Wednesday, January 8, 2020

Opponents of Southern Ecuador Metals Mining Make New Push for Referendum



EFE. January 7, 2020

QUITO – The prefect of Ecuador’s Azuay province, Yaku Perez, filed on Tuesday a request with the Constitutional Court calling for a referendum on banning mining for metals within his jurisdiction.

Perez and several mayors from Azuay participated in a march to the Constitutional Court, where they presented the request for the referendum.

In September 2019, the Constitutional Court denied another referendum request, citing “errors of form.”

Perez said he was convinced that “sooner or later” there would be a referendum on mining in the southern Ecuadorian province.

The referendum questions “are not generic, they have a purpose, neutrality, constitutionality,” Perez said in a press conference.

The provincial official said the Constitutional Court would not have any “pretext” now to deny the request.

The new proposed referendum would have two questions – the original one calling for a ban on the mining of metals of all kinds near the province’s water sources and an additional question asking whether mining rights granted prior to the referendum should eventually expire.

“Many of these concessions were made during an administration that was much more corrupt and one of the most extraction-oriented in the history of the Republic of Ecuador,” Perez said.

The provincial official said that “as a result, you have to apply what the constitution prescribes – the right of repetition. If the multinationals want to sue the state, perfect, sue, but there is the right of repetition, under which former President (Rafael) Correa will have to be first in line.”

Perez said the administration of Correa, a democratic socialist who was in office from 2007 to 2017, engaged “in a clear irregularity,” granting “mining (concessions) in the territories of indigenous peoples,” without apparently consulting residents prior to awarding mining rights.

Prosecutors have accused Correa, who leads the opposition to President Lenin Moreno’s administration from exile in Belgium, of corruption while in office.

“Ecuador, sooner or later, will be declared a territory free of metallic mining,” Perez said.

A total of 815 mining concessions have been granted in Azuay and Perez said this meant that “one-quarter of the territory” is committed to mining for metals.

The Ecuadorian government expects $3.8 billion in investment in the mining industry, which is projected to account for 4 percent of the gross domestic product (GDP) by 2021.

The Constitutional Court has 30 days to respond to the request submitted by Perez, who said he was optimistic about the way things would turn out and hoped the referendum would be held before the 2021 presidential election.

The provincial official said that if the request was once again denied, he would organize a national referendum on mining.

Metallic mining, according to the Mining Ministry, is an extractive activity designed to obtain metals ranging from basic (copper, lead, zinc), to ferrous (iron, cobalt, titanium) and precious (gold, silver, platinum), as well as radioactive (plutonium, uranium, radium).



Calling a Coup a Coup: The State Department Ignores the Law, Again



Brett Heinz. CEPR. January 7, 2020

Since 1986, US budget bills have included a provision - commonly identified as section 7008 - that expressly prohibits providing financial aid to governments that have taken power via a military coup. In its most recent form, the provision reads:

None of the funds appropriated or otherwise made available … shall be obligated or expended to finance directly any assistance to the government of any country whose duly elected head of government is deposed by military coup d’état or decree or … a coup d’état or decree in which the military plays a decisive role: Provided, That assistance may be resumed to such government if the Secretary of State certifies and reports to the appropriate congressional committees that subsequent to the termination of assistance a democratically elected government has taken office: Provided further, That the provisions of this section shall not apply to assistance to promote democratic elections or public participation in democratic processes….

The language of this provision is clear, yet the State Department often fails to act when coups take place. It would appear that the US government has a selective approach to dealing with military coups, depending on whether they are seen as favorable or detrimental to US interests. In cases in which a coup is seen as a positive development, the Secretary of State often avoids complying with section 7008 by simply choosing to ignore that a coup has taken place. The aftermath of the overthrow of Evo Morales’s government in Bolivia provides the latest example of how US leaders disregard the law in this way, and indeed how they are growing bolder in doing so.

