Latin

EU clinches new trade deal with Mexico to bolster its foothold in Latin America

European Commission President Ursula von der Leyen and European Council President António Costa signed on Friday a revamped trade deal with Mexico as part of the EU’s efforts to expand its influence in Latin America, shortly after the Mercosur pact entered into force.


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The deal was signed at an EU–Mexico summit in Mexico, with von der Leyen and Costa joined by the country’s President Claudia Sheinbaum, amid rising geopolitical tensions and shifting global alliances following the return of US president to the White House.

The economic partnership between the two medium-sized powers reflects efforts on both sides to reduce their dependence on the US — the EU’s and Mexico’s largest trading partner—and on China, for which Mexico has become a hub for electric vehicle production.

“The EU and Mexico are committed to a close strategic partnership,” von der Leyen said, adding: “Today’s modernised Agreements set out our shared vision of the future and will deliver many benefits for both sides.”

The EU–Mexico trade deal strengthens the EU’s diversification strategy by updating a 20-year-old agreement that had already eliminated tariff barriers on bilateral trade.

Under the new deal, the EU will access new markets for products, such as agri-food (pork, dairy, cereals, fruit and pasta), pharmaceuticals and machinery.

EU tightens trade ties in Latin America

Mexico is the EU’s second-largest trading partner in Latin America and the EU is Mexico’s second-largest export market. Trade between both sides reached €86.8 billion in goods in 2025, alongside €29.7 billion in services in 2024.

The figures remain far smaller than Mexico’s trade with its neighbour, the US, which exceeded $900 billion in goods and services in 2024. But the deal comes as Mexico faces mounting pressure from a more protectionist White House.

For its part, the EU has been grappling with repeated tariff threats from Trump despite a trade deal clinched in 2025.

“At a time of growing global uncertainty, the EU and Mexico are choosing openness, partnership and ambition,” EU trade Commissioner Maroš Šefčovič, who was also in Mexico City, said. He pointed out that more than 43,000 European companies export to Mexico, while over 11,000 EU companies operate in the country.

On agriculture, the pact will open up new markets for Mexican products such as coffee, fruit, chocolate and agave syrup.

A total of 568 European and 26 Mexican geographical indications will also be protected, alongside the opening of public procurement markets, according to the Commission.

With this new deal, the EU also wants to signal its strengthened presence in Latin America, where China has expanded its influence.

“97% of the GDP of Latin America and the Caribbean will be covered by sophisticated preferential agreements with the European Union,” a senior EU official said, adding: “There is no other region in the world that has such a dense and connected network of agreements.”

The EU has already built new trade ties with Argentina, Brazil, Paraguay and Uruguay through the Mercosur trade agreement, which provisionally entered into force on 1 May and liberalises trade flows between the EU and those countries.

However, its signing has faced strong opposition from EU farmers, who fear unfair competition from Latin American imports, and ratification was suspended after MEPs challenged the agreement before the EU Court of Justice.

Brussels argues the Mexico agreement should avoid the backlash faced by Mercosur because sensitive agricultural imports remain capped through tariff quotas.

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Latin American nationals deported by the U.S. to Congo face an uncertain future

It’s an existence that Congo’s president has described as “living the Congolese dream.” For the 15 Latin Americans deported to the African nation under the Trump administration’s widely criticized crackdown on migrants, it feels more like a nightmare.

The Associated Press spoke with one, a 29-year old Colombian woman who confirmed what people deported to other African nations have described: A shackled deportation despite a U.S. immigration judge’s protection order. Confinement in a hotel with supervised outings.

And an impossible choice: Return to a home country with the risk of persecution or stay in Congo, a country the Colombian woman had never heard of before she arrived.

“They treat us like we’re children,” she said as their three-month Congolese visas near an end, with no plan in sight.

“What would one do in a completely unknown place, without a place to live and without knowing what to do?” she added, speaking on condition of anonymity for fear of reprisals.

It was not immediately clear what a new U.S. court ruling, saying the U.S. likely broke the law by deporting a fellow Colombian to Congo, will mean for her.

A United Nations-affiliated group plays a central role

In her interview from the hotel in Congo’s capital, Kinshasa, where she and other deportees are held, the woman gave new details about the central role that a United Nations-affiliated body, the International Organization for Migration, is playing.

She said deportees are allowed to leave the hotel about once a week and only accompanied by IOM staff. When they shop at a supermarket or withdraw money they are quickly ushered back to their vehicle, with IOM staff never out of sight.

