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LATIN AMERICA ADVISOR a DAILY PUBLICATION of the DIALOGUE Thursday, May 30, 2019 LATIN AMERICA ADVISOR A DAILY PUBLICATION OF THE DIALOGUE www.thedialogue.org Thursday, May 30, 2019 BOARD OF ADVISORS FEATURED Q&A TODAY’S NEWS Diego Arria Director, Columbus Group POLITICAL Devry Boughner Vorwerk How Has CFK’s Talks Between Corporate VP, Global Corporate Affairs Cargill Venezuelan Gov’t, Joyce Chang Global Head of Research, Move Altered Opposition End JPMorgan Chase & Co. Face-to-face talks between the Marlene Fernández Venezuelan government and Corporate Vice President for Argentina’s Race? opposition ended in Oslo with no Government Relations, Arcos Dorados agreements other than to continue Peter Hakim talks. President Emeritus, Page 2 Inter-American Dialogue Donna Hrinak President, Boeing Latin America BUSINESS Jon Huenemann Cuba to Legalize Retired VP, U.S. & Int’l Affairs, Philip Morris International Private Wi-Fi James R. Jones Chairman, Networks Monarch Global Strategies The new measures will also allow Craig A. Kelly imports of equipment such as Director, Americas International routers and are to take effect in Gov’t Relations, Exxon Mobil Former Argentine President Cristina Fernández de Kirchner recently announced that she would be running for vice president on a ticket headed by her former cabinet chief, Alberto Fernán- July, the government said. John Maisto Page 3 Director, U.S. Education dez. // File Photo: Facebook site of Cristina Fernández de Kirchner. Finance Group In a surprising turn, former Argentine President Cristina Nicolás Mariscal POLITICAL Chairman, Fernández de Kirchner announced on May 18 that she will be Grupo Marhnos running for vice president in the country’s October election, Colombian High Thomas F. McLarty III Q with her former cabinet chief, Alberto Fernández, as the Chairman, Court Orders McLarty Associates presidential candidate. She had been widely expected to challenge cur- Release of Ex- Carlos Paz-Soldan rent President Mauricio Macri, who is seeking a second term, by running Partner, FARC Leader DTB Associates, LLP for president herself. How has the announcement altered the race? Colombia’s Supreme Court said Beatrice Rangel Which issues will Alberto Fernández prioritize during the campaign? it must hear the case of Seuxis Director, AMLA Consulting LLC Why is he leading the ticket instead of Cristina, and does she have a bet- Hernández, also known as Jesús Santrich, because he is recog- Jaana Remes ter chance at a comeback by betting on the vice presidency? How big of Partner, nized as a member of Colombia’s McKinsey Global Institute a role will the corruption trial against Cristina Fernández, which recently Congress. He was freed this Ernesto Revilla began, play in the elections? month from prison before being Head of Latin American immediately rearrested. Economics, Citi Page 2 Gustavo Roosen Graciela C. Römer, director of Graciela Römer & Asocia- Chairman of the Board, Envases Venezolanos dos in Buenos Aires: “Cristina Kirchner (CFK)’s decision to Andrés Rozental name her former chief of staff as the head of the ticket has President, Rozental & Asociados and Senior affected the game of alliances in the upcoming presidential Policy Advisor, Chatham House A race. It was a clever move that aims to broaden the base of support for Shelly Shetty the Kirchnerista sector of Peronism, with the main objective of unifying Head of Sovereign Ratings, Latin America, Fitch a fragmented Peronism, which was a manifestation of an identity crisis Roberto Sifon-Arevalo that was heightened by CFK’s leadership during her term. The move would Managing Director, Americas Sovereign & Public Finance Ratings, allow her to break her own electoral ceiling—rejection levels are at around Standard & Poor’s 58-60 percent—to either win in the first round or win the runoff by drawing the support of independent sectors and, above all, provincial governors. Alberto Fernández is a skillful political operator with good access to the media, the business sector and to governors, and who, above all, Hernández // File Photo: Colombi- an Government. Continued on page 3 COPYRIGHT © 2019, INTER-AMERICAN DIALOGUE PAGE 1 LATIN AMERICA ADVISOR Thursday, May 30, 2019 POLITICAL NEWS said last month that the economy contracted NEWS BRIEFS 18 percent last year and would shrink another Talks End Between 25 percent this year. Some economists said Colombian Supreme Court that the central bank’s release of the economic Orders Release of Former Venezuelan Gov’t, data was an acknowledgment that Maduro’s government and that of his mentor and late FARC Rebel Leader Opposition predecessor, Hugo Chávez, decimated the Colombia’s Supreme Court on Wednesday country’s economy. Maduro’s government fre- ordered the release of former FARC rebel Talks between Venezuela’s government and quently blames the opposition and the United leader Seuxis Hernández, also known as Jesús the opposition ended Wednesday in Norway States, which has imposed multiple rounds of Santrich. Hernández, who is wanted in the without any agreement other than