Dominican Republic: Background and U.S. Relations

Clare Ribando Seelke
Specialist in Latin American Affairs

The Dominican Republic, a country of roughly 10.1 million people that shares the Caribbean island of Hispaniola with Haiti, is a close U.S. trade partner and political ally in Latin America. The United States is the Dominican Republic’s main trading partner, with two-way trade totaling more than $11.5 billion in 2011. In addition to trade, U.S. interest in the Dominican Republic has recently focused on anti-drug cooperation and governance/human rights issues, as well as the country’s role in helping resolve regional conflicts. U.S.-Dominican cooperation on bilateral and regional issues intensified during Leonel Fernández’s last two terms in office (2004-2008 and 2008-2012), and is expected to continue during the Danilo Medina Administration.

Led by former President Fernández, the center-left Dominican Liberation Party (PLD) has solidified its dominance over Dominican politics. In May 2010, the PLD captured two-thirds of the seats in the Dominican Congress; the party will remain in control of the legislature through May 2016. The PLD prevailed again in the May 20, 2012 presidential election, as its candidate, Danilo Medina, soundly defeated former president Hipólito Mejía (2000-2004) of the populist Dominican Revolutionary Party (PRD). Medina benefitted from outgoing President Fernández’s continued popularity and from infighting within the PRD.

Inaugurated on August 16, 2012, President Danilo Medina, a former congressmen and minister of the presidency, is seeking to build upon his predecessors’ legacy while resolving lingering challenges the country is facing related to its fiscal situation, energy sector, and education system. Analysts are expecting more continuity than change from the new government, particularly since Fernández’s wife, Margarita Cedeño, is Medina’s vice president, and several top Fernández administration officials have retained their cabinet positions. Medina will benefit from his party’s congressional majority, but his room to maneuver may be limited by the country’s budget problems and need to secure support from the International Monetary Fund.

In recent years, congressional interest in the Dominican Republic has focused on trade, security, and human rights issues. Trade and investment flows have expanded since the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) entered into force for the Dominican Republic on March 1, 2007. U.S. trade capacity building assistance has also reportedly helped boost Dominican competitiveness in some sectors. The United States is one of the largest bilateral donors to the Dominican Republic; in FY2012, assistance totaled some $30.1 million. The Dominican Republic is also receiving U.S. aid through the Caribbean Basin Security Initiative (CBSI), a regional security initiative for which Congress appropriated $203 million from FY2010-FY2012. For FY2013, the Obama Administration requested $29.8 million for the Dominican Republic and $59 million for the overall CBSI program, with the Dominican Republic slated to receive a portion. Human rights issues, including the treatment of Haitians in the Dominican Republic and trafficking in persons, have also been of interest to Congress.

This report provides background information on political and economic conditions in the Dominican Republic, as well as an overview of some of the key issues in U.S.-Dominican relations. For additional information, see CRS Report R42468, The Dominican Republic-Central America-United States Free Trade Agreement (CAFTA DR): Developments in Trade and Investment, by J. F. Hornbeck.


Date of Report: November 6, 2012
Number of Pages: 19
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Dominican Republic: Background and U.S. Relations

Clare Ribando Seelke
Specialist in Latin American Affairs

The Dominican Republic, a country of roughly 10.1 million people that shares the Caribbean island of Hispaniola with Haiti, is a close U.S. trade partner and political ally in Latin America. The United States is the Dominican Republic’s main trading partner, with two-way trade totaling more than $11.5 billion in 2011. In addition to trade, U.S. interest in the Dominican Republic has recently focused on anti-drug cooperation and governance/human rights issues, as well as the country’s role in helping resolve regional conflicts. U.S.-Dominican cooperation on bilateral and regional issues intensified during Leonel Fernández’s last two terms in office (2004-2008 and 2008-2012), and is expected to continue during the Danilo Medina Administration.

Led by former President Fernández, the center-left Dominican Liberation Party (PLD) has solidified its dominance over Dominican politics. In May 2010, the PLD captured two-thirds of the seats in the Dominican Congress; the party will remain in control of the legislature through May 2016. The PLD prevailed again in the May 20, 2012 presidential election, as its candidate, Danilo Medina, soundly defeated former president Hipólito Mejía (2000-2004) of the populist Dominican Revolutionary Party (PRD). Medina benefitted from outgoing President Fernández’s continued popularity and from infighting within the PRD.

