    [House Hearing, 118 Congress]
    [From the U.S. Government Publishing Office]

                    GREAT POWER COMPETITION IN THE WESTERN
                                   HEMISPHERE
    =======================================================================

                                    HEARING

                                   BEFORE THE

                          COMMITTEE ON FOREIGN AFFAIRS
                         U.S. HOUSE OF REPRESENTATIVES

                        ONE HUNDRED EIGHTEENTH CONGRESS

                                 SECOND SESSION

                                   __________

                                 June 12, 2024

                                   __________

                               Serial No. 118-120

                                   __________

            Printed for the use of the Committee on Foreign Affairs

    [GRAPHIC NOT AVAILABLE IN TIFF FORMAT]

    Available: http://www.foreignaffairs.house.gov, http://docs.house.gov,
                           or http://www.govinfo.gov

                                   __________

                        U.S. GOVERNMENT PUBLISHING OFFICE
    55-686PDF                    WASHINGTON : 2026
    =======================================================================

                          COMMITTEE ON FOREIGN AFFAIRS

                       MICHAEL T. McCAUL, Texas, Chairman
    CHRISTOPHER H. SMITH, New Jersey     GREGORY MEEKS, New York, Ranking
    JOE WILSON, South Carolina               Member
    SCOTT PERRY, Pennsylvania            BRAD SHERMAN, California
    DARRELL ISSA, California             GERALD E. CONNOLLY, Virginia
    ANN WAGNER, Missouri                 WILLIAM KEATING, Massachusetts
    BRIAN MAST, Florida                  AMI BERA, California
    TIM BURCHETT, Tennessee              JOAQUIN CASTRO, Texas
    MARK E. GREEN, Tennessee             DINA TITUS, Nevada
    ANDY BARR, Kentucky                  TED LIEU, California
    RONNY JACKSON, Texas                 SUSAN WILD, Pennsylvania
    YOUNG KIM, California                DEAN PHILLIPS, Minnesota
    MARIA ELVIRA SALAZAR, Florida        COLIN ALLRED, Texas
    BILL HUIZENGA, Michigan              ANDY KIM, New Jersey
    AUMUA AMATA COLEMAN RADEWAGEN,       SARA JACOBS, California
        American Samoa                   KATHY MANNING, North Carolina
    FRENCH HILL, Arkansas                SHEILA CHERFILUS-McCORMICK,
    WARREN DAVIDSON, Ohio                    Florida
    JIM BAIRD, Indiana                   GREG STANTON, Arizona
    MICHAEL WALTZ, Florida               MADELEINE DEAN, Pennsylvania
    THOMAS KEAN, JR., New Jersey         JARED MOSKOWITZ, Florida
    MICHAEL LAWLER, New York             JONATHAN JACKSON, Illinois
    CORY MILLS, Florida                  SYDNEY KAMLAGER-DOVE, California
    RICH McCORMICK, Georgia              JIM COSTA, California
    NATHANIEL MORAN, Texas               JASON CROW, Colorado
    JOHN JAMES, Michigan                 GABRIEL AMO, Rhode Island
    KEITH SELF, Texas                    KWEISI MFUME, Maryland
    RYAN K. ZINKE, Montana               BRAD SCHNEIDER, Illinois
    JAMES C. MOYLAN, Guam

                    Brendan Shields, Majority Staff Director
                    Sophia Lafargue, Minority Staff Director

                             C  O  N  T  E  N  T  S

                                  ----------

                                REPRESENTATIVES

                                                                       Page
    Opening Statement of Chairman Michael McCaul.....................     1
    Opening Statement of Ranking Member Gregory Meeks................     2

                                   WITNESSES

    Statements of Brian Nichols, Assistant Secretary of State for
      Western Hemisphere Affairs, Department of State................     5
      Prepared Statement.............................................     7
    Todd Robinson, Assistant Secretary of State, Bureau of
      International Narcotics and Law Enforcement Affairs, Department
      of State.......................................................    12
      Prepared Statement.............................................    14
    Michael Camilleri, Acting Assistant Administrator for Latin
      America and The Caribbean, U.S. Agency for International
      Development....................................................    27
      Prepared Statement.............................................    29

                                    APPENDIX

    Hearing Notice...................................................    68
    Hearing Minutes..................................................    70
    Hearing Attendance...............................................    71

                            Materials for the Record

    Statement for the record submitted by Rep. Gerald Connolly.......    72

                            Questions for the Record

    Questions submitted to Brian Nichols and Todd Robinson by Rep.
      Meeks..........................................................    74
    Questions submitted to Michael Camilleri by Rep. Meeks...........   163
    Questions submitted to Brian Nichols by Rep. Castro..............   186
    Questions submitted to Michael Camilleri and Brian Nichols by
      Rep. Castro....................................................   207
    Questions submitted to Todd Robinson by Rep. Cherfilus-McCormick.   211
    Questions submitted to Michael Camilleri by Rep. Cherfilus-
      McCormick......................................................   217
    Questions submitted to Michael Camilleri by Rep. Connolly........   219
    Questions submitted to Brian Nichols by Rep. Connolly............   225
    Questions submitted to Brian Nichols and Todd Robinson by Rep.
      Hill...........................................................   241
    Questions submitted to Brian Nichols by Rep. Kamlager-Dove.......   248
    Questions submitted to Todd Robinson by Rep. Salazar.............   256
    Questions submitted to Brian Nichols by Rep. Salazar.............   257
    Questions submitted to Brian Nichols and Todd Robinson by Rep.
      Sherman........................................................   266
    Questions submitted to Brian Nichols and Todd Robinson by Rep.
      Smith..........................................................   268

               GREAT POWER COMPETITION IN THE WESTERN HEMISPHERE

                                  ----------

                            Wednesday, June 12, 2024

                              House of Representatives,
                                  Committee on Foreign Affairs,
                                                        Washington, DC.
        The committee met, pursuant to notice, at 10:04 a.m., in
    room 2172, Rayburn House Office Building, Hon. Michael McCaul
    (chairman of the committee) presiding.
        Chairman McCaul. The Committee on Foreign Affairs will come
    to order. First order of business is we have a few new members
    of the committee that I would like to announce and
    congratulate. First one, Representative Ryan Zinke. He is not
    here. Oh, well. That is one strike. Delegate James Moylan of
    Guam, congratulations, sir.
        [Applause.]
        Chairman McCaul. A guy that we have known for a while who
    has come back to Congress, Representative Mfume from Maryland.
    Is he here? Okay. That is two strikes.
        The purpose of this hearing is to examine the Biden's
    administration policies toward the Western Hemisphere with a
    special focus on Great Power Competition. I now recognize
    myself for an opening statement.

              OPENING STATEMENT OF CHAIRMAN MICHAEL McCAUL

        As this committee continues to examine the growing malign
    influence of our adversaries around the world and the American
    response to it, it is essential that we assess the nature and
    extent of the risks that we are facing in our own hemisphere.
    Under the Biden administration, China, Russia, and Iran have
    bolstered their presence in the region. They have cornered
    critical mineral markets, expanded their military footprint,
    and deepened their intelligence capabilities, all aided and
    abetted by many authoritarian regimes in the Americas.
        As we speak, four Russian warships, including a nuclear-
    powered submarine and a frigate carrying hypersonic missiles,
    are set to arrive in Cuba; China is bankrolling the
    dictatorship in Nicaragua; and Iran is looking to station Quds
    forces in Venezuela. China is infiltrating countries in Latin
    America and successfully pressuring nations that once
    recognized Taiwan, only to abandon their support.
        CCP has invested billions in infrastructure and critical
    minerals throughout the hemisphere. For example, China
    maintains ports on both sides of the Panama Canal and is
    heavily invested in mining operations in Latin America.
    Additionally, they have many more commercial officers than we
    do at their embassies working deals and have targeted PR
    campaigns that undermine American interests.
        Congress has given the president tools to combat and
    compete with the great powers. It has authorized the DFC
    appropriated bilateral economic assistance and provided funding
    through the CHIPS Act, which I authored and passed into law, to
    secure our supply chains. It has mandated corruption sanctions
    against foreign officials and their family members; and, yet,
    the Biden administration has not effectively used all the tools
    that Congress has provided. The result is a hemisphere more and
    more aligned with our adversaries.
        On illegal immigration, we are seeing the mass waves of
    illegal immigrants at our southern border and the flow of
    deadly drugs, like fentanyl, into our country. I have worked on
    border issues for 25 years both as a Federal prosecutor and as
    a deputy attorney general for the State of Texas and as a
    former chairman of the Homeland Security Committee, but I have
    never seen this border more broken.
        We had addressed this problem with the migrant protection
    protocols, otherwise known as Remain in Mexico. But one of the
    first actions of this administration was to rescind it. One
    stroke of the pen wiped away 4 years of progress.
        In fact, just yesterday, it was reported that eight foreign
    nationals from Tajikistan were arrested in America. They came
    across the southern border and were, quote, vetted and allowed
    to remain in the country. They are believed to have ties to
    ISIS-K.
        Securing our border is a national security priority. That
    is why in January I went down to Mexico to talk to then
    candidate Claudia Sheinbaum about ways to work together on
    fentanyl and immigration. I congratulated her on her election.
    I hope she takes seriously the immigration issue and fentanyl.
        Today is an opportunity, though, to evaluate the
    administration's work and assess the next steps. Our
    adversaries cannot be separated. They are all connected, and
    they are all working together. We can't win the game if we are
    not on the field competing.
        I want to thank our three witnesses for being here today.
    And in the Great Power Competition in our hemisphere, I believe
    that America is falling behind. I want to be more optimistic
    and, hopefully, our witnesses today will give us better news
    than I have prognosticated; but that is the way I see it.
        And with that, I recognize the ranking member.

           OPENING STATEMENT OF RANKING MEMBER GREGORY MEEKS

        Mr. Meeks. Thank you, Mr. Chairman. Let me begin by
    thanking our three witnesses. Assistant Secretaries Nichols and
    Robinson and Acting Assistant Administrator Camilleri for
    joining us today. I know all of the work, especially of
    Assistant Secretary Nichols and Robinson, who I have worked
    with for a long period of time on the Western Hemisphere and
    know of your expertise, your dedication, and your focus, and I
    want to thank you for your service and everything that you do.
        This is the first full committee hearing on the Western
    Hemisphere this year, and your insight today will be invaluable
    as work to address the many challenges we face with our closest
    neighbors. As the Biden administration made clear on its
    National Security Strategy, no region impacts the United States
    more directly than the Western Hemisphere. After all, this
    region includes the United States' top two trading partners,
    Mexico and Canada, as well as ten other U.S. Free Trade
    Agreement partners. And given how interconnected our economies
    and given our shared borders and our cultural ties, what
    impacts one nation impacts all nations throughout Latin America
    and the Caribbean, and shared challenges require collective
    efforts to deliver a better, more prosperous future. The
    required collaboration and dialog in finding common ground
    wherever possible to address issues like irregular migration,
    drug trafficking, violence, and the cascading effects of
    climate change. And I, for one, strongly believe that such
    efforts require strong U.S. leadership, which can only be
    accomplished by ensuring nations in our region see us as a
    reliable partner.
        We risk eroding that trust, however, if we frame our
    interests in the region through the prism of a Great Power
    Competition, as today's hearing title has been framed. We must
    be clear that the United States recognizes investment and
    inclusive development in the region as mutually advantageous
    for us and our partners. Those investments must match our
    values, which is why the administration's approach combines a
    focus on labor and environmental standards, human rights, and
    inclusive growth. That is what sets the United States' approach
    apart from the People's Republic of China's Belt and Road
    Initiative, which seeks to exert greater control through
    predatory lending practices that leave countries indebted to
    Beijing.
        This approach is also what allows us to be seen as a
    partner of choice to both out-compete the PRC and deliver
    better outcomes for our neighbors in this region. Initiatives
    like the Partnership for Global Infrastructure and Investment,
    which is working to mobilize $600 billion for quality and
    sustainable infrastructure development; the $3 billion
    identified by the Development Finance Corporation and the
    Inter-American Development Bank for infrastructure in the
    Western Hemisphere; and the Central American Forward
    Initiative, which has catalyzed 4.2 billion in programming,
    along with friend-shoring efforts, are examples of this
    administration's efforts to increase investments and growth of
    our partnerships and with our partners in the region.
        However, these investments are far from enough to serve as
    an alternative to the investments made by Beijing, and it is up
    to us in the U.S. Congress to do more. And while Democrats
    successfully negotiated to remove the steepest of cuts proposed
    by Republicans to our fiscal 2024 State and foreign operations
    budget, the final negotiated budget still included many cuts
    that hurt our diplomatic and development programs. For F2025,
    Republicans are again seeking to cut SFOPS, this time by 11
    percent. This is not only irresponsible but also entirely
    contradictory to my Republican colleagues' claim objective to
    out-competing China. We are not going to win a so-called Great
    Power Competition on a small power budget.
        Underscoring this point is yet another self-inflicted
    setback. Republicans have continued to hold up already-
    allocated funding, $94 million for the Multinational Security
    Support Mission to Haiti, a country further devolving into
    lawlessness as a result of horrific violence, including
    systemic sexual violence perpetrated by gangs. The MSS is key
    to promoting stability as Haitians work to restore democratic
    governance in their country, and this delay of funds risks
    preventing other nations from investing as they wait to see
    what we do. We must understand that Haiti's crises will be
    ours, too, when it spills over into the region at our border.
        Twice now, Republicans have kowtowed to former President
    Donald Trump and torpedoed immigration reform bills that would
    have made the largest investments in decades to address
    irregular migration at our border. And the America First or
    America Only policy advocated by the former president has and
    will again isolate America and create a vacuum that our
    competitors will rush to fill. What is needed is continued U.S.
    leadership, as President Biden has demonstrated time and again,
    deepening our involvement in existing multilateral institutions
    in our hemisphere and working as partners to governments and
    the hemisphere to address our collective challenges.
        We have already seen and seeing results of that engagement:
    Antigua, Barbuda, and 24 other states of the Organization of
    American States, joined together to condemn Russia's continued
    aggression in Ukraine this past February. Trinidad and Tobago,
    the Bahamas, Jamaica, and the Dominican Republic are among
    several Caribbean countries working to support clean energy
    project development and investment in broader climate goals
    through the administration's U.S.-Caribbean partnership to
    address the climate crisis.
        And, finally, nearly 2 years ago, the Biden administration
    launched the Los Angeles Declaration of Migration and
    Protection with 20 leaders from across the Western Hemisphere
    to support integration, lawful immigration pathways to the
    U.S., and human immigration enforcement. Just last month,
    Colombia announced it would grant temporary protective status
    and employment authorization to 600,000 additional Venezuelans
    inside its country, adding to the 2.3 million Venezuelans
    already in Colombia. And I look forward to hearing more about
    that today.
        So with that, Mr. Chairman, let's work together and let's
    lead in the Western Hemisphere. And I yield back.
        Chairman McCaul. The gentleman yields. I appreciate the
    spirit and passion of my ranking member and good friend, and we
    will work together, as we always do. It is just too important
    not to, and this is probably the last bipartisan committee left
    on the Hill, to be honest with you.
        Other members of the committee are reminded that opening
    statements may be submitted for the record. And we are pleased
    to have a distinguished panel of witnesses before us.
    Ambassador Brian Nichols is Assistant Secretary of State for
    Western Hemisphere Affairs at the Department of State.
    Ambassador Todd Robinson is the Assistant Secretary of State,
    Bureau of International Narcotics and Law Enforcement Affairs,
    at the Department of State. And, finally, Mr. Michael Camilleri
    is the acting Assistant Administrator, Bureau for Latin America
    and the Caribbean at the U.S. Agency for International
    Development.
        Thank you for being here today. Your full statements will
    be made part of the record, and I now recognize Assistant
    Secretary Nichols for his opening statement.

