Diminishing U.S. Influence in Latin America

The U.S. has always considered Latin America her backyard of security. However, the U.S. is constantly being challenged by Hugo Chavez, the president of Venezuela, who uses confrontational language and behavior to challenge the core values of the U.S. in the region. Now Bolivia, Ecuador, Argentina and some Central American countries such as Guatemala, under Brazil’s leadership, openly or discreetly stand alongside Chavez, opposing America. The U.S. has always been able to brush off antagonism against herself, considering it difficult for Latin America to actually go against her. However, with the recent surfacing of anti-American sentiment in the Latin American region, the U.S. may finally realize the severity of the problem and start to assess how to suppress this sentiment.

Latin America Begins Marching into the World

Recently, a former high-ranking official of the U.S. government wrote an article about Euro-Asian influence in Latin America and the diminishing influence of America there, warning the White House not to ignore its relationship with Latin America. The warning seems to protect the benefits of those in power in America; in reality, it reflects two issues. The first is the outside influence in Latin America. The second is that Latin America has walked out of the shadow of American influence or control. Latin America is fighting for its own independence and no longer depends on America.

The U.S. has two blind spots in Latin America. First, it has always considered Europe its ally and banks on the fact that Europe will never seek to gain an advantage in the well-known American protected zone. However, even before the Greek debt crisis, many European companies had already made advancements in Latin America in the form of corporate development. This has resulted in Latin America steering toward European influence. Such a situation further motivates the European economic powers to increase their influence.

The tense relationship between Britain and Argentina, stemming from the Falkland Islands issue, is still apparent today. In the eyes of the Argentines, Europe has always been viewed as an invader. But such sentiment is not shared by other Latin American countries, because Latin America has always embraced the attitude of “minding one’s own business.” They would not sacrifice their own interest to maintain balance in the region for another Latin American country that has a strained relationship with Europe.

Secondly, Asia has begun to exert economic influence on Latin America, especially Japan, which already owns large automobile and high-tech production projects like electronic appliance manufacturing. Japanese market share in Latin America is higher than that of the U.S.

Next, Korea is also closely following suit. Hyundai group has established a significant market share in Latin America. Korean automobiles and electronic products are challenging their Japanese counterparts, even engaging them in a price war. Korea foresees that low price is the key element in setting foot in Latin America. Thus Korea has adopted a low-price strategy. Once it gets into the Latin market, it can further boost its market share. Apart from that, China’s entry into the Latin American market is based on trade and investment. Latin American countries see mutual benefits in such interactions. The rise of China in Latin America is also considered a very significant influence.

Euro-Asia Advancement and the U.S. Suffers

Some people consider that the U.S.’ assessment of Latin America is one that is stuck in the ‘70s and ‘80s. This is incorrect. Starting in the late ‘90s, the White House’s evaluation of Latin America changed due to the actions of Chavez. At that time, the U.S. could no longer tolerate his confrontation and planned to cultivate an opposition force to oust him from power, but the effort was unsuccessful. Later, due to the Iraq and Afghan Wars, coupled with the cowboy foreign policy of former President Bush, the U.S. wanted to concentrate on the battlefields and slowed down its siege of Chavez as it believed that, at the time, any move in Latin America would not affect security in its own backyard.

At the beginning of this year, the U.S. launched military collaboration with Columbia in a high-profile manner by sending military forces to be stationed there, showing off its might to Venezuela. Such action makes it clear to the world that the U.S. wants to regain control in Latin America. The reason is the increasingly hostile behavior of Chavez, as well as the crisis in Brazil getting out of control. The U.S. hopes, with both hard-line and conciliatory policies, that the U.S. can suppress Chavez and control Lula, the Brazilian president. In reality, Brazil has reservations about cooperation with Chavez. On one hand, Lula agrees with Chavez in the opposition of aggression; on the other hand, he always maintains a high profile as a member of the BRIC countries. His wavering attitude is a good match for America to go against Chavez; Lula’s confrontational attitude is not as intense as that of Chavez.

The article by the former official reveals the concerns of the [U.S.] business community in losing its interests in Latin America. The article points out that Latin America has become the target market of India, with its enormous growth in manufacturing production. India has the same strategy as Korea: pushing into the Latin American market through low profit and high volume, allowing itself to gain an increased market share. In light of European and Asian expansion and increasing competition in the Latin American market, a U.S. monopoly in the region is being shattered. Coupled with Chavez’s political confrontation, the U.S. realizes that if it continues to ignore security in its backyard, sooner or later a fire will erupt.

U.S. Has to Face Up to Changes in Latin America

On the other hand, however, Latin America cannot advance by merely following the United States. Chavez challenges the U.S. politically, whereas Lula opposes America in economic policy. With the echo of the poorer and smaller countries such as Bolivia, Ecuador and Argentina, it is apparent that Latin America is making a move in the context of a changing world, although it is currently hard for them to create a concerted effort, because individual Latin American countries are more focused on their own benefit. Nonetheless, with the momentum to change being formed, this will one day come true.

The former high-ranking official who wrote this article has warned of the threat of America’s eventual loss of Latin America due to its long-held, unchanged strategy toward Latin America. The Obama administration still feels that the U.S. has a strong influence on Latin America, but increasing control may not be beneficial to the U.S., not to mention the tremendous effort involved. Therefore, such statements only serve as a warning bell. The U.S. seems unlikely to take Latin America’s change seriously unless extreme conditions surface.