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Mexico, Nicaragua cut ties with Ecuador after embassy raid

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Mexico has severed diplomatic ties with Ecuador and vowed to take the country to international court after police broke into its embassy in the capital, Quito, and detained a former Ecuadorian vice-president who had sought refuge there after being convicted of corruption.

The right-wing government of President Daniel Noboa ordered police to enter the embassy building after Mexico’s social democratic government granted asylum to Jorge Glas, Ecuador’s vice president from 2013-18, who was recently sentenced to 14 years in prison.

Police entered the embassy late on Friday night as heavily armed soldiers stood guard outside. Video posted on social media showed two black police jeeps leaving the diplomatic compound with sirens blaring and Mexico’s acting ambassador, Roberto Canseco, shouting. “No, no, no, this is a violation, this is not possible!” Canseco said, and was forced to the ground by police.

Canseco later told reporters: “This is absolutely unacceptable. They hit me, they pushed me to the ground. I physically tried to stop them from getting in. They searched the Mexican embassy in Quito like criminals,” he said.

Mexican President Andrés Manuel López Obrador accused Ecuador of ‘flagrant violations of international law and Mexican sovereignty’ and said he had ordered the immediate suspension of diplomatic relations.

Mexican minister: Even dictator Pinochet did not dare

The 1961 Vienna Convention guarantees the inviolability of diplomatic premises, stating that ‘representatives of the receiving State may not enter them without the consent of the head of mission’. Even under military dictatorships, forced entry into an embassy by the host government was almost unheard of.

In Latin America, there has not been a serious attack on a national embassy since the 1980s. In 1980, the Spanish embassy in Guatemala City was burned down, killing 37 people, and the Colombian guerrilla group M-19 took diplomats hostage in the Dominican Republic’s embassy in Bogotá.

Mexican Foreign Minister Alicia Bárcena thanked the returning diplomats for “protecting our embassy in Quito, even at the risk of their own physical health”.

“Not even the dictator Pinochet dared to enter the Mexican embassy in Chile. They entered by force and without authorisation and physically attacked (the diplomats). We condemn this in the strongest possible terms,” he said.

Bárcena said he would take the case to the International Court of Justice ‘to denounce Ecuador’s responsibility for violations of international law’. Several Mexican diplomats were injured in the raid, the minister added.

Ecuadorian leader defends raid

Ecuadorian leader Noboa argued that the immunity and privileges granted to the diplomatic mission hosting Jorge Glas had been ‘abused’ and that his political asylum was ‘contrary to the legal framework’.

“Ecuador is a sovereign country and we will not allow any criminal to go unpunished,” Noboa added.

Glas was transferred on Saturday morning to a maximum security prison known as ‘The Rock’ in Ecuador’s main port city of Guayaquil, according to a statement from the country’s prison service. Videos posted on social media earlier showed him being transported in an armoured convoy from a detention centre in Quito.The dispute between Ecuador and Mexico has been ongoing since Glas took refuge in the embassy in December.He fled to the embassy after prosecutors published chat messages suggesting that a prominent Ecuadorian drug trafficker had been released early from a long prison sentence in 2022 after bribing a judge.

Glas was part of Correa’s team

López Obrador angered the Ecuadorian government this week by suggesting that Noboa’s election victory over a leftist opponent last year was due to his opponent being falsely accused of murdering another candidate during the campaign. Ecuador decided to expel the Mexican ambassador in response to the comments. Glas was Rafael Correa’s vice-president and was backed by Luisa González de Correa, who lost to Noboa last year. In a statement on Saturday, González called on Noboa to resign. Rafael Correa took refuge in Belgium in 2018, due to an arrest warrant issued against him on corruption charges.

Ecuador’s right-wing President Noboa

Noboa, 36, enjoys growing popularity among Ecuadorians and strong support from Washington after declaring an all-out war on drug trafficking. Born into a wealthy banana-exporting family, Noboa has used emergency powers to put troops on the streets and sent the army to take control of gang-ridden prisons – tactics borrowed in part from El Salvador’s strongman leader Nayib Bukele. Last October, Noboa announced that Israel would help him design ‘maximum security’ prisons.

Last February, Noboa approved two military cooperation agreements with the United States, including one for joint naval operations.One of the agreements allows Ecuador to conduct joint operations with the United States to combat illegal activities such as drug trafficking, arms and human trafficking, and illegal fishing.

Noboa came to power in November after President Guillermo Lasso, who was facing impeachment for embezzlement, called for early elections. Noboa will remain in office until May 2025, the remainder of Lasso’s term.

After taking office, Noboa drafted an emergency tax bill that raised the value-added tax by three percentage points to 15% and gave the green light to thousands of environmental permits for oil and mining companies, measures he said would help boost both the economy and state coffers.The new president also planned to cut petrol subsidies and liberalise the labour market to make it more employer-friendly.The Noboa government also asked the US and EU to restructure the country’s foreign debt as part of its ‘war on gangs’.

