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1 1 (September 30, 2020)

handle is hein.crs/govebha0001 and id is 1 raw text is: Updated September 30,2020 Latin America and the Caribbean: U.S. Policy Overview U.S. interests in Latin America and the Caribbean are diverse and includeeconomic, 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 ofU.S. immigration, both legaland 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 Merida 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. Anotherlong-standingcomponent 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. Increasing Challenges in the Region Over the past several years, the quality of democracy has eroded in numerous countries, along with public satisfaction with how democracy is working. Venezuelahas descended into a dictatorship under President Nicolas 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 orstagnantgrowth rates, high levels of income inequality, and increased poverty also increased socialpressure. In 2020, the Coronavirus Disease 2019(COVID-19) pandemic is having widespread economic, social, and political effects in the region. As of September 30, 2020, the region had almost 9.3 million cases (alnost28% of cases worldwide) and almost 341,000 deaths (alnost34% of deaths worldwide), according to Johns Hopkins University. Brazil, Mexico, and Peru were among the 10 ttps ://crs reps countries worldwide with thehighest numbers of 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 2020projects a 9.4% economic contraction. 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 IF11581, Latin America and the Caribbean: Impact ofCOVID-19.) Trump Administration Policy 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 pastAdministrations, which emphasized partnership. 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 Centerpolls, negativeviews of U.S. leadership in the regionhave increasedmarkedly duringthe 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 theflow 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 larger cuts for many countries and programs. In response to the COVID-19 pandemic, as of August 2020, U.S. agencies allocated $141 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, 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 .conress.ov

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