The World Bank’s new Latin America chief backed selective use of capital controls when inflows were creating asset bubbles or distorting foreign exchange markets. Hasan Tuluy, the Bank’s new vice-president for Latin America and the Caribbean, said while trade protectionism should be avoided, there was space for macro prudential measures.
Brazil is Latin America’s fastest-growing travel and tourism economy and direct contribution to GDP is forecast to grow at 7.8% in 2012.
In a display of “Latin American support for Argentina’s legitimate rights,” the Peruvian government announced on Monday its decision to render void the protocol visit of a British frigate scheduled to dock in a Peruvian port this week.
The Australian Senate has pushed through into law a 30% tax on iron ore and coal mining companies. The tax will raise A$10.6bn (11.2bn dollars) over three years from major companies including BHP Billiton, Rio Tinto and Xtrata.
“As of this year Brazil will follow the US example giving a 25% margin of preference to local goods in government procurement”, said Fernando Pimentel, Minister for Development, Industry and Foreign Trade.
Drought over Brazil's southern soy growing states prompted analysts Agroconsult to strike 2.8 million tons from its forecast of the 2011/12 crop to 67.1 million tons from 69.9 million previously.
Argentina’s truckers called Monday an indefinite strike to demand higher pay rates, parking their rigs in protest just as exporters were counting on them to haul freshly harvested soybeans to port.
Colombia has consistently supported Bolivia in its mission to reclaim a passage to the Pacific Ocean and the country reiterated its support last week during a meeting between the two heads of state in Bogotá.