Chapter 2
Japan's Foreign Policy by Region
Section 4 Latin America and the Caribbean
1 Overview
(1) Situations in Latin America and the Caribbean
Most of the countries in the Latin American and the Caribbean (hereafter referred to as “LAC”) region share fundamental values and principles with Japan such as freedom, democracy, the rule of law, and human rights. The region has great economic potential with a population of about 660 million and a gross regional product of approximately 5.5 trillion US dollars. It also has abundant mineral and energy resources that are important for decarbonization, as well as food resources. As such, the region is becoming increasingly important from the perspective of supply chain resiliency and economic security of the international community, including Japan.
The economy of the LAC region was severely affected by the COVID-19 pandemic in 2020, but subsequently, its GDP growth rate turned positive and the recovery trend was maintained in 2022 as well. On the political front, stable order was generally maintained, and democratic elections were held peacefully in many countries.
On the other hand, COVID-19 as well as global price increases caused by Russia's aggression against Ukraine have further highlighted social problems such as the disparity between rich and poor people. In addition, in Venezuela, although dialogue between Venezuelan parties resumed in November, the number of Venezuelans who had fled to neighboring countries as refugees and migrants due to the worsening political, economic, and social domestic situation exceeded 7.1 million as of September 2022, which continues to be a regional challenge.
Furthermore, in the LAC region, there are the Nikkei (Japanese immigrants and their descendants) communities numbering approximately 2.3 million, or about 60% of the world's Nikkei population. The Nikkei communities have fostered a sense of affinity towards Japan in LAC countries through contributions to the local communities for more than 100 years. On the other hand, generations have transitioned over 100 years since the Japanese migration began, and the challenge is how to deepen ties between Japan and the communities, including among the younger generation.
(2) Japanese Diplomacy towards Latin America and the Caribbean Countries
Japan's diplomacy towards the LAC region has developed under the guiding principle of the three “Juntos!!” (meaning “together,” namely “progress together,” “lead together,” and “inspire 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 has been aiming to deepen cooperative relations with LAC countries based on this concept.
Although international travel was restricted due to the influence of COVID-19 at the beginning of 2022, in-person diplomatic activities were gradually resumed thereafter. Exchanges of views were held on cooperation to maintain and strengthen “Free and Open Indo-Pacific (FOIP)” and a free and open international order based on the rule of law, cooperation in the international arena, measures to address global challenges including COVID-19, the strengthening of economic relations, and others. Prime Minister Kishida took opportunities of multilateral meetings such as the G7, G20, APEC Economic Leaders' Meeting, and the United Nations (UN) General Assembly to meet with counterparts from LAC countries. He also held a Japan-Cuba Summit Meeting in September and a Japan-Uruguay Summit Meeting in October. In addition, Foreign Minister Hayashi held Foreign Ministers' video conferences and telephone meetings with six countries, as well as in-person bilateral meetings with a total of 11 countries. Furthermore, ministers, state ministers, and parliamentary vice-ministers from Japan's Ministry of Foreign Affairs (MOFA) and other relevant ministries and agencies visited LAC countries. In October, State Minister for Foreign Affairs TAKEI Shunsuke attended the session of the UN's Economic Commission for Latin America and the Caribbean (ECLAC) held in Argentina and gave a speech emphasizing cooperation between Japan and LAC countries as partners that grow together. Furthermore, he held meetings with ECLAC Executive Secretary José Manuel Salazar-Xirinachs as well as Foreign Ministers and others from Guatemala, Costa Rica, Panama, Honduras, Haiti, the Bahamas, Argentina, Ecuador, and Paraguay. In January 2023, Foreign Minister Hayashi made his first visit to the LAC region since assuming the position of Foreign Minister. He visited Mexico, Ecuador, Brazil, and Argentina, and held meetings with counterparts from each country.
Japan-Cuba Summit Meeting (September 28, Tokyo; Photo: Cabinet Public Affairs Office)
Japan-Panama Foreign Ministers' Meeting (September 26, Tokyo)
On the economic front, supply chain connections are strengthening, as shown in the nearly 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 Trans-Pacific Partnership (CPTPP), in which Mexico, Peru, and Chile participate.
In the field of development cooperation, for some areas of the LAC region that have achieved economic growth, South-South cooperation is being accelerated by countries that have already “graduated” or will “graduate” from the status of recipient countries on the Development Assistance Committee (DAC) List of ODA Recipients by the Organization for Economic Co-operation and Development (OECD). Japan is promoting triangular cooperation with these countries. Moreover, given that, in addition to the serious damages caused by COVID-19, many countries have vulnerable medical systems, Japan is also cooperating with the region on COVID-19 countermeasures. In 2022, Japan provided 10 million US dollars in cold chain development and other assistance through the United Nations Children's Fund (UNICEF) to Ecuador, El Salvador, Colombia, the Dominican Republic, Belize, Bolivia, and Honduras. Furthermore, Japan is providing assistance to Nikkei communities in the LAC region affected by COVID-19.
・Trade: The U.S. maintains the largest share of trade with the LAC region, but China has been increasing its share in recent years. Exports to China are increasing from Brazil, Chile, Peru, and other countries. Imports from China are increasing in a wide range of countries, including Mexico and Brazil. In 2021, Japan ranked seventh in terms of its share of exports from the region, and fifth in terms of imports.2
・Investment: The U.S. is in the top position with the largest share of investment in many countries, including Mexico and Brazil. Spain also has a strong presence in the region, ranking high in Mexico and Brazil, among other countries. Japan has a small share, centered on Mexico and Brazil. The balance of investment from China is much smaller than trade, accounting for a less than 1% share for the region.
・Finance: In addition to Japan, the U.S., and Europe, the LAC region's debt to China has been increasing since the 2010s and is second only to that of the U.S.. Japan was the seventh largest bilateral creditor country in 2021.
1. See page 193 for notes regarding this data.
2. Although only some countries such as Japan, the U.S. and China are shown in this graph, the rankings in the text are for all countries and regions for which data is available (including countries, etc. in the LAC region).
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