Updated June 30, 2021
Latin America and the Caribbean: U.S. Policy Overview
U.S. interests in Latin America and the Caribbean (LAC)
almost every country in recession. As a result, poverty and
are diverse and include economic, political, security, and
inequality have increased throughout the region, and many
humanitarian concerns. Geographic proximity has ensured
countries may struggle with protracted economic
strong economic linkages between the United States and
recoveries. The economic setback associated with the
LAC, with the United States a major trading partner and
pandemic contributed to increased protests in the region in
source of foreign investment for many regional countries.
late 2020 and 2021. Beginning in late April 2021, mass
Free-trade agreements (FTAs) have augmented U.S.
protests in Colombia against a pandemic-related tax reform
economic relations with 11 countries in the region. LAC is
turned into broader anti-government protests.
also a large source of U.S. immigration, both authorized
and unauthorized; economic and security conditions are
Concern about democracy and human rights has increased
major factors driving migration trends.
in several countries in 2021. Haiti is experiencing
heightened insecurity and political unrest against President
Curbing the flow of illicit drugs from LAC has been a key
Jovenel Moïse, who has ruled by decree since January
component of U.S. relations with the region for decades.
2020; legislative and presidential elections are scheduled
The flow of illicit drugs—including heroin,
for September 2021. The government of Nicaraguan
methamphetamine, and fentanyl from Mexico and cocaine
President Daniel Ortega has arrested prominent opposition
from Colombia—poses risks to U.S. public health and
political and business leaders, including several who were
safety. Since 2000, Colombia has received support through
planning to challenge Ortega in the November 2021
Plan Colombia and its successor programs. The United
presidential election. In El Salvador, President Nayib
States also has sought to forge partnerships with other
Bukele ousted his critics on the Supreme Court and ended
countries to combat drug trafficking and related violence
an anti-corruption body accord with the Organization of
and to advance citizen security, including through the
American States.
Mérida Initiative, begun in 2007 to support Mexico; the
Central America Regional Security Initiative (CARSI),
Trump Administration Policy
begun in 2008; and the Caribbean Basin Security Initiative
Under the Trump Administration, U.S. relations with LAC
(CBSI), begun in 2009.
generally took a more confrontational approach, especially
regarding efforts to curb irregular migration from the
Another long-standing component of U.S. policy has been
region, compared with past Administrations’ emphasis on
support for strengthened democratic governance and the
partnership. From FY2018 to FY2021, the Trump
rule of law, including initiatives to support civil society and
Administration’s proposed foreign aid budget requests
promote human rights. Although many countries in the
would have cut assistance to the region considerably, but
region have made strides in democratic political
Congress generally rejected those requests by providing
development, several face considerable challenges.
significantly more assistance than requested. To deter
increased unauthorized migration from Central America,
Increasing Chal enges in the Region
the Administration used various immigration policy tools,
Over the past several years, the quality of democracy has
as well as aid cuts and threats of increased U.S. tariffs and
eroded in a number of countries in the region, along with
taxes on remittances. It also imposed broad economic
public satisfaction with how democracy is working. In
sanctions on Venezuela, which Congress generally
addition to Venezuela, Cuba, and Nicaragua—all ruled by
supported, and increased sanctions on Cuba.
authoritarian governments repressing the political
opposition—human rights groups have expressed concerns
Biden Administration Policy
about democratic backsliding in several other countries.
Thus far, much of the Biden Administration’s focus in LAC
Many countries in LAC experienced social unrest in 2019
has been on immigration and Central America. President
fueled by such political factors as weak democratic
Biden has ended many of the Trump Administration’s
institutions, politicized judicial systems, corruption
restrictive immigration policies , while contending with a
scandals, and high levels of crime and violence, and by
large increase in the number of undocumented Central
such economic factors as declining or stagnant growth rates
American and Mexican migrants seeking to enter the
and high levels of income inequality and poverty.
United States. In March 2021, President Biden tasked Vice
President Kamala Harris with overseeing efforts with
Since 2020, the Coronavirus Disease 2019 (COVID-19)
Central America and Mexico; she visited Guatemala,
pandemic has had widespread public health, economic, and
Mexico, and the Southwest border in June 2021.
political effects in the region. As of June 22, 2021, the
region reported over 1.2 million deaths (32% of deaths
The Administration’s FY2022 budget request for foreign
worldwide), and vaccination rates remain low for many
assistance to LAC amounts to almost $2.1 billion, nearly
countries in the region. The International Monetary Fund
16% over estimated FY2021 appropriations. The request
estimated a regional economic decline of 7% in 2020, with
https://crsreports.congress.gov
Latin America and the Caribbean: U.S. Policy Overview
includes almost $861 million to Central America to address
In March 2021, the House approved H.R. 6, which would
the root causes of irregular migration.
provide a pathway to citizenship for those brought to the
United States as children and those from countries with
With regard to the pandemic, the Biden Administration has
TPS designations (currently including El Salvador, Haiti,
committed to providing COVID-19 vaccines globally,
Honduras, Nicaragua, and Venezuela).
