Blouin Beat: World: Mexico hosts summit of the Pacific Alliance

"Mexico Hosts Summit of the Pacific Alliance"
W. Alejandro Sanchez
Blouin Beat: World
June 20, 2014
Originally published: http://blogs.blouinnews.com/blouinbeatworld/2014/06/20/mexico-hosts-summit-of-the-pacific-alliance/

At the time of this writing, the members the Pacific Alliance—a trade bloc of Latin America’s most dynamic economies—are meeting in Punta Mita, in the Mexican state of Jalisco. This two day summit (June 19-20) will set the stage for the next phase of the Alliance’s expansion.

While the Pacific Alliance currently has only four members (Chile, Colombia, Peru, Mexico) the ongoing Ninth Summit will have plenty of observers including several aspiring nations that are vying to become members of the Alliance. Costa Rica seems to be the country most likely to be accepted in the near future, while Panama and Guatemala are possible future candidates. Additionally, a delegation of Honduran representatives is also present in Mexico, according to the news agencylainformacion.com, as Tegucigalpa is also interested in becoming a member— however, it first must sign a free trade agreement with Peru as per a stipulation requiring aspiring nations must have free trade deals with other members of the bloc.

The Alliance has a combined population of around 214 million people along with $2.1 billion USD GDP. The renowned Mexican daily Milenio explains that the four countries combined would represent the world’s ninth largest economy; a handsome incentive for other nations to want to join the Alliance.

The governing style of the Alliance has a revolving presidency which lasts one year, and the Punta Mita Summit will serve as the venue for the transition of power to Mexico to control the bloc until 2015.

Much praise has surfaced surrounding the Alliance and on the first day of the Summit—Thursday, June 19—the Peruvian Minister of International Commerce and Tourism, Magali Silva, published an op-ed in the Peruvian daily El Comercio highlighting the Pacific Alliance’s accomplishments. At one point, she explained how the bloc is “alive, meaning that various themes like commerce, integration, services and capital, freedom of movements…and intellectual property are still being discussed and will be touched upon when the Presidents meet on Friday [June] 20.”

Similarly, Mexican President Enrique Pena Nieto hosted a dinner with his fellow heads of state on Thursday night as part of the summit’s celebrations. The Mexican head of state remarked that the Pacific Alliance is the most innovative integration system in Latin America in the past decade.

Due to the likelihood that the bloc’s membership will expand in the near future, coupled with the positive remarks from both President Pena Nieto and the Peruvian minister, a serious discussion surrounding the Pacific Alliance is necessary.

One critical factor that will determine the future growth of the Alliance is the realistic amount of interest by the bloc’s member states in this regional entity. Sadly, Latin America has a bad habit of creating new multinational organizations every few years which gain global notoriety out of the gate; however they often wane after a couple of years.

For example, today we are talking about the success and potential of the Pacific Alliance. If I was writing this commentary 10 years ago, I would be discussing the leftist bloc ALBA, the brainchild of the late Hugo Chavez, as the new exciting Latin American trade bloc that was taking the hemisphere by storm. If we go further back in time to the 1990s, the discussion would focus on MERCOSUR. Nevertheless, this bloc is currently at a standstill, as the member states’ economies have slowed down and the protectionist policies and legal battles of Argentina make that MERCOSUR member an unattractive place for investment.

As for the Pacific Alliance, there is a momentum towards becoming a stronger entity by accepting new members, as well as strengthening relations amongst its current ones. Most notably, this past February during a meeting in Cartagena, Colombia, the four member states signed a protocol through which they eliminated tariffs on 92% of all goods and services between them. The remaining 8% will be eliminated within the next 17 years. Because tariffs are one of the most important economic tools a country has for trade protection, this protocol exemplifies that the group’s current leaders do believe in the Alliance as a major trade bloc.

The Pacific Alliance is the new kid on the block in Latin America. It is made up of dynamic members with successful commercial ventures who are pushing for further integration among their membership. Moreover, the bloc plans to approach other regions, such as Asia and other trading blocs like MERCOSUR for economic partnerships. The Pacific Alliance may be the dream for any Latin American scholar, such as myself, who wants to see the region become more united; however, the problem still remains that the Alliance needs to remain proactive for longer than a few years.

VOXXI: Visiting from Colombia without a visa could soon be a reality

"Visiting from Colombia without a Visa could soon be a reality"
W. Alejandro Sanchez
VOXXI
June 20, 2014
Originally published: http://voxxi.com/2014/06/20/colombia-visa-waiver-program/

Colombia may soon be joining a list of nations who partake in the Visa Waiver Program in the United States, meaning its citizens would be able to forego the visa requirement if they are to visit the United States. Many are asking though, what took the U.S. so long to make this move?

