Kast Deploys Water Cannons and Tear Gas Against Thousands of Students in Santiago as Diesel Surges 60% and Disapproval Hits 49% — Argentina Declares Mexico’s CJNG a Terrorist Organisation After El Mencho’s Death — Bolivia’s Contaminated Gasoline Crisis Paralyses La Paz Before Government Deal — Brazil’s Antifascist Conference Opens in Porto Alegre as Bloomberg Reports Lula Struggling Against Bolsonaro’s Poll Surge — Mexico’s Senate Passes Plan B Electoral Reform but PT Blocks Revocación de Mandato — Colombia’s Márquez Manhunt Enters Second Day
Executive Summary
The Big Picture: Today’s Latin American Pulse is dominated by streets on fire. In Santiago, Kast’s government answered its first mass protest with water cannons, tear gas, and pepper-gas armoured vehicles — the most aggressive police deployment since the 2019 estallido. In La Paz, a contaminated gasoline scandal paralysed Bolivia’s capital before a four-point deal was brokered Thursday night. And in Porto Alegre, thousands marched to open the first International Antifascist Conference as Brazil’s political season begins in earnest. This is part of The Rio Times‘ comprehensive coverage of Latin American financial markets and economic developments.
Chile’s student movement returned to the Alameda for the first time under Kast. Thousands of secondary and university students marched against a 3% education budget cut, the elimination of university gratuidad for those over 30, and a historic diesel price increase of approximately 60%. Carabineros deployed water cannons, tear gas, and — for the first time — armoured vehicles with pepper-spray systems. Six Metro stations were shut. Kast’s disapproval jumped from 37% to 49% in less than two weeks. The president warned the state would respond “with the full force of the law.”
Argentina’s government declared Mexico’s Cártel Jalisco Nueva Generación (CJNG) a terrorist organisation, adding it to the national terrorism registry (RePET). The move follows the death of CJNG leader Nemesio Oseguera Cervantes (“El Mencho”) in a Mexican military operation on February 22, and aligns with the Trump administration’s “Shield of the Americas” strategy. The CJNG operates in at least 40 countries including Argentina, where it has been linked to money laundering since at least 2009.
Bolivia’s transport strike — triggered by contaminated gasoline that damaged over 10,000 vehicles — escalated to indefinite action Wednesday before a government deal was reached Thursday evening. YPFB admitted gum and manganese residues had contaminated fuel. Bolivia imports 86% of its diesel and 54% of its gasoline. Even three former presidents reported vehicle damage.
Regional Mood
The region’s right-wing governments are discovering that governing costs more than campaigning. Kast is three weeks in and already facing street protests that echo 2019 — the very crisis that ultimately produced the constitutional convention he opposed. Milei is aligning with Trump’s cartel strategy but at the cost of diplomatic complexity with Mexico. Bolivia’s Rodrigo Paz, four months in, is learning that fuel quality is as political as fuel price.
Markets reflected the tension. All five tracked Latin American indices fell Thursday after Wednesday’s broad rally. The Ibovespa dropped 1.45%, IPC Mexico gave back 1.65%, and COLCAP was the worst performer at −1.77%. Gold and silver bounced (+1.65% and +2.62%), signalling a return to safe-haven demand. Bitcoin held flat near $68,762.
Risk Snapshot
| Country | Key Driver | Risk Level |
|---|---|---|
| Chile | Riot police vs students in Santiago; diesel +60%; education cuts; disapproval 49%; Metro shut; 2019 echoes | CRITICAL |
| Colombia | Márquez manhunt day two; C-130 overload probe; 19 bodies identified; black box to US; May 31 election | CRITICAL |
| Bolivia | Contaminated gasoline; transport strike settled after 4-point deal; 10,000+ vehicles damaged; YPFB credibility crisis | ELEVATED |
| Argentina | CJNG declared terrorist org; RePET registry; Shield of Americas alignment; Milei-Trump axis deepening | ELEVATED |
| Brazil | Antifascist conference Porto Alegre; Bloomberg: Lula struggling vs Flávio Bolsonaro; BCB quarterly report; Selic 14.75% | ELEVATED |
| Mexico | Senate passes Plan B (87-41); PT blocks revocación; Banxico held 7%; diesel price cap negotiated; inflation 4.63% | ELEVATED |
Chile: Kast Sends Riot Police Against Students as the Alameda Burns Again
Water cannons, tear gas, pepper-spray armoured vehicles deployed; diesel up ~60%; 3% education budget cut; gratuidad under threat; six Metro stations closed; disapproval surges to 49%; Baquedano monument vandalised; Kast vows “full force of the law”
What Happened
- —The march: Thousands of secondary and university students poured onto Santiago’s Alameda Thursday, marching from the former Congress building toward the Ministry of Education. The mobilisation was called by the Confech (university federation) and ACES (secondary students’ assembly) under the slogan “Against the rollback, we march.” It was the first mass student protest under Kast’s presidency, three weeks after his March 11 inauguration.
