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                                                                                      Updated October 20,2020
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
leg aland illegal; with proximity and economic and security
conditions the 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 for decades. The flow of illicit drugs,
including heroin, methamphetamine, and fentanyl from
Mexico and cocaine fromColombia, 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),begunin 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.


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 Pres ident Nicold s
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 in s titutions, 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. As of October 19,2020, the
region had over 10.4 million cases (over 26% of cases
worldwide) and over 379,000 deaths (34% of deaths
worldwide), according to Johns Hopkins University. Brazil,
Mexico, and Peru were among the 10 countries worldwide


with the highest numbers of deaths. Before thepandemic,
the International Monetary Fund projected a regional
economic growthrate of 1.6% in 2020, but its revised
forecast fromOctober 2020 projects an 8.1% economic
contraction for the year. According to a July 2020 U.N.
report, as a result of the pandemic, 45 million people will
likely move into poverty in Latin America and the
Caribbean in 2020. Many countries may struggle with
protracted recoveries. (Also seeCRS In Focus IF 1581,
Latin America and the Caribbean: Impact ofCO VID-1 9.)


Under the Trump Administration, U.S. relations with Latin
America and the Caribbean generally have moved toward a
more confrontational approach, especially regarding efforts
to curb irregular immigration from the region, compared
with the approach of past Administrations, which
emphasized partnership. In 2018, the State Department set
forth a framework for U.S. policy toward the region
focusedon 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 Centerpolls,
negativeviews of U.S. leadership in the regionhave
increased markedly during the Trump Administration.

Foreign Aid. The Administration's 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 byproviding
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 theflowof 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 larger
cuts for many countries andprograms. In response to the
COVID-19 pandemic, as of August 2020, U.S. agencies
allocated $141 million in new and previously announced
ass is tance to help the region respond to the pandemic.

Trade. In 2017, President Trump ordered U.S. withdrawal
from the proposed Trans-Pacific Partnership (TPP) TA
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 s trongly criticized the North AmericanFree Trade
Agreement (NAFTA) with Mexico and Canada, repeatedly
threatened U.S. withdrawal, and initiated renegotiations in
2017. The three countries agreed in 2018 to a new United
States -Mexico -Canada Agreement (USMCA), which


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