Friday

29th Mar 2024

EU warned not to ignore Latin America

For some in Brussels the words "Latin America" still conjure up an image of basket-case economies, but the message from a recent high-level conference in the EU capital was loud and clear: ignore this region at your peril.

One-by-one, speakers at Tuesday's (29 June) gathering, hosted by the Friends of Europe think-tank, warned that while Europe dawdles, China and the US are pushing ahead in the region of over 500 million people, spread out over 20 states and two continents.

Read and decide

Join EUobserver today

Get the EU news that really matters

Instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

  • Latin American leaders (l to r) on mural: Evo Morales, Fidel Castro and Hugo Chavez (Photo: alittlefishy)

"We are determined to keep our top spot," declared EU trade commissioner Karel De Gucht, in reference to Europe's foreign direct investment in Latin America.

Others said the EU needs to rethink its current strategy in a region that is forecast to grow by an average of four percent of GDP this year, four times faster than Europe.

"We see that Latin America in not a top priority on the EU's political agenda," said Carlos Lopez Blanco, director of international affairs at Spanish multinational Telefonica. "For us this is a big, big mistake."

The former Spanish minister said foreign companies are increasingly looking to emerging markets as sources of growth in the post-financial crisis environment, pointing to the fact that China is set to overtake the EU as Latin America's second largest trading partner after the US.

In addition, EU trade and investment is dominated by states with colonial links such as Spain, Portugal, France and the Netherlands. "The rest of the countries, especially the new EU member states, do not know our region very well," said Mexico's ambassador to the EU, Sandra Fuentes-Berain.

Recent statistics by the Paris-based OECD economic club have helped rebrand the image of a region which accounts for three G20 members, and which, according to the club, in many ways constitutes a less risky investment environment than Europe.

Argentina's debt crisis (2001) has given way to Greek panic in the public consciousness (2010), although significant differences remain between the two sides in terms of poverty levels and income inequality.

Latin America's businesses such as Brazilian company JBS, the world's largest beef producer, are among a growing number of home-grown firms looking to snap up bargains in Europe, but the EU's imperfect single market complicates opportunities.

"For us it would be easier to deal with one partner rather than 27," said Ms Fuentes-Berain, referring to a recent report by former EU commissioner Mario Monti on the need to relaunch the single market.

Trade deals

The out-going Spanish presidency has worked hard to correct Europe's perceived lack of attention, with the EU initialing free trade agreements with Peru, Colombia and a collection of Central American states in Madrid this May.

Spurred on by the country's top CEOs who stand to make huge savings through a reduction in tariffs, Spain has also been a key supporter of restarting trade negotiations with the South American trade bloc Mercosur.

After years of stalled talks, the European Commission is set to sit down at the negotiation table this week for the first time since 2006.

Newly empowered MEPs, who under the Lisbon Treaty have to approve international agreements, have indicated their reservations over the Colombian agreement however, with the country home to the highest rate of trade union deaths in the world.

"We are certainly going to face a deep discussion on the Peru and Colombia deals, to put it mildly," conceded Mr De Gucht.

US and EU breaking taboos to restrain Israel

The US abstained and all EU states on the UN Security Council backed a call for an "immediate ceasefire" in Gaza, as Europe prepares to also blacklist extremist Israeli settlers.

EU warns Russia over Moscow terror attacks

Europe has warned Russia not to use the weekend's terror attacks in Moscow as a pretext to escalate its war in Ukraine and crackdown on internal dissent.

EU summit risks failing Gaza once again, Ireland warns

Austrians and Czechs might block an EU statement calling for an Israeli ceasefire, Ireland warned, as leaders met in Brussels amid starvation in Gaza. Israel's conduct of the war meant it had "squandered the support they had", Leo Varadkar said.

Opinion

Why UK-EU defence and security deal may be difficult

Rather than assuming a pro-European Labour government in London will automatically open doors in Brussels, the Labour party needs to consider what it may be able to offer to incentivise EU leaders to factor the UK into their defence thinking.

Latest News

  1. Kenyan traders react angrily to proposed EU clothes ban
  2. Lawyer suing Frontex takes aim at 'antagonistic' judges
  3. Orban's Fidesz faces low-polling jitters ahead of EU election
  4. German bank freezes account of Jewish peace group
  5. EU Modernisation Fund: an open door for fossil gas in Romania
  6. 'Swiftly dial back' interest rates, ECB told
  7. Moscow's terror attack, security and Gaza
  8. Why UK-EU defence and security deal may be difficult

Stakeholders' Highlights

  1. Nordic Council of MinistersJoin the Nordic Food Systems Takeover at COP28
  2. Nordic Council of MinistersHow women and men are affected differently by climate policy
  3. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  4. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  5. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  6. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?

Stakeholders' Highlights

  1. Georgia Ministry of Foreign AffairsThis autumn Europalia arts festival is all about GEORGIA!
  2. UNOPSFostering health system resilience in fragile and conflict-affected countries
  3. European Citizen's InitiativeThe European Commission launches the ‘ImagineEU’ competition for secondary school students in the EU.
  4. Nordic Council of MinistersThe Nordic Region is stepping up its efforts to reduce food waste
  5. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  6. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA

Join EUobserver

EU news that matters

Join us