The Latin American Report # 563

Argentine retirees have returned to the streets as they have been doing every Wednesday for months, now more outraged and angered following Milei's veto of key legislation aimed to slightly increase their meager incomes. This is part of a broad fight against a harsh austerity policy from which the vulnerable tend to emerge even weaker, including threats to their physical integrity and stigmatization.

"We're here to fight for the many rights this government has taken from us. This government is a monster," a retiree nearing 70 told Spanish news agency EFE. He was among many protesters who gathered outside Congress, where they faced repression from security forces. EFE documented the case of a 69-year-old woman who was pepper-sprayed and fainted. "I'm tired of them beating retirees. It's forbidden to hit a child, a retiree, or a disabled person. A child is defenseless. And a retiree is like a child," she declared.

Over 63% of retirees in Argentina receive the minimum pension, currently valued at $233. Even adding the $52 from a 3-year-old supplemental bonus, they remain at the poverty line threshold (approximately $270). The situation worsens considering age-related expenses, placing the minimum required income for this group at around $890. "This government is leaving us with nothing. Everyone is to blame, and the Argentine people more so because we aren't united," stated the pepper-spray victim.

Milei's response is that this Way of the Cross is necessary to make "Argentina Great Again", also blaming previous governments. This is an easy stance from his comfortable Olivos residence, but where or when does the Argentine leader begin bearing greater responsibility for these seniors' harsh reality? It remains uncertain if the people backing the pension increment in Congress have sufficient political muscle to override the presidential veto. I will continue monitoring this political development, where real-power interests can swiftly shift electoral loyalties.

But the problem is bigger than that

Beyond retirees, the largest industrial association in the Latin America's third-largest economy is also sounding alarms despite acknowledging Milei's macroeconomic successes. Ahead of October's congressional elections (a de facto referendum on his administration), the Argentine Industrial Union board expressed concern over activity levels, stressing the "importance of generating credit lines to sustain production and employment." Job losses pose a major challenge: according to union data cited by EFE, an average of 1,500 jobs were lost monthly last quarter, totaling 37,000 jobs lost over two years—a period during which Milei has mostly governed.

Brazil

South America's coffee giants don't see the Chinese market as an alternative capable of absorbing export volumes traditionally destined for the US, where Brazilian supply meets 30% of demand. Following the Chinese embassy in Brasília's announcement authorizing 180 local exporters to operate in China, Brazil's Coffee Exporters Council urged caution. "We cannot downplay the North American market, our main buyer... There's an interdependence between the US and Brazil," it stated. The association hopes ongoing negotiations succeed to include coffee (where Brazil is the world's top producer/exporter) on the list of products exempt from the 50% cumulative tariff imposed by Trump. This tariff punishes the country for the Supreme Court case against his ally Jair Bolsonaro, accused of coup-plotting.

More drug seizures

Drug seizure reports remain frequent in the region. Dominican authorities announced Tuesday the confiscation of about 137 kg of liquid cocaine packaged in 47,000 plastic soda and juice bottles destined for Spain—reportedly the country's largest seizure of this kind per the National Drug Control Directorate. Meanwhile, Colombia's Highway Police reported seizing over one ton of marijuana from a truck abandoned by its driver during an inspection stop on the Andalucía-Cerritos road (Valle del Cauca department). Hours earlier, authorities seized 300 kg of marijuana in Nariño (a department bordering turbulent Ecuador), and recently reported seizing 1.3 tons of the drug in Cauca department stored in tubes used by the oil industry.

It is not over

And this is all for today's report.

Posted Using INLEO