Inside This Issue

www.thedialogue.org February 24-28, 2014

FEATURED Q&A BOARD OF ADVISORS What Would North American Energy Integration Look Like? Jeffrey Davidow Larry Pascal Senior Counselor, Partner, U.S. President Barack Obama to the world's third-largest oil reserves. The Cohen Group Haynes and Boone met with Mexican President Mexico has the world's sixth-largest shale Enrique Peña Nieto and gas reserves and is poised to initiate an Ramon Espinasa R. Kirk Sherr Consultant, President, Q Canadian Prime Minister energy resurgence of its own after sweep- Inter-American Clearview Strategy Stephen Harper last week for the North ing reforms passed last December. Add to Development Bank Group American Leaders' Summit to discuss those figures the fact that the United States opportunities for North American cooper- and Canada already form the world's Luis Giusti Charles Shapiro ation, including closer regional energy Senior Advisor, President, largest integrated energy market. But there Center for Strategic & Institute of the integration. Did the summit achieve much are additional opportunities for cross-bor- International Studies Americas in terms of the energy agenda? What der cooperation. Joint development of would or should regional North American unconventional energy resources and Jonathan Hamilton Garrett Soden energy policy look like specifically? greater electric integration would bring Partner, Executive Director, White & Case Etrion Corporation What benefits would a more ambitious economic, environmental and political vision for North American energy ties Continued on page 3 Raul Herrera Mark Thurber bring about, and what obstacles are Partner, Partner, standing in the way? Arnold & Porter Andrews Kurth Paul Isbell Jeremy Martin, director of the Fellow, Roger Tissot Johns Hopkins Independent Energy energy program at the Institute University-SAIS Economist of the Americas: "'There's not going to be any other region in James R. Jones Alexandra A Co-chair, Valderrama the foreseeable future that will enjoy Manatt Jones International Gov't cheaper energy than North America,' said Global Strategies Affairs Manager, Pemex's CEO, Emilio Lozoya, in an inter- Chevron Jorge Kamine view just before the North American Counsel, Andrew Vesey Leaders' Summit. Despite the absence of Repsol, YPF Sign $5 Billion Skadden Arps Executive VP and Chief any major energy pronouncements from Compensation Agreement Operating Officer, Toluca, Mr. Lozoya's view underscores that Spanish oil company Repsol, led by Craig A. Kelly The AES Corporation Director, Americas regional energy trade and trilateral coop- chairman and CEO Antonio Brufau, on Int'l Gov't Relations, Max Yzaguirre eration remain an important part of the Thursday signed a $5 billion compensa- Exxon Mobil Corp. Chief Executive Officer, relationship, particularly as North tion deal with Argentina's YPF for the Francesco Olivieri The Yzaguirre Group America burnishes its energy hub bona 2012 nationalization of its Argentine Washington Office fides. Indeed, the foundation is strong: the assets. See story on page 2. Head, Enel Green United States' energy revolution has cata- Photo: Repsol. Power North America pulted it to being the world's largest hydrocarbons producer. Canada is home Inside This Issue

FEATURED Q&A: What Would North Cosan Plans to Acquire Brazil, Argentina Advancing Plans American Energy Integration Look Like? ...... 1 Brazilian Rail Network for $3 Billion ...... 2 for Binational Hydroelectric Dams...... 3 Repsol, YPF Sign $5 Billion Bolivia to Invest $696 Million In Profile: Eleodoro Mayorga, Peru's Compensation Agreement ...... 2 in Gas Projects This Year ...... 3 Minister of Energy and Mines...... 4 Petrobras Reports Increase in Net Former Paraguayan Presidents Call Political and Economic News: Ecuador, Profit, Sets Daily Pre-Salt Record ...... 2 for Argentine Contract Changes...... 3 Venezuela, Trinidad and Tobago and More....4-5

ENERGY SECTOR BRIEFS Oil & Gas News is very positive," YPF CEO Miguel Galuccio told reporters earlier this week in Cosan Plans to Acquire Brazilian Buenos Aires, according to Bloomberg Rail Network for $3 Billion Repsol, YPF Sign $5 Billion News. "Repsol still has a 12 percent stake in Brazilian sugar cane and ethanol Compensation Agreement the company, there should be a new giant Cosan plans to merge its dynamic now in the board. We should be Rumo transportation unit with one Spanish oil company Repsol signed a $5 able to leave this dispute in the past and of Latin America's biggest rail-ship- billion compensation deal Thursday with focus on a more constructive future," ping companies in a deal valued at Argentina's state-owned YPF for the 2012 Galuccio added. Brufau said this week that nationalization of Repsol's 51 percent