Adozona Positions Dominican Free Zones as the Ideal Platform to Promote Interaction and Industrial Cooperation Between Both Countries

The Dominican Association of Free Zones (Adozona) reiterated the country’s growing capability to position itself as a regional benchmark for advanced manufacturing and global services and the multiple opportunities that are opening up for strategic cooperation between the Dominican Republic and Spain to strengthen their value chains, generate technological innovation, and make the economies of both countries more competitive.

Forging a Common Perspective for the Industrial Transformation

During the panel entitled “Dominican Republic: A Reliable Ecosystem for Advanced Manufacturing and Global Services,” which took place at the headquarters of the Mapfre Foundation in Madrid, Adozona president Claudia Pellerano pointed out that Dominican Free Zones are the ideal platform to capitalize on the complementarity between both countries. She also said that the Dominican Republic and Spain have long historical, cultural, and economic ties that enable them to “lead a new era of industrial cooperation centered on the transfer of technologies, sustainable production processes, and investment with greater added value.” “The Dominican Republic has a strong, competitive, and consolidated ecosystem, with talent, infrastructure, and an institutional framework that is very innovation-friendly. The Free Zones are the vehicle that allows us to connect capabilities, generate synergies, and build a common future of advanced manufacturing and global services,” said Pellerano, according to the press release. In this sense, she also noted that the country’s strategic location, which connects North America, Latin America, and Europe, gives it an attractive competitive advantage in global trade routes, which would allow for companies from both countries to cooperate in supply chain management, logistics, and export diversification in a more fluid and efficient manner.

Event Boosted by Strategic Institutions

The event was led by the Executive President of Banco BHD, Fidelio Despradel; the CEO of Mapfre, Antonio Huertas, and the Dominican Minister of Industry, Commerce, and MSMEs, Víctor Bisonó. The officials emphasized that the public-private collaboration is key to promoting competitiveness and positioning both markets to attract high-value-added investments. “The strengthening of the collaboration between both economies is key to reinforcing trade and commercial integration and establishing a new alliance between two nations that share history and a future that we can write together and look at with optimism and hope,” said Despradel. In the same vein, the Executive President of Banco BHD said that bilateral cooperation could serve as a multiplier for investment in strategic sectors such as renewable energy, advanced manufacturing, logistics, and digital services. Huertas, in turn, highlighted the great opportunity that Spanish companies have to leverage the Dominican Republic’s stable economy and its network of trade agreements to increase their footprint in the Caribbean and the Americas. “The articulation of financial institutions, insurance, and industry agents will be key to generating the next generation of industrial projects that prioritize innovation, sustainability, and inclusion,” Huertas added.

Logistics, a Key Component for Industrial Connectivity

On the other hand, Erik Alma, CEO of HIT Puerto Río Haina and a member of the board of directors of Adozona, highlighted the strategic advantage represented by the Dominican logistics ecosystem. He said that it has a key role in improving connectivity, efficiency, and the expansion of industrial operations throughout the region. He explained that the country’s port infrastructure, airports, highway system, among others, and its proximity to the largest markets of the United States and Latin America, make it an ideal location for companies looking to optimize operations. The increasing integration between both countries could open up investment opportunities in port modernization, intelligent logistics technologies, and green infrastructure to further consolidate the region’s connectivity.

A Free Zone Model with Multiple Opportunities

Today, the Free Zones in the Dominican Republic house 843 companies in operation, distributed in 94 industrial parks. These receive investment of more than USD 7.7 billion, generate over 198,000 direct jobs, and have exported goods for USD 8.426 billion in 2024, which represents more than 60% of total exports of the national economy. These figures not only reflect the scale and maturity of the Free Zone model in the country, but also its constant evolution towards more sophisticated and sustainable production processes. Sectors such as life sciences, medical devices, electronics, textiles, and business process outsourcing (BPO) are still gaining strength and consolidating the country as one of the main industrial and services platforms in the Caribbean. In this sense, Pellerano stressed that its growth has been fueled by the permanent alignment between the private sector and public institutions such as the Ministry of Industry and Commerce, as well as the National Free Zones Council. “The public-private synergy that we are forging between industry and key institutions is giving us very good results. It has been key to giving companies agility in management, stability, and trust. The opportunity to work in strategic sectors such as life sciences, logistics, and advanced manufacturing generates dynamism that we want to multiply,” she explained.

