LATAM Business Weekly - Issue #1
A president’s legitimacy in question, jockeying for Uber’s next launch site, a positive outlook for Brazil & more from around the region.
Insight on Uber’s Argentinian expansion
Uber’s success in Buenos Aires and continuing efforts in Argentina provides insight for businesses looking to expand in the region. Despite facing challenges such as regulations and the nation’s highly established taxi industry, Uber’s expansion beyond the capital city has been impressive.
... other cities and states are now jockeying to negotiate with the company to be the site of its next launch. Argentina’s Mendoza region gave Uber a license this year, and the company is in negotiations with Córdoba, the second-largest city in the country.
Plans set to try to oust Venezuelan President
Leaders of Venezuela’s opposition-controlled body declared President Nicolas Maduro illegitimate and hope to trigger a constitutional mechanism that would allow them to take over the leadership.
The country is facing a growing humanitarian crisis and a collapsing economy, where inflation is soaring, food and medicine are scarce, and millions of Venezuelans are fleeing. Many remaining Venezuelans denounce Maduro as illegitimate, seeking a stronger leader to revive the country.
Brazil’s new president brings positive business outlook
Shortly after Jair Bolsonaro took office, Brazil’s financial markets reacted favorably to Bolsonaro’s free-market ideals and promise to deliver a pro-business agenda. According to Reuters,
... analysts said Bolsonaro, a former army captain and lawmaker who has admitted to having scant knowledge of economics, was assembling an experienced economic team to implement his plans to slash government spending, simplify Brazil’s complex tax system, and sell off state-run companies.
Brazil’s new economic landscape could provide unprecedented access to foreign business interests.
Mexican Government’s tax break on IPOs
Finance Minister Carlos Urzúa made an announcement on January 8 that the Mexican government plans to reduce taxes on the proceeds from IPOs from 30% down to 10% in efforts to incentivize companies to enter the stock market.
Urzúa also said that the government will lower corporate bond taxes for foreign investors and also grant Mexico's pension plans, known as afores, more discretion on investment decisions ‘to encourage long-term productive investments and promote voluntary savings.’
Latin America’s biggest powers seek to modify economic order
Brazil and Mexico are having second thoughts about their roles as leaders in the Latin American socio-political landscape. Newly inaugurated Mexican President Obrador has turned inward and began focusing on improving the country’s economic prosperity. Brazil’s Bolsonaro has done the same, recoiling from world affairs and globalism.
Knowing that their leaders are putting their countries first is key in approaching business with these two economies.