- —The response: Carabineros deployed water cannons, tear gas, and — for the first time — armoured vehicles equipped with pepper-spray systems in central Santiago. Metro closed six Line 1 stations including Los Héroes, La Moneda, Universidad de Chile, and Baquedano. Hooded individuals set fire to barricades at Alameda and Santa Rosa. The perimeter of the Baquedano monument was vandalised. From La Moneda, Kast warned the state would respond “with the full force of the law” and presented a palliative decree freezing public transport fares in Santiago.
- —The grievances: Students protested a 3% budget cut across all ministries including Education, the proposed elimination of free university education for students over 30, and the historic fuel price increase announced March 23. Diesel has surged approximately 60%. The ACES framed the movement as broader resistance to immigration restrictions, environmental rollbacks, and what they described as an offensive against social movements. The Colegio de Profesores endorsed the mobilisation.
- —Political fallout: Kast’s disapproval has jumped from 37% to 49% in under two weeks, now exceeding his approval. The government is evaluating a possible pardon for Carabineros convicted of human rights violations during the 2019 protests — a move that would inflame the opposition further. IPSA fell 0.12% to 10,397.03.
Why It Matters
Three weeks. That is how long Kast lasted before the Alameda became a battleground again. The 2019 estallido social was triggered by a Metro fare increase of 30 pesos. This time the trigger is a 60% diesel hike, education cuts, and an environmental rollback that has united students, environmentalists, and unions against a government that won on security, not austerity.
The deployment of pepper-spray armoured vehicles is an escalation. Kast has a legislative majority and zero tolerance for street politics. But his coalition has no buffer for economic discontent. If fuel costs, education cuts, and deregulation converge into a single grievance narrative, Chile could face the same social-pressure dynamic that destabilised Piñera — except this president is ideologically committed to not yielding. The border trench project continues in the north while the streets burn in the capital.
Key Watch
Protest escalation trajectory. Union response. Carabineros pardon debate. BCCh rate decision. Copper as fiscal counterweight. Student movement coordination with workers.
RISK: CRITICAL
Argentina: Milei Declares CJNG a Terrorist Organisation in Trump Alignment
Cártel Jalisco Nueva Generación added to national terrorism registry; El Mencho killed February 22; CJNG operates in 40+ countries including Argentina; follows “Shield of the Americas” summit; financial sanctions and asset freezes enabled
What Happened
- —The designation: President Milei’s government formally declared the Cártel Jalisco Nueva Generación (CJNG) a terrorist organisation on Thursday, adding it to Argentina’s Registro Público de Personas y Entidades vinculadas a Actos de Terrorismo y su Financiamiento (RePET). The decision was coordinated between the Cancillería, the Ministries of Security and Justice, and the intelligence service (Secretaría de Inteligencia del Estado).
- —Context: The CJNG was led for over a decade by Nemesio Oseguera Cervantes (“El Mencho”), who was killed on February 22, 2026, in a Mexican military operation in Tapalpa, Jalisco. His death triggered narco-blockades, vehicle burnings, and armed clashes across Mexico. The US designated the CJNG a foreign terrorist organisation in February 2025; Canada followed in 2024. Argentina’s move aligns with the Trump administration’s March 7 “Shield of the Americas” summit, which excluded Mexico and Colombia.
- —Argentine operations: The CJNG has been linked to money laundering in Argentina since at least 2009, when members attempted to open a supermarket in Buenos Aires’s Puerto Madero district. In 2016, investigations revealed Los Cuinis — the CJNG’s financial arm — held properties and shell companies in the country. The RePET designation enables asset freezing, transaction restrictions, and enhanced monitoring of CJNG-linked financial flows. MERVAL fell 1.28% to 2,769,368.97.
