April 25, 2024

ICYMI: Cassidy: It’s Time to Refocus on Latin America

WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) today penned an op-ed in the Ripon Forum highlighting the need for the U.S. to reprioritize our foreign policy towards Latin America. Cassidy discussed his Americas Act, which would create an ever-expanding and permanent trade partnership of Western Hemisphere countries and counter China’s growing control over global manufacturing and geopolitics.

“Our legislation makes the U.S. competitive again by creating the only viable alternative to a Latin American ensnared by the CCP—a self-sufficient Western Hemisphere that is dedicated to economic prosperity, democracy, and the rule of law,” wrote Dr. Cassidy. 

“The Americas Act’s vision for our hemisphere is in stark contrast to the CCP’s ambitions because it is rooted in the advancement of liberty and the expansion of democracy. People are most free when they decide who leads them. And for democracy to flourish, there must be liberty and prosperity. The Americas Act promotes all three,” concluded Dr. Cassidy. 

Read the full op-ed here or below. 

Cassidy: It’s Time to Refocus on Latin America

The United States has lost its focus when it comes to Latin America. There is economic instability across the region, jobs moving to Asia, and China is making both military and economic inroads in countries that were closely aligned with the U.S. not long ago. 

To reverse this, I and others have a proposal that will strengthen ties across the Western Hemisphere and in so doing, confront the Chinese Communist Party’s (CCP) growing global influence. 

The U.S. is currently stuck in a cycle in which every new administration comes into office declaring they will focus on the hemisphere, typically reversing the previous administration’s policies and then becoming distracted by world events. The result is an incoherent and inconsistent U.S. policy that ultimately neglects our hemisphere. 

The Americans Act, which I introduced with Senator Michael Bennet (D-CO), Congresswoman Maria Salazar (R-FL-27), and Congressman Adriano Espaillat (D-NY-13), creates a manufacturing alternative to cheap Chinese production and promotes economic stability in the Western Hemisphere through strengthening trade and economic ties. It aims to build an ever-expanding and permanent trade partnership of Western Hemisphere countries.

There are four pillars to our proposal that each help support the others. The first pillar is to address endemic corruption. The Americas Act does this through an E-governance system patterned after what other countries have successfully done. The system would ensure that businesses operating in our hemisphere are registered and paying taxes. Informal markets and businesses that rely on bribery to function ultimately inhibit foreign direct investment due to the increased risk. Encouraging companies to enter the formal economy not only reassures multinational investors and businesses but also increases the tax base for a country. This additional tax revenue can then be used to invest in human and physical capital, all of which promotes the next pillar. 

The second pillar builds on this by expanding U.S. loan authority to allow higher-income countries in the hemisphere, like Chile, to benefit from U.S. loans that are typically reserved for developing countries. Currently, the U.S. has nothing to counter with when China approaches Latin American countries with blandishments of loans. With expanded authority, U.S.-financed programs offer an alternative to the debt diplomacy practice by the CCP. The E-governance pillar and increased foreign direct investment lead to the next pillar, which is expanded trade opportunities.

A country’s rise and fall is based upon the robustness of its trade. The Americas Act expands opportunities for countries looking to build stronger trade partnerships within the Western Hemisphere while reducing their reliance on Chinese manufacturing. It incentivizes companies to return to the U.S. and neighboring countries, bringing jobs back with them and creating new ones in the process.  

The last pillar of the Americans Act is the investment in people-to-people partnerships. As there is more foreign direct investment with expanded trade opportunities, there will naturally be an incentive for more cultural exchange, such as the new American University of the Americas, investments in English language programs, and the expansion of non-immigrant visas for elderly and family care. Bringing the populations of our countries closer together is foundational in building lasting partnerships. 

All four of these pillars serve two key purposes: building a stronger, self-sufficient hemisphere and countering China. 

There is a nexus between China’s ability to fund its military and its economic growth through expansion of unfair trade. As China’s economy has grown stronger, jobs have steadily moved to their shores, and it has increasingly capitalized on its trade imbalances with unsuspecting countries to acquire foreign exchange. That foreign exchange, in turn, enables them to strengthen their military. 

Our legislation makes the U.S. competitive again by creating the only viable alternative to a Latin American ensnared by the CCP—a self-sufficient Western Hemisphere that is dedicated to economic prosperity, democracy, and the rule of law. 

We have an opportunity to reset the collision course the U.S. and the CCP are gliding down. We have a group of lawmakers from both parties and from both chambers of Congress dedicated to reprioritizing Latin America and besting China. This is the reason House Select Committee on the CCP Chairman Mike Gallagher (R-WI-08) endorsed the bill. 

The Americas Act’s vision for our hemisphere is in stark contrast to the CCP’s ambitions because it is rooted in the advancement of liberty and the expansion of democracy. People are most free when they decide who leads them. And for democracy to flourish, there must be liberty and prosperity. The Americas Act promotes all three. 

The U.S. has waited too long to start paying attention to our own neighborhood again. Attempts to thwart the CCP’s expansion are only a part of the solution. We need to create an alternative to unchecked Chinese growth. A strong Western Hemisphere part of the solution.

Background

Cassidy and Bennet, along with U.S. Representatives Maria Salazar (R-FL-27), Adriano Espaillat (D-NY-13), and Mike Gallagher (R-WI-08) introduced the Americas Act in March 2024. More than 60 million Americans are of Hispanic descent, helping to make the U.S. the fourth-largest Spanish-speaking country in the world. Together, the hemisphere grows enough food and produces enough critical minerals to sustain every country in the Americas.

Earlier this month, Cassidy delivered remarks at a reception hosted by the American Circular Textiles (ACT) and Borderplex Alliance celebrating the introduction of the Americas Act. Last year, Cassidy and Bennet spoke to the Council of the Americas about the Americas Act. 

The discussion draft released last year received support from Latin American leaders and other stakeholders. Learn more about what people are saying.  

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