Section 4 Latin America and the Caribbean

1 Overview

(1) Situations in Latin America and the Caribbean

The Latin American and Caribbean (hereafter referred to as “LAC”) region mostly consists of countries that share universal values with Japan such as democracy, the rule of law, and human rights. It has a population of about 640 million. It is a major production area for natural resources such as minerals and energy as well as food and has considerable economic potential including its large market.

In 2020, the LAC region economy greatly slumped due to the contraction of economic activities, decrease in exports and overseas remittances, increase in debt burden, and other factors caused by the global spread of the novel coronavirus disease (COVID-19). On the political front, although instability was seen in some countries, stable order was generally maintained, and democratic elections were held peacefully in many countries. On the other hand, in Venezuela, confrontations are continuing between the administration and the opposition parties. The number of Venezuelans who have fled to neighboring countries as refugees due to the worsening political, economic, and social situation in Venezuela exceeded 5.4 million as of December, and receiving these refugees continues to be a regional challenge.

In addition, in the LAC region, there are communities of Japanese immigrants and descendants (the Nikkei community) numbering over two million, or about 60% of the world's Nikkei population. The Nikkei community has fostered a sense of affinity toward Japan in LAC countries through contributions to the local community for more than 100 years. On the other hand, generations have transitioned over 100 years since the Japanese migration began, and the younger generation with relatively little connection to Japan is growing in number.

(2) Japanese Diplomacy toward Latin America and the Caribbean Countries

Japan's diplomacy toward the LAC region has developed under the guiding principle of the three “Juntos” (together) announced by Prime Minister Abe in 2014. In December 2018, Prime Minister Abe summarized the results under this principle for the entire region, and announced the concept of the Initiative to Enhance Connectivity between Japan and Latin America and the Caribbean as the guideline for further cooperation. Japan is aiming to deepen cooperative relations with the LAC countries toward realizing the concept. In 2020, although international travel was restricted due to the effects of COVID-19, policy dialogues continued to be held at various levels, including through telephone calls, and Japan worked to strengthen bilateral relations and cooperation to resolve various issues in the international arena.

On the economic front, supply chain connections are strengthening, as shown in the doubling of the number of Japanese companies operating in the LAC region since 2011. Japan is working on promoting free trade together with LAC countries including through the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership (TPP11 Agreement), in which Mexico, Peru, and Chile participate.

In the LAC region, countries that have already “graduated” or will “graduate” from the status of recipient countries by achieving economic growth are carrying out South-South cooperation. Japan is promoting triangular cooperation with these countries. In addition to the serious damage caused by COVID-19, there is not an insignificant number of countries in the LAC region with vulnerable healthcare systems. Within the bilateral cooperation framework, Japan has provided grant aid (totaling about 7.9 billion yen) to 18 LAC countries for the provision of health- and medical-related equipment that contributes to COVID-19 countermeasures and the strengthening of healthcare and medical systems. In addition, within the multilateral framework, Japan provided support through the Pan American Health Organization (PAHO) and the Inter-American Development Bank (IDB). In November, Japan provided emergency relief supplies and emergency grant aid to Nicaragua, Honduras, Guatemala, and Colombia, which sustained damage from hurricanes. In January 2021, Foreign Minister Motegi visited five countries in the LAC region for the first time since assuming his position.