WASHINGTON, D.C. — In a rare show of bipartisan cooperation, Senators Dave McCormick (R-PA) and Tim Kaine (D-VA) introduced legislation Thursday aimed at strengthening U.S. leadership at the Inter-American Development Bank (IDB) while curbing China’s growing influence in Latin America and the Caribbean.
The bill, titled the Strengthening United States Leadership at the Inter-American Development Bank Act, seeks to reinforce economic partnerships in the Western Hemisphere, boost procurement opportunities for American companies, and create more competitive alternatives to Chinese investment.
“We must reassert America’s leadership role in the Western Hemisphere and protect the homeland from the Chinese Communist Party’s efforts to expand its influence in our backyard,” said Senator McCormick. Senator Kaine added that the United States “must not cede our leadership on the international stage, especially to countries like China.”
Founded in 1959, the IDB is the primary multilateral lender in Latin America and the Caribbean, with the U.S. as its largest shareholder. In 2023 alone, the IDB disbursed $24.3 billion to support public and private sector development across the region.
Despite the PRC holding just 0.004% of shares in the IDB’s public-sector operations, Chinese firms have consistently outperformed their U.S. counterparts in securing IDB contracts. Chinese companies have averaged 3% of IDB public procurement over the last 15 years, while U.S. firms secured just 1%—a trend the senators say undermines U.S. economic and strategic interests.
Notably, Chinese firms have secured high-value contracts such as a $4 billion deal to build the Bogotá metro system in Colombia. Meanwhile, the PRC holds nearly 5% voting power in IDB Invest, the Bank’s private sector arm, compared to 15% for the U.S.
The proposed legislation instructs the U.S. Executive Director at the IDB to leverage America’s voting power to reduce Chinese influence and oppose any action that would increase the PRC’s voting share. It also calls for enhanced capacity-building efforts to help U.S. and allied companies compete more effectively for IDB contracts.
Additional provisions would encourage procurement policies that prioritize transparency, integrity, and value for money—rather than simply the lowest bid—and promote greater coordination between the IDB and the U.S. International Development Finance Corporation.
By addressing procurement disparities and reinforcing American influence at the IDB, lawmakers aim to support job creation in the U.S. while reinforcing democratic and economic partnerships throughout the Americas.
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