Generating Learning Networks and New Innovations

The forum also featured Spanish investors and entrepreneurs who shared their experience in the Dominican Republic. Participants pointed out that the Dominican Republic is a country committed to industrial development with a business-friendly regulatory framework and an increasingly qualified talent pool in areas such as engineering, IT, and manufacturing. Participants discussed how Spain’s technology and industrial know-how could complement the Dominican Republic’s capabilities in manufacturing and its competitive labor costs. Both countries could strengthen joint efforts in research and development projects, promote joint ventures, and create training programs to nurture a new generation of skilled professionals.

Spain and the Dominican Republic are closer to a shared future of industrial competitiveness

This meeting was another milestone in the increasingly deepening economic relationship between the Dominican Republic and Spain. The event reaffirmed both countries’ commitment to innovation, sustainability, and mutual development. Spain’s and the Dominican Republic’s cooperation is expected to continue reaping future achievements in other strategic areas such as renewable energy, smart manufacturing, digital transformation, and modernization of logistics. The alliance is betting on adding value to Spain’s technological sophistication and combining it with the Dominican Republic’s industrial strength and its location. They are laying the foundations for a future of greater strength and connection between both sides of the Atlantic. This successful venture once again proved that when public and private sectors combine efforts, the result is capable of redefining the competitiveness of the region and generating lasting opportunities for both economies. The Dominican Free Zones continue to be the bridge that unites talent, technology, and investment, and it is the lever that drives the transformation of the Caribbean into a hub for advanced manufacturing and global services that serve the most demanding markets in the world.

Chihuahua has emerged as one of Mexico’s most dynamic and globally integrated industrial centers, consolidating its reputation as a national leader in innovation, advanced manufacturing, and export performance. The Chihuahuan industry stands as a model of economic diversification and technological progress, driven by a strong network of multinational corporations, local enterprises, and public–private collaboration.

Strategic Advantages of Global Manufacturing

The state’s geographic location is one of its most strategic assets. Bordering Texas and New Mexico, Chihuahua provides direct access to North American markets through a highly developed network of highways, railways, and international border crossings. The logistics corridor connecting Ciudad Juárez, Chihuahua City, and Delicias allows for seamless movement of goods between Mexico, the United States, and Canada, making it a prime location for companies engaged in nearshoring and export-oriented production.

Modern infrastructure has also played a decisive role in enhancing competitiveness. Chihuahua’s industrial parks are equipped with advanced utilities, security systems, and multimodal transport connections, while specialized customs facilities streamline international trade. These capabilities are complemented by a growing ecosystem of suppliers and service providers, which together sustain the agility and efficiency of the Chihuahuan industry.

Economic Leadership in Exports

According to Mexico’s Ministry of Economy, Chihuahua exported more than USD 77 billion in 2024, a 6.89% increase from the previous year. This performance accounted for approximately 13.6% of Mexico’s total exports, underscoring the state’s strategic importance to national trade. The main exported goods include data processing machines, electrical cables, medical instruments, automotive components, and high-tech electronics. Each of these sectors benefits from a robust industrial ecosystem that integrates advanced manufacturing technologies, lean production practices, and specialized labor. The state’s export profile reflects its transition toward high-value, knowledge-intensive production, positioning Chihuahua as a vital link in global value chains.

A Magnet for Investment and Innovation

The state’s investment appeal continues to grow. Over the past decade, Chihuahua has attracted billions of dollars in foreign direct investment (FDI) from North America, Europe, and Asia. Its industrial parks in Ciudad Juárez, Chihuahua City, and Parral have expanded rapidly, hosting multinational leaders in automotive, aerospace, and electronics manufacturing. This expansion is supported by government programs that offer incentives for innovation, training, and sustainable industrial development. The Chihuahuan government, in partnership with the federal Ministry of Economy, provides financial tools and technical assistance to promote research, technology transfer, and workforce development. These measures ensure that Chihuahuan industry maintains its competitive edge while fostering inclusive economic growth.

10 Companies That Reflect the Industrial Strength of Chihuahua

1. Ford – Automotive and Auto Parts

The Ford Chihuahua Engine Complex, comprising three major production facilities, is an essential part of Ford’s global manufacturing network. By producing high-efficiency engines for export to North America and Europe, Ford contributes significantly to the local economy. The company also partners with universities and technical institutes to nurture local engineering talent and strengthen the automotive supply chain.

