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Mission Grey Daily Brief - June 25, 2024

Summary of the Global Situation for Businesses and Investors

The world is witnessing a multitude of developments, from political shifts in Latin America to escalating tensions in the Middle East. In Afghanistan, the UN highlights the worsening women's rights crisis. Meanwhile, the US-backed Multinational Security Support mission in Haiti faces scrutiny. China continues to be a country of concern, with dissidents escaping by sea and a China-backed pipeline in Niger facing challenges.

Political Turmoil in Latin America

Bolivia is experiencing a bitter political fight that is paralyzing the government and exacerbating economic woes. Mexico's recent election saw the continuation of President Lopez Obrador's rule, marked by disinformation, polarization, and unfulfilled promises. The country faces challenges such as economic inequality, high crime rates, and environmental destruction.

Afghanistan's Worsening Women's Rights Crisis

The UN declares that Afghanistan has the most serious women's rights crisis globally, and the situation is deteriorating. This crisis, along with the Taliban's leadership, has led to sporting sanctions and international condemnation.

US-backed MSS Mission in Haiti

The Multinational Security Support (MSS) mission in Haiti, involving 200 Kenyan police officers, is facing scrutiny from media outlets and human rights groups. The deployment has been characterized as a "low-key invasion," with concerns about its potential impact on Haiti's security and stability.

China-backed Pipeline in Niger Faces Challenges

A China-backed oil pipeline in Niger, intended to boost the country's oil exports and economic growth, is facing setbacks due to diplomatic disputes with neighboring Benin and attacks by a local rebel group. This has led to concerns about Niger's economic future, particularly its ability to fund public services.

Risks and Opportunities

  • Risk: The political turmoil in Bolivia could lead to continued government paralysis and economic instability, impacting businesses operating in the country.
  • Opportunity: Mexico's new government may implement social programs and infrastructure projects, creating opportunities for businesses in certain sectors.
  • Risk: Afghanistan's women's rights crisis and sporting sanctions may deter foreign investment and impact businesses operating in the country.
  • Risk: The US-backed MSS mission in Haiti could face challenges in restoring security and stability, potentially affecting business operations and investments in the country.
  • Risk: The China-backed pipeline in Niger faces uncertainty due to diplomatic tensions and security threats, which could impact Niger's economic growth and business opportunities.

Recommendations for Businesses and Investors

  • Monitor the political situation in Bolivia closely and assess the potential impact on your operations and investments in the country.
  • Stay informed about policy changes and social programs in Mexico and explore opportunities to contribute to infrastructure projects and social initiatives.
  • When considering investments in Afghanistan, carefully evaluate the risks associated with the country's human rights situation and sporting sanctions.
  • For businesses operating in Haiti, stay updated on the MSS mission's progress and its potential impact on the security landscape.
  • Reevaluate investment strategies related to the China-backed pipeline in Niger, considering the diplomatic and security challenges it faces.

Further Reading:

Aerial Drone Likely Launched by Yemen's Houthi Rebels Hits Ship in the Red Sea - U.S. News & World Report

Afghanistan has the most serious women’s rights crisis in the world, the UN says. And it's getting worse - Toronto Star

Afghanistan trigger a cricket earthquake, put Australia’s cup campaign on the ropes - Sydney Morning Herald

After Escaping China by Sea, a Dissident Faces His Next Act - The New York Times

An Israel offensive into Lebanon risks an Iranian military response, top U.S. military leader says - Toronto Star

An Israel offensive into Lebanon risks an Iranian military response, top US military leader says - Toronto Star

Biden campaign struggles with Jewish voters amid Israel-Hamas war abroad, antisemitism at home: report - Fox News

Bitter political fight in Bolivia is paralyzing the government as unrest boils over economic crisis - Bowling Green Daily News

Coup-hit Niger was betting on a China-backed oil pipeline as a lifeline. Then the troubles began - The Independent

How will we cover the MSS, this low-key invasion of Haiti? | EDITORIAL - Haitian Times

In Mexico as in the US, Disinformation is a Powerful Brand - PRINT Magazine

Themes around the World:

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Full Liberalization of Capital Markets

Saudi Arabia’s abolition of the Qualified Foreign Investor regime and opening of its equity market to all foreign investors from February 2026 marks a historic liberalization. This reform is expected to unlock $10 billion in inflows, deepen liquidity, and enhance Saudi Arabia’s integration into global indices, but regulatory clarity and governance standards remain critical for long-term investor confidence.

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Energy Sector Expansion and Regional Integration

Major investments in natural gas infrastructure, such as the Leviathan field expansion and long-term export deals with Egypt, position Israel as a key regional energy supplier. These developments support energy security and export revenues but are exposed to regional tensions and shifting global energy markets.

