Venezuela citizens scramble to survive as merchants demand dollars

Bolivar notes a seen hanging in a tree at a street in Maracaibo, Venezuela November 11, 2017.

By Eyanir Chinea and Maria Ramirez

CARACAS/CIUDAD GUAYANA, Venezuela (Reuters) – There was no way Jose Ramon Garcia, a food transporter in Venezuela, could afford new tires for his van at $350 each.

Whether he opted to pay in U.S. currency or in the devalued local bolivar currency at the equivalent black market price, Garcia would have had to save up for years.

Though used to expensive repairs, this one was too much and put him out of business. “Repairs cost an arm and a leg in Venezuela,” said the now-unemployed 42-year-old Garcia, who has a wife and two children to support in the southern city of Guayana.

“There’s no point keeping bolivars.”

For a decade and a half, strict exchange controls have severely limited access to dollars. A black market in hard currency has spread in response, and as once-sky-high oil revenue runs dry, Venezuela’s economy is in free-fall.

The practice adopted by gourmet and design stores in Caracas over the last couple of years to charge in dollars to a select group of expatriates or Venezuelans with access to greenbacks is fast spreading.

Food sellers, dental and medical clinics, and others are starting to charge in dollars or their black market equivalent – putting many basic goods and services out of reach for a large number of Venezuelans.

According to the opposition-led National Assembly, November’s rise in prices topped academics’ traditional benchmark for hyperinflation of more than 50 percent a month – and could end the year at 2,000 percent. The government has not published inflation data for more than a year.

“I can’t think in bolivars anymore, because you have to give a different price every hour,” said Yoselin Aguirre, 27, who makes and sells jewelry in the Paraguana peninsula and has recently pegged prices to the dollar. “To survive, you have to dollarize.”

The socialist government of the late president Hugo Chavez in 2003 brought in the strict controls in order to curb capital flight, as the wealthy sought to move money out of Venezuela after a coup attempt and major oil strike the previous year.

Oil revenue was initially able to bolster artificial exchange rates, though the black market grew and now is becoming unmanageable for the government.

TRIM THE TREE WITH BOLIVARS

President Nicolas Maduro has maintained his predecessor’s policies on capital controls. Yet, the spread between the strongest official rate, of some 10 bolivars per dollar, and the black market rate, of around 110,000 per dollar, is now huge.

While sellers see a shift to hard currency as necessary, buyers sometimes blame them for speculating.

Rafael Vetencourt, 55, a steel worker in Ciudad Guayana, needed a prostate operation priced at $250.

“We don’t earn in dollars. It’s abusive to charge in dollars!” said Vetencourt, who had to decimate his savings to pay for the surgery.

In just one year, Venezuela’s currency has weakened 97.5 per cent against the greenback, meaning $1,000 of local currency purchased then would be worth just $25 now.

Maduro blames black market rate-publishing websites such as DolarToday for inflating the numbers, part of an “economic war” he says is designed by the opposition and Washington to topple him.

On Venezuela’s borders with Brazil and Colombia, the prices of imported oil, eggs and wheat flour vary daily in line with the black market price for bolivars.

In an upscale Caracas market, cheese-filled arepas, the traditional breakfast made with corn flour, increased 65 percent in price in just two weeks, according to tracking by Reuters reporters. In the same period, a kilogram of ham jumped a whopping 171 percent.

The runaway prices have dampened Christmas celebrations, which this season were characterized by shortages of pine trees and toys, as well as meat, chicken and cornmeal for the preparation of typical dishes.

In one grim festive joke, a Christmas tree in Maracaibo, the country’s oil capital and second city, was decorated with virtually worthless low-denomination bolivar bills.

Most Venezuelans, earning just $5 a month at the black market rate, are nowhere near being able to save hard currency.

“How do I do it? I earn in bolivars and have no way to buy foreign currency,” said Cristina Centeno, a 31-year-old teacher who, like many, was seeking remote work online before Christmas in order to bring in some hard currency.

