Not considered worthy of being listed in United States President James Monroe’s Doctrine of 200 years ago—a document which warned European countries to stay out of the Latin American and Caribbean region as it made up the American “backyard”—China has in recent years moved into the hemisphere and is planning a big expansion.
However, in his attempts to preserve his 19th-century predecessor’s marking off of territory for the American hegemon, President Donald Trump has imposed restrictions, even barriers against Chinese trade to the Caribbean, as well as that going through the Panama Canal.
Clearly not feeling imperilled by the original American claim and not disturbed by the trade barriers being erected, China’s President Xi Jinping announced recently that his country will “join hands” with Latin American countries “in the face of seething undercurrents of pure political and bloc confrontation and the surging tide of unilateralism and protectionism.”
Quite a statement of intention by the Chinese leader, but what is going to be the response of President Trump, more so now that his tariff war on world economic interaction has not had the kind of effect that he intended?
Contrary to his early boast that leaders around the world were calling him and begging for trade mercies against the tariffs, China has confronted his bloc restrictions and established its own counter-tariffs.
While all of the above and more have been going back and forth, both countries have lowered their tariffs and engaged in a 90-day truce while the technocrats negotiate a way forward.
One of the major issues must surely be whether or not President Trump will seek to keep in place the 1823 Monroe Doctrine of the hemisphere being under the control of the US, or yield to the 21st century free trade philosophy of globalisation, which frees the countries of the world to trade across geo-political boundaries.
In stating his own philosophy, President Xi must have earned quite a measure of enthusiasm for plans for the hemisphere. His intention is to allow the current US$500 million trade with the region to expand and to include such items as soya beans, beef, energy products and modern telecommunications networks. He also announced China’s plans to award 3,500 educational scholarships to people of the hemisphere as part of the country’s Belt and Road Initiative.
The Chinese president also announced the removal of visa restrictions from five countries of the hemisphere for travel to China. It’s an approach by China that is in direct contrast to that of this US administration, which has included the region in its swathe of tariffs which can only distort trade and increase the cost of living to citizens and residents.
Living in these times, we around the world are privy to this confrontation between controlled and free trade—the former dominated by the economically and militarily powerful United States, the latter seeking to create a new world of trading in the interest of people and nations around the world.
Caribbean leaders, while not having the kind of clout that those of large Latin American countries have, must see their future in an international system which allows for the unhinging from previous philosophies of domination in trade, politics and human development as citizens of the world.