Regional Pulse: 27 September 2022
Southern Pulse’s weekly review of need-to-know events curated for people who work in Latin America.
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Key developments
ARGENTINA
BRAZIL
CHILE
COLOMBIA
ECUADOR
MEXICO
PERU
ARGENTINA
Bridgestone closes doors temporarily over union activity
On 23 September 2022, Japanese tire giant Bridgestone temporarily halted operations in the country, due to a lingering union conflict that began in April of this year. Company executives have cited workplace safety as a key consideration. As of now, no date has been set to resume operations, but Bridgestone has said that it will continue to work with the other parties involved to solve the ongoing conflict.
US-owned oil refinery accident ends in strike
On 22 September 2022, three workers died in an explosion at an oil refinery belonging to New American Oil in the western province of Neuquén, prompting a strike over unsafe working conditions on the same day. The Rio Negro Private Oil and Gas Union claims 11 workers have died while on the job since 2018. The latest incident reportedly happened during a routine maneuver in the early hours of the morning. Investigations are ongoing.
Kirchner’s corruption woes grow
On 20 September 2022, Interpol and the Ministry of Foreign Affairs revealed that former businessman Isaac Esparza Hidalgo, accused of laundering millions on behalf of Néstor and Cristina Kirchner’s private secretary, Daniel Mu?oz, will be extradited from Mexico to Buenos Aires in the coming weeks. Hidalgo bought plots of land in the Turks and Caicos Islands with money that was allegedly laundered through Mu?oz’s business dealings.
BRAZIL
US reaffirms trust in Brazilian electoral system
On 24 September 2022, the US Embassy in Brasilia issued a press release where it reaffirmed its trust in the country's electoral system. The US Chargé d'Affaires, Douglas Koneff said that Brazil's electoral system was one of the safest and most reliable in the world. Legislation has already been tabled in the US to immediately accept the election results. The statement comes amid repeated allegations by President Jair Bolsonaro that the country’s electronic electoral system is susceptible to fraud. He has also hinted he may not accept the results of the vote.?
Poll suggests Lula may win first round outright
On 22 September 2022, Datafolha released its latest poll for the October presidential election, which showed –? for the first time since June 2022 – that former president Luiz Inacio Lula da Silva would be elected outright in the first round of voting. The poll found that the former president had 51% support from definite voters, while President Jair Bolsonaro had 37%.
领英推荐
Lula to focus on oil self-sufficiency if elected
On 22 September 2022, former president Luiz Inacio Lula da Silva said he would focus on gaining self-sufficiency in oil production if elected in October. Although the country is at the forefront of oil extraction technologies, it currently lacks the refinement capacity to meet its domestic energy demands. Lula said he would invest heavily in this sector, but no specific investment figures were announced.?
CHILE
Hackers steal 400,000 emails from Defense Ministry
On 22 September 2022, Guacamaya hacking group said it had stolen over 400,000 emails containing sensitive police, army, navy and airforce intelligence information from the Defense Ministry. The documents detail the inner workings, logistics, and strategies of most of the defense apparatus. There have been several high-level Defense Ministry resignations following the data breach. The hacking group has threatened to make the information public along with similar content they claimed to have stolen from Colombia, El Salvador, Mexico, and Peru.
COLOMBIA
FARC dissident leader back from the dead for Petro peace plan
On 23 September 2022, FARC dissident leader, Néstor Gregorio Vera Hernández, alias Iván Mordisco, reappeared in a video declaring support for President Gustavo Petro’s Total Peace plan. The former government of Iván Duque had declared Mordisco dead and his CCO FARC disident group destroyed in a 10 July 2022 bombing. In a show of good faith towards future peace talks, CCO leader Mordisco ordered his troops to abstain from attacking security forces unless attacked first. The CCO is the largest FARC dissident group in operation.
Government to grant 680,000 hectares to small farmers and minority groups
On 22 September 2022, the government announced it would grant over 680,000 hectares of land to over 12,000 dispossessed or historically destitute small farmers, indigenous community members, and afro-colombian families. The land will come from state land banks, illegally acquired land expropriated by the state, and land bought by the state from indebted landowners. The announcement comes as small farmers and indigenous groups continue to conduct land invasions. Over 100 have taken place in the past few months, with an increase in incidents after Petro took office. Colombia has the highest private land concentration in South America, according to Oxfam.?