(Additional reporting by Andreina Aponte and Leon Wietfeld in Caracas, Mircely Guanipa in Maracay, Anggy Polanco in San Cristobal, Lenin Danieri in Maracaibo; Writing by Girish Gupta; Editing by Leslie Adler)

Venezuelan migrants pose humanitarian problem in Brazil

Venezuelan migrants pose humanitarian problem in Brazil

By Anthony Boadle

BOA VISTA, Brazil (Reuters) – Last August, Victor Rivera, a 36-year-old unemployed baker, left his hometown in northern Venezuela and made the two-day journey by road to the remote Amazonian city of Boa Vista, Brazil.

Although work is scarce in the city of 300,000 people, slim prospects in Boa Vista appeal more to Rivera than life back home, where his six children often go hungry and the shelves of grocery stores and hospitals are increasingly bare.

“I see no future in Venezuela,” said Rivera, who seeks odd jobs at traffic lights in the small state capital just over 200 km (124 miles) from Brazil’s border with the Andean country.

Countries across Latin America and beyond have received a growing number of Venezuelans fleeing economic hardship, crime and what critics call an increasingly authoritarian government.

The once-prosperous country, home to the world’s largest proven oil reserves, is struggling with a profound recession, widespread unemployment, chronic shortages and inflation that the opposition-led Congress said could soon top 2,000 percent.

At least 125 people died this year amid clashes among government opponents, supporters and police.

As conditions there worsen, nearby cities like Boa Vista are struggling with one of the biggest migrations in recent Latin American history. With limited infrastructure, social services and jobs to offer migrants, Brazilian authorities fear a full-fledged humanitarian crisis.

In Roraima, the rural state of which Boa Vista is the capital, the governor last week decreed a “social emergency,” putting local services on alert for mounting health and security demands.

“Shelters are already crowded to their limit,” said George Okoth-Obbo, operations chief for the United Nations High Commission on Refugees, after a visit there. “It is a very tough situation.”

He noted the crush of migrants also hitting Trinidad and Tobago, the Caribbean country to Venezuela’s north, and Colombia, the Andean neighbor to the west, where hundreds of thousands have fled.

Not even Venezuela’s government knows for certain how many of its 30 million people have fled in recent years. Some sociologists have estimated the number to be as high as 2 million, although President Nicolas Maduro’s leftist government disputes that figure.

BRAZIL “NOT READY”

Unlike earlier migration, when many Venezuelan professionals left for markets where their services found strong demand, many of those leaving now have few skills or resources. By migrating, then, they export some of the social ills that Venezuela has struggled to cope with.

“They’re leaving because of economic, health and public safety problems, but putting a lot of pressure on countries that have their own difficulties,” said Mauricio Santoro, a political scientist at Rio de Janeiro State University.

International authorities are likening Venezuela’s exodus to other mass departures in Latin America’s past, like that of refugees who fled Haiti after a 2010 earthquake or, worse, the 1980 flight of 125,000 Cubans by boat for the United States.

In Brazil, Okoth-Obbo said, as many as 40,000 Venezuelans have arrived. Just over half of them have applied for asylum, a bureaucratic process that can take two years.

The request grants them the right to stay in Brazil while their application is reviewed. It also gives them access to health, education and other social services.

Some migrants in Boa Vista are finding ways to get by, finding cheap accommodation or lodging in the few shelters, like a local gym, that authorities have provided. Others wander homeless, some turning to crime, like prostitution, adding law enforcement woes to the social challenges.

“We have a very serious problem that will only get worse.” said Boa Vista Mayor Teresa Surita, adding that the city’s once quiet streets are increasingly filled with poor Venezuelans.

Most migrants in Boa Vista arrive by land, traveling the southward route that is the only road crossing along more than 2,100 kms of border with Brazil.

Arriving by public transport in the Venezuelan border town of Santa Elena, they enter Brazil on foot and then take buses or hitch rides further south to Boa Vista.

Staffed only during the day, the border post in essence is open, allowing as many as 400 migrants to enter daily, according to authorities. For a state with the lowest population and smallest economy of any in Brazil, that is no small influx.

“Brazil’s government is not ready for what is coming,” said Jesús López de Bobadilla, a Catholic priest who runs a refugee center on the border. He serves breakfast of fruit, coffee and bread to hundreds of Venezuelans.

Despite a long history of immigration, Latin America’s biggest country has struggled this decade to accommodate asylum seekers from countries including Haiti and Syria. Although Brazil has granted asylum for more than 2,700 Syrians, the refugees have received scant government support even in Sao Paulo, Brazil’s richest state.