including to LAC, through multilateral mechanisms and
bilaterally. In March 2021, the Administration announced it
On June 8, 2021, the Senate passed S. 1260, the United
would share 2.5 million vaccine doses with Mexico. In June
States Innovation and Competition Act of 2021, which
2021, the Administration announced its strategy for
would address issues involving China worldwide. As
providing 80 million vaccine doses worldwide, including 20
approved, the bill included numerous LAC provisions,
million doses to LAC through the COVID-19 Vaccines
including provisions that would establish a strategy for
Global Access (COVAX) Facility (a multilateral
public and private investment, trade, and development;
mechanism to facilitate equitable vaccine distribution) and
strengthen U.S. economic competitiveness and promote
a portion of another 20 million doses targeted for regional
good governance, human rights, and the rule of law; require
priorities and global partners. The Administration also
a report assessing China’s engagement in international
announced in June that it would donate 500 million doses to
organizations and the defense sector in the region; authorize
92 low- and middle-income economies countries through
a capital increase for the Inter-American Development
the COVID-19 Vaccines Advance Market Commitment
Bank; support U.S. defense cooperation; and increase
(COVAX AMC), launched by Gavi, the Vaccine Alliance;
engagement with civil society regarding accountability,
10 LAC countries are eligible for such donations.
human rights, and the risks of pervasive surveillance
technologies. In the House, H.R. 3524, the Ensuring
The Biden Administration continues to pressure the
American Global Leadership and Engagement Act,
Venezuelan government of Nicolás Maduro through
introduced May 25, has some of the same LAC provis ions
sanctions and maintains it is committed to working
as S. 1260 and includes provisions to strengthen U.S.
multilaterally to bring about a return to democracy. In a
engagement with the Caribbean.
shift from the previous Administration, the Secretary of
Homeland Security granted temporary protected status
On June 29, the House passed H.R. 2471, which would
(TPS) to Venezuelans in the United States in March 2021.
promote the sustainable rebuilding and development of
Haiti and prioritize U.S. support for anti-corruption efforts
With regard to other concerns about democracy in the
and human rights. A similar Senate bill, S. 1104, was
region, the Biden Administration imposed targeted
introduced in April.
sanctions on several Nicaraguan officials in response to the
arbitrary detentions of opposition leaders and called for new
To date, the Senate has approved four resolutions on U.S.
legislative and presidential elections in Haiti. The
relations with LAC. In April, the Senate approved S.Res.
Administration maintains that it is reviewing policy toward
22, reaffirming the U.S. partnership with Ecuador, and
Cuba and that human rights will be a core pillar of the
S.Res. 37, expressing solidarity with the San Isidro
policy; currently, sanctions imposed on Cuba during the
Movement, a Cuban civil society protest group. In May, the
Trump Administration remain in place.
Senate approved S.Res. 81, honoring Las Damas de Blanco,
a women-led nonviolent Cuban human rights group, and
Among other issues, cooperation on climate change likely
S.Res. 120, recognizing the forthcoming Summit of the
will become a priority for policy toward the region. In
Americas and reaffirming the U.S. commitment to a more
February 2021, the United States rejoined the Paris
prosperous, secure, and democratic Western Hemisphere.
Agreement, reversing the previous Administration’s U.S.
withdrawal. Seven LAC leaders participated in the April
Among other committee-reported measures, the House
2021 Leaders’ Summit on Climate hosted by President
Foreign Affairs Committee reported H.Res. 408 in May,
Biden. The next Summit of the Americas (to be hosted by
which would urge the government of El Salvador to respect
the United States in 2022) could be an opportunity for the
the country’s democratic institutions. The Senate Foreign
Administration to articulate its policy agenda for LAC and
Relations Committee reported S.Res. 44 in March, which
strengthen engagement with hemispheric leaders.
would denounce fraudulent legislative elections in
Venezuela, and S. 1041 on June 24, which would order
Congressional Action in the 117th Congress
targeted sanctions against Nicaraguan officials for
Congress traditionally has played an active role in policy
antidemocratic actions. The Senate Homeland Security and
toward LAC through both legislation and oversight. Since
Governmental Affairs Committee reported S. 688 in March,
2020, Congress has appropriated (through P.L. 116-123,
which would prohibit contracting with persons who have
P.L. 116-136, P.L. 116-260, and P.L. 117-2) some $17
business operations with Venezuela’s Maduro government.
billion in international affairs funding to respond to
COVID-19 globally, including in LAC. P.L. 116-260
Also see CRS In Focus IF11581, Latin America and the
included $4 billion to be made available as a contribution to
Caribbean: Impact of COVID-19; and CRS Report R46781,
Gavi, the Vaccine Alliance. Some Members of Congress
Latin America and the Caribbean: U.S. Policy and Key
have called for the President to prioritize Latin American
Issues in the 117th Congress.
and Caribbean countries in donating surplus vaccines.
Mark P. Sullivan, Specialist in Latin American Affairs
IF10460
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Latin America and the Caribbean: U.S. Policy Overview
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