Biden Circles Xi as U.S. Duels China for Latin America Ties
Biden Circles Xi as U.S. Duels China for Latin America Ties
“For the first time questions are being raised about whether [Latin America] pushed the U.S. too far away” while China expands its reach in the region, comments AS/COA’s Eric Farnsworth.
The competition between the world’s two biggest economies for influence in Latin America is on display this week as U.S. Vice President Joe Biden arrives in Rio de Janeiro today near the end of a three-nation tour of the region with Chinese President Xi Jinping close behind.
The dueling visits -- Biden departs Brazil May 31, the same day Xi arrives in Trinidad & Tobago to begin his first tour of the region since China’s political transition ended in March -- underscore how Latin America’s natural resources and rising middle class are making it an increasingly attractive trade partner for the world’s top two economies.
Competing with China’s checkbook isn’t easy for the U.S. Seeking South American soy, copper and iron ore, China boosted imports from Latin America 20-fold, to $86 billion in 2011 from $3.9 billion in 2000, according to calculations by the Inter-American Development Bank. By contrast, the U.S. policy of pursuing free-trade accords has been controversial, said Kevin Gallagher, a Boston University economist....
Trade Mission
Earlier this month, Brazil was the focus of a U.S. trade mission for 20 companies including Morgan Stanley, Textron Inc.’s Cessna Aircraft Co. and OSI Systems Inc.’s Rapiscan, which makes airport screening devices. The delegation also visited Colombia and Panama.
“The Chinese still come with a lot of money and that’s tough to say no to,” said Eric Farnsworth, head of the Washington office of the Council of the Americas, a group representing U.S. businesses. “But increasingly these countries have a better understanding of who has what to offer and on what conditions. For the first time questions are being raised about whether the region pushed the U.S. too far away….”