A senior official in Brazil’s foreign ministry, who asked to remain anonymous, said the country will not close its borders. Okoth-Obbo said his U.N. agency and Brazil’s government are discussing ways to move refugees to larger cities.

“NOW I CAN SLEEP”

Boa Vista schools have admitted about 1,000 Venezuelan children. The local hospital has no beds because of increased demand for care, including many Venezuelan pregnancies.

In July, a 10-year-old Venezuelan boy died of diphtheria, a disease absent from Roraima for years. Giuliana Castro, the state secretary for public security, said treating ill migrants is difficult because they lack stability, like a fixed address.

“There is a risk of humanitarian crisis here,” she said.

Most migrants in Boa Vista said they do not intend to return to Venezuela unless conditions there improve.

Carolina Coronada, who worked as an accountant in the northern Venezuelan city of Maracay, arrived in Brazil a year ago with her 7-year-old daughter. She has applied for residency and works at a fast-food restaurant.

While she earns less than before, and said she makes lower wages than Brazilians at the restaurant, she is happier.

“There was no milk or vaccines,” she said. “Now I can sleep at night, not worried about getting mugged.”

Others are faring worse, struggling to find work as Brazil recovers from a two-year recession, its worst in over a century.

One recent evening, dozens of young Venezuelan women walked the streets of Caimbé, a neighborhood on Boa Vista’s west side.

Camila, a 23-year-old transsexual, left Venezuela nine months ago. She said she turns tricks for about $100 a night – enough to send food, medicine and even car parts to her family.

“Things are so bad in Venezuela I could barely feed myself,” said Camila, who declined to give her last name.

Rivera, the unemployed baker, one afternoon sheltered from the equatorial sun under a mango tree. He has applied for asylum and said he is willing to miss his family as long as he can wire his earnings from gardening, painting and bricklaying home.

“It’s not enough to live on, but the little money I can send home feeds my family,” he said.

(Reporting by Anthony Boadle. Additional reporting by Alexandra Ulmer in Caracas. Editing by Paulo Prada.)

Venezuela’s indigenous Warao decamp to uncertain future in Brazil

Venezuela's indigenous Warao decamp to uncertain future in Brazil

By Anthony Boadle

PACARAIMA, Brazil (Reuters) – An indigenous tribe that journeyed hundreds of kilometers to flee the economic crisis in Venezuela has been trapped in limbo near the border in Brazil, after it was moved off the streets of the Amazon city of Manaus.

Driven by hunger and illness from their traditional homeland on the Orinoco River delta in northeastern Venezuela, more than 1,200 members of the Warao tribe migrated to northern Brazil to live and beg on the streets.

Brazilian authorities, nongovernmental organizations and churches have helped provide temporary shelter on the border, but the Warao’s future remains uncertain. The tribe insists it will not return to Venezuela, where a deep recession has led to shortages of basic goods under President Nicolas Maduro’s socialist government.

“The children were dying in Venezuela from illness. There was no medicine, no food, no help,” said Rita Nieves, a cacique, or chief, of the matrilineal Warao.

Members of the tribe are still making the arduous journey. Nieves was wearing her best clothes to cross back into Venezuela to bury a 3-month-old Warao baby that had just died in its mother’s arms on the 1,000-km (620-mile) bus ride to Brazil.

“We are staying here because things have not changed in Venezuela,” she said, sitting in a warehouse turned into a living space for 220 Warao in the small border town of Pacaraima.

Children played among dozens of hammocks hanging from metal structures erected by U.N. refugee agency UNHCR. Outside, women cooked broth on wood fires and men sat listening to their shaman talk about the virtues of the moriche palm used to weave baskets and hammocks, as he puffed on a straw cigar.

The Warao have lived for centuries on the Orinoco delta, but some began to leave when fish supplies were depleted by the diversion of the waters to deepen shipping lanes for Venezuelan iron ore and bauxite exports.

Many went to Venezuelan cities to sell craftwork and beg on the streets. However, when the economy tipped into crisis, they began moving to Brazil last year, often just walking across the border without documents.

