of September before Cristina Fernandez underwent subdural surgery to remove a blood clot, the difference stood at eleven points, and this means that somehow there is a positive effect for Insaurralde from the president’s medical condition.
“In effect there is a positive effect for the government in these weeks because of the president’s health condition. But it’s not substantial: the order of the candidates remains: who wins and who loses, just an adjustment of numbers”, said Fabian Perechodnik, head of Poliarquía.
“There was also a strong campaign effort for Insaurralde with the support from Buenos Aires province governor Daniel Sciloi, and the speech was more moderate”, added Perechodnik.
With Massa and Insaurralde holding almost 75% of vote intention in the province of Buenos Aires, the largest and most influential in Argentina (40% of the country’s vote), there’s not much room left for the remaining candidates. In effect both leading candidates are ‘sucking’ support from the minor hopefuls.
The opinion poll covered 2.200 phone interviews, for people in voting age, 18-plus and was done between October 14 and 17, with a plus/minus error of 2.1%.
Another opinion poll shows that the image of President Cristina Fernandez, (60), has increased considerably since she underwent surgery for the blood clot last 8 October.
According to Management & Fit, 43.9% now have a positive image of the president while the negative stands at 30.2%. This contrasts with a previous poll from 4 October, when the difference was negative in 7.8% compared to the 13.7% positive of the latest.
This latest positive image is the highest since May 2012 compared to the 34% at the beginning of October. The poll included 800 interviews between October 11 and 17.
“The health condition of the president triggered empathy and solidarity in public opinion, as could be
* By M. Fernanda expected and this is reflected in a better appraisal of her performance” said Mariel Fornoni, head of F&T Public Opinion.
Argentina established a TAC of 312.000 tons of hake for the current year
Argentina's National Fisheries Coordination Agency reported that the Federal Fisheries Council (CFP) established fishing quotas for hake (Merluccius hubbsi) for the current year: 277,000 tons for the south area (south of parallel 41°SL) and 35,000 tons for the north area (north of parallel 41°SL).
In addition, the authority set the catch quota for each vessel during 2013. The estimate was made working on a Total Allowable Catch (312,000 tons), reallocations and social reserves, as indicated by Resolution 22/12.
The report also indicates that those interested can visit the official document detailing the list of vessels, percentages and distributed tons.
Likewise, the CFP set the Individual Transferable Catch Quota (CITC) of three other species of hake:
• Hoki (Macruronus magellanicus): 94,000 tons;
• Patagonian toothfish (Dissostichus eleginoides): 3,500 tons;
• Southern blue whiting (Micromesistius australis): 33,000 tons.
Although one of the objectives of the establishment of individual catch quotas is to provide greater legal certainty to industry members, a vessel owner consulted by Pescare said it is “insignificant” when it comes to meeting the high cost of fuel for boats.
That view is shared by most members of the fishing industry, so they are working on finding ways to reduce operating costs
According to data provided by Argentina's Under Secretary of Fisheries and Aquaculture, which is under the Ministry of Agriculture, Livestock and Fisheries (MINAGRI), last year between January first and 31 December 2012, a total of 255,771.4 tons of common hake were landed; 58,573.1 tons of hoki; 7,080.1 tons of southern blue whiting, and 3,121.4 tons of toothfish.(FIS).-
Argentine economy 12 month expansion in August was 4%
Argentine economic activity grew 4% in August from the same month last year, the government said on Friday, growth that far exceeded market expectations.
The percentage is based on the monthly EMAE economic activity index, a close proxy for gross domestic product. The government's INDEC statistic office also said in a statement that August economic activity rose 0.4% from July.
For full year 2013, the government of President Cristina Fernandez expects GDP to expand 5.1%, following GDP growth of 1.9% in 2012 and 8.9% in 2011, according to official figures.
* By M. Fernanda Last year's expansion was restricted by weak global demand, a drought-hit grain harvest, high inflation and the negative impact of currency controls on investment in Latin America's No. 3 economy.
