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1 1 (June 05, 2020)

handle is hein.crs/govdaqr0001 and id is 1 raw text is: Updated June 5,2020 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, and the United States is 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 leg al and illegal; geographic proximity and economic and security conditions are major factors driving migration trends. Curbing the flow of illicit drugs fromLatin America and the Caribbean has been a key component of U.S. relations with the region and a major interest of Congress for decades. The flow of illicit drugs, including heroin, methamphetamine, and fentanyl fromMexico and cocaine from Colombia, poses risks to U.S. public health and s afety. Since 2000, Colombia has received supportthrough 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 therule of law. I,.,,<, .,a i.',g b.a~ ,,,es ,',ths Regio,., Over the past several years, thequality of democracy has eroded in numerous countries, along with public satis faction with how democracy is working. Venezuela has des cended into a dictatorship under President Nicold s Maduro, and Cuba and Nicaragua are ruled by authoritarian regimes repres sing the political opposition. Other countries have experienced s ocialunrest fueled bypolitical factors such as fraudulent elections, weak democratic institutions, politicized judicial s ys tes, public corruption scandals, high levels of crime and violence, and organized crime's effect on stateinstitutions. Economic factors such as declining or stagnant growth rates, high levels of income inequality, and increased poverty also have increased social pressure. Protests thatracked numerous countries in 2019 could reemerge, as underlying conditions that fueled unrest persist. Most significantly 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. Before the pandemic, the International Monetary Fund projected a regional economic growth rate of 1.6% in 2020; its revised forecast is for a contraction of 5.2%. The U.N. Economic Commission for Latin America and the Caribbean projects that almost 29 million people in the region will move into povertyin 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 fromone of engagement and partnership during past Administrations. In 2018, the State Department setforth a frameworkforU.S. policy toward the region focused on threepillars for engagement- economic growth and prosperity, security, and democratic governance. The frameworkreflects continuity with long- standing regional U.S. policy priorities, but it appears at odds with theAdministration's sometimes antagonistic actions and s tatements on immigration, trade, and foreign aid. According to Gallup and Pew Research Center polls, negativeviews of U.S. leadership in the regionhave increased markedly during the Trump Administration. Foreign Aid. The Administration's proposed foreign aid budgets for the region would havecut 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 assistancein appropriations measures. In 2019, the Trump Adminis tration 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 requestof$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. In response to theCOVID-19 pandemic, as of late May 2020, the Administration had announced $112 million in new and previously announced ass is tance to help the region respond to the pandemic. Trade. In 2017, PresidentTrump ordered U.S. withdrawal from the proposed Trans-Pacific Partnership (TPP) FTA negotiatedin 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 AmericanFree 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) thatretained many ofNAFTA's provisions andincluded modernizing features and new provisions on the auto and dairy industries. ! ,t , . ' Z , ') : t,, k w- yg

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