“They were already begging in Venezuela, but those who gave them money are themselves asking for help today,” said Sister Clara, a missionary from Brazil-based humanitarian organization Fraternidade that runs two shelters for the Warao.

“Who in today’s crisis in Venezuela is going to buy Warao arts and crafts?” she said.

SLEEPING UNDER OVERPASS

Around 500 Warao arrived on the streets of Manaus last year, where they begged from drivers and sold craftwork at traffic lights.

Many slept under a highway overpass until city authorities stopped the begging and moved them into shelters they did not like.

Some then traveled down the Amazon to Santarem and Belem, while others returned to frontier towns, from which they can go back and forth to their delta homeland when they raise enough money.

“They started staying here, sleeping in the streets, and caused a humanitarian emergency,” said Pacaraima social services secretary Isabel Davila.

The town provided an abandoned warehouse with toilets, showers and a kitchen, built with funding from the Mormon church.

Like a similar shelter in the nearby city of Boa Vista that houses 500 Warao, these are temporary landing places, where the Warao can live while they get documents to legalize their status so they can find work, Davila said.

But Chief Rita has no plans to move. Pacaraima’s mayor promised land to grow crops and materials to make Warao craft work, she said, and she wants the Warao children to learn Portuguese.

Half of the land in Roraima state is reserved for indigenous peoples, but an attempt to ask local communities to cede territory to the Warao met with a firm rebuttal.

“We think they might be here for a decade,” said Danusa Sabala, a spokeswoman for Brazil’s Indian affairs office FUNAI, which sees no short-term solution for the Warao.

Ramon Gomez, a Warao chief in the Boa Vista shelter, said their ancestral homeland in the delta was “finished” and the situation in Venezuela was deteriorating rapidly.

“When … this President Maduro took over, everything ended, food, medicine,” Gómez said. “We will be here until Venezuela changes. It will get worse before it gets better.”

(Additional reporting by Sebastian Rocandio and Nacho Doce; Editing by Daniel Flynn and Jonathan Oatis)

Brazil army deploys in Rio slum as drug-related violence worsens

Armed Forces take up position during a operation after violent clashes between drug gangs in Rocinha slum in Rio de Janeiro, Brazil, September 22, 2017. REUTERS/Bruno Kelly

RIO DE JANEIRO (Reuters) – Hundreds of Brazilian soldiers poured into Rio de Janeiro’s Rocinha slum on Friday in a bid to help the cash-strapped state government quell the drug-related violence that authorities blamed for at least four deaths and several injuries there this week.

The army deployed 950 troops in the sprawling favela, responding to a request from the Rio state government, Defense Minister Raul Jungmann told local television.

In the past week, 60 criminals are believed to have launched an effort to dominate the drug trade in the area, not far from some of the city’s most expensive real estate, and shootings were reported there on Friday morning, according to local media.

The violence in Rocinha is one more sign of the backsliding since the launch of a “pacification” program in 2008 to reduce violence by pushing out drug gangs and setting up permanent outposts in the city’s more than 1,000 favelas.

Police struggled to maintain security gains in favelas in the run-up to the 2016 Olympics in Rio and have continued to lose ground as a fiscal crisis in the city and state lead to cutbacks in spending on police and other essential services.

The military operation in Rocinha on Friday disrupted transportation and businesses in the area, with some schools closing or paring back operations.

“I was going to work and suddenly the police closed off the tunnel in Rocinha and started to patrol with guns. There was a panic at the mouth of the tunnel and I saw people running and heard gunfire,” one witness told Reuters, requesting anonymity.

“I’m still shaking now.”

The outbreak of violence is happening in the midst of the Rock in Rio music festival at the far south end of the city, which has drawn thousands of people with musical acts including Fergie and Aerosmith.

Broadcaster GloboNews on Friday showed relatively calm scenes of matte green military trucks filing down roads into the favela, including soldiers riding on trucks and motorcycles holding assault rifles.

There are up to 10,000 troops in Rio de Janeiro who could be mobilized if needed, the defense ministry said.

“We’re not going to back off in Rocinha,” the governor of Rio state Luiz Fernando Pezao told journalists.

