☀ Domingo Brief — The BRICS Decision

Each Sunday, take two minutes to catch key stories and opportunities shaping Latin America.

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Welcome back to the Domingo Brief! This week, we’re looking Colombia’s minimum wage increase, the final decision out of Buenos Aires for BRICS accession, and more.

PUBLIC SERVICE ANNOUNCEMENT: We will be at the Consumer Electronics Show (CES 2024) in Las Vegas this week! Senior Editor Gabriel Cohen will be attending; if you’re a Latin American entrepreneur or startup seeking to connect, reach out!

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Trivia of the Week

Just over a third of you (34%) correctly guessed José Paranhos, the Baron of Rio Branco, as the so-called father of Brazilian diplomacy. This 19th-century noble statesman settled all of Brazil’s territorial disputes with its neighbors while also peacefully securing roughly 10% of the country’s present-day territory. It’s little surprise that modern-day Brazilian diplomats must train at the Instituto Rio Branco in Brasilia.

Each week, tune back in for the answer to the previous week’s trivia question. No cheating!

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🇦🇷 Argentina has officially not joined the BRICS grouping of countries. President Javier Milei, a longtime BRICS skeptic, announced the decision following his victory late last year, and has followed through. This week, the BRICS doubled in size—but no Latin American country has joined Brazil in the group’s membership. It’s expected Argentina will lose access to some financing mechanisms and development aid as a result of this decision.

Latinometrics: Argentina’s accession was initially announced in August by the government of Milei’s predecessor, ex-President Alberto Fernández, and was celebrated by the government of founding member Brazil. However, Milei decided against joining at last, arguing the decision was practical rather than ideological, though some external observers have voiced skepticism.

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🇧🇷 Brazil certainly ended 2023 on a high note. Not only did Latin America’s largest country greatly exceed growth expectations this year, but it also saw a major tax reform overhaul approved by congress in the final weeks of the year. This reform, passed by a sweeping majority in both chambers of the legislature, is a major win for both Brazilian businesses and the country’s president.

Latinometrics: Specifically, this law aims to streamline and simplify the country’s notoriously bureaucratic and complex system of taxation. From five different tax levies (ranging from federal to state to municipal and local) to just two value-added levies (one federal, one shared between state and municipal), this is a big win for the modernization of the country.