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Regional Summary

All the President’s Levers Left or right, civilian or ex-military, Latin America’s biggest economies this week reached for the same tool: direct presidential control. Leaders set prices by decree, filled posts with loyalists, and treated courts and companies as extensions of the executive branch. They see checks on power as roadblocks, not safeguards. Brazil shows this most clearly. Luiz Inácio Lula da Silva, the president, called routine fuel-price adjustments “stupidity and banditry” and threatened to cancel gas auctions—declaring that he sets pump prices. Petrobras is a listed company with minority shareholders and rules rebuilt after the Lava Jato scandals. Mr Lula treats it as a ministry. The numbers explain his anger: polls show a dead heat with Flávio Bolsonaro in 2026, and 17 ministers may resign to campaign. A president who cannot afford rising diesel costs before an election will bend company rules to fit the political calendar. The Supreme Court faces its own crisis, with Mr Lula’s nominee blocked and two sitting justices under corruption scrutiny. The institution meant to check the executive can barely govern itself. José Antonio Kast, Chile’s president, is building a different kind of control—military rather than partisan, but control all the same. Retired officers and police now hold intelligence, defence and divisional posts at levels unseen since democracy returned. Chilean pilots refuelling American F-35s matters less as a signal to Washington than as proof that the armed forces are back inside the state. Mr Kast’s approval rating has slid to 42%, hurt by his decision to sack the head of the National Women’s Service while she undergoes cancer treatment—a blunder that united his own coalition against him. His response to fuel-price anger was a $225 million subsidy package: different in ideology from Mr Lula’s Petrobras intervention, same in approach. Record profits at Codelco, the state copper company, give him breathing room, but his quiet cancellation of a promised international audit shows that accountability is optional when inconvenient. In Mexico, the central bank’s 3-2 vote to cut rates despite 4.63% inflation reveals a board that picked growth over its mandate, knowing that Pemex owes American firms more than $2.5 billion on the eve of the United States-Mexico-Canada Agreement trade review. Claudia Sheinbaum, the president, reshuffled six cabinet posts in one week and placed a North America specialist in the foreign ministry after her minister’s medical departure—smooth, but a reminder that Mexican continuity depends on one person’s choices. That her security secretary, Omar García Harfuch, is now sold on towels and blankets as “Mexico’s Batman” is absurd, but the cult of the capable strongman is never just absurd: it is where presidential power takes root. In Canada, Mark Carney’s whispered boast that he could “outlast” a mercury-poisoned Indigenous protester was a small cruelty that showed something bigger—the annoyance of a leader who sees dissent as a scheduling problem, not a signal. Mr Lula governs from the left, Mr Kast from the right, Ms Sheinbaum from a populist centre and Mr Carney from a technocratic liberal tradition. What they share is the urge to control rather than accommodate opposition—to set prices by order, appoint allies over objections, cut rates against evidence, and treat institutions as tools of the executive rather than brakes on it. Each decision makes sense alone; together they show a hemisphere where the machinery of restraint still runs, but no longer bites.

Country Summaries


Brazil flag Brazil

Up to 17 Brazilian ministers are preparing to quit their jobs to run for office as polling shows the 2026 presidential race in a dead heat. Surveys put Lula and Flávio Bolsonaro virtually tied. Paraná Pesquisas shows Lula ahead 41.3% to 37.8% in the first round, but Mr Bolsonaro leading 45.2% to 44.1% in a runoff. Lula confirmed Geraldo Alckmin as his running mate while technical staff prepare to take over key government posts. The Workers’ Party (PT) has gone on the attack, launching television campaigns against Mr Bolsonaro while privately discussing alternatives to Lula’s candidacy. The party admits it could lose and is preparing backup plans. Lula faces pressure elsewhere. He erupted at Petrobras, the state oil company, over fuel price rises, calling some decisions “stupidity and banditry” and threatening to cancel gas auctions. The confrontation shows direct presidential control over corporate pricing as diesel costs climb. The Supreme Court faces a credibility crisis. Lula’s nominee Jorge Messias meets resistance from Davi Alcolumbre, the Senate president, who refuses to support his appointment. Justices Alexandre de Moraes and Dias Toffoli face scrutiny over connections to the Master Bank corruption case. Lula plans to promote the Mercosur-EU trade agreement during trips to Spain and Germany, including the Hannover technology fair. He will push the deal with supportive European partners.
Lula criticizes Petrobras over fuel pricing and threatens to cancel auctions
March 31 – April 05, 2026