Repsol is considering the sale of its $3 billion, The Wall Street Journal stake in YPF, the Buenos Aires Herald remaining stake in YPF. reported Monday. The purchase of reported. Argentine Economy Minister América Latina Logística would Axel Kicillof signed the agreement in Petrobras Reports Increase in Net bring Cosan's holdings to 36.5 per- Buenos Aires with Luis Suárez de Lezo Profit, Sets Daily Pre-Salt Record cent of the new company and help Mantilla, the general counsel and secretary Cosan streamline the transport of its Brazilian state oil company Petrobras said products to Brazil's main ports. in a statement Wednesday that its net CEO Marcos Lutz told investors on “ We should be able to leave this income in 2013 was up 11 percent com- a phone call that the deal will likely dispute in the past and focus on pared to a year earlier, to 23.37 billion reais add value to the company's Raízen ($9.97 billion). The company attributed joint energy venture with Royal a more constructive future. the increase partially to a rise in diesel and ” gasoline prices, of 20 percent and 11 per- Dutch Shell, Reuters reported. — Miguel Galuccio cent respectively, gains from asset sales, Pemex Posts $5.7 Billion Loss cost optimization and lower foreign in Q4 as Output, Sales Fall of Repsol, and the company's business exchange impact. The Rio de Janeiro- director, Nemesio Fernández-Cuesta. based company also reported that its earn- Mexican state oil company Pemex Under the deal, which still requires ings before interest, taxes, depreciation, said Thursday that it lost $5.7 bil- approval from the Argentine Congress and and amortization (EBITDA) was up 18 lion in the fourth quarter last year. It Repsol's shareholders, Argentina will pay percent year-on-year. On Tuesday, was the company's fifth consecutive Repsol with guaranteed, dollar-denomi- Petrobras said it had set a new daily output quarterly loss, Bloomberg News nated bonds with a market value of at least record for pre-salt production. Oil pro- reported. Pemex's daily crude pro- $4.67 billion, Reuters reported. "I think to duction in fields operated by Petrobras in duction slid 1.5 percent from the finally reach a friendly agreement on this the Santos and Campos Basin pre-salt same period a year ago to 2.52 mil- contentious issue that has taken two years accumulations rose to 407,000 barrels per lion barrels. Sales fell 2.6 percent, as is extremely positive," Repsol's CEO and day (bpd) last Thursday, a record daily well. Officials hope that a landmark chairman, Antonio Brufau, said Tuesday, output, the company said in a press energy overhaul passed last year will after the company's board approved the release. "It has taken eight years to achieve deal. As part of the deal, Repsol said it this level of output since initial discovery spur production. would drop all legal action stemming from in 2006," the company said, noting that Chile Increases Solar Capacity the nationalization, including lawsuits time frame is shorter than industry norms. to 102.6 Megawatts in January aimed at preventing other oil companies Pre-salt production takes place in ultra- such as Chevron from partnering with deep waters, making it a technical chal- Chile's grid-connected solar energy YPF, and international arbitration, and the lenge to extract. Petrobras achieved the capacity rose dramatically last companies also signed an agreement to record output from 21 production wells, a month, from 6.7 megawatts at the this effect on Thursday. Repsol had origi- relatively small number that Petrobras says end of December to 102.6 MW in nally demanded $10.5 billion as compen- indicates the high productivity of the January, according to Chile's Center sation for the loss of assets responsible for fields already discovered in the pre-salt for Renewable Energy, pv Magazine more than half of the company's oil and layer. During the period from 2015 to reported Feb. 20. Missouri-based gas production, but in the end decided to 2016, eight new platforms are scheduled to SunEdison partially connected its avoid a protracted legal battle and focus come on stream, with pre-salt output 100-megawatt Amanecer solar plant, instead on plans to boost international expected to surpass 1 million bpd in 2017. being built for mining and steel exploration and production elsewhere in Overall, Petrobras' oil production fell 2.2 the world. YPF's change in position, ana- percent last year to 2.5 million barrels per group CAP. ET Solar's 3-megawatt lysts say, was driven by a broader effort to day, as output from older oil fields has Los Puquios plant in the Tarapaca improve Argentina's relations with the declined, The Wall Street Journal reported region also connected to the grid. international financial community. "This Tuesday.