Why It Matters
This is Milei deepening Argentina’s integration into Washington’s hemispheric security architecture. The RePET designation carries real financial consequences — frozen assets, blocked transactions, restricted banking — but its primary function is signalling. Argentina is telling Washington: we are a reliable partner in the cartel war. This positions Buenos Aires for preferred treatment in the next round of US trade and security negotiations.
The diplomatic risk is with Mexico. Sheinbaum’s government was conspicuously excluded from the “Shield of the Americas” summit. Declaring Mexico’s most powerful cartel a terrorist organisation from Buenos Aires — while Mexico is dealing with post-Mencho chaos domestically — is a provocation that complicates regional trade dynamics. Milei does not appear to care.
Key Watch
Mexico’s diplomatic response. CJNG financial flows in Argentina. Post-Mencho cartel restructuring. Shield of Americas next steps. Milei–Trump bilateral dynamics.
RISK: ELEVATED
Bolivia: Contaminated Gasoline Crisis Paralyses La Paz Before Government Deal
Transport strike went indefinite Wednesday; four-point deal Thursday; YPFB admitted gum and manganese contamination; 10,000+ vehicles damaged; Bolivia imports 86% of diesel and 54% of gasoline; ex-presidents’ cars also affected; commission to verify fuel quality at source
What Happened
- —The crisis: La Paz and neighbouring El Alto were paralysed Wednesday and Thursday by a transport strike over contaminated gasoline distributed by the state oil company YPFB. Drivers blocked access roads to both cities, forcing residents onto the teleférico system and creating massive queues. The strike escalated from 24 hours to indefinite action Wednesday night after nine transport federations voted to continue.
- —The contamination: YPFB admitted in February that storage tanks contained residues of gum and manganese that contaminated the gasoline supply. Over 10,000 vehicles have reported engine damage costing between $100 and $5,000 each. The damage was so widespread that three former presidents — Evo Morales (2006-2019), Carlos Mesa (2003-2005), and Jorge Quiroga (2001-2002) — all reported their own vehicles were affected. The Colegio de Ingenieros Mecánicos estimated 60% of vehicles in workshops had gasoline-related faults.
- —The deal: After hours of negotiations Thursday between transport leaders and five government ministers, a four-point agreement was reached. It includes joint commissions to verify fuel quality at source (including in Arica, Chile, and Peru), guaranteed compensation within 72 hours for verified damage, credit deferrals for affected drivers, and the immediate lifting of all blockades. The strike was suspended Thursday evening.
- —Structural vulnerability: Bolivia imports 86% of its diesel and 54% of its gasoline — a near-total dependency on external supply. YPFB has paid approximately $357,000 in initial compensation. Parliamentary opposition demanded the resignation of the Hydrocarburos minister, the YPFB president, and the ANH director. The Senate created an investigative commission.
Why It Matters
Rodrigo Paz has been president for four months. In January, he raised fuel prices as an anti-crisis measure. Now the fuel itself is poisoning engines. Bolivia’s hydrocarbon infrastructure has been deteriorating for years — gas production is falling, imports are rising, and the foreign currency reserves needed to pay for those imports are shrinking. The contamination scandal exposes the fragility of the entire supply chain.
The transport sector in Bolivia is one of the most politically organised constituencies. If the four-point deal unravels — and transport leaders explicitly warned they would return to the streets if it does — Paz faces the same destabilisation dynamic that has toppled Bolivian governments before. Seven gubernatorial runoffs on April 19 add another layer of pressure.
Key Watch
72-hour compensation deadline. Quality verification commissions. Senate investigation. YPFB leadership. Fuel import dependency. April 19 runoffs.
