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LATIN AMERICA ADVISOR a DAILY PUBLICATION of the DIALOGUE Friday, July 6, 2018

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LATIN AMERICA ADVISOR a DAILY PUBLICATION of the DIALOGUE Friday, July 6, 2018 LATIN AMERICA ADVISOR A DAILY PUBLICATION OF THE DIALOGUE www.thedialogue.org Friday, July 6, 2018 BOARD OF ADVISORS FEATURED Q&A TODAY’S NEWS Diego Arria Director, Columbus Group BUSINESS Devry Boughner Vorwerk Corporate VP, Global Corporate Affairs How Well Has Boeing Taking Cargill Joyce Chang Over Commercial Global Head of Research, Juan Manuel Santos Jet Business JPMorgan Chase & Co. Dirk Donath of Embraer Senior Partner, Chicago-based Boeing signed a Catterton Aimara Led Colombia? deal with Brazil’s Embraer to take Marlene Fernández over its commercial jet and ser- Corporate Vice President for Government Relations, vices business. Boeing will hold a Arcos Dorados $4.75 billion, 80 percent stake in a Peter Hakim new joint venture. President Emeritus, Page 2 Inter-American Dialogue Donna Hrinak President, Boeing Latin America ECONOMIC Jon Huenemann Vice President, U.S. & Int’l Affairs, Puerto Rico Sues Philip Morris International Federal Fiscal James R. Jones Chairman, Control Board Monarch Global Strategies President Juan Manuel Santos, who became Colombia’s president in 2010, leaves office next The U.S. territory filed a lawsuit Craig A. Kelly month. // File Photo: Colombian Government. against the board over two Director, Americas International budget plans. Puerto Rico claims Gov’t Relations, Exxon Mobil Colombian President Juan Manuel Santos’ second term will the board is overstepping its John Maisto authority. Director, U.S. Education come to an end on Aug. 7, when President-elect Iván Duque Finance Group Page 3 will be sworn in as the country’s new leader. Santos received Nicolás Mariscal Chairman, Q a Nobel Peace Prize in 2016 for negotiating a peace agree- POLITICAL Grupo Marhnos ment with the Revolutionary Armed Forces of Colombia, or FARC, ending Thomas F. McLarty III Brazilian Labor Chairman, almost 50 years of war. The treaty was controversial in Colombia, where McLarty Associates many, including Duque, criticized aspects of the accord. Looking back Minister Resigns Carl Meacham After Suspension Associate VP for Latin America on Santos’ eight years in office, what were the country’s main challenges Int’l Advocacy Division, PhRMA when Santos became president in 2010, and how do they compare to Brazilian Labor Minister Helton Carlos Paz-Soldan those Colombia faces today? How did Colombia fare under Santos? What Yomura resigned after the coun- Partner, try’s Supreme Court suspended DTB Associates, LLP were his major achievements and shortcomings? Has Santos achieved a him in connection with a cor- Beatrice Rangel lasting peace with the FARC? ruption investigation. He denies Director, AMLA Consulting LLC wrongdoing. Page 2 Ernesto Revilla Head of Latin American Sergio Guzmán, analyst for global risk analysis at Con- Economics, Citi trol Risks in Bogotá: “Juan Manuel Santos will likely be Gustavo Roosen remembered as a historic president, although his approval Chairman of the Board, Envases Venezolanos ratings do not necessarily reflect it today. Santos staked his Andrés Rozental A entire political legacy on the idea of peace and attempted an ambitious President, Rozental & Asociados and Senior agreement with a tenacious counterpart. Santos delivered an agreement, Policy Advisor, Chatham House and although it was hailed internationally as a landmark deal, opponents Roberto Sifon-Arevalo Managing Director, Americas chastised the agreement as brittle and overly generous. All the more, Sovereign & Public Finance Ratings, Standard & Poor’s Santos has maintained economic stability, despite an environment of declining oil prices. He continued the country’s intertwining to the inter- national trade order by leading the creation of the Pacific Alliance and obtaining the country’s membership to the OECD. Santos is criticized for his financial profligacy on the peace deal, but in time, this too shall pass. Yomura // File Photo: Brazilian Labor Ministry. Continued on page 3 COPYRIGHT © 2018, INTER-AMERICAN DIALOGUE PAGE 1 LATIN AMERICA ADVISOR Friday, July 6, 2018 POLITICAL NEWS BUSINESS NEWS NEWS BRIEFS Brazilian Labor Boeing to Take Over At Least 24 Killed in Explosions in Mexico’s Minister Resigns Commercial Jetliner ‘Fireworks Capital’ After Suspension Business of Embraer A series of explosions in a pyrotechnics work- shop Thursday in Mexico resulted in at least Brazilian Labor Minister Helton Yomura U.S. aircraft manufacturer Boeing and Brazilian 24 people dead and dozens injured, including resigned Thursday after the country’s Supreme aerospace company Embraer have signed a children and government officials, CNN re- Court suspended him in connection to a cor- deal for a joint venture, in which Boeing