The region as a whole will likely struggle to lift economic growth next year after a disappointing 2013, raising the stakes for policymakers already grappling with prospects of higher market interest rates in the United States.
Agrochemicals linked to rise in disease
Some see a link between huge use of pesticides and increase in illness across the country
Farmworker Fabián Tomasi was not trained to use protective gear as he pumped pesticides into crop dusters. Now at 47, he's a living skeleton.
Schoolteacher Andrea Druetta lives in a town where it is illegal to spray agrochemicals within 500 metres of homes, and yet soy is planted just 30 metres from her back door. Recently, her boys were showered in chemicals while swimming in their backyard pool.
Sofía Gatica’s search for answers after losing her newborn to kidney failure led to the country’s first criminal convictions for illegal spraying last year. But 80 percent of her neighbours’ children surveyed carry pesticides in their blood.
US biotechnology has turned Argentina into the world’s third-largest soy producer, but the chemicals powering the boom aren't confined to soy and cotton and corn fields. The Associated Press documented dozens of cases where these poisons are used in ways specifically banned by existing law.
Now doctors are warning that uncontrolled pesticide use could be the cause of growing health problems among the 12 million people who live in the nation’s vast farm belt.
In Santa Fe province, the heart of Argentina’s soy industry, cancer rates are two times to four times higher than the national average. In Chaco, the nation's poorest province, children became four times more likely to be born with devastating birth defects in the decade since biotechnology dramatically expanded industrial agriculture.
“The change in how agriculture is produced has brought, frankly, a change in the profile of diseases,” said Dr. Medardo Ávila Vázquez, a pediatrician who co-founded Doctors of Fumigated Towns. “We’ve gone from a pretty healthy population to one with a high rate of cancer, birth defects, and illnesses seldom seen before.”
The new normal
Once known for its grass-fed beef, Argentina has undergone a remarkable transformation since 1996, when the St. Louis-based Monsanto Company marketed a promising new model of higher crop yields and fewer pesticides through its patented seeds and chemicals.
Today, all of Argentina's soy and nearly all its corn, wheat and cotton are genetically modified. Soy farming tripled to 47 million acres, and cattle are now fattened in feedlots on corn and soy.
But as weeds and insects became resistant, farmers increased the chemical burden ninefold, from 34
* By M. Fernanda million litres in 1990 to more than 317 million litres today.
Overall, Argentine farmers apply an estimated 1.95 kilograms of agrochemical concentrate per acre, more than twice what US farmers use, according to an AP analysis of government and pesticide industry data.
Monsanto’s “Roundup” pesticides use glyphosate, one of the world's most widely applied and least toxic weed killers. The US Environmental Protection Agency and many others have declared it to be safe if applied properly. In May, the EPA even increased allowable glyphosate residues on foods.
Despite the wholesale adoption of Monsanto’s model, safety rules vary.
Some of Argentina's 23 provinces ban spraying within 3 kilometres of populated areas; others say farmers can spray as close as 50 metres. About one-third set no limits, and rule-breakers are very rarely punished.
A federal law requires toxic chemical applicators to suspend activities that threaten public health, “even when the link has not been scientifically proven,” and “no matter the costs or consequences,” but it has never been applied to farming, the Auditor General found last year.
In response to soaring complaints, President Cristina Fernández de Kirchner ordered a commission in 2009 to study the impact of agrochemical spraying on human health. Its initial report called for “systematic controls over concentrations of herbicides and their compounds ... such as exhaustive laboratory and field studies involving formulations containing glyphosate as well as its interactions with other agrochemicals as they are actually used in our country.”
But the commission hasn't met since 2010, the auditor general found.
Agriculture Secretary Lorenzo Basso said people are being misinformed.
“I've seen countless documents, surveys, videos, articles in the news and in universities, and really our citizens who read all this end up dizzy and confused,” he said. “Our model as an exporting nation has been called into question. We need to defend our model.”
In a written statement, Monsanto spokesman Thomas Helscher said the company “does not condone the misuse of pesticides or the violation of any pesticide law, regulation, or court ruling.”