(Reporting by Rodrigo Viga Gaier and Pedro Fonseca; Writing by Jake Spring, editing by Tom Brown)

Brazil unions protest Temer’s reforms amid political crisis

Demonstrators prepare a burning barricade during a protest against President Michel Temer's proposal reform of Brazil's social security system in the general strike in Sao Paulo, Brazil, June 30, 2017. REUTERS/Leonardo Benassatto

By Pedro Fonseca

RIO DE JANEIRO (Reuters) – Labor unions staged a nationwide strike on Friday to protest against legislative changes to Brazil’s labor and pension laws that are central to the economic reform agenda of embattled center-right President Michel Temer.

Subway and bus services shut down in Brasilia, the nation’s capital, while demonstrations blocked roads and snarled traffic in the megacities of São Paulo and Rio de Janeiro as union activists took to the streets.

However, the protest appeared to have limited impact and triggered none of the violent clashes between police and protesters that marked a much larger strike in April.

It came after Brazil was riveted this week by a corruption charge filed against Temer by the country’s top prosecutor.

The charge, the first ever leveled against a sitting president in Brazil, marked a milestone in a three-year probe by investigators that has revealed stunning levels of corruption in Latin America’s largest country.

Temer, one-third of his cabinet, four past presidents and dozens of lawmakers are either on trial, facing charges or under investigation for corruption. Over 90 people have been found guilty so far.

Brazil’s largest oil workers federation said in an emailed statement that Friday’s work stoppage would continue for an indefinite period, and that all 10 refineries where it represents workers were affected.

Executives at state-controlled oil company Petróleo Brasileiro SA acknowledged that the job action had a limited impact at oil refineries. But they said exploration and production activity, along with logistics, carried on as normal.

Temer, who replaced impeached leftist President Dilma Rousseff last year, was charged with graft on Monday by Prosecutor General Rodrigo Janot after executives of the world’s biggest meatpacker, JBS SA, accused him of taking millions in bribes.

He has denied any wrongdoing and resisted repeated calls to resign. But the lower house of congress is preparing to vote on whether he should face a trial in the Supreme Court, which would prompt his removal from office for at least 180 days.

Other criminal charges against Temer are widely expected to be filed by Janot, and a ruling on Friday by Supreme Court Judge Edson Fachin appeared to come in anticipation of that.

Fachin said each and every charge against the president would have to be investigated separately, meaning that Temer could potentially face more than one trial before the court.

Unions fiercely oppose Temer’s labor reform bill as it reduces their power over workplaces by cutting mandatory dues and allowing companies and employees to negotiate contract terms more freely. The bill has already been approved by the lower house of Congress and will likely pass the Senate within a few weeks.

Unions also criticize Temer’s pension overhaul proposal as it would make Brazilians work more years before retiring.

Economists and investors see pension reform as the only way for Brazil to shore up its finances in the long run without resorting to tax hikes.

(Reporting by Pedro Fonseca in Rio de Janeiro and Ricardo Brito in Brasilia; Writing by Silvio Cascione; Editing by Marguerita Choy and Tom Brown)

Brazil cuts inflation target for first time in over a decade

Brazil's Central Bank President Ilan Goldfajn looks on during a news conference next to Brazil's Economy Minister Henrique Meirelles and Brazil's Planning Minister Dyogo Henrique de Oliveira in Brasilia, Brazil June 29, 2017. REUTERS/Ueslei Marcelino

By Silvio Cascione and Marcela Ayres

BRASILIA (Reuters) – Brazil’s government on Thursday lowered its annual inflation target for the first time in more than a decade, seeking to turn the page on recent double-digit jumps in consumer prices and bolster investors’ confidence about future economic stability.

The National Monetary Council, comprised of heads of the finance and planning ministries and the central bank, cut the inflation target to 4.25 percent in 2019 and 4.00 percent the following year, from 4.5 percent at present.

The tolerance range was maintained at 1.5 percentage point.

The reduction, predicted by a Reuters poll of economists in January, followed a plunge in annual inflation from nearly 11 percent in early 2016 to 3.6 percent in June.

A stronger commitment to low inflation could boost Brazil’s long-term growth by reducing investor uncertainty, without closing the door to further interest rate cuts by the central bank this year, economists said.