“They choose where we go and what we buy,” she said.

At the hotel, she said, IOM staff have organized activities like painting, music and volleyball but many deportees have stopped participating, bored with the routine. She goes for meals and remains in her room otherwise, making late-night calls to her 10-year-old daughter in Colombia and worrying when she will see her again.

Most striking is the role IOM staff are playing in presenting deportees with their possible fates.

They have offered the woman two paths: Return to Colombia, where a U.S. judge has ruled she cannot safely be sent back, while receiving IOM “protection and assistance,” or remain in Congo with no support.

“They are given impossible choices,” said Alma David, the woman’s U.S.-based attorney. “By deporting them to a third country with no opportunity to contest being sent there, the U.S. not only violated their due process rights but our own immigration laws and our obligations under international treaties.”

Congo is one of at least eight African countries that have made deals with the Trump administration to facilitate deportations of third-country nationals, which legal experts say are effectively a legal loophole for the U.S. Most deportees had received legal orders of protection from U.S. judges shielding them against being returned to their home countries, lawyers said.

The AP has interviewed others sent to African nations who were forced to make risky decisions, such as a gay Moroccan asylum-seeker deported to Cameroon, a country where homosexuality is illegal.

The U.S. Department of Homeland Security did not respond to questions about the Colombian woman’s case, but it has asserted that third-country deportation agreements “ensure due process under the U.S. Constitution.” The Trump administration says the agreements are needed to “remove criminal illegal aliens” whose country of origin will not take them back.

Details of Congo’s deal with U.S. are unclear

The details of Congo’s deal with the Trump administration are not clear. Other countries have received millions of dollars to participate.

Earlier this month, Congolese President Félix Tshisekedi called the agreement an “act of goodwill between partners,” with no financial compensation. It comes as Washington has ramped up pressure on neighboring Rwanda over its support for the M23 rebel group that has seized cities in eastern Congo — a dynamic some analysts say may explain Kinshasa’s willingness to take deportees.

“We agreed to do so as a friendly gesture, simply because it was what the Americans wanted,” Tshisekedi said, adding that the migrants are free to leave Congo at any time.

“We understand that psychologically they must be unsettled because, at first, they dreamed of living the American dream, and now they are living the Congolese dream — in a country they probably did not know and may never even have noticed on a map of the world,” Tshisekedi said.

Congolese human rights groups have called it a violation of international refugee law. The Congo-based Institute for Human Rights Research described the situation as “arbitrary detention by proxy for the United States.”

The current U.S. Immigration and Customs Enforcement policy says if a government has made blanket diplomatic assurances that it won’t persecute people who are deported, no further process is required for deportation, not even giving deportees notice where they are being sent, said David, the attorney.

“When they told me they were going to deport me, I almost fainted,” the Colombian woman said. She was told about Congo the day before the flight.

She was detained at a routine check-in with ICE

She said she left Colombia in 2024, following threats from armed groups and abuse by a former partner who worked for the government.

She went to Mexico, where she waited for a border appointment booked with the U.S. government. When she presented herself at an Arizona port of entry in September 2024, immigration officials determined she had a credible fear of persecution, clearing her to apply for asylum, but kept her in ICE detention.

“You spend a year and a half locked up, living the same day over and over again. You see fights, punishments where people are locked in cells for many hours. You lose your privacy even to use the bathroom,” she said.

Some officers made racist remarks. “They made derogatory comments toward us as migrants, shouted at us all the time and sometimes denied basic things like showers as punishment,” she said.

In May 2025, a federal judge granted her protection under the U.N. Convention Against Torture, ruling she could not be safely returned to Colombia, according to court documents seen by the AP.

She filed a habeas corpus petition and won her release in February. She moved to Texas and was required to wear a GPS monitoring device, but at her first check-in appointment with ICE, she was detained again.

“All they told me was that I was under detention, as they had found a third country for me,” she said.

Less than three weeks later, she was put on a plane to Congo. She and the other deportees arrived on April 17 after a nearly 24-hour charter flight during which their hands and feet were restrained.

She doesn’t feel safe in Congo

Now they stay at a hotel near Kinshasa’s airport, in tidy white bungalows. Congo’s government covers the cost, the IOM said. It was not clear whether that would last after the deportees’ visas run out.

The hotel gates are locked according to one of the deportees lawyers. The Colombian woman also said security personnel do not let them leave on their own.

