Trump threatens BRICS with sanctions
Dec. 2, 2024
U.S. president-elect Donald Trump demanded that the emerging economy BRICS group commit to not creating a new currency or back any other currency to replace the U.S. dollar. Several member nations, including Brazil, have discussed creating an alternative currency or using alternate currencies to the dollar for trade. (Guardian)
Trump threatened to impose punitive duties on BRICS imports if they do not comply, reports the Washington Post.
Some market analysts say the threat could backfire, and push the creation of such greenback avoidance agreements, reports Bloomberg. Brazil and China had previously struck deals to settle trade in their local currencies.
Today South Africa’s government insisted there were no plans to create a BRICS currency, blaming "recent misreporting" for spreading a false narrative, reports Deutsche Welle.
More Trump
Trump’s coercion-first strategy towards Latin America appears to pay initial dividends, but “the illusion of short-term results hides the long-term costs of this strategy,” writes James Bosworth in the Latin America Risk Report. “As countries plan across different time frames, they may bow to threats to avoid short-term disaster, but they will begin building resilient alternatives that will make them less vulnerable to that coercion in the medium and long term.”
U.S. oil executives and bond investors are urging Trump to strike a deal with Venezuelan leader Nicolás Maduro: more oil for fewer migrants, reports the Wall Street Journal. “The goal of restoring democracy in Venezuela, a cornerstone of Washington’s carrot-and-stick strategy in recent years, would be less of a priority for now, said people who are promoting what they call a more pragmatic approach.”
Former Brazilian president Jair Bolsonaro hopes to finagle a comeback by leveraging Trump’s predilection for sanctions, reports the Wall Street Journal.
Migration
El País reviews a new bill approved by Chile’s Chamber of Deputies to alter the country's migration law. Not yet approved by the Senate, the bill represents a toughening of the country’s current immigration policy - Americas Migration Brief
“More than 600 Brazilians, including 109 children, have been secretly removed from the UK – on the three largest Home Office deportation charter flights in history – since the Labour government came to power,” reports the Observer.
Mexico
“In their quest to build fentanyl empires, Mexican criminal groups are turning to an unusual talent pool: not hit men or corrupt police officers, but chemistry students studying at Mexican universities,” reports the New York Times.
Argentina
Argentina’s Supreme Court ended its oversight of cleanup operations on the hyper-polluted Riachuelo river that flows between Buenos Aires city and the province of the same name. A reversal that undermines its historic 2008 decision to clean up the area in response to significant health and environmental risks, reports the Guardian.
El Salvador
Women’s rights activists report an increase in attacks ahead of a landmark judgment in an abortion case, which is expected soon, reports the Guardian.
Brazil
Brazil’s jobless rate fell to the lowest level on record — a political victory for President Luiz Inácio Lula da Silva in the midst of market concern about the economy overheating, reports Bloomberg.
Critter Corner
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