In July 2025, a consequential shift took place in Santiago, Chile. Against the backdrop of mounting global polarisation, progressive leaders from Latin America and Europe launched what is now informally known as the Ibero-American Left. Presidents Gabriel Boric (Chile), Luiz Inácio Lula da Silva (Brazil), Gustavo Petro (Colombia), Yamandú Orsi (Uruguay) and Pedro Sánchez (Spain) gathered with a shared mission to defend democracy, revitalise multilateralism and confront the rising tide of extremism and disinformation. 

This was not merely another summit. It signalled that centre-left governments increasingly believe traditional global institutions are faltering and that the ideological battle for the future of democracy can no longer be left to chance. 

Right-wing populism has been gaining traction worldwide and one of its most effective vehicles has been the Conservative Political Action Conference (“CPAC”). A senior advisor for a public electoral institution observed, “CPAC functions as a networking and cultural framing platform for the regional right (Argentina and Brazil have been showcased), capable of influencing media and regulatory agendas. This ‘soft power of certainty’ is what an investor can truly value.” 

A political scientist added, “Unlike many progressive platforms, CPAC has shown it can coordinate leadership, narrative and resources in a swift, disciplined and consistent manner. It has become a platform for leaders like Javier Milei and José Antonio Kast to present themselves not as isolated voices, but as part of a global movement.” 

Faced with this growing coordination, the Ibero-American Left sees the need to create its own counterweight. The Santiago summit, branded “Democracy Always,” was its first step. A senior advisor noted, “The narrative uniting the region’s democratic left, including Chile, pivots around three key axes: (a) democracy and human rights, (b) green recovery and re-industrialisation and (c) responsible digital governance.” 

“The narrative uniting the region’s democratic left, including Chile, pivots around three key axes: (a) democracy and human rights, (b) green recovery and re-industrialisation and (c) responsible digital governance.”

Senior advisor for a Public Electoral Institution, LatAm

This agenda overlaps with global conversations at the UN, where the Pact for the Future elevates issues like digital governance and sustainable development. It also builds on renewed EU and Community of Latin American and Caribbean States (“CELAC”) ties, particularly around supply chain resilience. As the advisor explained, “Friction may arise when overlapping standards (environmental, labour, data) follow different timelines at subregional or national levels. However, Chile has emphasised a non-confrontational, pro-integration stance, useful for mitigating regulatory uncertainty in transatlantic supply chains.” 

Yet challenges persist. According to the political scientist, “The Ibero-American Left is trying to respond to the rise of the right, but it’s doing so with a narrative that, in my view, is more defensive than forward-looking. In this context, arguments for greater equity clash with a reality of mediocre indicators: the right argues that the left is incapable of steering the ship, with disastrous consequences for the future.” 

This movement towards right-wing politics is fuelled by insecurity, economic stagnation and disillusionment with progressive governments. In Bolivia, the 2025 elections ended nearly two decades of socialist dominance as a conservative coalition capitalised on anger over corruption and mismanagement. In Chile, José Antonio Kast has emerged as Boric’s main challenger, mobilising voters around law-and-order and migration. In Peru, Keiko Fujimori and other conservatives remain influential despite repeated crises, while in Colombia, Petro faces a resurgent right tapping into discontent with reforms and fiscal instability. Alongside Argentina under Javier Milei, these cases illustrate how the right increasingly embodies stability and efficiency, even if its prescriptions differ widely.

For businesses and investors, these undulating political currents shape investment decisions. New rules on disinformation, data use and content moderation are already being debated across Latin America. “Risks include increased compliance burden (algorithmic transparency, systemic risk reporting, content due diligence)… and exposure to sanctions if EU-style frameworks like the Digital Service Act (“DSA”) are replicated without clear implementation guidelines,” the senior advisor explained. 

A Colombian political analyst echoed this concern, “In some countries, laws are being created with very broad terms, like ‘disinformation,’ which leave plenty of room for each government to interpret the rules as they see fit. That worries investors because they don’t know what to expect. There’s also an economic risk: new taxes and special funds are emerging that make it more expensive to operate in the region.” 

“In some countries, laws are being created with very broad terms, like ‘disinformation,’ which leave plenty of room for each government to interpret the rules as they see fit.”

Political analyst, Colombia 

At the same time, regulatory complexity may generate opportunities. “The complexity of the rules is driving demand for companies and consultants who can help navigate and comply with them,” noted the analyst. “Those who see compliance not as a burden but as a way to earn trust will be in a stronger position when the political waters settle.” 

The key question is whether the Ibero-American Left can maintain cohesion. Differences between Lula’s Brazil, Petro’s Colombia, Sánchez’s Spain and Uruguay’s more centrist government are stark. The political scientist highlighted, “We must remember that Lula’s left is very different from Petro’s, which in turn differs from what’s happening in Venezuela. There are many nuances that need to be considered independently.” 

Such divergences matter not only for politics but also for trade and investment. “Every time these differences surface on the international stage, it reinforces the perception that the region is an unpredictable partner for trade and investment,” warned the analyst. Whether the Ibero-American Left can turn this unpredictability into transformative power, or end up as diplomatic leftovers, remains to be seen.