2. Jabil – Electronics and Advanced Manufacturing

Jabil manufactures high-precision electronics for computing, telecommunications, and medical devices. Its Chihuahua operations have created thousands of direct jobs and spurred the development of local suppliers, further solidifying the region’s reputation for advanced manufacturing excellence.

3. Foxconn – Technology Assembly and Consumer Electronics

Foxconn, the Taiwanese multinational, operates one of Mexico’s largest electronics assembly plants in Chihuahua. The facility manufactures products for global technology brands and has become a magnet for Asian suppliers, deepening the state’s integration into the global electronics value chain.

4. Safran – Aerospace and Engines

Global aerospace leader Safran has transformed Chihuahua into one of its most important production hubs in the Americas. The company’s facilities produce components for aircraft engines and aeronautical systems, supporting Mexico’s ambition to be a top-five global aerospace manufacturing nation.

5. Interceramic – Construction and Ceramic Materials

Founded in Chihuahua, Interceramic is a world-class producer of tiles and coatings, exporting to more than 20 countries. Its advanced production facilities exemplify how local companies have scaled globally while maintaining roots in the Chihuahuan industry.

6. Honeywell Aerospace – Aerospace Technology

Honeywell Aerospace manufactures navigation systems, sensors, and precision components for the global aerospace market from its Chihuahua facility. The company collaborates with local engineers and research centers to implement Industry 4.0 technologies and develop high-value innovations.

7. Grupo Bafar – Agribusiness and Processed Foods

Grupo Bafar, headquartered in Chihuahua, is one of Mexico’s largest meat processing companies. With an emphasis on sustainability, traceability, and food safety, Bafar has diversified its exports and set benchmarks for modern agribusiness practices.

8. Grupo Cementos de Chihuahua (GCC) – Infrastructure and Construction Materials

GCC plays a key role in infrastructure development across North America. From its Chihuahuan base, it supplies cement and concrete for major construction projects in Mexico and the southern United States. Recent investments focus on decarbonization and renewable energy use, reinforcing its environmental leadership.

9. BRP – Recreational Vehicles and Engines

Bombardier Recreational Products (BRP) manufactures personal watercraft, ATVs, and Rotax engines in Ciudad Juárez. Its products reach more than 100 countries, underscoring Chihuahua’s role as a global hub for recreational mobility manufacturing.

10 ZF – Auto Parts and Automotive Safety Systems

The German company ZF produces advanced braking, steering, and transmission systems for next-generation vehicles in Chihuahua. Its continuous investment in automation and quality improvement aligns with the transformation of the Chihuahuan industry toward smart manufacturing.

Workforce Excellence and Education

The success of Chihuahua’s manufacturing economy is closely linked to its human capital. The state’s universities and technical institutes—such as the Instituto Tecnológico de Chihuahua, Universidad Autónoma de Chihuahua, and Instituto Tecnológico de Ciudad Juárez—provide a steady pipeline of engineers and technicians trained in mechatronics, robotics, and industrial design. Public–private initiatives, including dual education programs, allow students to gain practical experience in multinational companies while pursuing academic training. This model has proven essential for maintaining productivity, innovation, and workforce adaptability within the Chihuahuan industry.

Toward Smart and Sustainable Manufacturing

Chihuahua’s industrial evolution is increasingly defined by digitalization, sustainability, and technological integration. The adoption of Industry 4.0 principles—such as artificial intelligence, automation, and data-driven production—is transforming operations across multiple sectors. Moreover, the state has prioritized environmental responsibility. Companies are investing in renewable energy, waste reduction, and water recycling initiatives to align with global sustainability goals. For instance, GCC’s decarbonization plan and BRP’s implementation of circular economy practices showcase how manufacturers in Chihuahua are adapting to a greener industrial model.

A Vision for the Future

Looking ahead, Chihuahua aims to become a continental hub for smart manufacturing and industrial innovation. With more than 490 IMMEX establishments, robust binational trade links, and an expanding network of industrial parks, the state offers an ideal platform for companies seeking to integrate into global supply chains. The government’s continued focus on innovation, sustainability, and workforce development ensures that the Chihuahuan industry will remain competitive in the decades to come. Through collaboration between public institutions, private companies, and research centers, Chihuahua is not only strengthening its industrial legacy but also shaping the future of advanced manufacturing in North America.