Bolivia to Invest $696 Million in Gas Projects This Year Featured Q&A Continued from page 1 Bolivia's national oil company, YPFB, benefits. Given the United States' experi- important first step in advancing the said in a statement Monday that it will ence with unconventional resources, tri- agenda this year. However, many of the invest $695.87 million in natural gas proj- lateral cooperation would be the logical energy deliverables were continuations of ects this year. Of that figure, $279.63 mil- next step. Such cooperation could take ongoing initiatives, and thus opportuni- lion will go to liquid separation plants the form of a North American Shale Gas ties were missed for deeper integration. and $416.24 million will go to industrial- Council, a public-private advisory body An important advance would be the ization. The oil company said that it will modeled on the United States' National approval of the Keystone XL pipeline by invest $197.6 million this year in the Petroleum Council. Additionally, cross- $608.9-million Planta Gran Chaco, a liq- border electric integration is ripe for uid separation plant being built by deeper collaboration, particularly Spain's Técnicas Reunidas that is expect- between the United States and Mexico. “ Opportunities were missed ed to be completed in September. YPFB Greater interconnection would not only for deeper integration. has allocated $82 million to the liquefied boost energy security but also increase ” natural gas plant in Río Grande in the renewable generation and consumption — Christian Gómez eastern department of Santa Cruz, which across all three nations. Reinvigorating will supply natural gas to 27 cities in the the Cross-Border Electricity Task Force country. YPFB also noted that the start of set up between Mexico and the United operations at the liquid separation plant States in 2010 as well as the North the United States. A recent State in Río Grande last August allowed it to American Energy Working group frame- Department report declared that signifi- fulfill domestic demand for liquefied work would be important steps." cant additional greenhouse gas emissions petroleum gas (LPG) and to generate $14 would not be released as a result of con- million though LPG exports to Paraguay Christian Gómez, director of struction of the final leg of the project. and Peru. The company expects produc- the energy program at the Approval of the pipeline would strength- tion of 129,600 metric tons of LPG at the Council of the Americas: "The en the close energy ties between Canada Río Grande liquid separation plant this A North American Leaders' and the United States. Canada may look year, 80 percent of which will be con- Summit yielded some tangible results. In to Asia for energy exports should market sumed domestically and 20 percent particular, holding a North American access not be available south of the bor- exported. energy ministers meeting in 2014 is an der. But the North American energy pic- Continued on page 6 Power Sector News that was presented to the Paraguayan Brazil, Argentina Advancing Plans Former Paraguayan Presidents Call Congress found that the country owed for Binational Hydroelectric Dams for Argentine Contract Changes $15.84 billion, of which more than 90 percent was due to the Argentine govern- Brazil and Argentina are working to Three former presidents of Paraguay on ment. Macchi noted that the figure could advance plans for two proposed hydro- Monday called for renegotiating the be as high as $18 billion now. Paraguay electric plants on the Uruguay River, Valor country's agreement with Argentina over consumes much less power than Econômico reported Feb. 20. The Garabi the binational Yacyretá Argentina and sells the country its excess and Panambi hydroelectric power dams hydroelectric project, energy. The dam accounts for approxi- would have a combined capacity of 2,200 EFE reported. Former mately 20 percent of Argentina's energy megawatts and have an estimated cost $5.2 presidents Raúl Cubas supply, and in 2012, 87 percent of the billion. Investment in the plants and the Grau, Federico Franco 20,091 gigawatts the dam generated went energy generated would be divided equal- and Luis Ángel to Argentina. Grau noted that Paraguay ly. The 1,048-megawatt Panambi project González Macchi criti- sells energy to Argentina at a lower rate would have seven Kaplan turbines and the cized the agreement at than established in the treaty and that if 1,152-megawatt Garabi project would a forum marking 40 that was taken into account, the debt have eight Kaplan turbines, Brazil Focus Franco years of the Yacyretá would be eliminated. Franco said that reported. Flooding for the dams would File Photo: Agência treaty. One of the Paraguay "does not owe a cent." An invest- dislocate 15,000 families in 30 municipali- Brasil. most contentious ment plan at the facility proposes new ties. A consortium of Brazilian and issues is Argentina's projects that would increase generation by Argentine companies began carrying out claim that Paraguay owes it for funds that 40 percent, but Franco and Macchi said studies on the proposed projects last May. it provided for the dam's construction. A the projects should be held off until "We hope to have the studies ready by the 2009 report by the binational authority agreement on the debt is resolved. end of the year," the generation director of