When Egypt’s elected president Mohamed Morsi was forced from office by the Egyptian army and replaced by former general Abdel el-Sisi in 2013, State Department spokeswoman Jen Psaki was faced with questions about whether or not the event was a military coup, thus calling $1.5 billion in annual US aid to Egypt into question. Her response was that “[t]he law does not require us to make a formal determination as to whether a coup took place, and it is not in our national interest to make such a determination.” Though every major media outlet in the world identified el-Sisi’s takeover as a coup, the State Department - to this day - has refused to do so.

Journalist David Francis explained that “[a]ccording to legal experts, the State Department and the White House have extraordinary leeway in what they do and do not term an official ‘coup,’ as well as if and how to … cut aid after formally designating one. Congress can disagree, but there’s not much lawmakers can do in response.” While the Congressional Research Service finds at least eight instances of the coup provision taking effect in the last decade, it also finds five additional examples over the same period in which the US decided it did not need to worry about the law. An article in the Harvard Law Review examined the provision’s history and found that the government often follows the law, but even then, it does so “as a matter of discretionary policymaking, while avoiding an admission that it is actually bound by the coup provision.”

The restrictions were first included in US law over concerns about a possible military coup in El Salvador during the Salvadoran Civil War. Since then, the US government has skirted section 7008 several times when coups have taken place in Latin America. This issue was brought into headlines during the early Obama administration over Honduras. In 2009, the left-leaning Honduran president Manuel Zelaya was deposed in a military coup following controversy over a constitutional referendum. The United Nations passed a resolution, with US support, condemning the coup and calling for Zelaya to be returned to office. However, the Honduran coup government had powerful allies in Washington and the US administration made it clear that it wasn’t eager to see Zelaya restored to the presidency.

The State Department briefly tried to argue that, though Honduras did experience a coup, it would not be cutting off all aid because it wasn’t technically a military coup (the two terms - “military” and “coup” - were in juxtaposition in the original coup provision). Some aid was temporarily suspended until the November 2009 elections that were organized under the coup government and that the US was nearly alone in recognizing. This caused significant controversy among policy-makers, including House Foreign Affairs Committee Chairman Howard Berman who publicly called on then-Secretary of State Hillary Clinton to “make it official” and call what happened a military coup. In order to prevent the State Department from attempting to skirt the law in this way again, Congress acted in 2011 to broaden the provision’s language to also include “a coup d’état or decree in which the military plays a decisive role.” [Emphasis added.]

This makes what is happening in Bolivia right now particularly worthy of note. After the Organization of American States made questionable claims about the integrity of the first round of Bolivia’s 2019 elections, President Evo Morales agreed to hold a new election if the OAS’s audit suggested it was warranted. When the audit’s preliminary results concluded that a new election was needed, Morales followed through on his promise and called for new elections. But, as a recent Congressional Research Service report politely puts it, “his offer did not satisfy the opposition.”

Protests against Morales that had begun before the election started to escalate into violence, and Morales faced a loss of control over the nation’s police force. Then, shortly after Morales agreed to new elections, the head of the Bolivian army asked Morales to resign. Morales obliged, leaving office and fleeing the country along with a number of other allied officials. This forced departure led Jeanine Añez, a Christian conservative and opposition senator who claimed to be next in line of succession, to swear herself in as president after being elected head of the country’s senate without the required quorum, a move that Bolivia’s top court later appeared to justify. The next day, Bolivian police prevented former and current members of Morales’s MAS party (which holds a supermajority in the legislature) from entering the building. Añez has promised new elections, but whether they can be truly fair given present circumstances is an open question.