The urban transformation that the Historic Center of San Salvador has experienced in recent months has become one of the most tangible symbols of the moment that El Salvador is experiencing in terms of safety, tourism, and economic recovery.

From the emblematic “crooked house” to Plaza Libertad, the Historic Center has experienced a radical change in recent months that makes this area no longer the one that once was notorious for its congestion and insecurity, but rather a safe place full of activity and life, where history and culture are combined with commercial dynamism.

El Zócalo, a restaurant that proudly flies the Salvadoran flag, announced that it opened the eighteenth branch of the emblematic business at Portal La Dalia, in Plaza Libertad, in the Historic Center of the capital.

Entrepreneurs and investors are beginning to bet again on El Salvador, aware that the country is going through a historic turning point both in its image and in its development potential.

For the government, security has been the fundamental axis of the Historic Center’s transformation. The Minister of Economy, María Luisa Hayem, referred to it during the inauguration ceremony, where she indicated that investments of this type are only a reflection of the trust in the security that has been generated in the country.

“We have been transforming in all aspects: security, commercial atmosphere, infrastructure, and international reputation. Today, the Historic Center of San Salvador is one of the most important and safest places in the country and is a very clear example of commercial reactivation,” said Hayem.

Visibility of the New Era in San Salvador

Walking through downtown San Salvador makes it clear that there is a before and after in the Historic Center.

The abandoned colonial buildings that for years had lost their charm are now being restored, local businesses have opened, and national and foreign tourists are again filling the plazas, cafés, and museums of San Salvador’s historic center.

Music, art, and gastronomy are playing an important role in this urban regeneration that is bringing life to a district that for decades seemed condemned to ruin and fear.

The Historic Center of San Salvador is a living museum that rescues the heritage and is also a symbol of the future of Salvadoran art, with each façade that is restored, a story of resilience and hope is revealed.

Director General of the Historic Center Authority, Adriana Larín, affirmed that the district has become one of the main engines of the economic and cultural reactivation in the city, and the arrival of new investors in the area day after day is a sign of the success of the urban renewal plan.

“Private investment is a clear example of how well-organized public policies, public-private sector work can not only transform a neighborhood but also the entire country’s perception and vigor,” Larín concluded.

Gerardo Pérez, General Manager of El Zócalo, shared this optimism and expressed pride at being able to contribute to this transformation process.

“Our brand was founded in 1991; it is 100% Salvadoran, and today we are inaugurating our eighteenth branch in one of the most attractive and developed areas in the country,” Pérez said.

El Zócalo, for many Salvadorans, is a representation of the national identity with its traditional flavors and recipes in a friendly and modern environment, and the opening in the Historic Center of San Salvador is part of a new stage in the history of this emblematic restaurant.

Revitalization of the Historic Center under the Bukele Government

In this regard, the revitalization of the Historic Center is one of the flagship projects of the Bukele government, which has included the development of public spaces, restoration of landmarks, placement of new lighting, pedestrianization of streets, and strengthening of security through an innovative public-private collaboration model that has been possible under the leadership of President Nayib Bukele.

All these works have not only changed the appearance of the Historic Center but have also transformed its atmosphere. Previously, residents of San Salvador avoided going to downtown after dark, but today they walk through it with their families without fear. And tourists who had no reason to visit the capital because they associated it with traffic jams, daily crowds, and insecurity, now recommend the Historic Center as a must-visit destination when traveling to El Salvador.

Revival of Cultural and Commercial Activities in San Salvador’s Historic Center

The new panorama has also become a scene of reactivation and cultural effervescence, with the return of theaters, art galleries, and open-air concerts that exhibit the work of Salvadoran talent and give pride to citizens.

Artisan and small businesses, such as boutique cafés, are being reborn in the Historic Center thanks to increased pedestrian flow. The streets of San Salvador’s Historic Center are a showcase of how commerce and culture can feed off each other and boost joint growth.

In summary, this renewed confidence in the Historic Center responds to increased security, which has led citizens and investors to feel safe to go out and make economic transactions, be they purchases, food at a restaurant, or even the decision to open a new business.

On the other hand, for urban development experts and economists, the case of the Historic Center serves as an example of how a change in a variable such as security can have a multiplying effect on the rest of the economic and social variables.

Security Conditions Are the Catalyst for Investment Confidence

Citizens must feel safe to walk the streets, spend their money, and invest their savings in their country; and when security and stability are provided, entrepreneurs also have the incentive to open new businesses, generate jobs, and create opportunities.