Noboa made his first visit to Washington as president-elect. Focusing on securing financing mechanisms to implement his campaign promises, Noboa met with representatives of the International Monetary Fund (IMF), the World Bank, the Organisation of American States, the US Chamber of Commerce and the Inter-American Development Bank.

Latin American nations condemn Ecuador

Condemnations from Latin American governments were not slow in coming. The governments of Cuba, Venezuela and Honduras criticised Ecuador’s actions, while Nicaragua followed Mexico in cutting diplomatic ties with Quito on Saturday.

Brazil’s foreign ministry said the raid ‘sets a serious precedent and must be firmly rejected, whatever the justification for its implementation’. The right-wing governments of Argentina and Uruguay also criticised Ecuador.

Colombia’s leftist President Gustavo Petro said Glas’s right to political asylum had been ‘barbarically violated’ and called on regional multilateral organisations, including the Organisation of American States (OAS), to take up the case.

In a statement on Saturday, the OAS General Secretariat criticised Ecuador and said it ‘rejects any action that violates or threatens the inviolability of diplomatic mission premises’. The OAS also called for ‘dialogue between the parties to resolve their differences’.

In a statement on Saturday, the US State Department condemned any violation of the Vienna Convention and said both countries were ‘important partners’.

“We encourage the two countries to resolve their differences in accordance with international norms,” it said.

AMERICA

Biden plans to write off Ukraine’s $4.6bn debt ahead of Trump

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President Joe Biden’s administration has officially notified Congress of its intention to forgive Ukraine’s $4.65 billion debt, a move tied to ongoing efforts to support the country amid its conflict with Russia.

This debt represents half of the $9 billion provided to Kyiv as part of the $61 billion aid package approved by Washington in April. Unlike other forms of assistance, this funding was issued as conditionally repayable loans, with provisions allowing the United States President to cancel up to 50% of the debt if deemed necessary.

In a statement, the U.S. State Department explained that the debt cancellation is intended to “help Ukraine win” and serves the national interests of the U.S., the EU, G7+, and NATO.”

According to Bloomberg, President Biden is determined to maximize aid to Ukraine before President-elect Donald Trump assumes office. However, the decision to write off the debt has drawn sharp criticism from Republicans.

Republican Senator Rand Paul argued that the Biden administration’s decision places undue financial burden on the American public. He pledged to demand a vote in the Senate to challenge the proposal.

Despite this, Bloomberg notes that any effort to overturn the debt cancellation would require approval from both houses of Congress, a scenario that appears unlikely given the Democratic majority in the Senate. Furthermore, President Biden holds veto power, making reversal of the decision even more challenging.

Earlier, U.S. Secretary of State Antony Blinken announced plans to exhaust all remaining aid approved by Congress before President Trump’s inauguration on January 20.

National Security Advisor Jake Sullivan emphasized that one of the administration’s key goals is to position Ukraine as strongly as possible—both militarily and at the negotiating table.

Pentagon officials reported that $9.3 billion in military aid is currently in the pipeline. Pentagon spokeswoman Sabrina Singh confirmed plans for weekly arms deliveries to Kyiv, with the aim of expediting aid distribution before the presidential transition.

On November 20, the Pentagon unveiled an additional $275 million military aid package for Ukraine, further underscoring the administration’s commitment to strengthening Ukraine’s defense capabilities.

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AMERICA

Donald Trump taps Howard Lutnick to lead Commerce Department

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Donald Trump has announced his intention to nominate Wall Street investor and campaign donor Howard Lutnick as the new head of the U.S. Department of Commerce, placing the billionaire at the forefront of implementing the sweeping tariffs promised during his presidential campaign.

Lutnick, who co-chaired Trump’s transition team, had previously been considered for the role of Treasury Secretary. He is also the CEO of Cantor Fitzgerald, a prominent investment firm.

In a statement on Tuesday, Trump declared that Lutnick would be “directly responsible” for leading the Commerce Department and overseeing the Office of the U.S. Trade Representative (USTR).

The USTR, established in 1974 to manage negotiations with U.S. trading partners, traditionally reports directly to the president. If confirmed by the Senate, the 63-year-old Lutnick will play a pivotal role in aiding U.S. businesses and executing Trump’s proposed tariffs on international trade partners.

Trump has outlined plans for a 60% tariff on imports from China and a global tariff of up to 20%, signaling a major shift in U.S. trade policy.

Lutnick, despite lacking prior government experience, has been a steadfast advocate for Trump’s economic agenda. During a New York campaign rally, Lutnick remarked, “When was America great? At the turn of the century, our economy was floundering! That was 125 years ago. We had no income tax and all we had were tariffs.”

