By: Staff Writer
February 16, 2021
A regional NGO says that while it is “too early to tell” how China will behave in the Caribbean Central American (CABCEN) region under the Biden administration, Biden must re-engage the region the right way not do what the former Trump administration did in ignoring it.
Richard Kiy, president and chief executive officer of the Institute of the Americas, told Caribbean Magazine Plus that it is “too early to tell” if the People Republic of China will exert more influence over the Caribbean and Central American region under president Joe Biden’s administration. He also raised concerns about the Biden administration not having an envoy to the region as yet either.
Mr Kiy also said there are several other factors to consider in the PRC to Caribbean and Central American (CABCEN) matrix to consider. He said, “First, it is important to recognize that PRC’s trade and investment agenda in Central America and the Caribbean is inextricably linked to its political agenda vis-à-vis South China Sea and Taiwan. They are difficult to decouple.”
“While the United States has maintained formal diplomatic relations with China since 1979, it also continues to maintain unofficial, informal relations with Taiwan which has been codified into law by the Taiwan Relations Act (TRA). While the TRA does not guarantee that the United States will intervene militarily if the PRC attacks or invades Taiwan, it has enabled the United States to continue to be the main provider of arms to Taiwan. Also, such policies have kept the US Navy in the South China Sea, which is an on-going source of tension for China.”
In fact, some of the last remaining official diplomat relations that Taiwan has happens to be in the CABCEN region with them having official relations with eight out of 15 states that still recognize Taiwan as an independent state happen to be in the CABCEN region.
Mr Kiy continued, “Specific to CABCEN, the region has historically been the single largest bloc of regional nations maintaining diplomatic relations with Taiwan. Over the past two decades, however, China has been making notable in-roads in the region by ramping up its soft power influence through increased availability of direct aid, public financing and investment. Costa Rica was the first country in the region to cut ties with Taiwan in 2007 in exchange for expanded investment and closer ties and Beijing. More recently, during the Trump Administration, Panama, El Salvador, and the Dominican Republic have broken off diplomatic ties with Taiwan and established formal relations solely with the PRC.”
The Dominican Republic was the most recent country to break ties with them being offered $3bn in investments over the last five years.
Mr Kiy also said: “Second, PRC’s growing investment and influence in the Panama Canal zone given its strategic importance for international shipping and trade as well as transit for U.S. military vessels. That said, such investments, again, need to be put in a geo-political context. With United States’ on-going naval presence in the South China Sea coupled with its support of Taiwan and recent political pressures vis-à-vis Hong Kong, its only logical that the PRC would seek to ratchet up its own offensive geopolitical pressures by expanding own presence in the Central America and the Caribbean, America’s own backyard.”
“Third, specific to the Caribbean, the PRC expanded its influence across the region over the last five years as the Trump Administration had basically ignored the region, focusing mostly on punitive polices aimed at Cuba and Venezuela, and refusing to deal with the region’s representative organization, CARICOM. The PRC, in turn, has provided billions of dollars in loans, investments and grants to Caribbean nations in recent years through its Belt & Road Initiative, ranging from building sports stadiums, a school and a power plant (for free) to massive investments in Jamaica’s Kingston Freeport Terminal and a deep-water container port in the Bahamas, to the Baha Mar Resort & Casino, also in the Bahamas. Over the years China has essentially taken control of two strategic container ports in the Caribbean, owns shares of world-class oil and gas blocs in Guyana, bought land in Jamaica and developed valuable mineral deposits.”
Mr Kiy said with regard to Central American, “Of relevance to Central America and the Caribbean is the fact that leaders across the region are beginning to realize that Sino soft power comes with its own unique authoritarian Chinese characteristics, PRC soft power in the region is evolving to expanding “sharp power” influence. Here, the PRC’s “sharp power” has been targeted in ways to manipulate and co-opt culture, education systems and the media in the countries across the region where its influence is growing in order to enhance its geo-strategic interests over not just the issue of Taiwan but also on issues related to Tibet, the Dali Lama, the recent Hong Kong protests, and the Uyghur internment camps.”
