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

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

Updated December 29, 2022
Latin America and the Caribbean: U.S. Policy Overview
The United States and neighboring Latin America and the
ahead of the country’s 2021 elections, in which Ortega
Caribbean (LAC) maintain strong linkages based on
claimed victory, and has continued repressing political
geographic proximity and diverse U.S. interests, including
opponents. In Cuba, the government responded to
economic, political, and security concerns. The United
widespread anti-government protests in July 2021 with
States is a major trading partner and source of foreign
arrests and harsh sentences for hundreds of protestors. In
investment for many of the 33 countries in LAC, with free-
early December 2022, Peru’s Congress impeached
trade agreements enhancing economic linkages with 11
President Castillo after he attempted to dissolve Congress
countries. The region is a large source of U.S. immigration,
and install a government in which he would rule by decree;
both authorized and irregular; major factors driving
subsequent protests led to clashes with security forces that
migration include proximity, economic and security
resulted in multiple deaths.
conditions, natural disasters, and familial ties. Curbing the
The region’s economic decline, along with difficult security
flow of illicit drugs has been a long-standing component of
and political conditions, also has fueled irregular migration
relations, involving close cooperation with Mexico,
to the United States. In FY2022, Southwest border
Colombia, Central America, and the Caribbean. U.S.
enforcement encounters (apprehensions and expulsions)
Administrations have long supported democracy and human
reached almost 2.4 million, the highest level ever, with the
rights in the region, with a current focus on Cuba,
largest number of migrant encounters from Mexico, Cuba,
Nicaragua, and Venezuela—all ruled by authoritarian
Guatemala, Honduras, Venezuela, and Nicaragua.
governments repressing the political opposition—and on
democratic backsliding and corruption in other countries.
Biden Administration Policy
Increasing Challenges in the Region
In its first year, the Biden Administration focused
extensively on addressing the root causes of Central
Beginning in 2020, the Coronavirus Disease 2019 (COVID-
American migration. President Biden revised some of the
19) pandemic had widespread public health, economic,
Trump Administration’s restrictive immigration policies,
social, and political effects throughout LAC. From the start
while contending with a large increase in the number of
of the pandemic to late December 2022, LAC countries
undocumented Central American and other migrants
reported more than 1.75 million COVID-19 deaths,
seeking to enter the United States. In July 2021, the
according to data from Johns Hopkins University. The
Administration released two new strategies to address the
region reported over 26% of deaths worldwide despite the
underlying causes that push Central Americans to migrate
region accounting for about 8.4% of the world’s population.
and to manage migration in the region collaboratively. The
Although over 70% of the region’s population has been
Administration also has imposed targeted sanctions for
fully vaccinated, five Caribbean countries have fully
corruption against dozens of current and former officials of
vaccinated less than 40% of their populations.
the governments of Central America’s Northern Triangle
Countries throughout the region suffered sharp recessions
countries (El Salvador, Guatemala, and Honduras).
in 2020 and increases in poverty. The International
The Administration also has fleshed out its broader
Monetary Fund (IMF) reported a 7.0% economic
approach toward the region. In October 2022, the
contraction for the region in 2020. Most LAC countries
Administration issued its National Security Strategy, which
began to recover economically in 2021 and 2022 but are
laid out three broad U.S. priorities for the Western
still contending with the lingering effects of the pandemic,
China’s economic slowdown, and increases in global fuel
Hemisphere—expanding economic opportunities,
strengthening democracy, and building security—that
and food prices due to Russia’s invasion of Ukraine.
reflect long-standing continuity with U.S. policy for the
Difficult economic times have contributed to increased
region. In its strategy, the Biden Administration
social protests in some countries and fueled an anti-
acknowledged the considerable challenges confronting the
incumbent electoral trend. IMF projections show the
region’s economic
Western Hemisphere, remarking that the COVID-19
growth rate slowing in 2023 to below
pandemic and resultant recession exacerbated long-standing
global growth prospects.
structural challenges, fueled political and social unrest,
The region faces several ongoing political challenges. In
undermined faith in democracy’s ability to deliver, and
Venezuela, the political and humanitarian crisis under the
spurred unprecedented levels of irregular migration. It
government of Nicolás Maduro has resulted in over 7
noted challenges posed by increased geopolitical and
million migrants since 2015. Haiti remains in turmoil after
economic volatility and climate change.
the July 2021 assassination of President Jovenel Moïse,
The Administration vowed to confront these challenges and
contending with surges in gang violence, uncertainty over
advance its policy priorities in the region through regular
future elections, the aftermath of a severe 2021 earthquake,
interaction and engagement, multilateral and institutional
and a new cholera outbreak in October 2022. In Nicaragua,
collaboration, and regional initiatives. Illustrative of this
President Daniel Ortega’s government escalated repression
engagement was the June 2022 Ninth Summit of the
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Latin America and the Caribbean: U.S. Policy Overview
Americas hosted by the Administration in Los Angeles,
Act of 2021 (RENACER Act; P.L. 117-54) in November,
CA, at which President Biden met with heads of
which directs the Administration to use diplomatic tools
government or representatives from 30 LAC countries and
