Latin America and the Caribbean: Key Issues and Actions in the 114th Congress Updated January 4, 2017 Congressional Research Service https://crsreports.congress.gov R43882 Latin America and the Caribbean: Key Issues and Actions in the 114th Congress Summary 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 Congressional Research Service Latin America and the Caribbean: Key Issues and Actions in the 114th Congress 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. Congressional Research Service Latin America and the Caribbean: Key Issues and Actions in the 114th Congress Contents U.S. Policy Toward Latin America and the Caribbean .................................................................... 1 Political and Economic Environment in the Region ................................................................. 1 A Changed Region .............................................................................................................. 1 Latin America’s Increasing Independence .......................................................................... 4 Obama Administration’s Priorities for the Region .................................................................... 8 Economic and Social Opportunity ...................................................................................... 9 Citizen Security ................................................................................................................. 10 Democratic Governance ..................................................................................................... 11 Clean Energy Future .......................................................................................................... 11 Continuity and Change in U.S. Policy .................................................................................... 12 Congress and Policy Toward Latin America and the Caribbean ................................................... 13 Overview of Action in the 114th Congress .............................................................................. 13 Regional Issues........................................................................................................................ 15 U.S. Foreign Aid ............................................................................................................... 15 Migration Issues ................................................................................................................ 16 Trade Policy ...................................................................................................................... 18 Drug Policy ....................................................................................................................... 20 Terrorism Issues ................................................................................................................ 21 Organization of American States ...................................................................................... 23 Climate Change and Clean Energy ................................................................................... 24 Zika Virus .......................................................................................................................... 26 Selected Country and Subregional Issues ............................................................................... 26 Argentina........................................................................................................................... 26 Brazil ................................................................................................................................. 28 Caribbean Security and Energy Issues .............................................................................. 29 Central America ................................................................................................................ 31 Colombia ........................................................................................................................... 32 Cuba .................................................................................................................................. 34 Guatemala ......................................................................................................................... 36 Haiti .................................................................................................................................. 37 Mexico .............................................................................................................................. 39 Nicaragua .......................................................................................................................... 40 Venezuela .......................................................................................................................... 42 Outlook .................................................................................................................................... 43 Figures Figure 1. Map of