They were told they could apply for asylum, an option no one has chosen. “I don’t feel safe in Congo,” the woman said.

An IOM spokesperson said the organization has provided her with humanitarian assistance based on an assessment of her vulnerability. It includes “protection interventions, referrals, rights safeguarding and promotion of migrants’ overall well-being,” with no details.

The IOM also may offer “assisted voluntary return” — covering documents, flights, transit and temporary housing on arrival — with migrants’ consent.

The IOM said it plays no role in determining who is deported and reserves the right to withdraw its assistance for deportees if “minimum protection standards” aren’t met.

The Colombian woman remains in limbo, anxious. She said the food “has made us very sick,” with stomach ailments ongoing.

Local languages, like French and Lingala, are as foreign as her surroundings.

“The worst part is having to go through all of that without having committed any crime, simply for going to another country to ask for safety and protection.”

Banchereau writes for the Associated Press.

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World’s Best Banks 2026: Latin America

Tighter financial conditions and currencies relatively firmer against the dollar defined the Latin American macroeconomic backdrop.

table visualization

Household cash flows proved mostly resilient across the region, supported by solid labor markets. On the other hand, corporate activity became more cautious, shaped by higher funding costs and a more uncertain global environment.

In the banking sector, selectivity was the year’s defining theme, as global banks largely maintained their multiyear retrenchment from noncore markets while regional players focused more on consolidating scale where it could be translated into tangible returns. As a result, growth became more targeted, with institutions prioritizing efficiency by focusing on the core geographies and segments where they held clear competitive advantages.

Fintech further consolidated its role as a foundational layer of the region’s financial system, prompting banks to deepen partnerships and use digital platforms to close product gaps, accelerate distribution, and oftentimes expand inorganically.

The result was a banking model that became more focused, increasingly defined by the ability to operate effectively within tighter strategic boundaries.

Caribbean economies entered 2025 supported by resilient tourism flows and solid remittance activity. Even so, growth across the region remained moderate, constrained by global uncertainty, tight public finances, and a still-cautious policy environment.

Against this backdrop, the region’s banks focused on strengthening core operations. Investment in digital infrastructure continued alongside efforts to streamline onboarding, reduce friction, and broaden access. Growth was still underpinned by an expanding customer base; but institutions pursued growth more selectively, placing greater emphasis on credit quality and risk-adjusted returns.

In Central America, banks relied on strengthening their funding bases, aiming to take advantage of the resilience of household cash flows across the region. While client and portfolio expansion was mostly moderate, a pickup in remittances during the first half of the year helped support overall profitability. Credit growth remained relatively strong even as corporate lending slightly moderated.

This translated into a year defined by efficiency for the industry, as institutions kept pushing digital adoption and electronic transactions higher and focused more closely on asset quality and operating discipline.


Latin America

Our Best Bank in Latin America, Itaú Unibanco, stood out for translating those conditions into superior profitability without sacrificing balance-sheet quality.

Even in a more selective credit environment, the Brazilian giant’s recurring net income rose 13.1% year over year (YoY) to 46.8 billion Brazilian reais ($8.5 billion). Return on equity (ROE) reached 23.4%, among the strongest in the region. Deposits grew 9.3% to 1.7 trillion reais, and loans expanded 6% to nearly 1.5 trillion reais, reflecting continued commercial momentum even as credit conditions became more selective.

Digital execution remained another differentiator for the bank. Through the continued rollout of its One Itaú super app, the bank reached a solid benchmark in digital channels: 97% of interactions with individual clients and 98% with corporate customers, helping to improve the consolidated efficiency ratio to 38.8%.

Caribbean

Across the Caribbean, Scotiabank maintained strong capital positions and disciplined cost management while investing in digital capabilities and client experience, which improved profitability, digital adoption, and credit quality underpinning performance.

Central America

By combining scale expansion with disciplined execution and continued digital investments, Davivienda consolidated its position as one of the region’s leading institutions, in terms of reach and breadth of offerings in 2025.

Building on the integration of Scotiabank’s operations in Colombia, Costa Rica, and Panama, completed in December 2025, the bank ended the year with an expanded footprint. Total assets reached $64.3 billion, while its customer base exceeded 27 million across six countries.


Argentina

In Argentina, Banco Galicia excelled by betting on network expansion and service growth during a year defined by a gradual normalization of financial conditions and dwindling inflation. While the country’s broader economy expanded 4.6% in 2025 after contracting in 2024, the recovery was arguably uneven and sector focused, as household consumption contracted amid a more challenging labor market.