Brazil's state-owned Eletrobras, Valter Cardeal, told Valor Econômico. Brazil's In Profile Eletrobras and Argentine state energy firm Ebisa would use a model similar to that Eleodoro Mayorga, Peru's Minister of Energy and Mines used at the Itaipú hydroelectric damn built by Brazil and Paraguay. The compa- Eleodoro Mayorga Alba was sworn in as Peru's Minister of Energy and Mines on Monday, nies could form a binational company and following the resignation of the previous energy minister, Jorge Merino, who had occupied license the project as a public work, avoid- the post since December 2011. Mayorga is the third person to hold this position since ing a concession auction. Cardeal said that President Ollanta Humala took office in mid-2011. if all goes well, he expects that they would begin contracting builders in 2015 and start construction in 2016. Background: Mayorga holds a degree in petroleum engineering from Peru's Universidad Nacional de Ingeniería Political News and a doctorate in mathematics applied to economics from the Peru's Humala Names New University of Paris X Nanterre. He Cabinet Ministers in Shakeup also studied petroleum economics and management at the Catholic Peruvian President Ollanta Humala this University of Louvain in Belgium and week swore in new cabinet ministers in the the French Institute of Petroleum. wake of his prime minister's resignation, Mayorga most recently worked as a Mayorga (R) was sworn in Monday as Peru's state news agency Andina reported partner at Laub & Quijandría Minister of Energy and Mines. Tuesday. Local media accounts suggested Consultores y Abogados, where he Photo: Peruvian Government. that policy differences within the adminis- advised the oil and natural gas sector tration over potential changes to mini- on loan and technical assistance, as well as developing policies and regulations to mum wage laws were behind the resigna- improve the efficiency and transparency of energy projects. tion of Prime Minister César Villanueva Sunday. René Cornejo, who has been He previously worked as a senior petroleum economist in the Petroleum, Gas, Mines named to replace Villanueva, becomes the and Chemical Products Policy Unit of the World Bank between 1993 and 2009 and fifth prime minis- spent two years before that in the Bank's energy division. Mayorga worked for state- ter to serve under owned oil company Petroperú from 1983 to 1991 as an economics manger and later Humala. Cornejo as the director and general manager of the Camisea pipeline project. His previous had been housing experience also includes time as a hydrocarbon sector planner in the Ministry of minister since Energy and Mines from 1972 to 1975. 2011. Between Mayorga has more than 40 years of experience in the oil and natural gas sector and 2004 and 2007, he helped develop and implement the Extractive Industries Transparency Initiative in was executive Peru, as well as several countries in Sub-Saharan Africa. Cornejo director of File Photo: Government of Proinversion, Peru's Peru. agency for promot- Of Note: Mayorga's appointment suggests that the government is looking to speed up ing private invest- the execution of the South Andean gas pipeline project, which is estimated to require ment. The cabinet shuffle also included the $4 billion of investment and has faced numerous delays, Portafolio reported. resignation of Mines and Energy Minister Jorge Merino, who was replaced by Mayorga will also assume responsibility for the country's mining sector. Peru is the Eleodoro Mayorga. "Mayorga's back- world's third-largest copper producer and a major producer of gold, silver and zinc, ground calls attention to government which account for more than 50 percent of the country's exports. The government has plans to prioritize energy projects (e.g. the been looking to speed up the permit approval process for projects and facilitate invest- delayed concession of the South Andean ments. Projects have faced permitting delays and opposition from communities over gas pipeline), while maintaining efforts for social and environmental concerns. new mining projects to come on stream and boost production amid the persistent risk of social conflicts," Eurasia Group Editor's Note: See Mayorga's comment in the Jan. 3 issue of the Energy Advisor on plans analyst Maria Luisa Palomino said in a to partially privatize Petroperú. research note Tuesday. Humala also changed his ministers for agriculture,

