Argentina: US deputy secretary of state
for western hemisphere affairs, Thomas Shannon, met Argentina's President
Cristina Fernández de Kirchner on 27 August. This is Shannon's second visit to
Argentina in two months, suggesting that the US is making an effort to improve
relations with Fernández. Ties with her government got off to an awkward start
following allegations by US prosecutors that Venezuela's president, Hugo Chávez ,
had provided money for her election campaign in 2007. Shannon, who also visited
Buenos Aires in April, spent 50 minutes with Fernández. The meeting took place
behind closed doors, but an official statement released afterwards indicated
that they had discussed plans for the Argentine president to visit the US in
September and again in November.
Honduras: On 31 August Honduran
officials announced that the US had lifted a more than five-month ban on
cantaloupe imports from one of the country's biggest melon farmers. Honduras'
agriculture minister, Héctor Hernández, said that the Montelibano melon company
was given the "green light" to resume melon exports to the US following a
salmonella scare. The US Food and Drug Administration investigated Montelibano's
crops and facilities, but found no evidence of contamination.
Mexico: The Banco de México reported on
1 September that the inflow of remittances fell by 6.9%, year-on-year, in July.
This is the biggest year-on-year fall since the Banco de México began charting
remittances in 1995. Remittances still came to US$2.015bn in July, however. The
fall suggests that the US economic downturn is not bottoming out and is
substantially worse than the mild recession the country encountered at the
beginning of this decade. Optimists, however, point out that for the first seven
months of 2008 remittances are down by only 2.9%, year-on-year, at US$13.62bn.
In 2007 remittance revenues were down by 1% on 2006 at US$23.98bn. They further
point out that the growth in remittances tracks construction employment in the
US. This indicator had been falling since the beginning of 2006 until it started
rising again, from a much lower base, at the beginning of this year. The Banco
de México has said that the flow of remittances is being affected as much by
tighter border controls on the US side as by economic conditions in the US.
Mexico: On 2 September in a radio
interview regarding the US presidential elections, Mexico's President Felipe
Calderón Hinojosa said that John McCain, the Republican candidate, understood
Mexico “better". The clear implication is that Barrack Obama, the Democratic
candidate - who has yet to visit Latin America - does not understand the US's
biggest neighbour. McCain is a senator for the border state of Arizona, while
Obama represents Illinois. Calderón balanced his judgment with the opinion that
Obama has a lot of support both among Mexicans and Mexican-Americans, and that
the Democrat policy on immigration is less conservative than the Republican
policy. This is slightly sophistic, because McCain himself backed a bilateral
and liberal immigration reform which failed to get through the US congress last
year because of Republican opposition. Calderón's other observation was that
protectionist pressures are rising in the US. Increased protectionism could be
disruptive for Mexico, which sends over 80% of its exports north. Calderón said
that there had been a lot of superficial talk in the election campaign about
cancelling or modifying Nafta, Mexico's free trade treaty with the US and Canada
which eases the access of Mexican goods to the US. Most of this anti-Nafta talk
has come from Obama. McCain has consistently defended Nafta.
Paraguay: On 28 August US deputy
secretary of state for western hemisphere affairs, Thomas Shannon, met President
Fernando Lugo, who took office on 15 August. He is the most senior official from
the US government to have visited Paraguay since Lugo took over: US commerce
secretary, Carlos Gutierrez, attended the inauguration. Lugo announced on 27
August that US President George W Bush had invited him for talks at the White
House in October, but admitted that he had not yet decided whether to accept the
invitation due to the proximity of the US presidential election in November.
Lugo suggested that it might be worthwhile to wait for a new president to take
office before travelling to Washington. Sources suggest the two leaders might
meet next month instead, when Lugo is in the US for the annual gathering of the
UN General Assembly (20-22 September).
Venezuela: On 1 September the
government of President Hugo Chávez strongly rejected allegations by the US Drug
Enforcement Administration (DEA) and the US ambassador in Caracas of a sharp
increase in drug trafficking across Venezuelan territory. A fresh war of
words has broken out between President Chávez and the US ambassador, Patrick
Duddy, only a couple of months after the two had suggested that both countries
were seeking to renew cooperation on the drugs front. President Chávez expelled
the DEA in 2005, accusing its agents of spying.
According to the US, the amount of cocaine being
trafficked through Venezuela has jumped sharply in the past few years, with a
16-fold increase in the quantity of cocaine being shipped through Venezuelan
airspace since 2002. The US estimates that the total amount of Colombian cocaine
flowing through Venezuela reached 256 metric tonnes in 2007, four times more
than in 2004. The White House anti-drugs czar, John Walters, said recently there
had been a 'spectacular increase' in the flow of drugs across northern Venezuela
en route to the Dominican Republic and Haiti. Ambassador Duddy said on 29 August
that drug traffickers were “taking advantage of the gap" between Venezuela and
the US, reiterating the US estimate of a quadrupling in cocaine flows.
On 30 August Chávez declared that Venezuela “did not
need US assistance" to tackle drug trafficking and suggested that Duddy should
leave his post before he was expelled. The UN is also clear that Venezuela has
become a more important route for drug trafficking, following crackdowns in
Colombia and also in Brazil, another key exit route for Colombian cocaine.
However, the Venezuelan government has always maintained that it is vigorous in
its fight against drug groups. Vice president Ramón Carrizález pointed out on 1
September that according to the latest 2008 UN statistics, Venezuela intercepted
47t of cocaine in 2007 (and 40t to date in 2008), a marked increase on previous
years.
Carrizález also slammed the DEA for prohibiting the
Venezuelan government from acquiring a key reactive substance (manufactured in
the US) that is used to detect drugs. Carrizález said Venezuela was working to
develop its own version of the chemical. Carrizález added that Venezuela is a
“victim" of the drugs trade which, he said, is almost entirely stimulated by
demand in the US market.
Venezuela: On 2 September at the US
Republican party convention in St. Paul, Minnesota, presidential candidate John
Mcain's policy advisor on Latin American affairs, Otto Reich, said McCain would
work to eliminate US dependence on Venezuelan oil supplies. Reducing US oil
dependence has been a major theme in the 2008 US presidential campaign. The
reality is that, even in the event of major oil discoveries in Alaska, it would
still take years to wean the US off its heavy reliance on oil imports.
Venezuela is the fourth most important petroleum
supplier to the US (after Canada and Saudi Arabia and Mexico). According to
latest data from the Energy Information Administration, Venezuela has provided
1.012mn barrels per day of crude oil to the US in the year to date.
Reich also referred to Chávez 's widespread
petrodiplomacy across the region and said that the Republican candidate's
strategy to reduce US dependence on foreign oil was also directly related to the
aim of reducing Chávez 's influence in the region. “We know that many countries
in the region are allied with the Venezuela treasury, but not, I believe, with
Venezuelan ideology". “The McCain strategy would help to take away Chávez 's most
important weapon, one that he uses to suppress the rights of his citizens and
threaten his neighbours".
Reich, a rightwing conservative Cuban American who has
worked under the Reagan and Bush administrations, was assistant secretary of
state at the time of the 2002 attempted coup and his views on Chávez are well
known. His latest comments likely reflect McCain's need to appeal to the
conservative elements of the Republican party at this week's
convention.