* TV COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 23.10.1995 
COM(95)495 final 
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 
THE EUROPEAN UNION AND LATIN AMERICA 
THE PRESENT SITUATION AND PROSPECTS FOR CLOSER 
PARTNERSHIP 
1996-2000 

TABLE OF CONTENTS 
INTRODUCTION 1 
I. STRATEGIC INTEREST OF STRONGERTIES BETWEEN THE EUROPEAN UNION1 AND 
LATIN AMERICA2 2 
1. FACTORS MILITATING IN FAVOUR OF CLOSER TIES BETWEEN THE 
EUROPEAN UNION AND LATIN AMERICA 2 
2. THE EUROPEAN UNION MUST FIND A COMPREHENSIVE SOLUTION TO THE 
CHALLENGES OF THE TWENTIETH CENTURY 4 
3. IN THE LIGHT OF THE PROGRESS MADE AND THE CHALLENGES 
REMAINING, EUROPES PRESENCE IN LATIN AMERICA IS MORE 
NECESSARY THAN EVER 4 
II. THE STATE OF RELATIONS BETWEEN THE EUROPEAN COMMUNITY AND LATIN 
AMERICA 5 
1. SUBSTANTIAL PROGRESS IN THE POLITICAL DIALOGUE 5 
2. THE UNION'S COOPERATION POLICY FROM 1990 TO 1995 AS REFLECTED 
IN THE SCALE OF ITS AID EFFORT 5 
3. NEED FOR TRADE AND ECONOMIC AND TECHNOLOGICAL EXCHANGES TO 
BE DIVERSIFIED 7 
4. RECENT DEVELOPMENTS: A REGIONAL AND COUNTRY-BASED 
APPROACH TO RELATIONS BETWEEN THE TWO REGIONS 9 
III. PATHS TO CLOSER PARTNERSHIP WITH LATIN AMERICA 10 
1. WHAT DOES LATIN AMERICA REPRESENT IN THE WORLD TODAY? 10 
2. A MULTIFACETED CONTINENT: THE EUROPEAN UNIONS RESPONSE 11 
3. STRATEGIES TO BE EMPLOYED 12 
The term "European Union or Union" is used throughout the text for the sake of simplicity. This is whithout 
prejudice to the powers of the European Community to adopt, at later stage, some legal acts concerned. 
Translator's note: this footnote does not apply to the English language version. 
U 

INTRODUCTION 
The five-year period (1991-95)3 during which the guidelines for the EuropeanCommunitys cooperation with 
Latin America have been put into practice has coincided with radical change in the subcontinent and Europe. 
Courageous efforts have brought almost all Latin American countries back into the democratic fold. New, 
more rigorous and sustained economic policies marked by increasing liberalization and a desire for greater 
integration into international markets have led to a resurgence of growth for the entire subcontinent making 
it an "emerging" regional economy. 
Much has been done at the political, trade and cooperation levels to strengthen the Union's ties with Latin 
America. 
The San José dialogue launched with the Central American countries in 1984 was followed by the dialogue 
with the Rio Group formally instituted in 1990. The most recent meetings, held in Sâo Paulo in April last year 
and Paris in March of this year, have highlighted the new climate of partnership now reigning in relations 
between the two regions. Another manifestation of this was the adoption by the Council on 31 October last 
year, under the influence of the German presidency, of the basic document on relations between the European 
Union and Latin America and the Caribbean, in which the Union offered to work with these regions to build 
a new partnership. 
Successive European Councils - Corfu and Essen last year and Cannes this year - have stressed the need 
for closer relations with Mercosur, Mexico and Chile. These issues are now the focus of sustained attention 
from the Community institutions, with the Commission sending the Council and Parliament a series of 
communications concerning Latin America.4 
It is against a backdrop of stronger partnership that cooperation between the Union and Latin America has 
been diversified and refined to meet the new needs of a highly heterogenous subcontinent seeking to 
consolidate the democratic process, the quest for international competitiveness and endemic poverty and 
social inequalities. 
Analysing relations between the two regions and taking stock of cooperation over the last five years, this 
communication outlines proposals aimed at deepening relations between the Union and Latin America in the 
run-up to 2000. 
COM(90) 176 final of 11 June 1990 entitled "Guidelines for cooperation with the developing countries of Latin 
America and Asia". 
COM(94) 428 final of 19 October 1994 entitled 'The European Union and Mercosur an enhanced policy"; 
COM(95) 003 final of 8 February 1995 entitled 'Towards closer relations between the European Union and 
Mexico"; COM(95) 232 final of 31 May 1995 on the strengthening of relations between the European Union and 
Chile; COM(95) 219 final of 16 June 1995 on support for regional economic integration among developing 
countries. 
1 b 
I. STRATEGIC INTEREST OF STRONGER TIES BETWEEN THE EUROPEAN UNION AND LATIN 
AMERICA5 
Historical and cultural factors have combined with recent developments on the international scene, mutual 
interest and effective and geniune a international solidarity to provide a firm basis for a convergence that will 
enable the Union and Latin America to strengthen their relations and take concerted action to deal with the 
international and regional challenges of the years ahead. 
