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 are Japan's important partners that share fundamental values and principles such as freedom, democracy, the rule of law, and human rights. Today, as the free and open international order based on the rule of law is seriously challenged in the international community, cooperation with these LAC countries is becoming increasingly important. The region has great economic potential with a population of about 660 million and a gross regional product of approximately 6.25 trillion U.S. dollars. It also has abundant mineral resources and energy, which are important for decarbonization, as well as food resources. As such, the region is becoming increasingly important from the perspective of supply chain resilience and economic security of the international community, including Japan.

On the economic front, the economy of the LAC region was severely affected by the COVID-19 pandemic, but subsequently has been on a recovery trend. Although the GDP growth rate in 2023 slowed to 2.3% compared to 4.1% in 2022, the positive growth is continuing. In addition, the inflation rate (excluding in Venezuela and Argentina) is also easing, declining from 7.8% in 2022 to 5% in 2023. On the other hand, because of factors such as COVID-19 and global price increases caused by Russia's aggression against Ukraine, the disparity between rich and poor people, which has been an issue in the LAC region for some time, has not narrowed, and the Gini coefficient, which measures income inequality, has remained high.

On the political front, presidential elections were held in Paraguay, Guatemala, Ecuador, and Argentina. In addition, with regard to Venezuela, the dialogue between the parties resumed in Barbados in October, and it was agreed that the next presidential election would be held in the second half of 2024. However, the number of Venezuelans who have fled to neighboring countries as refugees and migrants due to the deteriorating political, economic, and social situation in the country exceeded 7.7 million as of December 2023, which continues to be a regional challenge. In Haiti, since the assassination of the president in 2021, the security situation throughout the country has deteriorated due to the activities of armed groups (gangs), and the number of internally displaced persons has also increased. In addition, stagnation of government services has worsened the living conditions of the population, which is a regional challenge.

In the LAC region, there are the Nikkei (Japanese immigrants and their descendants) communities numbering approximately 3.1 million, or about 60% of the world's Nikkei population. The Nikkei communities in the region 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 the LAC region as the guideline on the fruits in each bilateral relation. Japan has been aiming to deepen cooperative relations with LAC countries based on this concept in areas such as cooperation to maintain and strengthen the “Free and Open Indo-Pacific (FOIP)” and the free and open international order based on the rule of law, cooperation in the international arena, response to global issues such as climate change, and economic relations.

In 2023, bearing in mind Japan's status as holding the G7 Presidency, non-permanent member of the United Nations Security Council (UNSC) until 2024, and G20 member state, Prime Minister Kishida took the opportunities of the G7, G20, UN General Assembly (UNGA), and other multilateral meetings to meet with the leaders of Brazil and Peru. In addition, Foreign Minister Hayashi met with key figures from various countries, including Prime Ministers and Foreign Ministers. In January, he visited Mexico, Ecuador, Brazil, and Argentina, which are UNSC non-permanent members and G20 member states in the LAC region. From April to May, he visited five countries: Trinidad and Tobago as well as Barbados, bearing in mind strengthening cooperation toward Japan-CARICOM Friendship Year 2024, and Peru, Chile, and Paraguay in South America. Moreover, Foreign Minister Kamikawa exchanged views with Prime Ministers and held foreign ministers' meetings with Brazil, Mexico, and Barbados during the UNGA High-Level Week in September, and with Peru and Chile in November during the APEC Ministerial Meeting. Furthermore, many Ministers, State Ministers, and Parliamentary Vice-Ministers from the Ministry of Foreign Affairs (MOFA) and other relevant ministries and agencies of Japan visited LAC countries, including State Minister for Foreign Affairs TAKEI Shunsuke, who visited Jamaica and Saint Lucia in May, the Dominican Republic in July, and Uruguay and Paraguay in August.

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.