16 EU/Latin America Relations
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COM(05) 636
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| Commission Communication: A Stronger Partnership between the European Union and Latin America
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| Legal base | — |
| Document originated | 8 December 2005
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| Deposited in Parliament | 5 January 2006
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| Department | Foreign and Commonwealth Office
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| Basis of consideration | EM of 19 January 2006 and letter of 13 February 2006
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| Previous Committee Report | None
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| To be discussed in Council | 27 February 2006 General Affairs and External Relations Council
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| Committee's assessment | Politically important
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| Committee's decision | Cleared, but further information requested
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Background
16.1 In its introduction, the Commission says that, "in a
world filled with new threats and opportunities, the European
Union, as a global actor, needs to consolidate relations with
its closest partners. One of these is Latin America, with which
we share a common commitment to human rights, democracy and multilateralism.
Europe needs all its friends in order to assert these common values.
Few regions in the world offer so many reasons to build a genuine
alliance. Given their shared history and culture, the EU and Latin
America are thus better placed to understand each other than many
other regions, boosting their potential for joint action considerably.
Being close allies on the international scene is therefore in
their mutual interest. For that reason the Commission intends
to use this document and the detailed annex to strengthen the
partnership between the EU and Latin America, and renew the strategy
that has been followed for the past decade".
16.2 The Commission formally presented the Communication
at the 30 January General Affairs and External Relations Council
(GAERC) and it will be tabled for discussion at the 27 February
GAERC, prior to the EU-Latin America and Caribbean Summit in Vienna
in May 2006.
The Commission Communication
16.3 The 19 January 2006 Explanatory Memorandum from
the Minister of State for Europe in the Foreign and Commonwealth
Office (Mr Douglas Alexander) explains the Communication well.
He says it proposes actions on more frequent and focused political
dialogues with Latin America; creating a favourable trade and
investment climate; supporting efforts to increase stability and
prosperity on a country and regional basis; and increased co-operation
and mutual understanding. He goes on to say:
"The Commission aims to send a clear signal
that the EU is interested in the development of Latin America.
The Communication begins by identifying a need for a strengthened
EU-Latin America relationship. The EU is Latin America's largest
foreign investor; it is the largest aid donor for the region;
and the primary trading partner for many Latin American countries,
especially members of Mercosur. For their part, most Latin American
countries are trying to implement ambitious economic and social
reforms and adopting democratic systems. Latin America is rapidly
becoming an ally in wider foreign policy fora including in the
WTO and the UN. Political dialogue with the region is increasing,
and the Communication will help lay the foundations for discussion
at the EU-Latin America and Caribbean Summit in Vienna in May
2006.
"The starting point for the new strategy is
that the EU and Latin America should seek to develop a strategic
partnership, forging strong links in the political, economic and
cultural fields. The Commission proposes to achieve this through
the following objectives:
- Establish a strategic partnership through a network
of association agreements;
- Hold genuine political dialogues which increase
the influence of both regions on the international scene;
- Develop effective sectoral dialogues with a view
to the sustainable reduction of inequalities and promoting sustainable
development;
- Contribute to the development of a stable and
predictable framework to help Latin American countries attract
more European investment, which will contribute to economic development;
- Tailor aid and co-operation more to the needs
of individual countries; and
- Increase mutual understanding through education
and culture.
"The Communication then details the key challenges
faced by the EU-Latin America relationship, including lack of
regional integration and regional and country specific variations.
It examines in more detail the action points outlined above and
how these feed into the EU-Latin America and Caribbean Summit
in May."
16.4 But that is all that the EM does well. We indicated
to the Foreign and Commonwealth Office that, before considering
the matter further, we would like to know like to know whether
the Government agreed with the Commission's proposals for building
the hoped-for stronger partnership with Latin America. Though
not a proposal for legislative action, once endorsed by the Council
it would lead to activity and expenditure: why did he think that
this proposal would be any more successful than its predecessor
in developing the sort of relationship that had long been looked
for but which, despite earlier such plans and summits, had failed
to materialise?
