Political and Economic Environment in the Region

U.S. policy toward the Latin American and Caribbean region is conducted in the context of significant economic and political changes in the hemisphere as well as the region's increasing independence from the United States. Latin American and Caribbean countries have diversified their economic and diplomatic ties with countries outside the region. Obama Administration's Priorities for the Region

The Obama Administration set forth a broad framework for U.S. policy toward Latin America and the Caribbean centered on four pillars or priorities:
promoting economic and social opportunity; ensuring citizen security; strengthening effective institutions of democratic governance; and securing a clean energy future. Continuity and Change in U.S. Policy

During the Obama Administration's first six years, there was significant continuity in U.S. policy toward Latin America, with the Administration pursuing some of the same basic policy approaches as the Bush Administration. Nevertheless, the Obama Administration also made several changes, including an overall emphasis on partnership and shared responsibility. In 2015, Congress enacted P.L. Congress and Policy Toward Latin America and the Caribbean

		Overview of Action in the 114th Congress

Congress traditionally has played an active role in policy toward Latin America and the Caribbean in terms of both legislation and oversight. The most significant legislative action on Latin America and the Caribbean in the first session of the 114 th Congress was the enactment of the FY2016 omnibus appropriations measure ( P.L. The law included numerous provisions on foreign aid to the region, including $750 million for ramped up funding for Central America to address economic, security, and governance challenges. 114-92 ), enacted in November 2015, also has provisions regarding increased support for Central America as well as prohibitions against funding for the closure of the U.S. Earlier in the year, Congress approved an extension of the Generalized System of Preferences (GSP) through 2017 in the Trade Preferences Extension Act ( P.L. 114-27 ), enacted in June, which benefits some 15 countries in the region. In other action, the House passed H.Res. In the second session in 2016, Congress took action on several measures related to the region. 114-194 ). Also in September, Congress enacted a legislative vehicle ( P.L. 114-223 , Division B) that provided FY2016 supplemental funding to control the spread of the Zika virus in the Americas. 114-323 , the FY2017 Department of State Authorities Act, in Title VI established a Western Hemisphere Drug Policy Commission to conduct a comprehensive review of U.S. drug control policy in the Western Hemisphere, including an evaluation of counternarcotics assistance programs. The FY2017 National Defense Authorization Act (NDAA), P.L. 114-328 ( S. 2943 ), signed into law by the President on December 23, has several provisions on the region, including those extending a unified counterdrug and counterterrorism campaign in Colombia for two years (Section 1013); continuing a prohibition on use of funds for realigning forces at or the closure of the U.S. Naval Station and Guantanamo Bay, Cuba (Section 1035); requiring the Secretaries of Defense and State to submit a joint report on military units that have been assigned to do policing or other law enforcement duties in El Salvador, Guatemala, and Honduras, and detailing U.S. government assistance for those units (Section 1069); and restricting FY2017 funding for Cuba's participation in certain joint or multilateral exercises or related security conference between the U.S. and Cuban governments (Section 1286). 114-254 ) in December funding most foreign aid programs at the FY2016 level, minus an across-the-board reduction of almost 0.2%, through April 28, 2017. The 115 th Congress will face completing action on FY2017 foreign aid appropriations. Oversight attention in the 114 th Congress focused on such issues as U.S. interests in Latin America and the Caribbean; the Administration's policy shift on Cuba, including issues related to U.S. national security, human rights, U.S. trade, U.S. property claims, security concerns surrounding the resumption of regular air service with Cuba, and U.S. agricultural trade with Cuba; the Administration's aid request for Central America and the migration crisis in that subregion; Venezuela's economic and political crisis; an overview of the situation in Haiti; the activities of Iran in Latin America; energy issues; the status of Colombia's peace talks; threats to press freedom in the Americas; Chinese and Russian engagement in the region; the human rights situation in both Cuba and Venezuela; the Zika epidemic in the hemisphere; U.S. engagement with the Caribbean; and the democratic setback in Nicaragua. Congress did not complete action on these bills, but in December 2016, it enacted a FY2017 continuing resolution ( P.L. The Consolidated Appropriations Act, 2016 ( P.L. 114-113 . Naval Station at Guantanamo Bay, Cuba, the FY2016 NDAA, P.L. In July 2016, the 114 th Congress enacted legislation ( P.L. In September 2016, the House approved H.Res. Policy toward the region under the incoming Trump Administration at this juncture is uncertain. Appendix. Hearings in the 114th Congress
