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Editor’s Note: Kawsachun News spoke to Ecuadorian economist Juan Fernando Terán on April 2 about Western sanctions, the Ukraine war and how Latin America can protect its economy. The original interview can be found here.

Who is paying the price of western sanctions on Russia? Ecuador’s banana industry has collapsed without the Russian consumer market.

Juan F. Terán: Countries that export food and agricultural goods are in an incredibly difficult position now. Ecuador, Colombia, Brazil and Argentina are among the worst affected. These countries import almost all the supplies they need for agricultural production; fertilizer, agrochemicals and even seeds in some cases. Sanctions have cut off these supplies. We could have prevented this situation.

Latin America lived through a golden era of development and integration during the period of leaders such as [former Ecuadorian President Rafael] Correa, [former Bolivian President] Evo Morales, [former Brazilian President] Lula [da Silva] and others. During these years, a lot of work went into the issue of how the region can start producing its own agricultural supplies. This was a flagship project of [Union of South American Nations] UNASUR. The aim was to guarantee food security in the face of fluctuations in international markets. There was also the proposal for a Latin American-wide bank and a common currency. This could’ve helped the region’s economy survive this current monetary crisis, too.

What’s happening now, though? Let’s look at the case of Ecuador: We have two main sources of income in exports. The first is oil. Logically, the war in Ukraine should have been beneficial because the price of oil has risen, which should mean more income from sales for Ecuador. However, the conservative President Guillermo Lasso had already promised the IMF the payment from future oil sales. Even if the price of oil goes to $300 (per barrel) it won’t benefit ordinary citizens.

What about agriculture?

JFT: The country also earns a lot by exporting goods such as bananas, coffee, shrimp and flowers. The primary market for Ecuadorian flower production is Russia. Now those producers are facing a dramatic crisis because sanctions have cut them off from their clients. This is a huge industry for Ecuador. In the provinces of Pichincha and Cotopaxi, there are entire regions dedicated almost entirely to flower production. They even have airports there because these flowers are exported to the world by plane. A small part of their production goes to the United States and Europe, but the large majority goes to Russia. Russia is one of the few countries where people buy flowers all year round rather than just for certain dates like Valentine’s Day.

What about our shrimp, coffee, or cacao exports? All that requires fertilizer and other imported agricultural supplies. Now there’s a global shortage, Russia was the world’s leading producer and now they’re sanctioned.

What has been the government’s response?

JFT: Countries can survive this storm if they have an umbrella, but Ecuador doesn’t have a progressive government. It has a neoliberal government. Our economy has no umbrella now.

What has been the neoliberal response to this current crisis? The flower producers were the first to ask for assistance. They asked for loans, so they can sustain themselves temporarily during this drop. President Lasso replied by saying that going into business means assuming risk and that the state has no obligation to bail anyone out. This idea of not bailing anyone out is a great idea in my opinion, but only if it’s applied evenly. We shouldn’t have to bail out the bankers when they have a crisis. But, of course, Guillermo Lasso will never abandon his people. He only abandons small farmers, who are now in crisis.

Electing progressive governments in Latin America is not a question of ideology; it’s also about citizens defending their economy and living standards. If a banker manages to win an election, then these are the results.

Many countries now see Washington as an unreliable ally and are looking to trade in different currencies. Do you think the U.S. dollar will lose its international hegemony? What would that mean for Latin America?

JFT: When the [Brazil, Russia, India, China, South Africa] BRICS countries start trading entirely in Yuan, or any currency that isn’t the dollar, then the world is going to really change. I think we can expect to see this transformation within the next five years. It’ll represent the definitive defeat of the U.S. empire. History shows us that a country’s military power is linked to the power of its currency.

When Britain ruled the world, the British pound dominated international trade. Even Ecuador’s external debt was in pound sterling during those years. The reserves of our central bank were in pound sterling. This came to an end after the end of World War 2 because the U.S. became the new dominant power and built the world’s financial and monetary institutions for its own ends. The current war in Ukraine is also about currency. The U.S. is participating in this conflict against Russia because they need to defend the power of the dollar.

What can the region do?

JFT: Latin America needs to slowly de-link our region from the U.S. dollar. We need to diversify our international currency reserves. Correa began to do this in Ecuador by investing in gold reserves. This was criticized by the opposition at the time. However, this diversification can only happen if we make the necessary changes to our commercial relations. If we’re to start building reserves in the Chinese yuan, then we need to deepen commercial relations with China to achieve this.

I think we should return to the proposal of UNASUR of creating a common Latin American currency with its own central bank. We also need a Latin American payment system. Look at how the U.S. is using SWIFT to cut off any country they don’t like from the global economy. We can’t allow that. It makes us vulnerable. Russia and China are creating their own payment systems. We should have our own as well.

