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Europe and Latin America

Europe and Latin America. Trade, investment, aid and conditionalities. From colonization to independence. Latin America ’ s incorporation to the world-the beginning of subordination and plunder of resources: 1520s-1820s

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Europe and Latin America

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  1. Europe and Latin America Trade, investment, aid and conditionalities

  2. From colonization to independence • Latin America’s incorporation to the world-the beginning of subordination and plunder of resources: 1520s-1820s • Colonial relationships: race and ethnicity, the other/inferiority/imitation • Economic dependency political and cultural dependency • Independence-neocolonialism and part of the US-backyard- Monroe doctrine • LA is not included within ACP because Spain is not part of the EC until the 1980s-then too late

  3. 1970-80s: a new profile • LA is not part of the de-colonisation wave after the 2nd WW, not part of ACP or Lomé group and during the cold war-LA very much a US sphere of interest • 70s-multipolarism and détènte: Social democracy as a new alternative searching for new partners and influence among political parties in LA • Inter-parlamentarian contacts and regular meetings • 80s-bipolarisation in Central America searching for a mediation role France, Germany and Sweden

  4. Central America: a test for multi-polarity • 1981 Resolution Mexico-France on El Salv • 1982-Nicaragua- assistance offers from Europenegative reactions from the USEC gives in and goes back to a low profile • Contadora group’s support to peaceful solutions • Falklands-re-polarization-EC+ US vs LA • Sn Jose’s process- support to Arias Plan

  5. Rio’s dialogue since 1990 • Political dialogue between two continents • Development of differentiated relations following regional groups, development levels and political/economic interests • 3rd generation agreements: conditionality clauses on democracy, human rights and structural economic reforms • Neo-liberalization and the end of alternatives?

  6. Sub-regional differentiated treatment: 90s • Andean group –preferential agreements and cooperation projects demands of strategies to fight coca production-conditionality • Central America: development assistance, framing small/middle peasant production-marked orientated networks of support • Mercosur – frame agreements and direct support to regional economic integration cooperation and open path for free trade

  7. Priority countries-regions • Mexico: Economic partnership, political coordination and cooperation agreement, FTA entered into force 2000. • Chile: Association Agreement 2002-entered into force 2003towards a free trade area • Mercosur: efforts for a FTA

  8. The survival of colonial links: bi-continental summits following Spain and Portugal’s presidencies • Rio 1999-strategic association and Action plan • Madrid 2002- to increase cooperation in 3 areas: hum.r., promotion of the information society and struggle against poverty • Main goal-human development and the strengthening of civil society • Guadalajara 2004: intensifying the struggle against drugs, agreements on regional cooperation • Lima May 2008, • May 2010 in Madrid “Towards a new stage in the bi-regional partnership: Innovation and Technology for sustainable development and social inclusion” • Jan 2013: EU-CELAC meeting in Santiago, Chile: Alliance for Sustainable Development to Promote Investments of Social and Environmental Quality

  9. Summits LAC-EU • May 2010 in Madrid “Towards a new stage in the bi-regional partnership: Innovation and Technology for sustainable development and social inclusion” • Jan 2013: EU-CELAC meeting in Santiago, Chile: Alliance for Sustainable Development to Promote Investments of Social and Environmental Quality • June 2015 in Brussels: "Shaping our common future: working for prosperous, cohesive and sustainable societies for our citizens".

  10. Madrid May 17-18, 2010 LAC: very divided politically/ideologically Honduras as a divider: boycott (UNASUR), but also the Cuban issue Finally Venezuela and UNASUR attended, not Honduras (only to the CA-UE summit: May 19) EU: pragmatic- not taking sides: to save the CA agreement

  11. EU-CELAC 2015 • June 2015 in Brussels: "Shaping our common future: working for prosperous, cohesive and sustainable societies for our citizens".

  12. Civil society • Civil society’s organizations- NGOs-following already existing trade agreements: Europe-Mexico-1st meeting Brussels-2002, Mexico 2005, Vienna 2006: discussion, reports and accountability • In all summits: parallel NGOs meetings • March 2015: the civil society summit: • http://concordeurope.org/2015/02/06/eu-celac-civil-society-forum-building-fairer-societies/

  13. Social summits: 2015 • the II EU- CELAC civil society forum (19-20 March) Organised by CONCORD, the European NGO confederation for relief and development, with its partner MESA de Articulación, the Latin American NGO association, • Also: the 8th meeting of European Union-Latin American and Caribbean organised civil society (11-12 March); the 7th meeting of the EU, Latin American and Caribbean Trade Unions (10-11 March); the CELAC-EU youth days (9-10 April); the Euro-Latin American parliamentary assembly (3-5 June), a Mayors Forum (4 June), the EU-CELAC academic summit (8-9 June) and the EU-CELAC Foreign Ministers Meeting (9 June).

  14. Trade EU-LAC • EU- second regional associate of LA at a similar level with China and behind the United States. • The EU has concluded trade agreements with 26 of the 33 CELAC members (2016). • Trade in goods almost doubled over the last decade (2004- 2014) reaching €209.2bn in 2014 (6.2% of total EU trade). • Trade in services between the EU and CELAC amounted to €72.2bn in 2013. • 2004-2014 CELAC’s share in EU exports: 5,4% to 6,5%, in EU’s imports: around 5,9%

  15. EU’s imports and exports: origin and destination 2004 (percent)

  16. LAC-EU: exchange structure • Exchange structure: typical developed-developing countries (industrialized products vs raw materials) with the exception EU-Mexico • However the ratio of export of raw materials from LAC to EU has gradually decreased

