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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

Looting Spreads in Venezuela’s Hardest-Hit Areas After Deadly Earthquakes

Not even the wires were left behind at a small grocery store. Before the ground had even stopped shaking, looting and theft began in the areas hardest hit by the double earthquake that struck Venezuela.

Reports of robberies have multiplied in the coastal state of La Guaira, located near Caracas and now transformed into a landscape of collapsed buildings and debris.

Videos circulating on social media show groups of people removing boxes of household appliances from a damaged store. Other images show similar boxes being carried on top of vehicles and motorcycles.

Social media platforms have also been filled with accusations against police officers and military personnel who allegedly stole from homes and even from victims who died during the disaster.

A branch of a major pharmacy chain was looted, along with supermarkets and other businesses. Some residents have described the situation as “disaster tourism,” while others say the looting reflects hunger and desperation among people who lost everything in a country already facing a prolonged economic crisis.

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“Is it fair that our own people turn against our own people?” said María Esther Bernal, 71, who rented commercial spaces to Chinese merchants, all of which were looted. “They left nothing behind, not even the wallpaper. They even took the cables,” she said.

“Next door, a man died. He was Chinese. People walked over his body while they looted the place. It was a supermarket,” she added.

An AFP journalist witnessed looting in La Guaira since Thursday, following the earthquakes.

Jenifer Mayora, 34, defended some of the actions, saying that “the things people took were because the owners of the stores allowed us to take them.”

However, she criticized the limited response from authorities. “I have been waiting for a mattress so my children can sleep,” she said.

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Residents have expressed anger over what they describe as a slow and insufficient response from authorities after the double earthquake, which has left around 1,450 people dead and tens of thousands missing.

Communities are demanding not only faster rescue operations in La Guaira, but also stronger security measures and urgent assistance with food, water, and medicine.

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International

UN warns Venezuela earthquakes could affect up to 6.76 million people

Up to 6.76 million people could be affected by the devastating earthquakes that struck Venezuela on June 24, according to an assessment released by the International Organization for Migration (IOM), a United Nations agency.

The organization said the projections are based on available population data and damage assessments, and include up to two million people living in Caracas, the country’s capital.

The estimates highlight the potentially massive humanitarian impact of the disaster, the IOM warned.

Entire buildings collapsed in La Guaira, a coastal area north of Caracas, following the powerful twin earthquakes that reached magnitudes of 7.2 and 7.5 on Wednesday.

The national death toll has risen to 920, while rescue teams continue searching for people trapped beneath the rubble in coastal regions and other affected areas.

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UN humanitarian chief Tom Fletcher told AFP on Friday that more than 50,000 people were reported missing.

The IOM also revealed that it worked with Microsoft’s artificial intelligence laboratory on an initial satellite mapping analysis, which showed that 31.5% of buildings in the town of Catia La Mar had suffered damage.

Authorities and international rescue teams continue operations as Venezuela faces one of its largest humanitarian emergencies in recent years.

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International

United Nations Coordinates Relief Efforts as Venezuela Death Toll Rises After Twin Quakes

United Nations Secretary-General António Guterres on Thursday expressed his condolences to the people of Venezuela following the two devastating earthquakes that struck the country and highlighted the ongoing coordination between UN humanitarian teams and interim President Delcy Rodríguez.

Speaking during the UN’s daily press briefing, spokesperson Stéphane Dujarric said Guterres was deeply saddened by the loss of life and widespread destruction caused by the disaster.

“The Secretary-General is deeply distressed by the loss of life and the widespread devastation caused by the earthquakes that struck Venezuela yesterday. He extends his heartfelt condolences to the families of the victims and wishes a speedy recovery to those injured,” Dujarric stated.

Venezuela was struck on Wednesday by two powerful earthquakes measuring 7.2 and 7.5 in magnitude. According to official figures, the disaster has left at least 164 people dead and 971 others injured.

Dujarric noted that preliminary reports indicate significant damage across several states, including the capital, Caracas. Numerous casualties have been reported, while other individuals remain trapped beneath collapsed structures or are still missing.

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“Critical infrastructure has been damaged and essential services have been disrupted,” the spokesperson said.

The United Nations confirmed that its humanitarian team remains in close contact with interim President Delcy Rodríguez and other relevant authorities as emergency operations continue.

To support relief efforts, the UN has established a coordination center in Caracas and is assisting local authorities to ensure that humanitarian aid reaches affected communities as quickly and efficiently as possible.

Guterres also welcomed the expressions of solidarity and offers of assistance from countries around the world that responded following news of the disaster, underscoring the importance of international cooperation in addressing the humanitarian emergency.

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