What has happened in Bolivia seems to easily meet the definition of a coup under section 7008: the sitting president, democratically elected multiple times, was removed from power in a process in which the “military play[ed] a decisive role.” He was replaced with an unelected leader whose party won only 4.2 percent of the vote in the last election but who has already started changing policy despite claiming to serve as an interim “caretaker” president until the next elections. However, President Trump quickly Tweeted that the US was supporting Añez, while Secretary of State Pompeo praised her “for stepping up … to lead her nation through this democratic transition…”

Evo Morales was famously a critic of American foreign policy, and during his tenure he expelled the US ambassador who had been meeting with opposition figures amid a 2008 destabilization effort against the Morales government. He also rejected most forms of US-backed financial support in order to seek an independent economic development strategy, which ended up yielding positive results. So, if the US government were to acknowledge that a coup occurred there would be little in the way of foreign aid to cancel.

But in a flouting of the spirit of the law, the USAID administrator for Latin America met with Government Minister Arturo Murillo of the coup government in December and expressed an “interest in supporting our country,” as Murillo put it. Karen Longaric, Bolivia’s new Chancellor of the Ministry of Foreign Affairs under the coup government (which lacks a proper mandate to serve in an interim capacity, not to mention to make policy changes) said that Añez hopes to reverse course on US-Bolivian relations and bring the country back into the US sphere of influence. The US appears to be moving beyond its tradition of ignoring inconvenient coups in order to maintain foreign aid, and is now offering new foreign aid to coup governments.

The purpose of the coup provision is to provide real consequences for the perpetrators of undemocratic coups, putting a concrete financial cost on attempts to undermine elections and elected governments around the world. When the State Department ignores the law by continuing to provide aid after a coup, it is signaling that it values its own set of strategic objectives over democracy and human rights. The case of Bolivia seems even worse, as USAID’s interest in beginning new streams of foreign aid is rewarding the overthrow of elected governments that disagree with the United States government. Lawmakers should demand this be officially identified as a coup and begin exploring options to strengthen the coup provision, both through altering the language to include a greater degree of specificity and by reforming the decision-making process to make it independent of political conflicts of interest.



Bolivia: Right-Wing Discredits Possible Socialist Candidate



TeleSUR. January 7, 2020

The Vice-President of the Confederation of Coca Growers in the Cochabamba Tropics, Andronico Rodriguez, who is also the possible presidential candidate of the Movement Towards Socialism (MAS), denounced Wednesday that Bolivia’s coup-based government tries to discredit him by presenting him as a security threat.

“This is very unfortunate. The de facto government wants the population to think that I am looking for war, death, and violence," Rodriguez said, adding that persecution against the MAS leaders continues.

In this context, former President Evo Morales also denounced that Defense Minister Fernando Lopez threatened to use "the uniformed men" to silence Rodriguez who is the farmer that people begin to call "the successor of Evo." This case of political harassment, however, is not the only one.

Since the self-proclaimed President Jeanine Añez seized power with the support of the military in Nov. 2019, she has been trying to remove left-wing organizations leaders from the national political life.

"I want to tell this coup-based government that, although it can imprison me or many people who think and express ourselves freely, it cannot imprison the dignity of the people,” the Province of O'Connor Sub-Governor Walter Ferrufino, a Socialist militant, denounced on Wednesday.

As part of a systematic campaign against those who could resume the Socialist militancy leadership, far-right lawmakers requested authorities to investigate where MAS militants obtain money from.

In that sense, for example, the National Unity lawmaker Enrique Siles asked to investigate Rodriguez because he has been carrying out political activities in several regions of the country.

"Does he work? What professional or business activity does he carry out? From where does he get money to travel? From where does he have money for food and drinks?" Siles asked as if he did not know that farmers provide solidarity resources for the support of MAS leaders and militants.

Rodriguez, who is also a 30-year-old political scientist, has developed his career as a social leader in Cochabamba, one of the areas where the MAS has a broad and consolidated militancy.



Trump sending aid mission to Bolivia ahead of election



JOSHUA GOODMAN. AP. January 7, 2020

MIAMI (AP) — The Trump administration is sending an assessment team to Bolivia this week to discuss possible resumption of foreign aid to the Andean nation following the ouster of leftist leader Evo Morales, according to two people with knowledge of the visit.

