Americas Act seeks to recover US role in Latin America

Significance

US concerns have been growing over China’s increasing presence in Latin America. To date various US initiatives have failed to present an alternative to China’s expanding trade, investment and loans in the region, but the Americas Act contains wide-ranging plans that could deepen economic relations.

Impacts

• US investment in the energy sector would accelerate the energy transition and help Latin America meet climate commitments.
• Opportunities for Latin America to move up value chains and produce value-added products rather than raw materials will be key.
• More formal jobs would boost tax collection and improve social protections for workers.