International
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.
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.
International
Authorities capture CJNG financial chief in international airport operation
A man identified as the main financial operator of the powerful Jalisco New Generation Cartel (CJNG) was arrested Thursday at Mexico City’s international airport, authorities reported.
The individual, named by Mexican media as Óscar Antonio Álvarez, was apprehended during an operation involving the army, navy, National Guard, police, and the attorney general’s office, according to a joint statement.
Álvarez is considered the primary financial operator of a criminal group originating in Jalisco, and the capture took place at Benito Juárez Airport as he arrived on a flight from Barcelona, Spain.
Authorities stated that Álvarez faces charges of organized crime and money laundering, specifically for receiving and transferring illicit funds. His work with the CJNG reportedly included purchasing properties and managing businesses in the tequila and livestock sectors.
According to El Universal, Álvarez was directly under the command of Rubén Oseguera Cervantes, “El Mencho”, the cartel’s top leader, for whom the U.S. offers a $15 million reward.
The CJNG, which operates throughout Mexico and in various parts of the world, was designated earlier this year as a “foreign terrorist organization” by the U.S. government.
Álvarez was handed over to the federal public prosecutor to determine his legal situation, the report added.
International
Jair Bolsonaro sentenced for leading armed criminal plot after 2022 election loss
Former Brazilian President Jair Bolsonaro, 70, has been sentenced for leading an armed criminal organization that attempted to cling to power after losing the 2022 elections to President Luiz Inácio Lula da Silva.
The alleged coup plot, which reportedly included a plan to assassinate Lula, was not carried out due to lack of support from the military leadership.
By a four-to-one vote of the judges overseeing the case, seven co-defendants, including former ministers and military chiefs, were also convicted.
“A criminal armed organization was formed by the defendants, who must be sentenced based on the factual circumstances I consider proven,” said the final judge to cast a vote, Cristiano Zanin.
Bolsonaro, who has been under house arrest since August, did not attend the court hearings, citing health issues.
Reacting on X, Senator Flavio Bolsonaro, the former president’s son, said: “They call this a trial a process whose outcome everyone already knew before it began.”
One of the first international reactions came from the White House. Former U.S. President Donald Trump called the sentence “very surprising,” while Senator Marco Rubio, U.S. Secretary of State, stated that the United States will “respond accordingly” to the “unjust” ruling.
International
Poland invokes NATO Article 4 after russian drone incursion
The violation of Polish airspace by Russian drones on Wednesday triggered the most serious clash between Russia and NATO since the start of the war in Ukraine, prompting Poland to invoke Article 4 of the NATO Treaty, which calls for consultations among allies.
Polish Prime Minister Donald Tusk addressed Parliament on Wednesday, describing an unprecedented “aggression” in which at least 19 Russian drones breached Polish airspace, creating a situation that the Prime Minister described as “the closest to an open conflict since World War II.”
Speaking at the start of an extraordinary Council of Ministers session, Tusk stated that “this is the first time Russian drones have been shot down over the territory of a NATO member state, and that is why all our allies are taking the situation very seriously.”
Although he affirmed that “there is no reason to claim that we are in a state of war,” he labeled the incidents as “a large-scale provocation” and ordered the invocation of NATO’s Article 4 to call for consultations with allied nations.
Tusk also noted on X (formerly Twitter) that he had received “not only expressions of solidarity with Poland but, above all, concrete proposals to support the country’s air defense” during discussions with European leaders throughout the day.
The Polish leader specifically mentioned conversations with the leaders of the United Kingdom, Italy, Germany, and the Netherlands—Keir Starmer, Giorgia Meloni, Friedrich Merz, and Dick Schoof—along with French President Emmanuel Macron, Ukrainian President Volodymyr Zelensky, and NATO Secretary-General Jens Stoltenberg.
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Authorities capture CJNG financial chief in international airport operation
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