The country’s recently re-elected President Juan Manuel Santos met with U.S. Vice President Joe Biden this past Wednesday, June 18. The two discussed the future of Washington-Bogota relations and the ongoing peace negotiations between the Colombian government and the FARC narco-insurgents. However, perhaps the most interesting development from this meeting that will impact Colombian citizens in general is that the two governments will begin negotiations for the Visa Waiver Program.

The Colombian Visa Waiver Program

On Wednesday, President Santos’s official Twitter account posted: “Excellent News: We have officially started the process so that the U.S. will no longer require visas for Colombians. We are going in the right direction.”

The Visa Waiver Program (VWP) was originally established by the 1986 Immigration Reform and Control Act and was signed into law on October 30, 2000, under the title: Visa Waiver Permanent Program Act. According to the State Department’s Bureau of Consular Affairs, the VWP “allows citizens of participating countries to travel to the United States without a visa for stays of 90 days or less.”

There are 38 member countries of the Visa Waiver Program, mostly U.S. allies in Europe and the Asia Pacific; these include Australia, France, Japan South Korea and the United Kingdom. Chile made history when it joined the VWP in early 2014, becoming the first and only Latin American nation to participate in the program.

A February 28, 2014, press release by the Department of Homeland Security reports that in the 2013 Fiscal Year, “the VWP accounted for about 19.6 million visits to the United States.”

What took so long?

Washington’s decision to grant Colombia the possibility for membership in the VWP is an important development that has been a long time coming.

Since the early 1980s, Colombia has been Washington’s major ally in Latin America, best exemplified by Washington’s massive economic and military aid to combat drug trafficking. The role of U.S. security agencies in the 1993 elimination of the notorious drug lord Pablo Escobar, the controversial Plan Colombia, and the possibility that the U.S. could have opened military bases in Colombia, illustrate that Washington-Bogota defense policies are joined at the hip.

Moreover, Colombian governments have successively supported Washington’s foreign policy interests. For example, in 2012, Colombia was one of the 41 nations that abstained from voting when Palestine requested observer status in the United Nations. Pundits believed that Colombia’s abstention was influenced by its close relations with both Washington and Israel.

Hence, an alternative question beckons: What took Washington so long to reward its South American ally?

To be fair, the U.S. government has been critiqued of being slow to extend the VWP to numerous allies, not just Colombia. Writing for the conservative Heritage Foundation, Dr. James Carafano argues, “expanding participation in the program is just one of several long-overdue actions that enjoy bipartisan support but haven’t moved forward.”

The scholar goes on to declare, “in part, these reforms have gotten a case of the slows because of the Gang of Eight’s immigration bill. To build pressure on those who oppose that measure’s grant of amnesty to people in this country illegally, bill sponsors have adopted a deliberate strategy of holding ‘hostage’ as many less-controversial reform initiatives as possible.”

Additionally, immigration reform remains a sensitive topic now more than ever (particularly due to revelations about the terrible living conditions in U.S. detention centers for undocumented migrants). Hence, the idea of eliminating visas for a Latin American nation may be disliked by members of congress who come from states where immigration reform is unpopular.

In other words, part of the reason why Colombia has been slow to join the VWP has a lot to do with domestic U.S. politics.

As a personal opinion, I would argue that there might be some stigma associated with Colombia that may have influenced the U.S. government’s decision to delay offering Bogota the VWP. Colombia–and various other South American nations–continue to be viewed through the prism of drug trafficking and narco-insurgency. The 2004 film Maria Full of Grace, may be the type of worst-case scenarios some U.S. citizens conceive will occur if Washington decides not to require visas for Colombians.

 

Therefore, offering the VWP option would have resulted in bad publicity for both the George W. Bush and Barack Obama administrations years ago; even if the mandatory requirement for a foreign citizen entering the U.S. to pass through (numerous) customs and security checks was not eliminated when visas were.

Ultimately, President Santos was correct when he stated that the VWP negotiations would be a long process. Nevertheless, there is an international momentum to get Colombians, who are enjoying years of economic growth, to spend their money abroad. In May, the European Union ratified an agreement to eliminate visas for Colombian and Peruvian nationals.

As for President Santos, the VWP announcement is an early victory in his second presidential term, which will be well received by Colombians who wish to travel to the U.S. This decision also serves to highlight the current strength of the Bogota-Washington alliance.

