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Brazil’s Lula appoints former mayor as finance minister

Photo: NELSON ALMEIDA / AFP

| By AFP |

Brazil’s president-elect Luiz Inacio Lula da Silva on Friday named former Sao Paulo mayor Fernando Haddad, viewed unfavorably by many in the business community, as his finance minister.

Lula da Silva, who narrowly defeated incumbent Jair Bolsonaro in October elections, unveiled ministers in the key posts of foreign affairs, justice, defense, and chief of staff.

However, all eyes were on his pick for finance minister, with markets nervous over the incoming government’s commitment to fiscal discipline and the inflation-hit economy in fragile recovery.

“(I chose) comrade Fernando Haddad as Minister of Finance,” Lula said during a press conference in the capital Brasilia.

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Haddad, 59, who served as education minister from 2005 to 2012, succeeds powerful liberal economy minister Paulo Guedes, an ally of far-right President Jair Bolsonaro.

After Lula’s new government takes office following his January 1 inauguration, the economy ministry will be dissolved and transformed into finance, industry and planning agencies.

When Haddad’s name started circulating for the role, markets reacted with unease, viewing him as too much on the left and fearing he would jeopardize the budgetary balance.

“He represents the heterodox economic policy” that Lula’s Workers’ Party (PT) defends, said Antonio Madeira of the MCM consultancy firm.

Madeira said that with Haddad in the finance ministry, he expects “an increase in spending” and “a more assertive state giving a significant role to public companies.”

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Despite some of the reluctance towards Haddad, the Sao Paulo Stock Exchange’s Ibovespa index was up Friday by 0.5% after the names of the future ministers were announced.

Lula also tapped Mauro Vieira as foreign minister. 

Vieira is a 71-year-old career diplomat who has already served as foreign minister as well as ambassador to Argentina, the United States and the United Nations.

He is currently serving as ambassador to Croatia, which on Friday knocked Brazil out of the World Cup.

For the justice ministry, Lula appointed Flavio Dino, a former governor of the northeastern state of Maranhao.

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Rui Costa, governor of the province of Bahia, was named to a ministry that falls between the roles of prime minister and chief of staff.

Jose Mucio Monteiro, a civilian, was named defense minister.

After appointing five white men to the key ministries, Lula promised that “in time, you will see more women than men here … as well as a number of Afro-Brazilians.”

“We will try and form a government in the image of Brazilian society.”

Lula, a former unionist who already served two terms as president between 2003 and 2010, said that he would announce the names of more ministers next week and he has “not yet decided the total number of ministers” he would have in his government.

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One of the most highly anticipated posts is that of the environmental minister, who will play a crucial role as Brazil seeks to tackle deforestation in the Amazon.

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Central America

U.S. and Regional Allies Back Panama Amid Dispute With China

The United States, Bolivia, Costa Rica, Guyana, Paraguay and Trinidad and Tobago issued a joint statement in support of Panama’s sovereignty, arguing that China’s recent actions represent an attempt to politicize maritime trade and undermine the sovereignty of nations in the hemisphere.

“We are closely monitoring China’s selective economic pressure and recent actions affecting vessels flying the Panamanian flag,” the statement released Tuesday said. “Panama is a pillar of our maritime trading system and, as such, must remain free from undue external pressure.”

The statement comes amid growing tensions surrounding the Panama Canal and the operation of key ports linked to global trade.

At the end of January, Panama’s Supreme Court invalidated the legal framework supporting the 1997 concession that granted Panama Ports Company, a subsidiary of CK Hutchison, the right to operate the Balboa and Cristóbal terminals located on the Pacific and Atlantic entrances of the Panama Canal.

The ruling followed mounting pressure from the United States to curb Chinese influence around the strategic waterway, through which roughly 5% of global maritime trade passes.

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CK Hutchison, which managed the ports for nearly three decades, rejected the court’s decision and accused Panamanian authorities of illegally confiscating its assets. The company has launched international arbitration proceedings against Panama, seeking more than $2 billion in damages.

Following the court ruling, reports emerged of increased detentions and inspections of Panamanian-flagged vessels in China, actions widely viewed as retaliatory measures.

On Wednesday, China’s Foreign Ministry dismissed the joint statement as “completely unfounded and misleading,” accusing the United States of politicizing port operations and warning that Beijing would take steps to protect its interests in Panama.

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International

King Charles III Says U.S.-UK Alliance Is “Irreplaceable and Unbreakable”

King Charles III of the United Kingdom reaffirmed the strength of the British-American relationship on Tuesday during a speech before the United States Congress, describing the alliance between the two nations as “irreplaceable and unbreakable.”

The address, delivered at the Capitol, marked the first speech by a British monarch before Congress since Queen Elizabeth II in 1991 and comes at a time of political tensions between Donald Trump’s administration and the Labour government of Prime Minister Keir Starmer.

“As President Trump himself observed during his state visit to Britain last autumn, the bond of kinship and identity between the United States and the United Kingdom is invaluable and eternal. It is irreplaceable and unbreakable,” the king said.

While reflecting on the upcoming 250th anniversary of U.S. independence, which will be commemorated this year, Charles III stated that the partnership between the two countries “was born out of disagreement, but is no less strong because of it.”

The monarch emphasized the democratic values shared by both nations and noted that major global changes have occurred whenever the two allies found common ground.

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“When we have found that way to agree, great changes have taken place not only for the benefit of our peoples, but for all peoples,” he said.

King Charles also quoted British Prime Minister Keir Starmer, who recently described the relationship as “an indispensable alliance.”

Concluding his speech, the monarch described the shared history of the United States and the United Kingdom as “a story of reconciliation, renewal, and an extraordinary partnership.”

He added that Washington and London have forged “one of the most consequential alliances in human history.”

“I pray with all my heart that our alliance continues to defend our shared values, together with our partners in Europe, the Commonwealth, and around the world, and that we ignore calls urging us to become increasingly isolationist,” Charles III stated.

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The king ended by urging both nations to “recommit to one another in selfless service to our peoples and to all peoples of the world.”

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International

Trump Administration Considers Denying Green Cards Over Political Views

The administration of President Donald Trump is evaluating new immigration guidelines that could deny permanent residency to immigrants based on their political views, according to a report published by The New York Times.

The proposed measures, outlined in internal Department of Homeland Security documents, would instruct immigration officials to take applicants’ public expressions and ideological positions into account when reviewing green card applications.

According to the report, cases involving “possible anti-American and/or antisemitic conduct or ideologies” would need to be referred to higher authorities for additional review.

Even if applicants have not violated any laws, authorities could still reject residency requests if they determine that individuals have “endorsed, promoted, or supported anti-American views.”

Among the factors listed in the guidelines are participation in pro-Palestinian activities, actions considered antisemitic, and the burning of the U.S. flag.

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The documents reportedly describe such actions as “heavily negative” factors in immigration evaluations, potentially blocking applicants from obtaining permanent residency and, eventually, U.S. citizenship.

The directives also place particular attention on demonstrations held on university campuses following the 2023 Hamas attacks against Israel.

However, flag burning has previously been recognized by the U.S. Supreme Court as a form of protected free speech under the Constitution.

The proposal has sparked criticism from immigrant advocacy organizations, including the New York Immigration Coalition.

Its president, Murad Awawdeh, warned that the policies could pose a threat to fundamental rights and freedoms.

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