There’s no use in just complaining about U.S. aggression. That’s what they do. They invade and attack countries all over the world. The real problem is that Latin America is exposed and unable to deal with this kind of economic war. In response, we need to turn towards Asia in a serious way. Why isn’t the Ecuadorian government securing new markets for our shrimp and banana in China? There’s huge demand there. Bolivia and Ecuador both have vast mineral wealth, we need to bypass the West and focus on Asia when it comes to trade and investment in these commodities.

U.S. media has attacked countries like Mexico, Brazil and Argentina, for not imposing their own economic sanctions on Russia. Do you think this capricious request from the United States will further break down the U.S. sphere of influence here and across the rest of the global South?

These sanctions are causing an inflation crisis for people everywhere. Europeans are paying 8-9 euros for a gallon of gasoline. In the U.S., it’s $4.75. Up to $6 in places like California and Miami. This is shocking. The sanctions are having a boomerang effect on the U.S. and its citizens. Though not everyone is suffering: Arms manufacturers are not suffering. People like [U.S. President Joe] Biden’s son [Hunter], with shady dealings in the gas business, are not going to suffer.

Financial analysis reports came out this week indicating that if the price of gasoline remains at $4.75 as a national average in the U.S., then the U.S. economy will enter into a recession at the end of this year. None of what they’re doing is reasonable from the perspective of ordinary citizens.

Black political organizations and other anti-imperialist groups condemned the U.S. Federal Bureau of Investigations (FBI) raiding early Friday morning the properties of the African People’s Socialist Party (APSP) and its solidarity organization in Saint Louis, Missouri, and in Saint Petersburg, Florida.

Based on the description, APSP appears to be one of several unidentified groups and people implicated in a 25-page indictment of a Russian national, Aleksandr Ionov. The Moscow-based founder of the nonprofit Anti-Globalization Movement of Russia (AGMR) has been accused of attempting to influence U.S.-based groups to turn against the United States and work in favor of Russia.

“Anyone who opposes U.S. imperialism or who has made common cause internationally is endangered,” Black Agenda Report Executive Editor Margaret Kimberley wrote on Facebook. “Not surprising that a Black organization is the first on their hit list.”

The raid began at 5 a.m. July 29 at the Saint Louis home of APSP Chairman Omali Yeshitela and his wife and APSP Deputy Chair, Ona Zené Yeshitela.

Yeshitela said in a Facebook livestream later that day that the APSP was targeted for its support of Russia during the military operation the country has been undertaking in Ukraine since February 24.

Among several allegations, the FBI accused Ionov’s group of paying U.S. activists to attend two conferences in Russia. It also said Ionov helped a group conduct a tour in the United States to drum up support for a petition charging the U.S. government with committing genocide against African descendants. Yeshitela admitted meeting with Ionov twice in Russia.

“Suddenly, we’re supposed to become tools, like Black people don’t have minds of our own to find out what our reality is and who’s responsible for it,” Yeshitela said in the livestream. “It’s white people doing self-criticism and uniting to give money. That’s where the money is coming from, Uncle Sam.”

‘Crisis’ of U.S. Imperialism

Yeshitela said while the United States was targeting Black activists, it has failed diplomatically.

“They’re doing this, in part, because not a single African country—not even neocolonial sycophants—want to unite with the United States and the United Nations in terms of how they are targeting Russia in this Ukraine-Russia question,” he said, referring to the economic sanctions slapped on Russia after it entered Ukraine in February. When Ukrainian President Volodomyr Zelensky recently held a virtual meeting with African countries, 93 percent of heads of state did not attend, despite Western pressure.

“This exposes the crisis the United States, that U.S. imperialism, is in,” said APSP Director of Agitation and Propaganda Akilé Anai in a livestreamed press conference in Saint Petersburg. Anai said FBI agents lured her outside her home early Friday morning, saying her car had been broken into. Upon opening her car, they forced her to hand over her devices, she said.

Yeshitela, 80, said he and Ona were awoken Friday morning to the sound of a voice blaring through a megaphone outside their home, asking them to come outside with their hands up. Flashbang grenades were set off throughout the working-class Saint Louis neighborhood, Yeshitela added. He also said a drone almost hit Ona’s face after she opened the home’s front door. Law enforcement agents lately have deployed drones into buildings to conduct a visual search before agents enter.

Yeshitela said FBI agents handcuffed the couple and forced them to sit on the street curb while agents scoured their home. “They indicated they had a search warrant related to the indictment,” he said. The FBI freed the couple after several hours, but not without confiscating from their home all of their devices, such as computers and phones, according to Yeshitela’s livestreamed account.

The FBI was unavailable as of press time.

Black Scare, Red Scare

Black activists have long denounced the U.S. government’s anti-communist rhetoric going back to the early 20th century, saying such calls to take down communists really have translated into attempts to dismantle Black liberation movements and other liberation movements in the United States.

“In reality, what anti-communism/anti-Marxism does is to transform anything counter-hegemonic or non-conforming into subversion, foreignness, or disloyalty by punishing it as communist, communist inspired, or communist infiltrated and therefore illegal, illicit or criminal,” said Dr. Charisse Burden-Stelly in a recent talk.