Against this evolving backdrop, the bank focused on integrating recently acquired HSBC Argentina’s franchise and on continuing to expand its best-in-country service network to capture renewed banking activity. By mid-2025, total assets had risen to 30.2 trillion Argentine pesos ($25.4 billion), up 33% from a year earlier. Meanwhile, the loan portfolio reached 14.4 trillion pesos, an increase of roughly 95% YoY.

On the digital front, Galicia continued to expand the reach of its ecosystem through Naranja X, which by mid-2025 had grown to 9.8 million credit cards and 7.9 million deposit accounts, with 81% of clients using digital channels. The group also joined Argentina’s first real-time interbank fraud-intelligence network, reflecting the increasing scale and sophistication of digital banking activity across the system.

Bahamas

Scotiabank Bahamas reached record profitability with a pretax income of $78.3 million in 2025—the highest in 16 years. The bank also reinforced its lead in digital banking, with virtually all transactions now executed through electronic channels, supporting cost optimization and improved client experience.

Barbados

Scotiabank Barbados’ net profits rose to 87.4 million Barbadian dollars ($43.7 million) while return on equity reached 23%, reflecting improved efficiency and cost control.

Belize

With a market share of over 40%, Belize Bank benefited from continued expansion of the domestic banking system in 2025. Its total assets reached record levels, to post significant improvements in presence and product offering.

Bermuda

In Bermuda, Butterfield Bank delivered stable performance, supported by a strong balance sheet with total assets of $14.1 billion in 2025.

Bolivia

Banco Mercantil Santa Cruz continued to consolidate its position as Bolivia’s leading private-sector bank in 2025, extending its leadership in both lending and deposits while maintaining solid profitability growth. Total assets reached almost $6.6 billion, up 4.4% YoY. Deposits rose to nearly $5.2 billion. Net profit totaled $60.2 million, with ROE of 16.3%, one of the best in its category.

Brazil

BTG Pactual continued to place margins and client growth at the forefront of its operation in the region’s largest market, Brazil. The bank focused on its capital-light, platform-driven model to expand client activity across wealth, investment banking, and digital distribution.

As a result, the bank posted record numbers across the board. Adjusted return on average equity reached 26.9%, total revenue rose to 33 billion reais, and market capitalization climbed to 205 billion reais, underscoring investor confidence in one of the region’s most consistently high-performing financial institutions. BTG ended the year with 2.5 trillion reais in assets under custody and management.

Eying the region’s growing sustainability transition, BTG also partnered with the International Finance Corporation to mobilize up to $1 billion in sustainability and development financing across Latin America through 2028.

Cayman Islands

In the Cayman Islands, Butterfield Bank focused on strengthening client experience and accessibility. In 2025, the bank upgraded its online and mobile platforms for retail and corporate clients. It also launched initiatives such as an enhanced Young Savers account and financial education partnerships.

Chile

Banco de Chile delivered another year of consistent outperformance in an economy marked by lower inflation, falling interest rates, and still-muted real credit growth, all of which reduced the sector’s earnings tailwinds.

In the face of this challenging environment, Banco de Chile continued to strengthen its position through efficiency gains and digital expansion, including a 24.5% growth in the bank’s FAN digital accounts as well as the launch of Banchile Pagos, a move that helped deepen the bank’s leadership in both scale and customer experience in the country.

Colombia

In Colombia, Banco de Bogotá operated in a still-restrictive environment, with inflation at 5.1%, policy rates at over 9.2%, and a stronger Colombian peso (up by more than 17% to the US dollar), all of which continued to weigh on margins and credit demand. Against that backdrop, the bank delivered steady balance-sheet growth: Total assets rose 6% to 155.8 trillion pesos ($41.4 billion); loans were up 4.8% to 109.4 trillion pesos; and deposits increased 7.7%. Asset quality improved, with nonperforming loans declining to 3.6%.

The bank also continued to accelerate its digital-expansion plan, processing 1.6 billion transactions in 2025—a massive 59% YoY increase—positioning Banco de Bogotá at the forefront of one of the world’s most digitally integrated banking systems.

Costa Rica

In Costa Rica, BAC Credomatic delivered a solid performance in 2025, supported by sustained consumer-lending demand and strong activity in the bank’s payments and card businesses. BAC maintained a diverse revenue base, balancing lending growth with fee-based income from transactional services.

