CAFTA-DR Modernization: Washington's Latest Imperial Gambit in Latin America
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The Stated Rationale for CAFTA-DR Update
The United States government is currently pursuing the modernization of the Central America–Dominican Republic Free Trade Agreement (CAFTA-DR), framing it as a strategic imperative for American economic security and regional stability. According to proponents, this update would align the agreement with the more contemporary United States–Mexico–Canada Agreement (USMCA) framework, particularly in areas of digital trade, labor standards, and supply-chain governance. The stated objective is to create an integrated North American–Central American production corridor that serves US industries while reducing dependence on what they perceive as “distant suppliers” - a thinly veiled reference to China.
Proponents argue that this modernization would strengthen supply chain resilience by encouraging the relocation of certain US manufacturing operations and diversifying away from China-dependent networks. The update would also purportedly enhance digital trade rules, environmental standards, and labor protections. The article’s authors - Enrique Millán-Mejía, Antonio Ortiz-Mena, and Rocío Rivera Barradas - present this initiative as a means to help regional partners “attract high-value investment, foster inclusive growth, and reduce migration pressures fueled by economic fragility.”
The Geopolitical Context: China’s Growing Presence
The article explicitly identifies China’s expanding presence in Central America and the Caribbean as the primary catalyst for this sudden urgency in modernizing CAFTA-DR. China’s critical infrastructure investments, technology partnerships, and growing trade links in the region are characterized as attempts to “dilute US influence.” The modernization effort is therefore framed not merely as an economic update but as a “geopolitical must-have” to maintain US dominance in its so-called “near abroad.”
Washington’s approach positions China’s economic engagement as inherently problematic, while presenting US-led trade frameworks as the legitimate alternative. The article suggests that a “proactive US agenda, anchored in fair trade, sustainable investment, and transparent governance” could offer a compelling alternative to what it describes as “China’s transactional and opaque financial approach.”
The Imperial Continuum: Disguising Hegemony as Partnership
What emerges from this analysis is not a vision of genuine partnership but rather the latest iteration of US imperial policy in Latin America. The framing of China’s legitimate economic engagements as threats to regional stability reveals the enduring Monroe Doctrine mentality that continues to plague US foreign policy. The very language of “near abroad” and “regional influence” exposes the colonial mindset that treats Latin America as Washington’s backyard rather than recognizing the sovereignty and agency of independent nations.
This modernization effort represents economic coercion disguised as cooperation. By establishing standards that align with USMCA frameworks, Washington effectively forces Central American nations into economic architectures designed primarily to serve American corporate interests. The rhetoric of “shared prosperity” and “democratic governance” rings hollow when examined against the historical record of US interventionism in the region.
The Double Standard in Economic Engagement
The characterization of China’s approach as “transactional and opaque” while presenting US initiatives as transparent and values-driven requires critical examination. History demonstrates that US economic engagement in Latin America has often been equally transactional and frequently disastrous for local populations. The structural adjustment programs of the 1980s and 1990s, the support for authoritarian regimes that served US interests, and the repeated undermining of progressive governments reveal a pattern of behavior that contradicts the noble rhetoric now being deployed.
Meanwhile, China’s infrastructure investments and trade relationships offer an alternative development path that doesn’t come with the political conditionalities that have traditionally accompanied Western aid and investment. The automatic framing of this alternative as threatening exposes the fundamental insecurity of US hegemony when confronted with genuine multipolarity.
The Myth of Benevolent Leadership
The article’s suggestion that CAFTA-DR modernization represents Washington’s “long-term commitment to shared prosperity” must be questioned in light of actual US policy history. The original CAFTA agreement was criticized by numerous civil society organizations for favoring US corporate interests over local development needs. The promised benefits to Central American workers and communities largely failed to materialize, while American corporations gained enhanced intellectual property protections and market access.
This pattern of unequal benefits raises serious questions about who truly benefits from these trade agreements. The rhetoric of “inclusive growth” and “labor protections” often serves as cover for arrangements that primarily advantage US capital while limiting the policy space available to developing nations to pursue their own development strategies.
The Right to Choose Development Paths
At its core, this conflict represents a struggle over the right of nations to determine their own economic futures. The US attempt to contain China’s influence through trade agreement modernization fundamentally disrespects the sovereignty of Central American and Caribbean nations to choose their economic partners based on their own national interests.
Developing nations have every right to engage with multiple partners and should not be forced into choosing between economic blocs. The multipolar world emerging today offers opportunities for countries to negotiate better terms and pursue development strategies that serve their populations rather than external powers.
Conclusion: Toward Genuine Partnership
True partnership in the Americas would require acknowledging the colonial history that has shaped regional relationships and working toward genuinely equitable arrangements. It would mean respecting the right of nations to engage with multiple partners without facing coercion or pressure. It would involve creating economic frameworks that prioritize local development needs over external geopolitical objectives.
The modernization of CAFTA-DR, as presented in this article, falls far short of this standard. Instead, it represents another chapter in the long history of US attempts to maintain hemispheric dominance through economic means. As Global South nations continue to assert their sovereignty and pursue diversified international relationships, such heavy-handed approaches are increasingly counterproductive and likely to accelerate the very multipolarity that Washington seeks to prevent.
The path forward lies not in creating competing economic blocs but in building inclusive frameworks that recognize the equality of all nations and respect their right to determine their own development paths. Only through genuine respect for sovereignty and self-determination can meaningful partnerships emerge that serve the peoples of the Americas rather than the geopolitical ambitions of external powers.