Commentary: U.S. needs bigger thinking on Latin America

ANDRES OPPENHEIMER of the Miami Herald and CNN Español discusses US Foreign Policy towards Latin America

Note the author of this blog (me) does not always agree with what Mr. Oppenheimer says, but his article no less merits a quick read.  Some major points which any reader giving this a quick skim should note –>

1/ The Obama Administration has left the post of Head Latin American affairs vacant for 5 months.  So much for making good on promises back in 2008 to forge closer ties with the region… Big disappointment here, but not any worse or better than the disappointment / let down his predecessor Bush Jr also produced.  It seems the last President to care at all about the region was Clinton who did more than organize summits… He laid the foundation for FTA’s with countries in the region via NAFTA

2/ Obama did not visit Brazil, the growing powerhouse and member of the BRIC club until 3 years into his presidency. When he did visit, he received nothing but criticism for going through with the official visit between the heads of state of the Western Hemisphere’s two largest economies… because the visit happened to coincide with start of Western Military efforts in Libya. For the US media which pointed the finger at Obama, shame on you, the President does not physically need to be in the United States to be “Commander and Chief,” especially for an internationally organized, and initially French lead military mission.  For Obama, shame on you too! It took you three years to visit Brazil!  I think for Brazilians this is an obvious insult, but even for the rest of South America (and Latin America as a whole), Obama, Bush Jr. and the United States… well… Latin America is feeling a bit as if they are being ignored.  One thing is certain – China is not ignoring Latin America, nor is India, Russia or even small players like Singapore which is investing to expand the Panama Canal.  

3/ As Ray Walser,  Senior Policy Analyst for Latin America at The Heritage Foundation very appropriately points in a 2009 publication “U.S Policy toward Latin America in 2009 and Beyond”  From 1996 to 2006, total U.S. merchandise trade with Latin America grew by 139percent, compared to 96 percent for Asia and 95 percent for the European Union. In 2006, the U.S. exported $223 billion worth of goods to Latin American consumers(compared with $55 billion to China). Fifty-one percent of U.S. energy imports originate from Canada, Mexico, Venezuela, Ecuador, Colombia, and Brazil.

Excerpt from Oppenheimer’s article –>

U.S. diplomatic ties with Latin America, which have been in limbo for months, got a small boost last week when President Barack Obama nominated Roberta Jacobson as top State Department official in charge of Latin American affairs. But that alone will not do much to revert the gradual loss of U.S. clout in the region.

Granted, the career diplomat gets high marks from almost everybody in Washington’s small world of Latin American affairs specialists. Unlike her predecessor Arturo Valenzuela, a political appointee whose nomination in 2009 was blocked for several months by Conservative republicans, the Senate is expected to easily confirm her nomination.

Among the most urgent issues Jacobson would have to deal with would be the long-stalled U.S. ratification of the free trade deals with Colombia and Panama, the escalating violence in Mexico, and the April 2012, 34-country Summit of the Americas in Colombia.

On a wider spectrum, she would have to find new ways to improve ties with the region at a time when China has eclipsed much of the previous U.S. economic influence in South America’s commodity producing countries.

Click here to read Oppenheimer’s full article via the Kansas City Star

9th China International Silver Conference (CISC), Oct 15-17

Silver - Wikicommons

The 9th China International Silver Conference (CISC) will be held this week ,October 15-17.  Major players from across the industry will be heading to Beijing to partake and climb the Fragrant Hills, a beautiful mountain landscape on the outskirts of Beijing which your author climbed back in the fall of 2006.

Here’s some background information on the event. and if this isn’t enough feel free to visit http://silver2010.antaike.com/ for additional info.

As countries around the world have taken a proactive fiscal policy and monetary stimulus, as a result of the global financial crisis, economies have started to show signs of moderate recovery. At the end of 2009, international commodity markets began to rebound; gold and silver were no exception. The world economy continues to suggest complexity and uncertainty and the European sovereign credit crisis is deepening. Many analysts suggest that the price of gold and silver will continue to rise.

