The United States is taking its Latin American partners for granted which is opening the door for other countries to step in

By Laura Ebert
April 2, 2012

In March 2011, President Obama pledged a new era of partnership with Latin America during a 5-day trip to the region. The focus did not remain on Latin America for long, as the trip was overshadowed by the U.S. decision to intervene in Libya. More recently, the Obama administration announced a shift in foreign policy focus from the Middle East to the Asia-Pacific region, while largely ignoring Latin America. Moreover, as the presidential election approaches, none of the candidates has yet put forth a comprehensive policy towards Latin America, and the region is rarely discussed on the campaign trail.

Latin America is a vital region to U.S. interests and merits more attention from the Obama administration and the presidential candidates. In additional to its geographic proximity, Latin America is strategically important for many reasons. Most Latin American countries support U.S. policies and have embraced democracy and open economic systems, making the region a natural partner for the United States. The U.S. economy is deeply intertwined with that of Latin America, and the region is exceptionally open to U.S. business. Latin America is also the fastest growing U.S. export market. Between 1998 and 2009, trade to Latin America grew by 82%. Furthermore, over half of the U.S. foreign-born population comes from Latin America, which allows the United States to take advantage of close cultural, personal, and professional connections between the regions.

The United States has always played a dominant role in Latin America, but while our attention is focused elsewhere, other countries are making inroads and gaining influence. China, in particular, has been lending to and trading with the region to an unprecedented degree. In 2010, China lent more to the region than the World Bank, Inter-American Development Bank, and United States Export-Import Bank combined . China also recently supplanted the United States as the top trading partner in several Latin American nations including Brazil, Peru, and Chile. Failure to engage the region economically means the United States is losing market share in this fast growing export market.

Similarly, by failing to make progress on regional problems like the illegal drug trade, corruption, poverty, and violence, the U.S. is losing the region's trust in its policies. Drug trade-related deaths in Mexico rose 11% in 2010 on top of a 70% rise in deaths in 2009. Even while progress appears to have been made in places like Colombia, the problems have only been pushed elsewhere, as surrounding countries such as Peru, Venezuela, and Ecuador experience rising violence attributed to drug cartels. Similarly, while poverty rates have fallen, Latin America remains the world’s most unequal region with significant barriers to social and economic mobility.

The result of these failures is regional polarization and instability, which threaten U.S. national security and contribute to illegal immigration. Increasing violence and corruption threaten rule of law and democratic institutions in already weak and struggling states like Honduras. The drug trade displaces legitimate economic activity and increases transportation and security costs. This discourages investment, which has a negative effect on economic growth. The lack of jobs and security has caused many to flee, often illegally, to the United States. Others have embraced policies touted by U.S. rivals. Countries like Iran have already taken advantage of the diminished support for U.S. policies in places like Venezuela and Nicaragua, garnering support for pursuing Iranian policies instead. Recent reports of covert Iranian activities in Latin America demonstrate the potential security concern.

In response, the President and the presidential hopefuls should develop comprehensive strategies aimed at engaging Latin America and participating in multilateral partnerships to deal with the issues at stake. Particular focus should be placed on further integrating the region's economies and encouraging open, pro-democratic, and sustainable economic development. Sustainable development will go a long way to alleviate the poverty and address the lack of alternatives that currently drive illegal immigration and participation in the drug trade. Multilateral initiatives and trade agreements will strengthen inter-country cooperation and economic integration, bringing the region closer together and counteracting polarizing forces like Venezuela's Hugo Chavez. Other initiatives that can revitalize and refocus the U.S.-Latin American relationship include regional cooperation on security, immigration reform, simplification of the visa process faced by Latin American businessmen in the U.S., and support of non-governmental organizations that promote human rights, education, and democracy.

The U.S. is taking its Latin American partners for granted. If the U.S. continues to place little emphasis on the region, it may soon see its influence erode and its partnerships weaken. Other countries with significantly different values and political goals will take its place. As the President and the presidential candidates formulate and debate their economic strategies, they would be wise not to forget Latin America.