Argentina and Uruguay to investigate business with Venezuela

Long time faithful reader Milonga from Uruguay has finally accepted to send me a note about what is going on down South with all these elections going on. There is her great article. Enjoy and thank her. Note: we had the pleasure to read her in the past.
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They say all roads take you to Rome. Well, here in Latin America, all roads lead you to Chavez.

When Mauricio Macri was elected, Argentineans started to find out some of the comings and goings of the Kirchner government. For example, take this poultry farm called Red Crest (Cresta Roja), which just went bankrupt and fired 300 workers. It exported to Venezuela and received a 650 dollar subsidy for each ton exported. Also, they were paid by the government for selling their produce underpriced to the local market. And gave them billionaire credits which they can´t pay back to the Bicentenary Bank, due to the fact that Venezuela is not paying its debts. So, in spite of all these benefits, it went broke. Money loaned went to pay for the K political campaign, not to cover up for Venezuelan lack of payment. They did not count on losing the election.

This is just one example. There are many others. And the new Government has vowed to look into them, including Antonini Wilson´s dollar-packed suitcase.

On the other side of the River Plate, a Parliamentary Investigation in Uruguay dealing with the state-owned petrol monopoly – ANCAP, has also lighted red lights in the opposition, as well as public opinion. The company has a deficit of more than one billion dollars and most of them are directly or indirectly connected to business with Venezuela. That´s a lot of money for a small country like Uruguay, with a 3 million population.

In the meantime, the opposition has also found out that the main spokesperson with Venezuela is Daniel Placeres, newly elected to the House of Representatives by the Popular Participation Movement (MPP, for its initials in Spanish), Mujica´s party. Not only that, he actually lives in Mujica´s ranch. During the past three years, Placeres admits visiting Caracas for 85 times. Of course he denies influence peddling, but that is hard to believe. He´s just a cover-up for Mujica himself. A percentage of all trade between Uruguay and Venezuela goes to the MPP chests. During these trips he was received personally by Maduro at his Miraflores offices. This is not a normal procedure for ordinary businessmen doing trade.  So you’ll be hearing about Aire Fresco S.A. (Fresh Air) in the nearby future. That’s the name of the trade company that was created for business with Venezuela.

The National opposition party is in an “investigative vigil”. Relationship with Venezuela has been a constant worry for the Party, both politically and commercially. After this summer truce, one expects next year to be complicated. Circumstances avail that.

This audio in Spanish explains some of the matters that are being considered. An article in the Panam Post in English will give you a further insight into this problem.

Godfather

Just before the Parliamentary elections in Venezuela, General Padrino came To Montevideo for an official Mercosur meeting of Defense ministers. He took a day off to spend some hours with Mujica at his now famous ranch.

Since the meaning of “padrino” in Spanish is Godfather, I associate that figure as Pepe Mujica´s role in Bolivarian world. One presumes that their talk was to build post-electoral strategies, since the tweet that came up from that meeting is till echoing:

Meaning: “In Venezuela there´s an excess of democracy and the Revolution must go on with perseverance and discipline”.

Such hypocrisy and double standards! We all know these characters cannot afford to open the Pandora´s box that would disclose their corruption. It would be the fall of the Berlin wall all over again.

Milonga
Montevideo, 15th January, 2016.

The Macri effect

One week ago Argentina elected a new president, the first certifiably peronist free in decades. As expected there will be changes in Argentina foreign policy. What was less expected is the speed at which president elect Macri started those changes, more than two weeks before being sworn in. To begin with, of the few people allowed on the election night stand, one was Leopoldo Lopez wife, Lilian Tintori. This made it to the opening news of CNNSpanish...

¡Plop! Café CÑN empieza su cobertura de resultado Argentino con abrazo de @liliantintori y @mauriciomacri en tarima pic.twitter.com/t2NkUB7x0e

— daniel duquenal (@danielduquenal) November 23, 2015

So what now?


The first thing to note is that Macri means what he said. He repeated it twice on his morning after first press conference.  Other countries are taking notice and are not amused, like Uruguay. To which Macri replied stating point blank that human right violations were public and notorious in Venezuela and it was up to other countries to chose interest over ethics. In Venezuela they took a few days to acknowledge the hit, hoping, I suppose, that Dilma or somebody would call Macri to ask him to shut up. When nothing more but very gauche declarations like the one from Uruguay came, the regime finally reacted. National Assembly chair Diosdado Cabello called Macri a fascist (it takes one to know one, I suppose).  And president Maduro, not to be left behind, went as far as saying that the Argentinian people were ready to raise against Macri (interesting statement since he just got elected, is not sworn in yet,but then again Maduro was never suspected of being a democrat).

And yet, for of his apparent democratic ethics Macri thinks more about Argentina interests than those of Venezuela. He knows that a battle in Mercosur to evict Venezuela is lost because Brazil and Uruguay are too involved with Venezuela corruption and Venezuela owes them too much money. Macri's target is not only the increasingly abhorrent regime of Venezuela, it is Mercosur itself.

Mercosur is failing since Lula reached power. It has become for Brazil something like its private economic zone and as such things like true economic integration and political developments have been sub-ordained to Brazil's interests. The devastating Argentina crisis 13 years ago, and the very light weight of Uruguay and Paraguay made that possible. In other words, with the fraudulent incorporation of Venezuela Mercosur is going nowhere, and Macri seems to have no patience with that. In fact, Macri is looking towards relations with the Pacific Alliance which would favor Argentina more as its economy is more complementary to the P.A. needs than Brazil's one. If Mercosur fails to tame Venezuela it will be a perfect excuse for Macri to start taking its distances with it.

There is also more than Mercosur in the target, there is also the useless UNASUR, a presidential left self protection club for South America. Note that the the swearing in of Macri is on December 10, just when an eventual election fraud crisis in Venezuela would be at its apex. Apparently Macri has chosen his new foreign minister for her experience even though he did not know here personally. He gave her an agenda where two points were nonnegotiable: his pressure on Venezuela and the end of Argentina's relations with Iran. Clearly UNASUR received a notification that any unjustified support to Venezuela will not be approved by Macri and such a division could well mean also the end of the useless UNASUR.