LATIN AMERICA ADVISOR A DAILY PUBLICATION OF THE DIALOGUE www.thedialogue.org Thursday, January 14, 2021 BOARD OF ADVISORS FEATURED Q&A TODAY’S NEWS Diego Arria Director, Columbus Group POLITICAL Devry Boughner Vorwerk What Challenges Mexico to Invoke CEO, DevryBV Sustainable Strategies USMCA to Ensure Joyce Chang Global Head of Research, Face Puerto Rico’s Vaccinations: JPMorgan Chase & Co. Foreign Minister Paula Cifuentes Director of Economic & Fiscal Affairs, New Governor? Mexico will invoke the labor Latin America & Canada, section of its trade agreement Philip Morris International with the United States in order to Marlene Fernández ensure that Mexican immigrants Corporate Vice President for in the United States can be Government Relations, Arcos Dorados (McDonald’s) vaccinated against Covid-19, regardless of immigration status, Peter Hakim President Emeritus, said the foreign minister. Inter-American Dialogue Page 2 Donna Hrinak Senior VP, Corporate Affairs, Royal Caribbean Group BUSINESS Jon E. Huenemann Former Corporate and Banco do Brasil Government Senior Executive CEO Reportedly Puerto Rico’s new governor, Pedro Pierluisi, faces a divided legislature and won election with James R. Jones just a third of the vote. // File Photo: Facebook page of Pedro Pierluisi. Chairman, Steps Down Monarch Global Strategies The bank’s new CEO, André Craig A. Kelly Pedro Pierluisi took office Jan. 2 as governor of Puerto Rico, Brandão, reportedly resigned after Senior Director, Americas angering President Jair Bolsonaro Int’l Gov’t Relations, Exxon Mobil promising to help the U.S. territory become a state and also with a restructuring plan. John Maisto fight poverty, corruption and Covid-19. What are the biggest Director, U.S. Education Page 3 Finance Group Q challenges facing Pierluisi? Will he succeed in achieving his Nicolás Mariscal stated goals, particularly given a politically divided legislature and an POLITICAL Chairman, Grupo Marhnos election victory with just 33 percent of the vote? How well will Pierlu- Bolsonaro Has Thomas F. McLarty III isi be able to navigate the territory through its debt restructuring and Tried to Sabotage Chairman, efforts to attract investment? McLarty Associates Efforts to Fight Beatrice Rangel Director, Covid: Report AMLA Consulting LLC Sila M. Calderón, president of Inter-American Global Links Brazilian President Jair Bolsonaro and former governor of Puerto Rico: “The recently sworn-in Jaana Remes has tried to sabotage efforts to Partner, McKinsey Global Institute governor of Puerto Rico, Pedro Pierluisi, has endless chal- fight Covid-19, Human Rights Ernesto Revilla lenges ahead. His stated objectives to fight Covid-19, poverty Watch said in a report. Head of Latin American A Page 2 and corruption are right on target. In addition, the new governor has cho- Economics, Citi Gustavo Roosen sen an excellent group as members of his new cabinet in order to achieve Chairman of the Board, his goals. However, getting our island out of bankruptcy is a priority that Envases Venezolanos Andrés Rozental must also be tackled immediately, so that our good financial credit is President, Rozental & restored and so we can go back to the markets. Our debt must be restruc- Asociados tured in a fair way to the bondholders and our citizens. Governor Pierluisi, Shelly Shetty Managing Director, Sovereigns the leader of the New Progressive Party, won with just a 33 percent of the Fitch Ratings vote. In addition, both chambers of the legislature are led by the oppos- ing Popular Democratic Party. In order to navigate the difficult agenda in the near future, he will need a large dose of negotiating skills. Most importantly, Pierluisi should not follow his announced path of advancing statehood for Puerto Rico. This is an enormously divisive issue on our island that will overshadow and disrupt his other public efforts. The im- Bolsonaro // File Photo: Brazilian Government. Continued on page 3 COPYRIGHT © 2021, INTER-AMERICAN DIALOGUE PAGE 1 LATIN AMERICA ADVISOR Thursday, January 14, 2021 POLITICAL NEWS less of their legal status in the United States, NEWS BRIEFS Mexican Foreign Minister Marcelo Ebrard said Bolsonaro Has Tried Wednesday, the Associated Press reported. “It Cuba Shuts Down Schools, is a responsibility of each of the countries to Public Transport Amid to Sabotage Efforts to guarantee that all workers, independently of their immigration status, receive the vaccine,” Surge in Covid Infections Fight Covid: Report said Ebrard. Exclusion of Mexican workers The Cuban government has again shut down from receiving the vaccine would violate the schools, public transport and cultural activities Brazil’s Supreme Court and other democratic U.S.