16.5 Our counterparts in the House of Lords' Select
Committee on the European Union took a similar view, but after
considering the Explanatory Memorandum, in a letter to the Minister
for Europe in which they also asked some specific questions. He
has responded to both Committees in his letter of 9 February 2006.
The Minister says that now that the Commission has formally presented
the Communication to the GAERC, he is better placed to comment,
which he does as follows.
"The EU already has a strategic partnership
with Latin America. This Communication is essentially an update
of the Commission's last strategy paper on Latin America, produced
in 1995. The Commission's overall objective is twofold: to improve
dialogue and to make clear that Latin America matters to Europe
at a time when there is a perception in the region that the EU
has lost interest. A similar Communication on the Caribbean will
follow in the next few months. There is no umbilical link between
either Communication and the EU-Latin American Caribbean Summit
in Vienna in May 2006 (EU-LAC Summits take place every 2-3 years).
But it makes sense for the European Union to signal its commitment
to the region in the lead-up to the Summit.
"Much of what is in the Commission Communication
is intended to improve on the existing arrangements; some of it
is new. But it is in general intended to give more substance to
the EU-LAC relationship. The main points are:
- The EU has formal political dialogues with relatively
few countries in the region. It has, for example, no dialogue
with Brazil, the emerging regional power. The Commission want
to plug that gap and also intend to create sectoral dialogues
with Latin American countries on two key areas: on social cohesion
(at senior official level) and on the environment (at Ministerial
level);
- The Commission considers that current political
dialogues (e.g. the Rio Group) are not working very well: agenda
are too long and meetings are too declaratory. They intend to
try to focus these meetings to concentrate on a limited number
of topics in order to have a genuine dialogue. Javier Solana is
involved in existing dialogues and would presumably be involved
in any new dialogues;
- The Commission want to promote a more favourable
climate for EU trade and investment by working with Latin American
countries to identify obstacles to foreign investment and by promoting
EU norms and standards;
- The Commission have taken up a European Parliament
proposal to create a Euro-Latin America Transatlantic Assembly
(similar to those that already exist with ACP and EuroMed countries)
with the aim of promoting the democratic process in a region where
democratic institutions are weak;
- The Commission are stepping up programmes of
higher education co-operation; and
- In addition, the Commission hope that a decision
will shortly be reached on a Latin America Facility for the European
Investment Bank, and that this can be presented at the Vienna
EU-LAC Summit.
"We believe that the Commission's proposals
to build a stronger partnership with Latin America are positive.
We are generally satisfied that in this Communication the Commission
has focused on the most important challenges facing the region
today and identified the areas in which the EU's partnership with
Latin America can help to make a difference. The UK has commented
on the Communication during discussions at the EU-Latin America
Working Group and in the form of textual amendments to the draft
Council Conclusions. Our comments have focused on the following
points:
- we welcome more focused dialogue and agree there
is a case for creating new dialogues, especially with major emerging
powers like Brazil and on issues of critical importance to the
UK, EU and Latin America such as the environment, but we should
avoid where possible creating new burdensome structures;
- all development co-operation must be consistent
with the principles and commitments contained in the recently
agreed Joint Council, Commission and European Parliament Statement
on the European Consensus on Development and the European Community
Development Policy Statement;
- in line with the European Consensus on Development,
and in view of the pronounced levels of inequality across Latin
America, poverty eradication in the context of sustainable development
[including pursuit of the Millennium Development Goals] must remain
the primary and overarching objective of EU development co-operation.
Similarly community co-operation with Latin American countries
should have poverty eradication as its main objective."
16.6 With regard to the specific points in the House
of Lords EU Committee's letter, the Minister says:
"The economic policies pursued by the government
of Venezuela are based on President Chavez's 'Bolivarian revolution
and 21st century socialism'. There is high government
spending on social projects, principally funded by oil revenue.
The price of oil is crucial to the sustainability of this project.
The Venezuelan government has recently re-negotiated the contracts
it holds with the international energy companies operating in
the country. We understand that some negotiations are still going
on. It is therefore a little early to judge whether, and if so
to what extent, this will effect the participation of European
companies in Venezuela.
