Iran, Russia, China beat a path to Latin America's door

Geopolitical threat to US?

Secretary of Defense Gates sought to play down fears on a trip that included Peru, Colombia, and Barbados. Gates said Iran's friendships in the region are only for show. "There is an element of distracting their own populations from the difficulties that they have by … trying to strut around the world stage," he was quoted as saying on the US Defense Department website.

But if such alliances in Latin America don't represent a geopolitical threat to the US, they may highlight a lost opportunity for US business. "Domestic politics, historical baggage, and sensitivities between Latin America and the US really stand in the way of the US taking advantage of opportunities in the region," says Michael Shifter, the president of the Inter-American Dialogue in Washington. As the US is stuck on issues such as energy, immigration, and trade, "China and Russia are completely unburdened by domestic political constraints."

Still, if the US is missing out, is all the attention good for Latin America?

Economic growth engine

Countries are buying arms to modernize armies at the right price from Russia, but some worry about the destabilizing effect of an "arms race" in Latin America. In terms of markets, says Christopher Sabatini, editor in chief of Amer­icas Quarterly in New York, Latin America's partnerships around the globe kept it afloat during the recent economic crisis.

"The attention is good because it provides an engine of economic growth," he says. The region overall is expected to grow by 4 percent this year, he says, and "a large part of that has to do with China's rebound."

But Mr. Sabatini and others say questions are emerging over whether this is simply the economic imperialism – exploiting nations for cheap commodities – that the US was condemned for in the last century. "China, in the name of being a leader of the third-world movement, is saying, 'Hey, we're helping you out by buying your commodities,' and then they are selling back ever-higher-value manufactured goods," says Mr. Ellis. It boosts economies in the short term, but keeps them vulnerable should commodity prices drop.

Rodrigo Maciel, executive secretary of the Brazil-China Business Council, says that Brazil must wake up to the idea that China has a massive internal market that is, so far, not being tapped.

"We only sell primary goods, but that is because Brazil doesn't have a strategy for China; we don't see it as a consumer market," Mr. Maciel says. "We need to learn more."

Related stories:

• In Brazil, Hu Jintao aims for bigger piece of Latin America trade
• Why Brazil signed a military agreement with the US
• France's Sarkozy wins trade deal in Brazil, support at home

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