U.S. Interests and Policy
Geographic proximity has ensured strong linkages between the United States and the Latin American and Caribbean region, based on diverse U.S. interests, including economic, political, and security concerns. U.S. policy toward the region under the Obama Administration focused on four priorities: promoting economic and social opportunity; ensuring citizen security; strengthening effective democratic institutions; and securing a clean energy future. There was substantial continuity in U.S. policy toward the region during the first six years of the Obama Administration, which pursued some of the same basic policy approaches as the Bush Administration. However, the Obama Administration made several significant policy changes, including an emphasis on partnership and shared responsibility. Moreover, President Obama unveiled a new policy approach of engagement with Cuba in 2014.
U.S. policy toward the region is conducted in the context of an increasingly independent Latin America, which has diversified its economic and diplomatic ties with countries outside the region. Over the past few years, several Latin American regional organizations have been established that do not include the United States. Nevertheless, the United States remains very much engaged in Latin America bilaterally and multilaterally.
Congressional Action and Oversight
Congress traditionally has played an active role in policy toward Latin America and the Caribbean in terms of both legislation and oversight. In the first session of the 114th Congress in 2015, the most significant legislative action was enactment of the Consolidated Appropriations Act, 2016 (P.L. 114-113). The law had numerous provisions on foreign aid to the region, including $750 million for ramped-up funding to address Central America's economic, security, and governance challenges. The FY2016 National Defense Authorization Act (NDAA; P.L. 114-92) also had provisions regarding increased support for Central America and prohibitions against funding for the closure of the U.S. Naval Station at Guantanamo Bay, Cuba. Also in 2015, Congress approved an extension of the Generalized System of Preferences through 2017 in the Trade Preferences Extension Act (P.L. 114-27) benefitting some 15 countries in the region. Late in 2015, the House passed H.Res. 536, expressing support for freedom of the press in the region.
In the second session, Congress enacted legislation in July 2016 extending targeted sanctions for human rights abuses in Venezuela through 2019 (P.L. 114-194), while in September 2016 the House approved H.Res. 851 on the situation in Venezuela. Also in September, Congress enacted a legislative vehicle (P.L. 114-223) that provided FY2016 supplemental funding to control the spread of the Zika virus in the Americas.
As the 114th Congress neared its end in December 2016, Congress completed action on several measures with provisions related to the region. P.L. 114-291 requires the Secretary of State to submit a multiyear strategy for U.S. engagement with the Caribbean. P.L. 114-323, the Department of State Authorities Act, FY2017, established a commission to review U.S. drug control policy in the hemisphere, including an evaluation of counternarcotics assistance programs. P.L. 114-328, the FY2017 NDAA, extends a unified counterdrug and counterterrorism campaign in Colombia for two years; requires a report on U.S. military units that have been assigned to do policing or other law enforcement duties in El Salvador, Guatemala, and Honduras; continues prohibitions on funding for the closure of the U.S. Naval Station at Guantanamo Bay, Cuba; and restricts funding for Cuba's participation in certain joint or multilateral exercises or related security conferences. Congress did not complete action on FY2017 foreign aid appropriations, but it enacted a continuing resolution, P.L. 114-254, in December that funded most foreign aid programs at the FY2016 level, minus an across-the-board reduction of almost 0.2%, through April 28, 2017. The 115th Congress will face completing action on FY2017 foreign aid appropriations.
This report, which will not be updated, provides an overview of U.S. policy toward Latin America and the Caribbean during the 114th Congress in 2015 and 2016. It begins with an overview of the political and economic environment affecting U.S. relations and then examines the Obama Administration's policy toward the region. The report then examines congressional interests in the region and legislative action, looking at selected regional and country issues. An Appendix provides links to hearings on the region in the 114th Congress.