In a week filled with significant dialogue at the United Nations General Assembly (UNGA) in New York City, Latin American leaders made headlines with their calls for reform and cooperation. Colombian President Gustavo Petro expressed strong criticism of the global war on drugs, while Argentine President Javier Milei took aim at the U.N. Sustainable Development Goals. Brazilian President Luiz Inácio Lula da Silva, however, captured attention with his impassioned plea for nations of the global south to have a more substantial role in international governance.
Chilean President Gabriel Boric made waves by endorsing former President Michelle Bachelet for the next U.N. secretary-general position, which rotates among global regions, placing Latin America and the Caribbean up next in line.
Amidst the expected rhetoric, UNGA delivered unexpected moments, particularly when U.S. President Donald Trump, in his address, unexpectedly softened his tone towards Lula. In what seemed like a moment of diplomacy, Trump described their interaction as one of “excellent chemistry,” even as he continued to air grievances against Brazil. This unexpected camaraderie came at a time when U.S.-Brazil relations were strained, marked by heavy tariffs on Brazilian goods and sanctions against Brazilian judges stemming from the controversial conviction of former President Jair Bolsonaro, a Trump ally.
Lula’s allies hailed the encounter as a triumph, with one congressional leader stating, “No one in the world resists Lula’s charm.” Lula has a history of fostering positive relationships with leaders across the political spectrum, including former U.S. President George W. Bush during his earlier terms in office. Analysts suggest that Trump’s apparent thaw in relations with Brazil may be influenced by pressures from U.S. business leaders who argue that tariffs are hurting American consumers and inadvertently boosting Lula’s popularity.
As U.S.-Brazilian tensions have escalated, Lula and Brazilian diplomats view upcoming discussions with Trump as critical opportunities to mend fences. The UNGA setting allowed for face-to-face communication, which is often more effective in international diplomacy.
The other major headline emerging from UNGA concerns Argentina, as President Milei seeks U.S. assistance amid economic turmoil. Following a significant defeat in Buenos Aires provincial elections, fears of a further decline in the upcoming midterms prompted a sell-off of the Argentine peso. The central bank struggled to stabilize the currency, spending more than $1 billion in recent weeks to prop up the peso.
In a bid to secure financial support, Milei reached out to his political allies within the Trump administration, and this week, U.S. Treasury Secretary Scott Bessent announced negotiations for a $20 billion swap line with Argentina. Additionally, the U.S. has expressed willingness to purchase dollar bonds and provide new credit as part of efforts to stabilize Argentina’s economy.
Bessent characterized the U.S. intervention as a measure to prevent excessive financial volatility and hinted at potential new direct investments should Argentina’s midterms yield favorable outcomes. Trump further backed Milei’s re-election bid for 2027, underscoring the intertwined nature of U.S. politics and foreign support.
However, the nature of this U.S. financial intervention raises questions about what concessions might be expected from Argentina in return. Political analysts have suggested that the U.S. may seek greater access to Argentina’s critical minerals, increased military cooperation, and restrictions on Chinese technologies. Reports indicate that Washington has also urged Argentina to cancel its existing currency swap agreement with China.
As the U.S. steps up its involvement in Argentina’s economic affairs, the implications of this support will depend on the outcomes of the upcoming midterm elections. Successful intervention could bolster investor confidence in the peso, negating the need for more drastic measures.
In the broader context, the week was marked by discussions on U.S. military actions in Latin America. The U.S. Drug Enforcement Administration has called for direct military strikes against drug traffickers in Mexico, although resistance from some senior officials has stalled such actions. Meanwhile, military strikes against vessels allegedly transporting drugs from Venezuela have sparked significant backlash, particularly within the Community of Latin American and Caribbean States (CELAC), which has sought to present a unified front against external military interventions.
In terms of trade relations, Canada and Mexico are taking significant steps to strengthen their economic ties ahead of a review of the U.S.-Mexico-Canada Agreement (USMCA). Both nations aim to enhance their trade capacity through increased rail and shipping capabilities while seeking to bolster bilateral trade, which has been relatively stagnant in recent years.
As the political landscape shifts across Latin America, the engagement at UNGA illustrates the delicate balance of diplomatic relations and the underlying tensions that continue to shape the region’s future. With Lula and Trump set for further discussions in the coming days, all eyes are on how these interactions will influence not only U.S.-Brazil relations but also the broader dynamics of Latin America amidst ongoing economic challenges.
