Bolivian President Evo Morales has ordered USAID out of the country, marking the latest confrontation between Washington and left-wing governments in Latin America.

Morales said he was kicking out the U.S. Agency for International Development (USAID) as a “protest” after U.S. Secretary of State John Kerry recently referred to Latin America as the U.S.’s “backyard” at a U.S. Senate committee hearing on April 18.

When pressed by a senator about Washington’s influence in Latin America, Kerry expressed regret that U.S. aid to the region is falling victim to budget cuts. “I don’t disagree with you about the need to change the dynamic in the Western Hemisphere,” he said. “It has too often been viewed as a second thought. It shouldn’t be. It’s our backyard, neighborhood, as you say. I think there are relationships we could improve.”

Many Bolivians allege this is a racist view that “offends the dignity of the Bolivian people”; that evokes strong emotions in the region, which has experienced many U.S.-backed right wing coups.

Morales announced his decision at a May Day rally on Wednesday, May 1, 2013, an occasion he has used in recent years to nationalize businesses and take other steps to rouse his working-class base in South America’s poorest nation.

USAID said in a statement that it has spent nearly $2 billion in Bolivia over the past 50 years on projects in education, health and food security areas; but Bolivian critics have alleged that the aid has focused primarily on the struggle against narcotraffic and counter-insurgency wars.

Bolivian officials have previously accused the agency of destabilizing the government. In 2008, Morales expelled the U.S. ambassador for allegedly aiding the opposition.

The U.S. “deeply regrets” Bolivia’s decision, State Department spokesman Patrick Ventrell told reporters. “Those who most hurt by Bolivia’s decision are the Bolivian citizens who’ve benefited from our collaborative work,” he said. He added that Bolivia’s allegations against USAID were “baseless,” and that the U.S. had not yet decided whether to take any action in response.