                     STATEMENT OF HON. BRIAN NICHOLS

        Mr. Nichols. Chairman McCaul, Ranking Member Meeks, members
    of the committee, thank you for the opportunity to testify
    today. The Western Hemisphere has become a focal point in Great
    Power Competition again with the PRC and Russia vying for
    influence throughout the region. Addressing this challenge
    requires close coordination with interagency colleagues,
    international organizations, and our allies and partners around
    the world.
        As Secretary Blinken has said, our strategic competition
    with the PRC represents one of the defining challenges of our
    time. We also remain vigilant as Russia seeks to expand its
    influence in the Western Hemisphere through malicious cyber
    activities, disinformation campaigns, and security force
    projection. To manage these global challenges, we are bringing
    together a more integrated, inclusive, and competitive region
    underpinned by a network for partnerships that can shape the
    free, open, secure, and prosperous vision for the world.
        Through revitalizing longstanding partnerships and
    institutions and building new fit-for-purpose coalitions, we
    are working side by side with our partners to address irregular
    migration, insecurity, the climate crisis, and inequality.
    Managing Great Power Competition in the Western Hemisphere
    requires strengthening democratic institutions, reducing
    corruption, helping our partners build economies that attract
    more investment from the U.S. businesses and trusted partners,
    and ensuring governments can be more responsive to the needs
    and aspirations of their citizens.
        Economic engagement with the Americas represents a critical
    pillar of our Great Power Competition strategy. The United
    States is the top trading partner for over two-thirds of the
    hemisphere's countries. We have invested over $1 trillion in
    the region. In 2022, U.S. goods traded within the hemisphere
    totaled to $1.9 trillion.
        To unlock the region's economic potential and ensure
    democracies deliver the prosperity their citizens demand, last
    year, President Biden, together with 11 partners across the
    Americas, launched the Americas Partnership for Economic
    Prosperity. The partnership represents 90 percent of the
    Western Hemisphere's GDP and nearly two-thirds of its people.
    The initiative's goal is to make the Americas the most
    economically competitive region in the world.
        As part of the partnership, the U.S. International
    Development Finance Corporation and the Inter-American
    Development Bank convened a conversation on attracting the
    billions of dollars needed to build out the semiconductor and
    other supply chains.
        I strongly support a capital increase for. The President's
    budget for Fiscal Year 2025, the Administration has requested
    authorization for the United States' full subscription and
    appropriation of $75 million as the first payment. A reinforced
    IDB Invest will deliver on key U.S. objectives for the region
    of bolstering private sector-led growth, building resilient
    supply chains, creating economic opportunity for migrant
    populations, and offering a transparent and accountable
    alternative to PRC bilateral lending in the region.
        As we pursue a strategy of invest, align, and compete with
    the PRC and the Americas, we are also actively working to
    address Russia's destabilizing presence. Moscow seeks to expand
    its influence of the region through malicious cyber activities,
    disinformation campaigns, security force projection, which is
    why the United States sanctioned the Russian Interior
    Ministry's training center in Nicaragua on May 15th. Russia's
    training enabled the Nicaraguan regime's brutal repression
    against its own people.
        Russia will conduct heightened naval and air activity in
    our hemisphere. Russia will temporarily combat naval vessels to
    the region. These ships will conduct port calls in Cuba and
    possibly Venezuela. There may also be some aircraft deployments
    in the region. These actions will culminate in a global Russian
    naval exercise this fall.
        In Cuba, we remain concerned about Kremlin and PRC attempts
    to shape the nature of Cuba's future. Greater U.S. support for
    Cuba's private sector remains vital to counter Russia and the
    PRC's malign influence in Cuba. Promotion of private enterprise
    is just one of U.S. engagements in Cuba. We consistently
    advocate for respect for Cubans' fundamental freedoms and press
    for the release of political prisoners.
        We have supported Haiti's call for safety and security and
    pledged $300 million to support the Multinational Security
    Mission. We have rallied more than 20 nations to pledge some
    $100 million in additional financial contributions, as well as
    personnel.
        The restoration of democracy in Venezuela also remains at
    the center of our efforts. We continue to harness all
    diplomatic tools and leverage sanctions to this end, including
    with Venezuelans and regional and international partners to
    encourage Maduro and his representatives to hold competitive
    and inclusive elections.
        Finally, we are leveraging partnerships to address
    irregular migration. Under the Los Angeles Declaration on
    Migration and Protection, which 22 countries in the region have
    endorsed, we have reaffirmed our shared responsibility to
    respond to migration and displacement across the hemisphere.
    This means reinforcing our own borders, opening new lawful
    pathways, and encouraging our partners in the region to do the
    same.
        Chairman McCaul, Ranking Member Meeks, members of the
    committee, thank you for the opportunity to testify before you
    today. I look forward to your questions.
        [The Statement of Mr. Nichols follows:]
        [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

        Chairman McCaul. Thank you, sir. And I appreciate your
    efforts on supply chain on semiconductor chips into this
    hemisphere and out of--I just recently came back from Taiwan,
    which is very much in the bullseye of the PRC.
        I now recognize Ambassador Robinson for his opening
    statement.

                     STATEMENT OF HON. TODD ROBINSON

        Mr. Robinson. Chairman McCaul, Ranking Member Meeks, and
    distinguished Members of the Committee, thank you for the
    opportunity to discuss State's engagement in the Western
    Hemisphere in this moment of Great Power Competition.
        In this hemisphere, we are faced with interrelated
    challenges, corruption and security, mis-and disinformation,
    weak institutions, and lack of economic opportunities have
    dimmed the perception of democracy and the rule of law to many
    people in the region. Particularly, the PRC and Russia seek to
    capitalize on these factors to increase their competitive
    presence in the hemisphere to compete against the United
    States.
        In response, INL works with partners in the region to
    promote rules-based international policies and standards. The
    threat from malign external actors is constantly evolving and
    requires additional creative and innovative thinking. Non-State
    transnational criminal organizations exploit weak rule of law,
    utilizing global networks and technology to diversify and grow
    their criminal activity.
        Countering the flow of illicit synthetic drugs by TCOs and
    the precursor chemicals used to produce them is an
    administration priority. Combating the production and
    trafficking of fentanyl and other drugs is critical to
    safeguard American lives and deprive TCOs of their profits.
    Synthetic opioids alone took the lives of more than 70,000
    Americans in 2023.
        By depriving TCOs of their ability to operate and expanding
    access to lifesaving treatment and overdose reversal mediation,
    we can reverse this trend. Through training, equipment, and
    technical assistance, along with bilateral and multilateral
    diplomacy, INL is working to counter the flow of illicit drugs
    into the United States by building our partners' capacity to
    disrupt the ability of TCOs to produce, traffic, and profit
    from these deadly substances.
        Enduring security cooperation with Mexico is critical to
    the success of our efforts to combat the fentanyl crisis and
    criminal networks that profit. And throughout Central America,
    INL supports specialized units and efforts to strengthen
    interdiction capacity, including by fostering interagency
    coordination through technical assistance, training, and
    mentoring, and providing critical equipment.
        Through the global coalition to address synthetic drug
    threats, the United States leads the global response to the
    public health and security threats posted by synthetic drugs
    with 29 of the 156 participating countries from the Western
    Hemisphere alone. While we direct our focus toward fentanyl, we
    do not ignore other counter-narcotics challenges driving
    increased violence and instability in the hemisphere,
    primarily, those related to cocaine and other plant-based
    narcotics. Our approach has evolved to address the full
    spectrum of forces that enable cocaine production and
    trafficking.
        Transnational organized crime remains a top concern for
    partner governments in the hemisphere and poses national
    security threats to the United States. TCOs are utilizing
    global networks and technology to diversify and expand
    activities, and there is demand for their services, especially
    from our global competitors.
        INL works tirelessly to bolster the rule of law and
    judicial capacities of our partners throughout the Western
    Hemisphere, as they often serve as the critical defenders of
    democracy and against malign actors. We combat endemic
    corruption and impunity by strengthening institutions and the
    capacity of partner nations to better identify, dismantle, and
    prosecute the main drivers of corruption. Corruption provides a
    foothold for the influence of malign actors and our adversaries
    weaponize corruption to drive a wedge between us and our
    partners. Corruption in the Western Hemisphere is a roadblock
    to the equitable society and economic development and a key
    national security threat.
        Throughout sector programming with judges, police, and
    prosecutors, through this, INL supports Western Hemisphere
    partners to protect and serve communities through the delivery
    of impartial and equitable administration of law. INL also
    focuses on reform of judicial institutions and supports
    regional partners to implement obligations under international
    standards, benchmarks, and treaties. Finally, INL promotes
    anti-corruption priorities in the Western Hemisphere through
    multilateral engagement.
        Transnational criminal organizations and corruption in the
    Western Hemisphere are deeply rooted challenges that embolden
    and empower our global competitors. To out-compete these actors
    and counter their detrimental impact on citizen security,
    economic prosperity, and democracy in our region, we must
    continue to support our partners where possible and pursue
    innovative solutions. While these issues pose a serious threat
    to regional stability and our own national security, INL is and
    will continue to be committed to advancing a just and secure
    future in our hemisphere.
        Thank you for your attention on this important issue, and I
    am happy to answer any questions you may have.
        [The Statement of Mr. Robinson follows:]
        [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

        Chairman McCaul. Thank you, Ambassador. I now recognize Mr.
    Camilleri for his opening statement.

                   STATEMENT OF HON. MICHAEL CAMILLERI

        Mr. Camilleri. Chairman McCaul, Ranking Member Meeks,
    members of the committee, thank you for inviting me to discuss
    USAID's approach in Latin America and the Caribbean, which
    reflects the region's pressing needs and the reality that the
    choices we make there make a direct impact here at home.
        USAID is responding to the region's emergencies, political
    challenges, and opportunities, and historic levels of migration
    in a way that enhances hemispheric stability and builds local
    capacity to address challenges. That not only helps advance our
    foreign policy priorities but provides a clear contrast to the
    approach of the PRC. Our stance, as a rules-based partner, not
    a transactional lender, gives us a competitive advantage and
    our partners the ability to make choices free from coercion.
        While net approval for PRC leadership has declined by more
    than 25 percentage points over the last two decades, the U.S.
    continues to be the preferred partner to address national and
    hemispheric challenges. That includes showing up in moments of
    need, including responding to recent floods in Brazil and fires
    in Chile and Colombia. Last year, USAID provided more than $527
    million in emergency response to the region, including food
    assistance and support for subsistence farmers in Central
    America affected by El Nino, and food, water sanitation,
    hygiene, and health assistance for people affected by the
    political and economic crises in Venezuela and Haiti. So far
    this year, USAID has provided $105 million for the humanitarian
    response in Haiti, helping our partners provide life-saving
    assistance to more than 1.5 million people.
        While we work to address the immediate and urgent in Haiti,
    USAID also continues to invest in the long term by operating
    the majority of our programs. We are improving food security
    and have helped 105,000 farmers increase product yields. We are
    meeting health needs by operating 92 percent of our 170 USAID-
    supported clinics, despite gang violence. And we are addressing
    citizen security with community-based programming. But one of
    the strongest signals of long-term support the United States
    could send would be renewing HOPE-HELP trade preferences for
    Haiti's textile industry, a backbone of its economy.
        Lasting progress requires development, security, and
    political stability. To that end, USAID has joined interagency
    efforts to build support for the MSS and is prepared to provide
    technical assistance to the Transitional Presidential Council
    in Haiti.
        Our work in Haiti reflects our drive to advance democratic
    values across the Americas. The region is home to autocratic
    outliers, like Cuba, Nicaragua, and Venezuela where USAID works
    to support people who demand democratic change and human
    rights. In countries where we see dangerous erosion by leaders
    consolidating power, we support civil society, independent
    media, and transparency. And we show the region that
    democracies deliver by capitalizing on bright spots and surging
    our efforts when citizens take a chance on reformers. That is
    what we are doing in the Dominican Republic, in Ecuador, and
    now in Guatemala, where USAID is helping President Are valo's
    team ensure that citizens who bet on democracy feel its
    dividends.
        We have seen how non-democratic rule in one country can
    impact the entire hemisphere. 7.7 million people have fled
    Venezuela in search of freedom and opportunity. Nearly 85
    percent of them have relocated within the region. So we have
    supported the generous regularization and integration policies
    of our partner countries, helping Colombia provide legal
    residency to two million migrants, supporting degree validation
    in Peru, and backing integration efforts in Brazil and Ecuador.
    These integration efforts deter onward migration while helping
    grow the host country's labor force, tax base, and economy.
        We have also worked with the governments of El Salvador,
    Guatemala, and Honduras to decrease irregular migration by
    nearly tripling access to H-2 visas. This helps American
    companies fill critical labor gaps and gives workers access to
    lawful, ethical employment opportunities that reduce the demand
    for irregular migration.
        But treating the symptoms alone is not enough. Under the
    Biden administration's root causes strategy, USAID's
    programming is boosting sales and employment for small
    businesses, increasing farmer productivity and food security,
    improving education and vocational training, and supporting
    anti-corruption reformers. While we cannot claim direct
    causality, 2023 data shows a sustained double-digit decline in
    intentions to migrate from Guatemala and Honduras since the
    strategy launched in 2021.
        USAID's work reflects our commitment to get the greatest
    possible return on our investments. Whether that means
    leveraging our programs to encourage effective policies,
    bringing in private sector and other partners who can take our
    dollars further, or using our programming to build the capacity
    of local partners so that they can sustain progress beyond our
    programs.
        At this pivotal moment for our hemisphere, the
    administration's commitment to investing in people and
    partnerships across Latin America and the Caribbean positions
    USAID to improve lives and fortify democratic institutions,
    strengthening our standing in the region and our national
    security.
        Thank you. And I look forward to your questions.
        [The Statement of Mr. Camilleri follows:]
        [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

