South America

Peru's Congress Votes To End IES Solidarity Tax

21/10/2004

LIMA -(Dow Jones)- Peru's Congress late Wednesday approved a proposal from the executive branch to end the IES or "solidarity" tax by Dec. 1.
In a vote with 80 in favor and three abstentions, Congress voted to end the 1.7% payroll tax.
"The tax was considered anti-technical because it covered gross remunerations and affected the hiring of manpower and corporate competitively," Congress said in a statement.
Finance Minister Pedro Pablo Kuczynski said earlier this week that the government plans to make up for the elimination of the IES tax with improved collections of income taxes and from the 19% value-added tax.
Officials said the government was collecting about 400 million soles ($1= PEN3.3155) a year with the IES.
The tax, originally set at 5.0%, was gradually lowered over the past few years.

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Brazil Embraer Cuts 2004 Jet Deliveries Forecast To 145

20 Oct 2004

SAO PAULO -(Dow Jones)- Brazilian aircraft manufacturer Embraer (ERJ) on Wednesday cut its forecast for 2004 aircraft deliveries to clients to 145 from the previous 160, the company said in a statement.
The company cut its forecast for deliveries to 145 from 170 for 2005.
The company said it was cutting its forecast because of the bankruptcy petition earlier this year, of one of its main clients, U.S. Airways.
The company said it delivered 40 aircraft in the third quarter of 2004. For the first nine months of 2004, deliveries totaled 106.
The company said as of late September, the total for its portfolio of firm orders, including commercial aviation clients, executive jets and defense contracts, reached $11 billion. Taking into account options, the portfolio reached $29.5 billion.

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AMD Receives First Peruvian Order

Oct. 21, 2004 (PRIMEZONE) -- Transportation Logistics Int'l, Inc. (OTCBB:TRPL) has announced today that its Advanced Medical Diagnostics Division has received its first order from Peru for their HIV (1+2) Rapid Test Kit.
This order comes from AMD's exclusive Peruvian distributor, Advance Products S.A.C. to be sold to REDESS JOVENES. REDESS JOVENES has stated in a recent letter to Advance Products that this order will facilitate the "prompt distribution at a national level" in Peru, and pave the way for future AMD products to be distributed in that region.
For further information contact Mike Margolies at 845-424-4100.
The information in this Press Release includes certain "forward-looking" statements within the meaning of the Safe Harbor provisions of Federal Securities Laws. Investors are cautioned that such statements are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will provide to be correct. Factors that could cause results to differ include, but are not limited to successful performances of internal plans, the impact of competitors, and general economic risks and uncertainties.

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MERCOSUR, ANDEAN COMMUNITY EXTEND SOUTH AMERICAN TRADE COOPERATION

On 21 October, South America's two major trade blocs, the Andean Community of Nations (CAN) and Mercosur signed a pact that provides a first step towards deeper economic and political integration in South America. The agreement was sealed in Montevideo, Uruguay under the supervision of the Latin American Integration Association (ALADI) during a meeting of various foreign ministers. Though talks between the two groups had been ongoing for some time, disagreements in the agricultural sector had stalled progress. The agreement, entitled the Economic Complementarity Accord, builds on previous bilateral arrangements between CAN countries and Mercosur (the ACE 36 signed with Bolivia and the ACE 58 with Peru). It is focused mainly on market access, and the two blocs will phase out import tariffs over the next 15 years, ultimately creating a large free trade zone. The agreement will go into effect in 30 days, at which time import duties will start to be lifted. With the agreement, the nine South American nations will create the world's fifth largest trade bloc. According to Peru's Foreign Minister Manuel Rodriguez, who acted as the President of the Council of Foreign Ministers of CAN, "The importance of these accords is what they will do for trade, and for social, political and economic areas". The agreement is also expected to help South America negotiate as a block with both the US and the EC.
The Mercosur bloc represents the southern part of the continent. It includes Argentina, Brazil, Paraguay and Uruguay as main members, and Peru, Bolivia and Chile as associate members. The Andean Community of Nations includes Peru, Bolivia, Ecuador, Colombia, and Venezuela. Chile is the only country in the region not a full member of either bloc, and has instead opted for bilateral trade deals with the US, Mexico, EU, and South Korea.
"CAN Y Mercosur Dan Paso A Espacio De Integración," LA UNIVERSAL, 10 October 2004; "South America's Two Major Trade Blocs Iron Out Deal," ASSOCIATED PRESS, 19 October 2004; "South America's Two Major Blocs Sign Free Trade Deal," INTER PRESS SERVICE, 19 October 2004; "South America Narrows Trade Differences But Delays Politic Dialogue," PRAVDA, 20 October 2004.

