AI, Contracts, Compliance & Tariffs: A New Agenda for Latin America’s General Counsel

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How Latin America’s General Counsel Are Rewriting The Rulebook Amid AI Disruption, ESG Scrutiny, and Rising Trade Tensions.

General Counsel in Latin America: The H2 2025 Legal Playbook

In 2025, General Counsel in Latin America operate in a vastly reshaped environment—driven by rapid AI deployment, LGPD (Lei Geral de Proteção de Dados, Brazil’s data privacy law) enforcement, rising ESG (Environmental, Social & Governance) demands, and sweeping U.S. trade shocks. GCs across Brazil, Mexico, and Argentina are now strategic leaders across contracting, compliance, and geopolitical risk.

AI Clauses in Contracts: A Priority for General Counsel in Latin America

As generative AI becomes pervasive, contracts must squarely address liability, intellectual property ownership, and data usage. Mexico’s fintech firms face new regulatory scrutiny, and Argentina’s healthtech companies must clarify AI diagnostic responsibilities. In Brazil, LGPD is being extended to cover AI systems. .

M&A and Venture Capital partner João Busin, of renowned São Paulo law firm, Demarest Advogados, emphasizes that:

“It is key for outside counsel to constantly feed GCs with information and latest trends when it comes to legal solutions for macro-economic shifts, reporting how these changes can affect deal activity. A recent example includes representations and warranties provisions crafted for purposes of accommodating potential issues brought by artificial intelligence vis-à-vis data protection and information integrity.

He adds further that:

“In Brazil’s venture capital environment, a large chunk of the deal flow involves investment in businesses exposed to potential data integrity issues, such as Fintechs and companies that develop solutions around financial compliance for example. As AI has become a tool of everyone’s business routine, it adamant to address potential issues brought by in the underlying transaction documents, including through representations and warranties and indemnity provisions.” 

Cross‑Border Structures: A Growing Compliance Challenge

With increased emphasis on transparency and anti-avoidance measures, traditional offshore holding frameworks face reputation and enforceability risk. FX (foreign exchange) restrictions in Argentina, Brazilian offshore reforms, and Mexican arbitration preferences demand legal recalibration.

“Transactional documents are often disregarded by local courts. We advise structuring protections from day one—arbitration, FX hedges, and international vehicles are no longer optional.” (André Thiollier, partner at Foley & Lardner LLP, BLY.News, “Legal Investment in Brazil and Mexico 2025”).

Compliance, ESG & Tariff Pressures in Latin America

Compliance is now proactive and public. Mexico is intensifying enforcement under USMCA (United States–Mexico–Canada Agreement) labor and environmental provisions. Brazil is progressing ESG litigation and AI regulation discussions alongside LGPD enhancements. In Argentina, anti-corruption enforcement is intensifying under renewed global financial oversight.

President Trump’s administration is implementing sweeping tariffs, effective August 1, 2025, including:

• Brazil: 50% on coffee, aerospace parts, chemicals
• Mexico: 30% on non‑USMCA goods
• Argentina: 10% baseline under WTO (World Trade Organization) norms

General Counsel must revise cost allocation, force majeure and exit clauses. Many Brazilian exporters are already battling canceled deals and growing arbitration risk. Mexico is pursuing intra‑Latin American trade as a hedge.

On Legal Agility and Contextual Insight

In a region where legal frameworks evolve rapidly—and are often subject to political or economic shifts—general counsel can no longer afford a reactive posture. Instead, they must exercise legal agility: anticipating regulatory changes, adjusting contract strategies in real time, and embedding contextual awareness into legal risk assessments.

This reality is especially acute for in-house teams, who face daily pressure to turn legal complexity into business action. As Ianda Lopez, Head of Legal at Uber Brazil, puts it:

“We need lawyers that can think outside the box. If I hire outside counsel to tell me things we already know, then we would never move ahead.” (IBA Latin America In-House Counsel Roundtable).

Michael Camuñez, President of Monarch Global Strategies, reflects on U.S.–Mexico trade:

“It’s like playing with fire,” he said, referring to the potential fallout from sweeping U.S. tariffs (Source: SMPS Legal).

Mariel Alcoba, Head of Legal & Compliance for South America at Boston Scientific, adds:

“In Argentina, legal decisions are never static—you must revisit them constantly as the regulatory, currency, and political landscape evolves. Our legal department has become a core part of business forecasting.” (“The Legal 500 – GC Powerlist Argentina”).

Together, these perspectives show that legal agility is not about faster reaction times—it’s about institutional readiness.

Checklist: What General Counsel in Latin America Should Prioritize Now

• Audit AI & LGPD exposure
  Identify and manage liability, IP, and data compliance risks in vendor and client contracts using AI tools.
• Enhance cross-border enforceability
  Update arbitration, governing law, and interim relief provisions. Plan around FX restrictions and repatriation challenges.
• Institutionalize ESG compliance
  Insert measurable ESG obligations into commercial agreements. Monitor supply chain and partner behavior.
• Tariff-ready contracting
  Add cost-pass clauses, exit options, and renegotiation triggers to address U.S. tariff impacts.

Each of these actions must be coordinated across legal, tax, and operational teams.

Conclusion: Expanding the Role of General Counsel in Latin America

In a period of acute complexity, General Counsel in Latin America must extend beyond legal advisory to strategic business leadership.

“The role of the general counsel is now at the intersection of law, politics, and business. Those who map that terrain effectively will shape corporate resilience across the region. (André Thiollier, Foley & Lardner LLP).

At Beyond the Law, we’ll continue to follow this evolution and support GCs in mastering their expanded mandates.

Abstract: Português

Resumo: Este artigo destaca os desafios estratégicos enfrentados por General Counsels na América Latina em 2025, com foco em IA, ESG, LGPD e tarifas comerciais.

Abstract: Español

Resumen: El artículo analiza los principales desafíos para los General Counsels en América Latina em 2025, incluyendo IA, ESG, protección de datos y aranceles.