        Chairman McCaul. Thank you, sir. I now recognize myself for
    5 minutes of questioning. I have a map that I want to hopefully
    put up if our technology works here. And it is not good news. I
    mean, since this administration took power, we have lost our
    adversaries. Brazil, October 2022; Colombia, May 2022; Chile,
    December 2021; Honduras, November 2021. And if you look at the
    map, there aren't many friends down there. You have got
    Ecuador, Paraguay, Uruguay, and now with the recent election in
    Argentina.
        We need moral clarity and authority in our hemisphere. When
    you lose that, you lose to your foreign adversaries, like China
    particularly. Illegal immigration gets worse, not better.
    Fentanyl is coming into this country. It's worse, not better.
    China's malign influence gets worse, not better. Cartels and
    their operations have gotten worse, not better. And it is all
    tied together. Our adversaries are all working against us. We
    don't choose them, they choose us. And we have this debate on
    Ukraine, but now we have it in our own backyard, in our
    hemisphere.
        More countries recognize China than Taiwan in our
    hemisphere, and the Belt and Road projects keep coming and
    expanding. I think we need a new doctrine for our hemisphere,
    one that protects our interests, combats our enemies, and
    promotes shared prosperity between us and our allies. And I am
    not saying this to score political points. I just want to know
    what is the plan. That is reality. What is our plan to address
    these threats in our own backyard.
        Mr. Secretary Nichols.
        Mr. Nichols. Thank you, Mr. Chairman. We work with
    countries across the political spectrum as long as they respect
    democracy, the right of voters to choose their own governments.
    The characterization that you make on some of the governments I
    would disagree with respectfully. In Chile, President Boric has
    repeatedly condemned human rights violations and the lack of
    democracy in Venezuela and continues to speak out boldly
    against the repression in Nicaragua.
        Peru and President Boluarte and her government have been
    very supportive of our efforts to bring greater democracy to
    Venezuela to address the challenges in Nicaragua. They have
    raised deep concerns about the presence of Chinese investments
    in infrastructure, and I think we will probably talk about that
    today.
        Chairman McCaul. Panama Canal is a good example. I mean,
    you know, Roosevelt created it, and then Jimmy Carter gave it
    back, and now you have two Chinese ports on both sides of the
    Panama Canal.
        Mr. Nichols. Panama is a strong U.S. ally.
        Chairman McCaul. And they are, and that is good. Right.
        Mr. Nichols. We look forward to an excellent relationship
    with incoming President Jos? Raul Mulino, and we think he will
    be an excellent partner. And he is already stressed in his
    conversations with our embassy his commitment to working with
    us.
        Chairman McCaul. Mr. Meeks and I will be having a
    delegation to Latin America, and I look forward to working with
    you before we do that.
        Ambassador Robinson, two points. I was in Mexico with the
    secretary of the Navy. We passed this year, there is new
    screening that can detect fentanyl and precursors technology.
    And I talked to the secretary of the Navy down in Mexico. They
    are very interested in getting this technology deployed,
    especially to the two ports on the Pacific Side where all the
    precursors are coming in from China. Can you give me an update
    on that?
        Mr. Robinson. Thank you for that question. We are working
    regularly with our Mexican counterparts, particularly the Navy,
    at the Port of Manzanillo and I can't remember the name of the
    other port. We regularly have contact with them. We regularly
    review the type of equipment and training they need, including
    canines, which have been----
        Chairman McCaul. And that is great. I brought up canines
    with them. They said they would need, like, thousands of
    canines to do this. The technology is now available, and I
    think we need to get it to them, right?
        Mr. Robinson. Well, absolutely. What I would say, though,
    is, you know, unlike some of our competitors, we can't direct
    American companies to go to point X or point Y. They are going
    to go where they can make money. We can certainly expose them
    to our partners in Mexico and allow them to have conversations
    with the----
        Chairman McCaul. Well, I talked to the secretary of the
    Navy in Mexico, and they are very interested. I think, if this
    is a matter of cost, they certainly would, I think, would want
    to buy it. But I think we could also assist them----
        Mr. Robinson. Absolutely.
        Chairman McCaul [continuing]. In that effort. And I would
    appreciate if you could update me on this because our
    appropriations process is going forward. I think that would be
    a really wise investment----
        Mr. Robinson. Absolutely.
        Chairman McCaul [continuing]. If we are going to protect
    our children from the scourge of fentanyl.
        Last, Ambassador Robinson, you know, I talked to AMLO, the
    president of Mexico, and, you know, there is a choke point, and
    it is between, you know, Guatemala and Mexico. There is also
    the Darien Gap. It would make a lot of sense to me, and I have
    been doing this for a long time, this border stuff--I think
    Remain in Mexico is working, but your administration did away
    with that. But, you know, I think there is interest on Mexico's
    part. I think Panama has an interest in the Darien Gap to close
    this chokepoint off where you are not talking about 2,000 miles
    of border, you are talking about a very finite number of miles
    that we could secure to stop this illegal immigration that is
    happening, and then that sends a message of deterrence that the
    cartels understand.
        I mean, do you have any thoughts on those two ideas?
        Mr. Robinson. Absolutely. And I completely agree with you.
    In fact, we are working very closely on both sides of the
    Darien with Colombia and Panama, both getting them to work
    together and allowing us to assist them in monitoring the area,
    getting their forces to the area. Our INL airframes are
    assisting in getting their officers to the area. We would
    welcome Mexican support in this effort.
        I think you are absolutely right that making sure that we
    are working with all of our partners in the region closely, and
    we are, can go a long way toward addressing this issue.
        Chairman McCaul. I will look forward to working with you,
    and I am going to talk to our appropriators because we talk a
    lot about border security around here but, you know, when you
    have got two obvious, you know, sort of chokepoints, from a
    geographical standpoint, to me, it is just common sense.
        Mr. Robinson. I would add Guatemala, as well.
        Chairman McCaul. And Guatemala.
        Mr. Robinson. In that group.
        Chairman McCaul. Guatemala and Mexico and the Darien Gap. I
    think those two combined would make a whole lot of sense, and I
    think that would be bipartisan, you know. But I am not going to
    speak for Mr. Meeks. I will yield to him and recognize him.
        Mr. Meeks. I do think that could be bipartisan. But let me
    just say this: I just believe that we can't address our
    challenges if we just retreat behind our borders and, you know,
    we want to talk about out-competing China. We can't out-compete
    China or Russia or curb their influence throughout the
    hemisphere if we drastically cut U.S. diplomatic and
    development budgets. You know, there is a way why diplomacy is
    important and what we need to do with our investments, and that
    would also help with immigration, you know, illegal immigration
    coming across because people are leaving certain places looking
    for a better life because of what is taking place there. And
    the United States has to play a role in that, and we can't
    build the trust that we need to build and sustain partnerships
    with our partners and regions if the engagement is seen solely
    as guided by interests and competition with the PRC because it
    says that we don't really care about them, we are just caring
    about stopping the PRC.
        And I have been engaged in the Western Hemisphere for most
    of my congressional career. And when I look at what is taking
    place down there, particularly when you look at places like
    Colombia and Brazil and Peru, when I look at some of the things
    that are taking place there in Central America, the Caribbean,
    there is issues of whether or not, because what I do see with
    those governments, with the exception recently of Venezuela
    primarily but in many of these other countries are
    democratically elected presidents that the people's voices are
    crying out for help in certain areas and are looking toward the
    United States to see where we are.
        And I know that the president has certain policy priorities
    that he is putting forward so that we can try to address some
    of those issues in various parts. My first question would be
    then give us the strategic importance and what are the Biden
    administration's type policy priorities in Latin America and
    the Caribbean that addresses some of the concerns that I have
    just articulated and some of the concerns that we see in some
    of the countries that are our neighbors and our partners in
    Central America and South America and in the Caribbean.
        Mr. Nichols. Maybe I will kick it off, Ranking Member
    Meeks. And thank you for your decades of leadership on these
    issues.
        We are working as hard as we can to promote a more security
    democratic and prosperous region. That means delivering support
    for our allies when they need it. I will give you the example
    of Ecuador where President Noboa has faced tremendous economic,
    transnational crime, and security challenges. We have brought
    to bear a full array of solutions there. My learned colleagues
    have traveled to Ecuador to support them on security and
    development issues. We are working through international
    financial institutions to provide relief to the crushing debt
    load that that country faces, and we seek to help them become
    more capable in dealing with the challenges that they face.
        We need to see greater investment from U.S. and like-minded
    nation private-sector players in the region, even though we are
    the leading trading partner for two-thirds of the countries in
    our region. IDB Invest can be an important leverage in that
    effort.
        I would also note doing things to help countries join the
    supply chain for electric vehicles and using critical minerals,
    which are abundant in our region, and making sure that U.S.
    companies have access to those, and work with partners so that
    everyone benefits along the supply chain. EXIM is a crucial
    partner for us in that regard. I think I mentioned already DFC.
    Those are all key tools that we have.