Copyright © 2014, Inter-American Dialogue Page 4 of 6 Inter-American Dialogue’s Latin America Energy Advisor February 24-28, 2014 labor, housing, production, and women in Quito Wednesday to discuss plans to POLITICAL & ECONOMIC BRIEFS and social development. "oxygenate" the group with a shakeup after his party's disappointing perform- Foreign Service Officer Group Venezuela Protests Continue as ance in Sunday's local elections. It is not May Buck Mamet Nomination Gov't Seeks International Support uncommon for a cabinet in Ecuador to The American Foreign Service submit its resigna- Association, which represents more Both supporters and foes of Venezuelan tions en masse and than 16,000 career diplomats, took President Nicolás Maduro again took to offer a president a the unusual move of announcing the streets Thursday in protests that have chance to "reshuffle" Tuesday that it is considering raged for more than two weeks, EFE responsibilities and reported. On the holiday commemorating name new ministers. whether to publicly oppose three of the Day of the People's Rebellion, or the Correa said President Barack Obama's contro- "Caracazo," in 1989 that began over an Correa Wednesday that "it versial political ambassadorial nom- inations, including Noah Mamet, economic package that included higher Photo: Ecuadorean will take time to gasoline prices and bus fares, pro-govern- Government. evaluate and define the designee for Argentina, The ment marchers gathered outside the pres- what changes are Washington Post reported. Mamet idential palace calling for peace. appropriate to improve the political came under fire at Senate confirma- Meanwhile, student and opposition rallies process." Observers expect Correa will tion hearings in recent weeks for calling for the release of imprisoned polit- incorporate some supporters who lost lack of experience for the job. ical activists turned violent in other parts races Sunday into the administration. of the country. National Guardsmen Opposition candidate Mauricio Rodas El Salvador: Sánchez Cerén launched tear gas at some students on the handily won a first term as the next mayor Pledges to Ban New Mines main east-west highway in Caracas, injur- of Ecuador's capital city, Quito. The gov- El Salvador's presidential candidate ing at least 15 students, according to El ernment-backed incumbent, Augusto from the ruling FMLN party this Universal. The government has restricted Barrera, garnered 38 percent of the vote liquor sale hours at stores and bars compared to Rodas' 59 percent. week said he would support a ban through March 4, a policy it has imple- on metals mining in the country, La mented in the past during carnival, which Economic News Prensa Gráfica reported Wednesday. begins today. On a tour through Southern "The threat of metal extraction is a Cone countries, Venezuelan Foreign threat to life [itself]," Salvador Minister Elías Jaua on Thursday met with Mexico Posts Weaker Balances Sánchez Cerén said while campaign- Argentine President Cristina Fernández for Trade, Current Account ing with environmental activists this de Kirchner, who offered her "full sup- week in the rural town of San port" to Maduro's government, the Casa Mexico posted a higher-than-expected Isidro, Cabañas. Sánchez Cerén faces Rosada said in a statement. Jaua found deficit in the current account of the bal- a runoff vote on March 9 against similar expressions of official support ance of payments in 2013, EFE reported former San Salvador Mayor from Brazil and Uruguay on his trip. Wednesday. The $22.33 billion deficit was Norman Quijano. Venezuela is calling for a special meeting up 51.2 percent from the previous year, of Unasur to address the crisis. Venezuela according to central bank data. The cur- Trinidad & Tobago Opens blocked a meeting scheduled for Thursday rent account, which serves as an indicator New Embassy in China at the Organization of American States of general economic vitality, between over a procedural technicality. "Unasur is January and December 2013 was equiva- Trinidad & Tobago's prime minister, the natural place to analyze what's hap- lent to 1.8 percent of GDP, Banxico said. In Kamla Persad-Bissessar, officially pening in Venezuela," Uruguayan Foreign related news, Mexico's trade balance opened her Caribbean country's Minister Luis Almagro told reporters, recorded a large and unexpected $3.2 bil- new embassy in Beijing Wednesday, according to the Buenos Aires Herald. lion deficit in January, national statistics the Trinidad and Tobago Guardian agency INEGI said Wednesday in a state- reported. During the trip to China Ecuador: Correa Holds Off ment. "Part of the disappointing trade fig- this week, her delegation signed on Making Cabinet Decisions ures can be traced to an important con- agreements for about $750 million traction in oil exports," Goldman Sachs in new construction projects with Ecuadorean President Rafael Correa on analyst Alberto Ramos said in a research Chinese companies to build the new Wednesday said it may take several days to note. Oil exports declined by 10.6 percent port at La Brea as well as seven new consider the resignations that his entire month-on-month, due to lower prices and cabinet submitted this week, El Comercio lower quantities exported. Also, manufac- industrial parks. The delegation also reported. Correa convened all 34 of his turing exports suffered their fifth consecu- discussed major Chinese energy cabinet ministers at the Carondelet Palace tive monthly decline, Ramos added. investments.

