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U.S. proposal to tax remittances sparks controversy across Latin America

A proposal from the United States is currently causing a stir throughout Latin America: imposing a tax on remittances sent by migrants to their home countries. The idea of a 5% tax on money transfers comes from the Republicans, the ruling party of U.S. President Donald Trump.

Mexico’s president chose a very symbolic setting to criticize the U.S. proposal, visually emphasizing the sociopolitical aspect of her words. At the inauguration of a hospital in Los Cabos, Claudia Sheinbaum said: “You cannot tax twice those who are already paying taxes.”

Remittances near $160 billion

The annual report from the Migration Department of the Inter-American Development Bank states that in 2024, the total volume of remittances from the U.S. to Latin American and Caribbean countries is around $160.9 billion, an increase of $7.7 billion compared to the previous year. The largest recipients are Mexico ($64.7 billion) and Guatemala ($21.5 billion). This means that in Mexico alone, about $177 million enters daily.

“If we compare remittance income relative to the GDP of countries in the region, in 2024 they represented about 20% of GDP in Guatemala, 27% in Nicaragua, 26% in Honduras, 24% in El Salvador, 20% in Haiti, and 19% in Jamaica,” explained Jesús Alejandro Cervantes González of the Center for Latin American Monetary Studies (CEMLA) in Mexico City, an organization that focuses specifically on the economic importance of remittances.

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The economic and sociopolitical relevance of remittances for recipient countries is enormous: “Remittances ease the budget constraints of millions of recipient households and reduce their poverty levels. They allow for a higher standard of living and help finance expenses in consumer goods, education, health, housing, and in some cases, investments in family businesses,” said Cervantes González. According to CEMLA studies, in Mexico there are 4.5 million households and 9.8 million adults who receive remittances, especially benefiting the poorest rural areas.

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International

Venezuela enforces strict border controls ahead of contested elections

The Venezuelan government has ordered strict controls on the movement of people and the transit of vehicles across its borders—by land, air, and sea—in the lead-up to Sunday’s regional and legislative elections, according to Domingo Hernández Lárez, operational strategic commander of the Bolivarian National Armed Forces (FANB).

The measure will be in effect from 12:01 a.m. local time (4:01 GMT) on Friday until 11:59 p.m. on Monday (3:59 GMT Tuesday), according to an official government gazette shared by Hernández Lárez on X.

The restrictions are aimed at “safeguarding the inviolability of the borders” and “preventing activities by individuals who could pose a threat to national security,” the document states.

The official notice also suspends the sale and distribution of alcoholic beverages during the same period and upholds a nationwide firearms ban that has been in place since 2019. Additionally, all public demonstrations and the transport of heavy machinery will be prohibited from Friday through Monday.

On Wednesday, Defense Minister Vladimir Padrino López announced that over 412,000 FANB personnel have been deployed across the country to safeguard polling stations and election materials for the upcoming vote, which is being rejected by the majority opposition. The opposition claims victory in the disputed July 2024 presidential election.

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Previously, Hernández Lárez had announced via X that military and police forces would also secure “strategic installations,” including facilities operated by the state electric utility Corpoelec.

On Tuesday, the Defense Minister said the armed forces would make “strategic adjustments” in response to what he called “new national and international threats,” just one day after the government claimed to have uncovered a plot to sabotage the elections.

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International

Harvard sues Trump administration after ban on international student enrollment

Harvard University has filed a lawsuit against the Trump administration after the government revoked its authority to enroll international students, escalating a dispute between the White House and one of the most prestigious academic institutions in the United States.

In the complaint filed in Boston, the university described the government’s action as a “brazen violation” of the law.

Just hours later, a judge issued a temporary restraining order blocking the Trump administration’s plan.

On Thursday, the U.S. Department of Homeland Security (DHS) announced it would strip Harvard of access to student visa programs. The Trump administration alleges that Harvard has failed to adequately combat antisemitism and reform its hiring and admissions practices—allegations the university strongly denies.

There are approximately 6,800 international students at Harvard, accounting for more than 27% of its current student body.

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“With the stroke of a pen, the government has attempted to erase a quarter of Harvard’s student population—international students who contribute significantly to the university and its mission,” Harvard argued in the lawsuit.

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International

Guanipa Detained as Maduro government cracks down ahead of controversial elections

Venezuela’s Interior Minister, Diosdado Cabello, announced on Friday (May 23, 2025) the arrest of opposition leader Juan Pablo Guanipa, linking him to an alleged “terrorist network” accused of planning to disrupt Sunday’s legislative and gubernatorial elections.

“He is one of the leaders of this terrorist network,” Cabello said during a state television broadcast. “Four phones were seized, along with a laptop. The entire plan is there,” he added, insisting that a sabotage plot targeting the elections had been uncovered.

Opposition party Primero Justicia (PJ) condemned what it called the “kidnapping” of Guanipa, a former lawmaker and senior party figure. “The dictatorship of Nicolás Maduro has kidnapped Juan Pablo Guanipa, a national leader of Primero Justicia and the entire country,” said the party in a statement. “He has led our party and our nation with integrity and courage.”

Guanipa is now among more than 50 individuals reportedly detained in the lead-up to the regional elections.

His last public appearance was on January 9 of this year, when he joined opposition leader María Corina Machado at a massive protest in Caracas defending the contested victory of opposition candidate Edmundo González Urrutia. The protest took place on the eve of Nicolás Maduro’s controversial inauguration for a third six-year term, following a disputed election certified by the Chavista-controlled National Electoral Council (CNE).

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Cabello also announced the arrest of other individuals allegedly involved in the “conspiracy,” including several foreigners. He aired footage of Guanipa in handcuffs, wearing a bulletproof vest and flanked by masked officers dressed in black.

A post later appeared on Guanipa’s X (formerly Twitter) account, reading: “If you’re reading this, it means I have been kidnapped by Nicolás Maduro’s regime forces.” The post continued: “I don’t know what will happen to me in the coming hours, days, or weeks. But what I do know is that we will win the long battle against the dictatorship.” Shortly afterward, a pre-recorded video was also posted, captioned: “Unjustly imprisoned today, but never defeated.”

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