Mexican president Andrés Manuel López Obrador (AMLO) has introduced energy policies focused on “energy sovereignty” in Mexico, promoting state-run companies over the private sector. While this measure has been popular domestically, it has caused conflict abroad, brewing tensions with the United States and Canada. The two countries have called for a trade dispute, alleging that AMLO’s energy policies are discriminatory against international companies and do not abide by the United States – Mexico – Canada Agreement (USMCA) trade agreement. 

Conflict surrounding the trade dispute has been astir for some time, but has reached new heights over the last week with announcements that the US would “(demand) dispute settlement talks” and that Canada would back them in this effort. Yesterday, AMLO claimed that Biden did not understand the USMCA and that he would write the US president a letter to explain the agreement’s details. However, Biden was not behind the trade dispute, at least not directly—the US Trade Representative’s office was. 

While AMLO has put on a tough public image regarding the dispute, reports suggest that AMLO is in fact concerned about the regional trade disagreement and would like to avoid it coming to a head. If the conflict moves beyond dialogue and is assessed by a trade dispute panel, Mexico “could face billions of dollars in retaliatory tariffs” should the panel decide Mexico’s policies are indeed discriminatory. (Reuters, Bloomberg, Reuters, WPR)

Argentina

• Sergio Massa was officially named “Super-Minister” of the economy, replacing Silvina Batakis after less than a month in office, reports Infobae. 
  
  
• Former president Mauricio Macri is intentionally adding fuel to the fire in an effort to further rattle the tense relationship between current president Alberto Fernandez and vice president Cristina Kirchner, according to Forbes.
  
  
• Venture Capital has typically ignored Latin America, but Argentine investors Hernán Kazah and Nicolás Szekasy have strategically and successfully invested in startups across the region, growing new opportunities, writes Americas Quarterly. 

Bolivia

• Bolivian startup Quantum is producing unique, small electric cars using batteries that can be made from the country’s large lithium deposits, reports Reuters. 

Brazil

• A newly discovered document from 2019 reveals that allies appointed by the Bolsonaro administration in the National Foundation for the Indigenous (Funai) made a list of which Funai officials in support of or against the Bolsonaro administration. Those against the government were targeted to be replaced by Bolsonaro allies, primarily without any relevant experience and from the military, writes Ruben Valente at A Pública.

Chile

• The US should consider following Chile’s lead in updating its constitution, writes David Adler for The Guardian.

Guyana

• “More so than in prior decades, Guyana is in a unique position in its relationship with the United States, commanding increased attention from the latter due to its emergence as an oil and gas producer. Guyana’s growing economic clout and its role as an emerging regional leader in the Caribbean Community (CARICOM) is augmenting its relationship with the United States. While the asymmetry between the two remains vast, Guyana is closing this gap. U.S. policy toward the Caribbean, or toward CARICOM specifically, must now account for Guyana,” writes Wazim Mowla for Global Americans. 

Mexico

• As a drought in Northern Mexico has citizens in dire need of water, multinational companies like Coca Cola and Heineken continue to extract groundwater from public reservoirs, reports The Guardian.

Migration

• Migration from Haiti to the US has increasingly been funneled via the Bahamas through maritime smuggling. Exploitation by smugglers has led to tragedy at times, most recently resulting in 17 dead after a boat capsized on the way to the US, reports InSight Crime. 

Regional

• Insight Crime published its first of two investigations into Illegal, Unreported, and Unregulated (IUU) fishing in Latin America and the Caribbean. The first installment focused on law enforcement challenges in Jamaica, Costa Rica, Panama, Guyana, and Suriname.
  
  
• “Significant changes in areas like education, automation, and public investments” in Latin American countries “may yet be able to capture the economic and commercial dynamism that has helped drive growth and prosperity in other parts of the world,” writes Shannon O’Neil in Americas Quarterly. 
  
  
• While energy subsidies “may help with inflation, they add to deficits,” reports the Economist. They also do not help reduce inequality, as those who consume more petrol tend to be economically better off.  
  
  
• “We cannot depend solely on distant international supply chains,” writes Susan Segal for Americas Quarterly, highlighting the challenges of deglobalization for Latin America.

Venezuela

• “Britain’s High Court has rejected President Nicolas Maduro’s latest efforts to gain control of more than $1 billion of Venezuela’s gold reserves stored in the Bank of England’s underground vaults in London,” reports Reuters. 

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