US pledges billions in aid to develop Central America, curb migration

MEXICO CITY (Reuters) – The United States is committing billions of dollars toward development in Central America and Mexico, as part of a plan to strengthen economic growth in the region and curb illegal immigration, the US and Mexican governments said on Tuesday.

Mexican President Andres Manuel Lopez Obrador has been seeking to persuade US counterpart Donald Trump to work with Mexico to develop Honduras, El Salvador and Guatemala, as well as Mexico’s impoverished south, to stem the flow of migrants.

But Trump’s threats to slash aid to the region if illegal immigration were not contained have persistently raised doubts about how much the United States would provide. Much of the new aid pledged on Tuesday will depend on the viability of the projects.

Mexican Foreign Minister Marcelo Ebrard said the United States is committing $5.8 billion toward development in Central America. It is also increasing public and private investment in Mexico by $4.8 billion via the Overseas Private Investment Corporation (OPIC), $2 billion of which is set to go to the south.

Speaking as the US State Department issued a statement setting out the commitments, Ebrard said that the Mexican government had also pledged to find $25 billion to develop the south of the country during the next five years.

The State Department said the United States and Mexico would organize a business summit in the first quarter of 2019 to create investment opportunities focusing on southern Mexico and the three Central American countries.