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                                                                                           Updated March 11, 2020

Latin America and the Caribbean: U.S. Policy Overview


U.S. interests in Latin America and the Caribbean are
diverse and include economic, political, security, and
humanitarian concerns. Geographic proximity has ensured
strong economic linkages between the United States and the
region, with the United States being a major trading partner
and source of foreign investment for many Latin American
and Caribbean countries. Free trade agreements (FTAs)
have augmented U.S. economic relations with 11 countries
in the region. The Western Hemisphere is a large source of
U.S. immigration, both legal and illegal; geographic
proximity and economic and security conditions are major
factors driving migration trends.

Curbing the flow of illicit drugs from Latin America and
the Caribbean has been a key component of U.S. relations
with the region and a major interest of Congress for more
than four decades. The flow of illicit drugs, including
heroin, methamphetamine, and fentanyl from Mexico and
cocaine from Colombia, poses risks to U.S. public health
and safety. Since 2000, Colombia has received support
through Plan Colombia and its successor programs. For
over a decade, the United States also has sought to forge
close partnerships with other countries to combat drug
trafficking and related violence and advance citizen
security. These include the M6rida Initiative, begun in 2007
to support Mexico; the Central America Regional Security
Initiative (CARSI), begun in 2008; and the Caribbean Basin
Security Initiative (CBSI), begun in 2009.

Another long-standing component of U.S. policy has been
support for democratic governance and the rule of law. U.S.
policy efforts have long supported democracy promotion,
including support for strengthening civil society and
promoting human rights and the rule of law.

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Over the past several years, the quality of democracy has
eroded in a number of countries, along with public
satisfaction with how democracy is working. Venezuela has
descended into a dictatorship under President Nicol6s
Maduro, and Cuba and Nicaragua are also ruled by
authoritarian regimes repressing the political opposition.
Other countries have experienced social unrest fueled by
such political factors as fraudulent elections, weak
democratic institutions, politicized judicial systems, public
corruption scandals, high levels of crime and violence, and
the effect of organized crime on state institutions.
Economic factors such as declining or stagnant growth
rates, high levels of income inequality, and increased
poverty have also increased social pressure. Protests that
racked a number of countries in 2019 could reemerge in
2020, given that many of the underlying conditions that
fueled unrest in the region persist.


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Under the Trump Administration, U.S. relations with Latin
America and the Caribbean have moved toward a more
confrontational approach from one of engagement and
partnership during past Administrations. In 2018, the State
Department set forth a framework for U.S. policy toward
the region focused on three pillars for engagement-
economic growth and prosperity, security, and democratic
governance. The framework reflects continuity with long-
standing U.S. policy priorities for the region, but it also
appears at odds with the Administration's sometimes
antagonistic actions and statements on immigration, trade,
and foreign aid. According to Gallup and Pew Research
Center polls, negative views of U.S. leadership in the region
have increased markedly during the Trump Administration.

Foreign Aid. The Administration's proposed foreign aid
budgets for the region would have cut assistance levels by
more than a third in FY2018 and FY2019 and by 30% in
FY2020. Congress essentially rejected those requests by
providing significantly more assistance in appropriations
measures, but in 2019, the Trump Administration withheld
some assistance to the Northern Triangle countries of
Central America (El Salvador, Guatemala, and Honduras)
to compel their governments to curb the flow of migrants to
the United States. The FY2021 request of $1.4 billion
would cut aid to the region by 18%, but a large proposed
aid increase to support a potential democratic transition in
Venezuela masks significantly larger cuts for many
countries and programs.

Trade. In 2017, President Trump ordered U.S. withdrawal
from the proposed Trans-Pacific Partnership (TPP) FTA
negotiated in 2015 by 12 Asia-Pacific countries; the TPP
would have increased U.S. economic linkages with three
Latin American countries that were parties to the
agreement-Chile, Mexico, and Peru. The President
strongly criticized the North American Free Trade
Agreement (NAFTA) with Mexico and Canada, repeatedly
warned that the United States might withdraw from the
agreement, and initiated renegotiations in 2017. The three
countries agreed in 2018 to a new United States-Mexico-
Canada Agreement (USMCA), which retained many of
NAFTA's provisions and included modernizing features
and new provisions on the auto and dairy industries.

Mexico, Central America, and Immigration. Relations
with Mexico have been tested because of inflammatory
anti-immigrant rhetoric and immigration actions that have
shifted the burden of interdicting migrants and offering
asylum to Mexico. In 2017, the Administration announced
it would end the Deferred Action for Childhood Arrivals
program; begun in 2012, the program provides relief from
deportation for certain immigrants who arrived as children.
The program's future remains uncertain, given challenges
in federal court. In 2018, Mexico's president agreed to


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