Presidency of Pedro Castillo

Presidency of Pedro Castillo July 28, 2021 – present
Cabinet	See list
Party	Free Peru
Election	2021
Seat	Government Palace
Standard of the president

The presidency of Pedro Castillo began with his inauguration as the president of Peru on 28 July 2021, the Peruvian Independence Day.

In June 2021, Castillo, a schoolteacher and union organizer, won the presidential election against the right-wing candidate Keiko Fujimori of Popular Force by a narrow 45,000 margin in the runoff. However, in the congressional elections, Castillo's party, Free Peru, failed to reach a majority in the Congress. Castillo faces a splintered and right-leaning Congress that is unlikely to sign off on his economic plans, especially any nationalizations.

Transition period and inauguration

Government Palace

In his inauguration speech Castillo said he would not govern from the Government Palace, also known as the House of Pizarro, due to it being a colonial symbol. Additionally, Castillo said that he would turn the Government Palace into a museum. While Castillo initially governed from a temporary house in Breña, he later moved back to the Government Palace due to legal issues. The move back to the Palace was first announced as a temporary measure until new place could be found. However, no further developments have occurred since.

Bellido cabinet

Overview

Main article: Cabinet of Peru

From its inception, Castillo's cabinet has faced great controversy. Before the formation of the Bellido cabinet, Castillo promised to form of groups from different political groups. The formation of the Bellido Cabinet took many by surprise. Some called it the "shock cabinet," due to the belief that it was meant to bait Congress into denying confidence twice so that Congress could be shut down, as it was during the 2019–2020 Peruvian constitutional crisis. A congressman from Free Peru claimed that Congress was attempting to impeach the President, and warned that if trust is denied twice then Congress will be dissolved. Vice President Dina Boluarte rejected the possibility of dissolving Congress.

The cabinet led to the Purple Party and We Are Peru leaving the government coalition, and sparked backlash from Congress and sectors of the public. President Pedro Castillo appointed the new head of the Joint Command of the Armed Forces (CC. FF. AA.). On August 3, Manuel Gómez de la Torre replaced General César Astudillo as general commander of the Armed Forces. Changes were also made for the general commanders of the Army, Navy, and Air Force.

On October 6, 2021, President Castillo announced the resignation of Guido Bellido cabinet, citing instability in the country. Under Peruvian law, the resignation of the Prime Minister dissolves the cabinet. A new cabinet was formed, led by Mirtha Vásquez.

Resignation of Héctor Béjar

Almost immediately after his appointment as Foreign Minister, the media began scrutinizing Héctor Béjar's controversial past. Béjar had been part of the National Liberation Army during the 1960s and had met Che Guevara according to his book "Peru 1965: Notes on a Guerrilla Experience." Later, a resurfaced video from November 2020 appeared, where Béjar claimed that terrorism began in the Navy and that the Shining Path was trained by the CIA, leading to significant public backlash. Later, the Peruvian Navy released a statement calling for Béjar to retract his statements, and claimed that Béjar's statement were an affront against those who fought against terrorism. Following that, Congress began an interpellation process against Béjar, which was seen by many as a show trial that would be almost certainly followed by impeachment. However, Béjar resigned before the interpellations began. According to Héctor Béjar, Prime Minister Guido Bellido asked him to resign to prevent him from speaking before Congress, which he said was a way of censoring him. Béjar held the position of Foreign Minister for just 19 days. His replacement was the career diplomat Óscar Maúrtua.

After his resignation, Béjar exlaimed "I am free again!" Later, he would claim that this was the beginning of a soft coup against the Castillo's government. Béjar also claimed that there is a group in the Navy and the extreme right that does not want an independent foreign policy. He also claimed that his phrases were distorted and taken out of context. Béjar stated that his expressions on the Navy were about a bomb plot against the Minister of War in 1975, and an attack against two Cuban fishing boats off the coast of Peru in 1977. Declassified documents show that the US Embassy suspected that these attacks were carried out by right-wing sectors of the Navy, which were unhappy with the military junta's close ties to Cuba at the time.

Formation of the Magisterial and Popular Party

The Magisterial and Popular Party (PPM) is a party under registration that consists of the teacher faction from Free Peru. The party is based on Fenate, the teacher's union which Castillo founded.

On November 29, 2021 (after the fall of the Bellido cabinet), Mery Coila Ramírez, the president of the PPM, arrived at the JNE with 30,174 signatures to begin the registration of the party. Coila claimed that the PPM had "fraternal" relations with Free Peru and invited Castillo to join her new party.

Interpellation and dismissal of Iber Maraví

The Labor Minister Iber Maraví has been accused of having links to the Shining Path, claims which he has denied. Police reports from 1980, 1981, and 2004 suspected that Maraví had ties to the Shining Path and Conare-Sutep, a teacher union linked with MOVADEF. Maraví maintained his innocence, stating that he has no criminal or judicial record and that the police used torture against detainees to get them to falsely implicate themselves or others as terrorists. However, two of the witnesses who accused Maraví were convicted for terrorism and escaped from jail less than a year later along with other notorious Shining Path leaders. Maraví has acknowledged that his wife and mother-in-law signed forms to register MOVADEF as a political party. However, he claims that the event occurred without consent. Maraví has accused the allegations against him of being devoid of substance and being used to tarnish his reputation. He stated that he has openly condemned any terrorist act and expressed his conviction for respecting institutions and democracy.

Initially, Prime Minister Guido Bellido asked for Maraví to resign. However, the Prime Minister later changed his mind and said that he would use the question of confidence to defend Maraví from impeachment. Following this, Keiko Fujimori, the leader of Popular Force accused Castillo of leading a terrorist government. Subsequently, Maraví announced that he would undertake legal action against Keiko. Later, Justice Minister Aníbal Torres reassured the press that a question of confidence would not be used to defend Maraví. However, PM Bellido said that Torres' statement "is an opinion of the minister," and affirmed that using the question of confidence to defend Maraví wasn't ruled out.

The press has reported that Congress plans to wait until October 7, 2021, which is when a reinterpretation of the question of trust comes into effect after having been approved on September 17, 2021. The reinterpretation forbids the Prime Minister from raising the question of trust for constitutional reform bills and for issues that are the exclusive competence of the Congress of the Republic. According to sources consulted, the Congressional will claim that censuring ministers is a competence of the legislature in which the Government cannot intervene.

Previously, Aníbal Torres criticized Congress' move to reinterpret the question of confidence, saying that it violated the balance of power established by the Constitution. Torres has stated that if Congress tries to promulgate the reinterpretation, then the Government will present an action of unconstitutionality. This case would be overseen by the Constitutional Court. It is worth noting that Congress has begun the election of new judges for the Constitutional Court. The mandate for the current Constitutional Court expired in 2019, but they kept serving as Congress couldn't agree on replacements.

The Congressional opposition's attempt to impeach Iber Maraví was abruptly cut by the dissolution of the Bellido cabinet. He was replaced by Betssy Chávez.

Resignation of Guido Bellido

Citing instability in the country, Pedro Castillo announced that Prime Minister Guido Bellido had resigned during a surprise message in state television. Bellido's status as Prime Minister was controversial from the start of his tenure, due to him being accused of apology for terrorism. Under Peruvian law, the resignation of the Prime Minister dissolves the entire cabinet. Leaders from the Congressional opposition welcomed Castillo's decision to replace Guido Bellido.

Vásquez cabinet

Overview

Main article: Cabinet of Peru

Mirtha Vásquez was appointed Prime Minister of Peru on October 6. Vásquez was previously a congresswoman for the Broad Front party.

Relations with Free Peru

After the new ministers were sworn in, Free Peru's spokesperson Waldemar Cerrón called the new cabinet a betrayal of the majority. He stated that Free Peru will keep fighting for a cabinet that represents all Peruvian people. According to Edgar Tello, a Congressman from Free Peru, his party has agreed to not give confidence to the Vásquez cabinet. Tello also indicated that if Castillo does not respond to Free Peru's request to reevaluate the cabinet, then Free Peru could become part of the opposition. When asked if the party would support impeachment against Castillo, Tello stated that the Free Peru caucus has not made a decision in this regard. However, he noted that he wished that Free Peru wouldn't have to resort to such extremes.