both sides sanctions on Venezuelan officials and entities, United States on cocaine trafficking charges, saying they were open to future talks, the for the country’s economic devastation. was released earlier this month by a special Financial Times reported. President Nicolás tribunal before being immediately rearrested on Maduro and opposition leader Juan Guaidó had what the attorney general’s office said was new sent envoys to Oslo to meet face-to-face. The ECONOMIC NEWS evidence. However, the Supreme Court ruled talks were the first since Guaidó swore himself Wednesday that since Hernández is recognized in as the country’s acting president in January. Nationwide Strike as a member of the Colombian Congress, the The opposition argues that Guaidó, the leader Supreme Court must hear his case. of the National Assembly, is the country’s Shutters Businesses legitimate interim president, saying Maduro’s re-election last year was fraudulent. The United in Argentina States and dozens of other countries recognize Twenty-One Killed Guaidó as president, but Maduro maintains the Argentine unions held a nationwide strike on in Crash of Bus, support of Venezuela’s military. “This meeting Wednesday, causing banks to close, airlines Tractor-Trailer in Mexico ended without agreement,” Guaidó’s team to ground planes and a soccer final to be A bus carrying Catholic pilgrims collided with a said after the talks ended Wednesday in Oslo. postponed as anger over the country’s dire tractor-trailer in the Mexican state of Veracruz “We thank the government of Norway for its economic situation grows, The Wall Street on Wednesday morning, killing 21 people and willingness to contribute to a solution to the Journal reported. CGT, Argentina’s largest injuring 30, The New York Times reported. The chaos that our country is suffering.” Maduro’s trade union, launched the one-day strike to bus, heading to Chiapas from Mexico City, government did not comment on the end of the protest President Mauricio Macri’s econom- crashed into the tractor-trailer, flipped over talks. On Tuesday, the European Union’s foreign ic management, as inflation hit 56 percent and burst into flames. There was some initial policy chief Federica Mogherini, named former last month, among the highest rates in the confusion over what caused the accident, but Inter-American Development Bank President the Veracruz Secretariat for Civil Protection Enrique Iglesias as its special advisor for Ven- Every day, people said Wednesday that the tractor-trailer’s brakes ezuela. Iglesias is an economist and a former allegedly failed. Authorities are still investigat- Uruguayan foreign minister. In a rare move are worse off.” ing the accident. earlier this week, Venezuela’s central bank said — Hugo Moyano the Andean nation’s economy contracted 19.2 percent in the first nine months of 2018 as world. The economy contracted 6.8 percent compared to the same period a year earlier, The in March. “Every day, people are worse off ... Measure to Weaken Wall Street Journal reported. The last time the It’s a disaster what’s happening,” union leader Amazon Environmental country’s central bank released economic sta- Hugo Moyano told The Wall Street Journal. Laws Fails in Brazil tistics was for 2015. The central bank also said “If [Macri] doesn’t understand that, then it’s inflation was 130,060 percent in all of 2018. evident he doesn’t have the capacity to govern An attempt to weaken protection of the Ama- While that figure is the world’s highest rate of our country.” Public transportation was shut zon forest has failed in Brazil, Reuters reported inflation, it is far below estimates from private down across the country, and some public Wednesday. Government whip Fernando economists and the International Monetary and private schools did not open as teachers Bezerra said that a temporary presidential Fund. The IMF said in April that Venezuela’s participated in the strikes, but businesses in decree that required congressional approval by inflation totaled 929,790 percent last year, and several cities remained open as usual, La Na- Monday will not be voted on before then. The it said last October that it expected inflation to ción reported. Outside of Buenos Aires, ports measure would have extended by a year the reach 10 million percent this year. The IMF also that export grains were closed. The strike, the deadline for landowners to replant minimum forested areas on their properties. COPYRIGHT © 2019, INTER-AMERICAN DIALOGUE PAGE 2 LATIN AMERICA ADVISOR Thursday, May 30, 2019 fifth nationwide protest since Macri took office FEATURED Q&A / Continued from page 1 in 2015, will cost the economy approximately $900 million, according to finance ministry has an image of historical affinity with the coup similar to that used in Brazil to topple estimates. Security Ministry Patricia Bullrich center-right. His appointment seeks, im- Dilma and imprison Lula, or in Ecuador said the strike was politically motivated and an age-wise, to move toward the political center to persecute former President Correa.
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