ECUADOR
Natural gas field auction attracting 34 companies postponed?
On 22 September 2022, the Energy Ministry announced a public auction for the Amistad natural gas field, located off the Guayaquil Gulf, would be postponed until August 2023. The decision was met with criticism from the Petroleum Coalition President Bladimir Cerón who said no technical reason was given for the delay which would cost the country USD500 million in lost investment. The auction, which had attracted 34 companies, was set for November 2022.
Government renegotiates USD3.2 billion in debt with China
On 19 September 2022, President Guillermo Lasso announced a debt restructuring deal with the Chinese Development Bank (CHDB) and the Chinese Export-Import Bank (EXIMBANK), totalling USD3.2 billion. With the CHDB, maturity dates for debt worth USD1.4 billion were extended to 2027. Debt maturity dates with EXIMBANK were extended to 2032, while some interest rates were reduced and amortizations in USD1.8 billion worth of loans were eliminated. The agreement also involves Ecuador increasing its oil exports to China. The original loan deals were reached during former president Rafael Correa’s government.?
Gang violences reaches prosecutors
On 19 September 2022, local prosecutor Edgar Escobar was gunned down as he arrived at the Merced Prosecutor Office in Guayaquil. Escobar had been investigating recent killings and gang violence in prisons. A rise in targeted attacks by criminal gangs has pressured President Guillermo Lasso’s government to push for a Constitutional reform referendum in which public security will be a key issue. As of September 2022, 25 uniformed security personnel have been killed by these gangs, as published here last week.?
MEXICO
Country hit by multiple earthquakes
On 24 September 2022, earthquakes around the country persisted for a fifth day. A 7.7 magnitude earthquake struck the state of Colima on 19 September 2022. Over 2,000 aftershocks of up to 6.9 magnitude have since been felt across the country and four people had died as of last weekend.?
Organized crime group massacres bar patrons
On 21 September 2022, members of the Cartel Santa Rosa de Lima (CSRL) massacred 10 individuals at a bar in Guanajuato. In posters left at the scene, the CSRL claimed the victims supported the Cartel Jalisco Nueva Generación and that the same would happen to anyone else who did.
Solar energy representatives report rising kidnappings
On 17 September 2022, the Council for Photovoltaic Energy Workers reported the 20th instance of intimidation and kidnapping of their workers by criminal groups in Jalisco just this month. The workers are asked to provide information on solar energy installation in remote locations and are then ambushed, intimidated, and held for ransom.?
PERU
Castillo seeks to normalize some imports from Russia to fend off food insecurity?
On 20 September 2022, President Pedro Castillo, speaking at the 77th UN General Assembly, asked the international community to press for an agreement with Russia to allow for unfettered grain exports from Ukraine and the normalization of Russian fertilizer exports. These two items are essential for food security in Peru and throughout the developing world. Food insecurity has been on the rise in the country due, in part, to grain shortages and the restricted fertilizer supply.?
Mining sector to significantly outperform overall GDP growth
On 19 September 2022, the Finance Ministry announced that despite worse than expected GDP figures for 2022, the mining sector would continue to grow at a much higher rate. According to the Ministry, in the first half of 2022, growth in the sector increased by nearly 10% compared to overall GDP growth of 3.3% (revised down from 3.6%). There are 43 mining projects under construction and 67 projects in the planning stages, totalling an investment of nearly USD54 billion in 17 different regions of the country.?
President accused of favoring real estate company
On 19 September 2022, TV outlet El Cuarto Poder claimed President Pedro Castilo and former Transport Minister Geiner Alvarado had pressured the Housing Ministry to select real estate company Marka Group for a building program supported by millions of dollars of public funds. The same company was not selected in a prior public bid during the presidency of Francisco Sagasti because it failed to fulfill technical requirements. The claims come shortly after Alvarado, a close ally of Castillo, was forced to resign from his cabinet position last week due to corruption allegations.?