  17. EU-Mercosur • 1995: Frame-agreement of cooperation and association starts to be negotiated • 1999: Free trade agreement negotiations startsuspended in 2004, they resumed in 2010 and nine negotiation rounds have been held since then, with the last one in October 2012. Obstacles for FTA: EU’s CAP • Association agreement: 2001: 3 pilars: MNC/polit/trade • Assistance/consultancy –for regional integration • EU interested in telecommunication and financial services

  18. EU-Mercosur 2016-2016

  19. EU-Mercosur "trade in goods" • Trade in goods 2012-2014, € billions • Year EU imports EU exports Balance • 2012 54.1 56.9 2.8 • 2013 47.1 56.8 9.7 • 2014 44.6 51.3 6.7

  20. EU-Mercosurexchangestructure 2014

  21. Mercosursmaintrade partners

  22. EU-Mercosur • In 2013, the EU was Mercosur’s first trading partner, accounting for 20% of Mercosur’s total trade. • Mercosur was the EU’s eighth major trading partner, accounting for 2.8% of total EU trade. • In 2014, EU-Mercosur trade reached €95.9bn. • But the FTA EU-Mercosur-still pending because of CAP, and certain problems with patents- IPR • With the shifts in government in Br and Arg + an increase in EU’s interest-probably the agreement-soon ready

  23. EU-Chile • The EU is Chile's second largest source of imports, after the USA. The EU is also Chile's third largest export market, after the recent rise of China as an important export market for the EU. • The EU and Chile concluded an Association Agreement in 2002, which included an FTA that entered into force in February 2003. In 2013, the EU was Chile’s third largest source of imports and its second largest export market. Since 2004, bilateral trade has grown by 54%, reaching €16.1bn in 2014.

  24. Trade in goods EU-Chile 2012-2014 in Eu bill • Year EU imports EU exports Balance • 2012 9.7 8.5 -1.2 • 2013 8.9 9.3 0.3 • 2014 8.7 7.4 -1.3

  25. EU-Chile Trade in services • 2011-2013, € billions • Year EU imports EU exports Balance • 2011 1.4 3.2 1.9 • 2012 1.5 3.1 1.6 • 2013 1.6 3.3 1.6

  26. EU-Chile 2016-2016

  27. What do theytrade? • Key EU imports from Chile include mining products such as ores and non-ferrous metals, mostly copper which has historically represented around 55% of total exports to the EU. The agricultural sector contributes up to a quarter of the total EU imports from Chile, notably as wines, fruit and vegetables, fish and wood products (cellulose and other). • Important EU exports to Chile include machinery and electric equipment, transport equipment, chemical products, and fuel. • Also liberalisation in service sectors

  28. EU- Chile tradeofproducts

  29. Chile’smaintrade partners

  30. The EU and the Andean countries • Political dialogue and cooperation agreement: 2003 • EU: leading donor of official development aid to the Andean region, with €713 million set aside • June 2007: negotiations began on a new Association Agreement bi-regional trade and investment

  31. Political Dialogue and cooperation agreements • A very broad program of cooperation at the economic, political, social level focusing strategically on the fighting of drugs production and traffic • Also: providing aid for a deepening of the integration process within Andean countries

  32. Problems towards assoc agreements with Andean countries • June 2007: negotiations began on a new Association Agreement • Several negotiations rounds (3) but the 4th round to take place in Brussels in July 2008: suspended • Problem: agreements around IPRs: intellectual property, privatization of public services and state licitations

  33. Problems-negotiations with EU • Division among Andean states: Colombia and Peru-for bilateral agreements, Ecuador y Bolivia: bloc negotiations and agreements • Official announcement-mid nov: Colombia and Peru continue the negotiations on their own, Ecuador wants to follow • Bolivia is isolated-insists on bloc negotiat • Bolivia also enters bilateral negotiations but so far no agreement

  34. EU-Andean community "trade in goods" Trade in goods 2012-2014, € billions • Year EU imports EU exports Balance • 2012 17.8 11.7 -6.0 • 2013 16.0 12.4 -3.6 • 2014 16.3 12.5 -3.7

  35. Andeancountriestradewith the world

  36. EU-Central America A relation based on development cooperation in the 1980s-1990s Upgrade to a trade relation: negotiations for an Association agreement Problems in the negotiations: quotas, the entrance of European milk’s products, rules of origin for CA’s textiles, banana’s entrance to the EU plus migration issues Signed is spite of all (including the coup in Honduras in 2009-no conditionalities alleged) in Madrid May 2010

  37. CA-EU

  38. Exchange EU-CA

  39. Top trading partners Central America

  40. EU-México: FTA in 2000 • Signed in 1997- starts in 2000 • Elimin tariffs -48% for all ind product fr EU, 82% for all Mex products to EU • Goals: elimin of all tariffs for ind prod  2007 • No visible results in trade exchanges-stagnated and big deficits for Mexico • Investmentsrules rejected for MAI accepted by Mexico (already-privatized banking system-mainly European investments) • EU-Mex-FTA: a door for EUs products to the US (NAFTA) • Clause of democracy and HR-difficult to accept for Mexico

  41. EU’s trade with Mexico

  42. Mexico’s trade with EU

  43. EU-Mexico trade 2016-2016

  44. Mexico’s top trading partners

  45. The last years • 2012: EU x to Mexico: 28 € bn and imports 19 € bn -surplus for the EU • EU’s share of Mexico’s external trade in 2012: 8,5% while in 2008 it was: 9,4% • 2012: EU: Mexico’s 2nd trade partner again (3rd 2010-11, after China) • 2010: investments: 81 bill- the second largest entrance of foreign capital to Mexico but 2012: fall of 72% (the lowest level since 2000) compared to 2011: for the 1st time: outward flows higher than inwards

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