The next day, Free Peru released a statement, in which they stated they will not support the cabinet but ruled out acting to obstruct the Government. Waldemar Cerrón claimed that the party was more united than ever, and that they support President Castillo. That said, a faction of Free Peru came out in support of the new cabinet. Ultimately, 16 of Free Peru's parliamentarians, including former Prime MInister Guido Bellido, voted against giving confidence to the Vásquez cabinet. 19 of Free Peru's parliamentarians voted to give confidence to the Vásquez cabinet.

On November 6, 2021, Free Peru's Regional Secretary Jorge Spelucín claimed that President Castillo had cut off all communication channels with Free Peru. Spelucín claimed that the President's environment is guiding him towards the political center and right, and that Free Peru wants to help Castillo return to the left. Former Prime Minister Guido Bellido also affirmed that Castillo had cut off communication after the resignation of the Bellido cabinet. Bellido also claimed that Castillo's ideological formation "is not from the left," but rather at "the level of a basic trade unionist."

On November 20, 2021, following an impending impeachment motion, Edgar Tello assured that Free Peru is united against a presidential impeachment. The Free Peru parliamentarian Silvana Robles called the impeachment motion a coup, and claimed that impeachment was always on the agenda, despite the President of Congress Maricarmen Alva claiming otherwise. Additionally, another Free Peru parliamentarian, Kelly Portalatino, accused Vice President Dina Boluarte of conspiring against Castillo. Previously, Boluarte had distanced herself from Free Peru and tried negotiating with the opposition, including with the Go on Country parliamentarian Patricia Chirinos. Later, Chirinos proposed the impeachment impeachment against Castillo. Chirinos claimed that she had never spoke to Boluarte regarding her intention to file an impeachment motion against Castillo. Boluarte responded by saying that her total loyalty was with the President and the Peruvian people.

On November 23, 2021, the Free Peru parliamentarian Margot Palacios claimed that she would evaluate supporting the impeachment motion against President Castillo. Hours after Palacios' statement, Free Peru's General Secretary Vladimir Cerrón said "When you lose faith in your militancy, you force yourself to look for strength with the mercenaries." Cerron also quoted Borges by saying "traitors are reliable because they never change." Afterward, El Comercio released a paper claiming that the Free Peru caucus voted as a split group nearly 50% of the time.

On November 29, 2021, Vladimir Cerrón announced that Free Peru will hold an extraordinary national assembly on December 5, 2021, to determine the party's stance on the impeachment motion, the government, and other topics.

On December 6, 2021, Free Peru concluded its extraordinary national assembly by announcing that it would vote unanimously against impeachment. Free Peru stated that it has "serious disappearances" with the "caviar" government of Castillo, but also accused the pro-impeachment movement of being fascist and anti-democratic. Additionally, Free Peru also reaffirmed that it considered Cuba, Venezuela, and Boliva to have democratic governments.

Dismissal of Luis Barranzuela

Luis Barranzuela, the new Minister of the Interior, was a former police officer and the lawyer of Vladimir Cerrón until his appointment as minister. On October 18, 2021, Congress questioned the new minister over the 158 reprimands he got during his time as a police officer, and his ties to Free Peru. The parties Popular Action and Go on Country warned that they would not give confidence to the Vásquez cabinet if Luis Barranzuela wasn't removed from the cabinet.

Afterward, Luis Barranzuela was caught hosting a party despite pandemic restrictions. In the backlash that followed, members of the ruling Free Peru caucus and various members of the opposition called for Barranzuela's resignation. 48 hours after the party was held, Barranzuela resigned. On November 4, 2021, Avelino Guillén was sworn in as the new Interior Minister.

Resignation of Walter Ayala

On November 4, 2021, the General Commander of the Army, José Vizcarra Álvarez (not to be confused with Martín Vizcarra), and Jorge Luis Chaparro, the General Commander of the Air Force, were relieved from their duties. Both had served in their positions for 3 months prior to their removal. On November 8, 2021, Vizcarra claimed that President Castillo, Defense Minister Walter Ayala, and presidential secretary Bruno Pacheco had pressured him to irregularly promote two colonels. Vizcarra claimed that his refusal to promote them led to him being removed as General Commander of the Army.

Subsequently, members from the Congressional opposition denounced the allege irregularities. They began to prepare a motion of interpellation against the Defense Minister Walter Ayala, which would allow Congress to question him on the incident. Jorge Montoya, the spokesperson of Popular Renewal stated that following the interpellations he would censure (impeach) Ayala from his position. Afterward, Ayala stated that he was evaluating resigning as Minister of Defense due to "continuous attacks." However, he denied claims that he had interfered with the promotions.

Afterward, several other generals affirmed that the Secretary of the Presidency had interfered with promotions. Chaparro, the former commander of the Airforce claimed that he had been asked on 3 occasions to promote people who did not have the necessary skills. The leader of Free Peru, Vladimir Cerrón distanced his party from the scandal, saying that Free Peru does not lead the current government. Meanwhile, Prime Minister Mirtha Vásquez gave a statement saying that the government respects an attitude of non-interference in the Armed Forces. She stated that "serious" facts were revealed, and that a decision would be announced within the next few hours.

On November 13, 2021, Justice Minister Aníbal Torres called on Walter Ayala to resign. Meanwhile, Health Minister Hernando Cevallos stated that Castillo was very annoyed with presidential secretary Bruno Pacheco's behavior, and that he had removed those people who may violate the independence of the armed forces. Additionally, rumors grew that Prime Minister Mirtha Vásquez might resign due to the controversy over Walter Ayala. In Peruvian law, the resignation of the PM dissolves the entire cabinet. Responding to the rumors, Labor Minister Betssy Chávez said that there was "a lot of speculation" on the matter but affirmed that the cabinet will work together. Meanwhile, Aníbal Torres downplayed such rumors, saying that he hasn't seen "differences" between Castillo and Vásquez.

On November 14, 2021, Walter Ayala announced his irrevocable resignation. However, the next day, Ayala stated that the resignation would only become effective once Castillo accepted it, and that he would continue working in the meanwhile. Ayala stated that he could not abandon his post since there was no replacement as of then and accused Congress of not allowing him to work. Later that day, Castillo accepted the resignation of Walter Ayala and thanked him for his services.

On November 17, 2021, Juan Carrasco was sworn in as the new Defense Minister. Carrasco had previously been Castillo's Interior Minister during the Bellido cabinet.

In November 19, Presidential Secretary Bruno Pacheco resigned. Pacheco claimed to be innocent, and said he was resigning to stop the smear campaign against the president.

Controversy over Juan Silva

On November 3, 2021, Transportation Minister Juan Silva announced an agreement with transport unions. Prior to the agreement, the transport unions of Lima and Callao had announced plans to strike. The agreement involved the replacement of the president of the Urban Transportation Authority, and the head of the Superintendence of Land Transport of People, Cargo and Goods (Sutran) The new head of the Sutran resigned 6 days later, following the revelation that 3 police complaints had been filed against her for allege robberies of shopping center.

On November 11, 2021, Congress voted against interpellating Silva, in part due to Popular Force abstaining. Since Popular Force, and its Fujmorist ideology are seen as being staunchly opposed to Castillo, their decision to abstain drew much criticism from anti-Castillo hardliners. Popular Force's spokesperson, Hernando Guerra García, responded to the criticism by saying that the "spotlight" shouldn't be on two things at once, referring to the pressure campaign against the then Defense Minister Walter Ayala. Guerra García said that interpellation would go "minister by minister."

On November 18, 2021, Congress accepted a new motion to interpellate Juan Silva. The motion was proposed by Popular Force.

Replacement of José Sánchez

On November 17, 2021, Jorge Luis Prado Palomino was sworn in the Minister of Production. He replaced José Roger Incio Sánchez. The reason for the replacement wasn't specified.

Impeachment attempt

On November 20, 2021, Popular Force, Go on Country, and Popular Renewal backed a motion by Patricia Chirinos to impeach President Castillo for "moral incapacity." With the three parties only having 43 votes out of the 87 needed for impeachment, Popular Renewal parliamentarian José Cueto said that he was aware that the motion would fail but hoped that the motion would get 52 signatures to allow for Congress to summon President Castillo for questioning before Congress.

