Brazil & Southern Cone - February 2026

This February edition of the Latin American Regional Report: Brazil & Southern Cone begins with an analysis of the possible obstacles for the free trade agreement between the European Union (EU) and the Mercosur regional trade bloc. After more than two decades of negotiations, the deal was finally signed in January by European and South American leaders at a ceremony in Paraguay, but there is still significant opposition to the deal as it enters the final stretch toward ratification. Indeed, less than a week after the deal was signed in Asunción, legislators in the European Parliament petitioned the European Court of Justice (ECJ) to review the legality of the deal.

The next piece focuses on Chile and a significant ministerial appointment announced by President-elect José Antonio Kast, the key position of security minister, which will be filled by public prosecutor Trinidad Steinert. Having served as the regional prosecutor of Tarapacá, she has experience in cases involving members of the Venezuelan criminal organisation Tren de Aragua, which is particularly active in the region. Moving to another article about Kast’s ministerial picks, the next piece look at his controversial decision to appoint one minister, a businessman named Daniel Mas, to serve as the minister for both mining and the economy. Mining industry leaders have expressed concerns that their sector, a major contributor to the national economy, might not be getting sufficient attention and respect.

We then consider the concerns of environmentalists over Chile’s latest wildfire season. The Chilean branch of international environmental NGO Greenpeace has expressed regret over how fires have become normalised and warns that forest fire seasons are becoming more intense. Political leaders such as the outgoing left-wing President Gabriel Boric and incoming right-wing President-elect Kast have signalled intentions to work together on relief and reconstruction efforts, but Greenpeace has emphasised the need for new fire prevention legislation.

Moving onto Brazil, the following article analyses the decision by President Luiz Inácio Lula da Silva to appoint Wellington César Lima e Silva, a former public prosecutor from the state of Bahia, as the new justice minister. Given that opinion polls rank crime as among the top public concerns, the minister is expected to face heavy scrutiny in the months ahead of the 2026 elections, in which Lula is running for re-election. The final piece in this edition looks at the Lula administration’s efforts to court international investment for projects to extract and process the country’s vast reserves of critical minerals. Brazilian companies have already been ramping up production, and the government is planning to draw up a new industrial development plan for rare earths.