Camisea nationalisation threat may hit Peru's Castillo

Significance

Prime Minister Guido Bellido’s threat to nationalise Camisea has further stirred debate at the heart of government, this time about implementing a campaign pledge to this end, notwithstanding the government’s professed aim to create a secure environment for foreign investment. Bellido’s announcement did not have the backing of the cabinet as a whole.

Impacts

• Bellido’s position will suffer if he is seen to backtrack on a key issue contained in Peru Libre’s manifesto.
• Polarised disagreements within the cabinet will persist.
• Castillo’s position will suffer from the lack of clear leadership.