        And we need to be present. We need our diplomats on the
    field, we need Ambassadors in every embassy, we need commercial
    officers, we need foreign agricultural service officers out
    there competing every single day because our competitors have
    their people on the field working----
        Mr. Meeks. Let me ask this real quick because there is two
    areas I want to deal, you know, I help, and I want to know how
    has the Bureau of Western Hemisphere empowered the Office of
    the Special Representative for--you know, one of the things
    that I have worked hard to get down was the racial equity and
    justice to advance the U.S.-Brazilian Joint Action Plan to
    Eliminate Racial and Ethnic Discrimination, as well as we
    worked together to promote the U.S.-Colombian Action Plan for
    Racial and Ethnic Equality, CAPREE, and to address closing
    civic space for marginalized communities because, in a lot of
    these countries, these communities are marginalized, also
    across the hemisphere including Nicaragua and Venezuela and
    Honduras and Peru.
        So tell me how is the Bureau is doing to advance that and
    working that, and can you do it without any money?
        Mr. Nichols. Well, it is a tremendous priority for me.
    Working with Desiree Cormier Smith in SREG has been incredibly
    important. We have traveled together to Brazil to hold meetings
    on our Joint Action Plan to Eliminate Racial Discrimination
    there. We have a comprehensive interagency approach on those
    issues in Brazil, and we look forward to receiving our
    Brazilian counterparts later this year to build on the
    conversations that we had both in Brazil and here in Washington
    earlier this spring.
        Mr. Meeks. Last thing. I know we got votes coming up, but
    Mr. McCaul and I are working closely together. I know he is
    going to have another meeting later this week because I am very
    concerned about what is taking place in Haiti and what that
    deal is and the money that is there. We are working very
    closely together. He has agreed that we are going to--but tell
    us where are we, you know, with reference to this new piece
    that we can get this thing done, and how important is getting
    that money that is needed for the security?
        Mr. Nichols. It is vital, sir. We are making progress. On
    the political side in Haiti, we now have a new prime minister
    in Haiti. A new cabinet has just been gazetted. It is a group
    of technocratic experts. The Kenyan delegation has visited.
    They are ready to go. They need us to make sure that we have
    the things that they need in place.
        The funding that we seek will allow us to provide crucial
    things like vehicles, fuel, ammunition, radios, other
    communication devices. This will be an important partnership
    with not just Kenya but a number of countries, Jamaica,
    Bahamas, others from around the region that will support this
    effort.
        The Haitian National Police needs our help to be able to
    deal with the gang challenges. Every day, Haitians and others
    are at tremendous risk. We saw the tragic murders of two
    American missionaries last month, and we can't let more people
    die while we wait to deploy.
        Chairman McCaul. And thank you for that. I had a briefing
    on Thursday. I just want to have assurances that the money and
    weapons will not end up in the wrong hands. We have a history
    of doing that as a Nation, and it is a legitimate concern. But
    I don't want a failed State in the region either that can be
    exploited by our adversaries.
        So with that, I recognize Ms. Wagner.
        Mrs. Wagner. Thank you, Mr. Chairman. I am going to try to
    get this in before we run to votes. And thank you to all of our
    witnesses for their service and their time.
        This administration's waffling has created chaos and
    instability on a massive scale, from Europe to the Middle East
    and beyond. We have got Russia, China, and Iran are taking
    advantage of our weakness and our lack of resolve. Every day,
    they are bringing the fight closer to our shores and whether
    through the utter collapse of security on the southern border
    or the out-of-control flow, as Mr. Meeks has brought up, of
    fentanyl into American communities. We must restore American
    leadership abroad to deter China and Russian aggression, but we
    cannot neglect the vigilant defense of our interests in our own
    backyards.
        Assistant Secretary Nichols, this year, so far, 27,000
    Chinese nationals have been apprehended at our southern border.
    A total of 89 of them have been removed from the U.S. in 2024.
    Last year, 24,000 Chinese migrants illegally entered the U.S.
    and only 285 were sent back.
        Why are the deportation numbers so low, and what is your
    assessment of the national security risk posed by these growing
    and growing numbers of unvetted Chinese nationals illegally
    entering our country?
        Mr. Nichols. The Biden administration is committed to
    secure borders.
        Mrs. Wagner. No, they are not. Ten million illegal migrants
    have come across, so don't say that to me. But go ahead.
        Mr. Nichols. This administration proposed comprehensive
    migration reform that was not passed. The president has put
    forward new regulations that will expedite the removal of those
    persons found not to have the ability to----
        Mrs. Wagner. Tell me about the Chinese nationals. Fifty
    thousand in the last 2 years.
        Mr. Nichols. We have worked with partners throughout the
    hemisphere as part of the Los Angeles Declaration on Migration
    and Protection to impose new visa restrictions on a number of
    nationalities throughout the world who are entering the
    Americas. We have worked with partners to facilitate the
    repatriation of those persons who do not have----
        Mrs. Wagner. Why are Chinese nationals coming here?
        Mr. Nichols. Maybe because China doesn't have much hope or
    prosperity for them. Maybe they are trying to leave----
        Mrs. Wagner. Well, that is not, it doesn't come under the
    definition of asylum, all right. Let me go move on. It is very
    disturbing, and do not at all tell me or this committee that
    this administration, this president has not let in over seven
    to eight million illegal migrants since he took office and
    millions more in got-aways.
        Over 100,000 Americans died of drug overdoses in 2023,
    mostly due to fentanyl. And so far this fiscal year, over 9,600
    pounds of fentanyl have been seized at the southern border,
    enough to kill around two billion people. In April, the
    Bipartisan Select Committee on CCP released a comprehensive and
    damning report finding that China directly subsidizes and
    incentivizes the manufacturing and trafficking of fentanyl
    materials and other synthetic narcotics.
        Assistant Secretary Robinson, what is your assessment of
    China's role in the fentanyl crisis?
        Mr. Robinson. Thank you, ma'am, for that question. First,
    let me say that, since we have reinvigorated the Counter
    Narcotics Working Group, I have had four opportunities, two in
    Beijing, to speak to my PRC counterparts on this issue. They
    know that this is important to us, and they have taken some
    initial actions, notifying their chemical industry, for
    instance, about certain substances that should not be
    distributed to the United States.
        But they also know directly from me and from the secretary
    that they are not doing enough. And----
        Mrs. Wagner. Yes. 9,600 pounds. I mean, that's, as I said,
    enough to kill two billion people. And the No. 1 killer of 18
    to 34 year olds in the United States of America. This is a war
    on our youth. A hundred thousand Americans died in 2023.
        I am going to move on here. Assistant Secretary Nichols,
    last year, Brazilian President Lula da Silva allowed two of
    Iran's most advanced warships to dock in Rio de Janeiro. The
    Lula government granted these ships access to one of Brazil's
    most important ports, despite U.S. sanctions and over the
    reported objections of the administration. What specific
    actions has the administration taken against the port in Rio de
    Janeiro where the ships docked and the Brazilian companies that
    provided them services or accepted payments and the foreign
    companies that have entangled themselves with the port or those
    Brazilian companies since?
        Mr. Nichols. We have discussed with countries around the
    region the importance of respect for the sanctions against Iran
    and its forces. We have raised the issue with the government of
    Brazil.
        Mrs. Wagner. Two, two of Iran's most advanced warships
    docked there. What specific action did we take?
        Mr. Nichols. We have raised this issue with Brazilian
    officials and expressed our concerns.
        Mrs. Wagner. All right. We have done nothing. I yield back,
    Mr. Chairman. Pathetic.
        Chairman McCaul. The gentlelady yields back. The committee
    will recess for three votes on the House floor, and we will
    reconvene after these votes. Thank you so much.
        [Whereupon, the above-entitled matter went off the record
    at 11 a.m. and resumed at 11:31 a.m.]
        Mr. Mast. Committee will reconvene. The chair now
    recognizes Mr. Keating for 5 minutes.
        Mr. Keating. Thank you, Mr. Chairman. Thank you to our
    witnesses today.
        Cuba, Nicaragua, Venezuela all support Russia's malign
    influence in Latin America. They also prop up, in doing so,
    Russia's war effort in Ukraine. Mexico and Brazil certainly
    could do more.
        Given the fact that Russia now, their domestic product is
    less than $1.8 trillion, you know--compare that to California,
    it's about half of California's domestic product. We have
    advance in Russia economically, including Putin doing a whole
    new set of income taxes, steep income taxes, on his people, 5
    percent corporation tax hike, new mineral extraction taxes.
    Their illegal war has resulted in cutting them off from
    supplying 25 percent of Europe's oil, 40 percent of their gas.
    They are certainly hurting economically.
        Given that and looking at the long-range trajectory of
    their economy, given the fact that their security and military
    effort has been exposed, their weakness has been exposed by
    Ukraine, if you look at all those things, do you see in any way
    that these countries, looking forward, seeing Russia's obvious
    weakness militarily in Ukraine, seeing what they are doing
    economically, how poorly they are doing, that this alignment
    with Russia could be something that we could change, and could
    you comment on that? To me, those countries, in the short run,
    can certainly take advantage of the security issues, perhaps
    with the Wagner Group and other groups. But even mid-range,
    looking at a forecast, the trajectory of their alliance with
    Russia doesn't seem to be one that makes sense with their own
    self-interest.
        Is there an opportunity there for the U.S. to try and come
    in and intervene? And what do you think those countries might
    be looking at looking at Russia today?
        Mr. Nichols. Thank you, sir. The opportunity for us is to
    present a positive vision for cooperation with partners across
    the hemisphere to demonstrate that working with the United
    States is in their interest, to show them that, if it's a
    matter of security cooperation, there is no nation that has
    more to bring to bear than the United States to support them.
    We look forward to working, for example, with Ecuador and Peru
    to help them transition to more U.S. equipment. We are very
    pleased that Argentina has bought 24 F-16s, increasing their
    interoperability with the United States.
        But that is going to mean a presence and putting forward a
    positive vision and including through speedy delivery of
    foreign military sales and greater agility in our foreign
    military financing.
        Mr. Keating. Do you forecast or see them reevaluating the
    position, even absent the U.S. intervention? It is something I
    think is common sense.
        Mr. Nichols. Well, the specific countries that you named, I
    think this will depend on progress toward democracy in those
    countries. The primary North Star for Ortega and Murillo, in
    Nicaragua or Maduro, in Venezuela is maintaining themselves in
    power and finding partners that will overlook their glaring
    abuses.
        Mr. Keating. And I think the other thing is China's
    activity economically, too. You see in African countries right
    now the remorse that so many of those countries have dealing
    with China's predatory loans and the promises. You know,
    countries that are doing business with them, they will take
    their raw materials. They will use it for their own business,
    and there will be slight profits to the country, the home
    country. That is opposed to a model with the U.S. and the West
    that would mean the investment would stay in that country and
    the profits would be greater in that country and the employment
    would be greater in that country than the Chinese model that is
    there.
        So I hope, as we look at these countries, that there is an
    opportunity, in Mexico I hope there is an opportunity with the
    new president in terms of their support of the Ukraine. I hope
    all these things come to bear, but there is a great opportunity
    and I am glad we are having this hearing today to give us an
    opportunity to see what the Biden administration is doing and
    what opportunities are there for us to really have greater
    success right here in our own hemisphere.
        With that, I yield back.
        Mr. Mast. Thank you, Mr. Keating. I now recognize myself
    for 5 minutes. I want to go to you, Secretary Nichols. I have a
    very specific question. Obviously, the work that we do here
    does affect very specific companies, very specific countries,
    very specific individuals, and the question that I want to
    start with affects a company that is also located in my
    community. They are dealing with Mexico. President Lopez
    Obrador threatening to essentially take over their port, their
    land, in the Yucatan Peninsula. That's Vulcan Materials. Are
    you familiar with this as a situation?
        Mr. Nichols. Yes, I am.
        Mr. Mast. You know, a little bit of overview on that. What
    could you say about that? What are you all doing to prevent
    this? What warning would you give this president on the way out
    as they are making this threat? What can you do about it? Happy
    to hear anything you have to say.
        Mr. Nichols. Thank you. This has been an issue for quite
    some time, as you know. We have raised our concerns with the
    government of Mexico at multiple levels. We have----
        Mr. Mast. Please don't gloss over those. Be specific about
    what those concerns are.
        Mr. Nichols. The security and ability of investments under
    the framework of the USMCA is a matter of great interest to the
    United States. We have mechanisms to deal with dispute
    resolution under USMCA. We have met with the leadership of
    Vulcan multiple times to understand their concerns and their
    suggested way forward in this issue. Senior officials from
    multiple U.S. agencies have raised this with their counterparts
    in Mexico, and we will continue----
        Mr. Mast. What would be the Mexican counterparts?
        Mr. Nichols. So the secretary of economy in Mexico, as well
    as their Navy secretary which controls the ports.
        Mr. Mast. Conversations are fruitful or borne no fruit?
    What would you say?
        Mr. Nichols. Well, again, we have had detailed
    conversations. I would say that, certainly, Mexican authorities
    understand our concerns, but we continue to talk about the way
    forward.
        Mr. Mast. Do you have any message you would like to deliver
    to the president of Mexico from this committee right now?
        Mr. Nichols. Well, I certainly think that those
    conversations are more productively held in private.
        Mr. Mast. Okay. I appreciate it. Since I have a little bit
    more time, I will go to a different line of questioning. Were
    you in your post when there was an authorization for, I want to
    say the number was about $20,000 for drag shows in Ecuador?
        Mr. Nichols. Yes, but that is not an issue that I worked on
    in any way.
        Mr. Mast. Very good. I am just--I am glad to hear that you
    weren't working on it. It saves you some headache of some
    questions, but I would be interested in how many people do you
    think were a part of vetting that, signing off on that as
    creating the solicitation for it, authorizing the solicitation
    to go out, and then ultimately approving that solicitation and
    offering grants? How many people would you say were in that
    approval process?
        Mr. Nichols. So as I understand the process, it was done
    entirely at the post level. It was not a Washington process. It
    is worth remembering that this grant never actually took place.
    There was no show, there was----
        Mr. Mast. That is right. Political pressure forced it to be
    ended, no doubt and thankfully. It would have been a waste of
    $20,000 of taxpayer money. But still the question remains how
    does that get through to approval? Because it did get to the
    point of approval, so how many people would you speculate at
    the post level had to put eyes on that in order for the
    solicitation, No. 1, to exist and then, No. 2, to be approved?
        Mr. Nichols. You know, it could be as few as, you know, two
    or three people. For a small grant to be approved, and my
    colleagues manage money here so they may have some insights
    into the broad process, not in this specific instance, but that
    is something you receive a proposal. It could be handled by
    local staff. Then, you know, even someone lower than a section
    chief----
        Mr. Mast. It could be a few----
        Mr. Nichols [continuing]. Depending on the amount----
        Mr. Mast. Did you look into it at all? Did you look into
    who it was?
        Mr. Nichols. This activity never took place and was
    canceled----
        Mr. Mast. But did you look into who, from your position,
    did you look into who approved the solicitation and then who
    ultimately approved the grant?
        Mr. Nichols. Well, I talked to the chief of mission, and he
    told me that neither he, nor the deputy chief of mission, had
    ever seen anything about this and it was a shock to them.
        Mr. Mast. It was a shock. So then there was a discussion
    about this. Who ultimately approved it? What was the title of
    the position that approved that?
        Mr. Nichols. I don't know the answer to that, sir.
        Mr. Mast. Did you seek that information?
        Mr. Nichols. No, sir.
        Mr. Mast. Do you believe that is important information for
    us to know?
        Mr. Nichols. I think that the important fact is that, when
    it reached supervisory levels, you know, it didn't progress, it
    didn't move forward for obvious reasons.
        Mr. Mast. My time is expired. We are going to go to Ms.
    Manning for 5 minutes.
        Ms. Manning. Thank you, Mr. Chair. And I would like to
