Recent legislative efforts aim to bolster US economic ties with Latin America and counter China's growing influence in the region. Representative Mark Green (R-TN) introduced two bills designed to incentivize businesses to shift operations from China to Latin America and the US.
The Western Hemisphere Nearshoring Act proposes a program using tariffs collected on Chinese goods to lower interest rates on loans for companies relocating to Latin America. This initiative aims to leverage the International Development Finance Corporation to facilitate the transition and stimulate economic growth within the Western Hemisphere.
The second bill, the Bring American Companies Home Act, offers tax deductions for businesses moving their inventory, equipment, and supplies from China back to the United States. This program would also be funded by a trust fund comprised of tariffs collected on Chinese imports.
Rep. Green emphasized the importance of these initiatives, stating that China's influence in the Western Hemisphere needs to be addressed. He believes that by investing in infrastructure and manufacturing in Latin America, the US can offer a compelling alternative to Chinese investment.

While the US has historically invested in Latin America and the Caribbean, China has become South America’s largest trading partner. China's Belt and Road initiative has significantly expanded its presence in the region through grants, loans, and infrastructure projects, such as the recently unveiled megaport in Peru.
These new legislative proposals reflect a growing focus on reshoring supply chains and strengthening US partnerships within the Americas. This renewed emphasis on the Western Hemisphere echoes the historical Monroe Doctrine, which prioritized US influence in the region.

Former President Trump has also called attention to the importance of the Panama Canal, highlighting China's significant role as the second-largest user and a major investor in Panama. While Trump's claims about China's operational control of the canal have been disputed, his comments underscore the strategic importance of the waterway and the complex interplay of international interests in the region.
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