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                                                                                         Updated  January 22, 2019

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 three decades. In recent
years, the United States has engaged in close security
cooperation with Mexico, Central America, and the
Caribbean to combat drug trafficking and related violence.
Although most countries in the region have made enormous
strides in terms of democratic political development since
the 1980s, many countries in the region still face
considerable challenges. Cuba remains under authoritarian
rule, although the government transitioned to a new
president, Miguel Diaz-Canel, in 2018. Undemocratic
practices have risen in in Venezuela, which most observers
view as a dictatorship under President Nicolas Maduro, and
Nicaragua, which has grown violently repressive under
President Daniel Ortega. High rates of crime and violence
afflict a number of countries; in some, journalists and
human  rights and environmental activists have been
targeted. High-profile corruption scandals have stirred
strong anti-corruption sentiment throughout the region and
helped to fuel the election of populist presidents from the
left and right, respectively, in Mexico (Andres Manuel
L6pez Obrador) and Brazil (Jair Bolsonaro).

Obama Administration Policy
In its policy toward the region, the Obama Administration
set forth a broad framework centered on promoting
economic  and social opportunity, ensuring citizen security,
strengthening effective democratic governance, and
securing a clean energy future. It emphasized partnership
and shared responsibility, with policy conducted through
engagement  and dialogue.
The Obama  Administration provided significant support to
combat drug trafficking and organized crime and to
advance citizen security. Efforts included a continuation of
long-standing support to Colombia through Plan Colombia
and its successor programs: 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.
On trade matters, the Obama Administration resolved
outstanding congressional concerns related to FTAs with


Colombia  and Panama, which led to congressional
enactment of legislation for the two FTAs in 2011. In 2015,
the Administration also concluded negotiations for the
proposed Trans-Pacific Partnership (TPP) trade agreement
that included Mexico, Chile, and Peru, among other nations.
In the absence of congressional action on comprehensive
immigration reform, President Obama turned to executive
action in 2012 with the Deferred Action for Childhood
Arrivals program (DACA),  which provided relief from
deportation for certain immigrants who arrived as children.
Among   other significant policy changes, the Obama
Administration launched a major policy shift toward Cuba
in late 2014, moving away from the long-standing
sanctions-based approach toward a policy of engagement.
While the Administration pressed for dialogue in
Venezuela, it also imposed targeted sanctions in 2015 on
those involved in human rights abuses. Spurred by a surge
of unaccompanied children and other migrants from Central
America, the Administration developed a broader approach
in 2015 known as the U.S. Strategy for Engagement in
Central America to improve security, strengthen
governance, and promote prosperity.

Trump   Administration   Policy
Under the Trump  Administration, the outlook for U.S.
relations with Latin America and the Caribbean has
changed. In February 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. Although
the framework reflects continuity with long-standing U.S.
policy priorities for the region, it also appears to be at odds
with the Administration's actions, sometimes accompanied
by tough rhetoric, on foreign aid, trade, and immigration.
The Administration's proposed foreign aid budgets for
FY2018  and FY2019  would have significantly cut
assistance to the region by 36% and 35%, respectively,
compared  with FY2017.
Negative views of U.S. leadership in the region have
increased markedly over the past two years, influenced by
disparaging political rhetoric and certain actions on
immigration and trade. Such views could affect the
willingness of some countries to cooperate with the United
States on regional and global challenges. However, some
observers believe the election of conservative governments
in several Latin American countries could lead to increased
cooperation with the region.
On trade, President Trump ordered U.S. withdrawal from
the proposed TPP in January 2017; the TPP would have
increased U.S. economic linkages with several countries in
the region. The President strongly criticized the North
American  Free Trade Agreement (NAFTA)   with Mexico
and Canada, warned that the United States might withdraw


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