Together for Peru denounced the impeachment motion, referring to it as a "coup maneuver." Together for Peru accused the impeachment agenda of being carried out by those who "never recognized the electoral results," referring to electoral fraud allegations following the 2021 Peruvian general election. The opposition parties Popular Action and Alliance for Progress also expressed their rejection of the impeachment motion. However, they rejected calls by Free Peru to censure Patricia Chirinos from her position as the third Vice President of the Congressional Board of Directors due to her impeachment proposal. Responding to the impeachment proposal, Castillo said "People elected with 2,000 votes want to silence a government elected by millions."

On November 26, 2021, Vice President Dina Boluarte claimed that the impeachment motion was a "coup d'état," saying that the Peruvian people elected Castillo for five years. She also said that she was certain that the motion would not succeed, and that even the parliamentarians who previously signed the motion "are reflecting on it." On another occasion, Boluarte accused the Popular Renewal parliamentarian Rafael López Aliaga of financing the impeachment attempt by bussing in "paid people" to Lima so that they march in favor of impeachment.

Free Peru's position on the impeachment was made unclear due to contradictory statements by members. On November 29, 2021, Vladimir Cerrón announced that Free Peru will hold an extraordinary national assembly on December 5, 2021, to determine the party's stance on the impeachment motion, the government, and other topics.

On December 3, 2021, Edwin de la Cruz, the Secretary General of Go on Country, announced that Patricia Chirinos would be expelled from the party for her proposal to impeach Castillo. Cruz went on to claim that the party was against impeachment and that Go on Country's leader and former presidential candidate Hernando de Soto was only a "guest" in the party. Later that day, Hernando de Soto announced that Edwin de la Cruz would be expelled from the party. Furthermore, de Soto claimed that neither the caucus nor, Aldo Borrero, the party's president was aware that Cruz was acting as the secretary general. De Soto stated, "I am an expert in the informal sector and it seems that we are facing an informal secretary general."

On December 4, 2021, Edwin de la Cruz claimed that Hernando de Soto was an "informal leader" and announced that he would be expelled from Go on Country. Afterward, the Go on Country caucus displayed their support for Patricia Chirinos and claimed that Cruz was undergoing expulsion from the party.

On December 6, 2021, Free Peru concluded its extraordinary national assembly by announcing that it would vote unanimously against impeachment.

The Cuarto Poder audio clips were released on December 5, 2021. While there was much anticipation up to its release, over claims that it would prove corruption and graft in the Castillo government, the actual release of the clips saw an underwhelming response. The clips showed an associate of Castillo offering a journalist "scoops and headlines" in exchange for shelving a negative article. Following the revelations, the impeachment motion rapidly fell apart as less hardline members of the opposition rescinded their support for the impeachment motion.

On December 7, 2021, with 46 in favor, 76 against, and 4 abstentions, Congress refuse to admit the impeachment motion. Following the defeat of the impeachment motion President Castillo said "Pedro Castillo: "I am grateful that the congressional vote to put Peru before other interests."

Investigation of Bruno Pacheco

On November 16, 2021, leaked chats showed that then presidential secretary Bruno Pacheco attempted to pressure the SUNAT to favor certain companies and individuals.

On November 19, 2021, Bruno Pacheco resigned as presidential secretary due to his role in the Walter Ayala controversy, regarding attempts to irregularly promote military personnel. Pacheco maintained that he was resigning in order to stop the smear campaign against President Castillo. His position was replaced by Carlos Jaico.

On November 23, 2021, the Public Prosecutor's Office found $20,000 in cash was found inside Pacheco's office bathroom in the Governmental Palace. Pacheco claimed that this money came from his savings and the salary he received.

On November 24, 2021, Alejandro Aguinaga, a Popular Force parliamentarian and president of the Congressional Oversight Commission called on Prime Minister Mirtha Vásquez to indicate what measures would be taken against Pacheco. In response, the Free Peru parliamentarian Guillermo Bermejo accused the Fujimorist Popular Force of double standards and brought up corruption charges against Alberto Fujimori and Vladimiro Montesinos. Meanwhile, the former Prime Minister Guido Bellido said "It makes me suspicious that someone goes to work with his 20 thousand dollars," and stated that it would be evaluated and taken into account in Free Peru's stance on the impeachment motion. Later, PM Vásquez stated that "We are the foremost interested in this investigation moving forward."

On December 6, 2021, RPP reported that on July 26, 2021, two days before Castillo's inauguration, the minimum requirements for the presidential secretary were removed. Prior to the removal of the requirements, the presidential secretary had to have at least 10 years of experience in the public or private sector and 5 years of experience in directing staff.

ON December 8, 2021, the Supreme Court barred Pacheco from leaving the country for 8 months.

Controversy over Breña house meetings

On November 28, 2021, Cuarto Poder published various footage of Castillo entering a house in Breña. Said house was previously used by Castillo during his presidential campaign, and also briefly served as his presidential residency during the beginning of his administration, when he sought to turn the Government Palace into a museum. The footage shows Castillo arriving to the building without his characteristic Chotano hat, despite the Comptroller's Office previously having sent a warning against holding meetings outside the Government Palace. Several luxury cars also arrived at the building, which Cuarto Poder claims are owned by businessmen interested with meeting with Castillo.

Karelim López Arredondo, a businesswoman identified in the footage, is a friend of the former presidential secretary Bruno Pacheco, who's now under investigation. Arredondo previously received a S/232.5 million government contracts shortly after visiting the Government Palace. Arredondo also later visited the house in Breña.

The Defense Minister Juan Carrasco was also identified as having meetings in the Breña house. Carrasco said that he met solely with Castillo on a normal and daily basis, and that he wasn't aware that anyone else also arrived in the building. Carrasco also said that meetings could be held in a private place and questioned if the report could release confidential information regarding the defense sector. Meanwhile, the Health Minister Hernando Cevallos said that Castilo's meetings do not always have to be public, and that there is nothing illicit. Cevallos also said that "there are sectors that want to use everything politically and misinform so that people believe that these are illegal meetings of the president and that is not the case in any way."

On November 29, 2021, Castillo claimed that the meetings in Breña were of a "personal nature" during a public statement. The President also stated, "Anyone who takes advantage of the position must be investigated and punished," and said that he would welcome a "rapid and thorough" investigation. In another part of the speech, Castillo referred to the opposition and said "They never accepted that a rondero, a teacher leads the nation and that promotes structural changes in the country. The objective of these groups is to empty the president, without any support and with absolute irresponsibility for the consequences that these anti-democratic acts have for our population."

On November 30, 2021, former Prime Minister Guido Bellido criticized Castillo for not "valuing" the efforts of his supporters who "faced this campaign in search of a transparent government that fights against corruption." Bellido also said that "The campaign costs the people and not his nephews." The statement was released shortly after Free Peru's leader Vladimir Cerrón said "Pedro Castillo says that nobody financed the campaign, another thing is that he has not put anything." Following the Breña incident, Free Peru also announced it would hold an extraordinary national assembly on December 5, 2021, in order to determine the party's stance on an impeachment, the government, and other things.

Also on November 30, 2021, the Free Peru parliamentarian Óscar Zea testified to having met with Castillo in the Breña house, alongside members of the magisterial faction and teachers of different unions. Zea said that the issue of holding official meetings outside of the Government Palace will be corrected. Meanwhile, the President of Congress Maricarmen Alva accused Castillo of not clarifying on the allegations during his statement the day earlier. Also, We Are Peru stated that they will support the impeachment motion unless Castillo clarifies on the Breña meetings, while Podemos Perú and 4 parliamentarians of Alliance for Progress said that they would evaluate supporting the impeachment motion, which is believed to be at least partially due to the Breña incident.

Later, it came to light that on October 21, 2021, Elmer García Gutiérrez had falsely told a journalist that his name was "Carlos Ponce" while leaving the Breña house. "Ponce" had been inside the house for two hours and claimed to be solely visiting friends. Afterwards, it was discovered that García occupied a sub-management position at the state-owned Essalud Goods Supply Center. In another investigation, it was discovered that two companies which competed for a S/232.5 million contract were owned by the same person, days after a business adviser related to the owner visited the Government Palace. The winning contract was 27 cents cheaper than the opposing one.

