When Secretary of State Marco Rubio traveled to Latin America for his first trip as Secretary of State in February, he sent a signal about the region’s strategic importance to the United States. He described Latin America as “A prosperous region rife with opportunities,” one with which the U.S. can “strengthen trade ties, create partnerships to control migration, and enhance our hemisphere’s security.” In the last 50 years, there has only been one other first visit by a Secretary of State to Latin America. Secretary Rubio’s emphasis on the region demonstrates that some of the best opportunities exist in our own hemisphere.
Latin America plays a crucial role in the American economy, purchasing over a quarter of all U.S. exports and supporting tens of millions of jobs domestically. The region also accounts for 21.3% of all U.S. foreign trade. Latin America is also rich in natural resources and has the potential to “feed and fuel the world.” Latin America and the Caribbean (LAC) is home to over 25% of global agriculture and fisheries and 60% of lithium, a key component for powering electric vehicles, smartphones, and other technologies.
However, socio-economic instability caused by migration, civil unrest, drug trafficking, and a lack of economic opportunity hinders the region’s growth and generates threats to regional security and United States interests. Without assistance, these challenges can spill over borders and into the United States.
International assistance programs address drivers of instability, stopping conflicts before they happen and promoting economic growth. The International Monetary Fund (IMF) has found that every $1 spent on activities that generate economic growth and political stability can avoid up to $103 in spending on future conflicts. Strategic investments in LAC countries are investments in U.S. national and economic security. If the U.S. does not invest, there is space for rivals like China to gain influence in America’s own backyard.
China’s influence in LAC is growing rapidly, largely due to its Belt and Road Initiative (BRI). Since 2013, China has financed the construction of everything from railways and highways to ports and fiber-optic cables in all regions of the world with the goal of creating a China-centric and connected globe. 22 out of 33 LAC countries have already joined the initiative, signaling widespread regional buy-in, including from crucial U.S. partners. Colombia, the U.S.’s third largest trading partner in the region, joined the BRI in May. Additionally, President Xi Jinping has announced a Development Program aiming to “contribute to a China-LAC community with a shared future,” including a $9 billion credit line to support development in sectors like energy, telecommunications, AI, and traditional infrastructure.
China’s initiatives pose significant risks to American and Western Hemisphere national and economic security. Belt and Road projects may increase the likelihood of debt crises while leaving countries vulnerable to Chinese political pressure and dependency on Chinese technology and financing. These projects extend Chinese influence into America’s backyard, leaving vulnerabilities to U.S. national security. In contrast, the U.S. provides an alternative approach to help mitigate drivers of instability without leaving countries in debt.
With China’s influence in the Western Hemisphere intensifying, USGLC released a Blueprint for How America Wins in the World, containing 10 ideas for ensuring that U.S. assistance protects American interests, strengthens national security, and promotes prosperity. The 7th recommendation includes targeting drivers of instability like migration, violence, and food insecurity through international assistance programs that are adaptable and country focused. Smart investments will create stronger and more stable communities, bolstering U.S. national security.
To successfully counter China, the USGLC Blueprint recommends a return to the first Trump Administration’s “Journey to Self-Reliance” approach, which prioritized economic development and lending assistance. The approach aimed to help countries avoid dependency and protect their sovereignty by engaging with the private sector, civil society, and communities.
Both Chile and Brazil are examples of how U.S. assistance can stabilize economies and spur growth, which mitigates drivers of instability and counters China’s influence in the region.
Chile has gone from receiving as much as $1.4 billion in U.S. economic and humanitarian aid to boasting one of the most advanced economies and stable governments in Latin America. U.S. assistance to Chile is now highly targeted; Chile receives around $3 million primarily for emergency humanitarian responses and military training to create an environment for economic opportunity. Chile’s economic policies, copper-based wealth, and various trade agreements have even led it to become the United States’ 21st largest export market as of 2017. Targeted assistance and commitments to free trade have built a mutually beneficial relationship between the United States and Chile, one that could not be replicated with China.
Similarly, U.S. food, economic, and antinarcotics assistance over time has helped Brazil become the largest economy in South America and a crucial partner to the United States. In 1964, Brazil received nearly $2.2 billion in aid from the U.S. The aid allowed Brazil to focus on addressing hunger, providing economic opportunities, and countering drug trafficking. Brazil now receives less than 2.7% of the aid it once did, and the country is now an aid donor with the U.S. — addressing hunger in Honduras and farming challenges in Sub-Saharan Africa.
As Secretary Rubio aims to implement an America First foreign policy that makes America safer, stronger, and more prosperous, a return to strategic partnerships will not only keep China out of Latin America, but will also help American interests and ideals win in the Western Hemisphere and beyond.