CITES UPS CONSERVATION EFFORTS; DISPUTES REMAIN

The end of the 13th Conference of the Parties (COP) to the Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES) had conservation groups claiming success, but disputes on the best way to attain conservation goals and balance them with trade rules and poverty alleviation continued. The meeting in Bangkok, Thailand finished on 14 October and added a number of controversial and commercially valuable species to CITES' lists of endangered species, restricting their trade. The rare Irrawaddy dolphin, valuable ramin tree, appetite-suppressing hoodia plant, and minke whale were all winners at the CITES meeting, garnering a place in the CITES Appendices (see BRIDGES Weekly, 13 October 2004). A key theme to these decisions, and the meeting in general, was the increasing overlap between CITES, multilateral environmental agreements (MEAs), environmental organisations and international trade rules. Decisions were taken in Bangkok to remain consistent with the International Whaling Commission (IWC) ban on whaling, increase cooperation with the UN Food and Agricultural Organisation (FAO), and build on the synergies with the Convention on Biological Diversity (CBD). When considering incorporation of the term "sustainable use" into CITES, the role of economic incentives, illegal trafficking, and poverty alleviation were seen as essential players in the conservation efforts that CITES trade restrictions promote.

EC AND PARTNERS TO BUILD TRADE CAPACITY IN ACP COUNTRIES

On 15 October, the European Commission, the ACP Secretariat, the Commonwealth Secretariat and the Agence Intergouvernamentale de la Francophonie launched a joint effort to support capacity in the African, Caribbean and Pacific (ACP) countries with regard to formulating trade policies and negotiating trade agreements. Nicknamed the 'Hub and Spokes' project, it will establish a network of trade advisors, including nine senior experts (hubs) and forty-eight trade policy analysts (spokes), recruited mainly from ACP countries, to reinforce ACP international trade administrations. The EUR20 million programme, financed by the European Development Fund under the EU-ACP Cotonou Agreement, will also support in-country training of national counterparts. The programme will focus both on the on-going WTO talks under the Doha Round and the EU-ACP negotiations for the conclusion of Economic Partnership Agreements (EPA) under the Cotonou Agreement.
"EU-ACP: EU, Commonwealth and Francophonie Join Hands In Supporting ACP Trade Policy Makers," EUROPA, 15 October 2004; "EU-ACPs: Commission Approves EUR Trade Assistance Programme- Trade.Com," EUROPA, 25 July 2003; "Commonwealth spearheads €20 million trade project," COMMONWEALTH SECRETARIAT, 18 October 2004.

BDWN

53 arrests as Brazil cracks down on phishing Trojan authors, Sophos comments on online bank fraud

21 October 2004

Federal police in Brazil have announced that they have arrested 53 people for stealing money from internet bank accounts with a series of phishing Trojan horses. Allegedly, approximately $30 million is said to have been stolen from online banking customers.
The police swoop, which involved 160 policemen, took place across four states in the north of Brazil, with most of those apprehended said to be under the age of 25. According to investigators 18 of the suspects had been imprisoned for similar offences in the past.
Banks targeted by the Trojan horses included Banco do Brasil, Bradesco, Caixa Economica Federal, HSBC, Itau, and Unibanco.
"Hackers and virus writers in Brazil seized upon the opportunity to make significant amounts of money by writing these Trojan horses," said Graham Cluley, senior technology consultant for Sophos. "The Trojans would lurk in the background, waiting for innocent users to enter their bank login details and then secretly pass them back to the hackers. The Brazilian authorities should be congratulated for taking swift action against this activity - fifty arrests give some idea of the huge scale of this kind of organised internet crime."
Virus experts at Sophos warned Brazilian computer users earlier this year of the increasing trend of Trojan horses being written specifically targeting customers of Brazil's online bank websites.
Even this week, Sophos has added detection for several new Brazilian Trojans. Once a computer is infected with one of the Trojans internet activity is monitored, and if it is determined that the computer user is visiting one of a number of Brazilian banking websites a fake login page is displayed and the confidential data emailed back to the hacker's email address.
"All computer users should be running an up-to-date anti-virus as well as protecting their PC with a firewall. This, combined with the safe computing practice of exercising caution over what you choose to run on your computer, can dramatically reduce the risks of these kind of attacks," continued Cluley.

