The Latin American Report # 464
Paraguay
The Paraguayan political class, even within the ruling Colorado Party, blames the alleged alignment of President Santiago Peña with the Trump administration for the withdrawal of support for the candidacy of Foreign Minister Rubén Ramírez to assume the post of Secretary General of the OAS. Uruguayan Luis Almagro currently holds the office, with a controversial passage through the old and increasingly anodyne organization. The right says that Almagro is still a man of the left, and the left excommunicated him for assuming Washington's rhetoric and operating against important assets such as Nicolás Maduro, Daniel Ortega, and Evo Morales. He was also accused of favoring a female employee with whom he had a romantic relationship. Costa Rica, Ecuador, and the Dominican Republic first supported the candidacy of the Paraguayan Ramirez but now are backing the Surinamese Foreign Minister Albert Ramdin. Peña says that this is an “abrupt and inexplicable” turn that ignores their initial commitment.
According to a congressman belonging to a wing—within the Colorado Party— opposed to that of Peña, the links of the López Palace with the White House are a probable cause in the change of position, understanding the three nations referred to as governed by “progressive” forces. I don't think so. First, I don't see Peña as a figure so attached or linked to the Trump administration, just as I don't think those three governments are “progressive”, much less that they are not spinning in the orbit of red-tinged Pennsylvania Avenue. Even more so than Peña himself, who made a fool of himself traveling to Washington in January. In my opinion, the change obeys negotiations and straddles typical of this type of processes, of a “natural” adjustment that contributes to favor the candidacy of Paramaribo. In that sense, the reasons given by an opposition senator who sees Paraguay's negative profile—due to the high levels of corruption and drug trafficking—as the cause of the diplomatic turnaround seem more sensible.
#MesaConEVP
— ABC TV Paraguay (@ABCTVpy) March 5, 2025
Para el senador Eduardo Nakayama, el fallido viaje de Santiago Peña a la asunción al mando de Donald Trump afectó considerablemente a la candidatura del canciller Rubén Ramírez Lezcano a la presidencia de la OEA.
🔴EN VIVO: https://t.co/wMJIVIRFec pic.twitter.com/n76wZe2ZCf
Tariffs
As we had advanced, Trump considerably relaxed the activation of his tariff policy towards Mexico and Canada. At first, it seemed that only the Aztecs were partially spared, but finally, the northernmost country in this hemisphere also benefited. The moratorium applies to products covered by the USMCA, which in the case of Mexico represents 50% of trade and for the Canadians 38%. So, Trump continues to agitate the markets with his back-and-forth, even if it is clear that he will end up cooling the environment. In any case, despite the "pause", Canada seems to be ready for the fight and will continue to enforce its US$21 billion-worth initial retaliatory tariffs, in a stance that Trump presents as a self-serving use of the dispute to rebrand Justin Trudeau. Yet from Sussex Drive, Canadians paused a second, US$87 billion-worth round of tariffs designed to respond to the U.S. ones.
Ontario Premier Doug Ford announced that starting Monday, Canada's most populous province will apply 25% tariffs on electricity exports to Minnesota, New York, and Michigan, and he says he will not let up until the threat is completely lifted. In contrast, relations with Mexico appear calmer and clearer. Trump spoke with extremely positive rhetoric—for his usually confrontational style—about his Thursday conversation with President Claudia Sheinbaum, acknowledging that Mexicans have worked hard. “I presented to him (Trump) the results we have had in this month. Results in relation particularly to the decrease in the crossing of fentanyl from Mexico to the United States,” said the Aztec leader. We had commented here that the Latin American country was acting proactively enough to gain credit with the owner of the Resolute desk. But surely the clouds have not cleared. “Any good news is welcome, but by no means can it be said that the threat has passed,” says a businessman from Tijuana.
“Trump changes course and delays some #tariffs on Mexico and #Canada 🇨🇦.” https://t.co/aE0dq7OgkI
— David South (@DSChallenges) March 6, 2025
New Senate bill seeks to tackle the flow of fentanyl into the US from China and Mexico https://t.co/rG4Qk1Fz3M
— Daily Press (@Daily_Press) March 6, 2025
Venezuela-related
Citgo Petroleum's profit plummeted to $305 mln in 2024 https://t.co/72Otre5uJ2
— Reuters Energy and Commodities (@ReutersCommods) March 6, 2025
Ecuador
BREAKING: There are reports of at least nine dead and three wounded in a confrontation between two factions of the criminal gang called “Los Tiguerones” this Thursday in the port city of Guayaquil, Guayas, which in this report we usually present as the capital of crime in Ecuador. In social media, some accounts talk of 12 dead in total, counting three other murders in a condominium.
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