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Rivals drawn to Latin groove

Once regarded as Washington's backyard, Latin America is playing Sino-US competition to its advantage as the superpowers come courting

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A Brazilian worker on the production line for Mexican drinks maker Del Valle. Strong trading links are building within the region. Photo: AFP
Reuters

Although the Chinese and US presidents heralded a "new model" of co-operation at their weekend summit, a growing competition looks more likely. The whirlwind of activity before Barack Obama hosted Xi Jinping in the California desert revealed that Beijing's and Washington's sights are set on a similar prize - and face differing challenges to attain it.

Their focus is Latin America and the prize is increased trade and investment opportunities in a region where economic reforms have pulled millions out of poverty and into the middle class. Latin America is rich in the commodities and energy that China and the United States need, largely stable politically and eager to do deals.

Consider the travel itinerary: Obama visited Mexico and Costa Rica last month. His Vice-President Joe Biden recently went to Colombia, Trinidad and Tobago and Brazil. Chile's president paid Obama a visit last week, Peru's leader arrived on Tuesday and Brazil's is due in October.

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Meanwhile, just after Biden left Trinidad, Xi arrived, part of a tour that also took him to Costa Rica and Mexico to promote trade and co-operation.

Both US and Chinese officials, however, are finding a more self-confident Latin America, able to leverage its new strength to forge better agreements and find multiple trading partners. That will likely force Washington to work harder to maintain its leading trade position against China - which has money to burn.

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"There is a more energetic tone, a more optimistic mood about the economic agenda in the second term than the first time," said Michael Shifter, president of policy group the Inter-American Dialogue. "There's something happening in the region and the US wants to be part of it. Whether there's a well-thought-out vision or policy remains a question. But there is more of an affirmation of the region and a willingness to engage."

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