VOXXI: Bolivian gang members create a lost generation

"Bolivian Gang Members create a Lost Generation"
W. Alejandro Sanchez
VOXXI
June 18, 2014

The Bolivian government claims an alarming 10,500 Bolivian teenagers are gang members, comprising most of the Andean nation’s major cities, including La Paz.

These statistics show that Bolivia could be experiencing a “lost generation” of young Bolivians who are not productive members of society. With the upcoming elections in October, the next government –whether President Evo Morales is re-elected or not–will hopefully prioritize internal security and social programs to aid the country’s youth. But this is unlikely.

Looking under the statistical hood

Some statistics are necessary to place the aforementioned estimate into proper perspective. According to a2012 census, Bolivia’s total population was at most, 10.496 million citizens. By 2014, let’s estimate that it has already surpassed 10.5 million. Women account for the majority, with 5.255 million female citizens compared to 5.240 million males.

SEE ALSO: 30 dead, 60 injured in Bolivian prison riot

A January 7, 2014, report in Bolivian daily La Razon regarding age demographics shows that the Bolivian population under 15 years of age is just over 3.2 million (31.6% total population), while an additional million are between 15-19 years old.

In other words, Bolivia has a significantly young population; hence it’s increasingly problematic that more and more young Bolivians are joining gangs. “La Razon” explains that Bolivian security agencies have arrested gang members who are as young as 13 years of age.

A report by the Bolivian think tank Observatorio Nacional de Seguridad Ciudadana (ONSC – National Observatory of Citizen Security) estimates that, based on data provided by the Bolivian Police, some 762 gangs exist in the capitals of most parts of the country.

Most gangs have approximately 50 members, though an estimated 10% have more than 50 members. TheBolivian ombudswoman Shirley Pardo explains that 34% of gangs in Bolivia are located in La Paz, 22% in Santa Cruz, and 14% in Cochabamba.

When breaking the gangs down by gender, 79% of gang members are male while 21% are female. It is worth highlighting that in spite of this gender difference, at least one all-female gang exists. The group is called “Bola 8-M” and seems to operate in the Pampa de la Isla township, in the department of Santa Cruz.

According to the ONSC, between 2011-2013, 17.2% of the gangs carried out fights with other criminal groups and committed crimes including robbery and vandalism. Tragically, fights between gangs tend to end in murder.

For example, in early May, a 16 year old gang member was killed during a fight with a 23 year old rival gang member, who stabbed him multiple times in his left thigh, causing him to bleed to death. There are also reports of gang members fighting with law enforcement agents, as the former tend to outnumber the latter.

Things to come with gangs?

The extent of the unfortunate situation in Bolivia is not easy to predict and it would be unhelpful to be overly pessimistic or exaggeratory.

On the one hand, Bolivian gangs tend to be small (to the extent that 50 members in a gang can be considered small) and operate in specific neighborhoods. In other words, we are not (yet) witnessing the creation of one gang with branches in various cities across the country or abroad, such as the maras in Central America.

That is the good news.

The bad news is how powerful Bolivian gangs could become if the Bolivian government and society in general are not able to reintegrate these young men and women back into society.

One particular concern is that foreign criminal entities may attract Bolivian gangs to become their proxies. The online security news agency InSightCrime has discussed reports that a Brazilian prison gang, the Primeiro Comando da Capital, is increasing its presence in Bolivia.

Additionally, Bolivia remains a major producer of cocaine, and acts as a stopover for Peruvian cocaine traveling to Brazil and Paraguay. Closer relations between Peruvian drug syndicates and Bolivian drug traffickers and gangs are also a problematic scenario.

As for the government’s response, occasional legislations to crack down on gangs have been debated in the Bolivian congress to no major avail. Increasing the size and capabilities of the Bolivian police force is another logical option, particularly as a report by La Razon found severe personnel problems with police stations in La Paz; some stations only have one to three officers.

This past 14-15 of June, Bolivia hosted a major international summit of the G77 + China group. In order to prepare the city of Santa Cruz for the meeting, law enforcement agents cracked down on the city’s gangs and illegal migrants. This sounds eerily familiar to Brazil’s initiatives of pacifying favelas prior to the start of the ongoing World Cup and the 2016 Rio Olympics.

The G77 + China summit was a success for the country’s government, but the existence of gangs, and the reasons why young Bolivians are joining them, persists. Hopefully the Bolivian government is thinking outside the box about long-term solutions to address this issue. But the little that has been reported gives us little reason to be hopeful.

