Latin American News Roundup July 25
As specialist logistics service providers to and from the region, Envío has summarised a few recent items of Latin American news from the month of July.
Brazil – Tensions With US Erupt
Following on from our earlier article this month, US officials have now announced sanctions on Brazilian Supreme Court judge Alexandre de Moraes, accusing him of authorising arbitrary detentions and suppressing free speech. Moraes has been investigating allegations that former President Bolsonaro and his allies plotted a coup after the 2022 election. Following the sanctions, President Trump signed an executive order for a 50% tariff increase on Brazil.
Ecuador – IMF Fund Facility Extended
The IMF completed its second review of Ecuador’s Extended Fund Facility, approving an increase of $1 billion, raising the total program access to $5 billion. Ecuador can immediately access $600 million even though the country’s foreign dollar debt rose. Ecuador’s economy ministry praised the approval, citing it as a reflection of efforts to address challenges like insecurity and drought.
Mexico – Customs Systems In Need Of Modernisation
A recent congress for the Federation of Customs Agents Associations of the Mexican Republic highlighted the urgent need to modernise Mexico’s customs systems. While recent growth in logistics and near-shoring has highlighted the need to invest in port infrastructure, customs processes had not received the same attention until now. A study showed inefficiencies in legislation and digital systems and related crime, with smuggling becoming a major challenge. Efforts to combat fraud need to include new technology, digital traceability, and AI, with the conclusion being that a joint effort between public and private sectors is critical for success.
Panama – Dispute Over Port Contract
Panama’s controller general has filed a lawsuit with the Supreme Court challenging the constitutionality of a contract allowing a local firm linked to Hong Kong’s CK Hutchison to operate Balboa and Cristobal ports. The lawsuit could disrupt a deal for MSC and a US consortium to purchase CK Hutchison’s global port business, which includes the two ports near the Panama Canal.