BDWN

Brazil Oil Workers Put Strike Off

21.10.2004 12:22

Brazilian oil workers decided to return to negotiations with state petroleum company Petrobras to try and improve the 12.1% pay offer, postponing a strike which was scheduled for October 19.
The oil union FUP and Petrobras officials met Monday to move ahead with salary and career conditions negotiations. FUP represents 37,000 of the company's 54,000 workers, and wants a pay raise and improved career and pension plans that would apply to 60,000 retired workers.
Besides the 12.1% increase, Petrobras had offered a 7.8% raise to retired workers, claiming that a bigger increase would hurt the company's finances.
Petrobras workers were granted a pay increase in 2003, allowing them to recover inflationary losses. The last time that oil workers got a pay increase above inflation was in 1995.

BDWN

Mayor's Venezuelan theft ordeal

21-10-2004 : A town mayor was subjected to a terrifying ordeal at the hands of a gunman in South America.
Councillor Terri Welch, the mayor of Melksham, Wiltshire, was visiting Venezuela to see her 31-year-old daughter, Karen.
The pair had been shopping in Maraciabo, and were returning by taxi to her daughter's flat when the driver threatened them with a gun.
Two men then jumped into the car and stole cash and valued possessions.
Speaking of the incident, which happened in September, the mayor said she was immediately suspicious of the driver.
"I don't know whether I felt some bad vibes or what it was but I didn't trust him," she told BBC Radio Wiltshire.
"He was driving erratically and I was concerned; then suddenly he turned around and pulled a gun on us.
"My mind went a total blank and then I thought this cannot be happening.
'More money'
"I can't remember what he said but he pulled into the side of the road almost immediately and there were two men standing there.
"They got into the car and then they just said, 'money, money', so I handed over my handbag and they went through it.
"They kept asking why we didn't have any more money, but I explained we were just going out to buy some elastic.
"I am just now appreciative of the fact that we got through the situation and came out the other side."

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LATIN AMERICA
ECUADOR, GUATEMALA AND HONDURAS HOLD RECORD FOR CHILD LABOUR

21/10/2004

Ecuador, Guatemala and Honduras are the countries in Central and South America with the highest level of child labour, according to International Labour Organisation (ILO) figures announced at the Spanish-American summit of children’s ministers in the Costa Rican capital San José. The same statistics – accepted by the governments of all countries in the region – show that in Guatemala, 54% of children aged five and over and 15-17 year olds work in one form or another, to the detriment of their health and school attendance; the percentage falls to 41% in Ecuador and to 33% in the Dominican Republic. Overall, one child or adolescent in five in Latin America works, to a total to 17,5 million minors, according to ILO representative Guillermo Dema. These child labourers are often exploited in exchange for meagre wages or even reduced to slavery. Sixty percent work in agriculture, while the rest work in equally arduous tasks: mining or brick making, especially in the Andean region, fishing or domestic work (particularly in Central America) or rubbish collection. In particular, ILO points out that between 17 and 18 million adults – the same number of child labourers – are long term unemployed.

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Venezuela and Colombia To Build Gas Pipeline

21.10.2004 11:00

Venezuela and Colombia are likely will build a cross-border natural gas pipeline with a total investment of $130million, Venezuela's state-owned natural gas company said Wednesday.
The 215-km pipeline, with 120 km in Venezuela, will have a transport capacity of 150 million cubic feet per day, said the company in a statement. The pipeline will pump natural gas to Venezuela's Zulia state in the first seven years. It may extend to Central America in the future.
Building will start at the end of this year or the beginning ofnext year, and is expected to be completed within 18 months.

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