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1 1 (July 01, 2020)

handle is hein.crs/govdaqf0001 and id is 1 raw text is: FF.E Updated July 1, 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 a major trading partner and source of foreign investment for many 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; with proximity and economic and security conditions the 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 for 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 partnerships with other countries to combat drug trafficking and related violence and to advance citizen security, including through 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 is support for democratic governance and the rule of law. U.S. policy efforts have supported democracy promotion, including support for strengthening civil society and promoting human rights and the rule of law. Over the past several years, the quality of democracy has eroded in numerous countries, along with public satisfaction with how democracy is working. Venezuela has descended into a dictatorship under President Nicolfs Maduro, and Cuba and Nicaragua are ruled by authoritarian governments repressing the political opposition. In 2019, many countries in the region experienced social unrest fueled by political factors such as fraudulent elections, weak democratic institutions, politicized judicial systems, public corruption scandals, high levels of crime and violence, and organized crime's effect on state institutions. Economic factors such as declining or stagnant growth rates, high levels of income inequality, and increased poverty also increased social pressure. In 2020, the Coronavirus Disease 2019 (COVID-19) pandemic is having widespread economic, social, and political effects in the region. Infections and deaths are currently surging in some countries, especially Brazil, Mexico, Peru, and Chile. As of July 1, 2020, the region had almost 2.6 million cases and over 116,000 deaths. Before the pandemic, the International Monetary Fund projected a regional economic growth rate of 1.6% in 2020, but its revised forecast in June 2020 projects a 9.4% economic contraction. The U.N. Economic Commission for Latin America and the Caribbean projects that almost 29 million people in the region will move into poverty in 2020. Many countries may struggle with protracted recoveries. Under the Trump Administration, U.S. relations with Latin America and the Caribbean generally 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 regional U.S. policy priorities, but it 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. In 2019, the Trump Administration withheld some assistance to the Northern Triangle countries of Central America (El Salvador, Guatemala, and Honduras) to compel 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 increase to support a potential democratic transition in Venezuela masks significantly larger cuts for many countries and programs. In response to the COVID-19 pandemic, as of mid-June 2020, the Administration had announced almost $113 million in new and previously announced assistance to help the region respond to the pandemic. 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 Chile, Mexico, and Peru, which were parties to the agreement. The President strongly criticized the North American Free Trade Agreement (NAFTA) with Mexico and Canada and repeatedly threatened U.S. withdrawal. The Administration initiated renegotiations in 2017, and the three countries agreed in 2018 to a new United States-Mexico-Canada Agreement (USMCA) that retained many of NAFTA's provisions and included modernizing features and new provisions on the auto and dairy industries. K~:> gognpo ' -p\qm ggmm g 's a X

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