Inaugurated on August 16, 2012, President Danilo Medina, a former congressmen and minister of the presidency, is seeking to build upon his predecessors’ legacy while resolving lingering challenges the country is facing related to its fiscal situation, energy sector, and education system. Analysts are expecting more continuity than change from the new government, particularly since Fernández’s wife, Margarita Cedeño, is Medina’s vice president, and several top Fernández administration officials have retained their cabinet positions. Medina will benefit from his party’s congressional majority, but his room to maneuver may be limited by the country’s budget problems and need to secure support from the International Monetary Fund.

In recent years, congressional interest in the Dominican Republic has focused on trade, security, and human rights issues. Trade and investment flows have expanded since the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) entered into force for the Dominican Republic on March 1, 2007. U.S. trade capacity building assistance has also reportedly helped boost Dominican competitiveness in some sectors. The United States is one of the largest bilateral donors to the Dominican Republic; in FY2012, assistance totaled some $30.1 million. The Dominican Republic is also receiving U.S. aid through the Caribbean Basin Security Initiative (CBSI), a regional security initiative for which Congress appropriated $203 million from FY2010-FY2012. For FY2013, the Obama Administration requested $29.8 million for the Dominican Republic and $59 million for the overall CBSI program, with the Dominican Republic slated to receive a portion. Human rights issues, including the treatment of Haitians in the Dominican Republic and trafficking in persons, have also been of interest to Congress.

This report provides background information on political and economic conditions in the Dominican Republic, as well as an overview of some of the key issues in U.S.-Dominican relations. For additional information, see: CRS Report R42468, The Dominican Republic-Central America-United States Free Trade Agreement (CAFTA DR): Developments in Trade and Investment, by J. F. Hornbeck.


Date of Report: October 19, 2012
Number of Pages: 19
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Cuba: Issues for the 112th Congress

Mark P. Sullivan
Specialist in Latin American Affairs

Cuba remains a one-party communist state with a poor record on human rights. The country’s political succession in 2006 from the long-ruling Fidel Castro to his brother Raúl was characterized by a remarkable degree of stability. The government of Raúl Castro has implemented limited economic policy changes, including an expansion of self-employment. A party congress held in April 2011 laid out numerous economic goals that, if implemented, could significantly alter Cuba’s state-dominated economic model. Few observers expect the government to ease its tight control over the political system. The government has reduced the number of political prisoners over the past several years, including the release of over 125 since 2010 after talks with the Catholic Church, but short-term detentions and harassment have increased significantly. 

U.S. Policy 

Since the early 1960s, U.S. policy has consisted largely of isolating Cuba through economic sanctions. A second policy component has consisted of support measures for the Cuban people, including U.S.-sponsored broadcasting and support for human rights activists. In light of Fidel Castro’s departure as head of government, many observers called for a reexamination of policy. Two broad approaches have been at the center of debate. The first is to maintain the dual-track policy of isolating the Cuban government while providing support to the Cuban people. The second is aimed at changing attitudes in the Cuban government and society through increased engagement. Since taking office, the Obama Administration has lifted restrictions on family travel and remittances, moved to reengage Cuba on several bilateral issues, and eased restrictions on other types of purposeful travel and remittances. The Administration has criticized Cuba’s repression of dissidents, but has welcomed the release of political prisoners. The Administration has continued to call for the release of U.S. government subcontractor Alan Gross, detained in 2009, and sentenced to 15 years in prison in March 2011. 

Legislative Action 

Strong interest on Cuba is continuing in the 112th Congress. In the first session, an attempt to roll back the Administration’s easing of restrictions on travel and remittances was unsuccessful. The provision had been included in the House Appropriations Committee version of the FY2012 Financial Services appropriations bill, H.R. 2434, but was not included in the FY2012 “megabus” appropriations measure (H.R. 2055, P.L. 112-74). Both H.R. 2434 and the Senate version of the bill, S. 1573, also would have continued to clarify the definition of “payment of cash in advance” for U.S. agricultural exports to Cuba during FY2012, but the provision was not included in the “megabus” measure.

