FTAs
Trump's vision for USA: shithole of racism
So by now we've all heard. President Trump, in an Oval Office meeting with a bipartisan group of senators, apparently referred to "shithole countries" whose nationals should not be welcomed in the US. The meeting was ostensibly on possibilities for a compromise immigration deal to protect the now suspended DACA program in exchange for Democratic support for some version of Trump's border wall. But the comment evidently came up regarding Trump's decision to end Temporary Protected Status for folks from Haiti, El Salvador and several African countries. According to sources speaking to the Washington Post, Trump said: "Why are we having all these people from shithole countries come here?” Trump suggested the US should instead bring more people from countries such as (white) Norway. "Why do we need more Haitians?" Trump is reported to have said. "Take them out."
Peru and Australia sign free trade pact
Peru and Australia signed a free trade pact Nov. 10 that does away with 99% of tariffs on imported goods from Australia, while securing Peruvian exports greater access to Australian markets. The Peru-Australia Free Trade Agreement (PAFTA) was signed in Danang, Vietnam, at the 25th summit of the Asia-Pacific Economic Cooperation (APEC) forum. Peru's President Pedro Pablo Kuczynski (PPK) announced the deal on Twitter, boasting that the agreement will boost employment and attract investment. Speaking at the APEC summit, PPK reiterated his support for free trade and warned about the dangers of protectionism.
China's rise threatened by 'de-globalization'?
The China Institute in New York City on Oct. 5 featured a discussion with Harvard scholar William C. Kirby, author of Can China Lead? Reaching the Limits of Power and Growth, on the question: "Can China Lead in the Age of De-Globalization?" Although he didn't state it explicitly, his answer appeared to be "no." Kirby began by echoing the prediction that as the 19th century saw Great Britain as the dominant world power, and the 20th saw the United States of America, the 21st could belong to China. But Kirby sees this succession as now threatened by the "destabilization of global norms" and the rise of "anti-globalist neo-authoritarian movements everywhere." He invoked the Brexit, the rise of Le Pen in France—and finally Donald Trump, who, Kirby noted, is rather obsessed with China.
Control of oil at issue in NAFTA re-negotiation
As "NAFTA 2.0" negotiations open, a provision that essentially locks in Canada's current levels of oil exports to the US is drawing opposition from unlikely allies across the Canadian political spectrum but winning staunch support in the "Oil Patch," as the country's petroleum industry is colloquially called. The "proportionality clause" originally appeared in the US-Canada Free Trade Agreement of 1988 and became a major issue in that year's national election that returned Prime Minister Brian Mulroney to office. It was replicated six years later in the North American Free Trade Agreement—although Mexico won an exemption. The clause can be invoked if a government in Canada reduces US access to Canadian oil, natural gas, coal, electricity or refined petroleum products without a corresponding reduction in domestic access to those resources.
Taiwan sacrificed to Central America geopolitics
Panama announced June 13 that it is breaking its long-standing diplomatic ties with Taiwan in favor of establishing relations with China—a clear political coup for Beijing. The Panamanian statement said it recognized "only one China" and considers Taiwan to be part of it. The change was spurred by an unavoidable fact: China is the second most important Panama Canal user after the United States. Last year it sent 38 million metric tons of cargo through the interoceanic waterway, accounting for 19% of its traffic. The announcement of the diplomatic switch also comes just as Chinese enterprises began building a container port, with natural gas terminals, in Panama's Colón province, on the Atlantic side of the canal. "I think Dominican Republic and Nicaragua will soon follow," Mexico's former ambassador to China, Jorge Guajardo, tweeted soon after the announcement.
Colombia: popular power defeats mega-mining
Mining multinational AngloGold Ashanti announced April 27 that it will abandon its planned mega-project at La Colosa, in Colombia's central department of Tolima, following a popular vote by local residents to reject the project last month. Members of Cajamarca municipality held the vote or consulta March 26. Leader of the "No" campaign, Renzo García of the local Environmental Committee for Defense of Water and Life, called the company's decision to abide by the vote "a good sign for democracy." (El Espectador, April 27)
Colombia: top court deals blow to open-pit project
Colombia's Constitutional Court on Feb. 28 ruled that "prior consultation" with local Afro-descendent and indigenous communities must be carried out before an open-pit gold mine project can move ahead at Villonza, Marmato municipality, Caldas department. The ruling made reference to the indigenous community of Cartama and the Afro-Colombian community of Asojomar, both of which are largely sustained by small-scale artisanal mininng. Under a 2007 concession, Canada-based Gran Colombia Gold Corporation was to acquire these informal claims. In 2011, Father José Reinel Restrepo, the local parish priest, was murdered after returning from Bogotá, where he had registered his objection to the project with officials. Gran Colombia Gold is meanwhile is demanding Colombia pay $700 million under terms of the Canadian free trade agreement for failure to evict the artisanal miners. (TeleSur, Radio Caracol, March 2; El Tiempo, Feb. 28; Radio Caracol, Feb. 25)
Peru denied legal costs in FTA pollution case
An international arbitration body, having ruled for Peru in a case brought by a US mineral interest under terms of the Free Trade Agreement, is now denying Lima recovery of its legal costs. New York-based Renco Group Inc brought the case before the UN Commission on International Trade Law (UNCITRAL) in 2011, charging Lima with violating investment protection provisions of the FTA, formally known as the US-Peru Trade Promotion Agreement. At issue was Lima's demand that Renco's affiliate Doe Run Peru clean up decades of toxic pollution linked to lead and zinc smelting at its facilty in La Oroya, which Renco said forced the subsidiary into bankruptcy. Renco sought $800 million in compensation. UNCITRAL turned down Renco's claim on jurisdictional grounds in July 2016, but subsequently decided to waive its usual "loser pays" principle, forcing Peru to pay half the legal costs in the case, some $3.8 million. UNCITRAL cited Peru's delay in raising its objections to the tribunal's jurisdiction. Renco says it will file the case again "in a manner that cures the technical legal defect that was the basis for the dismissal." Peru's new President Pedro Pablo Kuczynski has pledged to re-open the idled Oroya complex, and says its auction to new owners willing to address its financial and environmental problems will take place in March. (Lexology, Jan. 24; Gestión, Jan. 12; Law360, Nov. 14; Bloomberg, July 18; VOA, July 6)
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