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CA-Briefing-16-Novem 16 November 2016 Vol 4, Issue 20 Ortega re-elected in landslide victory Nicaraguan President Daniel Ortega has been re-elected to serve a third consecutive term in a landslide victory. Ortega’s Frente Sandinista de Liberación Nacional won 72.5% of the vote, whilst his closest rival, Maximino Rodríguez of the Partido Liberal Constitucionalista, scored only 15%. Speaking after his victory was confirmed, Ortega described his election as an endorsement of “peace and stability,” and pledged to work with Nicaraguan families to uphold peace and national unity. News of Ortega’s success was met with anger in some regions of the country, with protest marches culminating in clashes between Sandinistas and supporters of the indigenous peoples’ Yatama party in the city of Bilwi reported in national and regional news outlets. The US State Department has criticised the election process, and claimed to be ‘deeply concerned by the flawed presidential and legislative electoral process in Nicaragua.’ An independent team from the OAS was present during elections, and is due to present a report on proceedings in six months’ time following an agreement between the Nicaraguan government and the OAS to work together to ‘implement a mechanism of conversation and exchange.’ Central American countries react to Trump’s surprise victory Citizens of Central American nations have been reacting to the news of Donald Trump’s unexpected victory in November 8’s US elections. Regional media made clear the concern amongst migrant communities in the US that the election results, which handed control of both houses of Congress to the Republican party, would see Trump swiftly putting into effect his proposals to deport some millions of undocumented migrants and to construct a wall along the border with Mexico. Nicaraguan newspaper El Nuevo Diario highlighted worries over a social climate of growing hostility towards Latino immigrants in the wake of an often divisive presidential campaign. Politicians and the media expressed further anxiety over the future of the DR-Cafta free trade agreement. Rolando Paiz, President of the Asociación Guatemalteca de Exportadores (Agexport), stated that patience was needed on the part of government and business, as the details of Trump’s economic policies and priorities were not yet clear. A number of senior politicians from Central America have written to Mr Trump to formally offer their congratulations, including Juan Orlando Hernández of Honduras and Daniel Ortega of Nicaragua, who stated that citizens of Nicaragua “believe it is possible to work with the United States” in order to “give priority to peace.” Elias Antonio Saca, former Salvadoran President, arrested for fraud Elias Antonio Saca, who served as President of El Salvador from 2004 to 2009, was arrested on October 30 over allegations of embezzlement and money laundering. Saca, who denies all accusations, is now under house arrest after the Salvadoran authorities froze his accounts earlier this week. He is the third of El Salvador’s former presidents currently facing investigation for allegations of fraud. Saca was arrested, along with six other men (two of whom served as officials in his administration) on charges of embezzling funds which, El Diario de Hoy reported, are believed to amount to some US$272m. Honduran President to seek re-election The current President of Honduras, Juan Orlando Hernández, of the Partido Nacional, will run for the presidency again after his current mandate concludes in 2018. If elected, he will then serve as President for a further 4 years until 2022. The announcement comes two days after the US embassy in Honduras officially confirmed that it approved Hernández’ intention to seek a second period in office. Honduras’ constitution has prohibited the President from running for re-election since 1982, but the Supreme Court overturned these restrictions last year, clearing the path for Hernández. The ruling will allow other ex-presidents to run against Hernández, including Manuel Zelaya, Roberto Sauzo and Carlos Flores. The announcement was met with angry protests amongst students in the country’s capital, Tegucigalpa. Truckers’ strike in Guatemala City comes to an end A blockade by Guatemalan truck drivers in Guatemala City has concluded after nine days of strikes by transport workers which paralysed traffic within the capital and disrupted shipments at major national ports. The blockades particularly impacted the main highways leading into and out of Guatemala City, as well as the Quetzal, San Jose and Santo Tomás ports. The border crossing with Mexico was also effected. The strike, which began on October 27, ended last Friday (November 4) with a bilateral announcement from President Jimmy Morales and senior workers’ representatives. Transport union members had been protesting the municipal government’s refusal to change restrictions on the circulation of heavy goods vehicles in the capital city. Limits on the movements of HGVs will remain in place from Mondays-Fridays between 05.00-09.00, and 16.30-21.00, but the vehicles will now be allowed