In 2010, two principles of global economic recovery are industrial resurgence and the gradual withdraw of government stimulus policy. Governments, under the overall objective background of improving global industrial structure, encouraging economic development methodologies, and controlling inflation, are exploring the new international financial state of affairs. In this post-crisis era, it is also important to grasp potential new financial regulations. The 9th CISC will examine new trends in the global silver market, and discuss ways market participants can help further accelerate silver industrial restructuring and revitalization.

Accordingly, the 2010 China International Silver Conference, will be hosted by Gems & Jewelry Trade Association of China, and co-hosted by China General Chamber of Commerce, China Nonferrous Metals Industry Association, China Chamber of Commerce of Metals Minerals & Chemicals Importers and Exporters, and the Silver Institute. The CISC is will be organized by Beijing Antaike Information Development Co., Ltd, and will be held in Beijing, at the Fragrant Hill Empark Hotel (five stars) on October 15th-17th, 2010.

9th China International Silver Conference (CISC) will invite important national ministries and leading global industry executives, as well as experts in China and abroad to discuss macroeconomics and the global financial situation, silver industry policy orientation, industry upgrades and technical progress. Additionally, Oct 16th is the Double Ninth Festival in the Chinese lunar calendar, which is an auspicious day worthy of celebration. The custom of ascending a height to avoid epidemics was passed down from long time ago. CISC organizers in particular are looking forward to a climbing tour to Fragrance Hill in
accordance with this event.

Conference Theme: Focus on Beijing, Explore in Development, Open up Interspace
Conference Date: Oct 15th-17th, 2010 Beijing, China
Conference Address: Fragrant Hill Empark Hotel (five stars), Beijing

Conference Scale: 300-400 attendees
Conference Attendee: Silver and precious metals producers, consumers, traders, stock and bond brokers, investors, researchers, media and etc
Conference Format: Reports, Discussion and Activities

Hosted by： Gems & Jewelry Trade Association of China
China General Chamber of Commerce
China Nonferrous Metals Industry Association
China Chamber of Commerce of Metals Minerals & Chemicals Importers and Exporters
The Silver Institute

Organized by：Beijing Antaike Information Development Co., Ltd.
Co-hosted by：Henan Jiyuan Jinli Smelting Co., Ltd.

China Doubles Korea Bond Holdings as Asia Switches From Dollar Reserves

Bloomberg Video:  Brookings’s Lieberthal Interview on China’s Economy

Kenneth Lieberthal, a senior fellow at the Brookings Institute, a Washington policy group, talks about the outlook for China’s economy and the mainland’s holdings of U.S. Treasuries. China cut its holdings of Treasury notes and bonds by the most ever, raising speculation the plunge in U.S. yields that sent two-year rates to a record low has made government securities too expensive for some investors. Lieberthal talks with Bloomberg’s Rishaad Salamat from Washington. (Source: Bloomberg)

Click here to watch the interview at Bloomberg.com

China-ASEAN FTA – CCTV

China-ASEAN Free Trade Agreement came into effect at the start of the new year.  CCTV9 reports:

Happy New Year Asia & Oceania

Asia and Oceania ushered in 2010 a few hours ago.  Here’s a window into the celebrations which took place across the region.

CSA will start with none other than China, The country which unarguably had the most people around the world wishing one another a happy new year at the same time… Not because they have 1.4 billion people, but rather because the entire country is in one time zone, that of Beijing.  Happy New Year China!  I’ll be seeing you soon (CSA will be updated from China as of 2010).