Chile flag Chile

Chilean pilots refueled American F-35 fighters in flight this week, the first time a South American air force has refueled fifth-generation aircraft. The milestone shows how José Antonio Kast is reshaping Chile’s security ties in his first month as president. His government has appointed retired military and police officers to positions across ministries and agencies, the biggest integration of former uniformed personnel since the return to democracy. The appointments include the intelligence chief, defense subsecretaries, and division heads. While he deepens military cooperation with Washington, Mr Kast made his first foreign trip to meet Javier Milei in Argentina. The visit was complicated by the failed capture of Chilean fugitive Galvarino Apablaza, creating diplomatic tensions. Mr Kast brought leaders from the Independent Democratic Union (UDI) to press for faster extradition and emphasized shared fights against organized crime and drug trafficking. The president faces political pressure. His approval rating fell to 42% in the Criteria poll, the second monthly drop from a peak of 47%. Disapproval now stands at 46%. The decline follows controversial decisions that drew criticism even from allies. The most damaging was requesting the resignation of Priscilla Carrasco, the director of the National Women’s Service, who is receiving treatment for breast cancer. Opposition politicians and Chile Vamos leaders, including Evelyn Matthei and Karla Rubilar, condemned the decision as inhumane. The controversy highlighted broader coalition tensions, with the UDI proposing to dissolve Chile Vamos and create a single government coalition. But the Republican Party rejected the idea, and National Renewal (RN) defended its right to criticize the government while supporting it. Mr Kast has responded to pressure with relief measures. After fuel price increases sparked public anger, the government announced $225 million in subsidies for poor families, including free gas cylinders and fishing bonuses. The measures aim to help 7.5 million households while preserving market prices. Business successes provide some political cover. State copper giant Codelco announced record profits of $2.42 billion for 2025, a 909% increase driven largely by lithium operations. The company contributed $1.78 billion to state coffers, validating the resource strategy inherited from Gabriel Boric. But the government has also abandoned promises. Mr Kast cancelled plans for an international audit of the previous administration, citing budget constraints. Critics called it the first major broken promise. The government will now audit itself instead.

Canada flag Canada

Mark Carney, the prime minister, told a mercury-poisoned Indigenous protester “I can outlast her” during a housing announcement in Toronto, creating the biggest political crisis of his tenure. Chrissy Isaacs, a woman from Grassy Narrows suffering from mercury poisoning, had disrupted the event when Mr Carney made the comment. First Nations chiefs and Conservative MPs are demanding an in-person apology, while his office claims he could not hear what the protesters were saying—Indigenous leaders dispute this defence. The controversy erupted as Canada’s opposition parties undergo major shifts. Avi Lewis won the federal New Democratic Party (NDP) leadership with 56% of first-ballot votes, promising to move the party further left with a stance against oil expansion, higher wealth taxes, and free university tuition. But he faced pushback from Alberta and Saskatchewan NDP leaders, who called his oil and gas position “ideological and unrealistic,” creating fractures between regions. Mr Carney has also shifted Canada’s international position. He called Israel’s invasion of Lebanon “illegal” and a violation of sovereignty, using stronger language than his government had employed before. But talks between Ottawa and the provinces remain strained: he and Danielle Smith, the Alberta premier, missed their April 1 deadline for carbon pricing agreements and carbon capture deals under their November agreement, though talks continue. The Bank of Canada held its policy rate at 2.25% for the sixth straight meeting, citing oil price volatility from the Iran war. Central bankers debated whether higher energy prices could push up inflation expectations but decided they could “look through” immediate effects. Mr Carney and Doug Ford, the Ontario premier, announced $8.8 billion in funding over ten years to help municipalities cut development charges by 50% for three years, potentially reducing new home costs by up to $200,000.
Up to 10 MPs reportedly in talks to cross floor to Liberals
April 03, 2026

Mexico flag Mexico

Mexico’s central bank cut interest rates this week even as inflation climbed to 4.63%, choosing to support a weakening economy over price stability in a split 3-2 vote that divided the board. The central bank (Banxico) lowered its benchmark rate by 25 basis points to 6.75%, with Victoria Rodríguez Ceja, the governor, saying they are “close to ending the adjustment period.” But private analysts are not convinced, raising their inflation forecasts for 2026 to 4.21% while cutting growth estimates to just 1.49%. The decision signals that the bank sees economic weakness as the bigger threat than rising prices. The pressure shows elsewhere. The Trump administration reported that the state oil company Pemex owes more than $2.5 billion to American energy service providers — about 10% of its total supplier debt. The debt has piled up despite payment plans put in place by Claudia Sheinbaum’s government last year, and the timing is awkward: it comes as Mexico prepares for the United States-Mexico-Canada Agreement (USMCA) trade review. The government handled a smooth transition when Juan Ramón de la Fuente, the foreign minister, stepped down for health reasons after spinal surgery. Ms Sheinbaum appointed Roberto Velasco Álvarez, the ministry’s North America chief, as his replacement. The choice of Mr Velasco — a specialist in US-Mexico relations — signals continuity during the trade talks ahead. Omar García Harfuch, the security secretary, has become an unlikely pop culture phenomenon. Towels, blankets and other merchandise bearing his image have become bestsellers, with social media influencers promoting the “Mexico’s Batman” brand. The grassroots appeal could matter for the 2030 presidential succession, where Mr García Harfuch is seen as a potential candidate. Ms Sheinbaum announced changes to six cabinet positions this week and unveiled a plan to provide free school supplies and uniforms to all primary school students starting in August 2026. The moves consolidate her control of the administration while advancing the Fourth Transformation’s social agenda.
Mexico rejects UN report on forced disappearances; committee requests case be elevated to General Assembly
April 02, 2026