WASHINGTON (AP) — President Joe Biden is convening leaders from nations across the Americas in the U.S. capital on Friday to discuss the optimization of supply chains and the resolution of migration issues.
In a preview of the inaugural Americas Partnership for Economic Prosperity Leaders’ Summit, spokesperson John Kirby of the White House National Security Council informed journalists on Thursday that the two-day event would be an extraordinary occasion to reposition more of the global supply chains to the Western Hemisphere.
Kirby indicated that the summit would also address the “common migration challenge” and the establishment of “significant economic opportunities” among the participating countries.
The announcement of Friday’s event occurred last year during the Summit of the Americas in Los Angeles. The focus on trade comes at a time of escalating competition between the United States and China, the world’s two largest economies. Biden has implemented government incentives to enhance U.S. infrastructure and encourage companies to establish new factories. However, due to the disruptions caused by the pandemic in manufacturing and global shipping, there has also been a push to diversify trade and decrease dependence on Chinese manufacturing.
In 2022, the U.S. exported $1.2 trillion worth of goods and services to other countries in the Western Hemisphere, as reported by the U.S. Trade Representative. Conversely, it imported $1.2 trillion in goods and services from those countries. Nevertheless, a significant proportion of this trade was conducted with Canada and Mexico.
By contrast, the U.S. imported $562.9 billion worth of goods and services from China last year.
Treasury Secretary Janet Yellen outlined the goals of the Biden administration in a speech on Thursday at the Inter-American Development Bank. The U.S. aims to diversify supply chains by partnering with “trusted allies and partners,” a strategy that she believes has “enormous potential benefits for promoting growth in Latin America and the Caribbean.”
Yellen, who frequently discusses her strategy of “friendshoring” to enhance supply chain resilience by primarily collaborating with friendly nations rather than geopolitical rivals like China, presented her vision of new U.S. investments in South America at the development bank on Thursday.
The Inter-American Development Bank, which is the largest multilateral lender to Latin America, would offer support for new projects through grants, loans, and new programs. The U.S. holds the largest share of voting rights in the bank, with 30%.
Policymakers in the U.S. have expressed rising concerns about China’s influence at the bank. Despite holding less than 0.1% of voting rights, the Asian superpower has significant economic interests in some of the bank’s 48 member countries.
