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| European Parliament Fact Sheets |
6.3.7. Latin America LEGAL BASIS
- Title V of the Treaty on European Union as regards general relations.
- EC Treaty:
- Article 37 for fisheries agreements,
- Articles 133 and 300 for trade relations,
- Article 308 for cooperation agreements.
OBJECTIVES
- to reinforce political ties;
- to strengthen economic and trade relations;
- to support democratic development and economic and social progress in Latin American countries;
- to foster regional integration.
These objectives are reflected in particular in 'fourth-generation' agreements, which are more ambitious than previous ones, going beyond simple trade and development aid agreements and providing for political cooperation and free-trade areas.
ACHIEVEMENTS
- Relations with the continent as a whole
- Development cooperation
Since the 1960s, Latin America has benefited from financial and technical assistance from the European Union, which is its biggest provider of official development aid. Development and cooperation policy is conducted by means of regional and global agreements covering all areas of commercial, technical, financial, cultural and political activity. Latin America also receives assistance under specific programmes of technical and financial aid, including ALFA for university cooperation, the second phase of which (2000-2005) has already been launched, AL-Invest for cooperation between companies, ALURE for cooperation in the energy sector, the new @LIS programme, designed to promote more widespread use of information technology, ECHO for support for the victims of natural disasters and drought and the project for the creation of a centre for European and Latin American studies (CELAS).
- Relations with the Rio Group
The Rio Group, which was founded in 1986, is the principal mechanism for political consultation at continental level. It now covers the whole of Latin America and also includes representatives of the Caribbean countries. Relations between the EU and the Rio Group were placed on an official footing by a declaration made in Rome on 20 December 1990. The interregional dialogue includes an annual meeting of Foreign Ministers. The partnership between the two regions consists of
- political dialogue,
- technical, financial and economic cooperation, and
- trading links.
- Joint summit in Madrid, 2002
After an initial summit in Rio de Janeiro in June 1999, the Heads of State or Government of the countries of the EU, Latin American and the Caribbean met again in Madrid on 17 and 18 May 2002. This second summit established a political, economic and cooperation partnership. It approved a progress report on the development of relations since the first summit of 1999. The main results of the debates, as recorded in the declarations, were as follows:
- a commitment to step up individual and collective action against terrorism in all its forms;
- a pledge to consolidate the rule of law, democracy, human rights and the fight against social injustice;
- an undertaking to engage in social, cultural, scientific, technological and educational cooperation;
- a commitment to cooperate in the fight against drug-trafficking and a reaffirmation of the shared responsibility of producer and consumer countries;
- a reaffirmation of commitment to the multilateral system of the UN and a declaration of intent to coordinate positions in international forums;
- a commitment to the lowering of trade barriers.
Relations with regional groupings
- Central America: the San José dialogue
- In September 1984, representatives of the EU and Central American countries (Costa Rica, Guatemala, Honduras, Nicaragua, Panama and El Salvador) met in San José in Costa Rica to examine the situation in the region, which at that time was in crisis. They have continued to meet annually, in a Central American or European capital, and the EU relies on this dialogue to promote peace, political stability, democracy, respect for human rights and regional integration in the countries concerned. The establishment in 1991 of the 'Central American integration system' has since brought progress in the domain of regional integration..
- At the 18th ministerial conference, held in Madrid in May 2002, the parties decided to draw up a new agreement on cooperation and political dialogue. This agreement, which was signed in Rome on 15 December 2003, formalises the political dialogue that was launched in 1984. It extends the scope of cooperation to immigration control, economic cooperation and the fight against terrorism. The countries of Central America have expressed the hope that negotiations on the liberalisation of trade, similar to those that culminated in the agreement between the EU and Mexico, will be announced at the Guadalajara summit in May 2004. At the time of writing, Chile and Mexico were the only Latin American countries with which the Union had concluded free-trade agreements.
