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Headlines:
Pinochet: plaintiffs insist;
Chilean economy slower; WTO cautions Europe;US unemployment increase

Pinochet: plaintiffs insist

Human rights lawyers will appeal to the Inter-American Justice Committee the recent and definitive ruling by the Chilean Supreme Justice that discontinued legal actions against former Chilean dictator Augusto Pinochet, particularly involving the "Death caravan" case crimes. Solicitor Julia Urquieta said in Santiago that the presentation to be done before the Human Rights Sub Committee of the Inter American Justice Committee, in Washington, will be founded on the "denegation of justice". "The Chilean government must respond for the lack of justice", said Ms. Urquieta adding that is was "shameful" that all branches of the Chilean government didn't dare condemn Pinochet for all the deaths, tortures and disappeared during the dark days of his iron fist regime. Last week the Chilean Supreme Court declared Mr. Pinochet mentally unfit for trial due to dementia, definitively closing all demands against the former dictator. The same week Mr. Pinochet, now 86 years old, resigned to his bench for life in the Senate. The two events, supposedly unrelated, seem to indicate a "non political" solution to a problem that has divided Chile since the country recovered democracy, and again exacerbated in public opinion in 1998 when Pinochet was detained in Britain on request of a Spanish Judge investigating human rights violations against Spanish citizens. Mr. Pinochet's resignation letter will be officially read in the Senate this week. However Ms. Urquieta said the Chilean people were also "outraged" with the resignation since Mr. Pinochet will be entitled to all the privileges and perks of a former head of state. "It's shocking that all Chileans will now have to fund all of Pinochet's financial benefits, and he remains untouchable to the law in spite of the crimes committed", underlined Ms. Urquieta. Another group of solicitors belonging to the American Association of Jurists anticipated they will also request a reopening of the "Death caravan" case since the vascular dementia diagnosis was based on several tests such with "normal" showings.

Chilean economy slower

A group of selected academics, consultants and businessmen that are polled monthly by Chile's Central Bank continued to downgrade the country's growth estimate for the current year, this time dropping from 2,8% last May to 2,7% in June. According to the Central Bank Monthly Estimates Poll at the beginning of the year the annual growth projection for 2002 was 3% of GDP, which has since consistently decreased. The Central Bank is more optimistic and places the estimate in 3%, although until last May the figure was 3,2%.. Most experts forecast a 2,7% growth for the rest of the year and 4,5% for 2003. Chilean Central Bank anticipate a 5,8% expansion. As far as inflation is concerned the MEP experts forecast 0,2% this July and 0,3% for next August and September, reaching an annual 2,4%, and very much in line with the Bank's estimates of between 2 and 4%. Regarding the exchange rate, MEP experts believe it will average 690 Chilean pesos to the US dollar in spite of the Brazilian financial turbulence. From Buenos Aires, Chilean Economy Minister Nicolás Eyzaguirre participating in the Mercosur summit said he was confident stronger US, Japanese and European economies will help boost "the country's and the region's exports", in spite of a more cautious attitude by investors. "Investors are cautious about the Argentine crisis, the Brazilian volatility and the financial corporate scandals in United States, and this has a direct influence in foreign investment in the area", said Mr. Eyzaguirre. However he pointed out that the economies of the leading countries and blocks are "a bit better than last year and we will begin to notice this in our overseas trade and in the prices of the goods we sell, particularly towards the fourth quarter".

WTO cautions Europe

World Trade Organization, WTO, Director General Mike Moore cautioned the European Union on its coming agricultural subsidy program that is scheduled to be announced in the near future. Mr. Moore's acknowledges that the recent United States decisions regarding farming make it difficult for reformers to advance. The European Union pays out an estimated 40 billion US dollar annually in subsidies to farmers, and the new Common Agricultural Policy, CAP, is intended to reduce considerably the outlays helping to finance the integration of ten eastern European countries which are expected to join the EU in the coming years. At the current rate of farm expenditure if the subsidies had to be extended to the new nations, some with very inefficient agricultural sectors, the EU would rapidly become bankrupt. "Expanding to the East is advantageous but it also puts pressure on Brussels budgets", admitted Mr. Moore recalling that the United Stated recently passed a farm bill granting agriculture 180 billion US dollars in the coming ten years. Some EU members with strong agriculture lobbies such as France, Spain and Ireland have in the past fiercely rejected slashing subsidies, which absorb almost half the EU budget. Recent reports indicate that the new EU fisheries policy was severely conditioned, and the area's Director was severely conditioned following strong and direct pressures from the Spanish government, that presided over the European Commission during the first half of 2002.. This will be the third attempt in a decade to contain agriculture subsidy expenditure, and bitter arguments between the European Commission and member countries are expected once the new policy is unveiled.

US unemployment increase

The United States unemployment rate in June reached 5,9% from 5,8% the previous month, with a weaker than expected economic recovery and job creation, according to the latest Labor Department report. Even when unemployment remains at a "tolerable" level, other figures show that fewer jobs were generated, meaning businesses are not entirely confident about the US economy dynamism. Economists estimate that 100,000 new jobs must be created monthly if the US is to avoid further increases in the unemployment rate. "The labor market has been in a holding pattern in recent months, with non farm payroll essentially flat since February and no significant change in the unemployment rate since April", indicated the official Labor Department report. Construction, services and government sectors showed a positive sign regarding employment while manufacturing and retail actually cut jobs.

Uruguay, Mexico opt for fast track to free trade deal

Mexico and Uruguay have committed to working out the details and expect to be able to sign a free trade accord before the end of the year, Uruguayan Foreign Minister Didier Opertti has said. "We'd like to flood Mexico's supermarkets with top-quality cheeses, dairy products, and meat, as well as wool, leather and fabrics at excellent prices," Opertti said. He made the remarks Tuesday after negotiators from both countries began discussions in the Mexican capital on a step-by-step mutual reduction of duties and tariffs, eventually leading to a full free trade regime. On a recent visit to Uruguay, Mexican President Vicente Fox told his Uruguayan counterpart, Jorge Batlle, that Mexico could serve as a springboard for Uruguayan goods to enter the U.S. market, which Mexico has unlimited access to under the NAFTA accord