    thank Chair McCaul and Ranking Member Meeks and our witnesses
    for having this important hearing.
        Before we broke for votes, one of my colleagues objected
    vociferously to your suggestion that President Biden is working
    to address the problems at the border, and I would like to
    point out that the Senate had a bipartisan border bill that had
    been negotiated fiercely, but they reached agreement on the
    bill. It would have provided serious solutions to the border
    issue, but, unfortunately, former President Trump told
    Republicans in Congress that he would rather run on the border
    issue than solve that problem for the American people. So we
    never had a chance to vote on that border bill.
        I would also like to mention that I am one of the original
    co-sponsors of the first bipartisan comprehensive immigration
    bill introduced in more than 10 years. It was introduced by one
    of my colleagues on the other side of the aisle, Representative
    Salazar, along with Representative Escobar. I certainly wish
    that bill was supported by my colleagues on both sides of the
    aisle because that would address not only the border issues but
    our other immigration issues.
        Assistant Secretary Nichols, I would like to ask you about
    an issue that has gotten some press recently, and that is a
    significant increase in migrants who are taking advantage of
    loose visa requirements in countries like Colombia and
    Nicaragua to transit to these countries by airplane and trying
    to get into the United States. And we have read reports that
    some of them are stuck in those airports, can't get out,
    because they then can't get the flights they are trying to take
    the U.S. It has caused enormous problems, but it is also a way
    for people to come to the U.S. illegally.
        So I wonder what the administration is doing to try to
    crack down on those flights by migrants and, frankly, by
    traffickers who are putting migrants on those flights. What is
    being done to get other countries to restrict this route?
        Mr. Nichols. We have worked with countries around the
    hemisphere, as well as ICAO and IATA, two key international
    aviation organizations, to crack down on charter flights that
    bring irregular migrants into our region. We meet with
    executives of commercial airlines to sensitize them to the
    risks of transporting non-bona fide travelers to our region. We
    have worked successfully with partners around the hemisphere to
    impose additional visa restrictions on countries that have a
    history of sending irregular migrants into our hemisphere. We
    have worked with partner nations to facilitate the repatriation
    of irregular migrants back to their countries of origin.
        Ms. Manning. Are you seeing any success?
        Mr. Nichols. We are seeing success. The charter flight
    industry of irregular migrants has effectively ceased, and
    those migrants have tried to use commercial airliners or other
    means to access the region.
        Ms. Manning. And can you tell me what impact the
    administration's regional processing centers or Safe Mobility
    offices has been having on migration from the region since they
    were established last year?
        Mr. Nichols. So the Safe Mobility offices have allowed
    people who wish to migrate to the United States to apply to do
    so through legal means, whether, for example, it is work-
    related visas, like the H-2 categories of visas, or other
    parole mechanisms to access those facilities away from our
    border. They can do so within the region, and it has prevented
    thousands and thousands of intending migrants from approaching
    the U.S. southwest border.
        Ms. Manning. Thank you. Mr. Camilleri, can you talk a
    little bit about more details about the USAID programs to help
    support civil society in countries with entrenched autocratic
    regimes, like Venezuela, Cuba, and Nicaragua?
        Mr. Camilleri. Certainly, Congresswoman. Thank you for the
    important question. In the limited time we have, just to say
    precisely in those countries where the regimes that govern
    those three countries are determined to squash and snuff out
    civic space, democratic space, USAID is committed to supporting
    those who champion democracy, free speech, ultimately free
    elections, and the ability of people in those countries to
    choose their own leaders and the path that their countries will
    take. In some places, we are fairly lonely, like in Nicaragua,
    in championing and supporting that work under difficult
    circumstances, but it is something that we are very committed
    to.
        Ms. Manning. My time is about to expire. Thank you. I yield
    back.
        Mr. Mast. Thank you, Ms. Manning. The chair now recognizes
    Mr. Davidson, if he is prepared.
        Mr. Davidson. I thank the Chairman. I thank our witnesses,
    and, you know, when Secretary Blinken was here recently, I
    asked him about the Monroe Doctrine and when or whether it was
    a calculated decision by the United States to abandon that, and
    he seemed unfamiliar with the Monroe Doctrine.
        If I could just ask each of you, you know, beginning from
    your right to left, are you familiar with the Monroe Doctrine?
    Have you heard of this?
        Mr. Nichols. I am familiar with the Monroe Doctrine. I'm
    familiar with the Roosevelt Corollary, as well.
        Mr. Davidson. Thank you. Mr. Robinson.
        Mr. Robinson. I am familiar with the Monroe Doctrine.
        Mr. Davidson. Thank you.
        Mr. Camilleri. Yes, sir.
        Mr. Davidson. All right. Thank you. So could you summarize
    it for me?
        Mr. Nichols. The Monroe Doctrine, the original Monroe
    Doctrine states to European powers that they should not seek to
    reestablish their colonies in the Western Hemisphere. That is
    the original Monroe Doctrine.
        Mr. Davidson. And the Roosevelt Corollary, as you see it?
        Mr. Nichols. The Roosevelt Corollary broadens the Monroe
    Doctrine to tell foreign powers that they should not seek to
    establish a presence in the Western Hemisphere or to threaten
    the United States close to its borders.
        Mr. Davidson. So was it a calculated decision by the State
    Department to abandon that doctrine? And if so, when was that
    decision made?
        Mr. Nichols. There is no decision to eliminate the Monroe
    Doctrine.
        Mr. Davidson. Or the Roosevelt Corollary?
        Mr. Nichols. Or the Roosevelt Corollary.
        Mr. Davidson. Well, it is interesting that Secretary
    Blinken has no recollection of what those things mean.
    Hopefully, he understands what the policy means. But if you
    look at the results, you would say, no, it seems like he kind
    of decided we are not actually going to do that anymore. I
    mean, the chairman started the hearing off by pointing out the
    results. So if we are still embracing those policies, how do
    you reconcile the result?
        Mr. Nichols. I think we have worked intensively to
    strengthen our partners and allies in this hemisphere. We work
    with them on security, democracy, prosperity. The idea that----
        Mr. Davidson. If you are not doing anything to counter the
    other powers coming into the United States, I mean, frankly, it
    seems like the administration is more concerned about Pride
    Month activities in Guatemala than they are about China's
    presence all over the entire hemisphere, I mean, if you look at
    the agenda, if you look at the Ambassadors and what they are
    emphasizing.
        And in Guatemala, speaking of that, you know, the Secretary
    of State was just down there trying to get the attorney general
    fired. Is it an official policy of the United States to get the
    attorney general of Guatemala fired?
        Mr. Nichols. The attorney general of Guatemala, Consuelo
    Porras, is a sanctioned individual who has used her office to
    attack civil society, to attack anti-corruption crusaders, to
    go after public officials who have combated corruption. She has
    facilitated illicit activities in that country for years. She
    tried to obstruct the democratic process that took place with
    the election of Bernardo Arevalo. She is a person who has done
    a lot of very worrisome, very bad things.
        Mr. Davidson. So for that, that is why--is it an official
    State Department policy to revoke the travel privileges for
    members of the Guatemalan legislature if they don't support
    removing it? It sounds like there was a gathering where
    leverage was applied to Guatemala's legislature in order to
    coerce them into firing somebody that the Biden administration
    doesn't like. And, frankly, I will point out that wasn't the
    first time that Joe Biden was working to influence the firing
    of a prosecutor.
        Mr. Nichols. We believe that the Guatemalan people should
    have the right to be led by their democratically elected choice
    as president----
        Mr. Davidson. Do you believe it is fair for the Biden
    administration, not the United States of America but, frankly,
    the Biden administration, not acting on behalf of the interests
    of our country, to threaten the Guatemalan legislature?
        Mr. Nichols. What we have said is that those who use
    corrupt means, the payment of bribes, the threats of wrongful
    prosecution against their own citizens to prevent a
    democratically elected leader from taking office, that is a
    threat to democracy----
        Mr. Davidson. Well, you know what is a threat to democracy
    and sovereignty is the invasion of our border, so I would love
    it if you were using the same kinds of leverage. If you are
    going to use leverage, use it on behalf of our country to
    defend America's border because, instead, the Biden
    administration, with the help of our State Department, has
    facilitated an invasion of our country. So please focus on our
    sovereignty in our own country. My time is expired, and I yield
    back.
        Mr. Mast. Thank you, Mr. Davidson. The chair now recognizes
    Mr. Castro for 5 minutes.
        Mr. Castro. Assistant Secretary Robinson, where do the
    majority of firearms used by cartels in Mexico, Central
    America, or the Caribbean come from?
        Mr. Robinson. Thank you, sir, for that question. The
    majority of firearms used by criminals in the region come from
    the United States.
        Mr. Castro. And would you say that lax U.S. gun laws are a
    foreign policy problem for the United States?
        Mr. Robinson. Well, what I would say is the countries in
    the region, our friends in the region, are challenged to oppose
    those transnational organizations, criminal organizations, and
    gangs who are receiving those weapons, and we are challenged
    here in the United States to help them.
        Mr. Castro. And when countries in the region, particularly
    the Caribbean, raise their most important priorities with you--
    this is for Secretary Nichols--how often does the issue of
    firearms from the United States come up?
        Mr. Nichols. It comes up very frequently. We believe that
    the bipartisan Safer Communities Act was an important step in
    addressing those concerns. The naming of a special prosecutor
    in the Department of Justice to lead investigations, the use of
    technologies like eTrace, training to partners in the northern
    and southern Caribbean in gun crime investigations has also
    been responsive to those concerns, but our partners would
    certainly like us to do even more.
        Mr. Castro. And, Secretary Robinson, one important tool we
    have to track and combat the trafficking of firearms is the
    Bureau of Alcohol, Tobacco, and Firearms' eTrace system, which
    allows law enforcement to submit forensic information from
    captured weapons, like serial numbers, to the data base. Other
    countries can also participate and submit information, and many
    do, but there are significant gaps in coverage in Mexico,
    Central America, and the Caribbean. The INL Bureau that you
    lead helps build capacity in foreign law enforcement agencies.
        What are you doing to help foreign law enforcement agencies
    participate in the eTrace system and track the source of
    firearms?
        Mr. Robinson. Thank you. Actually, we are working very
    closely with our interagency colleagues at the Department of
    Justice Alcohol, Tobacco, and Firearms and DHS to broaden the
    spectrum of the use of eTrace not just in Mexico but in the
    Caribbean. I was just there. I was there with the special
    prosecutor, Michael Ben'Ary, to discuss this with our
    colleagues in the eastern Caribbean, and we are doing what we
    can to get more countries to enter the information and the
    evidence into eTrace.
        Mr. Castro. Well, thank you for that important work. And I
    raise this issue because we often talk about the very real
    danger of cartels and the damage that they do, not only in
    Mexico but to Americans due to trafficking of fentanyl,
    trafficking of migrants because they often force these people
    to pay a fee to present themselves at the border. But they are
    powered by American firearms. They would not be able to succeed
    the way they do but for the use of American firearms. And even
    though there is a lot of discussion about these issues on this
    committee, there is not the same will to actually do something
    about it and disarm the cartels. So there is a lot of, you
    know, big statements and aggressive statements against the
    cartels but actually very weak will to actually do anything
    about it to disarm them so that they can't accomplish what they
    are accomplishing now.
        I had a second unrelated question on Honduras for you all.
    U.S. trade representative Katherine Rai has said that
    ``President Biden does not believe corporations should receive
    special tribunals and trade agreements that are not available
    to other organizations, and he opposes the ability of private
    corporations to attack labor, health, and environmental
    policies through investor State dispute settlements.''
        Does the State Department share the president's position of
    opposing investor State dispute settlement policies?
        Mr. Nichols. Well, I will just note that I support the
    president's policies. The specific reference to Honduras is not
    something that I have tracked closely, and I would appreciate
    the opportunity to come back to you for the record with a more
    specific answer.
        Mr. Castro. Thank you. I yield back.
        Mr. Mast. Thank you, Mr. Castro. The chair now recognizes
    Mr. Baird for 5 minutes.
        Mr. Baird. Thank you, Mr. Chairman and ranking member. I
    appreciate the opportunity to be here. I also appreciate our
    witnesses taking the time to share with this committee your
    perspectives.
        My question deals, Mr. Assistant Secretary Nichols, the
    fact that I serve on a subcommittee for foreign affairs on the
    African subcommittee where we discuss a lot about the Chinese
    investments and how the U.S. can counter the Belt and Road
    Initiative. And in this case and in this vein, I want to
    address China being right at our front doorsteps. Not only have
    we had the most illegal border crossings by Chinese nationals
    than we have ever seen, and China has a growing influence in
    Latin America.
        Some economists predict that the Chinese market for Latin
    America's exports could exceed $700 billion by 2035. And we now
    know that China is Latin America's top trading partner.
        So my question is this: if trade and investments between
    Latin America and China continue at this rate, what will the
    impact be on global agriculture markets and the U.S.
    agriculture exports? I serve on the agriculture committee, as
    well, so I would appreciate your perspective in that regard.
        Mr. Nichols. Thank you, sir. The United States is a leading
    trading partner for two-thirds of the countries in this
    hemisphere. But we have to take the challenge seriously, and
    that means providing good options for countries around the
    hemisphere, whether it is through Development Finance
    Corporation, USAID, leveraging IDB lending and IDB Invest to
    provide access to the kinds of financing that countries need
    for major infrastructure projects. We are working in a whole
    host of areas to support agricultural trade and cooperation
    within the region. Foreign Agricultural Service officers play
    an important role in many of our embassies around the region in
    promoting U.S. agricultural exports to the hemisphere, and we
    believe that our products are the best in the world and can be
    transformative.
        We are working with countries as small as Saint Kitts and
    Nevis and as big as Brazil to address the agricultural trade
    issues.
        Mr. Baird. Thank you. And, Mr. Camilleri, you have a
    considerable amount of experience with USAID, and, being on the
    agriculture committee, that is of interest to me. So do you
    have any insights that you would like to share, please?
        Mr. Camilleri. Thank you, sir. Of course, through our Feed
    the Future programming, particularly in Guatemala and Honduras,
    we have strong interests in working with farmers and enhancing
    food security in many parts of the region.
        To your particular question about the link with PRC, you
    mentioned exports to the PRC, but I would also flag the Chinese
    exports to the region, as well, and just mention, in Honduras
    for example, we have been able to work with small older
    farmers, many of them indigenous, connect them to the largest
    supermarket chain that was sourcing 90 percent of its garlic,
    for example, from the PRC and displace those imports with local
    produce from the farmers that we are supporting. And, actually,
    the Mexican development agency, AMEXCID, is also supporting in
    a partnership with USAID. So we are helping to kind of buttress
    and build more resilient food systems within the region for the
    region's own benefit but also as a bank shot to building
    resilience against PRC influence.
        Mr. Baird. Would it also be your observation that this is
    successful and we are making progress in competing against the
    Belt and Road Initiative?
        Mr. Camilleri. I think, as the assistant secretary
    mentioned, this is one of the defining strategic challenges of
    our time. It is not going anywhere. We need to stay at this and
    be present across the region. We have a four-pillar framework
    at USAID that is a delegable framework that seeks to put
    forward our affirmative development model as a part of the
    ground game in countering PRC influence. So, certainly, we are
    making progress, but we are not resting on our laurels.
        Mr. Baird. Thank you. And I see my time is almost up, and I
    yield back.
        Mr. Mast. Thank you, Mr. Baird. The chair recognizes Mr.
    Connolly for 5 minutes.
        Mr. Connolly. Thank you so much. Mr. Assistant Secretary
    Nichols, a little while ago one of my colleagues was praising
    the attorney general of Guatemala. Is it not true that the
    attorney general of Guatemala has, in fact, been sanctioned by
    the U.S. Government for her interference in the peaceful
    transfer of power in Guatemala?
        Mr. Nichols. That's correct, sir.
