Reimaging Pan American Integration in the 21st Century

As we mark Pan American Day and the 200th anniversary of the Congress of Panama, Pan-American Strategic Advisors CEO Adam Ratzlaff argues that despite challenges, key resources and interest in promoting inter-American integration are becoming increasingly available.

April 14 marked Pan American Day — a celebration of the creation of the first regional organization that would evolve into the Organization of American States in 1890. This Pan American Day comes at crucial juncture. Not only is this year the 200th anniversary of the Congress of Panama — where Simón Bolívar gathered leaders from across the newly independent nations of the Americas to discuss cooperation — but also at a moment of profound challenges and opportunities for inter-American collaboration.

While efforts to promote cooperation and integration between the nations of the Americas has a long history, it is also riddled with challenges and setbacks. While efforts to promote political cooperation remain elusive, there is a growing interest from Washington—and leaders across the region — to revitalize efforts to promote deeper economic integration. Although challenges remain, increasing interest and growing efforts to promote integration provide an opportunity for deeper engagement in the region.

From Bolívar to the Washington Conference

For 200 years, leaders in the Americas have sought to develop mechanisms to deepen economic integration and diplomatic cooperation. It would not be until 1889-1890, that the ideals of regional cooperation through an institution would begin to develop when the United States invited representatives from across Latin America to the first Inter-American Conference in Washington, DC. One of the key topics of discussion — and one pushed by the United States — was developing policies that would promote integration and a customs union. While these initiatives would not materialize, the meetings reinvigorated efforts to build ties across the Americas, an ideal that would be reiterate, yet never fully realized over the 20th century.

Indeed, despite the history of collaboration efforts, inter-regional trade in the Americas remains relatively low. This has often been driven by competing visions of the Americas, relative disinterest from the United States, and persistent gaps in infrastructure investment. Despite this, regional organizations have continued to flourish and push for integration and cooperation. Today, there are over 40 regional organizations and forums specific to the Americas — including trade blocs and informal groups. Just in the trade space, these include the USMCA, CAFTA-DR, MERCOSUR, the Organization of Eastern Caribbean States (OECS), the Pacific Alliance, the Latin American Economic System (SELA), and the Latin American Integration Association (ALADI) among others. This “spaghetti bowl” of arrangements has made integration challenging given divergent perspectives on trade and different rules among different blocs.

An Emergent Consensus

Since the mid-2010s, there a series of concerns have driven U.S. policymakers to embrace nearshoring and regional integration more deeply. Between concerns over China’s growing economic footprint, supply chain shocks caused by the COVID-19 pandemic, and trade disruptions — such as the blockage of the Suez Canal and the recent conflict in the Strait of Hormuz — and access to critical minerals, policymakers in Washington are looking closer to home to secure trade and national security interests.

Given these concerns, a bipartisan consensus on the need to promote nearshoring has emerged with clear policies designed to encourage friendshoring implemented by both Republican and Democratic administrations; the first Trump administration introduced the Americas Crece Initiative, the Biden administration created the Americas Partnership for Economic Prosperity, and even the day after Trump announced tariffs on liberation day, his then Envoy for Latin America, Mauricio Claver-Carone noted that it was a “great day for America and it’s a great day for the Americas,” due to the relatively lower tariff rates experienced by most countries in the region. Furthermore, Congress has sought to expand interest in nearshoring and, in 2024, a bipartisan group of legislators introduced the Americas Trade and Investment Act. While individual initiatives have not survived changes in administration, there objectives remain the same and the push for nearshoring continues.

Regional institutions have also taken note and are leveraging U.S. interest in the region to deepen regional integration by bolstering the private sector. Most notably, the Inter-American Development Bank launched the “BID for the Americas” initiative in 2023 and recently announced that it would be opening an office focused on private sector engagement in Miami. These multilateral and domestic initiatives are designed to create the financial incentives that will drive investment in nearshoring and deepening regional integration efforts.

With the renewed interest in regional integration, there is a unique for companies and governments to develop new strategies with access to financial resources designed to promote these linkages. However, in order to take advantage of these opportunities, governments and companies must carefully navigate the politics of the region and domestic U.S. political considerations. Pushing for longer-term investment in the region is critical to supporting the Pan American dream of a more integrated and collaborative Americas.