“The PRC use of soft power across Central America and the Caribbean has brought with it the deployment of corrosive capital that has also undermined transparency and the rule of law as evidenced by various controversial projects including the proposed $1.5 billion Moín oil refinery project in Costa Rica that was cancelled in 2016 to due heighted environmental impact concerns. Similarly, the proposed Nicaragua Inter-oceanic Grand Canal project backed by Chinese billionaire Wang Jing remains in limbo, due the potential technical feasibility and, again, environmental concerns.”
Mr Kiy said that looking forward however, we must continue to ensure that president Biden’s policies should be “built around the strategic goals focused on promoting expanded human rights, democracy, promotion of the rule of law and transparency. Across Latin America and the Caribbean, a key focus of the Biden Administration will be COVID-19 relief efforts and climate change. Here, an important tenant of President Biden’s approach to foreign policy in Latin America and the Caribbean will be re-defining U.S. regional engagement by using diplomacy and not threats of military intervention.”
On the other hand, he added: “In Central America, President Biden has committed to investing $4bn of direct U.S. foreign aid with a focus on the Northern Triangle countries, Guatemala, Honduras and El Salvador. In the Caribbean President Biden’s main efforts will be directed at: Helping the Caribbean recover from the devastating effects of the Coronavirus and its socioeconomic consequences.
The Biden administration as re-joined the World Health Organisation, something that his predecessor, Donald Trump, pulled America out of at the height of the COVID-19 pandemic and as such Biden is now promising to help deliver vaccines across the Caribbean and Central American region as a sign of support through this health crisis.
Mr Kiy addd: “Biden will begin strengthening existing programs aimed at confronting climate change, while promoting new ones focused on promoting greater adaptability and climate resiliency.”
“Using climate change initiatives to promote a greater supply of stable, economical electric energy in an area where electricity rates are extremely high. Promoting renewable energy projects across the region.”
Gaston Browne, prime minister of Antigua and Barbuda, laid down a challenge to President Biden earlier this year on climate change and urged the Biden administration to act with concerted effort to help combat the ravages of climate change. Something that CARICOM has also followed suit, but not to the degree and length Browne has.
“Normalizing immigration under a proposed, new immigration bill” is also something President Biden has promised to deliver Mr Kiy said.
Mr Kiy also said: “Supplying financial aid from the government (USAID, as well as making greater use of the U.S. International Development Finance Corporation (DFC) and the Overseas Private Investment Corporation (OPIC) to support private investment.”
“The fact that Vice President Harris has roots in Jamaica – a first – raises hopes that the new administration will pay closer attention to the region, despite the demands of other domestic and international issues.”
“President Biden, as Vice President, got to know Latin America and the Caribbean and devoted time to understanding the region. As vice president, under president Obama, he made 16 diplomatic missions to the region. He also undertook several important regional initiatives including launching the Caribbean Energy Security Initiative (CSEI) in 2014. The new Biden administration will likely also maintain and strengthen important regional trade preferences extended under updated/amended provisions of the Caribbean Basin Economic Recovery Act (CBERA) of 1983.”
“In summary, under the Biden-Harris Administration, Central America and the Caribbean will see more pro-active, consistent diplomatic engagement by the United States but with China’s expanding role in the region tensions will also continue to grow. While I do not foresee the United States forcing countries to choose sides, there will be increased U.S. pressures to promote trade and investment policies focused on the rule of law and transparency with expanded aid to countries committed to the principles of democracy and human rights.”
Mr Kiy warned on Cuba and Venezuela and said, “Finally, related to Cuba and Venezuela, Biden’s team is reviewing the previous administration’s policies. Of course, the guiding principles in U.S. dealings with Cuba and Venezuela – as with other countries – are, as already mentioned, support for democracy and human rights. Clear policies vis a vis Cuba and Venezuela are still not defined but there is little likelihood of rapprochement. The Caribbean region is divided on recognizing the legitimate government in Venezuela. The Caribbean wants the U.S. to apply diplomacy in its relations with Caracas, not threats of military intervention, as we saw under Trump. According to a recent report in the Miami Herald, “So far, Biden has signalled he will take a middle-of-the-road, multilateral approach on Venezuela. He has spoken of keeping pressure on the Maduro regime while engaging more with European and Latin American partners to expand multilateral sanctions and address the country’s growing humanitarian crisis.”