The Looming U.S.-China Rivalry over Latin America
The Looming U.S.-China Rivalry over Latin America
As the U.S. and China seek economic partnerships, Latin America expects to be treated in a "real partnership rather than in a patronizing way", comments COA's Eric Farnsworth.
Though the U.S. and Chinese presidents heralded a “new model” of cooperation at their weekend summit, a growing competition looks more likely. The whirlwind of activity before President Barack Obama met with President Xi Jinping in the California desert revealed that Beijing and Washington’s sights are set on a similar prize — and face differing challenges to attain it.
Their focus is Latin America and the prize is increased trade and investment opportunities in a region where economic reforms have pulled millions out of poverty and into the middle class. Latin America is rich in the commodities and energy that both China and the United States need, largely stable politically and eager to do deals.
Consider the travel itinerary: Obama visited Mexico and Costa Rica last month. Vice President Joe Biden recently went to Colombia, Trinidad and Tobago and Brazil. Chile’s president paid Obama a visit last week, Peru’s leader arrived Tuesday and Brazil’s is due in October….
Washington’s renewed ardor is at least partly because of the fear that China will repeat in Latin America the economic success it has built in Africa. China has been able to present itself as a benevolent partner there, which has played well against the West’s history of meddling in domestic affairs.
“It’s about influence and leverage,” said Eric Farnsworth, vice president of the Council of the Americas, “…The region matured and expects to be treated in real partnership rather than [in the] patronizing way it happened in the past....”
China is also considering joining negotiations for the Trans-Pacific Partnership agreement, which aims to boost trade among the Americas, Asia and Australia. The talks include the United States, Canada and other major economies on the Pacific rim.
Each superpower also brings baggage to the region. Washington still seeks to exert pressure on its partners. It has told Brazil, for example, that it has the responsibility to use its leverage with others, such as Iran. Meanwhile, “Chinese investment,” Farnsworth said, “doesn’t always bring with it good governance practices or anti corruption or environmental concerns....”