VOXXI: President Jose Mujica’s prized Rocha port project

"President Jose Mujica's prized Rocha port project"
W. Alejandro Sanchez
VOXXI
June 12, 2014
Originally published: http://voxxi.com/2014/06/12/jose-mujicas-prized-rocha-port-project/

Cementing international support for the port will be one of Uruguayan President Jose Mujica’s last major initiatives as his presidential term comes to an end.

On Monday, June 9, President Jose Mujica gave a speech to the Parliament of MERCOSUR, a South American trade bloc based in Montevideo. The focus of his remarks was to express his full support for the construction of a deep water port in Uruguay’s Rocha department which, as the South American leader explained, will benefit not only Uruguay but South America in general.

Nevertheless, the speech was not the most notable development that occurred, as an unidentified person called in a fake bomb scare to MERCOSUR’s headquarters prior to Mujica’s presentation. It seems that the Uruguayan leader will have some significant challenges if he wants to make his shipping dream a reality before his presidency ends.

The Rocha port

President Mujica has put a lot of his presidential eggs in the Rocha port basket. While the charismatic leader gained international notoriety due to his decision to legalize marijuana, the future of the Rocha port will similarly be a defining part of his legacy.

The Uruguayan leader signed a decree almost two years ago, on June 27, 2012, which authorized the construction of a deep water port. The port in question is to be built in the Rocha department, close to the border with Brazil, between the coastal areas called El Palenque and San Francisco.

Media reports explain that MERCOSUR has already pledged to donate $500 million USD to construct the proposed port’s basic infrastructure, though another $500 million USD will apparently be needed to finish it.

During his recent speech to MERCOSUR’s Parliament, President Mujica declared that the Rocha port is “essential” for Latin America as “this port is not Uruguay’s, [but rather] it belongs to the entire region.”

The Uruguayan government certainly has big plans for the proposed port apart from the expected benefits to the country’s domestic industries (it will lower the cost of local exports). Montevideo hopes to finalize a deal with Bolivia before the end of the year to ensure that the landlocked nation can utilize the port for shipping its goods.

Uruguay’s ambassador to Bolivia, Carlos Flanagan, has reportedly invited Bolivian President Evo Morales to visit Montevideo to sign a Memorandum of Understanding; which would be a preliminary agreement for an eventual deal over Rocha. As a landlocked nation, Bolivia is perpetually searching for a corridor for oceanic access.

The Spanish news agency EFE adds that Paraguay, South America’s other landlocked nation, also has a special interest in the Rocha port, as it provides Asunción with an alternative to export its products. EFE explains that nowadays, 36% of Paraguay’s soy exports rely on the Nueva Palmira port, also located in Uruguay, to reach the global market.

Protests and opposition

Nevertheless, some Rocha communities and environmental groups have protested against the project. A major concern is that it would destroy the local beaches which are a major source of tourist-related income for local communities. A report published in April by the Uruguayan daily El Pais, explains that, out of 887,000 tourists that arrived in Uruguay between January and March this year, 80,000 travelled to Rocha.

There seem to be various civic movements opposing major industrial projects that might compromise Uruguay’s environment. For example, the news agency Infobae has reported that there have been similar protests against the excavation of a mine by the company Aratiri.

But things went awry this past Monday when a phone call issuing a bomb threat was made to the offices of MERCOSUR, shortly before President Mujica’s speech. The MERCOSUR building was evacuated while the Uruguayan Army and the fire department searched for the explosive. Ultimately, no bomb was found and the organization’s staff was allowed to return to their offices.

According to the Uruguayan media, the anonymous phone call had a digitally-created voice which warned of a bomb and finalized with the statement “no to the port.”

At the time of this writing, the Uruguayan police have not reported whether any suspects have been arrested for issuing the threat, and there is not enough evidence to speculate.

Development forward!

During his speech, President Mujica acknowledged that there is a global environmental crisis, but further regional integration is also important. In addition, he declared the port would help the MERCOSUR bloc become more competitive vis-à-vis major trading entities such as the European Union, the United States, and China.

President Mujica has gained international affection for his laid back, informal attitude, but it seems that one of his most ambitious projects has not been well received at home. Now the president is in a race against time as he is constitutionally banned from running again in the country’s elections this upcoming October (though his successor will only be inaugurated next March 2015).

The construction of the Rocha port, if it does occur, will be an important milestone for both Uruguayan trading capabilities and South American integration. It will also be one of President Mujica’s major accomplishments for his nation.