On December 1, 2021, Prime Minister Mirtha Vásquez assured that the Breña house and other places outside the Government Palace will no longer be used for meetings and assured that measures would be taken in order to improve transparency. Vásquez also said Castillo would be willing to be transparent regarding the people he met in the Breña house.

Also on December 1, 2021, Peru and the OAS sign joint declaration in favor of democracy and human rights. The OAS leader Luis Almagro said that "We have seen the president [Pedro Castillo] have much determination to fight corruption, especially the corruption that may appear in an environment of his Government. Let his management be as clean as possible, and that requires important efforts in investigation. Let there be a permanent monitoring of transparency, of justice, and there is no element of shadow over officials." Almagro also stated that Castillo is "committed to being the president 100% of Peruvians" and that Castillo "is going to work with all the political forces in the country that want to work for the country."

The former Prime Minister Guido Bellido criticized Almagro's statements, saying "Mr. Almagro, your words seem more like publicherry than an objective opinion, that's not what international organizations are for, we remember your sad role in the Bolivia case." Bellido was referring to the OAS's controversial claims that electoral fraud took place in the 2019 Bolivian general election.

On December 2, 2021, Castillo called for the ronderos to investigate him and said that he would submit to "rondero justice." Previously, Castillo alluded on several occasions to being a rondero. The following day, Valentín Sánchez, the president of the Confederation of Rural and Native Peasant Rounds of Peru claimed that Castillo was never a rondero. According to Sánchez, there is a division in the rondero community, with the Unique Central of Peasant Rounds of Peru being an ally of the Government. Sánchez claims that Castillo knows that the division exists and accused him of "deceiving" the country. Sánchez also claimed that his group supports the impeachment attempt.

On December 4, 2021, Castillo distanced himself from the corruption allegations, saying "I'm sure they are plotting a lot of things. Audios, videos, and many edits will come out, but what they cannot do is shut us up and subdue our efforts.

On December 5, Cuarto Poder finally released the audio clip. The audio showed the owner of the Breña house offering "scoops and headlines" to a journalist in exchange for the journalist shelving an unfavorable news story. The host of ATV news, Juliana Oxenford, claimed that it is "much more revealing to know the high content of trans fats in Cheese Tris than the audio of Cuarto Poder." Meanwhile, the journalist Juan Carlos Tafur said that the Cuarto Poder audio "qualifies as a journalistic scam."

Following the revelation of the audio clip, the impeachment motion rapidly fell apart, as less hardline members of the opposition rescinded their support.

Domestic affairs

Economy

Monetary policy

Since Castillo's victory in the first electoral round, the Sol has faced a precipitous fall in value against the dollar, due to fears of inflation and expropriations. As of September 23, 2021, the Sol had lost 12% of its value since the start of the year, making Peru's currency one of the worst performers among emerging markets. Castillo has sought to calm the markets by keeping Julio Velarde as the head of the Central Bank. During a speech before the OAS assembly, Castillo stated that his government is not communist and that he wouldn't expropriate anyone. Castillo stated that he didn't come to scare away investment, but rather invited big businessmen to come to Peru.

Following Bellido's threat to nationalize the Camisea gas fields, the sol plunged once again. Afterward, Castillo replaced the Bellido cabinet with the Vásquez cabinet, which many have seen as a shift towards a more centrist administration. Following the new cabinet, the Sol began to recover its value, reaching a 10-week high as of October 13, 2021. However, after Castillo asked Congress to nationalize the Camisea gas fields, the Sol began to fall in value once again.

On November 9, 2021, the Bank of America warned that almost all of Peru's inflation indicators are on red alert. They claimed that Peru's expectations "are set to exceed the upper limit of 3% of the Central Bank's target range of a two-year term." The Bank of America suggested that the Central Bank will have to tighten monetary policy.

On November 16, 2021, Velarde announced that Peru would work jointly with India, Singapore, and Hong Kong in developing a central bank digital currency.

Price regulations

In a bid to lower soaring gas prices, Castillo reintroduced liquefied petroleum gas (LPG) to the Fuel Price Stabilization Fund (FEPC). The FEPC was created in 2002 and serves as a price support by giving a range of minimum and maximum consumer prices. In theory, the FEPC is self-sustaining. Should the price of gas be above the maximum consumer price, the FEPC will subsidize the cost for consumers. If the price of gas is below the minimum consumer price, then the profits will be given to the FEPC. However, LPG was removed from the FEPC in 2020, due to financial costs and skepticism on whether consumer prices were affected by the fiscal intervention. The reintroduction of LPG to the FEPC by Castillo reversed the 2020 policy decision.

Additionally, while Pedro Castillo's Economic Minister Pedro Francke and then Prime Minister Guido Bellido have denied any plans to institute price controls, the Free Peru caucus later attempted to modify the constitution to implement price controls. The amendment would have allowed the state to regulate the "supply and prices of goods of goods and services produced by public and private companies" due to shortages or a state of emergency. However, the amendment failed to pass within the opposition-controlled Congress.

Natural resources

Initially, some mining executives feared that Castillo may nationalize mining, as he alluded to it during his electoral campaign. However, as of late, the Castillo Administration has toned down its rhetoric and showed greater willingness to work with private companies. Castillo has pledged to raise taxes on mining companies, and to make sure that projects are "socially profitable" for local mining communities. Prime Minister Guido Bellido has stated that he welcomes investment as long as it means the development of the population.

Later, the then Prime Minister stated that the energy sector should be under government control, while using the Camisea Gas Project as an example. In response, Economic Minister Pedro Francke ruled out expropriating the Camisea gas field. Francke also claimed that Bellido's call for government control of the energy sector was actually referring to state participation in the construction of a proposed natural gas pipeline, the Gran Gasoducto del Sur. However, PM Bellido later urged for the contract with the Camisea gas field to be renegotiated, threatening to nationalize the gas field if higher taxes aren't paid. The Prime Minister has also stated that strategic recourses cannot remain in private hands. The Minister of Justice, Aníbal Torres, has stated that he's in favor of renegotiating the contract with Camisea, "like almost all the other ministers." However, Torres rejected the possibility of unilateral nationalization, and said that there were no talks about nationalization within the cabinet.

Bellido's position on the Camisea gas field was supported by the Free Peru caucus. They denied that this was part of an expropriation campaign, saying that the benefits from recourse extraction must be prioritized for Peruvians. The President of Congress Maricarmen Alva claimed that Bellido's threats of nationalization generated confusion and would scare away investment. Meanwhile, Vice President Dina Boluarte claimed that Bellido's stance on the Camisea oil field was in line with the President Castillo's views. However, Castillo later stated that any renegotiation of the Camisea gas field contract would be in accordance of the rule of law, and stated that "the State and the private sector work together for a better Peru."

Afterward, the Bellido cabinet was removed by the President. Some speculated that Bellido's stance on the Camisea gas field nationalization led to his downfall. However, following the appointment of the Vásquez cabinet, President Castillo urged Congress to make a joint law on the statization or nationalization of the Camisea gas, saying that "It is necessary to give Peruvians what the people have produced." A motion was created in Congress, to ask Prime Minister Mirtha Vásquez to clarify on the President's statements on the Camisea gas fields.

On November 20, 2021, Prime Minister Mirtha Vásquez stated that 4 mines in the Ayacucho region would not be allowed any extensions in their operational timelines, and that the mines will be closed as soon as possible on environmental grounds. Under Peruvian law, all mines have an expected closure date, although the date can be modified by regulators. Oscar Caipo, the president of Confiep, a group of Peru's largest corporations, claimed that Vásquez's decision ignores the rule of law. Raul Jacob, the president of Peru's Society of Mining, Energy and Oil, claimed that Vásquez was legitimizing violence as a justified measure of social pressure, referring to the ongoing mining protests. Vásquez replied by saying that the government respected legal stability and legal regulations.