During the year, BAC advanced its strategic focus on small and midsize enterprises and sustainable financing. It continued to expand digital channels and payments across its Costa Rican franchise. As a result, for the first nine months of 2025, BAC International Bank reported net income of $586 million, up from $538 million a year earlier.

Dominican Republic

The Dominican Republic’s largest financial institution, Banreservas, continued to expand its role in key segments, capturing over 60% of remittance flows within the financial system in 2025. During the year, it completed implementing the Finastra Essence core banking platform, which improved processing efficiency and enabled real-time, digital-first services.

Ecuador

In Ecuador, Produbanco benefited from a more supportive macro backdrop in 2025, as bank profits in the country jumped a massive 43% YoY from a difficult 2024. In that environment, the bank continued to grow above the market: Net income for 2025 reached $85.2 million, roughly double from the year prior; and the loan portfolio was up 13.7% YoY by September 2025, supported by stronger commercial activity and improving credit dynamics. Profitability also strengthened.

At the same time, the bank continued to deepen its strategic positioning through sustainable and digital finance. Produbanco’s sustainable portfolio surpassed $1 billion, including $373 million in green financing, up 80% from 2023.

El Salvador

A focus on digital expansion and credit resilience was the secret behind Banco Cuscatlán’s above-average performance in El Salvador. The bank outperformed the competition, with total assets increasing 13.5% YoY to over $4.8 billion.

Last year, Banco Cuscatlán continued to advance its digital and operational capabilities, including the expansion of its YA ecosystem and fully digital lending offerings. The bank also strengthened its regional footprint by migrating a $41.8 million mortgage portfolio.

Guatemala

Banco Industrial continued to benefit from structural growth opportunities in Guatemala, leveraging the bank’s market-leading position to further growth. As a result, the bank’s total assets reached 184.7 billion Guatemalan quetzales ($24.1 billion), up 14.8% YoY. Growth was supported by a combination of corporate lending strength and expanding retail reach, alongside continued investment in digital infrastructure.

Guyana

Rapid economic expansion continued to shape results at Scotiabank Guyana, where assets grew 37% in 2025, driven by rising deposits linked to the country’s oil and gas sector.

Honduras

As Honduran banking assets expanded by 7.8% YoY in 2025, Banco Ficohsa found itself well positioned to capitalize on its nearly 19% market share in assets and 18% in loans, translating systemwide growth into continued balance-sheet expansion and lending activity.

Jamaica

National Commercial Bank Jamaica delivered a strong rebound in 2025. Net profit more than doubled to 13.2 billion Jamaican dollars ($82.9 million), supported by a 19% increase in total operating income.

Mexico

In the region’s second-largest economy, Mexico, Banorte was well positioned to take advantage of a more resilient domestic macro backdrop in 2025, leveraging rebounding household demand and easing macroeconomic pressures to deliver another year of strong, broad-based performance. Net income rose to 58.8 billion Mexican pesos ($3.3 billion), while ROE reached 22.8%, and the cost-to-income ratio remained low at 35.8%, reflecting continued strength in both profitability and operating discipline.

That performance was reinforced by the bank’s growing breadth in commercial and strategic execution. Consumer lending expanded 12% YoY by mid-2025, supported by particularly strong growth in auto loans (30%), credit cards (18%), payroll lending (9%), and mortgages (8%).

Banorte also deepened its reach through the addition of retail giant Oxxo to its correspondent network. The bank also expanded its digital capabilities through a renewed partnership with Google Cloud, aimed at scaling AI, analytics, and personalization across the franchise.

Nicaragua

During 2025, Banco LAFISE Bancentro in Nicaragua reached record profitability and a highly resilient balance sheet. Net income rose 24% YoY to $69.4 million, accounting for 31.1% of total system profits. Return on equity (RoE) increased to 17.2%, making LAFISE the only major bank in the country to improve profitability during the year.

Panama

In Panama, Banco General continued to act as the banking system’s anchor institution in 2025, leveraging the bank’s scale and deeply embedded client base to sustain growth. The bank retained its leading position with a 26.9% share of deposits and 18.1% of loans, reflecting its central role in channeling liquidity and credit across the economy.

Net income rose 5.7% YoY to $829.3 million. RoE remained strong at 24.1% and the efficiency ratio low at 28.3%, supported by steady activity across core segments.