Economists forecast an inflation rate of 3.5 percent for 2017, breaking a sequence of seven straight years of Brazil overshooting its target. Under the administration of former President Dilma Rousseff, who was impeached last year, economists accused policymakers of pursuing the ceiling of the goal and not its midpoint in order to avoid rate hikes that could hurt growth.

“Economic policy has all the necessary conditions in terms of inflation, transparency and credibility to remain committed to these inflation targets,” central bank chief Ilan Goldfajn told journalists.

Yields <0#DIJ:> on longer-dated interest rate futures slipped in early trading, suggesting investors saw the new targets as consistent with forecasts of interest rate cuts. Global risk aversion pushed yields up again later in the day, traders said.

Growing investor optimism about Brazil’s economic prospects contrasts with an escalating political crisis that threatens to remove President Michel Temer from office.

Goldfajn said the targets took into account the political environment, and also responded affirmatively when asked if he expected to stay in his post even if Temer is suspended from office should the Supreme Court try him on corruption charges. Temer appointed Goldfajn to lead the central bank last year.

The central bank has been expected to cut its benchmark rate to 8.5 percent by December, from 10.25 percent currently, according to a central bank survey of economists released on Monday. The bank has already lowered the benchmark rate by 400 basis points since October.

Before the decision was announced, economists had been forecasting an annual inflation rate of 4.25 percent for the years of 2019, 2020 and 2021, according to the central bank.

“Expectations will probably start to converge toward the new target as soon as next week,” said Gustavo Arruda, an economist with BNP Paribas.

Brazil began targeting inflation in 1999, with the 4.5 percent target being first adopted for 2005.

Goldfajn had long said Brazil should aim for a target more in line with other emerging markets. Latin American countries such as Mexico and Chile target inflation at 3 percent.

(Reporting by Silvio Cascione and Marcela Ayres; Editing by W Simon and Daniel Flynn)

Driver rams his car into Brazil’s presidential residence

Federal policemen and Brazilian armed forces reinforce security in front of Alvorada Palace after a driver rammed his car through the gates of Brazil's presidential residence in Brasilia, Brazil, June 28, 2017. REUTERS/Ueslei Marcelino

SAO PAULO (Reuters) – A driver rammed his car through the gates of Brazil’s presidential residence on Wednesday and was arrested, security forces said, though President Michel Temer was not inside the building.

Guards fired warning shots and then opened fire at the vehicle when it refused to stop, before detaining the driver, who appeared to be a minor, the statement said. Temer himself lives in another official residence.

The driver was not wounded and the car stopped inside the compound of the Alvorada residence. Images published by the G1 news website show the presidential residence gate knocked to the ground and shotgun shells over the floor outside the residence.

Access to the area was closed after the incident. Temer lives in Jaburu, another official residence, less than a mile away from Alvorada.

Temer has the lowest approval rating of any president in almost 30 years, only seven percent, pollster Datafolha showed last week.

Brazil’s president was charged on Monday for taking bribes by prosecutor-general Rodrigo Janot and the Supreme Court sent the charges to the lower house on Wednesday.

(Reporting by Tatiana Bautzer; Editing by Sandra Maler, Bill Trott and Michael Perry)

U.S. bans fresh Brazil beef imports over safety concerns

A customer (R) pays for his meat at the Municipal Market in Sao Paulo October 10, 2014. REUTERS/Nacho Doce

By Tom Polansek

CHICAGO (Reuters) – The United States halted imports of fresh Brazilian beef on Thursday, the U.S. Department of Agriculture (USDA) said, after a high percentage of shipments failed to pass safety checks.

The USDA had “recurring concerns about the safety of the products intended for the American market,” after increasing tests on Brazilian beef in March, according to a statement.

The agency raised scrutiny on Brazilian beef and ready-to-eat products as a precaution following an investigation into corruption involving Brazil’s health inspectors that targeted meat companies JBS SA <JBSS3.SA> and BRF SA <BRFS3.SA>.

JBS, the world’s largest meat packer, declined to comment on the U.S. ban.

The USDA’s action threatens the reputation of meat from Brazil, the world’s top exporter of beef and poultry, even though the United States is not a top customer. It also could boost domestic sales in the United States.

“Product was already on the water and that’s not going to be allowed in,” Altin Kalo, a U.S. livestock analyst at Steiner Consulting Group, said about shipments headed to the United States from Brazil via boat.

