By: Staff Writer
March 1, 2024
The Atlantic Council said in a recent report highlighted that re-engagement with the Latin American-Caribbean region through trade and investmernt is the way to win back regional support.
The report, “Redefining US strategy with Latin America and the Caribbean for a new era,” said the US should, “craft and champion a hemispheric, principles based US government strategy, with the objective of mutual and inclusive economic growth. At its heart, this approach would emphasize deepened trade and tailored economic commitments to meet LAC’s diverse needs. Beyond trade, the US strategy should champion regulatory harmonization to foster a business environment ripe for innovation and expansion, and work closely with the private sector to encourage and entice nearshoring and increased investment across the Americas. The US Trade Representative (USTR) could work together with the Department of Commerce in facilitating a business environment conducive to innovation and expansion.”
For the past few decades, the US-LAC relationship has faced growing challenges, including perceptions of reduced US engagement in the region and the growing influence of external powers like China, Russia, and Iran. LAC countries are diversifying their global partnerships, and while geographic and interpersonal ties bind the United States to the hemisphere, these alone are insufficient to move the relationship into a new era.
The report added: “LAC is currently undergoing political and socioeconomic shifts, facing challenges from transnational criminal organizations, the lingering effects of the COVID-19 pandemic, global conflict, and cybersecurity threats, to name a few. Internal issues like slow economic growth, inequality, political unrest, and declining democratic support further complicate the situation. The World Bank’s projection of LAC’s modest economic growth and the Latinobarómetro survey’s findings on waning democratic sentiment underscore the urgency for revitalizing this partnership.1 For many in the hemisphere, democracy has not delivered, and the lack of opportunities for economic advancement is one of the underlying problems driving the widespread disillusionment and discontent with democracy in LAC.
Ultimately, the US should work to achieve a mutually beneficial economic partnership where investment in LAC results in parallel growth and investment for the United States; establish a comprehensive trade relationship that equally values and integrates both services and goods; attain a streamlined and efficient supply chain network encompassing strategically important sectors; and ensure expanded and equitable market access across the hemisphere.
The report also said: “The executive branch and Congress must articulate a commercial and economic strategy for the Americas and allocate necessary funds for implementation. Specifically, a whole-of-government effort that builds on existing initiatives to promote nearshoring in the Americas could be transformative for the US-LAC partnership.
“If reaching wide-ranging free trade agreements (FTAs) is not possible, an alternative could be narrower, issue-specific agreements centered on strategic sectors such as semiconductor manufacturing, personal protective equipment, pharmaceuticals, and services trade. The United States must also consider the effectiveness and efficiency of its current FTAs. Identifying areas with low yields and underutilization could provide critical data to modernize or enhance existing FTAs. It also could be an opportunity to consider alternative strategies and frameworks to fully capitalize on commercial opportunities.”