In this regard, the transformation of San Salvador’s Historic Center not only represents a before and after in the urban development of the area but also embodies the current renewal of the whole country, once known internationally as a country of violence and now seen as a country that is willing to receive investment, innovation, and tourism.

As evening falls in Plaza Libertad, the Salvadoran sun gives the Historic Center’s lights a golden hue. The Plaza Libertad square vibrates to the conversations, laughter, and music of El Zócalo’s customers: signs of life, confidence, and hope in the Historic Center of San Salvador, which is today not only a testament to successful urban renewal but a symbol of a country that is rediscovering its soul in security, opportunity, and national pride.

Which Central American country will be the leader of economic growth in the region by 2025? The Economic Commission for Latin America and the Caribbean (ECLAC) has just released the answer.

Panama to Lead Growth in Central America with 4.1% GDP Expansion

In its 2025 Annual Update, the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) shows that Panama will grow by 4.1% this year, consolidating itself as the fastest-growing economy in Central America and the subregion’s great outperformer against a Latin America and Caribbean average of 2.4%.

Panama thus not only heads the ranking of the Central American economies but also of the most dynamic Latin American countries according to ECLAC, coming in fourth overall, just behind Venezuela (6%), Paraguay (4.5%), and Argentina (4.3%).

Growth Rates in Central America

In the Central American subregion, Panama is followed by Costa Rica, which is expected to grow 3.8% this year. Third place is a tie between Guatemala and Honduras, with projected growth of 3.7%. Nicaragua will register 3.1% growth, and El Salvador will post the region’s lowest GDP increase with 2.7%.

The projections for Panama and Costa Rica are significantly higher than the 2.6% average forecast for Central America in 2025 or the 1.0% for Central America and Mexico combined, reflecting the slowdown of the Mexican economy. This confirms that the economy in Central America remains uneven, with Panama and Costa Rica driving regional expansion while other nations face slower growth trajectories.

Drivers of Panama’s Economy

The services sector is still the main driver of Panama’s GDP, with the Panama Canal as its flagship project. In its Fiscal Year 2025, which ended in March 2025, Canal revenues rose by 14.4% to USD 5.705 billion, above budget.

The other big winner has been the transportation, storage, and communications sector, which has again posted excellent results this year due to higher Canal toll revenues, increased net tonnage, and container traffic throughout the National Port System. The logistics industry alone represents about 30% of Panama’s Gross Domestic Product (GDP), and it is no exaggeration to say that this is the bedrock of the Panamanian economy.

The financial intermediation sector has also posted a positive performance this year, with growth in both deposits and loans at the national level, consolidating Panama as the largest financial center in Latin America. During the first semester of 2025, Panama exported USD 9.762 billion worth of services, which represented a year-on-year increase of 8.3%.

Travel and tourism are also on the rebound, after posting positive results. Panama generated over USD 3.307 billion in travel services between January and May 2025, a 4.1% increase in international visitor arrivals over the same period a year ago.

The subregion has also been fueling demand, with remittances from abroad up by 15.1% in the first quarter of 2025 compared to the same quarter of 2024. According to official figures, Panama’s principal remittance source countries are the United States, the United Kingdom, Venezuela, Colombia, and Costa Rica.

Regional Outlook

Latin America and the Caribbean as a whole continue to be caught in what ECLAC defines as a “low-growth trap.” The average annual growth rate hovers around 2%, a number characterized by “persistent low investment, low productivity, and slow job creation,” in the words of the United Nations Economic Commission.

Sluggish external demand drivers have also lost some steam, as the region continues to expand at a slower pace, in a highly complex international environment with U.S. tariff announcements and high global uncertainty. Looking forward, ECLAC forecasts an average growth rate for Central America of 3.2% in 2026, with Panama leading again with 4.6%, followed by Guatemala (4.0%), Honduras (3.8%), Costa Rica (3.7%), Nicaragua (3.4%), and El Salvador (2.7%).

The United Nations body explains that to break out of this low-growth scenario, Latin America and the Caribbean must “accelerate the pace of productive transformation to increase economic growth and productivity, diversify its economies, and generate more and better jobs.” Strengthening the economy in Central America will depend mainly on innovation, diversification, and integration across regional markets.