in certain areas of the city on Saturdays. The strike is estimated to have caused some Q3,600 m (US$479.78m) of losses to businesses in the city. Telefonica to invest US$250 million in 4G in El Salvador Spanish telecommunications company Telefonica (operating as Movistar El Salvador) has announced plans to invest US$250m in LTE (long term evolution) technology in El Salvador over the course of the next three years. The investment will allow the network provider to launch 4G wireless services, which are set to begin in San Salvador and La Libertad in December 2016, before reaching the rest of the county in Q1 2017. Movistar will initially be the only provider of 4G wireless in El Salvador which has, until now, remained the only country in Central America without access to the service. Negotiations surrounding Central America-South Korea Free Trade Agreement enter final stages The seventh and final stage of negotiations over a new Free Trade Agreement between South Korea and Central America was concluded on 31 October in Seoul. Issues discussed during the meeting included: - Market access - Country of Origin regulations - Intellectual Property law - Services and Investment - The institutional framework of the agreement Alexander Mora, Minister of Commerce for Costa Rica, praised the work of the Central American negotiating team, led by his deputy Jhon Fonseca, saying that they had succeeded in securing a balanced deal which met with the demands of the regional industrial and services sectors. Guatemalan Deputy Minister for International Trade and Integration Enrique Lacs explained that the FTA will now be submitted to individual Ministers with responsibility for External Trade who, it is hoped, will sign the agreement in its present form. It will enter into force once this had been achieved. IMF reviews Honduras’ economic performance The Executive Board of the IMF has completed its most recent review of Honduras’ performance under the economic programme put in place in December 2014. The support programme, which combines a three-year Stand-By Arrangement and a two-year Stand-By Credit Facility, amounted to a total of US$188.6m (equivalent to 100% of Honduras’ IMF quota at the time). In response to positive measures taken by the Honduran authorities, Acting Chair and Deputy Managing Director of the Executive Board praised the country’s “considerable progress in restoring macroeconomic stability, reducing the fiscal deficit, and tackling some structural issues.” Economic forecasts for Honduras’ 2017 performance will now be reconsidered by the IMF in collaboration with government Minister Wilfredo Cerrato. Honduras’ economy expanded by 3.6% in 2015, and is forecast to perform well for the remainder of 2016. Central American Business Council News Meeting with Special Advisor to President Sánchez Cerén 10:30-12:00, 11 November 2016 El Salvador Embassy, Central London Members of the Council met with the new El Salvador Ambassador Elisabeth Hayek Weinmann and David Díaz Benavides, Special Advisor to President Sánchez Cerén. Mr Benavides detailed the wide- range of infrastructure and investment projects for which the government is holding international tenders, as part of its 2020 development programme. The projects on offer cover a number of areas including road, port and airport infrastructure, insurance and financials, agribusiness, healthcare, and tourism. He also detailed recent hotel investments and related tourism opportunities in the country, particularly in San Salvador, San Miguel and Santa Ana, all of which have a significant migrant community in the US. The Caribbean Council will be circulating a full list of international tenders on offer to Premier members in the coming weeks as it becomes available and further information on these opportunities can be made available on request. Upcoming Events Roundtable meeting with Dr Paul Oquist 10.00-11.00, 24 November 2016 Venue TBC The Central American Business Council will be hosting the current Minister Secretary of Presidency, and Private Secretary for National Policies for Nicaraguan President Daniel Ortega Saavedra, Dr Paul Oquist. The event will provide an opportunity for discussion of construction, modernisation and development projects in Nicaragua in light of the outcome of the country’s November 6th elections. Nicaragua’s Ambassador to the UK, HE Ambassdor Morales-Echaverry, will also attend the event. To book tickets, or for any further information, please contact Emily Soar at emily.soar@caribbean- council.org. Top Upcoming Projects Tender for Public-Private Partnership project A tender is announced for the management, rehabilitation and operation of the Escuintla – Puerto Quetzal highway in Guatemala (exact name of project: Rehabilitación, Administración, Operación, Mantenimiento y Obras Complementarias de la Autopista Escuintla – Puerto Quetzal con Cobro de Peaje). More information is available here. Deadline for bids: January 6, 2017. Guatemala: Tender for feasibility study Bids are invited to conduct a feasibility study for the modernization of La Aurora International Airport, Guatemala.
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