International

Chilean President abandons his fiscal reform and presents new proposal

Photo: MSM

August 2|

Chilean President Gabriel Boric said on Tuesday that his government will not insist on a rejected tax reform bill and will promote new initiatives to raise the necessary funds to address some of its promised social proposals.

In June, the leftist ruler had said that his government would insist at the end of July in the Senate to resume the legislative processing of the tax adjustment.

Through a new Fiscal Pact, Boric said that the spending proposals involve resources for 8,000 million dollars to finance programs such as the Universal Guaranteed Pension to improve the lowest pensions, reduction of waiting lists in health, as well as greater investment in citizen security.

“This proposal considers the contribution made by growth, the reform of the state, the strengthening of tax oversight and taxes paid by the higher income sectors to be able to finance in this way the social expenses that are urgent,” he said in a televised speech.

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“We are not going to insist in the Senate with the bill that was previously rejected”, he added.

Boric did not specify deadlines for the delivery and processing of the initiatives, or how much the total collection is expected to be.

The government’s new proposal will be divided into two projects, one to improve tax compliance and the other to adjust income tax focused on those with greater resources.

“This initiative will also include tax incentives for investment, productivity and formalization, as well as benefits for the middle class and a new regime for smaller companies,” he said.

He specified that the tax incentives would be equivalent to 0.5 points of the Gross Domestic Product (GDP).

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The first project includes measures that seek to increase tax collection through legal modifications that do not imply a tax increase, which would increase tax collection by 1.5% of the GDP in net terms, according to a government minute.

Meanwhile, the second will be focused on income tax for both companies and individuals and will include incentives for investment, productivity and formalization, as well as benefits for the middle class and the new tax regime for smaller companies, which would have a fiscal cost of 0.5% of GDP.

At the investment level, tax incentives such as semi-instantaneous depreciation and a tax credit fund for investments with a multiplier effect on activity, employment and environmental sustainability are proposed.

It also commits to reduce by 30% the processing time for mining projects, according to the minutes.

Additionally, the plan includes five priority areas of productive diversification that by 2026 foresees three or four new lithium projects, two thirds of the energy matrix with renewable sources, 10-12 projects in the development of green hydrogen and an increase in the digital economy.

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The original tax reform bill was rejected in March by the deputies and the government could only insist on its passage through the Senate.

International

Mexico and Guatemala Agree on Five-Point Binational Plan for 2027

Mexico and Guatemala agreed Tuesday on a 2027 Binational Plan built around five areas of cooperation, along with a schedule of meetings and initiatives aimed at making progress by the end of 2026 on security, border infrastructure, human mobility, development and technical and social cooperation.

The agreement was announced by the foreign ministers of both countries following a meeting in Mexico City.

Mexican Foreign Minister Roberto Velasco said the plan will establish the “direction and priorities” of bilateral relations for next year. His Guatemalan counterpart, Carlos Ramiro Martínez, said the meeting allowed both governments to make decisions, schedule activities and revitalize bilateral cooperation mechanisms.

Security and border infrastructure

In the area of security, the two governments have nearly completed negotiations on a new memorandum of understanding for the Mexico-Guatemala High-Level Security Group (Ganseg), which was reactivated in 2025.

The countries expect to sign the agreement in the coming months to strengthen coordination and their ability to respond to shared security threats.

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Regarding their nearly 1,000-kilometer shared border, Mexico and Guatemala agreed to advance infrastructure improvements at border crossings and continue work on a joint cargo clearance program between Ciudad Hidalgo and Tecún Umán, two border areas separated by the Suchiate River.

The measures are intended to facilitate bilateral trade while making cross-border exchanges safer and more efficient.

The two governments will also continue defining a route toward a railway connection between their countries through Line K of Mexico’s Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT), with the aim of strengthening economic and community ties.

Migration and development

On human mobility, Mexico and Guatemala will maintain coordination to ensure safe, orderly and dignified returns, while strengthening protection for people in transit.

The bilateral agenda also includes a second phase of the Sembrando Vida program in Guatemala, which is expected to benefit 10,000 people across 15 departments.

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Both countries will also advance initiatives under Juntos para el Bienestar, as well as six technical, scientific and energy cooperation projects approved by the Joint Commission.

The agreements seek to strengthen bilateral ties and establish concrete priorities for cooperation between Mexico and Guatemala during 2027.

International

France to Expel Two Iranian Diplomats Over Alleged Attack on French Officials

French Foreign Minister Jean-Noël Barrot announced Tuesday, August 18, 2026, that France will expel two Iranian diplomats in response to what Paris described as an attack on two French representatives in Iran last month.

“Two French diplomats were scandalously and deliberately assaulted on July 19. I had announced that this intolerable act would have consequences. It has now happened. Two Iranian diplomats in France will be expelled in the coming days,” Barrot said in a message posted on X.

The two Iranian diplomats have been declared persona non grata and will be required to leave France within the coming days, according to the French foreign minister.

About a month ago, Barrot said that two members of the French diplomatic staff had been detained by Iranian security forces for several hours. One of them was also subjected to harassment, he said.

The French government described the incident as an “extremely serious act of intimidation” that violated diplomatic immunity.

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The two French embassy staff members were working on programs supporting Iranian civil society, particularly initiatives involving artists and researchers.

Iran has denied France’s allegations regarding the incident. The diplomatic dispute comes amid already strained relations between Paris and Tehran.

International

Heat wave puts more than 70 million Americans under alerts as temperatures near 46°C

36 deaths reported due to heat wave in Nuevo Leon, Mexico

More than 70 million people remained under heat alerts Monday as an intense heat wave continued across the southern United States, particularly Florida and states along the Mexican border, where temperatures and heat indexes could reach as high as 46 degrees Celsius, according to the National Weather Service (NWS).

Several cities recorded or tied temperature records over the weekend and into Monday, including Miami and Fort Lauderdale in Florida; Laredo, Borger and Austin’s airport in Texas; Atlanta, Georgia; Raleigh and Charlotte, North Carolina; and Memphis, Tennessee.

The NWS warned that the heat wave will continue affecting the southern and southeastern United States, with maximum temperatures expected to remain near 38°C to 40°C for several days. The heat index, which combines temperature and humidity to estimate how hot conditions feel, could reach 46°C.

The extreme heat is also spreading into the Southwest, where temperatures began rising again between Monday and Tuesday. Forecast highs in the region range from about 38°C to 43°C.

Heat alerts remain in effect across Nevada, Arizona and California, including areas in southern Arizona and California near the Mexican border, as authorities warn of the risks posed by prolonged extreme temperatures.

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The NWS urged residents to limit outdoor activity, stay hydrated, ensure access to air conditioning or cooling centers, and check on vulnerable friends, neighbors and family members.

The United States is experiencing a summer marked by above-average temperatures and repeated heat waves. One of the most intense episodes occurred during the July 4 weekend, when extreme heat was blamed for roughly 30 deaths.

July was the hottest month ever recorded in the United States since measurements began, with the average temperature across the contiguous country approaching 25°C, according to the National Oceanic and Atmospheric Administration (NOAA).

The combination of extreme heat and drought conditions has also fueled wildfires. Nearly 3 million hectares have burned across the country so far in 2026, making it the largest area affected by wildfires in a decade.