In the second session, the Senate approved: S.Res. 366 on February 1, 2012, condemning the Cuban government for the death of democracy activist Wilman Villar Mendoza; and S.Res. 525 on July 31, 2012, honoring prominent Cuban dissident Oswaldo Payá who was killed in a car accident. With regard to Cuba democracy funding, the Senate Appropriations Committee version of the FY2013 foreign aid appropriations measure, S. 3241, would provide $15 million as the Administration requested, while the House Appropriations Committee version of the bill, H.R. 5857, would provide $20 million. With regard to Cuba broadcasting, S. 3241 would provide $23.4 million ($194,000 less than the Administration’s request) while H.R. 5857 would provide $28.062 million ($4.468 million more than the request). Since Congress did not complete action on FY2013 appropriations before the beginning of the fiscal year, it approved a continuing appropriations resolution in September 2012 (H.J.Res. 117, P.L. 112-175) that continues FY2013 funding through March 27, 2013, at the same rate for projects and activities in FY2012, plus an across-the-board increase of 0.612%.

Among other initiatives, two would increase sanctions: H.R. 2583 would roll back the easing of travel and remittance restrictions, and H.R. 2831 would attempt to curb frequent travel to Cuba by Cubans who have recently emigrated to the United States. Several initiatives would ease sanctions: H.R. 255 and H.R. 1887 (overall sanctions); H.R. 833 and H.R. 1888 (agricultural exports); and H.R. 380 and H.R. 1886 (travel). Two initiatives, S. 603 and H.R. 1166, would modify a trademark sanction. Eight bills, H.R. 372, S. 405, H.R. 2047, H.R. 3393, H.R. 4310, H.R. 4135, H.R. 6067, and S. 1836, would take different approaches toward Cuba’s offshore oil development. Two bills, S. 476 and H.R. 1317, would discontinue Radio and TV Martí broadcasts.


Date of Report: October 26, 2012
Number of Pages: 95
Order Number: R41617
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Peru in Brief: Political and Economic Conditions and Relations with the United States

Maureen Taft-Morales
Specialist in Latin American Affairs

This report provides an overview of Peru’s government and economy and a discussion of issues in relations between the United States and Peru.

Peru and the United States have a strong and cooperative relationship. Several issues in U.S.-Peru relations are likely to be considered in decisions by Congress and the Administration on future aid to and cooperation with Peru. The United States supports the strengthening of Peru’s democratic institutions, its respect for human rights, environmental protection, and counternarcotics efforts. A dominant theme in bilateral relations is the effort to stem the flow of illegal drugs, mostly cocaine, between the two countries. In the economic realm, the United States supports bilateral trade relations and Peru’s further integration into the world economy. The United States is Peru’s top trading partner. The U.S.-Peru Trade Promotion Agreement (PTPA) went into effect February 1, 2009. The Obama Administration requested $74 million in foreign assistance for Peru for FY2013 to advance these objectives.

Ollanta Humala, of the left-wing Gana Peru, was sworn in as Peru’s president in July 2011 for a five-year term. Gana Peru won 47 seats out of the 130 seats in the unicameral Congress, requiring Humala to rely on political alliances with lesser parties in order to pass legislation. Deep social divides over how to pursue development continue to undercut political stability. The more radical elements of Humala’s original support base and his party urge the pursuit of more leftist policies, such as nationalization of strategic industries, which Humala called for during the election campaign. Forces that resist more radical policies include a strong business sector; a conservative, wealthy elite; a centrist middle class; and a divided Congress. Social unrest, especially over exploitation of natural resources, is likely to remain a challenge for the Humala government.

Since 2001 Peru’s economy has been stronger than all others in the region, with its growth due mostly to the export of natural resources. High economic growth, along with social programs, has helped to lower Peru’s overall poverty rates. Nonetheless, in some jungle, mountain, and rural areas of the country, over 60% of the population continue to live in poverty. The income distribution gap remains quite large as well. This economic disparity has contributed to rising social unrest. President Humala submitted, and the legislature approved, a bill increasing royalties mining companies must pay. The government estimates the royalties will generate about US$1 billion a year, which it will use to finance social development programs intended to narrow both the social divide and the economic distribution gap.


