America Is Rekindling Its Relationship With The Caribbean, But Is It Too Little Too Late?

Trade wars with China, diplomatic gaffes and polarised politics– the United States has been making plenty of waves on the world stage since President Trump took office. American-Caribbean relations are only growing stronger however, as the superpower looks to ward off possible threats to the relationship by building links in security, energy investments, public health and disaster resilience.

Private sector investment

Late last month, Congress received the US-Caribbean 2020 Report, which outlines America’s activities and plans for the region. US engagement in the Caribbean occurs through a number of channels but mostly via the US Department of State, the US Agency for International Development (USAID) and the private sector vehicle, the Overseas Private Investment Corporation (OPIC). 

OPIC seeks out opportunities for US investors and has been active in the region for over 30 years. The group’s Caribbean portfolio currently includes more than $250 million in initiatives covering SME development, power generation, agriculture and other sectors. When OPIC Acting President and CEO David Bohigian visited St Lucia in May, he called the island a “critical partner” and spoke of further collaboration in infrastructure, security and energy.

Later this year, OPIC is undergoing a transformation – becoming the US International Development Finance Corporation (DFC) which will expand its activities and nearly double its investment capacity to US$60 billion. The DFC is set to launch in October and is expected to continue OPIC’s projects in the Caribbean by making further inroads into infrastructure, business development and energy.

The latter is a particular area of interest for the US which is already funnelling US$2 million into the Caribbean Energy Security Initiative. These funds will be used to identify projects “where US development finance can spur private sector investment”. In addition, USAID has mobilised US$96.8 million in clean-energy investment through the Caribbean Clean Energy Program while financing the drafting of policies, laws and regulations in seven government agencies spread throughout five countries. When the OPIC delegation visited Castries, energy was on the agenda with discussions on how to meet St Lucia’s green goals and a particular focus on LNG as a possible avenue of interest.

By promoting green energy and reducing the region’s reliance on fossil fuels, the US is hoping for two-fold success – firstly by creating a market for US natural gas exports, as well as clean energy expertise and technology, and secondly by weakening the region’s dependence on Venezuelan oil.

Diplomatic manoeuvring

When superpowers build links with less privileged nations, there are always various factors at play. Shoring up ties with the Caribbean isn’t just about identifying economic opportunities and disbursing aid for the US; it’s about building security and enforcing geopolitical boundaries. In recent years, China has been buying influence in the region with aid, infrastructure investments and collaborative initiatives – putting Washington on edge.

The US-Caribbean relationship was also threatened earlier this year when instability in Venezuela forced Caribbean nations to take a diplomatic stand. While the majority of CARICOM remained neutral and advocated for talks, the five Caribbean leaders who supported the US-backed Venezuelan opposition leader Juan Guaido were invited to meet with President Trump in March. The delegation of leaders from St Lucia, The Bahamas, Jamaica, Haiti and the Dominican Republic held closed door sessions that apparently focused on greater investment in their countries. Returning from the meeting, Prime Minister Chastanet told local media that discussions specific to St Lucia centred on trade, security, making it easier for St Lucians to obtain US visas and establishing pre-clearance facilities in the upgraded Hewanorra airport.

CARICOM, however, was less positive. The meeting drew heavy criticism from elsewhere in the region with Antigua and Barbuda Prime Minister Gaston Browne commenting: “I feel embarrassed for those weak-minded leaders who allowed themselves to be used by carrying out the agenda of others.” St Vincent and the Grenadines Prime Minister Ralph Gonsalves also entered the fray, saying: “We in CARICOM have to be very alive to the mischief that some persons may be up to, to seek to divide us and therefore reduce the extent of our work.”

Creeping Chinese influence and divided loyalties. In this context, it’s not surprising that the US is looking for not just greater economic and diplomatic influence, but also a heightened security presence in the region. Congress has appropriated almost US$617 million for the Caribbean Basin Security Initiative (CBSI) since 2010, and will divulge US$58 million for the programme in 2020. St Lucia is a member of the CBSI which aims to reduce trafficking and enhance crime prevention methods, and has received funding for justice sector reforms, educational opportunities for at-risk youth, and training and equipment for corrections management, though U.S. special assistance to St. Lucia’s police force has been suspended by the State Department since 2013 as a result of alleged ‘gross human rights violations’ by the Royal St. Lucian Police Force.

Aligned interests

The US is the Caribbean’s biggest trading partner, it’s also a huge contributor to its tourism industry and has longstanding cultural ties to the region. In 2016, 14 million US tourists visited the Caribbean and 11,042 Caribbean students went to study in the States. 

In launching its 2020 Caribbean strategy, the US is seeking to tap into the growing Caribbean diaspora to promote its goals – proclaiming June Caribbean-American Heritage Month and using social media platforms to engage with the expat community. While the US enjoys closer relations with those islands directly neighbouring its borders, such as The Bahamas, it is looking to expand further into the Eastern Caribbean and hopes to unlock funding to increase its physical presence in the sub-region with more permanent diplomatic missions and consulates.

According to the US-Caribbean 2020 Report: “The Trump administration has prioritized greater pursuit of robust and regular interaction between Caribbean governments and the US to advance US national interests and shared regional interests.

“We see synergies in ongoing efforts and are launching more new initiatives in the Caribbean. Opportunities abound for deepening relations with Caribbean nations.”