Yesterday, leaders of the full member countries of the Mercosur trade bloc—Argentina, Brazil, Paraguay, and Uruguay—met in Asunción, Paraguay for the bloc’s 60th presidential summit. Chilean President Gabriel Boric and Bolivian president Luis Arce also did not attend, despite their invitation as Mercosur associated member states, preferring to focus on internal matters. 

Mercosur’s strength has been dwindling in recent years. Some members, such as Uruguay, have favored bilateral trade agreements with third parties without approval from other members of Mercosur, as opposed to Argentina’s preference to negotiate as a united bloc, as laid out in the bloc’s original rules. This disagreement came to light yesterday as Argentina’s Alberto Fernandéz expressed displeasure with Uruguay as it seeks a bilateral trade agreement with China, reports Reuters. Argentina proposed joint negotiations instead, a suggestion which has not yet been heeded. Brazil’s Jair Bolsonaro also protested Uruguay’s move, deciding to join the summit virtually as a form of protest (El País, La Nación). In the past, however, Bolsonaro has expressed support for “modernizing” the bloc by allowing bilateral trade agreements (Council on Foreign Relations). Paraguay’s diplomatic recognition of Taiwan also reinforced its disapproval of Uruguay’s actions.

Notably, Ukrainian President Volodymyr Zelensky’s request to speak at the Mercosur summit was declined after member countries “failed to reach a consensus on the matter,” according to a Paraguayan senior Foreign Ministry official (Bloomberg).

Despite these disagreements, Mercosur countries announced a new trade deal with Singapore and a reduction of its Common External Tariff (CET) by 10 percent, the latter a move Brazil had already enacted unilaterally (MercoPress, Agência Brasil). Mercosur’s 6-month presidency will pass from Paraguay to Uruguay following the completion of the summit.

Colombia

• The Biden administration is reportedly open to discussing the current US-Colombia free trade deal with the incoming Petro administration, notes Reuters. Senior officials are currently traveling to the country to work on building a relationship with the soon to be inaugurated president. 

Nicaragua

• Employees of outlet La Prensa have been forced to flee the country due to persecution by the Ortega regime, writes La Prensa.
  
  
• “The Biden administration dropped Nicaragua from a list of countries that can ship sugar to the United State at low import tax rates, another attempt to put economic pressure on the authoritarian government of Nicaraguan president Daniel Ortega,” reports ABC.

Brazil

• A police operation in Complexo do Alemão in Rio de Janeiro resulted in 18 dead, the fourth-most lethal operation in the city’s history. 3 of the top 4 instances occurred in the last 14 months. (Globo)
  
  
• A PCC gang member with numerous cases on his rap sheet, including homicide, was able to acquire a military-distributed arms license last year and managed to buy several guns until they were apprehended last week. The Bolsonaro administration has loosened requirements for gun ownership, reports Folha.
  
  
• The Brazilian Federal Police have largely ignored mass deforestation of the Brazilian Amazon, only carrying out 7 operations related to the issue over the last 6 years, according to the Igarapé Institute, notes NBC.

El Salvador

• El Salvador is at risk of default, highlighting the tensions between the need for an IMF loan and the Bukele government’s conflict with Washington over corruption and good governance, writes Catherine Osborne for the FP Latin America Brief.

Chile

• Check out Chile Constitutional Updates (July 20, 2022) for an update on all things constitutional convention and Chile.
  
  
• Former president Michelle Bachelet will vote to approve the proposed constitution during the referendum in September, reports Telesur. 

Argentina

• 98 years after the state massacre of indigenous communities at Napalpí, the Argentine state has recognized the attack, writes Lucía Cholakian Herrera at NACLA. 

Venezuela

• A newly translated and updated report from Michael Penfold at the Wilson Center explores the potential for democratization in Venezuela. 

Regional

• Pesticides used by fruit companies across Latin America have left workers infertile, reports BBC.
  
  
• “Illegal, unreported, and unregulated (IUU) fishing and associated crimes are undermining coastal communities throughout Latin America and the Caribbean – hurting the economic wellbeing of licit fishers and reducing coastal and ocean biodiversity, fish stocks, and food security,” writes A.J. Manuzzi for AULA Blog.
  
  
• “The Utopian urge (in Latin America) is to “refound” rather than reform countries, expressed in new constitutions or the disqualification of political opponents… Far better for Latin America’s politicians to be honest with their people about the limits of the possible and to pursue the path of steady progress rather than the search for paradise,” writes the Bello column at the Economist. 

Arianna Kohan and Jordi Amaral / Latin America Daily Briefing
http://latinamericadailybriefing.blogspot