America’s Summit: Biden unvails ambitious economic plan for Latin America, Caribbean amidst diplomatic snob
US President Joe Biden has kicked off a regional summit marred by discord over the guest list by announcing a proposed new economic partnership with Latin America and the Caribbean aimed at countering China’s growing influence.
Speaking during the inaugural ceremony of the Summit in Los Angeles on Wednesday, Biden sought to assure the assembled leaders about his administration’s commitment to the region despite nagging concerns that the US, at times, is still trying to dictate to its poorer southern neighbours.
The lineup of visiting heads of state and government in attendance was thinned down to 21 after Biden excluded Cuba, Venezuela, and Nicaragua, prompting Mexican President Andres Manuel Lopez Obrador and several other leaders to stay away in protest.
Speaking at a gala opening ceremony, Biden said countries in the Americas have “to invest in making sure our trade is sustainable and responsible in creating supply chains that are more resilient, more secure and more sustainable”.
The Americas Partnership for Economic Prosperity “will help economies grow from the bottom up and the middle out, not the top-down,” he said. “What’s true in the United States is true in every country. Trickle-down economics does not work.”
Biden is seeking to present Latin American and Caribbean countries with an alternative to China that calls for increased US economic engagement, including more investment and building on existing trade deals.
Data shows that China has widened the gap with the US in trade terms in large parts of Latin America since Biden came into office in January 2021. A Reuters news agency analysis of UN trade data from 2015 to 2021 shows that outside of Mexico, the top US trade partner, China has overtaken Washington in Latin America and increased its advantage last year.
“The best antidote to China’s inroads in the region is to ensure that we are forwarding our own affirmative vision for the region economically,” a senior US official said ahead of the summit.
However, Biden’s partnership, which still appears to be a work in progress, stops short of offering tariff relief and, according to the official, will initially focus on “like-minded partners” that already have US trade accords.
The Summit of the Americas in Los Angeles is the first in the US since the inaugural edition in 1994 and was conceived as a platform to showcase Washington’s leadership in reviving Latin American and Caribbean economies, and tackling record levels of irregular migration at the US-Mexico border.