The Panamanian Economy: 10 Years of Resilience

Panama’s excellent performance is not a coincidence. Between 2010 and 2022, the Panamanian economy grew at an annual average rate of 5.7%, outperforming many of its Central American peers.

It was one of the few countries in the world, and the only one in Latin America, that was able to grow even during the COVID-19 pandemic. GDP grew by 15.8% in 2021, by 10.8% in 2022, and by 7.4% in 2023.

This resilience is the result of a number of structural factors that differentiate the Panamanian economy: the strategic geographic location of the country as a natural bridge between North and South America; a services sector that accounts for more than 75% of GDP; a dollarized economy, which guarantees the stability of the exchange rate; and the sustained investment in first-class infrastructure (ports, airports, and logistics centers).

President José Raúl Mulino announced a record investment plan to boost the economy of more than USD 11 billion in the coming years, focused on the development of an energy corridor that will cross the isthmus, as well as new port terminals and a highway that will connect the Atlantic and Pacific coasts, all projects that will generate around 40,000 jobs during their construction phase.

The Situation in the Region

The rest of Central America is moving at a much more pedestrian pace, with a number of structural challenges that it must face up to as a matter of urgency. The ECLAC report highlights that the subregion is highly vulnerable to external shocks, given its structural dependence on the U.S. economy for its trade, finance, and migration.

Costa Rica, which comes in second in the ECLAC growth ranking, is being driven by strong domestic consumption and expansion of the technology and advanced manufacturing sectors. Guatemala has also maintained a favorable outlook due to its services sector, private consumption, and remittance inflows. Honduras, in turn, has grown thanks to a solid coffee industry, controlled inflation, and international reserves of more than USD 8 billion.

The challenge for the rest of Central America is to diversify the productive matrix, de-emphasize dependence on traditional low-value-added sectors, and increase capacity for innovation to make a move from reactive to proactive economic growth. A coordinated regional strategy could help strengthen the economy in Central America, enabling it to achieve more balanced and sustainable development across all member nations.

In a recent development, Chile and Canada have announced the successful signing of the strategic partnership agreement modernization, which renews the terms of their longstanding relationship. The new agreement modernizes the 2023 partnership by adding four new pillars in addition to trade, focusing on 21st-century challenges of mutual interest: gender equality, climate change, critical minerals, and Indigenous people. “The modernization of the Strategic Partnership between Canada and Chile reflects the evolution of our societies’ priorities and is a blueprint for future-oriented cooperation between our nations,” said van Klaveren.

Prime Minister Trudeau and President Boric met on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit in South Korea and led the official discussions around the modernization, which were concluded in a subsequent meeting between the two Ministers of Foreign Affairs. In a press conference following the bilateral signing ceremony, both Prime Minister Trudeau and President Boric described the modernization of the agreement as a confirmation of Chile and Canada’s historical alliance, as well as a more pointed effort to refocus their shared goals to better address global and local challenges of the present day. The two leaders’ speeches and the official Joint Declaration identified core areas of similarity in Chile and Canada’s approach to international affairs, emphasizing democracy, environmental stewardship, and economic modernization as defining characteristics of both states. The original Partnership for Prosperity and Growth was first signed in 2007, and modernized this year, to enhance bilateral trade and investment relations. However, in its new version, the modernized agreement seeks to deepen and widen the relationship, incorporating a more comprehensive and globally oriented agenda for cooperation.

The Agreement Modernization Expands on the Original Framework

Notably, while trade and investment continue to serve as the foundation for Chile and Canada’s bilateral relations, the modernized agreement includes areas of collaboration beyond the economic, emphasizing the intertwined nature of social, environmental, and economic policies. As van Klaveren said in his opening remarks, the new Framework Agreement for Strategic Partnership “addresses our societies’ evolving priorities” with a joint commitment to implementing free, fair, and rules-based trade in a globalized, climate-constrained world. The inclusion of a pillar on gender equality signals both governments’ shared interest in ensuring women’s full participation and leadership at home and abroad, as well as the equitable application of national and international policy. Climate change and polar affairs, as well as Chilean and Canadian Arctic collaboration, are also central to the agreement, reflecting the existential nature of environmental and climate policy for both states and their citizens. Chile and Canada have ambitious goals and significant capabilities in the sustainable development and processing of critical minerals, a pillar that directly links the other three in the modernized agreement and to the broader 21st-century challenges. Both states have long been leaders in mining for copper, lithium, nickel, and other minerals key to the global transition to renewables, and are taking steps to ensure the sector remains sustainable, safe, and productive in the long term.

