Select Committee on European Scrutiny Twenty-Seventh Report


8 An EU-Brazil Strategic Partnership

(28683)

10323/07

COM(07) 281

Commission Communication: Towards an EU-Brazil Strategic Partnership

Legal base
Document originated30 May 2007
Deposited in Parliament8 June 2007
DepartmentForeign and Commonwealth Office
Basis of considerationEM of 25 June 2007
Previous Committee ReportNone, but see (27132) —: HC 34-xx (2005-06), para 16 (1 March 2006)
To be discussed in CouncilTo be determined
Committee's assessmentPolitically important
Committee's decisionCleared, but further information requested

Background

8.1 The Commission notes that its Communication "A stronger partnership between the EU and Latin America" COM(2005) 636 set the ground for a stronger partnership with the Latin America region (which we considered on 1 March 2006).[26]

8.2 In the introduction to this present Communication, the Commission says that "over the last years, Brazil has become an increasingly significant global player and emerged as a key interlocutor for the EU". But until recently EU-Brazil dialogue has been carried out mainly through the EU-Mercosur[27] dialogue. Brazil will be the last of the BRICs[28] to meet the EU in a Summit, which will take place in Lisbon on 4 July 2007, and "will mark a turning point in EU-Brazil relations".

The Commission Communication

8.3 The Commission says that EU-Brazil relations demand a global, coherent and coordinated framework because "its emerging economic and political role brings new responsibilities for Brazil as a global leader. The proposed strategic partnership between Brazil and EU should help Brazil in exercising positive leadership globally and regionally and to engage with the EU in a global, strategic, substantial and open dialogue both bilaterally and in multilateral and regional fora", where, over the last few years, "Brazil has emerged as a champion of the developing world in the UN and at the WTO".

8.4 Furthermore, "the EU and Brazil share core values and interests, including respect for the rule of law and human rights, concern about climate change and the pursuit of economic growth and social justice at home and abroad. Brazil is a vital ally for the EU in addressing these and other challenges in international fora".

8.5 Brazil's demographic weight and economic development also make it a natural leader in South America and a key player in Latin America: "Brazil is now actively pursuing this role in the Mercosur framework and is at the forefront of the drive to promote the Union of South American Nations (UNASUR)."[29] The EU-Mercosur negotiations — "an EU priority strategic objective" — have not come to a conclusion due to lack of progress in the trade chapter; the positive leadership of Brazil could move the negotiations forward.

8.6 Commercially, Brazil is a major EU investment hub in Latin America and a market that will offer major additional openings for EU business, "once negotiations in the WTO Doha Development Agenda (DDA) and with Mercosur are completed and trade barriers have been further reduced". Although its growth rates are not comparable with China or India, "Brazil has huge natural resources, renowned scientific and academic excellence, broad industrial diversity and a vast internal market".

8.7 The Commission notes that "Brazil still has challenges to address: acute income inequalities remain a real handicap and are one of the Government's main targets for action, particularly through its 'Bolsa Familia' programme and a key area for cooperation and dialogue with the EU". The EU would like to see closer cooperation on regional cohesion to help tackle the sharp regional differences within Brazil between the North and the more developed South.

8.8 The Commission then outlines the areas in which it would like to set a common agenda with Brazil: strengthening multilateralism; raising human rights standards and fostering democracy and governance; achieving the Millennium Development Goals and promoting regional and social development; dialogue on social, employment and regional policy issues; protecting the environment; strengthening energy cooperation; enhancing Latin America's stability and prosperity; reinforcing trade and economic relations; justice freedom and security; bringing people together.

8.9 Specific suggestions include:

—  strengthened cooperation in all international fora, by consulting systematically ahead of important UN and other meetings, aligning positions wherever possible, ensuring mutual support on important issues and developing common initiatives. The EU and Brazil should cooperate closely to support and further develop the global non-proliferation regime. Regarding Human Rights, the EU is particularly keen to work closely with Brazil to achieve greater consensus on resolutions or co-sponsor initiatives on specific countries and issues in the relevant UN bodies.

—  the EU and Brazil should "continue to engage each other fully in the different formats of the WTO negotiations to bring them to conclusion in 2007". In the G20 Finance Ministers forum, "Brazil could be a key partner to develop common positions with the EU, including the discussions on the reforms of the international financial architecture. This will be particularly relevant during Brazil's G20 Presidency in 2008";

—  the EU should develop and reinforce its Environmental Policy dialogue with Brazil, e.g., on climate change, water management, biodiversity and deforestation, including the role of indigenous people;

—  starting with the launch of the EC-Brazil Energy Policy Dialogue in 2007, seek significant progress in EU-Brazil energy cooperation, including sustainable biofuels and other renewable energy sources, energy efficiency and low carbon energy technologies, and promoting policies to improve energy security and sustainability;

