The Big Stories to watch this week in LATAM
US eases Venezuela sanctions as IMF moves in, Colombia-Ecuador trade war escalates, and what the hell is going on with Peruvian elections?
Ecuadorian-Colombian border dispute continues to escalate: Petro threatens legal action
As elections approach in Colombia, Ecuadorian President Daniel Noboa is ratcheting up attacks on his Colombian counterpart Gustavo Petro. Following Ecuador raising tariffs on Colombian imports into the country to 100%, Naboa has now accused Petro of indirect connections to the accused Ecuadorian narco Adolfo Macías, alias “Fito.”
Naboa claims that Petro knows members of the Ecuadorian opposition, who in turn know Fico. He presented no proof for his admittedly somewhat childish accusation.
Petro has denied the claims and threatened to sue Noboa for libel. Under Ecuadorian law, libel is illegal and punishable by up to a 6-month jail term, though it is unlikely prosecutors would go after a sitting president.
Colombia has imposed retaliatory sanctions on Ecuador.
Meanwhile, the trade war between the two countries is increasing clandestine smuggling of goods across the border as transporters and merchants try to avoid the sanctions.
Residents in the borderlands say the increased traffic of irregular crossings is aiding cocaine smugglers who operate in the region. Noboa and Petro have both accused each other of aiding criminality on their respective frontiers.
The story bears watching as Ecuador conducts aggressive military operations that have at times spilled over into Colombia and violated the human rights of Ecuadorians. They have also not resulted in security gains within Ecuador.
US eases sanctions on Venezuela as IMF and World Bank say they will open up credit lines
The United States has eased sanctions on Venezuela’s central bank that the country imposed in 2019. The moves allow for formal financing between the two countries as well as increased US dollar flows for trade.
Now that Venezuela is effectively a US protectorate, The US treasury department issued a licence authorizing commercial links with the Venezuelan state-run central bank and a number of other major state-run Venezuelan financial institutions.
The sanctions had put considerable pressure on Venezuelan international finance, forcing the country to find ways to import US dollars. They also greatly exacerbated the country’s ongoing financial crisis.
The International Monetary Fund (IMF) announced Thursday that they would also resume business with the country in an announcement that was followed shortly by the World Bank as well.
Acting President Delcy Rodriguez, who was installed by the US after former president Nicolas Maduro was captured in an attack on Caracas by US forces, hailed the announcements as “a grand diplomatic victory for Venezuela.”
It would seem that the US has formally decided Venezuela is open for business.
Peruvian election update: it ain’t over yet
After challenges by candidates, balloting problems in Lima, and the arrest of at least election officials, Peru’s electoral authority has announced that presidential election results will not be finalized until at least mid-May.
With 93 percent of ballots counted, right-wing candidate Keiko Fujimori leads with 17 percent, according to officials.
The second-place position, however, has been fraught with dramatic turns as well as dramatic accusations. Left-wing candidate, Roberto Sanchez, on 12 percent, and ultra-conservative Rafael Lopez Aliaga close behind on 11.98 percent — they are separated in the latest count by a mere 13,000 votes.
There are currently 15,000 ballots being challenged.
Aliaga, the ultra-right former mayor of the capital Lima, has been the most vocal critic of the delay. He has alleged fraud without presenting evidence and called for the election to be annulled.
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Hasta pronto, piratas!
