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             Congressional Research Service
             Inforrning the legislative debate since 1914

                                                                                        Updated  February 27, 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 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.

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.

Increasing  Challenges  in the Region
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 Nicolas
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 persists.




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   Trump   Administration   Policy
   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. Meanwhile, 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

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