Mr Obama praised the region for its dynamism, saying it was ready to assume a greater role in world affairs.
He added that Latin America's political experience could be a guide for other peoples seeking democracy.
Mr Obama is in Chile on the second leg of a tour of Latin America that has been overshadowed by US-led military action against Libya.
"The world must now recognise Latin America for the dynamic and growing region that it truly is," he said.
He added that the transition from authoritarian rule to democracy in the region - and in Chile in particular - could be a model for other parts of the world.
"At a time when people around the world are reaching for their freedoms, Chile shows that, yes, it is possible to transition from dictatorship to democracy, and to do so peacefully," Mr Obama said.
'All Americans' Mr Obama stressed the importance of US trade relations with the region, saying the US bought more Latin American products and invested more in the region than any other country.
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