        Mr. Connolly. She has been sanctioned.
        Mr. Nichols. She's under U.S. sanctions for corruption and
    interfering with democratic processes.
        Mr. Connolly. Interfering with democratic process. Right.
    That ought to be something sanctioned not only in Guatemala but
    here in the United States.
        There has also been a lot of criticism thrown your way
    about allowing China to have influence in the region. In the
    previous administration, is it not true that President Trump
    cutoff aid to Central America?
        Mr. Nichols. Certainly, there were reductions in assistance
    to a number of countries in our region proposed by----
        Mr. Connolly. But specifically in Central America because
    of then President Trump's concern about migration patterns; is
    that not correct?
        Mr. Nichols. Certainly, that effort was undertaken, yes.
        Mr. Connolly. So three of the countries at that time in
    Central America who recognized Taiwan, rather than the PRC,
    what happened during that administration to those three
    countries in terms of their recognition?
        Mr. Nichols. So Guatemala continues to recognize Taiwan.
    Honduras and El Salvador have changed their recognition to the
    PRC.
        Mr. Connolly. I see. Now, Brazil. Brazil was, under
    Bolsonaro, sort of, there was a warm relationship, reportedly,
    between President Trump and President Bolsonaro. And,
    presumably, that would take care of all Chinese influence in
    Brazil. So what happened to the pattern of, say, U.S. trade and
    Chinese trade in Brazil?
        Mr. Nichols. Certainly, if my memory serves, PRC
    investments in Brazil during that period increased. But I note
    that the United States continues to be the largest source of
    foreign direct investigation in Brazil----
        Mr. Connolly. Yes. But I'm talking about trade. And
    Brazil's trade with the United States in that time period, that
    very time period, fell 11 percent--I'm sorry--fell to the
    lowest level in 11 years while Chinese trade and exports
    increased 34 percent during the Trump years. So when we are
    looking for efficacy in policies, it is easy to rhetorically
    rail against the influence of China, but, if we are going to
    start to lay blame and look at records, let's start with the
    previous administration and how well that rhetoric and those
    policies and those relationships worked with respect to curbing
    Chinese influence in the region.
        From your point of view, do we need more or fewer resources
    to combat the competitive threat China poses to us in our own
    backyard?
        Mr. Nichols. We need more resource, sir.
        Mr. Connolly. More resources. Have you looked at what the
    foreign operations appropriation bill that is being marked up
    here in the House does to your budget and to that of the State
    Department and foreign diplomacy in general?
        Mr. Nichols. Our legislative affairs colleagues have
    briefed me on the contents. I have not seen the contents
    myself.
        Mr. Connolly. And let's say we are looking at a 25--30
    percent cut in your resources, how would that help you counter
    the Chinese threat in the region?
        Mr. Nichols. That would be a devastating cut to our ability
    to post our people in the field, to provide assistance in ways
    that meaningful make us more competitive in the region. We
    already face significant challenges staffing our posts. We
    don't have Ambassadors in a number of countries----
        Mr. Connolly. But to put it simply, Mr. Assistant
    Secretary, deep cuts of that magnitude hardly help us in the
    competition with China, they will, in fact, impede our ability
    to do that; would that be a fair statement?
        Mr. Nichols. Yes, sir.
        Mr. Connolly. Thank you. I yield back.
        Mr. Mast. Thank you, Mr. Connolly. The chair now recognizes
    Mr. Keen for 5 minutes.
        Mr. Kean. Thank you, Mr. Chairman. Thank you to all of our
    witnesses for being here. Several months ago, reports revealed
    that Cubans are being recruited to fight for Russia in its
    illegal continued war of aggression against Ukraine. Has the
    administration determined that the Cuban regime has either
    allowed or promoted Cuban mercenaries to fight for Russia? And
    please explain Russia's current military, political, and
    economic relationship with Cuba.
        Mr. Nichols. So we have raised this issue with Cuban
    officials. I have raised it with my Cuban counterparts. The
    recruitment of Cubans is something that they expressed concern
    about, and the reports of that, I think, are worrisome to all
    of us. The Russian relationship with Cuba militarily continues
    to be an important relationship for them, and that is evidenced
    by the fact that Russian ships are visiting Cuba even as we
    speak.
        Mr. Kean. Thank you. Last week, Claudia Sheinbaum was
    elected as Mexico's president and will be taking office in
    October. With the new leadership in Mexico, what are the
    expectation for negotiations on measures to address and combat
    the production and trafficking of fentanyl in Mexico and
    combating it along the southern border?
        Mr. Robinson. Sir, thank you for that question. As you
    know, we have a very important relationship with Mexico in
    terms of stopping, trying to stop the flow of fentanyl from the
    border. We will have to see what happens when President-Elect
    Sheinbaum takes office, but indications are that she takes
    security seriously. During her time as mayor of Mexico City,
    she increased budgets for the security apparatus in Mexico City
    significantly, I think something like 15 percent. That is a
    strong indication, to us at least, that she will take security
    seriously when she takes office.
        We will, of course, we are reaching out to her team now and
    look forward to working with her when she is inaugurated.
        Mr. Kean. Her soon-to-be predecessor proved to be a
    difficult partner in assisting the United States in countering
    illegal migration stemming from Latin America and the violence
    of drug cartels. What are the strategies that you are using to
    counter the illegal migration and to address cartel violence
    that includes human trafficking?
        Mr. Robinson. Well, I can't speak to migration
    specifically, but what I will say is we have a very strong
    relationship with the security team in Mexico currently, and we
    expect we will have an even stronger relationship with the
    security team of the new president. We work very closely with
    the secretariat of the Navy. We are training and equipping both
    at the Federal level and at the State level. We have an
    excellent relationship working with our interagency partners at
    the Department of Justice with the attorney general's office.
    All of those relationships are important, and we will keep
    working with them, we anticipate working with them with the new
    president.
        Mr. Kean. And in an effort to counter the Kremlin's
    continued influence operations in Latin America, the State
    Department and OFAC have sanctioned entities, such as the
    Social Design Agency, the SDA. These groups create campaigns
    that contain pro-Kremlin propaganda to undermine support for
    Ukraine and promote anti-U.S. and anti-NATO sentiment. What
    strategies can the U.S. Department of State employ to
    effectively counteract misinformation and propaganda campaigns
    orchestrated by influence for higher firms, like Social Design
    Agency, in Latin America?
        Mr. Robinson. So I will note that, through the Global
    Engagement Center, we seek to counter disinformation from
    Russia throughout the region. We inform partners of the
    sourcing. We carry out programs to educate journalists and
    civil society members about the true origins of the information
    that they receive. We point out the presence of malign
    entities, like RT, Russia TV, Russia Today in the region and
    how they seek to twist the narrative involved. We are
    continuing to promote training for journalists, for example, so
    that they can better identify the real sources of the
    information that is put before them.
        Mr. Kean. Thank you. I yield back.
        Mr. Mast. Thank you, Mr. Kean. The chair now recognizes Mr.
    Sherman for 5 minutes.
        Mr. Sherman. Thank you. I am pleased that we are having
    this hearing on the importance of Latin America. And I would
    point out that, as we work to secure America's national
    security and America's interests, that the proposed 11-percent
    cut in State and foreign ops budget will cut our efforts to be
    successful, particularly in Latin America.
        I want to focus on Haiti for a moment. The security and
    humanitarian situation in Haiti is dire. Gangs control 80
    percent of Port-au-Prince. Nearly a million and a half Haitians
    are facing famine. 362,000 people are internally displaced. We
    see young girls regularly the victim of sexual and gender-based
    violence. In short, gang violence has caused life in Haiti to
    be unbearable.
        However, for more than 6 months, Republicans have
    repeatedly put up obstacles. They are preventing the release of
    funds for the Multinational Security Support mission. Mr.
    Nichols, does that hold on funding for that Multinational
    Security Support system hurt our ability to stem the root
    causes of mass migration from Haiti?
        Mr. Nichols. Yes, sir, it is a serious concern.
        Mr. Sherman. And looking long term, would the re-
    authorization of the Haiti HOPE-HELP trade preferences help
    stabilize economic investment in Haiti, and how would that
    contribute to strengthening the opportunity for jobs and
    livelihoods?
        Mr. Nichols. It is crucial. We have already seen apparel
    and textile companies close up their operations in Haiti, and
    they have told us specifically that the re-authorization of
    HOPE-HELP would give them the certainty that they need to
    continue in place. In that industry, orders come in 18 months
    ahead of time, so 2025 is now.
        Mr. Sherman. Obviously, the security situation and the need
    for that Multinational Security Support system is critical.
    Putting that aside, is there other steps Congress can take to
    bolster private-sector investment in Haiti?
        Mr. Nichols. Certainly, among the things that are
    important, beyond trade preferences contained in HOPE and HELP,
    increasing security. That is the number-one concern that
    investors cite in their inability to operate in Haiti as the
    security situation.
        Mr. Sherman. That is, I think, obvious to anybody who sees
    what is going on there. Obviously, we are focusing on fentanyl;
    110,000 Americans died from drug overdoses last year. China has
    been the primary source of precursor chemicals synthesized into
    fentanyl in Mexico. If China were to stop providing those
    precursor chemicals, are they easy for the drug cartels to get
    from some other source, or would that significantly dent their
    ability to bring fentanyl into my city?
        Mr. Robinson. Thank you, sir, for that question. The short
    answer is it is complicated because some of the chemicals are
    dual-use chemicals, so they have legal uses. What we continue
    to ask of the PRC is that they do a better job of----
        Mr. Sherman. If we were successful with the PRC, would
    that--I think I have another 30 seconds. The clock is wrong. I
    will ask you to respond for the record as to whether, if China
    were successful in stopping those chemicals, whether the drug
    cartels could get them from some other source.
        Mr. Robinson. Potentially, yes.
        Mr. Sherman. I yield back.
        Mr. Hill. The gentleman yields back. The gentleman from
    Guam is recognized for 5 minutes.
        Mr. Moylan. Thank you, Mr. Chairman. And I just want to say
    it is a pleasure to join the committee, the procedures
    committee, and the vital part that it plays for our Nation, and
    I am looking forward to working with all of my members here.
        Now, while my district lies within the Indo-Pacific, the
    Western Hemisphere and the Pacific share many of the same
    issues. Guam's proximity to the People's Republic of China
    means that great power competition by aggressive nations
    affects us on a daily basis. So the Western Hemisphere, Latin
    America and the Caribbean, are no different. And, additionally,
    larger operations, like Russia, flag to convenience shipping,
    and the PRC's One Belt, One Road Initiative means that these
    nations can negatively influence ever region of the world.
        So, Assistant Secretary Robinson, illegal, unregulated, and
    unrestricted fishing is a problem that affects populations
    globally. Both in the Americas and the Indo-Pacific, IUU
    fishing is used as a regular tool by the People's Republic of
    China. Yet, despite initiatives of Maritime SAFE, this program
    continues to proliferate across the globe.
        So, Assistant Secretary Robinson, how is the Department of
    State changing its approach to counter the ongoing threat more
    effectively?
        Mr. Robinson. Thank you for that question. I think you hit
    the nail on the head. This is a global issue that requires all
    of our partner nations to be involved in defending against. We
    are working very closely, for instance, with Panama, with
    Ecuador, with other countries in the eastern Caribbean to give
    them the ability and the capacity to have a better awareness of
    their domain, territorial domain, to identify these illegal
    fleets and to work with us, partner with us, to combat them and
    to raise these issues with the PRC.
        Mr. Moylan. I appreciate that. I would just like to see
    more U.S. ships' interest out there to deter CCP. Also, another
    question for you, sir. Chemicals essential to creating fentanyl
    or other drugs are often given to Latin America-based
    transnational criminal organizations (TCO) from actors within
    the People's Republic of China. So, Assistant Secretary
    Robinson, how have external State actors, like PRC, disrupt
    State operations in this field and damage the region as a
    whole?
        Mr. Robinson. Well, while I would tweak that a little bit
    because we don't have evidence that the PRC is, as a
    government, is allowing these chemicals to go to transnational
    criminal organizations. We do know that there are industries in
    the PRC that are selling these chemicals to and trafficking
    these chemicals to transnational criminal organizations. That
    is without a doubt.
        We are working with our partners. We are working at a
    global level to identify both the companies and the networks
    and working with them to bring them down.
        Mr. Moylan. Okay. And if you need help from this committee,
    I am more than happy to work with you to expedite this process
    because it is killing America basically.
        Mr. Robinson. Thank you, sir.
        Mr. Moylan. Finally, just a minute here, since taking
    office, President Lula da Silva has aggressively sought to
    deepen Brazil's ties with China, and China is Brazil's largest
    trading partner and has invested so much money, and, basically,
    going to China and asking for help with critical
    infrastructure, railways, energy port, and all their projects.
    So CCP is basically buying them up, so what are we doing to
    prevent this?
        Mr. Robinson. We have robust engagement with Brazil across
    a whole host of areas. The United States works with our private
    sector to promote trade and investment. The Amcham in Brazil,
    its members account for about two-thirds of the value of
    Brazilian GDP. We work with Brazilian officials to try and
    remove barriers to our commercial relations, and we seek to
    leverage the tools that we have, whether it is EXIM, DFC,
    USAID, Inter-American Development Bank, so that U.S. businesses
    will be competitive in competing for infrastructure and other
    major projects in Brazil.
        Mr. Moylan. Thank you for that. I ran out of time. Thank
    you, Mr. Chairman.
        Mr. Hill. The gentleman yields back. The gentleman from
    Arizona is recognized for 5 minutes.
        Mr. Stanton. Thank you very much, Mr. Chairman. The Western
    Hemisphere, it is ripe for near-shoring, moving our supply
    lines closer to the United States market, and this is our
    moment to act. If the last few years have taught us anything,
    it is that we need to diversify our supply chains and bring
    them closer to the United States market. For national security
    reasons, we can't rely on China to produce critical technology.
    For economic reasons, we should encourage businesses to
    continue moving to the Western Hemisphere after seeing pandemic
    shortages. And for common sense reasons, we should work to
    multiply the impact of our historic investments here at home,
    including the CHIPS Act and the bipartisan infrastructure law,
    by creating regional ecosystems.
        Mexico has always been Arizona's No. 1 trading partner. Now
    they are the No. 1 trading partner of the entire United States,
    and the U.S.-Mexico-Canada agreement, which has been pivotal on
    both sides of the border, will be up for review in 2026. We
    should be gearing up for this by seizing this moment to make
    investments, to encourage our partners in Latin America, in the
    Caribbean, to make investments and to strengthen ties with our
    neighbors. This should include investments in the semiconductor
    supply chain, particularly the upstream parts, including
    critical mineral mining and processing, and downstream parts,
    like testing and packaging.
        On the upstream side, Peru, Bolivia, Argentina, Chile,
    Mexico, and others have large deposits of minerals that are
    critical for making semiconductors. Building industries that
    mine and process those minerals would make them formidable
    players. On the downstream side, Intel already has an assembly
    and testing facility in Costa Rica, and states in northern
    Mexico have expressed deep interest in getting involved, as
    well. In fact, two schools in my district, Arizona State
    University and Mesa Community College, are working with the
    Department of Commerce to train Mexican students for the
    semiconductor workforce.
        My push is that we use all of our tools, our schools,
    universities, Development Finance Corporation, the State
    Department's International Technology Security and Innovation
    Fund, and our historic investment in the CHIPS and Science Act
    to shore up national security, diversify our supply chain,
    develop stable jobs in Latin America, and create a regional
    semiconductor ecosystem.
        Assistant Secretary Nichols, Mexico has lots of work to do
    to address near-shoring challenges. It needs to open up its
    energy policy and rein in the cartels. How should the United
    States encourage President-Elect Sheinbaum to tackle such
    obstacles to near-shoring investment?
        Mr. Nichols. Well, first, let me just wholeheartedly agree
    with everything that you have said. And with regard to Mexico,
    Mexico is one of the leading recipients of foreign direct
    investment in the world, particularly in northern Mexico.
    President-Elect Sheinbaum is a scientist. She worked with one
