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

The United States and neighboring Latin America and the
Caribbean (LAC) maintain strong linkagesbased 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 dis asters, and familial ties. Curbing the
flow of illicit drugs has been a long-standing component of
relations, involving close cooperationwith Mexico,
Colombia, Central America, and the Caribbean. U.S.
Administrations havelongsupported democracy andhunm
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
s atis faction with how democracy is working. In addition to
Venezuela, Cuba, and Nicaragua-allruled by authoritarian
governments repressing the political opposition-human
rights groups have expres sed concerns about democratic
b acksliding in s everal other countries. Many countries in
LAC experienced social unrest in 2019, fueled by such
politicalfactors as weakdemocratic institutions, politicized
judicial systems, corruption scandals, and high levels of
crime and violence and by sucheconomic factors as
declining or stagnant growthrates and high levels of
income inequality and poverty.
Since 2020, the Coronavirus Disease2019 (COVID-19)
pandemic has had widespread public health, economic, and
political effects in LAC. As of early February 2022, the
region reported over 1.6 million deaths (almost 28% of
deaths worldwide). The Pan American HealthOrganization
reported that 63% ofthe region's population was fully
vaccinated as of early February 2022 but noted that more
than one in four people across the Americas had yet to
receive a single dose. The International Monetary Fund
(IMF) reported a 6.9% regional economic decline in 2020;
as a result, poverty and inequality have increased.
Most LAC countries have begun to recover economically,
with the IMF estimating a regional growth rate of 6.8% in
2021 and projecting more modestgrowth of 2.4% in 2022.
Nevertheless, many countries may struggle with protracted
recoveries. The pandemic-relatedeconomic 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 helped fuelmigration.
The region faces numerous political challenges. In
Venezuela, the ongoing political and humanitarian crisis

under the government of Nicolas Maduro has resulted in an
estimated 6 million migrants and is a challenge for the
entire hemisphere. Haitiremains in turmoil after the
assassinationofPresident JovenelMoisein July 2021,
contending with uncertainty over the future of elections, a
surge in gang violence, and the aftermath of a severe
earthquake that struckin August. In Nicaragua, President
DanielOrtega's government es calatedrepression by
arresting opposition figures and banning major opposition
parties fromp articip ating in the country's November 2021
elections, in which Ortega claimed victory. The Cuban
government responded to widespread anti-government
protests in July with mass arrests and detentions and
suppressed subsequent plans for a nationwide march.
Baden Administration Policy
In its initial months, the Biden Adminis tration 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 ofCentral America's Northern Triangle
countries (ElSalvador, Guatemala, and Honduras).
In addition, the Administrationhas fleshed out its broader
approach toward the region. Its priorities include efforts to
promote public health and economic recovery fromthe
pandemic; to workwith partners to promote inclusive
democracy throughout theregion; to provide support to
address Haiti's humanitarian, security, and political
challenges; and to engage more broadly with the region to
address migration challenges. To advance these andother
initiatives, the Administration's FY2022 budget requestfor
foreign as sistance to LAC amounts to almost $2.1 billion,
nearly 16% overestimated FY2021 appropriations. The
requestincludes almost $861 million to Central America to
address the rootcauses of irregular migration.
The Administration also is providing significant pandemic-
related assistance to theregion. As ofmid-February 2022,
the United States had donated over 62million doses to 29
LAC countries. As of November 2021, the State
Department and the U.S. Agency for International
Development reportedproviding more than $614 million in
aid to support thepandemic response.
On Venezuela, the Biden Administration continues to
pressure the Maduro government through sanctions and
state its commitment to working multilaterally to press for a
return to democracy. The Administration also continues to

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