The team organized by the U.S. Agency for International Development, the development branch of the State Department, is looking to assist Bolivia’s interim government run a smooth presidential election May 3 that it hopes will end months of political turmoil following a vote last year that observers said was marred by fraud.

The mission will also discuss longer-term areas of cooperation, according to the two people, who spoke on the condition of anonymity Tuesday because the mission hasn’t yet been announced.

Morales expelled the USAID from Bolivia in 2013, accusing it of political interference by support for groups and local governments that that opposed him.

Interim President Jeanine Anez has been driving a conservative backlash against policies implemented by Morales, the nation’s first indigenous president, during almost 14 years of leftist rule. She has been looking to improve relations with the U.S. and take a tougher line on coca farmers.

But critics says she’s overstepping her caretaker mandate and say the U.S. should be wary of backing an interim government accused of targeting Morales’ allies, who still wield plenty of political power even with their leader living in exile, in neighboring Argentina.

“The Trump administration has clearly picked sides,” said Kathryn Ledebur of the nonprofit Andean Information Network in Bolivia. “But it should also highlight concerns about human rights violations and erosion of democratic rights.”

The White House on Monday announced that it was lifting a longstanding ban on foreign aid to Bolivia imposed for its failure to cooperate in U.S. anti-narcotics efforts.

The U.S. first decertified Bolivia as a partner in the drug war shortly after Morales — former head of a coca growers’ union — expelled then U.S. Ambassador Phil Goldberg and the Drug Enforcement Administration in 2008. But it received wavers for several years after that, permitting aid to continue.

On Monday, the Trump administration reinstated a waiver that would allow aid to resume flowing to the Andean nation, finding that it is “vital to the national interests of the United States.”

Before Morales came to power, the country had been receiving more than $150 million in economic and security aid, much of it focused on anti-narcotics programs.

Aid had dropped to about $100 million in 2008 and to $28 million in 2012.

When Morales expelled the agency a year later, USAID said its programs were helping tens of thousands of Bolivians, particularly children and new mothers in rural areas who have benefited from health, nutrition, immunization and reproductive services.



Venezuelan oil exports fell by a third in 2019 as U.S. sanctions bit: data



Marianna Parraga. Reuters. January 7, 2020

(Reuters) - Venezuela’s oil exports plummeted 32% last year to 1.001 million barrels per day, according to Refinitiv Eikon data and state-run PDVSA’s reports, as a lack of staff and capital drove output to its lowest level in almost 75 years and U.S. sanctions shrank exports markets.

The drop would have been steeper if some of PDVSA’s largest customers had not bought Venezuelan oil through intermediaries or trans-shipped cargoes off several ports around the world so the country of origin was blurred, according to industry sources, vessel trackers and Eikon data.

In terms of customers, Russia’s Rosneft was the largest receiver and intermediary of Venezuelan oil with 33.5% of total exports, followed by state-run China National Petroleum Corp (CNPC) and its units with 11%, and Cuba’s state-run Cubametales with 7%, the data showed.

PDVSA did not reply to a request for comment.

China emerged as the first destination for Venezuelan oil in 2019 as sanctions deprived PDVSA of its primary market, the United States. That was despite CNPC and its units halting the loading of crude at Venezuelan ports in the second half.

Venezuela sent an average of 319,507 bpd to China in cargoes covering direct routes as well as in vessels chartered by intermediaries that ended up reaching Chinese refiners after trans-shipping the oil off countries like Malaysia, the Eikon vessel tracking data showed.

U.S. sanctions on Venezuelan and Iranian oil, which along with lower output affected global supply of heavy crude, contributed to driving oil prices up more than 20% last year. But prices are expected to remain rangebound this year as U.S. supplies have swelled.

