Latin America Trade Relations: China, US compete for dominance in trade with region
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China is involved with trade, financing, and infrastructure in Latin America, and seems to be gaining ground on U.S. influence in the region. And though President Donald Trump did not travel to the Summit of the Americas, the US delegation is looking to ensure the region continues to look north for its preferred trade partner. Joel Richards reports.
U.S. President Donald Trump did not travel to the Summit of the Americas, aides say he stayed in Washington to monitor the situation in Syria. Vice President Mike Pence replaced him and led the U.S. delegation to show leadership in Latin America.
JOEL RICHARDS BUENOS AIRES "The Summit of the Americas taking place in Peru comes in the context of tension between China and the United States over trade and tariffs. These two countries, along with the European Union are the most important trade partners for this region."
Ahead of the summit, the U.S. secretary of commerce said the region has closer economic ties to the U.S. than China.
WILBUR ROSS US SECRETARY OF COMMERCE "The U.S. trades twice as much with the countries of the Americas as it does with China. In fact, U.S. exports to our neighbors in this hemisphere are greater than exports to all of Asia combined."
But China's ambassador to Peru told Reuters news agency that the U.S. must not include this region in a trade dispute.
JIA GUIDE CHINA'S AMBASSADOR TO PERU "It would also constitute contempt, not just for China but also for Latin America."
China has rapidly become a key partner for Latin America, with trade and investment in agriculture, energy and transport.
GUSTAVO GIRADO, DIRECTOR CHINESE STUDIES, NATIONAL UNIVERSITY OF LA MATANZA "What is interesting about China, around the world, not only for analysts like me, is how fast it has happened. In the mid-1990s, China wasn't an important trade partner with anyone, now it is in the top three for trade for the 20 or so South and Central American countries, and is also one of the two most important investors in the region."
In January 2015, China pledged $500 billion in trade and $250 billion in direct investment to the region over the next ten years. And while there may be increased export opportunities for Latin America if a trade dispute continues, if China or the United States' economies slow, this region will also be affected. Joel Richards, CGTN, Buenos Aires.