Weekly News Update on the Americas

Brazil: Canadian gold mine loses license

Brazilian federal judge Claudio Henrique de Pina has revoked Toronto-based Belo Sun Mining Corp.'s environmental license for the construction of the $750 million Volta Grande open-pit gold mine near the Xingu river in the northern state of Pará, the federal Public Ministry office in the state announced June 25. Upholding a suspension ordered last November, the judge ruled that Belo Sun had failed to address "negative and irreversible" impacts the mine would have on three indigenous groups in the area, the Paquiçamba, Arara da Volta Grande and Ituna/Itatá. The communities are already under threat from the construction of the Belo Monte dam, which will cut water flows by 80% to 90% when it goes into operation, according to the government's National Indigenous Foundation (FUNAI).

Chile: Bachelet promises new Mapuche policy

Chilean president Michelle Bachelet announced a new policy for the country's indigenous communities on June 24, We Tripantu, the last day of the June 21-24 New Year celebrations observed by the Mapuche, the largest of the indigenous groups. The new policy includes the creation of an Indigenous Affairs Ministry; a Council of Indigenous Peoples to develop proposals and oversee negotiations; designated seats in Congress for indigenous groups; a commission to establish an official version of indigenous history acceptable to all sides; and a continuation of an existing program through which the government buys territory in south-central Araucanía region for transfer to Mapuche communities that claim it, with the goal of ending land disputes and occupations that have troubled the region in recent years.

Central America: what's causing child migration?

In a statement released the last week of June, the Honduran Black Fraternal Organization (OFRANEH), leading organization of the Garífuna ethnic group, charged that the US-backed Honduran government was largely responsible for the dramatic increase in minors trying to migrate from Central America over the past years. OFRANEH said the government "blames the numbers only on narco trafficking; however, they forget that this catastrophe is also caused by collusion among politicians, business leaders, state security forces and criminal organizations linked to the trafficking of narcotics. The government has seen the situation worsen for years without doing anything to change the scenario, much less to avoid it."

Cuba: foreign investment law takes effect

Cuba's new Foreign Investment Law went into effect on June 28, as was planned when the National Assembly of Popular Power passed the measure in March. The government is hoping to generate some $2.5 billion in investment each year under the law, which cuts tax rates for foreign investors from 30% to 15% and guarantees that most foreign-owned companies will be exempt from expropriation. Investment is expected to be focused on light industry, packaging, chemicals, iron and steel, building materials, logistics and pharmaceuticals; much of it will go to the Mariel port, 40 km west of Havana, which is being developed as a major "free trade zone." The government is currently studying 23 proposals for projects from Brazil, China, Spain, France, Italy, the Netherlands and Russia. The new law doesn't allow for private Cuban citizens to invest, and Cubans will work for the foreign companies through state-owned employment companies, not directly. (La Jornada, Mexico, June 29, from DPA, AFP, Prensa Latina; Global Post, June 29, from Xinhua)

Central America: US acts on child migrant 'danger'

US vice president Joe Biden made a one-day visit to Guatemala on June 20 for a meeting with regional authorities on the recent increase in Central Americans, especially underage minors, apprehended while attempting to enter the US without authorization at the Mexican border. Calling the influx of children "an enormous danger for security" as well as a "humanitarian issue," Biden said the US planned to continue repatriating the young immigrants but would provide Guatemala, El Salvador and Honduras with $9.6 million to reintegrate the deportees into society. The US is also offering financial aid that officials say will help stop the flow of immigrants: $40 million to Guatemala to launch a five-year program to reduce youth recruitment into gangs; $25 million for a five-year program to add 77 youth centers to the 30 now operating in El Salvador; $18.5 million through the six-year-old US-sponsored Central America Regional Security Initiative (CARSI) to support Honduran institutions in the fight against crime; and $161.5 million for CARSI throughout the region.

Mexico: wages stay down in stalled economy

Even as Mexican president Enrique Peña Nieto continues to push for economic "reforms," government agencies report that the economy still has one of the worst records in the hemisphere. Gross domestic product (GDP) grew just 1.1% in 2013, the poorest result in four years, and the government has reduced its forecast for growth in 2014 to 2.7%. The Banco de México, the country's central bank, cut its key interest rate this June to stimulate economic activity, warning that the growth outlook was "weaker than expectations even a couple of weeks ago." Only one-half of the population works in the formal economy, and even these workers are probably earning less than their parents did. Mexico's legal minimum wage has fallen at least 66% in purchasing power over the last three decades, according to Alicia Bárcena, the executive secretary of the United Nations Economic Commission for Latin America and the Caribbean (ECLAC, CEPAL in Spanish).

Haiti: Martelly harasses opponents, gets award

Haitian investigative judge Sonel Jean François ordered political activist Rony Timothée provisionally released on June 4 while an inquiry continued into charges that he had set fire to a vehicle and incited others to crime during a May 14 demonstration against the government of President Michel Martelly. Timothée—a spokesperson for the Patriotic Force for Respect for the Constitution (FOPARC), which backs the Family Lavalas (FL) party of former president Jean-Bertrand Aristide (1991-1996, 2001-2004)—was arrested by armed civilians on May 17 with a misdated warrant and was held in prison in Arcahaie, a town some 30 km north of Port-au-Prince, starting on May 19. Judge François is also investigating two other defendants in the case, Assad Volcy and Buron Odigé.

Puerto Rico: austerity law may spark strike

As of June 19 several Puerto Rican public employee unions appeared set to call a general strike to protest Law 76, a special austerity measure that Gov. Alejandro García Padilla signed on June 17. A coalition of 35 unions said it had selected a date for a general strike but would keep it secret so as to take the government by surprise; the union didn't describe the form the strike would take. Two major unions—the Union of Workers of the Electrical Industry and Circulation (UTIER), which represents workers at the Puerto Rico Electric Power Authority (PREPA, AEE in Spanish), and the Authentic Independent Union (UIA), which represents workers at the Puerto Rico Aqueduct and Sewer Authority (PRASA, AAA in Spanish)—held strike votes on June 17 and then staged a protest at San Juan's Plaza Las Américas shopping mall. Some unions also started holding smaller job actions in the first week of June. In October 2009 the unions responded to earlier austerity measures with a powerful one-day general strike, but it was unclear whether they would be able to mount a similar action now.

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