Brazil & Southern Cone - May 2026

President Javier Milei’s deregulation drive in Argentina has reached many aspects of the Argentine economy, even the peaks of the Andes mountains, with congress approving legislation that eases environmental regulations for mining companies operating in glacial areas that had been hitherto protected as freshwater reserves. This May edition of the Latin American Regional Report: Brazil & Southern Cone begins with an analysis of the Milei administration’s efforts to attract more investment in the mining sector, which has involved reforms to the national glacier protection law, a controversial move which has been criticised by scientists and environmental groups.

President Javier Milei enjoyed a major victory when a US appeals court backed Argentina in a long-running legal dispute surrounding minority shareholder claims related to the nationalisation of oil company YPF in 2012. The ruling saves the Argentine government from having to pay punitive damages and helps to pave the way for its return to international capital markets, as the next piece explains.

Moving to Brazil, the following article looks at the long-running demands of indigenous movements and their pressure on President Luiz Inácio Lula da Silva to deliver on his promises to support indigenous peoples. However, despite the frustrations of activists with the government, indigenous leaders have still declared their support for Lula’s re-election bid in the October presidential race, albeit with less enthusiasm compared to the 2022 election. The next piece considers the challenges facing Brazil’s social security agency (INSS), especially following a massive corruption scandal that came to light last year.

We then look at Chile, where President José Antonio Kast continued the tradition of his predecessors of choosing Buenos Aires as the destination for his first international visit after taking office. This piece analyses his meeting with President Javier Milei, with the two right-wing leaders affirming their commitment to boosting cooperation in areas such as trade, investment, and mining, as well as migration and security. Still focusing on Chile, the next article analyses a new security initiative from the Kast government known as the ‘Escuelas Protegidas’ plan, which aims to reduce the risk of violent attacks in schools.

The final article in this edition analyses a key cabinet change in the government of Paraguay, with President Santiago Peña appointing a new minister of economy and finance, Oscar Lovera. This comes amid signs that Peña could pivot away from austerity and ramp up public spending.