How did the Great Depression impact US foreign policy in the Americas?

The Great Depression led to a shift in US foreign policy towards a more cooperative and non-interventionist approach in the Americas.

The Great Depression, which began in 1929, had a profound impact on US foreign policy, particularly in the Americas. Prior to the Depression, the US had pursued a policy of interventionism in Latin America, often intervening in the affairs of its southern neighbours to protect its economic and strategic interests. However, the economic crisis brought about by the Depression led to a reassessment of this approach.

The economic hardship of the Depression made it difficult for the US to maintain its previous level of involvement in Latin America. The US was forced to focus on its domestic problems, leading to a reduction in its overseas commitments. This shift was formalised in the Good Neighbour Policy, announced by President Franklin D. Roosevelt in 1933. This policy marked a significant departure from previous US foreign policy. It pledged that the US would not intervene in the internal or external affairs of another country, marking a move towards non-interventionism and respect for the sovereignty of other nations.

The Good Neighbour Policy also sought to improve relations with Latin American countries through increased economic cooperation. The US aimed to stimulate its own economy and those of its neighbours through reciprocal trade agreements. This was a stark contrast to the previous policy of imposing tariffs and other trade barriers. The Reciprocal Trade Agreements Act of 1934 allowed the president to negotiate lower tariffs with other countries, leading to an increase in trade between the US and Latin America.

The Depression also led to a change in the US's approach to debt repayment. Many Latin American countries were heavily indebted to the US, and the economic crisis made it difficult for them to meet their repayment obligations. The US responded by easing the repayment terms and even cancelling some debts, a move that was welcomed by its southern neighbours.

In conclusion, the Great Depression had a significant impact on US foreign policy in the Americas. It led to a shift away from interventionism towards a policy of non-intervention and increased economic cooperation. This new approach was encapsulated in the Good Neighbour Policy, which sought to improve relations with Latin American countries and stimulate economic recovery through reciprocal trade agreements and debt relief.