would ported. The fireworks manufacturing ware- ruption investigation, Globo reported. Yomura take over Embraer’s commercial aircraft and house is located in the La Saucera area of the stands accused of involvement in a fraudulent services business, Boeing said Thursday in municipality of Tultepec, which lies just north scheme connected to the registration of trade a statement. Boeing will hold an 80 percent of Mexico City and calls itself the country’s unions, Bloomberg News reported. Yomura, a stake in the joint venture, which the company “fireworks capital,” CNN reported. Similar fatal member of the Partido Trabalhista Brasileiro, said was worth $4.75 billion, and Embraer will incidents have occurred there in the past, with or PTB, had been labor minister only since hold the remaining 20 percent stake. The new blasts earlier this year killing seven people, commercial jet company would be managed BBC News reported. in Brazil, but the venture would be controlled Yomura denies by Boeing in Chicago, The New York Times wrongdoing in the reported. “The agreement with Boeing will cre- ate the most important strategic partnership Pence, Colombia’s Duque corruption case. in the aerospace industry, strengthening both Meet at White House companies’ leadership in the global market,” Colombian President-elect Iván Duque met with said Paulo Cesar de Souza e Silva, Embraer’s U.S. Vice President Mike Pence at the White April, when President Michel Temer appointed president and CEO, in the same statement. The House on Thursday, where they discussed him to the post amid a cabinet shuffle ahead two companies, which have collaborated for the Colombian peace agreement, economic of the country’s October elections. Candidates years, also said they were discussing an addi- engagement, and illegal immigration, the White running for office must resign their positions tional joint venture comprising “new markets House said in a statement. Duque and Pence in the executive branch at least six months for defense products and services.” The move committed to continue battling drug produc- before the election. Temer’s current chief of comes after Boeing’s main rival, European man- tion and trafficking, and they emphasized the staff, Eliseu Padilha, will take over as interim ufacturer Airbus, closed a deal with Canada’s importance of pressuring Venezuelan President labor minister, O Estado de S.Paulo reported. Bombardier regarding production of smaller Nicolás Maduro and dealing with the “tragic Padilha will continue to serve as chief of staff, aircraft earlier this week, The New York Times collapse of democracy” there, the statement the Associated Press reported. Yomura denies reported. said. wrongdoing in the corruption case. His defense team released a statement saying, “Minister Helton Yomura, even without knowing what Argentine Court Brazil May Be Forced acts he is accused of, vehemently denies any Rejects Action accusation of a crime or irregularity.” Fed- to Import Soybeans: eral prosecutors allege lawmakers and civil Against Chevron Exporters Group Official servants manipulated the procedure by which Brazil, which exports more soybeans than any unions are registered with the government. An Argentine appeals court rejected an attempt other country in the world, may have to resort As part of the probe, police were executing to enforce a $9.5 billion Ecuadorean court this year to importing the oilseed from the Unit- three arrest warrants and 10 search warrants. judgment against the U.S.-based oil major, the ed States, an executive of Anec, an exporters Authorities did not say who the targets were, company said Thursday. The three-judge panel association, said Thursday, Reuters reported. A but the AP reported that police searched the unanimously dismissed the action against trade war between China and the United States offices of Nelson Marquezelli, a member of the Chevron due to lack of jurisdiction, saying the may lead the Asian nation to demand more soy- Chamber of Deputies. Marquezelli told Globo company has no legal presence or assets in beans from Brazilian processors, the executive, TV that he had “nothing to fear.” He added, “I’ll Argentina and that the company’s subsidiar- Luis Barbieri, said at an event in São Paulo, the await their report.” ies in Argentina are separate legal entities. wire service reported. COPYRIGHT © 2018, INTER-AMERICAN DIALOGUE PAGE 2 LATIN AMERICA ADVISOR Friday, July 6, 2018 U.S. courts have found that the Ecuadorean FEATURED Q&A / Continued from page 1 judgment was obtained through fraud. The long-running case stems from 1993 when a Peace agreements themselves are delicate sive demise of the peace agreement. Santos group of Ecuadoreans sued Texaco, which things, and Santos has not delivered peace failed because he believed Colombia could Chevron later acquired, arguing that oil drilling itself—rather, he
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