Since March, the USDA has rejected 11 percent of Brazilian fresh beef products, compared to the rejection rate of 1 percent for shipments from the rest of the world, the agency said. The shipments, totaling about 1.9 million pounds, raised concerns about public health, animal health and sanitation, according to the USDA.

The agency said none of the rejected lots made it into the U.S. market.

The move to block Brazilian meat is a turnaround for Agriculture Secretary Sonny Perdue, who warned in March that Brazil might retaliate if the United States halted beef imports.

On Thursday, he said in a statement that “although international trade is an important part of what we do at USDA, and Brazil has long been one of our partners, my first priority is to protect American consumers.”

The U.S. suspension will remain in place until Brazil’s Agriculture Ministry “takes corrective action which the USDA finds satisfactory,” according to the agency.

A slew of global buyers, including China, Egypt and Chile, curtailed imports of Brazilian meat after Brazilian federal police unveiled an investigation into alleged corruption in the sector on March 17.

Brazilian authorities said at the time that meat companies made payments to government health officials to forego inspections and cover up health violations.

China is not expected to follow the U.S. move as it only permits imports of frozen Brazilian beef, which has different requirements to fresh meat, said analysts.

Brazil is also China’s top beef supplier, and would be difficult to replace in the short-term, said Pan Chenjun, senior animal protein analyst at Rabobank.

The United States began allowing shipments of fresh beef from Brazil last year after banning them due to concerns about foot and mouth disease in cattle.

(Additional reporting by Michael Hirtzer in Chicago, Tatiana Bautzer in Sao Paulo and Dominique Patton in Beijing.; Editing by David Gregorio and Bill Trott)

‘You want war?’ Venezuela spars with rivals at OAS meeting

Venezuelan Foreign Minister Delcy Rodriguez speaks during a news conference on the sidelines of the OAS 47th General Assembly in Cancun, Mexico June 20, 2017. REUTERS/Carlos Jasso

By Anthony Esposito

CANCUN, Mexico (Reuters) – Governments from across the Americas chastised Venezuela’s socialist leadership on Tuesday for its handling of a political and economic crisis, prompting the OPEC nation’s foreign minister to call the critics “lapdogs of imperialism.”

The United States, Brazil and 10 other members of the 34-nation Organization of American States (OAS) issued a letter accusing Venezuela of undermining democracy, failing to feed its people and violating rights.

“Considering the interruption of the democratic process in the Bolivarian Republic of Venezuela, we believe that there should be a settled solution that includes all Venezuelan parties for the benefit of the people of that nation,” said the letter issued at the OAS general assembly in Cancun, Mexico.

It called for the release of political prisoners, respect for rights, an election timetable, a “humanitarian channel” to ship food and medicine, and the creation of a group or mechanism to help “effective dialogue among Venezuelans.”

The 12 nations also called on Venezuelan President Nicolas Maduro to abandon a July 30 vote for a super-body with powers to rewrite the country’s constitution. Critics see Maduro’s move as a ploy to hold on to power.

Venezuelan Foreign Minister Delcy Rodriguez fired back, criticizing Mexico’s rights record and highlighting poverty, violence and migration in Honduras and other nations.

Rodriguez said the country’s planned constituent assembly was the only way to overcome the current crisis peacefully and called her critics “lapdogs of imperialism.”

“Do you want war? Is that what you want for Venezuela?” the minister said, wearing a red dress, the color identified with Venezuela’s Socialist Party. She accused OAS Secretary General Luis Almagro of trying to stir up a civil war in Venezuela.

“Great, we’ve reached the boss,” she said as U.S. Deputy Secretary of State John Sullivan began a speech, repeating her jibe that the OAS is an arm of U.S. diplomacy.

Sullivan asked members of the OAS “to do right by the people of Venezuela” through the creation of a group to help facilitate a resolution.

Rodriguez said: “The only way you could impose this on us is with your Marines, which would meet a strong response in Venezuela.”

She said Venezuela would never go back to the OAS.

But she left the door open to participating in further meetings, saying that although Venezuela left the organization there was a two-year administrative period to finalize the departure in which it could still participate.

Honduran Foreign Minister Maria Dolores Aguero asked Rodriguez to explain how her government was going to alleviate Venezuela’s problems.