Date of Report: October 18, 2012
Number of Pages: 16
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Venezuela: Issues for Congress

Mark P. Sullivan
Specialist in Latin American Affairs

Under the rule of populist President Hugo Chávez, first elected in 1998, Venezuela has undergone enormous political changes, with a new constitution and unicameral legislature, and even a new name for the country, the Bolivarian Republic of Venezuela. Human rights organizations have expressed concerns about the deterioration of democratic institutions and threats to freedom of expression under the Chávez government. President Chávez won reelection to another six-year term on October 7, 2012, by a margin of 11%, capturing about 55% of the vote compared to 44% for opposition candidate Henrique Capriles. While Chávez’s continued popularity and use of state resources helped his reelection, high rates of crime, inflation, and other economic problems eroded his support somewhat as did an energetic campaign run by Capriles. Looking ahead, Venezuela is scheduled to hold state elections on December 16, 2012. Henrique Capriles will run for reelection as governor of the state of Miranda against former Vice President Elías Jaua. At this juncture, Chávez appears to have bounced back from two bouts of an undisclosed form of cancer, although his health status raises questions about Venezuela’s political future. 

U.S. Policy 

The United States traditionally has had close relations with Venezuela, a major supplier of foreign oil, but there have been friction and tensions in relations under the Chávez government. Over the years, U.S. officials have expressed concerns about human rights, Venezuela’s military arms purchases, its relations with Cuba and Iran, and its efforts to export its brand of populism to other Latin American countries. Declining cooperation on anti-drug and anti-terrorism efforts has been a major concern. The United States has imposed sanctions: on several Venezuelan government and military officials for allegedly helping the Revolutionary Armed Forces of Colombia (FARC) with drug and weapons trafficking; on three Venezuelan companies for providing support to Iran; and on several Venezuelan individuals for providing support to Hezbollah. Despite tensions in relations, the Obama Administration remains committed to seeking constructive engagement with Venezuela, focusing on such areas as anti-drug and counter-terrorism efforts. In the aftermath of President Chávez’s reelection, the White House, while acknowledging differences with President Chávez, congratulated the Venezuelan people on the high level of participation and the relatively peaceful election process. 

Legislative Initiatives 

As in past years, there have been concerns in the 112th Congress regarding the state of Venezuela’s democracy and human rights situation and its deepening relations with Iran. H.R. 3783, approved by the House on September 19, 2012, would require the Administration to conduct an assessment and present “a strategy to address Iran’s growing hostile presence and activity in the Western Hemisphere.” H.R. 2542, approved by the House Subcommittee on the Western Hemisphere December 15, 2011, would withhold some assistance to the Organization of American States unless that body took action to invoke the Inter-American Democratic Charter regarding the status of democracy in Venezuela. H.R. 2583, approved by the House Committee on Foreign Affairs July 19, 2011, includes a provision that would prohibit aid to the government of Venezuela. Other legislative initiatives include H.Res. 247, which would call on the Secretary of State to designate Venezuela as a state sponsor of terrorism; and H.R. 6067, which includes a section imposing restrictions on U.S. nuclear cooperation with any country assisting the nuclear program of Venezuela or Cuba or transferring advanced conventional weapons or missiles to Venezuela or Cuba.

In action on FY2013 foreign aid appropriations, the report to the House Appropriations Committee bill, H.R. 5857 (H.Rept. 112-494, reported May 25, 2012), directs that $5 million in Economic Support Funds be provided for democracy programs in Venezuela, the same amount appropriated in FY2012, and $2 million more than requested by the Administration. In contrast, the report to the Senate Appropriations Committee bill, S. 3241 (S.Rept. 112-172, reported May 24, 2012), recommends $3 million for democracy programs in Venezuela to be administered by the National Endowment for Democracy.


Date of Report: October 16, 2012
Number of Pages: 63
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