Burden-Stelly, an associate professor of African-American Studies at Wayne State University, has written a soon-to-be-released book, Black Scare, Red Scare (2023). It attempts to document how the U.S. government’s anti-communist policies repress Black and other oppressed people for organizing for their liberation. This, she has said, helps to protect what she calls “racial capitalism,” in which the most degrading labor is forced upon increasingly exploited racialized groups.

U.S. Government’s ‘Hysterical Response’

Black political groups denounced large segments of the U.S. political left for believing Black activists are stooges of Russia, or the former Soviet Union.

“We agree that APSP doesn’t have to apologize for fighting for justice for all oppressed and particularly African People like our ancestors Marcus Garvey, Malcolm X, Martin Luther King, and the Black Panther Party who were spied on, jailed and assassinated for standing up for the freedom and justice for African People worldwide,” said the central committee of Pan-Africanist organization All-African People’s Revolutionary Party in a statement issued Saturday.

Activists like Malcolm X and Martin Luther King, Jr., who were called communists, were assassinated. Jamaican activist Marcus Garvey, who advocated for the unification of Africa under Pan-Africanism and the end of European colonialism in Africa, was briefly imprisoned in Atlanta for what some consider the politically motivated charge of mail fraud. Trinidad and Tobago-born U.S.-based communist Claudia Jones—after whom Toward Freedom‘s summer editorial internship was named—was deported to the United Kingdom for her activism.

“We believe this repression to be a hysterical response to the United States’ loss of legitimacy in the context of the deepening crisis of capitalism and U.S. global hegemony,” said the Black Alliance for Peace (BAP)’s Coordinating Committee in a statement released Saturday. “The unleashing of policing and counterintelligence forces domestically and increased militarism and warmongering abroad in the name of national security are the only avenues left to the U.S. ruling class that is engulfed in an irreversible economic crisis. They represent the hallmarks of a naked fascism that the U.S. ruling class appears to be increasingly committed to in order to maintain the rule of capital.”

Then BAP added a warning in its statement.

“While it is APSP today, it will ultimately be the rest of us tomorrow. Resistance is our only option.”

Julie Varughese is editor of Toward Freedom.

Editor’s Note: This article was originally published by Kawsachun News.

Several countries have taken to the General Assembly to warn against the suspension mechanism, which was used to oust Russia from the Human Rights Council on April 7, when a resolution was adopted in the General Assembly despite only being supported by a minority of United Nations member states.

93 of 193 members voted for the resolution titled, Suspension of the rights of membership of the Russian Federation in the Human Rights Council.

Of the remaining 100 members: 24 voted against the resolution; 58 abstained; and 18 countries, among them Venezuela, did not vote.

The Russian Federation was elected as a member of the Human Rights Council in 2020 with 158 votes⁠—but it took only 93 votes to remove its membership from the Council.

Cuba was among the vocal critics of the suspension mechanism utilized for April 7’s vote, saying its use sets a precedent whereby a country can be removed with no minimum number of votes required for the approval of a suspension, without the majority of the Assembly, and in a vote where abstentions are treated differently than in other votes.

The following is an excerpt of the statement by the Permanent Representative of Cuba to the UN, Ambassador Pedro Luis Pedroso Cuesta, in explanation of vote on the draft resolution on the suspension of the rights of the Russian Federation as a member of the Human Rights Council:

“This clause can be activated with the support of only two-thirds of those present and voting; therefore, abstentions do not count and there is not even a minimum number of votes required for the suspension to be approved. To be elected as a member of the Human Rights Council, a country needs to obtain at least the support of a majority of the UN members, i.e. at least 97 votes, in a secret ballot. Thus, the rights of a member of the Council can be suspended by the will of an even smaller number of States than those that decided to elect it and grant it those rights.

The Russian Federation, which was elected as a member of the Human Rights Council in 2020 with 158 votes, could today be suspended with a lower number. This suspension mechanism, which has no parallel in any other UN body, can easily be used selectively. Today it is Russia, but tomorrow it could be any of our countries, particularly nations of the South that do not bow to the interests of domination and firmly defend their independence.”

The representative went on to say: 

“Cuba will be consistent with the reservations it made regarding the mechanism of suspension of membership, upon the adoption in 2006 of resolution 60/251 that established the Human Rights Council and resolution 65/265, of 2011, on the suspension of Libya’s rights.

The adoption of the draft resolution we are considering today will set an additional dangerous precedent, particularly for the South. It is not enough for them to impose country-specific resolutions and targeted mandates. Now they intend to take a new step towards the legitimization of selectivity and the creation of a Human Rights Council increasingly at the service of certain countries, as was once the extinct and discredited Human Rights Commission. For the reasons stated above, the Cuban delegation will vote against draft resolution A/ES-11/L.4.”

A transcription of the statement by the Permanent Representative of Cuba, read in the General Assembly, can be read here in Spanish.

Watch the full statement given by Ambassador Pedro Pedroso on our YouTube and Facebook.