The British-based Hochschild Mining, which owned two mines subject to closure, had it shares fall by 27% following Vásquez's announcements. Hochschild stated that it would challenge the closure of its mines and claimed that its mines operated under the ""highest environmental standards." The two mines subject to closure account for 80% of Hochschild's gold and silver production. In a press release, Vásquez called for calm and dialogue with the mining industry. However, Hochschild claimed that it had not received any formal communication from the government. JPMorgan analyst Patrick Jones claimed that the recent decisions "further increases the... geopolitical risk for miners operating in Peru."

On November 23, 2021, government officials and mining executives claimed to having "productive" talks following the Hochschild stock collapse. The anticipated closure of Hochschild's flagship Pallancata mine would deprive the company of over 60% of its cashflow. Later, the Vice Minister of Mining said that "If [the mining companies] have all the mechanisms to present an extension, they can do so, the door is not closed." This contradicted Vasquez's initial announcement that there would be no extensions, "whether for exploitation, exploration or even shutdown."

On November 24, 2021, PM Vásquez stated that there will be no "violation of legal certainty or unilateral closures," but that the "the State assumes the function of supervising the processes of mine closure and environmental control in accordance with the legal frameworks." Additionally, the Council of Ministers released a statement assuring that the government sought active and positive relations with both mining companies and local populations. The statement also rejected violence in all forms but recognized the right to protest as a legitimate right.

On December 3, 2021, the Las Bambas copper mine announced that it would shut down copper production starting mid-December due to continuous road blockades by protestors. The Ministry of Energy and Mines (Minem) said that the shutdown would have significant impact on GDP, and urged for the actors to maintain dialogue and reach a "satisfactory" agreement. Meanwhile, the National Society of Mining, Petroleum and Energy (SNMPE) criticized Minem, saying that "instead of dealing with a solution to the problem, it shows a concern that frankly generates a lot of confusion."

Banking

Peru's financial sector is characterized by a lack of credit, as 70% of Peruvians are unbanked or underbanked. Following complaints of loan sharks that charge rates up to 200%, Castillo has sought to improve competition by allowing public banks to compete with private banks. Additionally, Castillo has allowed additional foreign banks enter the Peruvian market.

Agriculture

On October 3, 2021, the 53rd anniversary of Juan Velasco's rise to power via a military coup d'état, Castillo announced the start of the Second Agrarian Reform with the aim of helping small farmers and ending abuse and inequality. This was a tacit acknowledgement of the original Agrarian Reform carried out by Velasco. Castillo stated that the Second Agrarian Reform will respect property rights and will not involve the expropriation of land. However, Castillo also stated "Let us end the bosses and the landowners because they will no longer eat the sweat of the poor and the peasants."

Castillo signaled that he would adjust the price bands to protect domestic agriculture from subsidized foreign products. Price bands for agriculture were created in 2001 for select goods, such as "hard yellow corn, milled rice, white sugar, and whole milk powder." However, over the years the price bands became increasingly liberalized, and by 2015 the price bands became nonexistent in practice. Castillo also spoke about his plan to industrialize coca leaf production and build an airport in Pichari so that goods can go directly to the national market.

In a speech before a crowd, then Prime Minister Guido Bellido threatened Congress to approve the agrarian reform. "If Congress does not approve it, let the congressmen return and let the people choose other congressmen." Afterward, the attendees shouted: "Close the Congress!" Peru's Congress has been accused of obstructionism by supporters of the Castillo Administration.

Healthcare

Vaccinations

Under the Castillo Administration, the government signed a deal with Russia to build a domestic vaccine factory. This factory, which will produce the Sputnik vaccine, is expected to become operational on 2023.

Free cancer treatment

On August 10, 2021, Castillo passed the National Cancer Law, which guaranteed free and universal cancer treatment regardless of insurance. The law had been proposed under the previous Congress, but wasn't ratified until the current government.

Media

Castillo has also been accused of being evasive with the press. Castillo has not offered any interviews to inform what plans he has in mind, and the Council of Ministers has suspended press conferences. Members of Castillo's cabinet have expressed reluctance of communicating with the press, due to the belief that the media maliciously distorts information. According to a poll from August 17, 2021, 78% of respondents believe that the president maintains an inadequate relationship with the press, while only 15% of respondents consider the president's relationship to be adequate.

On September 20, 2021, the Free Peru caucus proposed a bill which would declare the "public necessity and national interest the fair and equitable distribution of the electromagnetic and radioelectric spectrum in radio, television and other media." This would allow the government to take direct control of the media given an "exceptional and transitory nature." The bill was signed by 7 members of Free Peru, out of the 37 Congressmen it wields. Some newspapers have claimed that those who gave their signature to the bill are close to Vladimir Cerrón.

The opposition has criticized the broad and vague nature of this proposed media bill, which could be applied to the internet and any information platform. Castillo's Foreign Minister, Óscar Maúrtua also condemned the proposed bill, saying that it would "certainly affects international commitments... in areas as specific as human rights, of which, this administration of President Castillo, is fundamentally supportive and is very committed." According to witnesses from a business meeting with the President, Castillo had no knowledge of the proposed bill and said that he would hold a meeting with the Free Peru caucus to discuss the matter.

Afterward, a Free Peru parliamentarian withdrew her signature from the bill. While the bill still had enough signatures to be presented before the ordinary committee, nothing more came of it.

On November 23, 2021, President Castillo criticized the media for "distorting reality" and malicious editing. This came after numerous media outlets reported that Arequipa residents called for Castillo to be impeached while he visited the city, which he claimed was not true.

On December 4, 2021, Vice President Dina Boluarte announced that there would be changes in the Government, with one of them being greater communication of President Castillo and the press. Boluarte also announced that the Hall of Chroniclers of the Government Palace was reopened since December 1, 2021, which would allow accredited journalists to carry out news coverage from within the Government Palace and make it easier for journalists to reach out to the President.

Constituent assembly

One of Castillo's principal goals is to convene the constituent assembly to repeal and rewrite the Fujimori-era constitution. This measure is unlikely to pass in an opposition-controlled Congress. However, Free Peru and the Vice President have been collecting signatures to enact a constituent assembly via referendum. Likewise, the opposition has been gathering signatures against the proposal. Legal experts doubt whether these signatures will allow a constituent assembly to be held.

Following the resignation of the Bellido cabinet, Prime Minister Mirtha Vásquez stated that changing the constitution is not a priority, despite it having been one of Castillo's main campaign promises.

On December 1, 2021, Free Peru's spokesperson Waldemar Cerrón criticized a proposed Congressional bill which would require constitutional reforms to be "approved by Congress with an absolute majority of the legal number of members" to be submitted for referendum. This proposal would restrict the powers of the constituent assembly.

2021 mining protests

On July 23, 2021, following Castillo's electoral victory, mining communities near Las Bambas copper mine blocked the road used to transport the copper. The protesters claimed that local communities saw little benefit from the wealth generated by the mining. The Las Bambas Mine is one of the largest mines in Peru and produces 2% of the world's copper. Additionally, the protests tests Castillo's campaign promise to strike to redistribute mining wealth to local communities. In 2015, the Las Bambas copper mine experienced large-scale protests which led to the deaths of 3 people and 17 injured. Another wave of strikes arrived in 2020, which forced MMG Limited, the Chinese firm which owns the Las Bambas copper mine, to declare force majeure on some contracts.

To resolve the renewed waves of protests, a delegation led by then Prime Minister Guido Bellido arrived to Tambobamba on September 17, 2021. The Prime Minister pledged to negotiate a solution between the mining communities and MMG Limited within two months. However, two weeks later the miners grew upset over a perceived lack of progress, and thus resumed their strike.

Another truce was reached in September 30. Later, Mining Minister Iván Merino claimed that the unrest at the Las Bambas copper mine was partly caused by the mining company's decision to rely on a dirt road for transportation. Merino claimed that the dirt road fuels tension as it reveals the stark disparity of the wealth extracted from the mine and the living condition of the workers and called for a train line to be built. Merino also noted that tensions were not limited to the Las Bambas copper mine, but that there was tension all over the country.