Canadian Investment and Chilean Exports

For two decades, Chile and Canada have steadily expanded bilateral trade and investment, which has served to strengthen both economies and create business and employment opportunities in each country. The latest data from Global Affairs Canada and Chile’s Ministerio de Hacienda indicate that total trade between the two nations exceeded CAN$2 billion in 2025, making Canada Chile’s single largest foreign investor. Notably, as in many other countries, mining represents the majority of Canadian investment stock in Chile, with active participation in the energy, infrastructure, and technology sectors as well. In van Klaveren’s press statement, he reaffirmed Canada’s key role in Chile’s economic modernization over the past two decades, bringing not just capital, but technology and high-value-added knowledge transfer. Canada remains the most important trade and investment partner for Chile in the mining sector, with active engagement in exploration, extraction, and innovation in processing and technological applications for Chile’s vast copper, lithium, and other critical mineral resources. As part of the modernization, Chile and Canada have committed to greater regulatory alignment and standardization on issues that directly impact the sector, such as climate change, environmental impact, and social inclusion, in particular Indigenous collaboration and cooperation. This cooperation has not yet been finalized, but it is to include not just dialogue but shared action plans and joint initiatives, with the understanding that foreign investment will support not extractive exploitation but rather responsible stewardship of natural resources.

Joint Action on Climate Change and Energy Transition

Prime Minister Carney made it a point to underscore the particular significance of strengthening cooperation on critical minerals, clean energy, wildfire management, and digital technologies. In other words, Canada and Chile have an opportunity, in both bilateral and multilateral settings, to not only speak but act together to the benefit of their own peoples and the world at large. Canada has supported Chile’s efforts to diversify its economy in the past, and this new version of the agreement is built on that model of mutually beneficial long-term cooperation. The two countries plan to establish closer working relationships with governments, private enterprises, and educational and research institutions with the goal of developing new initiatives on lithium extraction, battery manufacturing, and renewable energy systems, all of which are in high demand on the global market. These initiatives are all already in Canada’s national critical minerals strategy, which highlights international cooperation, responsible sourcing, green innovation, and productivity as the four central pillars to guide the sector’s development over the coming years. Prime Minister Carney also emphasized the importance of cooperation in wildfire management and prevention, an area where both countries are deeply interested and increasingly active as climate change takes its toll.

Cultural Exchange and Social Inclusion

Beyond the more technocratic aspects of the modernized agreement, Chile and Canada have also signaled their commitment to joint action in the area of social inclusion and cultural exchange. Indigenous cooperation is a separate pillar of the new Strategic Partnership, demonstrating the importance the two governments give to promoting and protecting Indigenous peoples and their rights. Canada’s decades-long national reconciliation process provides a potential model for Chile, where government and Indigenous groups continue to discuss autonomy, land rights, and cultural preservation. Joint programs to support education, sustainable development, and local governance could open new channels of communication and best-practice sharing between Indigenous peoples in Canada and Chile. Finally, the gender equality pillar of the modernized agreement dovetails with ongoing domestic policies in Chile that aim to create equal opportunities for women in business, government, and society in general. Both governments have committed to encouraging women’s participation in science, technology, and business leadership, as well as in foreign service and diplomacy, as a priority for building a better future for all.

The Milei government is advancing a package of reforms to bring about a structural change in the Argentine economy. The head of State has designed an economic offensive in Argentina that seeks to dismantle rigid regulations, simplify a complicated tax system, and restore investor confidence in one of the most volatile markets in Latin America. Javier Milei, the economist turned political outsider, has long argued that Argentina’s economic stagnation is a product of an oversized state, labor rigidity, and a suffocating tax burden. Now, from the Casa Rosada, he is putting those ideas into practice with a set of measures that could upend the country’s economic order.

The flagship of Milei’s program is twofold: an ambitious labor reform to modernize the employment system and a drastic tax reduction that, in the administration’s view, will revitalize the productive sector. The scope of the plan is enormous, and so are the challenges that lie ahead. The country’s Congress is deeply divided, and powerful labor unions are gearing up to fight what they consider an attack on hard-won worker rights.

