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Congressional Research Service
Informing the legislative debate since 1914


Updated March  28, 2019


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


U.S. interests in Latin America and the Caribbean are
diverse and include economic, political, security, and
humanitarian concerns. Geographic proximity has ensured
strong economic linkages between the United States and the
region, with the United States being a major trading partner
and source of foreign investment for many Latin American
and Caribbean 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 legal and illegal; geographic
proximity and economic and security conditions are major
factors driving migration trends.
Curbing the flow of illicit drugs from Latin America and
the Caribbean has been a key component of U.S. relations
with the region and a major interest of Congress for more
than three decades. The flow of illicit drugs, including
heroin, methamphetamine, and fentanyl from Mexico and
cocaine from Colombia, poses risks to U.S. public health
and safety. Colombia has received long-standing support
through Plan Colombia and its successor programs. For
over a decade, the United States has engaged in close
partnerships to combat drug trafficking and related violence
and advance citizen security: the M6rida Initiative began in
2007 to support Mexico; the Central America Regional
Security Initiative (CARSI) began in 2008; and the
Caribbean Basin Security Initiative (CBSI) began in 2009.
Although many  countries in the region have made
enormous  strides in terms of democratic political
development since the 1980s, several face considerable
challenges. In Venezuela, undemocratic practices have risen
significantly over the past several years under the
authoritarian regime of Nicohis Maduro; the political and
humanitarian crisis in the country has resulted in mass
migration to neighboring countries. In Nicaragua, long-
ruling President Daniel Ortega responded to protests and
social unrest in 2018 with violent repression. Cuba remains
under authoritarian rule, although the government
transitioned to a new president, Miguel Dfaz-Canel, in
2018. High rates of crime and violence afflict a number of
countries; in some, journalists and human rights and
environmental activists have been targeted. High-profile
corruption scandals have stirred strong anti-corruption
sentiment throughout the region and helped to fuel the
election of populist presidents from the left and right,
respectively, in Mexico (Andr6s Manuel L6pez Obrador)
and Brazil (Jair Bolsonaro).

Trump   Administration   Policy
Under the Trump Administration, the outlook for U.S.
relations with Latin America and the Caribbean has
changed. In February 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. Although


the framework reflects continuity with long-standing U.S.
policy priorities for the region, it also appears to be at odds
with the Administration's actions, sometimes accompanied
by tough rhetoric, on foreign aid, trade, and immigration.
The Administration's proposed foreign aid budgets for
FY2018  and FY2019  would have significantly cut
assistance to the region by more than a third; the FY2020
proposed budget request also would cut funding to the
region by about 30%.
Negative views of U.S. leadership in the region have
increased markedly since 2017, influenced by disparaging
political rhetoric and certain actions on immigration and
trade. Such views could affect the willingness of some
countries to cooperate with the United States on regional
and global challenges, although some observers believe the
election of conservative governments in several Latin
American  countries could lead to increased cooperation.
On trade, in 2017, President Trump ordered U.S.
withdrawal from the proposed Trans-Pacific Partnership
(TPP) free trade agreement that had been negotiated in
2015; the TPP would have increased U.S. economic
linkages with three Latin American countries that were
parties to the agreement-Chile, Mexico, and Peru. The
President strongly criticized the North American Free Trade
Agreement  (NAFTA)  with Mexico  and Canada, warned
that the United States might withdraw from it, and initiated
renegotiations in 2017; ultimately the three countries agreed
in September 2018 to a new United States-Mexico-Canada
Agreement  (USMCA),   which leaves NAFTA  largely intact
but includes some modernizing updates and changes,
especially regarding the dairy and auto industries.
Beyond  trade, relations with Mexico have been tested
because of inflammatory anti-immigrant rhetoric and
immigration actions. In September 2017, the
Administration announced that it would end the Deferred
Action for Childhood Arrivals program (DACA); begun in
2012 by the Obama  Administration, the program provides
relief from deportation for certain immigrants who arrived
as children. The future of the initiative remains uncertain
given challenges in federal court; if ended, some 550,000
Mexicans  and more than 100,000 migrants from other
countries in the region could be affected. Despite tensions,
U.S.-Mexican relations remain strong, especially energy
ties and security cooperation related to drug interdiction.
Other Administration actions on immigration have caused
concern in the region. The Administration announced the
termination of Temporary Protected Status (TPS)
designations for Nicaragua, Haiti, El Salvador, and
Honduras. Other immigration actions, such as the
implementation of a zero tolerance policy toward illegal
border crossings, could restrict the ability of Central
American  migrants to receive asylum.


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