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1 1 (January 26, 2021)

handle is hein.crs/govebvg0001 and id is 1 raw text is: Conqressi&ns $ ft nit nfoa mo th~ i*~ji~s almte d~4 it nte V 14 9 Updated January 26, 2021 Latin America and the Caribbean: U.S. Policy Overview U.S. interests in Latin America and the Caribbean are diverse andincludeeconomic, 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 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. 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. 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. Venezuela Cuba, and Nicaragua are ruled by authoritarian governments repressing the political opposition. In 2019, many countries in the region experienced socialunrest fueled by political factors such as fraudulent elections, weak democratic institutions, politicized judicial s y stems, public corruption scandals, andhigh levels of crime and violence. Economic factors, such as declining or stagnant growth rates and high levels ofincome inequality and poverty, also increased socialpressure. The Coronavirus Disease 2019 (COVID-19) pandemic is having widespread economic and socialeffects in the region. At the end of 2020, according to Johns Hopkins University, theregionreported over 507,000 deaths (almost 28% of deaths worldwide). Before the pandemic, the International Monetary Fund (IMF) projected a regional economic growthrate of 1.6% in 2020, but in its January 2021 World Economic Outlook Update, theIMF estimated a 7.4% regional economic contraction in 2020 and a https://crsrepo projected 4.1% recovery in 2021. The strength ofrecovery will vary across countries, influenced by the availability of vaccines andmedicaltherapies and the effectiveness of economic policy support. TheU.N. estimates that some 45 million people in the region moved into poverty in 2020. Trump Administration Policy Under the Trump Administration, U.S. relations with Latin America and the Caribbean generally movedtoward amore confrontational approach, especially regarding efforts to curb irregular immigration from the region, compared with the approachofpast Administrations, 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 reflected continuity with long-standing regional U.S. policy priorities, but at times appeared to be at odds with the Administration's sometimes antagonistic actions and statements on immigration, trade, and foreign aid. According to Gallup and Pew Research Center polls, negativeviews of U.S. leadership in the regionincreased markedly during the Trump Administration. Foreign Aid From FY2018 to FY2021, the Administration's proposed foreign aid budgets for the region would have cut assistance considerably, but Congress rejected those requests by providing significantly more assistance than requested. In 2019, the Trump Administration withheld some assistanceto the Northern Triangle countries ofCentral America (El Salvador, Guatemala, and Honduras) to compelgovernments to curb the flow of migrants to the United States. 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, threatened U.S. withdrawal, and initiated renegotiations. The three countries agreed in 2018 to the United States-Mexico- Canada Agreement (USMCA), which entered into force July 1, 2020; the agreement retainedmany ofNAFTA's provisions butincluded modernizing updates and changes. Mexico, Central America, and Immigration. Relations with Mexico and CentralAmerica were tested because of inflammatory anti-immigrant rhetoric and immigration actions thatshifted the burdens of interdicting migrants and offering asylumto Mexico. In 2017, the Administration announced it would end Deferred Action for Childhood Arrivals (DACA), a programbegun in 2012 that provides relief from deportation for certain immigrants who arrived as children; federal court challenges led to a June 2020 .conress.ov

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