Using it early and often
Argentina was among the earliest adopters of the “no-till” method US agribusinesses promoted. Instead of turning the topsoil, spraying pesticides, and then waiting until the poison dissipates before planting, farmers sow seeds and spray afterward without harming “Roundup Ready” crops genetically modified to tolerate specific poisons. Farmers can now harvest multiple crops each year on land that wasn't profitable before.
But pests quickly develop resistance to the same chemicals applied to identical crops on a vast scale, forcing farmers to mix in more toxic poisons, such as 2,4,D, used in “Agent Orange” to defoliate Vietnam's jungles. Some Argentine regulators called for labels warning that these mixtures should be limited to “farm areas far from homes and population centres,” but they were ignored, the auditor found.
“Glyphosate is even less toxic than the repellent you put on your children's skin,” said Pablo Vaquero, Monsanto's spokesman in Buenos Aires. “That said, there has to be a responsible and good use of these
* By M. Fernanda products, because in no way would you put repellent in the mouths of children and no environmental applicator should spray fields with a tractor or a crop-duster without taking into account the environmental conditions and threats that stem from the use of the product.”
Out in the fields, Tomasi was routinely exposed.
“ I prepared millions of litres of poison without any kind of protection, no gloves, masks or special clothing. I didn't know anything” he said.
Teachers in Entre Rios began to file police complaints this year. They said sprayers failed to respect 50- metre limits at 18 schools, dousing 11 during class. a troubling survey
Dr. Damián Verzenassi, who directs the Environment and Health programme at the National University of Rosario’s medical school, decided to try to figure out what was behind an increase in cancer, birth defects and miscarriages in Argentina’s hospitals.
“We didn’t set out to find problems with agrochemicals. We went to see what was happening with the people,” he said.
Since 2010, this house-to-house epidemiological study has reached 65,000 people in Santa Fe province, finding cancer rates two times to four times higher than the national average, including breast, prostate and lung cancers. Researchers also found high rates of thyroid disorders and chronic respiratory illness.
“ It could be linked to agrochemicals,” he said. “They do all sorts of analysis for toxicity of the first ingredient, but they have never studied the interactions between all the chemicals they’re applying.”
Dr. María del Carmen Seveso, who has spent 33 years running intensive care wards and ethics committees in Chaco province, became alarmed at regional birth reports showing a quadrupling of congenital defects, from 19.1 per 10,000 to 85.3 per 10,000 in the decade after genetically modified crops and their agrochemicals were approved in Argentina. chemicals in the water
Determined to find out why, she and her colleagues surveyed 2,051 people in six towns in Chaco, and found significantly more diseases and defects in villages surrounded by industrial agriculture than in those surrounded by cattle ranches. In Avia Terai, 31 percent said a family member had cancer in the past 10 years, compared with 3 percent in the ranching village of Charadai.
Visiting these farm villages, the AP found chemicals in places where they were never intended to be.
Claudia Sariski, whose home has no running water, says she doesn’t let her twin toddlers drink from the discarded poison containers she keeps in her dusty backyard. But her chickens do, and she uses it to wash the family’s clothes.
“They prepare the seeds and the poison in their houses. And it’s very common, not only in Avia Terai but in nearby towns, for people to keep water for their houses in empty agrochemical containers,” explained surveyor Katherina Pardo. “Since there’s no treated drinking water here, the people use these containers anyway. They are a very practical people.”
* By M. Fernanda The survey found diseases Seveso said were uncommon before — birth defects including malformed brains, exposed spinal cords, blindness and deafness, neurological damage, infertility, and strange skin problems.
Aixa Cano, a shy 5-year-old, has hairy moles all over her body. Her neighbour, 2-year-old Camila Verón, was born with multiple organ problems and is severely disabled. Doctors told their mothers that agrochemicals may be to blame.
“They told me that the water made this happen because they spray a lot of poison here,” said Camila’s mother, Silvia Achával. “People who say spraying poison has no effect, I don’t know what sense that has because here you have the proof,” she added, pointing at her daughter.