    of the labs with U.S. Department of Energy, and I think
    demonstrating to her with the hard facts the importance of
    these issues and laying out the scientific case will be
    compelling for her.
        Mr. Stanton. I have another question for you, Assistant
    Secretary Nichols. On Monday, President-Elect Sheinbaum spoke
    about the AMLO-proposed judicial overhaul that could upset the
    balance of power in Mexico and create market unrest. How do you
    anticipate that Mexico's recent election and the proposed
    judicial changes will affect American treatment into Mexico?
        Mr. Nichols. Well, obviously, Mexico is a sovereign
    country, and they have procedures that they can use to change
    their legal framework. We believe that judicial transparency is
    vital for all investors, whether they are domestic Mexican
    investors or international investors, particularly those from
    the United States and Canada as USMCA partners. We will
    continue to insist whatever the future legal regime is in
    Mexico that all the signatories to USMCA respect the protection
    of foreign investment provisions in that agreement.
        Mr. Stanton. Thank you. And I recently introduced H.R.
    8414, the Semiconductor Supply Chain Security and
    Diversification Act, a bipartisan bill which directs the
    Development Finance Corporation to invest in parts of the
    semiconductor supply chain in the Western Hemisphere,
    regardless of income classification. Assistant Secretary
    Nichols, beyond investments from the Development Finance
    Corporation, how should we be working with other Latin America
    and Caribbean governments to attract near-shoring
    opportunities, particularly the critical mineral processing or
    testing and packaging operations to build a robust regional
    supply chain?
        Mr. Nichols. Undersecretary Jose Fernandez has been leading
    our efforts around critical minerals in the region, bringing
    countries into the supply chain, securing those assets for the
    mutual benefit of our partners around the hemisphere. We have
    seen already investments, as I referred to in my opening
    statement, in Costa Rica, for example----
        Mr. Hill. The gentleman's time is expired.
        Mr. Nichols. So we will continue to work on that.
        Mr. Stanton. Thank you. I yield back. Thank you.
        Mr. Hill. The gentleman has yielded back. The gentlewoman
    from Florida, Ms. Salazar, is recognized for 5 minutes.
        Mrs. Salazar. Thank you very much. Wonderful to see you,
    all of you. Mr. Robinson, Mr. Nichols. Mr. Nichols, we saw each
    other in El Salvador a couple of days ago. Wonderful to have
    seen you there for the second inaugural of President Bukele.
        Salvador was the murder capital of the world at one point
    and now is the safest country in Western Hemisphere. Not bad.
    But, you know, that Bukele was not one of your favorites. What
    did he do right?
        Mr. Nichols. President Bukele and his government have
    implemented a comprehensive rule of law programming. The
    frontal effort to control the gangs in El Salvador is
    impressive and something that many countries are watching with
    great interest.
        We are concerned, however, that such policies should
    include a respect for the rule of law and the opportunity for
    all citizens to receive----
        Mrs. Salazar. Of course. I was the first one who told him
    we do not want anyone who is innocent in jail. You agree with
    me. But do you still agree that they did a great job? Even the
    State Department is saying, Okay, well, maybe we should copy
    this.
        Mr. Nichols. Well, I think that we can help countries
    implement police that address crime and still respect the rule
    of law and human rights.
        Mrs. Salazar. No doubt it. I am sure they want that, too.
    All right. I only have 5 minutes, so I have to move to the
    other one. Let's go to Cuba. The newest economic policy allows
    Cubans to use our banks, the United States banks, to transfer
    money anywhere around the world, supposedly for trade purposes.
    And I have no doubt that the Biden administration had the most
    noble interest in helping the Cuban people. But we know the
    Cuban regime. And you know what could happen? One of the
    problems is that let's say that the regime forms a company and
    it disguises in a company that is buying tomatoes from Turkey.
    So a Cuban company buys tomatoes from Turkey, and, in reality,
    what they are doing is laundering money for Hezbollah.
        Our banking system doesn't need to know this. You know
    that's a possibility. So what do you think--haven't you thought
    about this?
        Mr. Nichols. So the regulations that we have put in place
    will help thousands of independent Cuban businesses. The
    individuals who participate are screened. The participation of
    Cuban government officials is specifically prohibited.
        Mrs. Salazar. But wait a minute. The Cubans are
    intelligent, and they are going to find Pepe or Berta and they
    are going to say, hey, come on, you are going to put together
    this little trade, this little business, and we are going to be
    selling tomatoes to Turkey. And in reality, they are behind it
    because you know that is what they do. We don't do that, but
    they do.
        So my only question is what can we really do in order to
    prevent that? Because we don't want the Cubans to be using the
    United States banking system to launder money and to help our
    enemies. Do you understand that that is a possibility?
        Mr. Nichols. Certainly that the United States financial
    system continues to have compliance requirements and know your
    customer requirements. They screen their customers very
    carefully, and we will work with the financial system to ensure
    that there are measures in place to prevent those types of
    transactions.
        Mrs. Salazar. And don't you think that maybe, when it comes
    to the Cubans, we should implement even more layers because of
    their intentions?
        Mr. Nichols. The goal is to promote private sector
    development in Cuba.
        Mrs. Salazar. I am sure, but that is not the goal of the
    regime. The regime doesn't care if people eat. They are in the
    business of power. But we will work together on that.
        Now, Mr. Robinson, wonderful to talk to you. You know, my
    time is running out. Guatemala. Guatemala. We have a situation
    in Guatemala with a lady by the name of Consuelo Porras. The
    State Department has Porras in the crosshairs. I don't know
    her, I have never seen her, I have never spoken with her. She
    is the AGRICULTURE of Guatemala, and the president appointed
    her. Now she is sanctioned by the United States. And while you
    were Ambassador, Mr. Robinson, she picked out something called
    the CICIG because, according to the Guatemalans, it was
    politicized.
        We may think that they are a bunch of banana republics, and
    some of them are, and I have called them out on it. But, you
    know, they have the right to name whomever they want to as AG,
    and we don't have the right to say, oh, you are going to name
    Maria but not Rosa. So my question is has she done anything
    right?
        Mr. Robinson. Just a point of clarification. CICIG was
    kicked out after I left Guatemala.
        Mrs. Salazar. No, I understand, but the State Department
    doesn't like her one bit. And she's been sanctioned. So I just
    am--has she done anything right? Why are we persecuting this
    lady?
        Mr. Robinson. She has been sanctioned for undermining
    democratic institutions and the free and fair election--
    attempting to undermine the free and fair election in
    Guatemala.
        Mrs. Salazar. But do you know how many people have done
    that in Latin America have done that, and they have not been
    sanctioned, like the President of Argentina, the President of
    Ecuador? I mean, we have a lot of people who have done that.
    Why her in particular?
        Mr. Hill [presiding]. The gentlelady's time has expired.
    Would you please answer her question in writing, please? And
    the gentlelady's time has expired. The gentleman from Rhode
    Island is recognized for 5 minutes.
        Mr. Amo. Thank you, Mr. Chairman. Thank you, Mr. Camilleri
    and Assistant Secretary Robinson for being here today, and
    Assistant Secretary Nichols, as a point of personal privilege.
    It is always great to see another Rhode Islander and certainly
    a fellow Quaker, Moses Brown Quaker today.
        As we all know and have covered today, the Western
    Hemisphere faces complex and interconnected challenges, whether
    it is regional violence and corruption, climate change and food
    insecurity, or the issue of regional mass migration. Because of
    this, the State Department and USAID have a responsibility to
    engage with partners and allies as we work to increase security
    and stability in our own backyard.
        Full funding of this work has never been more vital. One
    area where the State Department has a proven track record is
    its support of democracies in the Americas that are working to
    fight corruption.
        Returning to the topic of Guatemala, now President Ar?valo
    ran on a platform of anti-corruption during the tumultuous 2023
    election. Yet despite his landslide victory, President Ar?valo
    is now facing serious challenges to his anti-corruption
    policies from the Attorney General, Attorney General Poras.
        Assistant Secretary Nichols, how is the State Department
    supporting Guatemala's anti-corruption efforts and specifically
    how would the funding cuts proposed by Republicans affect your
    ability to continue the work in Guatemala to eradicate public
    corruption?
        Mr. Nichols. Thank you, Mr. Amo. And as our staff said,
    agreed. I do have a hard stop because I had to get on a plane
    and give the commencement address at our alma mater in
    Providence, Rhode Island. But let me just briefly address your
    question.
        We are working with the government of Guatemala on
    comprehensive reforms that will promote private sector
    investment, address lack of development in the highlands of
    Guatemala where most irregular migrants originate from, putting
    in place structures that will prevent corrupt activities within
    the various institutions of the State and strengthening the
    justice and law enforcement sectors.
        The resources that we receive are crucial to that effort.
    The largest sender of irregular migrants in Central America is
    Guatemala, and we have to work with them across a whole host of
    areas to strengthen their capabilities.
        Mr. Amo. Given the time constraints, I will yield back the
    remainder of my time. Thank you.
        Mr. Hill [presiding]. The gentleman yields back. Secretary,
    thank you for your participation. I hope your speech goes well.
    I hope it's memorable. And I hope you will respond promptly to
    the questions the committee submits to you. Thank you, Mr.
    Secretary.
        I recognize myself for 5 minutes of questions. Mr. Nichols'
    questions are going to go to you now, Mr. Robinson. So get
    ready for that and enjoy it.
        Mr. Robinson. I'll answer what I can.
        Mr. Hill [presiding]. Yes, thank you. Eight men from
    Tajikistan with ties to ISIS were arrested over the weekend in
    New York, Philadelphia, and Los Angeles by personnel by ICE in
    addition to reporting claims that six of these eight are
    Russian nationals. Are you familiar with this case?
        Mr. Robinson. I read about it either yesterday or this
    morning.
        Mr. Hill [presiding]. Okay. But you are the Assistant
    Secretary of the Bureau of International Narcotics and Law
    Enforcement Affairs, right?
        Mr. Robinson. That's correct.
        Mr. Hill [presiding]. Okay, well. All eight of these men
    crossed the border through the southern border. Their criminal
    background checks reportedly returned clean when they crossed
    into the U.S. At least two of the men crossed the border in the
    spring of 2023, and one of them used the CBP One App, which the
    Biden Administration created to allow migrants to book
    appointments to claim asylum, but it has been abused to
    expedite mass importation of illegal aliens who come to the
    U.S. for economic or mischievous opportunities rather than a
    credible fear on asylum.
        My Republican colleagues and I have been sounding the alarm
    about this for over a year. Some 300 people on the Terror Watch
    List have crossed the border. We've had 1.7 million known ``got
    aways``. So Director Wray says this is one of the most serious
    concerns he has about the potential for, really potentially
    terror attacks.
        How are the Tajiki and Russian nationals arriving in
    Central and South America to begin with? Do you have any
    information on that? It's clearly connected also to your
    migration job on drug trafficking. So what are your views on
    that?
        Mr. Robinson. Right. Honestly, I would have to defer to my
    colleagues at the Department of Homeland Security.
        Mr. Hill [presiding]. What steps does the State Department
    take to intervene before foreign adversaries like this arrive
    at our southern border and are granted admission into the
    country?
        Mr. Robinson. Well, we work very closely with our partners
    in the region, Mexico, Guatemala, Colombia, Ecuador, Peru.
        Mr. Hill [presiding]. Is it fair to say that the 300 people
    that have been caught on the Terror Watch List, these are the
    ones caught, not the ones not caught, have flown to Mexico more
    than likely from a third country?
        Mr. Robinson. Honestly, I can't answer that.
        Mr. Hill [presiding]. But you can say you are working with
    the country of Mexico and other countries in the region to
    identify potential people that are in drug trafficking or have
    an adversarial interest in the region. So the question is, what
    about that? What is Mexico telling you about people who have
    flown into their country that are on the Terror Watch List----
        Mr. Robinson. Again----
        Mr. Hill [presiding].--or a No Fly List?
        Mr. Robinson. Again, I would have to defer to my colleagues
    at the Department of Homeland Security.
        But what I will say is we have a very close working
    relationship with Mexican authorities on issues such as
    migration, transnational organized crime, and corruption. We
    continue to work very closely with them and we look forward to
    working closely with them with the new President.
        Mr. Hill [presiding]. Well, I'm going to submit my
    questions for the record because I am not going to be able to
    get the answers to my questions. And therefore, I will yield
    the time back.
        The gentleman from California is recognized. The
    gentlewoman from California is recognized. Pardon me.
        Ms. Kamlager-Dove. Thank you, Mr. Chair. And thank you to
    our witnesses for being here today. I do think it is ironic
    that we are discussing the need to counter PRC influence in the
    Western Hemisphere when my Republican colleagues are seeking to
    slash the international affairs budget by a devastating 11
    percent. And these drastic cuts will lead to U.S. absence in
    Latin America and the Caribbean, a region that already gets
    less attention and resources than it deserves.
        I recently came back from a trip to Brazil, and it was
    focused on JAPER. A number of very critical discussions came
    out of that trip.
        So Acting Assistant Administrator Camilleri, I was
    concerned to hear reports of forced conversions and religious
    discrimination against groups that practice African-based
    religions in Brazil. Does USAID view the protection of these
    groups as cultural heritage and tradition as linked to better
    development outcomes?
        Mr. Robinson. Thank you, Congresswoman, for the question.
    Certainly, we would. Our programming in Brazil, as you probably
    heard, is quite limited to the environmental area, some
    cooperation on health as well as on migration management in
    supporting the integration efforts of the Brazilian government.
    So we wouldn't have the programming specifically in that area,
    but I think we could associate ourselves with your concern.
        Ms. Kamlager-Dove. So how do you manage sort of localized
    resources and support and infrastructure across the Western
    Hemisphere? I would imagine that it should not wear a one size
    fits all model. But please share because I have heard that that
    is not happening.
        Mr. Camilleri. This is a priority for us globally.
    Administrator Power has set ambitious targets for localizing
    USAID's effort. As you said, it's not easy, and it can't be one
    size fits all.
        Within the Western Hemisphere, we've actually been at the
    tip of spear in some ways in this effort in Central America
    with an initiative called Central America Local.
        And to give you a sense of the progress we have made in
    Fiscal Year 2020, 3 percent of our funding in Central America
    went directly to local organizations. In the last Fiscal Year
    that was up to 21 percent. And we have a global target of 25
    percent, which we expect to meet in the next year or two in
    Central America.
        We have made, I think, substantial progress in some other
    areas of the region, Paraguay being perhaps the best example.
    In other places, there is more work to do but this is, again, a
    global priority and one that Administrator Power has placed a
    premium on.
        Ms. Kamlager-Dove. I just want to say if the framework
    model shouldn't be the same for each country, the measurables
    and the metrics also should not be the same because there are
    different countries. There is different kinds of collaboration.
    There is different kinds of capacity, et cetera. So please take
    that back.
        Assistant Secretary Robertson--Robinson--apologies. How
    does U.S. contributions to the Amazon fund help counter the
    deforestation caused by criminal actors engaged in illegal
    mining practices?
        Mr. Robinson. Well, I don't know the specifics of the fund.
    But I will say illegal mining is among our concerns in the
    Bureau of International Narcotics and Law Enforcement. We know
    that transnational organized criminals are expanding on what
    they are illegally moving through the atmosphere.
        Illegal mining is among those things. Arms, other
    environmental crimes are of great concern. And for instance, we
    are working very closely both in Ecuador and Colombia to offer
    capacity building and training to their police, specifically on
    the issue of environmental crimes.
        Ms. Kamlager-Dove. And they are also smuggling out--well,
    killing habitation and smuggling out animals that are coming
    into this country that they shouldn't be.
        So there was a question about Mexico obviously or new
    election. So I want to know how you plan to engage with this
    new administration, especially concerning risks around the
    militarization of a governing approach.
        Mr. Robinson. Well, first of all, we are already--we have
    already begun engaging with the incoming administration through
    our embassy and through Assistant Secretary Nichols' office.
