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Updated May 24, 2021

Latin America and the Caribbean: U.S. Policy Overview

U.S. interests in Latin America and the Caribbean (LAC)
are diverse and include economic, political, security, and
humanitarian concerns. Geographic proximity has ensured
strong economic linkages between the United States and
LAC, with the United States a major trading partner and
source of foreign investmentfor many regional countries.
Free-trade agreements (FTAs)have augmented U.S.
economic relations with 11 countries in the region. LAC
also is a large source of U.S. immigration, both authorized
and unauthorized; economic and security conditions are
major factors driving migration trends.
Curbing the flow of illicit drugs fromLAC has been a key
component of U.S. relations with theregion for decades.
The flow of illicit drugs-including heroin,
methamphetamine, and fentanylfromMexico 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. The United
States alsohas soughtto forge partnerships with other
countries to combat drug trafficking and relatedviolence
and to advance citizen security, including through the
Mdrida 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 strengthened democratic governance and the
rule of law, including initiatives to support civil society and
promote human rights. Although many countries in the
region have made strides in democratic political
development, several face considerable challenges.
Increasing Challenges in the Region
Over the past several years, the quality of democracy has
eroded in a number of countries in the region, along with
public s atisfaction with how democracy is working. In
addition to Venezuela, Cuba, and Nicaragua-allruled by
authoritarian governments repressing the political
opposition-humanrights groups have expressed concerns
about democratic backsliding in several countries, including
Brazil, El Salvador, Guatemala, Haiti, and Peru. Many
countries in LAC experienced social unrest in 2019 fueled
by such politicalfactors as weakdemocratic institutions,
politicized judicial systems, corruption scandals, andhigh
levels of crime and violence and by such economic factors
as declining or stagnant growth rates andhighlevels of
income inequality and poverty.
Since 2020, the Coronavirus Dis ease 2019 (COVID-19)
pandemic has had widespread public health, economic, and
politicaleffects in the region. On May21,2021, the region
surpassed 1 million deaths (29% of deaths worldwide), and
vaccination rates remain low for many countries in the
region. The International Monetary Fund estimated a

regional economic decline of 7% in 2020, with almost
every country in reces sion. As a result, poverty and
inequality have increased throughout the region, and many
countries may struggle with protracted economic
recoveries. The economic setback associated with the
pandemic contributed to increased protests in the regionin
late 2020 and early 2021. Beginning in late April2021,
mass protests in Colombia against a pandemic-related tax
reform turned into broader anti-government protests.
Trump Administration Policy
Under the Trump Administration, U.S. relations with LAC
generally moved toward a more confrontational approach,
especially regarding efforts to curb irregular immigration
from the region, compared with past Administrations'
emphasis onpartnership. FromFY2018 to FY2021, the
Trump Administration's proposed foreign aid budget
requests would have cut assistance to the region
considerably, but Congress generally rejected those
requests by providing significantly more assistance than
requested. To deter increased unauthorized migration from
Central America, the Adminis tration us ed a variety of
immigration policy tools, as well as aid cuts and threats of
increased U.S. tariffs and taxes on remittances. The
Administration also imposed broad economic sanctions on
Venezuela, which Congress generally supported, and
significantly increased sanctions on Cuba. According to
Gallup and Pew Research Centerpolls, negativeviews of
U.S. leadership in the region increased markedly during the
Trump Administration.
Biden Adm inistration Policy
Thus far, much of the Biden Administration's focus in LAC
has been on immigration and Central America. President
Joe Biden has ended many ofthe previous Administration's
restrictive immigration policies, while contending with a
large increase in the number of undocumented Central
American and Mexican migrants seeking to enter the
United States. The Administration is preparing strategies to
address the root causes of Central American migration and
has indicated that it intends to request $4 billion in
as s is tance to Central America over a four-year period,
including $861 million as part of the FY2022 foreign
assistance budgetrequest. In March 2021, President Biden
tasked Vice PresidentKamala Harris with overseeing
efforts with Central America and Mexico.
On Venezuela, the Biden Administration continues to
pressure the government of Nicolas Maduro through
sanctions and maintains thatthe United States is committed
to working multilaterally to bring about a return to
democracy. In a shift fromthe previous Administration, the
Secretary of Homeland Security granted temporary
protected status (TPS) to Venezuelans in the United States
in March 2021.

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