It’s nearly impossible to prove that exposure to a specific chemical caused an individual’s cancer or birth defect. But like the other doctors, Seveso said their findings should prompt a rigorous government investigation. Instead, their 68-page report was shelved for a year by Chaco’s health ministry.
“There are things that are not open to discussion, things that aren’t listened to,” Seveso concluded.
Scientists argue that only broader, longer-term studies can rule out agrochemicals as a cause of these illnesses.
“That’s why we do epidemiological studies for heart disease and smoking and all kinds of things,” said Doug Gurian-Sherman, a former EPA regulator now with the Union of Concerned Scientists. “If you have the weight of evidence pointing to serious health problems, you don’t wait until there’s absolute proof in order to do something.”
Uruguay among the countries in Latam with the highest power costs
Uruguay is among the Latin-American and Caribbean countries with the highest power costs according to a paper from the Inter-American Development Bank, IDB, Bloomberg and New Energy Finance. This is extensive both for residential consumers and for manufacturing and large consumers.
The report shows that homes pay an average of 26 US cents per kilowatt/hour, while large consumers on average 208 dollars per Megawatt/hour. This means that homes have the highest rate in South America and the fourth highest among 26 countries surveyed in the region and the Caribbean.
The document points out that in this context of high prices, large consumers could feel attracted to bilateral power contracts with renewable energy commercial projects, while small consumers could take advantage of other measurement policies to find solutions at a small scale.
Uruguay ranked 6 out of 26 countries surveyed in the region and improved four points over last year when it comes to “Climatescope 2013” on new frontiers for energy investments with low emissions of carbon in Latam and the Caribbean.
However the document also points out that despite the fact Uruguay is one of the smallest countries in South America it has 304 MW of clean energy installed, which is equivalent to 11% of the total 2.8 GW from the region. The report also points out that Uruguay is targeting 15% renewable energy by 2015 and it “all looks as if Uruguay is going to reach that goal”, since Uruguay “has become a very dynamic
* By M. Fernanda market in the wind energy sector”.
The report also anticipated that in coming years Uruguay will increase “significantly” the capacity and investments in renewable energies.
To elaborate on the paper and its conclusions four aspects were taken into account: the most relevant in the current framework for policies; the structure of the energy market; the level of installed capacity for clean energy in the web and size of the market.
This is followed by investment in clean energy and loans for projects referred to climate change, carbon low emissions deals and value chains of clean energy and conditions for the carbon emission compensation projects plus corporate actions towards the mitigation of such emissions.
Brazil confident Paraguay will be returning to Mercosur before the end of the year
Brazil trusts Paraguay will fully return to Mercosur before the end of the year, said Brazil's Executive foreign policy advisor Marco Aurelio Garcia in a Sunday edition interview with the influential Folha de Sao Paulo.
“We know the return is going to take place and we hope it occurs before the end of the year, so that Paraguay can participate in the summit of Caracas in December” said President Dilma Rousseff's advisor.
Paraguay was suspended from Mercosur since 29 July 2012 until last 15 August when current president Horacio Cartes took office. Paraguay with Argentina, Brazil and Uruguay are founding members of the bloc which incorporated Venezuela in 2012, virtually the same day it applied the 'democratic clause' suspending one of its members.
Paraguay was sanctioned following the removal of then president Fernando Lugo, which Mercosur defined as a 'rupture of democratic order' but was overcome with the presidential elections of last April and the inauguration of Cartes.
According to Garcia, Cartes has yet to announce the formal return of Paraguay to Mercosur, and “there are great efforts to achieve that goal”.
To that respect he mentioned the recent visit of Venezuelan Foreign minister Elías Jaua to Asunción, during which diplomatic relations between the two countries were formalized after their rupture in June 2012.
“That was a significant gesture”, said García who reiterated he was confident Paraguay would be formally reintegrated and attending the Mercosur twice annual summit to take place in the Venezuelan capital next December.
Brazil and other members need to have the bloc re-united before the end of the year when Mercosur must exchange proposals for a long pending trade agreement with the European Union. EU demands all members participate in the negotiations.
* By M. Fernanda