Later, the protesters warned that if an agreement was not reached by October 5, they would resume the blockade of the road. The leader of Chumbivilcas province accused the Castillo Administration of continuing the same system as previous governments, while the mayor of Haquira denounced the ongoing dialogue as a "joke." Chumbivilca's leaders have demanded a better road, compensation for land use, tax transfers, and jobs for locals. Meanwhile, Cotabambas's leaders called for a new meeting to discuss how to better redistribute copper taxes. Protestors have also criticized the trucks that ply the dirt road every day and spread dust, which ruins their crops. Either community could block the road again, the leaders said.

MMG Limited stated that they respected the right to protest, but that protests should not affect others, such as free movement on roads, or the violation of rule of law. They also claimed that they offered numerous proposals to the protestors, such as "including local businesses in the value chain, activities for the development and agricultural equipment, productive chains, improvement of pastures, zoosanitary campaigns, international exchange programs for young people, implementation of entrepreneurship in community women's organizations, among others." MMG Limited accused the protestors of breaking off dialogue and warned that they soon might have to paralyze their operations "completely" due to the protests.

On October 5, 2021, Peru's government said that it had reached a deal between the protestors and MMG Limited. The company will hire Chumbivilcas residents to provide services to the mine, such as transporting minerals and maintaining key transit roads. Meanwhile, negotiations with Cotabambas are still underway.

Incidentally, also on October 5, 200 indigenous protestors took over a pipeline station owned by Petroperú, Peru's state-owned oil company. Also on the same day, protestors from Espinar Province blocked a key highway of Glencore's Antapaccay copper mine. The Espinar protestors stated that they were protesting against both the company and the government, saying that they demanded the resignation of then Prime Minister Guido Bellido. Coincidentally, then PM Bellido resigned the day afterward. On October 8, the Espinar protestors announced that they reached an agreement to begin negotiations with the Antapaccay mine, thus bringing the protests to a halt.

On October 18, 2021, the Cotabambas protestors announced a 24-hour "preventive strike." On October 19, the Cotabambas protestors announced an indefinite strike, once again blocking the road which Las Bambas copper mine uses. The protestors called for Castillo to commit to continuing the dialogue and for PM Mirtha Vásquez to arrive in the area. The protests quickly spread across Áncash, Loreto and the south of Ayacucho. On October 27, 2021, Vásquez arrived to Cotabambas. She said she would "reestablish dialogue and peace."

On October 28, 2021, the protests ceased once more. The government announced it had reached six agreements, which would see the Las Bambas mine commit to paying mining royalties to local communities starting 2022. While Las Bambas' contract calls for it to pay mining royalties on its profits, the mine hadn't reported any profits, and thus didn't pay mining royalties.

However, later that day, violent protests broke out in Áncash and southern Ayacucho against the Antamina mine. Several offices, including the mining headquarters were set on fire after a confrontation with the police. The Council of Ministers announced that it would send representatives to Ayacucho to negotiate with the protestors. The protests were subsequently halted.

On November 9, 2021, protestors blocked the Las Bambas mine's transport road once again. Victor Limaypuma, the President of the Cotabambas Defense Front, claimed that that the government and the mining company failed to send senior representatives for scheduled talks. Limaypuma stated that the blockade of the Las Bambas mine would last 48 hours. He also claimed that the Las Bambas mine had brought pollution to the area and little economic development.

On November 17, 2021, the state-owned oil company Petroperú announced that it had evacuated one of its oil stations in the Amazon rainforest after the Saramuro indigenous community gave the company a 72-hour ultimatum to leave the facility. Additionally, it was announced that the oil station, which transported oil to the coast, had ceased operations since early October because of the protests. The protestors, who were armed with spears, were backed by the Awajún Río Apaga Native Federation (FENARA) and the Peoples Affected by Oil Activity (PAAP).

On November 20, 2021, Prime Minister Mirtha Vásquez stated that 4 mines in the Ayacucho region would not be allowed any extensions in their operational timelines, and that the mines will be closed as soon as possible under environmental grounds. Business and mining interest groups heavily criticized this decision. Additionally, Chumbivilcas residents once again blocked the key road used by the Las Bambas copper mine on the basis that the mining company had not fulfilled its commitments and asked for renewed dialogue with the government and the mining company.

On November 22, 2021, the Ayacucho Central Struggle Committee (CLCA) backed PM Vásquez, saying that the "environmental mining conflict that we have been dragging on for more than 10 years. In that sense, we believe that the current government, through the premier, has done nothing abnormal, but listened to and attended to the populations affected by mining pollution." The CLCA accused mining pollution of wiping out biodiversity in the Huanca Huanca basin and the Sangonera River basin, and negatively affecting over 50,000 peasants and agricultural producers. The announcement came after criticism of Vásquez for her decision to close down 4 mines in the Ayacucho region.

On November 23, 2021, Chumbivilcas protestors demanded that the Las Bambas copper mine employ local residents for the transportation of mineral concentrate, vans, and maintenance of micro pavement. The protest representative, Víctor Villaack, acknowledged that said demand wasn't part of the October 5 agreement negotiated by the Bellido cabinet, but claimed that the "derisory amounts" offered as payments has bothered local communities. He said that locals are offered $300 per month for van driving and $2,000 per month for the transport of concentrate. Villaack's also brought his lawyer claim that current suppliers receive $3,500,000 per concentrate transport trip and accusing the mining company of trying to discourage local residents from becoming suppliers.

On November 25, 2021, communities in Ayacucho region said they would resume protests if the Castillo Administration reneged on their agreement to close the mines. Previously, Prime Minister Mirtha Vásquez said that no extensions would be given to mines that are approaching their closure date, and that they would be closed as soon as possible. However, Vásquez later softened her tone, saying that mines would be able to seek extension to their operation dates, and that there would be no "unilateral" closures.

On December 3, 2021, MMG Limited's Las Bambas copper mine announced that it would shut down copper production starting mid-December due to the road blockades. Eduardo González Toro, the Minister of Energy and Mines, said that the government had not been informed about the potential shutdown and that it hoped the company and "would continue working for the benefit of (surrounding) communities." MMG executives urged the government to pave the road in the medium term, and to build a railway in the long term. While Castillo has endorsed the train, it's expected to cost $9.2 billion, and would only begin operations in 2028 at the earliest. Prior to MMG Limited's acquisition of the Las Bambas copper mine, there was a plan to build a mineral pipeline. However, Las Bambas head of corporate affairs said "What local families tell us is that a mineral pipeline would negatively affect the area, because all the businesses associated with (copper) transport would cease to exist."

Drug policy

As part of the US-led war on drugs, Peru has historically pursued a coca-eradication policy. During his electoral campaign, Pedro Castillo pledged to expel DEA agents from Peru. In April 2021, under then President Francisco Sagasti, coca eradication operations in the VRAEM were suspended. In September, following Castillo's inauguration, coca eradication was resumed in all areas except the VRAEM, which is the area with the most coca cultivation. Under the Vásquez cabinet, Interior Minister Luis Barranzuela was asked whether he ordered Coca eradication to be suspended in the VRAEM, which he denied. Barranzuela also said that the Interior Ministry has no influence in Devida, the agency in charge of anti-drug policy.

Later, the Free Peru caucus proposed to legalize the commercialization and industrial cultivation of the coca leaf. Currently, coca leaf consumption is allowed for "traditional purposes." The proposed bill would also declare the coca leaf "the natural heritage of the nation." Prime Minister Mirtha Vásquez claimed that coca farmers are "fed up" with the permanent cycle of coca eradication and replantation. Vásquez stated that she would pursue binding agreements with legal coca producers while cracking down on drug trafficking.

On November 19, 2021, the new Interior Minister Avelino Guillén pledged to increase the eradication of coca crops.

Foreign affairs

UNASUR

One of the principal foreign policies for the Castillo's Administration is to strengthen Latin American integration.

United States

Despite increased ties to the Latin American left, the Castillo Administration has maintained cordial, if not friendly, relations with the US. Relations began when the US State Department denied Keiko's claims of electoral fraud in the 2021 Peruvian general election. Afterward, relations were further normalized under former Foreign Minister Héctor Béjar, when both countries agreed to hold bilateral meetings every 6 months. Additionally, the US pledged cooperation in vaccines, and aid for the poorest regions of Peru.