RISK: ELEVATED
Regional Snapshot
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Brazil The 1st International Antifascist Conference opened Thursday in Porto Alegre with a massive street march and panels featuring legislators from Brazil, Argentina, France, Portugal, Spain, Turkey, and Cuba. Over 3,000 registered from 30 countries. The conference runs through March 29 at the Legislative Assembly of Rio Grande do Sul. Bloomberg reported Thursday that Lula is “struggling to respond to Flávio Bolsonaro’s rise in polls” as tensions mount within his inner circle. The October election looms as the defining contest of the post-Maduro hemisphere. The BCB published its quarterly monetary policy report today. Selic at 14.75% after March 18’s 25bp cut. Ibovespa fell 1.45% to 182,732.67. USD/BRL flat at 5.2371. |
Mexico The Senate approved Sheinbaum’s “Plan B” electoral reform 87-41 Wednesday night — but the PT ally stripped out the revocación de mandato provision that would have allowed a recall vote in 2027. Sheinbaum called the omission “bad for the country” but accepted the core: austerity measures cutting legislative privileges and electoral officials’ salaries. Banxico held the rate at 7% as expected, the second consecutive pause. Sheinbaum negotiated a voluntary diesel price cap with gas station operators. Inflation at 4.63% is being driven by tomato, lemon, and chicken — largely attributable to a Florida frost. IPC fell 1.65% to 67,061.34, giving back nearly half of Wednesday’s 3.67% surge. |
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Colombia The manhunt for Iván Márquez and six Segunda Marquetalia commanders entered its second day. The Fiscalía confirmed the FARC dissident group ordered the assassination of Senator Miguel Uribe Turbay. A $5 billion peso reward is on Márquez’s head. The C-130 crash investigation continues — 19 bodies identified, voice recorder sent to the US for analysis. COLCAP was the day’s worst performer: −1.77% to 2,233.40. The peso weakened to $3,688. |
Venezuela / Peru Venezuela: Maduro’s second hearing took place Thursday in Manhattan. Judge Hellerstein reviewed the defence’s dismissal motion and the Treasury funding dispute. Separately, Rodríguez’s mining law vote is expected before the week ends. Parlamento also appointed a new procuradora general. Peru: Debate week one concluded with three nights of 12-candidate sessions. Second round starts March 30 covering employment and education. Ipsos: Fujimori 11%, López Aliaga 10%, four-way tie at 5% for third. Cerrón habeas corpus March 31. Sixteen days to April 12 first round. |
Markets at a Glance
| Index | Close | Change | Context |
|---|---|---|---|
| Ibovespa | 182,732.67 | −1.45% | Gave back Wed gains; BCB report day |
| COLCAP | 2,233.40 | −1.77% | Worst performer; manhunt + crash weight |
| IPC (Mexico) | 67,061.34 | −1.65% | Gave back half of Wed’s 3.67% surge |
| MERVAL | 2,769,368.97 | −1.28% | CJNG designation; post-rally correction |
| IPSA (Chile) | 10,397.03 | −0.12% | Marginal loss; protest risk not yet priced |
| Gold | US$4,453.06 | +1.65% | Safe-haven bounce; still below $4,500 |
| Silver | US$69.718 | +2.62% | Outperforming gold on recovery |
| Bitcoin | US$68,762 | flat | Holding $68K–$69K; no conviction |
| USD/BRL | 5.2371 | flat | Dead flat; Selic easing vs risk-off |
Equity indices: Thursday March 26, 2026 closes, from TradingView Tier 0 charts (timestamped 07:15–07:16 UTC, March 27). Gold, silver, Bitcoin, USD/BRL from TradingView daily (07:16 UTC). Chile protests from AFP/La Nación/BioBioChile/El Mostrador/teleSUR/Perfil. Argentina CJNG from Infobae/El Cronista/Primera Edición. Bolivia gasoline crisis from Infobae/Reuters/El Diario/EFE. Brazil antifascist conference from Prensa Latina/Resumen Latinoamericano. Lula–Bolsonaro from Bloomberg. Mexico Plan B from CNN en Español/Infobae/El Financiero/Excélsior. Colombia from Noticias Caracol/El País Cali/Infobae Colombia. Rio Times Bolivia coverage.
The Week Ahead
| Date | Event | Country |
|---|---|---|
| Fri Mar 27 | Antifascist conference day 2 (Porto Alegre); Bolivia 72-hour compensation deadline begins; Chile protest fallout | Brazil / Bolivia / Chile |
| ~Fri Mar 28 | Brazil tax reform framework vote (Chamber); Venezuela mining law second debate vote | Brazil / Venezuela |
| Sun Mar 30 | Ecuador curfew ends (4 provinces); Peru debate round two begins; FIFA president meets Sheinbaum | Ecuador / Peru / Mexico |
| Mon Mar 31 | Cerrón habeas corpus — Constitutional Tribunal; Sheinbaum receives FIFA’s Infantino | Peru / Mexico |
| Sat Apr 12 | Peru presidential & legislative first round | Peru |
| Sat Apr 19 | Bolivia — seven gubernatorial runoffs | Bolivia |