and targeted sanctions against antidemocratic actions and
Canada. The nations approved political commitments
corruption. In December 2021, Congress approved the
related to health, climate change, clean energy, digital
National Defense Authorization Act for Fiscal Year 2022
transformation, and democratic governance.
(P.L. 117-81), with provisions on Colombia, Central
America, and China’s presence and influence in LAC.
The Biden Administration also announced several new
regional policy initiatives at the June 2022 summit. These
In March 2022, Congress completed action on the FY2022
included new aid commitments to advance food security; a
foreign aid appropriations bill, included as Division K of
partnership with the Pan American Health Organization to
the Consolidated Appropriations Act (P.L. 117-103).
establish an Americas Health Corps that would provide
Although the measure did not specify total funding for
training throughout the region; a new U.S.-Caribbean
LAC, its explanatory statement included funding directives
Partnership to Address the Climate Crisis 2030 (PACC
for several key countries (Colombia, Haiti, Mexico,
2030) aimed at supporting climate adaptation, strengthening
Venezuela) and regional programs for the Caribbean and
energy security, and building resilience for critical
Central America; ultimately the State Department allocated
infrastructure and local economies; and a new initiative, the
over $2 billion in assistance for the region, a 13% increase
Americas Partnership for Economic Prosperity, aimed at
from FY2021. P.L. 117-103 also included, as Division V,
mobilizing increased investment, making supply chains
the Haiti Development, Accountability, and Institutional
more resilient, creating clean energy jobs and energy, and
Transparency Initiative Act, to promote the sustainable
ensuring sustainable and inclusive trade. The United States
rebuilding and development of Haiti and the prioritization
also joined with 20 other hemispheric countries to endorse
of U.S. support for anti-corruption efforts and human rights.
the Los Angeles Declaration for Migration and Protection,
In December 2022, Congress enacted the James M. Inhofe
which seeks to mobilize the region around actions to create
National Defense Authorization Act for Fiscal Year 2023
conditions for safe, orderly, humane, and regular migration,
(P.L. 117-263), with several LAC provisions, including
and to strengthen frameworks for international protection
reporting requirements on Mexico, the Caribbean Basin,
and cooperation.
and the activities of China and Russia in LAC. The
Policy analysts offered mixed assessments of the summit.
measure also incorporated the United States-Ecuador
Some asserted that U.S. initiatives were modest and not
Partnership Act of 2022.
fully developed, whereas others emphasized that the
Congress also completed action in December on FY2023
summit prompted pragmatic steps on shared challenges that
foreign aid appropriations in the Consolidated
could portend stronger collaboration on such key issues as
Appropriations Act, 2023 (H.R. 2617, Division K).
health, migration, climate change, and economic recovery.
Although the law did not specify total funding for the
On other political challenges, the Administration imposed
region, it designated more funding than requested for
new targeted sanctions on Cuba and Nicaragua as their
Colombia and the Caribbean Basin Security Initiative;
governments became more repressive and continued to
included numerous other funding directives for countries,
pressure the Maduro government in Venezuela through
regional programs, and initiatives; continued to condition
sanctions. Nevertheless, the Administration also
assistance to several countries; and included numerous
implemented some Cuba policy changes aimed at
reporting requirements.
supporting the Cuban people, including the easing of some
Both houses approved several resolutions, including H.Res.
restrictions on travel and remittances. After the Maduro
760, S.Res. 37, S.Res. 81, S.Res. 310, and S.Res. 489 on
government resumed talks with Venezuela’s opposition in
the human rights situation in Cuba; S.Res. 22 on relations
November 2022, the Administration issued a license for a
with Ecuador; S.Res. 120 on the Summit of the Americas;
U.S. oil company to resume some operations in Venezuela.
H.Res. 1168 on prioritizing trade programs with the
On Haiti, the Administration is working to support
Caribbean; S.Res. 753 on Brazil’s presidential election; and
conditions for free and fair elections, including support to
S.Res. 472 on relations with the Dominican Republic.
restore security and address gang violence and thereby
permit the unimpeded flow of humanitarian aid.
Also see CRS Report R46781, Latin America and the
Caribbean: U.S. Policy and Key Issues in the 117th
Legislative Action in the 117th Congress
Congress; CRS Report R47331, U.S. Foreign Assistance to
Congress traditionally has played an active role in policy
Latin America and the Caribbean: FY2023 Appropriations;
toward LAC in terms of both legislation and oversight.
CRS In Focus IF11581, Latin America and the Caribbean:
Since 2020, Congress has appropriated some $17 billion in
Impact of COVID-19; CRS In Focus IF10982, China’s
international affairs funding to respond to COVID-19
Engagement with Latin America and the Caribbean; and
globally. In the 117th Congress, this funding included $10.8
CRS Insight IN11934, 2022 Summit of the Americas; CRS
billion appropriated in the American Rescue Plan Act of
Report R47230, Organization of American States: In Brief;
2021 (P.L. 117-2), enacted in March 2021. This supported
and CRS In Focus IF12031, Anti-corruption Efforts in Latin
over $539 million in U.S. Agency for International
America and the Caribbean.
Development funding and over 70 million COVID-19
vaccine doses for the region.
Mark P. Sullivan, Specialist in Latin American Affairs
In other action in 2021, Congress approved the Reinforcing
Nicaragua’s Adherence to Conditions for Electoral R
IF10460
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Latin America and the Caribbean: U.S. Policy Overview

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https://crsreports.congress.gov | IF10460 · VERSION 32 · UPDATED