Latin America News
LAST UPDATE: May 29, 2025
Tariffs Prompt Mexican Companies to Export Via USMCA, Central Bank Says
Mexican companies are increasingly utilizing the USMCA framework to export goods to the U.S., aiming to avoid new tariffs imposed by the Trump administration.
Insight
The shift towards leveraging USMCA provisions indicates Mexican businesses’ adaptability in response to changing trade policies. This strategic move helps mitigate the impact of tariffs, ensuring continued access to key markets. It also highlights the significance of trade agreements in providing stability and predictability for international commerce.
Argentina raises $1bn in international bond auction in boost for Javier Milei
Argentina successfully raised $1 billion through an international bond auction, signaling renewed investor confidence in President Javier Milei’s economic reforms. This marks the country’s first reentry into global markets since a 2020 debt restructuring.
Insight
The successful bond issuance reflects growing investor optimism towards Milei’s economic agenda, including deficit reduction and capital control relaxation. The bond’s structure—peso-denominated but dollar-sold—allows reserve accumulation without expanding the monetary base, aligning with anti-inflation goals. However, concerns persist about the sustainability of these reforms, especially with upcoming elections that could reverse policy changes enacted via executive orders. The move may help lower Argentina’s country risk and further enhance investor confidence.