        We will continue to engage and raise the issues of security
    as we have with the previous government.
        Ms. Kamlager-Dove. Thank you. I yield back.
        Mr. Hill [presiding]. The gentlewoman's time has expired.
    Now we turn to the chairwoman of the Indo-Pacific Subcommittee,
    Young Kim of California for 5 minutes.
        Mrs. Kim of California. Thank you, Chairman. And I want to
    thank the witnesses for staying late to answer all of our
    questions.
        You know, I recently came back from a CODEL to Taiwan. And
    in all of our engagements, there was a constant theme of the
    Chinese Communist Party ramping up pressure on Taiwan's
    bilateral partners throughout the region and throughout the
    world into switching their diplomatic recommendation to the
    CCP.
        As you know when President Tsai started her term 5 years
    ago, we had--or Taiwan had 22 partners. As President Lai is
    starting his new term, he is working with only 12 partners
    around the world in the region.
        So since 2017, five countries in Latin America have cut
    diplomatic ties with Taiwan and established official diplomatic
    relations with the CCP.
        So can you talk about some of those CCP pressure tactics in
    the region? What are you seeing? Mr. Camilleri, do you want to
    start?
        Mr. Camilleri. Sure. Well, I think we saw an example of
    this just in the last few days with some Guatemalan exports
    being rejected from the PRC. So clearly economic coercion is
    one of the forms of pressure that is being brought on countries
    that are committed to continuing to recognize Taiwan.
        I had the opportunity to accompany Secretary Blinken
    recently to Guatemala for a really productive bilateral
    conversation with President Arevalo and his team. And President
    Arevalo conveyed his commitment, his government's commitment to
    maintain the recognition of Taiwan.
        But I think we see very clearly and very transparently the
    kind of pressure that is being brought against such
    governments. And, you know, we have, I think, some tools that
    we can bring to bear on this in terms of helping our partners.
        Mrs. Kim of California. What are some of the tools that you
    are talking about?
        Mr. Camilleri. Pardon me?
        Mrs. Kim of California. What are some of the tools?
        Mr. Camilleri. Yes, so I think--just to name a couple,
    certainly in the procurement space where we have seen the PRC
    very focused on major infrastructure for example, often using
    corruption, often not respecting local environmental and labor
    standards. Oftentimes with pretty shoddy results in terms of
    the infrastructure that's built. You know, bringing awareness
    to what that track record looks like, building international
    standards into procurement processes.
        We have done this very successfully in the Dominican
    Republic for example, in the Port of Manzanillo by working with
    the Army Corps of Engineers to build those international
    standards into procurement processes so that U.S. consortia
    were able to win to win contracts where PRC companies had been
    well-placed to do so.
        That is one of the ways in which we can buildup with
    awareness and provide alternatives to countries that want to
    partner with us as the preferred partner. But we need to put
    those alternative options----
        Mrs. Kim of California. Absolutely.
        Mr. Camilleri [continuing]. On the table for them.
        Mrs. Kim of California. Our words need to follow with our
    actions, too. So thank you for that.
        You know, I also want to ask about the CCP, which is making
    large scale investments in cultural programming throughout the
    hemispheres. For example, there are over 40 CCP Confucius
    Institutes throughout Latin America. And CCP and Latin American
    universities are participating in joint research and exchange
    programs.
        So can you talk about USAID's work in programming to
    counter such soft power influence in the region?
        Mr. Camilleri. Sure. Hey, look, I think broadly speaking,
    our affirmative development model is our competitive advantage
    in the region. We are not saddling countries with debt. We are
    not looking to bring in our own workers.
        We are generally partnering in a transparent and rules-
    based manner looking to move them ultimately from aid to trade.
    We want our partners to prosper. We don't want them to be
    beholden to us and saddled with predatory lending. We don't
    want our partners to----
        Mrs. Kim of California. Let me ask one question to
    Assistant Secretary Robinson because we know that CCP plays a
    major role in the global fentanyl supply chain. And Chinese
    brokers intentionally sell precursor chemicals to Mexican
    cartels who then produce and smuggle fentanyl into the United
    States.
        So can you talk about how the State Department is engaging
    our allies and partners in the region to ensure they take CCP
    drug trafficking very seriously?
        Mr. Robinson. Absolutely. Thank you for the question.
        Mrs. Kim of California. And also maybe you can talk about
    the so-called fentanyl working group that the U.S. and China
    established late last year in November.
        Mr. Robinson. Absolutely. I will be very quick. I have had
    four opportunities to speak directly with my PRC counterparts,
    twice in Beijing, once in Vienna.
        The Global Coalition Against Synthetic Drugs is our broader
    effort to engage with countries around the world on this issue.
    Over 155 countries, over 15 international organizations are
    involved.
        Mr. Hill [presiding]. The gentlewoman's time has expired.
    Please if you would like to finish your answer in writing. That
    would be helpful to the gentlewoman from California. Ms. Titus
    from Nevada is recognized for 5 minutes.
        Ms. Titus. Thank you, Mr. Chairman. Since you are talking
    about the influence of China and our competition with China, I
    would ask you that doesn't our policy, if it follows President
    Trump's maximum pressure like in Cuba drive some of these
    countries into the arms of China as opposed to our wanting to
    do more foreign aid or more investment or a more cooperative
    approach work better to compete with China than to just cut
    things off and push them in that direction?
        Mr. Camilleri. Well, I am not a China expert, but we do
    deal with China a lot, compete with China a lot around the
    world. I would say our competitive advantage, as mentioned by
    my colleague, Michael, is that what we do around the world with
    our partners is transparent and above board, and doesn't
    involve predatory lending practices.
        And so as we deal with our partners around the world and
    expose them to what we are offering and how we are offering it
    by partnering with them as opposed to China, we think that we
    have a better product to sell.
        Ms. Titus. I think so too. But you can't just look at this
    from an economic standpoint. There is a lot of politics
    involved in this. And depending on the administration, it
    depends on how much you are actually engaged in the process
    that you described. But, Okay, I appreciate that.
        Earlier in the hearing, my Republican colleague from
    Florida once again got on his rant in attacking the LGBTQ
    community. This is nothing new. The Republicans have been
    trying to marginalize this community for every turn of this
    Congress. Yet we are the beacon for human rights here in the
    United States, and we ought to push for that. Our foreign
    policy should reflect that. It should reflect respect for other
    communities, protect human rights around the world.
        Mr. Camilleri, would you address why you think it might be
    a better way to do policy to include all these communities?
    There was a little chance to discuss it earlier. But I don't
    think it came out very strongly.
        Mr. Camilleri. Yes, I think these things are actually
    linked, which is to say part of our competitive advantage over
    countries like the PRC is precisely that we bring American
    values to bear in the way that we operate.
        And fundamentals of those American values is a belief in
    democracy and a belief in fundamental human rights and, of
    course, LGBTQ+ rights are human rights.
        Ms. Titus. Well, we've seen democracy backsliding in a lot
    of parts of the world and a lot of legislation being passed
    that attacks this community kind of in particular. How does the
    State Department try to counter that or deal with those kind of
    policies in countries where we want to have better relations?
        Mr. Camilleri. I think the question may have been for the
    State Department so I will let the Assistant Secretary take it
    away.
        And from USAID standpoint, we are in many places supporting
    advocates to engage their governments on behalf of the quality
    and dignity for all populations as well as using our own kind
    of diplomatic relationships to advocate directly for, again,
    respect for universal human rights.
        Ms. Titus. You know, I serve on the House democracy
    partnership. Guatemala is one of the countries that we have a
    partnership with. Peru, we are working on. And so I have seen
    you all's work in supporting some NGO's, supporting the
    drafting of some legislation. Could you address that? Is that
    not a way to also deal with this in a more specific kind of
    answer?
        Mr. Camilleri. Yes, that's precisely--I think,
    Congresswoman, that is precisely the kind of work that in some
    places we are able to partner with civil society to do, which
    is to engage, for example, with their legislatures to--or with
    their court systems. And we have seen actually some encouraging
    decisions from courts in the region that are more protective of
    fundamental equality.
        And so we are able to--we can partner with NGO's with civil
    society organizations, some cases directly with governments
    that are committed to expanding protections for the LGBTQ
    community, which in many parts of Latin America and the
    Caribbean unfortunately subject not just to discrimination but
    significant violence in order to provide those protections.
        Mr. Robinson. I would just add that the same goes for
    security, which is where my perspective is. We are working to
    make sure that police departments for instance, both at the
    Federal and State level, are protecting all members of society,
    marginalized communities, indigenous communities, LBGTQ
    communities as well.
        Ms. Titus. Thank you very much. I yield back.
        Mr. Issa [presiding]. Thank you. Secretary Robinson, I will
    ask you first because I know you are very kindly staying over
    your departure time. And I appreciate that.
        Obviously, there has been a rise in narcotics coming into
    this country. But there is also a rise in narcotics affecting
    countries in the Western Hemisphere. Can you give me your best
    prognosis on whether it is Mexico or the return of drugs to
    Colombia and so on, what the likely effect is if we cannot
    reverse that trend in those countries of drugs often intended
    for us, but they also get consumed in the countries in which
    they pass through.
        Mr. Robinson. No, absolutely it is a threat. And I would
    say frankly the Office of National Drug Control Policy has
    better statistics and more expertise. But both of those
    countries have reached to ONDCP about the rise in local usage
    of narcotics and synthetic drugs. And this is happening around
    the world. We get it from our partners in Europe and Asia as
    well.
        Mr. Issa [presiding]. So I just want to ask a leading
    question if you can indulge me. Would you say from your
    experience and from the experience of the State Department,
    that one of the kindest things we can do is have a strict
    enforcement policy both here at our border and in cooperation
    with these countries because if we don't, we are not just
    causing drugs to come into the United States, but we are, in
    fact, affecting this very stability of these countries, most of
    them to our south?
        Mr. Robinson. Well, No. 1, I think it is incumbent upon
    every country to secure their borders. But what we want to do
    is strike a balance, right? We want to make sure that we are
    stopping the bad things that are coming in but allowing trade,
    allowing the free flow of investment.
        And that is a little tricky. That is why I think it is good
    that we work with the Department of Homeland Security and
    Department of Justice and have an interagency team that is
    looking at all of the different aspects of this so that we can
    address this issue.
        Mr. Issa [presiding]. Well, I will just share with you. I
    have the busiest land border in the world there in San Diego.
    And if it were not for the incredible amount of drugs coming
    over that land port, if it were not for all the procedures and
    the delays that are caused by that, even with the most
    effective and efficient modern technology, some of which are
    sniffing dogs, but we would, in fact, be able to run that port
    with a third or half as many actual lanes. There is no question
    that drugs, and to a certain extent human smuggling, make a
    huge difference in our effectiveness.
        Thank you. And I may have more questions for the record.
    But I wanted to thank you for remaining.
        Administrator, I want to ask you sort of--you have been on
    the job--I know you are acting--but you have been on the job
    and in the area long enough to see the effects of a number of
    administrations in years of USAID.
        Under the Trump Administration, there was an attempt to
    dramatically consolidate some portions of our foreign aid and
    investment. Some was consolidated. Some wasn't. I happened to
    be during that time at TDA. So it was one of the small agencies
    that wasn't.
        From your perspective, are you better off with a multitude
    of small agencies and agencies that sometimes even compete,
    sometimes coordinate, and that would include, of course, the
    EXIM Bank and others, Millennium Challenge, or in fact should
    this committee continue to look at a direction toward competing
    against China and other ``aid producers`` that aren't always
    aid deliverers, to have a more, if you will, coordinated
    attempt?
        And I know that is a broad question, but it is one that I
    think we need to look at that we created the Millennium
    Challenge. We have created each of those agencies. This
    committee was responsible for making TDA an independent agency
    back in the 90's. We did it all for good reason. But is that
    still clearly an impediment when you have to run to Commerce
    and run to a lot of places to try to put together your
    programs?
        Mr. Camilleri. Thank you, Congressman. That is a big
    question, maybe slightly above my pay grade. But I appreciate--
    --
        Mr. Issa [presiding]. You don't have to comment on the DOD
    part of it. I will leave that part alone at least.
        Mr. Camilleri. All right. It will keep me out of trouble. I
    think what I would say is you used the word coordination. And
    that ultimately is critical because what you have provided to
    us is across the interagency with a broad set of tools and
    maybe the most recent one being a pretty powerful one in the
    DOC.
        We have seen that when we bring that full toolkit to bear,
    we can be very effective. Ecuador has come up here today as a
    place that is facing some really significant challenges that
    has both the prior government and this one the strongest in
    partnering with us to meet those challenges.
        DOC has actually responded in a big way in Ecuador. I think
    it is per capita the biggest market now for the development of
    finance corporations.
        So that in combination with what USAID is doing, what INL
    is doing, I think is a good example of when we bring those
    various tools to bear on a specific challenge and opportunity
    in terms of that bilateral relationship how we can be
    effective.
        But I think to your point, the challenge for us in the
    administration is making sure that we are coordinating among
    those various tools.
        Mr. Issa [presiding]. So I am going to close with just one
    question for you. Not to say that we need to create yet another
    hat somewhere in some agency or above an agency, but should
    there be a single point of contact reporting, if you will, to
    the President for coordinating, for competing because some of
    your activities--obviously you are not in the State Department
    even though you partner with them. You are not in Treasury,
    even though you partner with them. You are not in Commerce,
    even though--and the list goes on. Is in fact that sort of
    question of who above your pay grade could ensure that that
    cooperation doesn't just occur sometimes but occurs all the
    time?
        Mr. Camilleri. I think I would say, and the Assistant
    Secretary may have reflections on this as well based on his
    tenure, you know, we see each other a lot.
        Mr. Issa [presiding]. I know you try. I am not for a moment
    doubting the effort. I just was asking the question. And maybe
    for the Assistant Secretary that would be a good question, can
    we do it better?
        Mr. Robinson. Well, I would absolutely agree with you that
    we should always be asking the question, can we do it better?
        It is, again, tricky, right because all of our authorities
    are different and the way we get money is different. That is
    why accordingly----
        Mr. Issa [presiding]. Even the color of how you can spend
    it is different.
        Mr. Robinson. Exactly. And so that is why the coordinating
    responsibility of the NEC is so important, making sure that we
    all get together to hash these things out.
        As Michael said, we spent a lot of time together anyway.
    But could we do it better and more effectively? Absolutely.
        Mr. Issa [presiding]. Okay. Well, in closing, if you
    wouldn't mind opining with further thoughts either without
    questions or I will be happy to add additional questions.
        But it is an area where I think for the long term good of
    this committee, we need to look and say can we provide ability
    for you to do it better, which might include changing, if you
    will, the color of money the authorities, coordination, and so
    on. I am not on the Armed Services Committee, but I hear from
    them often their strengths and weaknesses because they can
    spend money different than you.
        With that, I want to thank all of the witnesses for their
    valuable testimony. Members will have their questions
    submitted. We would ask that you be willing within--if you
    receive them within five legislative days to respond promptly.
        Pursuant to the committee rules, all members will have 5
    days to submit statements, questions and extraneous material
    for the record, subject to the length limitations. Without
    objection, that is ordered. And we stand adjourned.
        [Whereupon, at 1:04 p.m., the committee was adjourned.]

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