A Preview of President Obama's Latin America Trip

Speakers

• Mauro Vieira, Ambassador of Brazil to the United States
• Francisco Altschul, Ambassador of El Salvador to the United States
• Roberto Matus, Deputy Chief of Mission, Embassy of Chile to the United States
• Eric Farnsworth, Vice President, Council of the Americas (Introduction)
• Ray Walser, Senior Policy Analyst, The Heritage Foundation (Moderator)

Summary

Council of the Americas and the Heritage Foundation hosted a public discussion on March 10 previewing President Obama’s upcoming travel to Latin America, where he plans to visit Brazil, Chile, and El Salvador. The speakers examined the significance of President Obama’s trip and possible outcomes. Although the President’s trip has created a sense of optimism and opportunities, challenges remain.

The Significance of the Trip

All speakers agreed that President Obama’s Latin America trip is an acknowledgement of the region’s impressive economic and social development, and its growing importance in the global community. The quick recovery from the 2008 financial crisis crystallized a historic shift from a region once plagued by economic difficulty to one of sound and confident judgment and policies, said COA Vice President Eric Farnsworth. Roberto Matus, deputy chief of mission with Chile’s embassy in Washington, agreed, pointing out that the current tone of the United States “recognizes where the region is today” after 10-15 years of changes.

The three diplomats viewed Obama’s visit as a sign of support for the leadership that has shaped the success of Latin America. Obama’s meeting with Brazilian President Dilma Rousseff only three months into her presidency signifies the United States’ desire to reestablish strong relations with Brazil. Ambassador Altschul of El Salvador suggested that President Obama’s visit to El Salvador is a response to the success of President Funes’ first two years in office, and the country’s adherence to democracy. Obama will also travel to Chile, which became a member of the Organization for Economic Cooperation and Development in 2009, signifying its sound domestic and international economic policies. Under President Sebastián Piñera the country has enjoyed solid economic growth while lowering poverty.

Opportunities for Cooperation

The United States will attempt to build on existing relationships with Latin America, while at the same time create new opportunities in the Western Hemisphere. The three diplomats agreed that trade and investment is of great importance in strengthening relations with the United States. Ambassador Altschul pointed out that the United States and Central American countries have been successful in eliminating major tariffs to trade with the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA). New investment opportunities were discussed as Latin American firms are increasingly investing in the United States.

While trade was once the main issue between the United States and Latin America, according to Ambassador Vieira, the agenda is now “much more diversified.” Ambassador Vieira suggested that opportunities for greater collaboration on renewable energy development will be discussed between President Obama and President Rousseff. Plans on clean energy initiatives are already underway in Chile: Members of the private sector will meet in Santiago during President Obama’s trip to discuss joint opportunities.

Challenges Still Ahead

Serious challenges still remain for the future of U.S.-Latin American relations. Obama will have to address the growing concern of organized crime and narco-trafficking in Central America. The United States must work together with the Salvadoran government to find a meaningful solution to a problem that affects both countries, said Ambassador Altschul.

Acknowledging that bilateral trade is “robust,” Ambassador Vieira pointed to the $11 billion trade deficit Brazil currently has with the United States. Brazil would like to see a more balanced trade relationship and wants to increase its competitiveness in the United States. Also focusing on trade, Ambassador Altschul said the United States and El Salvador should work together to provide greater support for small- and medium-sized businesses, which have lost competitiveness under DR-CAFTA’s elimination of tariffs on major goods. In a region that has greatly diversified its trade relationships, Eric Farnsworth mentioned that the United States cannot take the Latin American market for granted. No longer solely dependent on the U.S. for economic growth, Latin America looks toward any future relationship as a partnership of equals, and this change must be reflected in President Obama’s trip.