Regional Pulse: 21 June 2022
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Key developments
ARGENTINA
BRAZIL
CHILE
COLOMBIA
ECUADOR
MEXICO
PERU
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ARGENTINA
Interest rates hiked to 52% as inflation passes 60%?
On 16 June 2022, the Central Bank increased interest rates by 300 basis points to 52% – the biggest increase in three years. The Bank said the rise was a consequence of increased financial risk perceptions, rising global prices, and the need to encourage savings in local currency. Inflation is running at over 60%.
Economy Ministry introduces progressive copper tax
On 14 June 2022, Economy Minister Martín Guzmán announced copper miners must choose between paying a fixed 4.5% tax or a tax that ranges between 0% and 8% depending on the mineral’s price. Companies must commit to their preferred tax rate for 30 years before starting a new project. Chile and Peru have implemented similar taxes on copper to collect more when international prices are high. The country’s mining chamber CAEM rejected the new measure, arguing instead that copper exports tax should be eliminated to make the country a more attractive destination for investment.
Authorities ground Venezuelan airplane suspected of espionage?
On 13 June 2022, authorities grounded a Boeing 747 cargo plane sold to Venezuela by Iran. According to an Interior Ministry document, 14 Venezuelans and five Iranians were traveling on the plane, some of whom are reportedly linked to Iran’s Islamic Revolutionary Guard Corps. Israel and the US praised Argentina for seizing the plane.?
BRAZIL
Central Bank implements much-expected interest rate rise??
On 15 June 2022, the Central Bank increased interest rates by 50 basis points to 13.25%, which is the highest level since 2017 and a far cry from the 2% record low in March 2021. It was also announced that another increase may soon be implemented.
领英推荐
President Bolsonaro’s son hosts right-wing summit for LatAm politicians?
On 13 June 2022, Brazil hosted the third edition of CPAC Brasil in Campinas, S?o Paulo. The conference is a spinoff of the US Conservative Political Action Conference. Eduardo Bolsonaro, son of Brazilian President Jair Bolsonaro, welcomed former Chilean presidential candidate José Antonio Kast and Argentine congressman and presidential candidate Javier Milei.?
CHILE
Police make mass arrest and seize contraband in northern city of Arica
On 17 June 2022, Chilean police arrested 18 members of Los Gallegos – a criminal group affiliated to the Venezuelan Tren de Aragua human trafficking cartel. A large cache of weapons and drugs were seized in a clandestine prison and torture site in the port city of Arica in northern Chile.?
Bachelet to end UN role and campaign for constitution ‘yes’ vote
On 13 June 2022, UN High Commissioner for Human Rights Michelle Bachelet announced she would not seek a second term and would be returning to Chile to campaign in favor of the new constitution. Her four year term is up on 31 August, 2022. The referendum on Chile's new constitution, which is still being drafted, will be held on 4 September 2022.
COLOMBIA
Petro promises not to seek re-election
On June 14 2022, left-wing politician Gustavo Petro listed five guarantees he would uphold if elected president on 19 June 2022. He promised not to run for re-election, seek justice without seeking personal revenge, work with austerity to overcome the current socio-economic crisis, respect the constitution, and combat corruption. His pledges reflect concerns among Colombia’s right that a Petro presidency would lead to authoritarianism and unchecked government spending.
Security forces kill second FARC dissident leader in less than a month
On 13 June 2022, FARC dissident Leider Johany Noscué, aka Mayimbú, was killed by state forces in the Cauca department. Noscué commanded around 2,000 men across the Colombian southwest, controlling coca and marijuana plantations. Noscué is the second FARC dissident leader to be killed in less than a month. In late May, Miguel Botache Santillana, aka Gentil Duarte, was reported to have died in Venezuela following a clash with an unidentified armed group.
ECUADOR
CONAIE head says protests won’t end until all 10 demands met
On 15 June 2022, CONAIE leader Leonidas Iza warned President Guillermo Lasso nationwide protests would not end until their 10 demands were met. These range from fuel price freezes to a moratorium on future privatizations. Iza, who is on parole, was arrested on 14 June for ordering the blockade of roads and stopping public services.
Massive protests launched over price rises
On 13 June 2022, indigenous groups blocked roads in 12 of the country’s 24 provinces over rising fuel and food costs. The protests are led by CONAIE, a powerful confederation of indigenous movements.
MEXICO?
Authorities search home of former PRI president
On 14 June 2022, the Prosecutor's Office for the state of Campeche searched the home of former governor and PRI party president Alejandro Moreno Cárdenas. Authorities plan to charge Cárdenas with fraud, misappropriation of public funds, and abuse of authority.?
Government reports 257 murders in two days
On 14 June 2022, the Security Ministry reported 257 murders over the weekend of the 11 and 12 of June 2022. The tally is the second highest this year and above the average of 221. The State of Mexico (24), Chihuahua (20), Guanajuato (19), and Baja California (17) were the states with the most violent deaths, the vast majority of which were attributed to organized crime.?
Foreign Secretary Ebrard announces presidential run
On 14 June 2022, Foreign Secretary Marcelo Ebrard announced his participation in the MORENA Party primary for the 2024 presidential elections. Mexico City governor Claudia Sheinbaum is also rumored to have ambitions to be the 2024 MORENA party presidential candidate. President Andrés Manuel López Obrador has said on several occasions he will not seek re-election.
PERU?
President Castillo called to testify over corruption allegations
On 16 June 2022, the Congressional Oversight Commission summoned President Pedro Castillo to testify on 21 June over claims of corruption related to a government tender. Castillo is one of several individuals under investigation. The case has been dubbed the Sarratea Case by local media due to the location of a house where extraoficial meetings allegedly took place.
GDP growth slows due to mining protests
On 15 June 2022, the National Institute of Statistics and Information (INEI) reported GDP growth of 3.69% in April 2022, which marks a slowdown in economic activity. Protests at some of the country’s biggest mines were responsible for the deceleration. Besides extractives, most other sectors performed well, particularly hospitality which grew by 48.48% as COVID-19 restrictions were eased.