Daily Report

Quebec fracking ban challenged under NAFTA

US-incorporated energy firm Lone Pine Resources is challenging Quebec’s moratorium on fracking under terms of the North American Free Trade Agreement, and demanding more than $250 million in compensation. The company—headquartered in Calgary but incorporated in Delaware—officially notified the US Securities and Exchange Commission that on Nov. 8 it filed a notice of intent to sue the Canadian government under NAFTA's controversial Chapter 11. Quebec lawmakers in June approved legislation, Bill l8, that imposed a moratorium on hydraulic fracturing pending further study on its environmental impacts. Lone Pine cites Chapter 11's Article 117, on investor damages, in its claim for the loss of what it calls a "valuable right...without due process, without compensation and with no cognizable public purpose."

Mexico: pressure mounts for drug legalization

A study released late last month by the Mexican Institute for Competitiveness, an elite think-tank based in Mexico City, asserted that proposals to legalize cannabis in Colorado, Washington and Oregon could cut Mexican drug cartels' earnings from traffic to the US by as much as 30%. The study, entitled "If Our Neighbors Legalize," drawing on previous research by the RAND Corporation, predicts that legalization in any US state would help drive down the price of high-quality domestic cannabis, undercutting the cheaper and less potent cartel imports. It calculated a loss of $1.425 billion to the cartels if Colorado legalized, $1.372 billion if Washington legalized, and $1.839 billion if Oregon voted yes. (AP, Nov. 1) In the Nov. 6 vote, initiatives calling for legalization of cannabis under regimes of state control were approved by voters in Colorado and Washington, but rejected in Oregon.

Colombia rejects Hague ruling in Nicaragua maritime dispute

The International Court of Justice at The Hague ruled Nov. 19 that a cluster of disputed islets off Central America's Caribbean coast belong to Colombia and not to Nicaragua—but drew a demarcation line in favor of Nicaragua in the disputed waters. The move immedaitely sparked protests in cities across Colombia, including Medellín, Cali and Cartagena. Colombia's President Juan Manuel Santos flew to the island of San Andrés, the seat of the disputed archipelago, to support protests there. Slogans included "The fatherland is not for sale," "Why should we quit our sea?," and "ICJ, how much did the multinations give you for this ruling?" 

Brazil: crime wars rock Sao Paulo

Brazilian police this month launched "Operation Saturation" to crush the Sao Paolo criminal network known as the First Capital Command (PCC), in response to the mafia's campaign of assassinations of police officers and employees. So far this year, 95 officers have been murdered in and around the sprawling city, according to official figures—up from 47 in 2011. Most were ambushed off duty by presumed gang members. Operation Saturation was launched after Marta Umbelina, an office worker at Sao Paolo's military police, was shot dead in front of her house and in sight of her 11-year-old daughter Nov. 3. In one of the operation's raids, military police found what they say is a hit list with the names and addresses of 40 officers.

Brazil: Amazon native killed by federal police

A Munduruku indigenous man was killed in a gunfight with Brazilian federal police at the remote Amazonian settlement of Teles Pires, straddling the border of Mato Grosso and Pará states, authorities said Nov. 9. Six other Mundurukus and three officers were wounded, the federal police said. The police were part of a multi-state operation targeting illegal gold mining. Police said a group of Munduruku men armed with shotguns and bows and arrows attacked the officers as they were destroying mining equipment. Authorities charge Munduruku leaders were receiving monthly payoffs from illegal miners. (Otramérica, Nov. 25; Agência Estado, Nov. 21; EFE, Nov. 9)

Brazil: violence halts work at Belo Monte dam

Work on Brazil's controversial $13 billion Belo Monte hydro-dam has been at a halt since Nov. 11, when workers torched buildings at three work sites of the Monte Belo Construction Consortium (CCBM), hired by parastatal Norte Energia to build the massive complex. The violence broke out after CCBM proposed a seven percent wage hike to the workers in an area where the inflation rate is at 30%. In addition to labor undest, CCBM has also faced physical obstruction by local indigenous peoples. On Oct. 9 a group of protesters—150 natives and local fishermen—interrupted construction, accusing Norte Energia of backtracking on accords signed in June when indigenous people occupied the dam site for three weeks. (AFP, Nov. 13; Xingo Vivo, Nov. 11) A local court halted construction of the project Aug. 14, finding that indigenous inhabitants had not been consulted, but Brazil's Supreme Federal Tribunal ordered construction to resume two weeks later, citing the project's criticality to "the administrative order, the economic order and the Brazilian energy policy." Brazil's Prosecutor General is to meanwhile investigate the question of whether indigenous peoples had been properly consulted. (The Rio Times, Aug. 30)

Bolivia: dissent over indigenous identity in census

Bolivia's President Evo Morales sparked controvery by exlcuding the word mestizo, or mixed-race, as a choice for ethnic identification in the national census now underway—the country's first since 2001. Morales said that including the choice would only serve to "divide Bolivia," and pointed out that it had never been used in any previous census. But this census for the first time offers citizens the option of declaring themselves members of one of 40 ethnic groups. Opponents charge that Morales, who has built his political program around indigenous identity, is hoping to use the census results to consolidate power. "I'm not Aymara, I'm not Quechua I'm a mestizo," read graffiti painted on walls around La Paz.

Peru: Amazonian leaders press land demarcation

The Inter-ethnic Association for Development of the Peruvian Rainforest (AIDESEP) on Nov. 22 issued an open letter to President Ollanta Humala, the national congress, and local and regional authorities, demanding that funds for the continued demarcation of indigenous lands in the Amazon Basin be included in the 2013 budget bill now being debated. The letter called for 100 million soles ($38 million) be earmarked for "recognition, titling and territorial expansion of Amazonian communities." The statement asserted that there are 988 identified communities in the rainforest currently awaiting demarcation and titling.

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