The White House unveiled its economic plan for Latin America this week as Joe Biden meets with leaders from the Western Hemisphere in Los Angeles.
“Still reeling from the disproportionate impact of the COVID-19 pandemic, Latin America and the Caribbean has seen the deepest economic contraction of any region in the world,” a White House fact sheet says.
“The Americas Partnership for Economic Prosperity will rebuild our economies from the bottom up and middle out,” it adds. “Together with partners, we deepen our economic cooperation, focusing on the largest drivers of middle-out growth, and shaping new tools for the challenges facing us today and, in the decades, to come.”
Read the full press release below:
At the opening ceremony of the Summit of the Americas, President Biden will announce the Americas Partnership for Economic Prosperity, a historic new agreement to drive our hemisphere’s economy recovery and growth, and deliver for our working people. Accounting for 31.9 % of global GDP, the Western Hemisphere is one of the most dynamic economic regions in the world, and the United States’ ties with the rest of the hemisphere are broad and deep.
Still reeling from the disproportionate impact of the COVID-19 pandemic, Latin America and the Caribbean has seen the deepest economic contraction of any region in the world. Income inequality is widening, millions of people are being cast back into poverty, and global inflation – made worse by Putin’s war in Ukraine – is straining families’ budgets. The Americas Partnership for Economic Prosperity will rebuild our economies from the bottom up and middle out.
Together with partners, we deepen our economic cooperation, focusing on the largest drivers of middle-out growth, and shaping new tools for the challenges facing us today and, in the decades, to come. We will strengthen our supply chains to be more resilient against unexpected shocks. We will foster innovation in both the public and private sectors, so governments can better address society’s most pressing challenges, and businesses can enhance their productivity. And we will tackle the climate crisis by growing climate-related industries that will give rise to high-quality jobs.
As a high-standards approach that is built on shared values, this partnership will support U.S. business and workers and support hemispheric recovery, resilience, and stability across the Americas. Following the conclusion of the Summit of the Americas, the United States will hold initial consultations with partners in the hemisphere and stakeholders on the following areas of focus:
- Reinvigorating Regional Economic Institutions and Mobilizing Investment. To deliver on our aspirations, we will work to pivot our public institutions and financing mechanisms to leverage far greater levels of private investment. We will together reinvigorate the hemisphere’s regional economic institutions, such as the Inter-American Development Bank, including through reforms to drive climate ambition, social inclusion and private sector development with the possibility of future capital for IDB Invest, and ensure international financial and economic institutions adequately prioritize the region. We will also work to support countries that are host to large numbers of migrants or refugees, or who want to make ambitious reforms in line with the Partnership’s goals.
- Making More Resilient Supply Chains. Our economic security rests on supply chains that are diverse, secure, transparent, and sustainable. We recognize the importance of diversifying and rebalancing our supply chains to minimize disruption risks. As we work to create resilient supply chains, we will prioritize development of our workforce and take steps to ensure supply chains are transparent and free of exploitative labor conditions.
- Updating the Basic Bargain. Public investments and innovations in public administration can make life better and fairer for our respective citizens. We will explore how to broaden participation in the formal economy, including tax and anti-corruption measures, as well as cooperation and infrastructure investments in areas such as migration, education, health, unemployment and retirement, childcare, and women’s economic empowerment.
- Creating Clean Energy Jobs and Advancing Decarbonization and Biodiversity. In line with our climate goals and to support good jobs, we will work together to accelerate clean energy technology, more sustainable forest conservation and management, and low emission and resilient agricultural practices. We will work to decarbonize our economies, enhance biodiversity, and build resilience to climate impacts. We will deepen cooperation on technologies and best practices, mechanisms to increase public and private investment, and explore technical assistance to advance quality infrastructure and programming.
- Ensuring Sustainable and Inclusive Trade. The pandemic has only underscored the importance of secure and resilient regional trade flows, as well as the growing role that digital technologies and services play in our economies. We will focus on how to better cooperate on customs facilitation, advance transparency and good regulatory practices, pursue high standards on the digital economy, responsibly support emerging technologies, build resilience in our energy and food supply chains, advance strong labor and environment standards, and incentivize corporate accountability and a race to the top to foster regional economic development.