Widening the Aperture: Nearshoring in Our ‘Near Abroad’

In a new report published by the Latin American Program, University of California, San Diego, economist Richard E. Feinberg cautions that the Biden administration’s domestic economic plans could end up harming or helping the Greater Caribbean Basin. “If ‘Building Back Better – Buy American’ becomes a call for U.S. firms to restrict overseas activities in favor of the United States,” Feinberg writes, “the rest of the region will be adversely affected since foreign investment and trade are key drivers of growth.” Conversely, he argues, linking Caribbean Basin countries—the Caribbean islands, Central America, as well as Mexico and Colombia—would “increase U.S. competitiveness and provide benefits to the region that far outweigh any traditional foreign assistance programs.”

Feinberg puts forth a bold vision for a Greater Caribbean Community (GCC) that would internationalize the Biden administration’s agenda for a more sustainable and productive U.S. economy.  Such an innovative approach to the U.S. “near abroad” would involve including the GCC in planned initiatives for infrastructure development, deepening digitalization, education and workforce training, and constructing business parks feeding U.S.-led global supply chains.

Feinberg’s report outlines ways to include the GCC in new employment-generating technology hubs that would “build upon existing free trade zones or erect profitable greenfield endeavors and be imbedded in existing free trade agreements.”  He argues that establishing an integrated regional network of technology hubs “would include building resiliency, redundancy, and rapid supply responses into U.S.-centric supply chains.”