CIAO DATE: 07/03

U.S. Policy in the Andean Region

Introduction

Even within Latin America's generally gloomy economic and political outlook, the countries of the Andean region—Colombia, Venezuela, Peru, Ecuador and Bolivia—stand out as especially problematic and unsettled. For the United States, this set of countries, with some 120 million citizens, poses enormous policy challenges. Fostering democracy, expanding trade, combating drugs, promoting stability, and advancing social development are just some of the challenges germane to this region which, in the context of globalization, post-September 11, become even more compelling.

As senior administration officials and many members of Congress are consumed by other foreign policy priorities—and as resources get redirected accordingly—the profound problems facing the Andean countries could well spread and fester, if they are left unattended. Whether or not it wishes to be cast in such a role, the United States is highly significant in any scenario in the Andes, one of the few actors with the capacity to affect outcomes. Its central task is to become fully engaged on a variety of fronts in a positive, cooperative way that seeks not only to avoid a full-blown crisis close to home, but to take advantage of opportunities to contribute to stable and prosperous democracies.

One salient example of such positive engagement was the passage of the Andean Trade Preference and Drug Eradication Act in July 2002. Tied to a larger bill that also gave President Bush Trade Promotion Authority, this measure renewed (and even upgraded) legislation that expired in December 2001, and had accorded key trade benefits to Peru, Colombia, Ecuador and Bolivia. (Peru, Colombia and Bolivia have been certified under the renewal, though there are still some unresolved issues regarding Ecuador). The measure has been justified in terms of providing viable economic alternatives to illegal drugs. Andean leaders welcomed U.S. action on the trade issue—access to U.S. markets is of paramount concern—though they worried that it had lapsed and had fallen off the agenda after September 11.

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