	Overview1

		Conditions in the Region

The Latin America and Caribbean region has made enormous strides over the past two decades in political development, with all countries but Cuba having regular free and fair elections for head of government. Despite this democratic progress, several nations face considerable challenges, including persistent poverty, violent guerrilla conflicts, autocratic leaders, drug trafficking, and high rates of crime and violence. Despite strong growth economic growth in the region from 2004-2007, the advent of the global financial crisis in 2008 is having a significant negative effect on the economies of Latin America and the Caribbean. U.S. Policy

U.S. interests in Latin America and the Caribbean are diverse, and include economic, political and security concerns. Geographic proximity has ensured strong economic linkages between the United States and the region, with the United States being the major trading partner and largest source of foreign investment for most countries in the region. Free trade agreements with Mexico and Canada, Chile, Central America and the Dominican Republic (CAFTA-DR), and most recently with Peru have augmented U.S. economic linkages with the region. The region is also the largest source of migration, both legal and illegal, with geographic proximity and economic conditions in the region being major factors in the migration. Curbing the flow of illicit drugs from Mexico and South America into the United States has been a key component of U.S. relations with Latin America for almost two decades. Latin American nations, largely Venezuela and Mexico, supply the United States with just over one-third of its imported oil, but there have been concerns about the security of the region as an oil supplier because of Mexico's declining oil reserves and periodic threats by Venezuela's President to cut oil exports to the United States. As noted above, Latin America has made enormous strides in terms of political and economic development over the past 25 years, with considerable U.S. support, but such conditions as persistent poverty and the rise of populism in such countries as Venezuela, Bolivia, and Ecuador continue to pose challenges for U.S. interests and policy in the region.
Over the past two decades, the Latin America and Caribbean region has made enormous strides in terms of political and economic development, with regular free and fair elections the norm in most countries. Although the region overall experienced an economic setback in 2002-2003, it rebounded from 2004-2007, with strong economic growth. In 2008, however, the advent of the global financial crisis and U.S. economic recession began to be felt in Latin America. Growth began to slow as commodity prices and the demand for exports and services from the region declined. Several nations also continued to face considerable challenges that affect U.S. interests and policy in the region. These include entrenched poverty, guerrilla conflicts, autocratic leaders or the so-called rise of radical populism in several nations, drug trafficking, and high rates of crime and violence.
U.S. interests in Latin America and the Caribbean are diverse, and include economic, political and security concerns. Geographic proximity has ensured strong economic linkages between the United States and the region, with the United States being the major trading partner and largest source of foreign investment for most countries in the region. Free trade agreements with Mexico and Canada, Chile, Central America and the Dominican Republic (CAFTA-DR), and most recently with Peru have augmented U.S. economic linkages with the region. The region is also the largest source of migration, both legal and illegal, with geographic proximity and economic conditions in the region being major factors in the migration. Curbing the flow of illicit drugs from Colombia and Mexico into the United States has been a key component of U.S. relations with Latin America for almost two decades. Latin American nations, largely Venezuela and Mexico, supply the United States with just over one-third of its imported oil, but there have been concerns about the security of the region as an oil supplier.
This report provides an overview of U.S. relations with Latin America and the Caribbean and focuses on the role of Congress and congressional concerns during the 110th Congress. It will not be updated.