Economic Relations between the European Union, Latin America and the Caribbean

 By Luis Fierro Carrion (*)

Twitter: @Luis_Fierro_C

The economic and political relations between the European Union (EU) and the countries of Latin America and the Caribbean (LAC) have been strengthening in recent decades, although with less momentum in recent years (given the increase in trade between LAC and China).

I wrote a Policy Brief on the “Economic Relations between the European Union and Latin America and the Caribbean” for the EU-LAC Foundation and the Institut des Amériques, published at the end of April, and available at: https:/ /eulacfoundation.org/ 

The signing of association agreements between the EU and most LAC countries has led to an increase in foreign trade between the two regions, while the EU has remained the main source of foreign direct investment in LAC. Investment by LAC companies in EU countries has also increased. The trade agreement between the EU and Mercosur, the largest market in LAC, is however still pending ratification.

The COVID-19 pandemic and the growing impacts of climate change have given renewed impetus to the need for close collaboration between the two regions. The EU and its Member States have provided €3 billion in health aid to LAC. The EU exported more than 130 million doses of vaccines to LAC countries, and is one of the main contributors to the COVAX facility, which delivered more than 50 million additional doses to the region. EU Member States have donated 10 million doses.

Regarding climate change, the two regions have been closely aligned since the negotiation of the Paris Climate Change Agreement at COP21 (December 2015). Europe has prioritized the ecological transition, digital transformation and sustainable development in its regional and bilateral cooperation programs, and LAC countries are receptive to the means of implementation (climate finance, technology transfer and capacity building) to promote mitigation and adaptation to climate change. The two regions are perhaps the ones that have given the greatest support to the implementation of the Paris Agreement, together with groups of countries such as the small island states (SIDS) and the least developed countries (LDC).

€3.4 billion will be made available to LAC under the multi-year programme (2021-27) of NDICI-Global Europe, to support a sustainable and green recovery. In addition, the EU will mobilize more than €12 billion of public and private investment in the region through the European Fund for Sustainable Development Plus (EFSD+).

The EU Regional Multiannual Indicative Program for LAC (2021-27) will support the green transition, digital transformation, sustainable and inclusive economy, democratic governance, security and migration, as well as social cohesion and the fight against inequalities. Human development and education will likewise feature prominently.

Achieving greater growth, stability and security in LAC countries makes them more attractive markets for EU companies, both for commercial and investment purposes, which is why it is a mutually beneficial relationship.

(*) Column published on May 21 by the newspaper "El Universo" in Ecuador.

https://www.eluniverso.com/opinion/columnistas/relaciones-con-la-union-europea-nota/

Policy Brief: Relaciones Económicas entre la Unión Europea y América Latina y el Caribe (ENG, SPA, FRE)

"Relaciones Económicas entre la Unión Europea y América Latina y el Caribe"

(Below in English and French)

Policy Brief que escribí para la Fundación EU-LAC / EU-LAC Foundation y el Institut des Amériques.

La integración comercial entre las dos regiones ha avanzado, pero está pendiente de ratificación el acuerdo UE-Mercosur.

La pandemia de COVID-19 y los impactos crecientes del cambio climático han dado renovado ímpetu a la necesidad de colaboración estrecha entre las dos regiones.

En cuanto al cambio climático, las dos regiones han estado muy alineadas desde la negociación del Acuerdo de París de Cambio Climático en la COP21 (diciembre 2015). Europa ha dado prioridad a la transición ecológica, la transformación digital y el desarrollo sostenible en sus programas de cooperación regionales y bilaterales, y los países de ALC son receptivos a los medios de implementación (financiamiento climático, transferencia de tecnología y desarrollo de capacidades) para impulsar la mitigación y adaptación al cambio climático.

El Programa Indicativo Multianual (MIP) Regional de la UE para ALC (2021-27) apoyará la transición verde, la transformación digital, la economía sostenible e incluyente, la gobernanza democrática, la seguridad y la migración, así como la cohesión social y la lucha contra las desigualdades. El desarrollo humano y la educación ocuparán un lugar destacado dentro de estas áreas.

Alcanzar mayor crecimiento, estabilidad y seguridad en los países de ALC los vuelve mercados más atractivos para las empresas de la UE, tanto para fines comerciales como de inversión.

https://eulacfoundation.org/es/relaciones-economicas-entre-la-union-europea-y-america-latina-y-el-caribe

"Economic Relations between the European Union and Latin America and the Caribbean"

Policy brief I wrote for the EU-LAC Foundation / Fundación EU-LAC and Institut des Amériques

While economic integration between the two regions has advanced, the EU-Mercosur agreement is still awaiting ratification.

The COVID-19 pandemic and the growing impacts of climate change have renewed the momentum behind the need for close cooperation between both regions.

As for climate change, the two regions have been closely aligned since the Paris Agreement on Climate Change was negotiated at COP21 (December 2015). Europe has prioritised the ecological transition, the digital transformation and sustainable development in its regional and bilateral cooperation programmes, and the LAC countries are receptive to the means of implementation (climate finance, technology transfer and capacity development) to stimulate climate change mitigation and adaptation.

The Regional Multi-Annual Indicative Programme (MIP) of the EU for LAC (2021-27) will support the green transition, the digital transformation, the sustainable and inclusive economy, democratic government, security and migration, as well as social cohesion and the fight against inequality. Human development and education will play a leading role in these areas.

Achieving greater growth, stability and security in the LAC countries makes their markets more attractive to EU companies, both for trade and for investment.

https://eulacfoundation.org/en/economic-relations-between-european-union-and-latin-america-and-caribbean

Relations économiques entre l’Union européenne et l’Amérique latine et les Caraïbes

Policy brief issu du partenariat entre la Fondation EU-LAC et l’Institut des Amériques

Écrit par Luis Fierro, expert en politiques économiques vertes au sein du dispositif de soutien de l’UE pour contributions déterminées au niveau national

Malgré un certain degré de mécontentement des deux côtés de l’Atlantique, les relations économiques et politiques entre l’Union européenne (UE) et les pays d’Amérique latine et des Caraïbes (ALC) se sont renforcées au cours des dernières décennies, quoique de manière moins dynamique ces dernières années (compte tenu de l’augmentation des échanges entre l’ALC et la Chine). La signature d’accords d’association entre l’UE et la plupart des pays de l’ALC a entraîné une augmentation du commerce extérieur entre les deux régions, les pays de l’UE restant la principale source d’investissements directs étrangers dans l’ALC. Les investissements des entreprises de l’ALC dans les pays de l’UE ont également augmenté. Cependant, l’accord entre l’UE et le Mercosur, le plus grand marché de l’ALC, est en attente de ratification.

Fundación EU-LAC / EU-LAC Foundation

Institut des Amériques

https://www.institutdesameriques.fr/agenda/relations-economiques-entre-lunion-europeenne-et-lamerique-latine-et-les-caraibes