"Venezuela is also reaching out economically
and politically within the region. It has started accession negotiations
to join Mercosur. It is unclear how long these negotiations will
last. The implications of Venezuelan membership of Mercosur on
EU-Mercosur relations is a subject that we continue to assess
within the EU. It should be noted that the EU also has regular
contact with the Andean Community, of which Venezuela is a member.
"The direction that the new Bolivian government
will take on economic policy is not yet clear. It is likely that
President Morales' stated intention of 'nationalising' the country's
hydrocarbons industry will have implications for British, other
EU and foreign investors, including Brazilian companies. But it
is too early to speculate exactly what form government policies
will take. Morales has made clear his wish to maintain good relations
with the EU, and his willingness to work with foreign investors
as 'partners' not 'owners' of Bolivia's natural resources. His
strong commitment to tackle poverty and exclusion is welcome,
and the EU has made clear its support for Bolivia's efforts in
these areas. It will be important for EU donors to be supportive
and open to dialogue with the new Government.
"I do not think that the Communication reflects
a changing relationship with Mercosur, which is mentioned in several
sections of the paper (e.g. 'Creating a climate favourable to
trade and investment', 'Contributing together to stability and
prosperity' and 'Co-operating more effectively and increased mutual
understanding'), as well as in the final section on the Summit.
As you know, an EU-Mercosur Association Agreement is currently
under negotiation. Engaging with Mercosur remains an important
aspect of the EU strategy in Latin America.
"As stated previously, tackling poverty and
inequality represents the most pressing challenge for most Latin
American countries. They should remain the focus of Community
co-operation, and I can confirm that they are being taken into
account in preparations for the forthcoming EU-LAC Summit in Vienna
in May."
16.7 Finally, the Minister says that he does not
see the Commission's Communication as signalling an alteration
in the balance of the EU's relations with Latin America and SE
Asia:
"For both regions the EU has a committed dialogue.
The EU's partnership with SE Asia contains similar priorities,
including regional stability, human rights, trade and investment
and development. For both Latin America and SE Asia the essence
of our relations rests on effective dialogue, which in the case
of Latin America the Commission's Communication rightly underlines."
Conclusion
16.8 Dialogue between the EU and the major regional
powers in Latin America is plainly important; so, too, the proposed
areas of sectoral discussion. We also endorse the need for assistance
to focus on poverty alleviation, in line with the Millennium Development
Goals, and hope that this will be reflected in the promised companion
Commission Communication on relations with the Caribbean.
16.9 But it is vital that it should be effective,
and not talk for talk's sake. Such dialogue has not characterised
the relationship thus far: as the Minister says, agendas have
been too long and meetings too declaratory. To be effective, it
needs to be not only focussed but also honest, and not shy away
from controversial but nonetheless important issues where positions
differ. Warm words from the Commission about being close allies
on the international scene, and from the Minister about Latin
America rapidly becoming an ally in wider foreign policy fora,
including in the WTO, sit oddly with the reality of the differences
between Brazil and the EU in the current Doha Development Round,
and the discriminatory action by Argentina with regard to European
and other companies doing business with the Falkland Islands.
16.10 Moreover, it is not apparent how the worthwhile
objective of eschewing burdensome new structures will be aided
by the creation of a further inter-parliamentary forum, especially
since it is not at all clear that those that are prayed in aid
by the Minister — with the Africa, Caribbean and Pacific
(ACP) and the Euro-Med countries — have had much success
in promoting the democratic process in other regions where democratic
institutions are likewise weak.
16.11 We clear the Communication, which we are
reporting to the House in view of the widespread interest in developments
in and relations with Latin America. But we ask that the Minister
writes to us after the Summit to let us know the extent to which
the key considerations — dialogues that are not only clearly
focussed, but honest and tackle all relevant issues; no new burdensome
structures; MDG-focussed development priorities — have been
reflected in what was discussed and agreed between the EU and
its Latin American partners.
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