China

Top Chinese leaders including President Hu Jintao on Wednesday watched Peking Opera at the National Center for the Performing Arts in a gala to mark the New Year. (Xinhua Photo)

Soldiers in NE China celebrate new year with local ethnic people. (Xinhua Photo)

Vocalist Kang Mao of Chinese rock band "SUBS" performs at a rock gala to celebrate the New Year in Beijing December 31, 2009. Picture taken December 31, 2009. (REUTERS)

Taiwan – China

A person holding an umbrella watches fireworks exploding from the world's tallest completed skyscraper Taipei 101 during New Year celebrations in Taipei January 1, 2010. (REUTERS)

Australia

Sydney, Australia - Celebrates New Years 2010 (Photo via Newsfromrussia)

Singapore

Fireworks light up the skyline of the financial district to usher in the New Year on Jan. 1, 2010 in Singapore. (THE ASSOCIATED PRESS)

Japan

People release balloons as the Tokyo Tower is illuminated to celebrate New Year at a countdown event at the Zojo-ji Buddhist temple in Tokyo January 1, 2010. (REUTERS)

South Korea

Christians sing a hymn during a prayer to celebrate the New Year at Imjingak pavilion near the demilitarized zone separating the two Koreas in Paju, about 52 km (32 miles) north of Seoul, January 1, 2010. (REUTERS)

Indonesia

Fireworks explode above downtown Jakarta's Welcome Monument, Indonesia, early Friday, Jan. 1, 2010. (THE ASSOCIATED PRESS)

Asia in Focus

APEC nations call for free trade

Nov 14 (REUTERS) – APEC leaders tackle climate change negotiations and economic integration, as Japanese Prime Minister Yukio Hatoyama stresses the need for free trade zone.
Penny Tweedie, Reuters

Obama seeks stronger links in Asia

Nov 14 (REUTERS) – United States President Barack Obama pushes for greater U.S. involvement in Asia, welcoming a “strong, prosperous” China.
Penny Tweedie, Reuters.

China to lead Somalia piracy fight

Nov 13 (REUTERS) – China will assume a leadership role in an international coalition fighting maritime piracy off Somalia, signaling its navy’s growing ambitions beyond Chinese waters.
Stefanie McIntyre reports.

Singapore-Latin Trade: Singapore and Panama in focus

Attention! / ¡Atención! / ???

Merlion - Singapore

For those of you out there who pay the whoppin’ $399 a year for a subscription to the Latin Business Chronicle, you can feast your eyes on some juicy reporting about Singapore’s growing trade with Latin America, particularly with Panama.

Here’s a brief synopsis from CSA of what was available for free from the Latin Business Chronicle:

Singapore’s trade with  Panama is a $6.6 billion usd, more than double Singapore’s entire trade with its second largest trading partner in Latin America, Brazil.

Considering that Singapore has signed Free Trade Agreements with the South American countries of Peru and Chile which have yet to help increase total exchange to a level even comparable with Panama’s.  It is clear to CSA, Singapore has found a healthy partner in Panama and it plans to nourish the relationship.

Panama is country of similar size (population wise), like Singapore it is strategically positioned in the middle a important global trade network, and it is increasingly open to economic cooperation with Asia.

Long term, CSA believes that Singapore is playing it smart in Latin America.  It is positioning itself to not only benefit directly from trade, but also from the growth of trade between other Asian and Latin American countries.

In other words, once Singapore has established a base of operations in Panama, it will probably expand into the business of providing services for other countries and companies within the Asia – Latin America trade network.

Below are a few excerpts from the Latin Business Chronicle article you can access directly via this link.

Soon, Singapore will also be known locally for its port services. PSA International, the world’s second-largest container terminal operator, will be competing with Hong Kong-based Hutchison Whampoa, the world’s largest operator for container traffic that goes through Panama.

PSA is building a terminal at the Pacific entrance of the Panama Canal, right across from the Port of Balboa, which is operated by Hutchison unit Panama Ports Company. It expects to open the terminal, located at what once was a US Naval station, next year.

The current and future business generated by ST Aerospace and PSA is helping cement Panama as Singapore’s top trading partner in Latin America. Singapore’s trade with Panama is twice as large as its second-largest trade partner in Latin America, Brazil.

