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Updated April 29, 2022

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

The United States and neighboring Latin America and the
Caribbean (LAC) maintain strong linkages based on
geographic proximity and diverse U.S. interests, including
economic, political, and security concerns. The United
States is a major trading partner and source of foreign
investment for many of the 33 countries in LAC, with free-
trade agreements enhancing economic linkages with 11
countries. The region is a large source of U.S. immigration,
both authorized and irregular; major factors driving
migration include proximity, economic and security
conditions, natural disasters, and familial ties. Curbing the
flow of illicit drugs has been a long-standing component of
relations, involving close cooperation with Mexico,
Colombia, Central America, and the Caribbean. U.S.
Administrations have long supported democracy and human
rights in the region, with a current focus on Cuba,
Nicaragua, and Venezuela, as well as on democratic
backsliding and corruption in other countries.
Increasing Challenges in the Region
Over the past several years, the quality of democracy has
eroded in a number of countries in LAC, along with public
satisfaction with how democracy is working. In addition to
Venezuela, Cuba, and Nicaragua-all ruled by authoritarian
governments repressing the political opposition-human
rights groups have expressed concerns about democratic
backsliding in several other countries. Many countries in
LAC experienced social unrest in 2019, fueled by such
political factors as weak democratic institutions, politicized
judicial systems, corruption scandals, and high levels of
crime and violence and by such economic factors as
declining or stagnant economic growth and high levels of
income inequality and poverty.
Since 2020, the Coronavirus Disease 2019 (COVID-19)
pandemic has had widespread public health, economic, and
political effects in LAC. As of late April 2022, the region
reported nearly 1.7 million deaths (over 27% of deaths
worldwide). According to the Pan American Health
Organization, more than 66% of the region's population
was fully vaccinated as of April 20, 2022. Nevertheless, in
four Caribbean countries, less than 30% of the population
was fully vaccinated and in eight other LAC countries, less
than half was fully vaccinated.
The International Monetary Fund (IMF) reported a 7.0%
regional economic decline in 2020; as a result, poverty and
inequality increased. Most LAC countries began to recover
economically in 2021, with the IMF estimating a regional
growth rate of 6.8% and projecting more modest growth of
2.5% in 2022. Nevertheless, many countries may struggle
with protracted recoveries. The pandemic-related economic
setback contributed to increased protests in LAC in 2020
and 2021. The region's economic decline, along with
difficult security and political conditions, also has fueled

migration. Russia's invasion of Ukraine is likely to affect
LAC countries due to increased energy and food costs.
The region faces numerous political challenges. In
Venezuela, the ongoing political and humanitarian crisis
under the government of Nicolis Maduro has resulted in an
estimated 6 million migrants and is a challenge for the
entire hemisphere. Haiti remains in turmoil after the July
2021 assassination of President Jovenel Moise, contending
with uncertainty over future elections, a surge in gang
violence, and the aftermath of a severe earthquake that
struck in August. In Nicaragua, President Daniel Ortega's
government escalated repression ahead of the country's
2021 elections, in which Ortega claimed victory, and has
continued repressing political opponents. In Cuba, the
government's responded to widespread anti-government
protests in July 2021 with mass arrests and detentions, and
harsh sentences for hundreds of protestors.
Biden Adminstration Policy
In its initial months, the Biden Administration focused
extensively on addressing the root causes of Central
American migration. President Biden ended some of the
Trump Administration's restrictive immigration policies,
while contending with a large increase in the number of
undocumented Central American and other migrants
seeking to enter the United States. In July 2021, the
Administration released two new strategies to address the
underlying causes that push Central Americans to migrate
and to manage migration in the region collaboratively. The
Administration also has imposed targeted sanctions for
corruption against dozens of current and former officials of
the governments of Central America's Northern Triangle
countries (El Salvador, Guatemala, and Honduras).
The Administration also has fleshed out its broader
approach toward the region. Its priorities include efforts to
promote public health and economic recovery from the
pandemic; to work with partners to promote inclusive
democracy throughout the region; to provide support to
address Haiti's humanitarian, security, and political
challenges; and to engage more broadly with the region to
address migration challenges as the Administration prepares
to lift public health-related immigration restrictions
imposed pursuant to Title 42 of the U.S. Code.
To advance these and other initiatives, the Administration's
budget requests for foreign assistance to LAC amounted to
almost $2.1 billion for FY2022 and $2.4 billion for
FY2023, respectively nearly 16% and 33% over the
FY2021 enacted level. The Administration also is providing
significant pandemic-related assistance to the region. As of
late April 2022, the United States had donated over 66
million vaccine doses to 29 LAC countries. As of
November 2021, the State Department and the U.S. Agency
for International Development reported providing more
than $614 million in aid to support the pandemic response.

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