While Lutnick has emerged as a major donor to Trump, he has also supported establishment Democrats and Republicans in the past, including Chuck Schumer and Jeb Bush. He contributed to both Hillary Clinton’s 2008 and 2016 campaigns, hosting a fundraiser for her in 2015. Lutnick maintains a personal friendship with the Clintons, noting their attendance at a Cantor Fitzgerald fundraiser in September 2022.

Lutnick has also maintained a long-standing relationship with Trump, even appearing on The Celebrity Apprentice in 2008. He disclosed to the Financial Times in October that he has donated over $10 million to Trump’s 2024 campaign and another $500,000 to the transition team, totaling approximately $75 million.

Treasury Secretary selection process still uncertain

The position of Treasury Secretary, one of the most significant roles in Trump’s administration, remains undecided. Lutnick’s name has been floated for the role, though he faces competition from hedge fund manager Scott Bessent, private equity billionaire Marc Rowan, and former Federal Reserve governor Kevin Warsh.

Marc Rowan, the CEO of Apollo Global Management, has emerged as a leading contender and is expected to meet with Trump to present his case. Rowan’s supporters cite his extensive expertise in financial markets, though competition remains fierce.

Forecasting site Polymarket currently lists Warsh as the favorite for Treasury Secretary, followed by Bessent, Rowan, and William Hagerty. If unsuccessful in his bid for Treasury Secretary, Bessent is reportedly vying for the chairmanship of the National Economic Council.

Trump names Mehmet Oz to run Medicare and Medicaid

Trump also announced on Tuesday his nomination of Dr. Mehmet Oz to lead the Centers for Medicare and Medicaid Services (CMS). Describing Oz as “one of the most talented physicians” capable of “making America healthy again,” Trump expressed confidence in Oz’s ability to reduce waste and fraud within the nation’s largest government agency.

Dr. Oz, a former heart surgeon and Columbia University professor, rose to prominence as Oprah Winfrey’s health expert before hosting his own popular talk show. However, his career has been controversial, with critics accusing him of promoting scientifically dubious theories and unproven treatments.

Oz’s political experience includes a 2022 Senate race in Pennsylvania, where he was endorsed by Trump but ultimately lost to Democrat John Fetterman.

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U.S. may start its plan to separate Google from Chrome

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The Department of Justice (DOJ) may move forward with plans to force the sale of Google’s Chrome web browser as part of its ongoing antitrust case against Alphabet (Google).

According to sources familiar with the case, the department intends to ask the judge—who ruled in August that Google illegally monopolized the search market—to address concerns related to artificial intelligence (AI) and the Android smartphone operating system. This information was reported by Bloomberg.

Antitrust officials, along with participating state attorneys, are expected to recommend that federal Judge Amit Mehta impose data licensing requirements on Google. These officials have indicated that Chrome, the world’s most widely used browser, is a critical gateway for many users accessing Google Search. For this reason, they are urging the judge to mandate the sale of Chrome.

Officials stated that a Chrome sale could be considered later if other settlement measures fail to foster a more competitive market. Currently, Google Chrome commands a dominant 61% share of the U.S. browser market, according to StatCounter, a web traffic analysis service.

Over the past three months, state attorneys interviewed numerous companies to prepare their recommendations. Officials noted that some recommendations are still under review, and details may evolve before submission.

While a proposal to force Google to sell its Android platform was considered, officials have since stepped back from this more aggressive option.

If Judge Mehta adopts these recommendations, the ruling could significantly reshape the online search market and influence the emerging artificial intelligence industry.

The case, originally filed during the Trump administration and continued under President Joe Biden, represents one of the most aggressive efforts to regulate a major tech company in decades. The last comparable attempt was Washington’s unsuccessful bid to break up Microsoft in the early 2000s.

Chrome plays a crucial role in Google’s advertising business by providing user data that enhances ad targeting, a primary revenue source. Additionally, Google has been leveraging Chrome to promote Gemini, its new AI bot. Gemini has the potential to evolve from a simple answer bot to a comprehensive assistant, supporting users across the web.

Bloomberg Intelligence analyst Mandeep Singh estimates that Chrome could be worth $15–20 billion if sold, considering its more than 3 billion monthly active users. However, Bob O’Donnell of TECHnalysis Research notes that Chrome’s value depends on its integration with other services, stating: “It’s not directly monetizable. It acts as a gateway to other things. Monetization would depend on how buyers link Chrome to their services.”

Google has strongly opposed the DOJ’s recommendations. Lee-Anne Mulholland, Google’s vice president of regulatory affairs, criticized the move as government overreach, arguing: “This agenda goes far beyond the legal issues in this case and will harm consumers, developers, and American technological leadership at a critical time.”

Former Google CEO Eric Schmidt echoed this sentiment in an interview with CNBC. He emphasized the value of Chrome in enhancing the Google ecosystem, stating: “Singling out these companies won’t fundamentally solve the broader issues.”

In a blog post, Google warned that under new ownership, Chrome might no longer remain free or receive the same level of investment, potentially leading to a shift in its business model.

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