Last year, Singapore’s total trade with Panama grew by 59.6 percent to 9.2 billion Singapore dollars (US$6.6 billion), according to a Latin Business Chronicle analysis of IE Singapore data. While Singapore exports still dominate the …

Asian Stock Markets; weekly roundup

Commodity Boom Will Thrive on Shortages, Rogers Says

Newswire: Jim Rogers

“I don’t see any adequate-supply situation in any commodity market over the next decade or two,” Rogers, the chairman of Singapore-based Rogers Holdings, said today in an interview in New York. “The commodities boom is not over and the bull market has several years to go.”

“I own some cotton,” Rogers said. “I own some sugar,” he said. “Sugar will go much, much higher over the course of the bull market.”

“Oil could reach between $150 and $200 a barrel,” because known reserves of crude are declining, Rogers said. He said international relations, particularly between the U.S. and Iran, will help guide prices.

“Natural gas is very cheap,” he said in the interview between sessions at an ETF Securities Ltd. investor conference.

Commodities ‘Best Place’

“Commodities are the best place to be, if you ask me, based on supply and demand,” Rogers said. He said he hasn’t invested in equities outside of China in two years.

“Everything has gone through the roof,” Rogers said of equities prices, adding that he may consider buying stocks “if something collapses.”

Click here to read the complete Bloomberg article

Newswire: Commodities

China Nurtures Futures Markets in Bid to Sway Commodity Prices - WSJ

ZHENGZHOU, China — Chinese leaders are concerned that their nation’s enormous economic expansion is becoming an excuse for foreign suppliers to inflate commodity costs. So, they hope to use their three futures exchanges to fight back.

“It is true we have a long-term goal of increasing our influence in terms of pricing, but to do that we have to create conditions and do it step by step,” Jiang Yang, chief futures-industry policy maker and assistant chairman of the China Securities Regulatory Commission, said in an interview. “But as the Westerners say: ‘Rome was not built in a day.’

But Beijing believes hosting big futures markets will enhance the country’s economic security by essentially advertising what the world’s biggest customer for some commodities considers a fair price. For the rest of the world, the exchanges could mean less guesswork about China’s buying habits, possibly reducing volatility in the global market.

Silver Lining: Jim Rogers Talks Up Commodities – Time Magazine

Jim Rogers’ daughters may not have been born with silver spoons in their mouths, but they’ve got them now. Not silver spoons, exactly, but silver bullion. “My little girls don’t own stocks — they own commodities,” he says, “and that’s why they’ll be able to take care of me in retirement.”

Rogers sees three big secular trends now, and he’s acting on all of them. First, America’s role as the dominant economic power is declining, so why own American stocks? (He doesn’t.) Second, China is emerging, and even though it may have crises from time to time, it is a good place to invest. (He does.) Third — and this is the biggie — emerging nations including China are greatly increasing the future demand for commodities such as oil. (He’s in with both feet.)

“Thirty years ago, 3 billion people were not even participating in the world economy, and now they are trying to live like we do,” he notes. That emerging megaforce, says Rogers, will put a supertight squeeze on commodity prices across the board, from beef to bullion.

Oil Climbs Above $73, Nat. Gas Rallies as Equities Fly High – Rigzone

Jumping toward $74 a barrel on an American holiday, crude oil rallied more than $1 from last week’s closing price, bolstered by a weaker dollar and a rise in the equities market. Also gaining today, natural gas closed 12 cents below $5 as the energy commodity continues to strengthen despite bearish fundamentals.

After rallying to an intra-day high of $73.84, the price of crude oil settled slightly lower to $73.27 on the NYMEX Monday, a gain of $1.50 from Friday’s close. Additionally, the US dollar eased against a basket of foreign currencies, helping to spur a rally in today’s commodity prices.

China Iron Ore Imports Exceed Real Demand, CISA Says – Bloomberg via Chinamining.org

Iron ore imports by China, the world’s largest buyer, have exceeded real demand by 50 million metric tons this year, the country’s steel association said.

China’s iron ore imports surged to a record this year, hurting the group’s bid to negotiate a contract price cut bigger than the 33 percent offered by Rio Tinto Group and BHP Billiton Ltd. The nation is looking at cutting the number of licensed importers, industry minister Li Yizhong reiterated today.