US agrees to work with Mexico on Central American “Marshall Plan” to curb migration

The Secretariat of Foreign Affairs (SRE) and the United States Department of State have issued a joint statement which outlines the US and Mexico’s monetary contributions to the regional economic development plan that was initiated by newly the inaugurated Mexican President, Andrés López Obrador. Mexico will invest US$25bn in its southern states over the next five years while the United States will contribute US$5.8bn to the Northern Triangle (Guatemala, Honduras, El Salvador) and US$4.8bn to Mexico for a total contribution of US$10.6bn. The contribution promised by the US is far from the US$25bn that President Obrador had been vying for and most of the US funding will be old funding reallocated from existing aid programs. According to the Washington Post, only approximately US$4.5bn will be new funding and will be disbursed in loans, loan guarantees and related services through the Overseas Private Investment Corporation, a US federal agency.

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