Featured Q&A Continued from page 3 Latin America Energy Advisor ture goes beyond one pipeline. There are makes it less dependent on purchases, so is published weekly by the Inter-American Dialogue 410,000 kilometers of pipelines across Prime Minister Stephen Harper (and Copyright © 2014 the U.S.-Canada border, making it one of old-timers in the Canadian bureaucracy the closest energy relationships in the who are foot-draggers on cooperation) Erik Brand Publisher world. Looking south, with the passage may see that a thoughtfully integrated [email protected] of Mexican energy reforms, both U.S. energy system can augment national Gene Kuleta and Canadian companies can also bene- Editor fit from investment opportunities in the [email protected] Mexican energy sector. Up until the shale Key would be approval for Megan Cook revolution, the United States assumed it “ Reporter, Assistant Editor would be energy-dependent, not self- a comprehensive, thoughtful [email protected] sufficient. However, energy integration 'North American Energy in North America means that the United Inter-American Dialogue States has dependable sources of energy and Environment to go along with production. Deeper Outlook' document. Michael Shifter, President energy integration is a win-win for ” Peter Hakim, President Emeritus — Joseph M. Dukert North America." Genaro Arriagada, Nonresident Senior Fellow

Joseph M. Dukert, independ- Sergio Bitar, Nonresident Senior Fellow ent energy analyst based in goals. Key would be approval of a com- Joan Caivano, Director, Special Projects Bethesda, Md.: "This could prehensive, thoughtful 'North American Maria Darie, Director, Finance & Administration A mean a breakthrough for Energy and Environment Outlook' doc- Ariel Fiszbein, Director, Education Program North American energy interdepend- ument—going well beyond the baby Claudio Loser, Senior Fellow ence…or another missed opportunity. steps made by the North American Watch the energy ministers' meeting Energy Working Group. That could Nora Lustig, Nonresident Senior Fellow authorized for later this year. For 20 mobilize public attention. It's the logical Margaret Myers, Director, years we've ratcheted toward coordina- first step for the newly-mandated China and Latin America Program tion (not homogenization) in energy Quadrennial Energy Review. Mexican Manuel Orozco, Senior Fellow and environmental policy. Promising leaders say privately that they would wel- Tamara Ortega Goodspeed, Senior signs include the fact that the U.S. come such a trinational study, which Associate, Education Department of Energy may have its best- could make a future smart grid for elec- Jeffrey Puryear, Senior Fellow qualified leadership ever. Secretary Ernie tricity more effective. Such a study could Moniz seems unafraid to push sensible also aid in the development of fossil fuels Subscription Inquiries are welcomed at moves. Adam Sieminski (formerly chief and renewable sources, as well as strate- [email protected] energy economist for Deutsche Bank) gies to boost energy efficiency and heads the generally autonomous yet address climate change. I hope some Latin America Energy Advisor is published instrumentally crucial Energy issues such as Keystone don't interfere." weekly, with the exception of some major US holidays, by the Inter-American Dialogue Information Administration. The U.S.- 1211 Connecticut Avenue NW, Suite 510 Mexican agreement on joint develop- Washington, DC 20036 ment of some gas and oil resources in the The Energy Advisor welcomes responses Phone: 202-822-9002 Fax: 202-822-9553 Gulf of Mexico dovetails with President to this Q&A. Readers can write editor www.thedialogue.org ISSN 2163-7962 Peña Nieto's energy reforms. U.S. Gene Kuleta at [email protected] The opinions expressed by the members of the Board exploitation of unconventional resources with comments. of Advisors and by guest commentators do not neces- sarily represent those of the publisher. The analysis is the sole view of each commentator and does not nec- essarily represent the views of their respective employ- ers or firms. The information in this report has been obtained from reliable sources, but neither its accuracy Latin America Advisor and completeness, nor the opinions based thereon, are See farther than others. guaranteed. If you have any questions relating to the contents of this publication, contact the editorial offices of the Inter-American Dialogue. Contents of this report may not be reproduced, stored in a retrieval system, or transmitted without prior written permis- sion from the publisher. SUBSCRIBE TODAY

Photo: Kevin Teague