Relations with the US have been maintained after the resignation of Héctor Béjar. Castillo has also renewed Peru's agreement with USAID for another 5 years. This decision has been protested by a congressman from his party, who accused USAID of being an "accomplice in all the coups in Latin America and a spy agency within our homeland."

On October 23, 2021, Castillo gave a speech at the FOLAC 2021, organized by the chambers of commerce of the US and Latin American countries. Castillo stated that "it is a propitious moment to consolidate the strong ties of friendship and cooperation with the United States, we have a new opportunity."

Lima Group

With Castillo taking a more pro-Venezuela stance, many thought that Peru would leave the Lima Group, a consortium of countries with the goal of aiding the Venezuelan opposition. Starting August 6, 2021, Venezuelan and Cuban state media started claiming that Peru had left the Lima Group. While foreign media had announced Peru's exit, there was no word from the Peruvian government, which left many confused. Furthermore, Luis Arce, the President of Bolivia, celebrated Peru's supposed departure from the Lima Group.

However, there was still no word from the Castillo Administration. However, Peru's departure from the Lima Group had been seemingly confirmed by Peru Libre's General Secretary, Vladimir Cerron. As a result, domestic media and Congress was left unsure on whether Peru had left the organization or not. Eventually, members of Congress sent forward a motion to confirm Peru's status in the Lima Group. After a while, Prime Minister Bellido confirmed that Peru had not left the Lima Group, claiming that the issue had not been formally discussed. However, Bellido also mentioned that the Foreign Ministry was evaluating Peru's status in the Lima Group.

As of September 20, 2021, the permanent representative of Peru to the OAS has stated that the Lima Group "does not exist, because it has completed its cycle." Later, the Vice Foreign Minister pointed out "The Lima Group is a mechanism, it is not an international organization, and therefore mechanisms work when they need to work. The Lima Group has not issued any pronouncement since January 5 of this year, not even that belongs to the current management." Other countries have not mentioned the non-existence of the Lima Group.

Venezuela

Despite Castillo having recognized the Venezuelan government as democratic during the electoral campaign, Castillo's Vice Foreign Minister has claimed that Peru has declared that there is no legitimate authority within Venezuela since January 5, 2021. The Vice Foreign Minister has claimed that Peru supports "intra-Venezuelan dialouge" and a negotiated solution to the crisis. While not a recognition of the Maduro government, this represents a shift away from Peru's previous stance of backing the National Assembly, which opposes Maduro.

The next day, then Prime Minister Guido Bellido rejected the Vice Foreign Minister's claims that Peru did not recognize a legitimate authority in Venezuela. Bellido claimed that the Vice Foreign Minister's claim was against the Peruvian government's position, and that President Castillo had a meeting with Venezuelan President Maduro to solve the Venezuelan migrant crisis. Bellido also implied that he was willing to replace the Foreign Ministry if they didn't like the government's stance on Venezuela. However, later that day, the Interior Minister Juan Carrasco claimed that although he respected Bellido's views, he backed the Foreign Ministry's stance regarding Peru's position on Venezuela.

Castillo's meeting with President Maduro wasn't recorded on his official agenda. As such, Foreign Minister Óscar Maúrtua was summoned before Congress to explain on the matter. Maúrtua said that Castillo did not plan to meet with Nicholas Maduro, and that the meeting was brief. Maúrtua further added that Castillo met Maduro during the VI Summit of CELAC, where many Latin American leaders were present. The Foreign Minister stated that under such a multilateral event, spontaneous meetings can occur.

Subsequently, the Free Peru caucus accused Maúrtua of trying to impose his political agenda on the President, and called for Maúrtua's resignation. "The foreign minister remained silent... in the face of the audacity of his Vice Foreign Minister Luis Enrique Chávez to contradict the president in his decision to maintain friendly relations and cooperation with Venezuela and the Maduro government. Therefore, having transgressed the provisions of Article 118, paragraph 11 of the Political Constitution, our caucus demands the resignation of the chancellor and the vice chancellor."

On October 15, 2021, following the appointment of the Vásquez cabinet, Richard Rojas Garcia was appointed as Peru's ambassador to Venezuela. This in effect established official diplomatic relations with Venezuela. Some media outlets have claimed that Rojas is the right-hand man of Vladimir Cerrón. However, soon afterward a judge ruled that Rojas could not leave the country for 6 months, due to his alleged link with members of "Los Dinámicos del Centro."

Afterward, Foreign Minister Óscar Maúrtua claimed that Rojas' appointment as ambassador to Venezuela never took place, "since the corresponding process was not concluded. In this sense, Peru is proceeding to inform the Government of Venezuela that the proposed appointment of Mr. Richard Rojas García is without effect." Subsequently, Free Peru accused Maúrtua of sabotaging Rojas' appointment as ambassador to Venezuela.

China

Castillo has sought to improve relations with China. The Castillo Administration sees China as an essential trade partner, and as a partner for vaccine procurement. China is the main buyer of Peru's copper, a crucial source of the country's tax revenue.

Sahrawi Arab Democratic Republic

The Castillo Administration recognized the Sahrawi Arab Democratic Republic, a partially-recognized state claimed by Morocco. Although the recognition came without forewarning, officially it was due to Castillo's push for a foreign policy based on self-determination and non-intervention. The Congressional opposition has opposed the recognition of the SADR, claiming that it creates geopolitical instability and risks Peru's relations with the Middle East.

Nicaragua

The Castillo Administration refused to recognize the results of the 2021 Nicaraguan general election, saying it did not meet the minimum criteria of free elections. Free Peru's leader Vladimir Cerrón blamed Foreign Minister Óscar Maúrtua for the refusal to recognize Nicaragua's election. Cerrón released a statement saying "Regrettable position adopted by the Ministry of Foreign Affairs - Foreign Ministry of Peru, regarding the elections in Nicaragua, the same position adopted by the reactionary forces to ignore the electoral victory of Pedro Castillo."

Congressional affairs

Question of confidence

The formation of the Bellido cabinet was instantly met opposition, and in the opposition-controlled Congress, there was the risk that Congress would not give trust to the cabinet. Some believed that the Bellido cabinet was a "shock cabinet" with the attempt of baiting Congress into denying confidence twice so that it could be shut down, as it was during the 2019–2020 Peruvian constitutional crisis. A congressman from Free Peru claimed that Congress was attempting to impeach the President, and warned that if trust is denied twice then Congress will be dissolved. While Vice President Dina Boluarte rejected the possibility of dissolving Congress, it nonetheless remained a contentious issue.

During the impeachment attempt against Iber Maraví, then Prime Minister Guido Bellido threatened to use trust to defend Maraví. As a result, Congress passed a law which would reinterpret the question of confidence, that would severely restrict its applicability. Justice Minister Aníbal Torres claimed that this reinterpretation would challenge the constitutional balance of power, and stated that he would challenge the reinterpretation bill via the Constitutional Court. It's worth noting that the makeup of the Constitutional Court is set to be replaced by Congress, as its current term expired in 2019 (the court remained in operation as Congress couldn't agree on successors).

Following the dismissal of the Bellido cabinet, the new Vásquez cabinet hoped to replace Bellido's ultra-confrontational approach to Congress with a more conciliatory approach. Prime Minister Mirtha Vásquez held a meeting with members of Congress to negotiate on the question of trust and the presidential impeachment. Vásquez proposed a new version of the question of trust which she claimed would not cause an imbalance of powers. However, it became clear that Congress would stick to their own bill. Free Peru's ally, Together for Peru, proposed a bill that would dissolve Congress if the President was impeached for moral or physical incapacity. Following that, new parliamentary elections would be held. The bill failed to pass.

On October 22, 2021, the government presented a lawsuit before the Constitutional Court (CT) that Congress' reinterpretation of the question of confidence was unconstitutional. The CT unanimously admitted the case on October 28, 2021. On November 2, 2021, Eloy Espinosa-Saldaña, who was appointed rapporteur of the case, asked Congress to quickly respond to lawsuit. Meanwhile, the Minister of Justice, Aníbal Torres, claimed that if the CT respected its past judgements, it should declare the unconstitutionality of the law that interprets the question of trust.