-Mexico-Canada Agreement, or USMCA, across the island as it undergoes the worst out- institutions have been forced to step up to said Ebrard. Immigrant workers’ access to the break of the novel coronavirus since the pan- slow the spread of Covid-19 and help protect vaccine became an issue following remarks demic began, Reuters reported. The Caribbean human rights as President Jair Bolsonaro has last week by Nebraska Governor Pete Ricketts. nation has registered new daily records for the pursued policies that undermine them, Human “You’re supposed to be a legal resident of the last six days, including 550 new official cases Rights Watch said in the Brazil chapter of its country to be working in those plants, so I do on Wednesday. In the first 12 days of the year, yearly report, published Wednesday. “Presi- not expect that illegal immigrants will be part Cuba has already recorded more infections dent Bolsonaro has put the lives and health of of the vaccine with that program,” Ricketts than in the entire month of December. The Brazilians at great risk by trying to sabotage ef- said when asked whether undocumented government has also reduced incoming flights forts to protect against the spread of Covid-19,” immigrants in Nebraska’s meat packing plants and introduced testing requirements before Anna Livia Arida, Brazil associate director at would be vaccinated. An aide to Ricketts later traveling to Cuba. Human Rights Watch, said in a statement. “The clarified, saying that immigrants would still Supreme Court and other institutions have qualify for receiving the vaccine, adding that helped to protect Brazilians and to block many, those who are undocumented would receive although not all, of Bolsonaro’s anti-rights poli- it after people who are in the country legally, November Hurricanes cies. They need to remain vigilant,” she added. The Washington Post reported last week. Cost Guatemala Among the detrimental moves by the Bolsonaro “Nebraska is going to prioritize citizens and $770 Mn in Losses: Gov’t administration that Human Rights Watch refers legal residents ahead of illegal immigrants,” Guatemala estimates that losses from back- to in its report are anti-rights policies on wom- Ricketts’ communications director, Taylor Gage, to-back Hurricanes Eta and Iota last November en’s rights and disability rights, harsh criticism said in a tweet. Many undocumented workers totaled more than 6 billion quetzals ($770 of reporters and civil society groups and the are employed in high-risk facilities that are million), the government said Wednesday, Reu- weakening of environmental law enforcement, essential to U.S. food supply, say advocates ters reported. The storms, which also ravaged the statement said. It also mentions the federal for immigrants. “This virus isn’t discriminating through neighboring Honduras and Nicaragua, government’s response to Covid-19, with based on immigration status,” Dulce Castañe- left at least 61 people dead, 30 others injured Bolsonaro repeatedly downplaying the severity da, an organizer with the activist group Chil- and 99 missing in Guatemala, the government of the virus, calling it a “little flu” and refusing dren of Smithfield, told The Washington Post in said. More than 310,000 people were evacuat- to order lockdowns and social-distancing mea- an interview. “It doesn’t ask people if they’re a ed in the Central American nation. sures, Reuters reported. The president’s office citizen, if they’re a resident, if they’re on a visa. did not immediately reply to Reuters’ request So why would we ask that for vaccines?” for comment. Bolsonaro has claimed that coro- navirus-related lockdowns hurt the Brazilian Colombia Extending economy and leave many unemployed. ECONOMIC NEWS ‘Selective’ Quarantine Until End of February Mexico to Invoke Venezuela to Expand Colombia will extend a “selective” quarantine USMCA Provision to Use of Bank Accounts until the end of February, President Iván Duque said during a nightly address on Wednesday, Ensure Vaccinations in Foreign Currency Reuters reported. The government imposed strict lockdowns for the first five months of the Mexico will invoke the labor section of the free Venezuela will allow expanded use of bank ac- pandemic before moving toward a much looser trade agreement that it signed with the United counts in foreign currencies, President Nicolás selective quarantine at the start of Septem- States to ensure that its workers in that country Maduro announced Wednesday in an annual ber, with restaurants open and resumption of can be vaccinated against Covid-19, regard- address, Bloomberg News reported. “The open- international flights. The selective isolation measure was due to expire on Jan. 16. COPYRIGHT © 2021, INTER-AMERICAN DIALOGUE PAGE 2 LATIN AMERICA ADVISOR Thursday, January 14, 2021 ing of bank accounts at all levels in convertible FEATURED Q&A / Continued from page 1 currencies, in dollars, is being authorized,” he said. The move is the country’s latest step mense responsibility of steering Puerto Rico of the Central Office for Recovery, Recon- toward dollarization, as the use of the U.S. through its intricate way to health, recon- struction and Resiliency (COR3) and, in the dollar has become increasingly common in the struction, economic development and good Department of Economic Development and South American country. Venezuela’s level of credit standing is extremely complicated.