—  continued engagement with Brazil in implementing the recommendations of the EU-LAC Conference on Social Cohesion and in moving this agenda forward;

—   Brazil's close involvement in the preparation of the next EU LAC summit in 2008;

—  the EU and Brazil should explore how to maximise cooperation and exchange of experiences in regional integration questions;

—  the EU and Brazil should intensify cooperation with Brazil in the field of development assistance;

—  Brazil "to make a constructive contribution towards the conclusion of a balanced and comprehensive EU-Mercosur agreement";

—  regular macro-economic dialogue;

—  expanded dialogue and cooperation on Information and Communication Technologies and Science and Technology;

—  modify the air transport agreements between Brazil and EU Member States "as a matter of urgency";

—  develop and expand the recently established EU-Brazil maritime transport policy dialogue to include cooperation regarding maritime governance;

—  the EU and Brazil should promote regional multidisciplinary law enforcement cooperation;

—  more university exchanges, with €30.5 million for additional Erasmus Mundus scholarships for Brazilian students;

—  civil society contacts should be enhanced in a variety of fields, including via the "Youth in Action" programme and the organisation of an EU-Brazil Business Round Table (the first meeting to take place in parallel with the Summit).

8.10 Against this background, the Commission proposes that it should:

  • "engage with Brazil to launch a strategic partnership at the EU-Brazil Summit in Lisbon; and
  • "invite Brazil to submit its own views on the scope of the strategic partnership".

    The Government's view

    8.11 In his 25 June 2007 Explanatory Memorandum, the Minister for Europe at the Foreign and Commonwealth Office (Mr Geoffrey Hoon) says that Brazil's size, global role and its potential leadership role in the region "mean the EU should recognise this emerging power", and that the Communication reflects the UK's interests in the region. He has strongly supported the proposal to hold an EU-Brazil Summit and that first steps towards launching a Strategic Partnership should be taken. He is "working closely with the incoming Presidency, Commission and other partners, to ensure the Summit, and an enhanced EU relationship with Brazil, includes objectives and deliverables to support our own global and bilateral interests."

    8.12 He is also in favour of a Joint Action Plan setting out objectives and concrete outcomes to pursue in the EU relationship with Brazil, which he says was discussed by Member States in Brussels on 19th June (at the GAERC, we presume). He says that if the proposal of an Action Plan were adopted during the EU-Brazil Summit, once the document became available, he would be happy to submit it to the Committee along with an accompanying explanatory letter.

    Conclusion

    8.13 This is a well-developed score. But, as the Commission suggests, it takes two to samba.

    8.14 When we considered the predecessor Communication on relations with Latin America as a whole, which prepared the ground for an EU-Latin American and Caribbean (EU-LAC) Summit in Vienna in May 2006, we noted that, to be effective, and not talk for talk's sake, dialogue between the EU and the major regional powers in Latin America needed to be honest, and not shy away from controversial but nonetheless important issues where positions differed — in particular, we felt that warm words about the EU and Latin America being close allies on the international scene sat oddly with differences between the EU and Brazil in the Doha Development Round. We accordingly asked the Minister for his assessment, after the Summit, of the extent to which the key considerations — clearly focussed, but honest dialogues that tackle all relevant issues; no new burdensome structures; MDG-focussed development priorities — were reflected in what was discussed and agreed between the EU and its Latin American partners.[30]

    8.15 There continues to be echoes of this contradiction in the present Communication. We should therefore be grateful if the Minister would let us know what objectives and deliverables to support the UK's global and bilateral interests emerge from the Summit.

    8.16 We should also like to know what process and timetable is agreed for the production of a Joint Action Plan. We also look forward to seeing it in due course, along with the Minister's assessment of how well it meets the needs for focus, effectiveness and realism.

    8.17 We should also be grateful if the Minister would respond to the request we made over a year ago in connection with the 2006 EU-LAC Summit.[31]

    8.18 In the meantime, we clear the Communication.


    26   (27132) -: HC 34-xx (2005-06), para 16 (1 March 2006). Back

    27   Mercosur or Mercosul (Spanish: Mercado Común del Sur, Portuguese: Mercado Comum do Sul) is a Regional Trade Agreement between Brazil, Argentina, Uruguay, Venezuela, and Paraguay, founded in 1991 by the Treaty of Asunción, and amended and updated by the 1994 Treaty of Ouro Preto. Its purpose is to promote free trade and the free movement of goods, peoples, and currency. Back

    28   A term coined in 2003 by Goldman Sachs for the rapidly emerging economies of Brazil, Russia, India and China. See http://www2.goldmansachs.com/insight/research/reports/report6.html.  Back

    29   The "Unión de Naciones Suramericanas" - UNASUR - was formally established at a Summit in Venezuela in April 2007. Back

    30   See (27132) -: HC 34-xx (2005-06), para 16 (1 March 2006). Back

    31   Ibid. Back


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