“Instead of responding to all of us who want peace for your people, why not tell us how you are going to resolve the crisis they are living?” Aguero said.

A meeting on the sidelines failed on Monday to agree on a resolution formally rebuking Venezuela, where 75 people have been killed in protests in recent weeks.

“A resolution, a strong declaration from this organization, is probably the only realistic way of avoiding a blood bath in Venezuela,” said Jose Miguel Vivanco, the executive director Americas for Human Rights Watch.

Some of the meeting’s participants remained optimistic they could reach a resolution and that Venezuela could avoid spiraling further into violence.

The foreign minister of Guatemala, a nation that faced a 36-year internal armed conflict that left some 200,000 people dead, voiced that sentiment.

“We don’t wish that on anybody, least of all Venezuela, and if we were able to sit down and negotiate, Venezuela needs to be able to do that too,” Foreign Minister Carlos Morales said.

(Reporting by Anthony Esposito; Editing by Frank Jack Daniel and Leslie Adler)

Brazil exits recession with fastest growth rate since 2013

FILE PHOTO: Cranes are seen in the distance during a workers' strike at Latin America's biggest container port in Santos, Sao Paulo state, Brazil, September 14, 2016. REUTERS/Fernando Donasci/File Photo

By Silvio Cascione

BRASILIA (Reuters) – Brazil’s economy emerged from its worst recession on record with its fastest growth rate in nearly four years, data showed on Thursday, boosting President Michel Temer’s case for staying in office as he battles a corruption scandal.

Brazil’s gross domestic product (GDP) grew 1.0 percent in the first quarter from the preceding one, matching economists’ forecasts for the biggest rise since the second quarter of 2013.

Growth is unlikely to stay as strong in the second quarter, economists said, as the first-quarter performance was driven up by extraordinary harvests of corn and soy and by a strong buildup in inventories across the economy.

Yet Temer, who has resisted protests for his resignation after being placed under investigation by the Supreme Court, tweeted minutes after the release: “The recession is over!”

“It’s the result of the measures we are taking. Brazil is growing again and will grow even more with the reforms,” he went on. He was referring to a legislative agenda seen as crucial for balancing the budget but which got stuck in Congress as his allies debated whether to break ranks with the government.

Fourteen million workers remain unemployed in Brazil, a country with one of the biggest gaps between the wealthy and poor. Many analysts expect Latin America’s largest economy, operating now at 2010 levels and forecast to grow just 0.5 percent in 2017, will continue running below potential throughout next year at least.

Subpar growth, in turn, should give policymakers room to continue cutting interest rates in coming months. The central bank slashed its benchmark Selic rate by 100 basis points on Wednesday to 10.25 percent and flagged further cuts to come, although probably at a slower pace because of the political uncertainty. <BRCBMP=ECI>

“HISTORICAL DAY”

Brazil’s economy shrank more than 3 percent in each of the past two years, the deepest and longest downturn since records began in 1901. As the recession deepened last year, Temer’s predecessor, Dilma Rousseff, was impeached for breaking budget rules amid record-low approval ratings.

Temer’s hold on power seemed in danger two weeks ago when the billionaire owners of meatpacker JBS SA <JBSS3.SA> accused him of condoning bribes to silence a key witness in a corruption probe. But lack of a clear replacement and signs of economic growth have given the scandal-plagued president some breathing room, allies have said.

“There is still some way to go before a full recovery but we’re in the right direction,” Finance Minister Henrique Meirelles said in a statement praising what he called a “historical day” for Brazil.

IBGE also revised up fourth-quarter data to show that Latin America’s largest economy contracted 0.5 percent in that period, and not 0.9 percent as originally reported.

Agricultural output rose in the first quarter at the fastest pace since 1996. Services remained stagnant and manufacturing grew only slightly in the first quarter, driven up by stronger exports, IBGE said. Government data later on Thursday showed a record trade balance in May. <BRTBAL=ECI>

Brazil’s economy shrank 0.4 percent in the first quarter from the year-earlier period, following a 2.5 percent drop in the previous quarter. <BRGDP=ECI>

(Reporting by Silvio Cascione; Editing by W Simon and Chizu Nomiyama)