Once Kindred Spirits, Brazil, Argentina Diverge on Economic Management

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Two weeks ago, the government of Argentinian President Cristina Fernandez de Kirchner announced the seizure of two rail lines operated by Latin America Logistics (ALL), Brazil’s largest private transportation company. Florencio Randazzo, Argentina’s interior minister, echoed a 2012 government report that cited “grave” violations of a 1999 railway contract with the company, including failure to invest sufficient resources in Argentina and refusal to pay large fines, as the reason for the nationalization. The railway seizures mark the latest in a string of nationalizations in Argentina that includes a $24-billion pension fund, Argentina Airlines and, last year, the government’s seizure of […]

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