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Updated November 23, 2021
Latin America and the Caribbean: U.S. Policy Overview

The United States maintains strong linkages with
neighboring Latin America and the Caribbean (LAC) 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 expressed support for democracy
and human rights in the region, especially in Cuba,
Nicaragua, and Venezuela, and have raised corruption and
human rights concerns 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 growth rates 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 November 23, 2021, the
region reported over 1.5 million deaths (almost 30% of
deaths worldwide). The rollout of vaccines in LAC has
varied considerably. According to the Pan American Health
Organization, 50% of the region's population was fully
vaccinated as of November 17, although coverage was
significantly lower in almost half of LAC countries. The
International Monetary Fund (IMF) reports a regional
economic decline of 7% in 2020, with almost every country
in recession. As a result, poverty and inequality have
increased throughout LAC.
Most of the region's countries are projected to begin
economic recovery in 2021, with the IMF projecting a
regional growth rate of 6.3%, but many countries may
struggle with protracted recoveries. The economic setback
associated with the pandemic contributed to increased
protests in LAC in 2020 and 2021. Regional economic
decline, along with difficult security and political
conditions, has helped fuel increased migration.

LAC faces numerous political challenges. In Venezuela, the
ongoing political and humanitarian crisis under the
government of Nicolas Maduro has resulted in an estimated
5.7 million migrants and is a challenge for the entire
hemisphere. Haiti remains in turmoil after the assassination
of President Jovenel Moise in July, contending with
uncertainty over the future of national 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 by arresting opposition
figures and banning major opposition parties from
participating in the country's November 7 elections, in
which Ortega claimed victory. The Cuban government
responded to widespread anti-government protests on July
11 with mass arrests and detentions and suppressed plans
for a nationwide peaceful civic march for change on
November 15.
Biden Administration Policy
In the Biden Administration's initial months, much of its
focus in LAC was on immigration and Central America.
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 collaboratively manage
migration in the region. The Administration also imposed
targeted sanctions against dozens of current and former
officials of the governments of Central America's Northern
Triangle countries (El Salvador, Guatemala, and Honduras),
for corruption or obstructing investigations into corruption.
The Biden Administration's FY2022 budget request for
foreign assistance to LAC amounts to almost $2.1 billion,
nearly 16% over estimated FY2021 appropriations. The
request includes almost $861 million to Central America to
address the root causes of irregular migration.
On the pandemic, the Administration committed to provide
1.2 billion COVID-19 vaccines globally, including to LAC.
As of November 17, the United States had delivered almost
51 million vaccine doses to 29 LAC countries and the State
Department and U.S. Agency for International
Development had provided more than $614 million to
support the pandemic response in the region.
The Biden Administration continues to pressure the Maduro
government in Venezuela through sanctions and states it is
committed to work multilaterally to press for a return to
democracy. The Administration also continues to provide
humanitarian support to Venezuelans inside and outside the
country. In March 2021, the Secretary of Homeland
Security granted temporary protected status (TPS) to
Venezuelans in the United States.

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