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Geopolitical Tensions with China

China’s ongoing claims over Taiwan and repeated military exercises in the Taiwan Strait heighten regional security risks. These tensions threaten supply chain stability, foreign investment confidence, and the continuity of critical electronics and semiconductor exports.

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Major Infrastructure and Digital Expansion

India’s infrastructure financing is integrating with global capital markets, focusing on green, resilient, and tech-enabled projects. Data center capacity doubled in 2025, with projections to triple by 2030, supporting digital transformation and robust supply chain logistics.

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Organized Crime and Investment Risk

Persistent organized crime and cartel activity, especially in key states like Michoacán, continue to pose operational and security risks. Despite increased arrests and bilateral cooperation, extortion, violence, and supply chain disruptions remain significant concerns for international investors.

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Administrative Reform and Anti-Corruption Drive

To Lam’s administration has cut bureaucracy, eliminated ministries, and intensified anti-corruption efforts. While these measures improve the business environment, rapid changes and centralization can create uncertainty for foreign investors regarding legal enforcement and policy direction.

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Export Diversification and Market Shift

China has offset declining US trade by expanding exports to Africa (up 26.5%), Southeast Asia (up 14%), and Latin America (up 8%). This diversification strategy reduces reliance on Western markets, strengthens ties with the Global South, and reshapes global trade flows.

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Sanctions Severely Disrupt Trade Flows

US and international sanctions continue to cripple Iran’s ability to access global markets, with over 38% of oil revenues not returning to the country. This impedes foreign trade, complicates payment channels, and heightens risk for international partners.

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AGOA Renewal and US Trade Relations

The three-year extension of the US Africa Growth and Opportunity Act (AGOA) provides crucial duty-free access for South African exports, supporting jobs and investment. However, eligibility reviews and strained US relations introduce uncertainty for long-term trade and supply chain planning.

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Sector-Specific Tariff and Regulatory Changes

The new US-Taiwan framework includes sectoral tariff caps and exemptions, notably for semiconductors, auto parts, and pharmaceuticals. These changes alter cost structures, market access, and compliance requirements for multinational firms operating in and with Taiwan.

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Export Controls and Supply Chain Security

China is intensifying export controls on critical minerals and dual-use goods, especially targeting countries perceived as adversaries. These measures disrupt global supply chains, particularly in high-tech and automotive sectors, and signal a willingness to weaponize trade policy for geopolitical leverage.

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Grid Stability Amid Climate Extremes

Australia’s electricity grid demonstrated resilience during recent heatwaves, with solar supplying over 60% of peak demand. However, winter supply risks persist, requiring ongoing investment in storage and backup systems to ensure energy security for industrial users.

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Export-Led Growth Ambitions Face Constraints

Pakistan targets $60 billion in exports by 2030, but structural financial constraints—such as government dominance in banking, high energy costs, and weak credit for exporters—limit competitiveness. Achieving export goals requires deep reforms in fiscal, monetary, and industrial policy to unlock sustainable growth.

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US Tariffs and Secondary Sanctions Expansion

The US has imposed a 25% tariff on all countries trading with Iran, escalating secondary sanctions. This policy directly threatens global supply chains, deters investment, and forces international companies to reassess exposure to both Iran and its major trading partners.

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IMF Conditionality and Fiscal Policy Shifts

Pakistan is negotiating with the IMF for relaxed fiscal targets to enable growth-oriented policies. The government seeks to lower power tariffs, reduce super taxes, and improve credit access for SMEs, but faces constraints from IMF-mandated austerity and structural reforms.

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US-Saudi Relations and Security Realignment

Saudi Arabia is recalibrating its security partnerships, balancing US ties with new regional alliances and arms deals with Pakistan. Diverging interests with Washington and assertive regional diplomacy reflect a more independent Saudi foreign policy, affecting the risk calculus for Western businesses.

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China’s Growing Role and Risks

China remains Brazil’s top export destination, with purchases rising 6% in 2025 to US$100 billion, mainly in soy, beef, and sugar. However, recent Chinese quotas on beef imports and increased use of trade defense instruments pose new risks for Brazilian supply chains.

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Chinese Imports Challenge Local Industry

A surge in Chinese vehicle imports has widened South Africa’s trade deficit with China, threatening the competitiveness of the domestic automotive sector—a major employer and exporter. This trend may impact local manufacturing, supply chains, and trade sustainability.

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US-China Trade Tensions Escalate

The US has imposed a 25% tariff on countries trading with Iran, directly targeting China, Iran’s largest oil buyer. This move risks reigniting the US-China trade war, disrupting global supply chains, and increasing costs for multinational businesses. China’s response and supply chain rerouting are already evident, with US-China trade down 28-38% in 2025 and Southeast Asia gaining share.