Paraguay

Amid another year of solid economic growth in Paraguay, Banco Continental continued to leverage its scale to deliver standout profitability. Total assets reached approximately $5.5 billion, up nearly 10% YoY, supported by a loan portfolio of nearly $4.1 billion and deposits of nearly $3.4 billion. Just as important, asset quality remained exceptionally strong, with nonperforming loans below 1%, reinforcing the bank’s ability to grow without compromising underwriting discipline.

Peru

Banco de Crédito del Perú (BCP) benefited from one of the more supportive banking environments in the region in 2025, as economic growth recovered, inflation stayed near target, and easing rates helped revive financial activity. BCP continued to anchor its parent Credicorp’s universal banking performance, helping drive group net income to over 6.9 billion Peruvian soles ($2.1 billion) and ROE to 18.6%, while preserving the bank’s leadership in Peru’s loans and deposits markets.

Puerto Rico

Banco Popular de Puerto Rico delivered a strong performance in 2025. Net income rose 36% year-on-year (YoY) to $833 million, supported by solid revenue growth and stable credit quality. Total assets reached approximately $75 billion, with deposits of $66.2 billion and loan balances around $39 billion.

Trinidad & Tobago

With total assets reaching approximately 127 billion Trinidadian dollars ($18.7 billion) in 2025, Republic Bank continued to strengthen its position in Trinidad and Tobago, supported by steady balance sheet growth of over 6% YoY.

Turks & Caicos

For Scotiabank Turks & Caicos, the focus was on steady growth and client accessibility. Total assets increased by 5.2% to $708 million in 2025.

Uruguay

Banco Itaú Uruguay also takes our Best Bank award, in its country, for posting significant growth without sacrificing capital efficiency. At the end of 2024, the bank expanded its digital-payments capabilities through the acquisition of local fintech Plexo while continuing to build on the scale of the bank’s card and consumer-finance franchise.

US Virgin Islands

FirstBankmaintained stable credit performance and low levels of nonperforming assets to post consistent growth in the US Virgin Islands. During the year, the bank advanced its digital transformation through continued migration to cloud-based infrastructure.

Venezuela

In its centennial year, Mercantil Banco Universal outperformed by remaining one of Venezuela’s fastest-growing banks. It added more than 62,000 new customers and installed over 10,000 new card-payment terminals. The historic institution also continued to invest heavily in technology, migrating 650,000 debit cards to contactless technology and more than doubling YoY usage of its MIA (Mercantil Inteligencia Artificial) AI assistant to more than 1.5 million users.

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The US vs Latin America: Varsha Gandikota and Susana Muhamad | Environment

Gandikota asks Muhamad: What does the military‑industrial machine mean for the sovereignty of the Global South?

In this episode of Reframe, Varsha Gandikota-Nellutla, general coordinator of Progressive International, speaks with former Colombian Environment Minister Susana Muhamad about how Latin America should respond to the age of United States President Donald Trump. Muhamad argues that challenging a long history of imperial dominance begins with reclaiming sovereignty, particularly over natural resources like minerals and oil.

Muhamad is a Colombian politician and environmentalist who served as the minister of environment and sustainable development from 2022 to 2025.

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US, Latin America countries criticise China’s retaliation over Panama Canal | Shipping News

China has detained nearly 70 Panamanian-flagged ships after a Supreme Court ruling on the Panama Canal, US officials say.

Bolivia, Costa Rica, Guyana, Paraguay, Trinidad and Tobago, and the United States have released a joint statement in support of Panama, while criticising Chinese economic retaliation, after a Hong Kong-based conglomerate lost a legal dispute over the management of ports on the Panama Canal.

Panama’s Supreme Court in late January annulled contracts that had allowed a subsidiary of Hong Kong’s CK Hutchison to administer the Balboa and Cristobal port terminals on the Panama Canal after deeming the decades-old agreements unconstitutional.

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In their joint statement on Tuesday, the six countries claimed that following the court ruling, China has retaliated against Panama with “targeted economic pressure” on Panamanian-flagged ships.

China detained nearly 70 Panamanian-flagged ships in March, according to the US Federal Maritime Commission, a number “far exceeding historical norms”.

“These actions – following the decision of Panama’s independent Supreme Court regarding the Balboa and Cristobal terminals – are a blatant attempt to politicise maritime trade and infringe on the sovereignty of the nations of our hemisphere,” the signatories said.

US Secretary of State Marco Rubio said separately on X that Washington was “deeply concerned” by China’s economic pressure on Panama.

“We stand in solidarity with Panama. Any attempts to undermine Panama’s sovereignty are a threat to us all,” he said.