On November 16, 2021, Congress formalized changes that would allow itself to reject a question of confidence as inadmissible if it's not in line with the restrictions passed by Congress. Said restrictions are currently being challenged in the Constitutional Court.

Commission distributions

Traditionally, the presidency of the prestigious Constitutional Commission went to the ruling party. Despite Free Peru being both the largest party and the ruling party, the Constitutional Commission was given to Popular Force, which is the second largest party in Congress and part of the opposition against Castillo. Popular Force is led by Keiko Fujimori, who was Castillo's opponent during the second round of the 2021 Peruvian general election, and accused Free Peru of conducting electoral fraud.

Due to the large number of teachers within its ranks, Free Peru desired to preside over the Educational Commission. However, the presidency of the Educational Commission was given to Popular Renewal, which is part of the opposition against Castillo. Pedro Castillo went to Congess to request that the presidency of the Educational Commission be reconsidered. However, Congress did not change any positions within the Educational Commission. It is believed that this may have played a part in the formation of the Popular and Magisterial Political Party.

In the end, Free Peru did not get a single commission it wanted. Ollanta Humala, Peru's former Pink tide president, called the distribution of commissions "an abuse by Congress." However, Humala also criticized aspects of Castillo's management.

Electoral regulations

With 46 votes in favor, 50 against, and 28 abstentions, Congress approved the creation of a commission to investigate alleged electoral fraud in the 2021 Peruvian general election Allegations of electoral fraud were denied by the National Office of Electoral Processes, the National Jury of Elections, the OAS, the United States, and the European Union.

Later, Congress green-lit a motion to change the electoral rules for the 2022 Peruvian municipal and regional elections. Because it is prohibited to modify electoral rules when the election is less than a year away, the Constitutional Committee has little time to pass new regulations. Previously, an attempt to suspend open primary elections for the 2022 regional and municipal elections failed, due to it only getting 45 votes in favor.

Campaign finances reports

Many parties failed to report their campaign finances in a timely fashion, leading to suspicion over the use of the funds.

On November 21, 2021, the ONPE sent auditors to supervise the management of party funds. The first parties scheduled to be audited are the Purple Party, Alliance for Progress, We Are Peru, and Popular Force. Later, Go on Country, Free Peru, and Together for Peru will be audited.

Evo Morales declared persona non grata

On August 20, 2021, Congress voted against a proposal to declare the former Bolivian president Evo Morales a persona non grata. However, on November 22, 2021, the Foreign Relations Commission of Congress, led by Popular Force, agreed to declare Evo Morales a persona non grata for "his negative political activism" and "political interference" in Peruvian territory, referring to repeated trips Morales undertook to rally support for Castillo's agenda. The Foreign Relations Commission (FRC) also questioned Morales' protection by state security and use of official vehicles. The FRC's resolution urged authorities to take "necessary actions" to prohibit Morales from entering Peru.

The Free Peru parliamentarian Margot Palacios spoke out against the FRC's resolution, saying that "Only a colonial mentality, narrow, premodern, medieval and discriminatory, can deny entry to Peru to a brother who has done much for the Andean culture, of which Peruvians and Bolivians are part of. For several centuries, we were one state: the Tahuantinsuyo."

Controversies

Influence of Vladimir Cerrón

Vladimir Cerrón is the General Secretary of Free Peru, who represents the Marxist–Leninist faction of the party. Cerrón was previously the governor of Junin, but was convicted for corruption and given a suspended sentence. Cerrón has repeatedly denied such charges, stating that he's a victim of lawfare and political persecution. The indictment prevents Cerrón from running for public office.

During the 2021 Peruvian general election, Castillo distanced himself from Cerrón, saying that Cerrón "will not even be a doorman in any of the institutions of the State." However, Castillo has been accused of appointing government officials and ministers who are close to Cerron. These include the appointment of Waldemar Cerrón, Vladimir's brother, as Free Peru's spokesman in Congress, despite Waldemar being investigated for money laundering.

Cerrón has also been under investigating in Los Dinámicos del Centro, an alleged criminal organization that's investigated for money laundering. The investigations also include Vladimir Cerrón and then Prime Minister Guido Bellido. Cerrón has accused the investigations of being political persecution.

Later, a number of alleged members of Los Dinámicos del Centro escaped from the country. Prime Minister Mirtha Vásquez stated that they have been included in Peru's registry of most wanted fugitives.

La Resistencia

La Resistencia (The Resistance) is a far-right decentralized group that opposes the Castillo Administration. The group has been behind threats of harassment, verbal assaults, and physical attacks on citizens and government officials. La Resistencia has accused their opponents of being terrorists and Senderistas. Following repeated threats against the former supreme prosecutor Avelino Guillén and the journalist Jaime Chincha, the Ministry of the Interior has ordered an investigation into the alleged criminal organization.

On October 7, 2021, approximately ten members of La Resistencia assaulted a car which had journalists inside. The car had stopped due to a red light, which the group took advantage of by repeatedly hitting the car's windows and insulting its passengers. The journalists managed to escape, but the car was battered.

On October 18, 2021, members of La Resistencia interrupted the initial book sale of "Imagine a better Peru... and let's make it happen." by former President Francisco Sagasti and blocked the doorways as to prevent people from leaving. There were shouts against Sagasti, decrying him as a "murderer" and a "terrorist." Previously, Sagasti had gotten backlash from proponents that there was electoral fraud in the 2021 Peruvian general election, due to him repeatedly denying that fraud took place and handing the presidency to Castillo.

On November 8, 2021, the Interior Ministry claimed that groups consisting of ex-military and ex-police personnel are appearing, many of whom being veterans of the war against the Shining Path. Representatives from said groups and other related groups claimed to have pacifist intentions, citing plans for a march and their right to "freely defend themselves and protest."

Business financing of transport strike

Leaked chats showed that a group of 12 businessmen with ties to the SNI (National Society of Industries) pledged to each donate US$1,000 each to support a proposed transport strike being organized against the Castillo Administration. The SNI distanced itself from the controversy, saying that it didn't seek to generate instability, and instead sought dialogue with the government.

Opinion polls

Presidential approval ratings

Pollster/Medium	Date	Approve	Disapprove	Uncertain	Difference
Ipsos Perú/El Comercio	Dec 9-10, 2021	36	58	6	-22
CPI/Panamericana	Dec 7-10, 2021	25.8	62.1	12.1	–36.3
Datum/Perú 21/Gestión	Dec 4-7, 2021	32	59	9	-27
IEP/La República	Nov 22–25, 2021	25	65	10	-40
Ipsos Peru/El Comercio	Nov 11–12, 2021	35	57	8	-22
IEP/La República	Oct 25–28, 2021	35	48	17	-13
Datum/Latina	Oct 23–26, 2021	40	50	10	-10
Datum/Peru 21/Management	Oct 16–19, 2021	40	50	10	-10
Ipsos Perú/El Comercio	Oct 14–15, 2021	42	48	10	-6
IEP/La República	Sep 20–23, 2021	40	42	18	-2
Datum/Peru 21/Management	Sep 12–15, 2021	42	46	12	-4
Ipsos Peru/El Comercio	Sep 9–10, 2021	42	46	12	-4
Datum/Lampadia	Sep 5–7, 2021	41	46	13	-5
CPI	Sep 1–3, 2021	43.5	43.5	13.0	0
IEP/The Republic	Aug 16–19, 2021	38	46	16	-12
Ipsos Peru/El Comercio	Aug 12–13, 2021	38	45	17	-7
CPI/America	Aug 6–8, 2021	40.0	47.7	12.3	-7.7
Datum/Peru 21/Management	Aug 2–4, 2021	39	41	20	-2
Ipsos Peru/El Comercio	Jul 22–23, 2021	52	41	7	+11
IEP/The Republic	Jul 18–21, 2021	53	45	2	+8
Datum/Peru 21/Management	Jul 8–10, 2021	40	35	25	+5
Ipsos Peru/El Comercio	Jun 24–25, 2021	48	47	5	+1
IEP/The Republic	Jun 17–20, 2021	47	49	4	-2

See also

• Anti-Fujimorism