OPEC-member Venezuela produced 1.01 million bpd of crude from January through November, according to official numbers. The collapse in output under President Nicolas Maduro has dragged what was once Latin America’s wealthiest nation into an economic tailspin.

Analysts monitoring Venezuela forecast a further decline in crude production this year due to the combination of sanctions and lack of investment and staff. Market intelligence firm Kpler expects Venezuela’s production to average 600,000-800,000 bpd in 2020, said its global energy economist, Reid I’Anson.

Analysts said it was hard to predict how sharply exports would fall this year.

“Washington wants more sanctions but PDVSA’s customers are looking for formulas to continue buying,” said Francisco Monaldi, of Rice University’s Baker Institute, who forecasts output will fall this year at least at the same rate as the years preceding sanctions.

“The main questions are how much the United States will enforce sanctions on Venezuela? Is Washington ready to act against PDVSA’s partners and customers?,” Monaldi added.

ASIA GROWS IN IMPORTANCE
A frozen trade relationship with the United States allowed Asia in 2019 to strengthen its position as the main destination for PDVSA’s oil with China, India, Malaysia, Japan and Singapore receiving cargoes, sometimes only for blending and transferring.

Venezuela’s oil shipments to Asia averaged 647,000 bpd, or 65% of total exports in 2019.

India was the second-largest receiver of Venezuela oil last year with 217,739 bpd. Refining firm Reliance Industries suspended direct purchases from PDVSA in the second quarter, but resumed them later in 2019 after reaching a new swap deal allowing PDVSA to receive fuel cargoes in exchange.

Europe was the third-largest destination for Venezuelan oil, also through swaps allowed under U.S. sanctions. European refiners, mainly Spain’s Repsol, received an average of 118,980 bpd last year, according to the data.

Cuba was fourth with 70,359 bpd, a number below the average of recent years, but high considering that other Caribbean nations stopped receiving Venezuelan oil even before sanctions hit, due to PDVSA’s declining output.

Former PDVSA executives and union leaders attribute the slump in oil production to a lack of capital and a recent exodus of about 30,000 workers, around a quarter of total staff reported in 2016, the last year the firm published its annual report.

PDVSA and its joint ventures also struggled to export oil that had accumulated in storage tanks amid a shrinking portfolio of customers due to the sanctions announced by Washington a year ago to oust Maduro.

The mounting stocks forced the firm to cut output while converting oil upgraders into blending stations designed for producing the crude grades demanded by Asian clients.

Venezuela, which has the world’s largest crude reserves, imported an average of 155,674 bpd of fuel and diluent naphtha in 2019, in line with recent years but too little to cover the gap left by PDVSA’s very low domestic refining, resulting in intermittent shortages of motor fuel during the year.



Venezuela’s National Assembly Opens for Business: Scuffles, Tear Gas and Doused Lights



Ana Vanessa Herrero and Julie Turkewitz. New York Times. January 7, 2020

CARACAS, Venezuela — Venezuela’s National Assembly erupted into chaos on Tuesday as opposition lawmakers took their seats to begin the new year’s session, but only after forcing their way through a phalanx of government soldiers.

National Guardsmen in body armor initially prevented Juan Guaidó, the leader of the country’s opposition, from entering the building along with his supporters.

“Here the people rule!” the legislators cried as they pushed through the heavy wooden doors and installed Mr. Guaidó at the front of the assembly’s main hall.

When it was all over, Mr. Guaidó said he would continue to claim the country’s presidency and he called for a new round of protests, starting Thursday, designed to oust the country’s authoritarian leader, Nicolás Maduro.

“I know that we have committed errors, like all human beings,” Mr. Guaidó said at a news conference, flanked by allied legislators. “But we all deserve a second chance, and I ask for it not for my sake, but rather to rescue Venezuela’s freedom.”

It was an exceptionally turbulent morning, even for a nation that is becoming increasingly accustomed to high-stakes political drama. And it did little to resolve Venezuela’s political tumult: The country, which is facing a worsening humanitarian crisis, has two men claiming the presidency and two men claiming the leadership of the assembly.

