Brazil & Southern Cone - March 2026

Argentina’s President Javier Milei scored one of his biggest victories yet when congress approved his sweeping labour reform in late February, making it cheaper and easier to hire and fire workers by cutting employee benefits, reducing employer obligations, and limiting the power of unions. This March edition of the Latin American Regional Report: Brazil & Southern Cone begins with an analysis of the labour reform. Supporters believe that it will attract foreign investment, boost productivity, and limit labour lawsuits, while detractors argue that fundamental workers’ rights are being undermined, and any potential benefits will likely boost corporate balance sheets rather than monthly pay checks.

Moving on to neighbouring Brazil, the next piece analyses the annual crime data for 2025 which show homicides dropping to their lowest levels in the past decade. However, opinion surveys continue to show that crime remains among the top public concerns.

The following two articles look at various rallying cries that are expected to form part of the campaign rhetoric of President Luiz Inácio Lula da Silva, who plans to run for re-election in Brazil’s presidential race in October. The first piece concerns Lula’s efforts to signal his government’s commitment to addressing the country’s rising levels of femicides, while the second piece looks at his pledge to reduce the working week. An end to the so-called ‘escala 6x1’, the norm of working six days a week, has been a long-running demand among the Brazilian left, and President Lula appears to be echoing these calls in an effort to galvanise his left-wing supporters ahead of the election this year.

We then focus on the economy of Uruguay, with the next article considering how President Yamandú Orsi has fared in his first year in office. Since Orsi’s inauguration in March 2025, Uruguay’s economy has enjoyed some favourable tailwinds but continues to face challenges such as rising debt and a slowdown in growth. The following piece looks at Uruguay’s relations with China, its largest trade partner. Orsi made his first state visit to China in February, with the trip affirming the continuation of a diplomatic norm in Uruguay, which has maintained smooth relations with Beijing for decades.

The final article in this edition looks at the economy of Paraguay, where the government of President Santiago Peña has been pushing ahead with a reform agenda that tackles some of the country’s most persistent structural development challenges. Paraguay’s encouraging growth prospects have also earned the praise of international institutions such as the International Monetary Fund (IMF).