China has previously accused the US of “bullying” and trying to smear its reputation in Latin America, while it described the Panamanian Supreme Court ruling as “absurd” and “shameful”.

 

US Federal Maritime Commission head Laura DiBella said last month that Beijing’s detention of Panamanian ships had repercussions for both Panama and the US.

“These intensified inspections were carried out under informal directives and appear intended to punish Panama after the transfer of Hutchison’s port assets,” DiBella said.

“Given that Panama‑flagged ships carry a meaningful share of US containerised trade, these actions could result in significant commercial and strategic consequences to US shipping,” she said.

‘States know how vulnerable shipping is’

Panama’s decision to invalidate the contracts held by CK Hutchison’s subsidiary Panama Ports Company was made at a time of heightened media attention around the Panama Canal amid threats by US President Donald Trump to seize the strategic waterway.

Trump had made the approximately 80km (49-mile) waterway a focus of his second administration, alleging in his inaugural address in January 2025 that China was “operating” the canal and pledging that the US would “take back” control.

US officials allege that, in addition to targeting Panama and its interests, China has also retaliated against shipping giants Maersk and the Mediterranean Shipping Company (MSC), whose subsidiaries were granted 18-month contracts to administer the Balboa and Cristobal terminals after CK Hutchison was removed.

Representatives of Maersk and MSC were both summoned by China’s Ministry of Transport for “high-level discussions”, the Federal Maritime Commission said in March, while Chinese shipping giant COSCO has suspended operations at the Balboa terminal.

CK Hutchison, through its Panama Ports Company subsidiary, is separately pursuing international arbitration against the government of Panama and seeking more than $2bn in damages.

David Smith, an associate professor at the University of Sydney’s US Studies Centre, said that the Panama Canal dispute and China’s retaliation were the latest example of how shipping has become a political target, from Latin America to the Strait of Hormuz and the Red Sea in the Middle East.

“We have taken for granted that the world runs on container ships just freely sailing around the world,” he told Al Jazeera.

“What we’re seeing now is that states know how vulnerable shipping is. They know they can cut shipping lanes off if necessary. It should not surprise us from now on if ships and shipping in general become pawns in international politics.”

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World’s Best Investment Banks 2026: Latin America

Latin America’s investment banking giants of 2025, driving record M&A deals, booming equity offerings, and landmark debt transactions.

Despite the region’s ongoing challenges, Latin America remains attractive to foreign investment, especially in sectors such as renewable energy, technology, and infrastructure.

Foreign investment flows are often spurred by economic reforms, privatization efforts, and regulatory improvements.

BTG Pactual reaffirmed its position as the region’s top bank, while Itaú BBA capitalized on the rebound in equities, capturing a commanding market share and leading notable IPOs. And Bradesco BBI excelled in debt issuance, coordinating major corporate debentures and sovereign bonds, while maintaining strong cross-border market engagement.

The following list highlights the firms at the forefront of Latin America’s investment banking sector, shaping the region’s financial future.

visualization

Best Investment Bank

The leading Latin American investment bank, BTG Pactual ranked first in M&A with $15 billion in deal volume and led in ECM with $2 billion in deals. In DCM, the Brazilian bank issued more than $159 billion in 2025 alone. Among these transactions was the $2.6 billion merger between BRF (formerly Brasil Foods) and Marfrig, the biggest in the region for the year. On the equities side, the bank acted as lead left coordinator on the 10.5 billion Brazilian real (about $2 billion) capital raise for Cosan, a Brazilian sugar and ethanol producer with operations in energy, oil and gas, agribusiness, and logistics.  

M&A

It was a year in which industry-specific consolidation trends met still-elevated interest rates in Latin America, and M&A belonged to those who could structure complex deals with top-level execution. Such was the case for BTG Pactual, the No. 1 M&A advisory house in Latin America for yet another year. With more than $15 billion in deal volume in 2025 alone, the Brazilian powerhouse continued to lead in both volume and number of deals.

Among BTG Pactual’s key deals was the roughly $4 billion combination of BRF and Marfrig, a landmark transaction in Brazil’s food sector. BTG was also the financial adviser to Paper Excellence on the sale of its minority stake in pulp-producer Eldorado Brasil Celulose to J&F Investimentos for 15 billion reais (about $2.8 billion). Beyond BTG’s home turf, it played a key part in the take-private of Brazilian-based Serena Energia, valued at roughly $2.8 billion, by Singapore’s sovereign wealth fund GIC and General Atlantic, where the bank served as the exclusive financial adviser to Serena. The bank also acted as the exclusive financial adviser to Equatorial Energia in the sale of its power-transmission portfolio to Canada’s CDPQ for 9.4 billion-reais.