On Tuesday, the legislature’s first meeting of the year deteriorated into a melee in which, according to Mr. Guaidó’s press office, four opposition legislators were injured. The National Guard also launched tear gas at Mr. Guaidó and other opposition members as they made their way to the building.

But he fled through the basement, along with some legislators and reporters, when members of colectivos — the armed civilians that back the government and are known for violence — were allowed into the building.

It was the second time Tuesday that a self-proclaimed assembly president opened a legislative session only to flee the building.

In the early morning, Mr. Guaidó’s rival, Luis Parra, opened assembly proceedings, but left before the opposition lawmakers pushed their way in.

Later in the day, the Maduro government issued a statement saying the legislature convened by Mr. Parra was the legitimate one, and that it would create a commission to “rescue” constitutional order.

Several journalists reported being attacked by men they believed were members of the colectivos during the chaos.

The confrontation on Tuesday followed a weekend in which Venezuela’s opposition accused forces loyal to Mr. Maduro of staging a takeover of the assembly in a bid to consolidate Mr. Maduro’s grip on the country.

On Sunday, government forces prevented Mr. Guaidó and some of his allies from entering the assembly for a vote to decide who would lead the body. That left pro-government legislators free to elect Mr. Parra, one of their own, to the post.

Later that day, the opposition held their own vote, electing Mr. Guaidó, and leaving the country with two leaders of the assembly.

It was a significant blow to those seeking change in Venezuela.

In a nation increasingly controlled by Mr. Maduro, the assembly had been the last institution run by his critics. And Mr. Guaidó had been the body’s head — a position that, last year, gave him legal cover to call Mr. Maduro’s most recent election a fraud and claim for himself the interim presidency of the country.

Mr. Guaidó received international recognition from dozens of countries, and rallied many Venezuelans to his side. But a year later, his position as head of the legislature — and his claim to the presidency — appear to be increasingly tenuous.



Exclusive: U.S. mulls sanctions against Venezuelan lawmakers over bid to seize congress - sources



Matt Spetalnick, Alexandra Alper. Reuters. January 7, 2020

WASHINGTON (Reuters) - The Trump administration is considering sanctions against some of the Venezuelan lawmakers who took part in a bid supported by President Nicolas Maduro to wrest control of the country’s congress from U.S.-backed opposition leader Juan Guaido, according to two people familiar with the matter.

Deliberations over the possible sanctions targets, including Maduro-backed lawmaker Luis Parra and more than a dozen others, are in the early stages, and a final decision is not imminent, the sources told Reuters on Tuesday.

Venezuelan troops blocked Guaido from entering parliament on Sunday for what was expected to be his re-election as head of congress, allowing Maduro’s socialist party to hand the post to Parra. Later in the day, opposition legislators quickly re-elected Guaido - recognized by dozens of nations as Venezuela’s rightful interim leader - at the offices of a pro-opposition newspaper.

“We go after those who undermine the constitution,” said one of the sources, a high-ranking U.S. government official who declined to be named because details of the deliberations have not been made public. “This is no different.”

The White House declined comment. The State Department did not immediately respond to a request for comment.

The measures against the lawmakers could start with bans on their travel to the United States, a restriction that Washington has already slapped on dozens of Maduro allies, and might later involve financial sanctions against them, according to a person familiar with the matter.

Special envoy Elliott Abrams said the United States was looking at additional sanctions to step up pressure on the Venezuelan government on Monday, but did not specify potential targets.

Last January, Washington recognized Guaido as the OPEC nation’s legitimate interim president and began ratcheting up sanctions and diplomatic pressure in an effort to oust Maduro.

A year later, Maduro remains in power, backed by the military as well as Russia, China and Cuba. A senior administration official told Reuters in October that Trump’s frustration over the lack of results had spurred aides to ready further actions.