Additional Insights on Key Latin American Issues of 2026
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COP30 Signals a New Era: Climate as Economic Strategy, Not Just Policy
Brazil’s hosting of COP30 in Belém transformed the Amazon into a global boardroom where nature, supply chains, and industrial policy converged. The conference revealed a seismic shift: climate action is no longer about emissions pledges—it’s about market access, financial architecture, and competitive advantage. Global South nations, led by Brazil and India, are now driving the agenda, demanding traceability, indigenous rights, and blended finance models that reshape how multinationals operate in emerging markets. For companies with Latin American exposure, the message is clear: nature-related risks are now enterprise risks, political strategies must navigate fragmented jurisdictions, and industrial policy incentives will determine who wins in the energy transition. The window to reposition is closing fast—those who move now will define the next decade of competitiveness across the region.
Authors: Miriam Wrobel, Kelly Souza, Rafaella de Freitas and Emilia O’Keeffee
Brands Shout and Reputation Whispers
Reputation is a measurable driver of enterprise value and risk, not just a perception metric. Research indicates that improving corporate reputation by even one point can generate gains of up to $1 billion in large companies, while trust failures can rapidly destroy value — with 60% of consumers stating they would stop trusting a financial provider after a major service or security incident. This is particularly critical given that between 70% and 80% of corporate market value is now tied to intangible assets such as brand and reputation. In this context, companies that treat reputation as a strategic key performance indicator (KPI) — rather than a byproduct of brand visibility — are better positioned to sustain revenue, protect license to operate and maintain long-term competitive advantage.
Authors: Jorge del Castillo, Javier Restrepo, Laura Almario
Know Your Risk: Terrorist Designation of Cartels on Business Interests in Mexico
In his first day back in office, U.S. President Donald Trump issued an Executive Order that led to the designation of cartels operating in Mexico, and elsewhere in the Americas, as Foreign Terrorist Organizations (FTOs). Under U.S. law, interactions with cartel-affiliated actors – including the payment of extortion or so-called “protection” fees – may now be construed as providing them with “material support.” Beyond its political and national security implications, the designation materially impacts the risk environment for companies by broadening potential legal, financial, and reputational liability. Significantly, it shifts the perceptions of the stakeholders that matter the most to companies operating in the region: authorities and regulators, financial institutions and investors, clients and suppliers, and community groups.
Authors: José Cortina, Pablo Zárate, Damián Martínez, Leopoldo Gómez
From U.S. Squeeze to Global Reach: How Tariffs Accelerated Brazil’s Export Diversification
U.S. tariffs on Brazil escalated dramatically throughout 2025, beginning with 25% duties on steel and iron in February and culminating in a 50% combined tariff rate by August under reciprocal and the International Emergency Economic Powers Act (IEEPA) measures. Despite these barriers, Brazil achieved record exports in 2025 – up US$11.6 billion overall – by rapidly pivoting from U.S. markets (down US$2.6 billion) to China and other Asian destinations. This structural shift has reshaped Brazil’s export geography, deepened the China dependency, and forced companies to rethink logistics, pricing, and political risks across their value chains as trade friction persists.
Authors: Rachel Hsueh, Payne Griffin, Raquel Rocha
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About Our Latin America Practice
FTI Consulting advises companies doing business across Latin America to navigate the stakeholder dynamics around special situations and high profile corporate events, from transactions and market entry to crisis, disputes and litigation. We help clients anticipate critical political, policy and reputational risks and effectively overcome them, unlocking long term opportunity. Our Latin America practice works in a coordinated manner through our offices in Mexico City, Bogotá, and São Paulo, as well as with our teams in Washington D.C., Brussels, Madrid, Houston, Miami, and other important hubs. Through our vast network of strategic partners, we have coverage on all Latin American countries.
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The views expressed in this article are those of the author(s) and not necessarily the views of FTI Consulting, its management, its subsidiaries, its affiliates, or its other professionals. ©2026 FTI Consulting, Inc. All rights reserved. www.fticonsulting.com |