- Andean Community
The EU has maintained regular contact with Andean countries (Bolivia, Colombia, Ecuador, Peru and Venezuela) since 1969, when the Andean Group was founded (the Group became the Andean Community in 1996). It concluded a first cooperation agreement with them in 1983, followed by a 'third-generation' agreement in 1993, which provided for economic and trade cooperation and development cooperation and included a most-favoured-nation clause.
At their meeting on the fringe of the Rio summit in 1999, the Andean countries raised the possibility of a new cooperation agreement, which would be wider in scope than the 1993 agreement. The Madrid summit of EU, Latin American and Caribbean Heads of State or Government in 2002 took a decision to update the agreement. The negotiations were completed in October 2003. The new provisions do not, however, include the liberalisation of trade, which the Andean countries had originally wished them to cover, citing the EU-Mexico and EU-Chile agreements as models. Nevertheless, one of the aims of the updated agreement is to 'create the conditions' for an association agreement which would include free trade and would be based on the results of the Doha Round of WTO negotiations. The new agreement extends the scope of cooperation to the fight against terrorism and illegal immigration. In addition, it institutionalises the mechanisms of political dialogue that were created in 1996 with the signing of the Rome Declaration.
- Mercosur
In 1991, Argentina, Brazil, Paraguay and Uruguay announced their intention of establishing a Southern Cone Common Market (Mercosur). Relations between the EU and Mercosur were institutionalised by the framework agreement of 1995, which paved the way for political cooperation and negotiations on the establishment of free trade between the two parties. At the Madrid summit in 2002, the representatives of the EU and Mercosur relaunched the economic and trade negotiations. In particular, the two parties agreed on a timetable and negotiating procedures and defined their levels of expectation with regard to the future agreement. The global economic slump, and especially the crisis of 2000-2001 in Argentina, had an adverse impact on the negotiations. At a ministerial meeting between the EU and Mercosur on 12 November 2003, it was decided to complete the negotiation of an association and free-trade agreement in October 2004. To this end, an interim report was to be presented at the Guadalajara summit in May 2004.
Relations with individual countries
- Argentina
Among the Latin American trading partners of the EU, Argentina is second only to Brazil in terms of trade volume. Since the signing of the framework economic and trade agreement on 2 April 1990, relations have developed well. There is now a broad consensus on democracy, human rights and the international situation. In addition, agreements have been concluded on trade in textile products, fisheries and scientific and technological cooperation.
Bilateral relations took on a new dimension with the conclusion of the framework agreement with Mercosur. On 2 August 2002, the European Community adopted a new five-year strategy for its development cooperation in the period from 2002 to 2006, the main aims of which are to reform government administration, to combat poverty and unemployment and to develop trade. It should be noted, however, that the financial crisis in Argentina put many European financial institutions in difficulty.
- Brazil
Since the conclusion of the 1992 cooperation agreement between the EU and Brazil, bilateral relations have become closer, and relations with the EU have become one of the priority areas of Brazilian foreign policy. Relations also took on a new dimension with the conclusion in 1995 of the EU-Mercosur association agreement, particularly in the domains of fisheries, environmental policy, transport and competition.
- Colombia
Despite major social inequalities and the armed struggle waged by guerrillas, Colombia had managed to maintain a relatively high degree of stability during the period from 1960 to 1980. Since 1980, the country has been plagued by widespread uncontrolled violence. The aim of the EU is to help Colombia in its quest for peace as a basis for the sustainable development of the country. To this end, the EU has adopted a five-year strategic plan covering the years from 2002 to 2006. The political dialogue with Colombia was institutionalised by the Rome Declaration of 1996 and centres on interregional issues such as the importance of democratic values and human rights.
- Chile
In 1996, a cooperation agreement was concluded between the EU and Chile. Three years later, negotiations were opened on an association agreement. The negotiations were completed in March 2002, and the agreement was signed on 18 November 2002. It comprises three strands - politics, trade and development cooperation. Provision is made for a political dialogue, in which civil society is also to be involved. The agreement also provides for the liberalisation of trade over a ten-year period. About 90% of Chile's industrial products can already enter the EU freely, and the remaining 10% will have free market access within two years. For its part, Chile will phase out customs duties on European industrial products in three stages - after three, five and seven years. Up to 98% of the volume of trade in agricultural products will be liberalised over the next ten years.