Equities

Through a combination of innovation and robust market positioning, Brazilian Itaú BBA took advantage of the rebound in Latin American

to close the year with a commanding 24% market share in the region’s ECM deals—56% of the share in the bank’s home market. As follow-ons dominated market growth on the back of improving risk sentiment among corporates and persistently elevated interest rates, the bank managed to structure some of the year’s most important deals. Among these deals was the landmark $196 million Aura Minerals IPO, which provided the Florida-based company with the capital structure to deepen its presence in Brazil. Itaú led the 1.2 billion real (about $226 million) Caixa Seguridade secondary offering, allowing the state-backed bank to improve its classification under the Brazilian regulatory framework. Itaú played a role in structuring the roughly $190 million C&A Brasil transaction, in which controlling shareholders sold a 21% stake through a block trade.     

Debt

With a mix of domestic and cross-border issuances, Brazil’s Bradesco BBI rode the persistent high-interest-rate environment in the region, which prompted corporates to gravitate toward fixed-income instruments with excellent performance. In the domestic market, the bank acted as lead bookrunner on Vale’s local debenture issuance, serving as a key coordinator in distributing one of the largest capital raisings in Brazil during the year. Bradesco also led the Ecovias Rio Minas debenture, cited as one of the largest corporate debenture transactions of 2025. In structured credit, Bradesco BBI participated in the CloudWalk FIDC, one of the most significant FIDC offerings of the year, and acted as bookrunner on a 3.1 billion Brazilian real (about $591 million) FIDC issuance in April 2025. Internationally, the bank played a central role in benchmark cross-border bond offerings. Bradesco acted as a bookrunner on Brazil’s new 10-year, 2035, dollar-denominated sovereign benchmark bond, raising $2.5 billion, a significant transaction.        

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About 15 Latin American deportees from the U.S. arrive in Congo

Around 15 people deported from the United States landed in Congo’s capital Kinshasa early Friday, one of their lawyers told the Associated Press.

It was the latest example of the Trump administration using agreements with African countries to accelerate migrant removals that have raised questions about respect for the migrants’ rights.

An official at the Congolese migration agency confirmed the arrivals but didn’t provide details.

The deportees are all from Latin America and the Congolese government plans to keep them in the country for a short period, said U.S. attorney Alma David, who represents one of the deportees. She has been speaking with her client since arriving in Kinshasa.

All the deportees are believed to have legal protection from U.S. judges shielding them against being returned to their home countries, David said. The deportees are believed to be staying at a hotel in Kinshasa.

The International Organization for Migration, a United Nations-affiliated agency, will be involved to offer “assisted voluntary return,” David told AP.

“The fact that the focus is on offering them ‘voluntary’ return to their home country when they spent months in immigration detention in the U.S. fighting hard to not have to go home is very alarming,” she said.

An International Organization for Migration spokesperson said the organization was providing humanitarian assistance to the deportees at the request of the Congolese government. It said it may also offer assisted voluntary return, which is “strictly voluntary and based on free, prior and informed consent.”

Congo’s Ministry of Communications said in a statement earlier this month that it will receive some migrants as part of a new deal under the Trump administration’s third-country program.

It described the arrangement as a “temporary” one that reflects Congo’s “commitment to human dignity and international solidarity.” It would come with zero costs to the government with the U.S. covering the needed logistics, it said.

The statement said no automatic transfer of the deportees is planned, adding: “Each situation will be subject to individual review in accordance with the laws of the Republic and national security requirements.”

The U.S. has struck such third-country deportation deals with at least seven other African nations, many of them among countries hit hardest by the Trump administration’s policies restricting trade, aid and migration.

The Trump administration has spent at least $40 million to deport about 300 migrants to countries other than their own, according to a report released recently by the Democratic staff of the Senate Foreign Relations Committee.

Lawyers and activists have raised questions over the nature of the deals with countries in Africa and elsewhere. Several of the African nations that have signed such deals have notoriously repressive governments and poor human rights records — including Eswatini, South Sudan and Equatorial Guinea.

Kamale and Banchereau write for the Associated Press. Banchereau reported from Dakar, Senegal. AP writer Saleh Mwanamilongo in Bonn, Germany contributed to this report.

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