Argentina’s economic crisis is not new. Inflation, which has topped 100 percent, continues to devour wages and savings. For much of the population, a trip to the supermarket is a bitter exercise that makes them feel like hostages of decades of mismanagement and populist cycles. Against this scenario, the economic offensive in Argentina is betting on a bet on radical change: a commitment to tear down old institutions and unleash market forces that, so they say, can restore stability and growth.

Labor Reform: Flexibility vs. Social Protection

The first pillar of Milei’s strategy is labor reform. The proposal is aimed at simplifying the complex rules that regulate the relationship between employers and employees, reducing litigation, and introducing more flexibility in hiring and firing. They argue that this would encourage businesses, especially small and medium-sized ones, to formalize employment, reducing the well-known informal work that afflicts nearly half of the country’s workers.

The reform’s defenders argue that Argentina’s rigid labor laws, many of them dating back to the mid-20th century, scare off investment and hinder companies’ growth. By making contracts more flexible and reducing bureaucratic costs, they believe the economy could generate hundreds of thousands of formal jobs by 2027.

But unions and opposition leaders warn that the reform could reverse decades of progress in worker protection. They fear a step towards precarious employment, less job security, and weaker collective bargaining power. For them, the labor reform is not modernization; it is deregulation at the expense of social justice.

This ideological battle is at the heart of Milei’s presidency, trying to reconcile the need for competitiveness with the preservation of social cohesion. The fight over labor reform will be key to the economic offensive in Argentina, since it sets two visions of progress against each other, one based on market dynamism, the other on social rights.

Tax Reduction: A Radical Simplification

Along with labor reform, the Milei government is advancing an equally audacious fiscal proposal. The president has proposed eliminating up to twenty different taxes, many of which are considered inefficient or distortive. Among the taxes to be repealed are some that are repeated between the national and provincial levels, generating a network of red tape that discourages investment and production.

Defenders of this tax reform argue that Argentina’s tax pressure is one of the highest in the region and has long choked private initiative. Simplifying the system and reducing the overall burden would make the country more competitive and attract both domestic and foreign capital. This boost of confidence, they hope, will translate into job creation and sustained growth.

Critics, on the other hand, point out the fiscal cost that this proposal would entail. Argentina’s public finances are already stretched, and eliminating taxes without a clear plan to offset the loss of revenue could jeopardize essential public services such as education, health, and social assistance. The government argues that the expansion of the formal economy would eventually offset the initial revenue loss, but many economists and opposition lawmakers are skeptical.

The challenge, therefore, is to find a balance between fiscal prudence and economic stimulus. Done carefully, the tax reform could mark a turning point in Argentina’s long-term economic recovery; badly managed, it could deepen the fiscal deficit and trigger new instability.

Political and Institutional Resistance

In addition to the technical aspects, the success of Milei’s reforms also depends on his ability to lead a fragmented political landscape. The president faces a Congress in which his party has a minority of seats, forcing him to negotiate with governors and opposition groups that have little interest in giving him excessive powers.

Labor unions, historically powerful in Argentine politics, are already mobilizing strikes and demonstrations to defend what they call “conquests of the working class.” The Peronist opposition, still reeling from the electoral defeat, is already sniffing that confrontation as an opportunity to regroup and reassert its hegemony.

Milei, however, remains undeterred. In his speeches, he frames the conflict as a battle between those who want to maintain the status quo and those willing to break with decades of stagnation. His rhetoric is appealing to sectors of the population that are exhausted by inflation, corruption, and the recurrent crises. But to maintain that support he will have to provide results, lower inflation, create jobs, and restore confidence.

A Paradigm Shift or a Risky Gamble?

For many observers, what is at stake is more than a series of policy changes: it is a paradigm shift in how Argentina understands the state and the market. The economic offensive in Argentina that Milei is leading could redefine the country’s trajectory and open the door to a more liberal, investment-friendly model, similar to the changes that have taken place in Chile or even in Eastern Europe after the fall of communism.

However, Argentina’s reality is unique, with deep inequalities, institutional fragility, and a population accustomed to the State’s hand. Whether Milei’s experiment can achieve prosperity without unleashing new cycles of social protest remains to be seen.

For now, optimism and skepticism coexist in equal parts. Investors are watching closely, unions are on the move, and ordinary Argentines continue to live in daily inflation and economic uncertainty. What is clear is that Milei has unleashed an economic offensive in Argentina unlike any seen in decades, which could propel the country towards long-awaited stability or plunge it into a new cycle of turbulence.