- Mexico
The Economic Partnership, Political Coordination and Cooperation Agreement, also known as the Mexico-EU Global Agreement, was signed on 8 December 1997 and entered into force on 1 October 2000. In the framework of this Agreement, the EU and Mexico concluded a Free Trade Agreement, which entered into force on 1 July 2000 for industrial and agricultural goods and in March 2001 for services, intellectual property and investments. Mexican industrial exports were to have completely free access to the EU market from 2003, and the Mexican market was to be fully opened to EU exports in 2007. These agreements not only created a free-trade area but also institutionalised a political dialogue for the promotion of democratic principles and respect for human rights. The volume of trade has grown since the entry into force of the Free Trade Agreement three years ago, with Mexican exports to the EU increasing by 19% and a 28% rise in European exports to Mexico. An agreement on scientific and technological cooperation has just been finalised and should be signed at the beginning of 2004. The two parties are also planning to conclude an agreement in the fields of education, youth and training.
- Paraguay
The main areas of bilateral cooperation are government reform, education, social reforms, restructuring of the production system and regional integration.
- Uruguay
Until the end of the military dictatorship in 1985, bilateral relations were virtually non-existent. The restoration of democracy altered this situation, and a framework cooperation agreement was concluded in 1991. The Union supports the Government's efforts to guarantee political stability.
- Peru
Political dialogue is based on the Rome Declaration, signed in 1996. In 1995, Peru signed an agreement on the suppression of drug trafficking. The EU adopted a five-year strategy for its development cooperation with Peru in the period from 2002 to 2006, defining the main objectives of its cooperation policy for that period.
- Bolivia
Despite the fact that Bolivia has carried out reforms and espoused democracy, it remains the poorest country in Latin America. EU policy has two main elements: support for the national development strategy and measures designed to combat poverty. These aims are reflected in the adoption, on 17 May 2002, of a cooperation and development strategy.
- Ecuador
Ecuador is the smallest of the Andean countries. Its economic and political situation continues to give cause for concern. EU policy has focused on assisting the Government to combat poverty and its social consequences but also on the struggle to minimise the environmental impact of economic activity. Bilateral relations are governed by the framework agreement signed in 1993, which entered into force in 1998.
- Venezuela
Venezuela has the strongest economy in the Andean Community. It has experienced a period of significant changes that have affected the political, social and economic life of the country. In the context of bilateral relations, the Union is focusing on two of Venezuela's main needs by helping to alleviate the effects of natural disasters and to diversify the economy by means of measures in sectors such as fisheries.
ROLE OF THE EUROPEAN PARLIAMENT
- Parliament has set up delegations for relations with Central and South America and is in close contact with parliaments in the region, in particular the Latin American Parliament (Parlatino), the Central American Parliament (Parlacen), the Mercosur Joint Parliamentary Committee, the Andean Parliament and the Congress and Senate in Chile and Mexico. A total of 16 EU-Latin American interparliamentary conferences have taken place since 1974; the most recent was held in Brussels in May 2003.
- In its resolution of 15 November 2001, the European Parliament called for the adoption of a common EU strategy for Latin America and the Caribbean, proposing that it remain in force for an initial period of four years in order to ' give substance and direction to EU action in launching the strategic bi-regional partnership' agreed upon at the Rio summit of June 1999. In a very detailed resolution comprising 66 operative paragraphs, the European Parliament defines the aims of the common strategy. Foremost among these are:
- in the political sphere, creating an EU-Latin American Transatlantic Assembly, signing a joint peace charter and launching a political and security partnership;
- in the economic, financial and commercial spheres, putting an EU-Latin American free-trade area in place by 2010;
- in the social and cultural spheres, setting up a bi-regional solidarity fund, introducing a global anti-drugs plan and creating a centre for European and Latin American studies.
- The resolution emphasises that one of the basic aims of the new strategy should be to promote human rights, democracy, good governance, transparency and the rule of law .
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