Latin America News
LAST UPDATE: June 26, 2025
Brazil’s Congress blocks tax decree in fiscal blow to Lula
Brazil’s Congress overturned President Lula’s decree to raise the financial transactions (IOF) tax on credit, foreign currency, and private pension operations—originally designed to raise BRL 61.5 bn through 2026. The rejection highlights Lula’s dwindling coalition support and hampers his fiscal agenda.
Insight
The legislative rollback underscores Lula’s fragile political footing and Congress’s resistance to revenue‑raising measures without corresponding cost controls. The administration may resort to court appeals or alternative financing, but its fiscal credibility has taken a hit.
US accuses three Mexican financial firms of aiding fentanyl trafficking
On June 25, the US Treasury’s Financial Crimes Enforcement Network (FinCEN) labeled CIBanco, Intercam Banco, and Vector Casa de Bolsa as “primary money laundering concerns” under the Fentanyl Sanctions Act, blocking US dealings with them. The firms allegedly helped cartels like CJNG and Sinaloa procure fentanyl precursor chemicals (reuters.com).
Insight
This marks a sharpened US strategy targeting financial facilitators of the opioid crisis, aiming to disrupt cross-border funding channels for cartels. The designation underscores the expanding use of economic sanctions in drug enforcement.
Canada’s youth job market slumps most among major economies
Youth unemployment (ages 15–24) in Canada rose by 3.6 percentage points over the past two years—the largest increase across the 25 largest OECD economies, surpassing the US, UK, and Australia .
Insight
The sharper deterioration in youth employment reveals structural weaknesses in Canada’s labor market entry points, risking longer-term scarring and potential talent drain if job creation fails to rebound.