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Political Stability Amid Regional Shifts

Mexico’s government, led by President Sheinbaum, faces mounting external pressures but maintains domestic stability and high-level dialogue with the US. The broader Latin American shift toward market-friendly policies is boosting investor sentiment, but geopolitical risks remain elevated.

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Labor Market Weakness Amid Policy Shifts

Despite protectionist policies, US manufacturing jobs declined by over 70,000 since April 2024. The labor market remains sluggish, with low hiring rates and increased long-term unemployment, challenging the narrative of a domestic manufacturing resurgence.

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High-Tech Sector Investment and AI Leadership

Israel’s high-tech sector remains a global innovation leader, attracting significant venture capital and multinational investment, including major projects from companies like Nvidia. Government-backed funds and private capital continue to drive growth, though the sector faces talent shifts and must navigate global competition and regulatory scrutiny.

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Critical Minerals Access and Infrastructure Gaps

Greenland’s mineral wealth offers major supply chain opportunities, but extraction is hindered by lack of infrastructure and skilled labor. International investors face high entry barriers, regulatory uncertainty, and potential political disruption, impacting resource strategies and industrial planning.

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Security Risks and Cartel Violence

Escalating cartel violence and US threats of military intervention heighten operational and reputational risks for international businesses. Despite increased arrests and cooperation, criminal organizations still exert significant influence, affecting logistics, investment, and local partnerships.

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Retaliatory Tariffs and Regulatory Risks

The EU is considering €93 billion in retaliatory tariffs and regulatory measures targeting US goods and services. Finnish firms operating in or exporting to the US could face new barriers, compliance costs, and restricted market opportunities.

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Transatlantic Trade War Escalation

President Trump's threat of 10–25% tariffs on UK and European goods over Greenland has triggered the most serious US-EU trade crisis in decades. The risk of retaliatory measures and suspended trade agreements could severely disrupt UK exports, supply chains, and investment flows.

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Strategic Shift Toward India and Indo-Pacific

Germany is deepening economic, technological, and defense ties with India, positioning the Indo-Pacific as a core region for diversification. The India-EU Free Trade Agreement, expanded mobility, and joint ventures in green energy and semiconductors are set to reshape supply chains and investment flows.

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Infrastructure Modernization and Urban Growth

Major cities like Hanoi and Ho Chi Minh City are investing in infrastructure, digital transformation, and sustainable urban development. Record FDI inflows and public investment disbursement support mega-projects, but land disputes, regulatory bottlenecks, and the need for fiscal discipline affect project execution and business environment stability.

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Regional Energy Partnerships and Gas Hub Role

Egypt is leveraging its infrastructure to become a regional energy hub, signing supply and cooperation agreements with Israel, Cyprus, Qatar, and Syria. These partnerships support energy security, regional integration, and cross-border investment, but depend on stable infrastructure and geopolitical conditions.

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Crypto Asset Regulation Tightens

From January 2026, all UK crypto transactions must be reported to HMRC, ending privacy and imposing strict compliance on exchanges. This reform increases regulatory oversight, tax collection, and transparency, but may deter investment and innovation in the sector.

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Oil Revenue Losses and Export Risks

Sanctions and payment repatriation issues have resulted in Iran losing up to 38% of its oil revenue, with only $13 billion of $21 billion received. Protests and instability threaten further disruption to Iran’s 2% share of global oil exports.

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Energy Transition and Industrial Competitiveness

Germany is accelerating its energy transition by phasing out coal, building new gas plants, and subsidizing industrial power prices. While aiming for climate goals, the high cost of the transition and energy security concerns are prompting significant government intervention to support energy-intensive industries.

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Energy Security and Diversification Strategy

Turkey’s energy policy emphasizes diversification, with LNG imports from the US and multiple pipeline sources. This reduces vulnerability to Russian supply shocks and positions Turkey as a critical energy transit hub, affecting investment strategies in energy, infrastructure, and manufacturing.

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Sanctions Enforcement and Geopolitical Risk

France has escalated enforcement of Russia-related sanctions, including high-profile maritime interdictions. This raises compliance risks for energy, shipping, and finance sectors, and signals a stricter stance on trade with sanctioned entities, impacting supply chain security.

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Geopolitical Risks and Policy Volatility

India faces heightened geopolitical risks, including US sanctions threats, trade deal delays, and shifting global alliances. These factors create policy volatility, impacting FDI flows, supply chain strategies, and the predictability of the business environment for international firms.

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Geopolitical Tensions and Regional Conflict

Recent military clashes with Israel and US strikes on Iranian infrastructure have heightened regional instability. These tensions threaten energy exports, insurance costs, and the safety of international operations in and around Iran.