"Latin America" is a familiar but ambiguous term the peoples concerned, some 450 million at present, are not 
exclusively of Latin origin. Depending on who is using it the term can be given a broad or narrow gloss, 
encompassing language, history, geopolitics and civilisation or religion. It also expresses a regional unity 
attributable to a shared development model. Yet alongside this unity, so stoutly advocated by Bolivar in the 
last century, there exists the subcontinent's remarkable heterogeneity. 
Latin America is both uniform and diverse; it calls for the Union to vary its approaches, tailoring them to 
national and regional circumstances. 
1. FACTORS MILITATING IN FAVOUR OF CLOSER TIES BETWEEN THE EUROPEAN UNION AND 
LATIN AMERICA 
1.1 Historical and cultural factors 
Latin America's cultural identity is heavily imbued with the values that shaped Europe's character and history. 
Five centuries of uninterrupted relations between the two regions have caused European ideals to permeate 
to the core of Latin American societies, which have in turn exercised an irresistible pull on the old continenL 
Constitutions, legal principles and ideas of liberty and democracy found across Latin America are drawn from 
the body of philosophical and legal concepts that are Europe's heritage. 
As a melting pot for immigrants, Latin America has forged a rich identity from the contributions of a number 
of countries and indigenous civilizations. European, and in particular Latin, roots^have helped mould the 
identities of these countries. 
This century has seen the countries of Latin America move, sometimes painfully, along the road to 
representative democracy and economic liberalization. They have been subjected to a variety of influences: 
Spanish and Portuguese, French, Italian, British and, more recently, North American. 
1.2 A more favourable political climate 
Political progress has been considerable: 
The rule of law and the consolidation of democratic institutions are enjoying increasing support from 
civil society, even if some aspects remain fragile. 
The conflicts that long ravaged Latin America have given way to peace processes and the 
resettlement of displaced persons, returnees and demobilized soldiers. 
Moves towards subregional integration have resumed forcefully and pragmatically. 
Latin America's return to democracy and stability is conducive to the forging of stronger links with Europe. 
1.3 Economic growth makes Latin America a dynamic new focus for trade and investment 
The radical economic changes under way in Latin America are factors for convergence with Europe. Wiereas 
Latin America was at the forefront of world growth from the 1950s to the 1970s, the 1980s were a period of 
recession and great economic instability. With its stabilization and structural adjustment policies and its 
This paper concerns relations between the Union and the countries of South and Central America, Mexico and 
Cuba. It does not concern the Caribbean ACP countries (including Guyana, Suriname and Belize). 
improving macroeconomic data, the 1990s have created the conditions for development and growth. The 
turnabout has been fostered by three key factors: the reduction in the extemal debt burden, the improvement 
of public finances and the return of foreign investors. After several years of steady growth, Latin America's 
economies are undoubtedly on their way out of the crisis, even if their fragile structures mean that there are 
still risks. It is in Europe's interest to take part in this process of growth, to help the reforms take root and 
reduce the risks of instability engendered by strong social tensions. 
1.4 Rigorous macroeconomic policies remain necessary 
This new spurt of growth has its downside, not benefiting all countries or sectors of the economy and society 
equally. (Recent difficulties in some countries bear this out) The prospects for the growth of the Latin 
American economies and their full integration into world trade will remain bright as long as the countries 
concerned carry out rigorous macroeconomic policies and, to differing degrees, press on with their structural 
reforms. The role of the World Bank and the IMF in this will remain crucial. It is important that the European 
Union's actions should be compatible with, and reinforce, stabilization and structural refomi programmes. Only 
on these conditions, which will in particular be reflected by a rise in the level of domestic savings (the 
foundation on which any rise in the rate of investment is predicated),6 will Latin America be able to resume 
its rightful place on the international markets. 
1.5 The relaunch of Latin American integration is helping revitalize trade, improve competitiveness and 
develop new opportunities, so enabling the countries of the region to play a greater role on the 
international stage 
Integration in Latin America is racing ahead as a result of the revival or establishment of new regional 
groupings. This is a symptom of the opening-up of these countries and their return to competitiveness in the 
world economy, hence the concept of "open regionalisnf developed by the Economic Qjmrnission for Latin 
America (ECLA). This process has spawned a significant increase in intraregional trade. Moreover, demand 
generated by the development of new infrastructure is making the region increasingly attractive to investors, 
and in particular European investors. Increasing integration (in the Rio Group, NAFTA Mercosur, the Andean 
Pact or the Central American Common Market) should enable the Latin American countries to be more 
consistent in their positions and to defend their common interests better in international forums (most are 
already members of GATT and the new WTO). Greater integration will also help foster the institutional 
dialogue on political and trade issues with European Union partners. 
1.6 A new international context conducive to closer relations between the European Union and Latin 
America 
The international situation is currently shaped by two parallel and contradictory trends; one is the globalization 
of trade and the other a fragmentation attributable to a certain return to traditional values. 
Given that both Latin America and the Union are open to the globalization of trade, both have an interest in 
strengthening relations and further refining the complementarity of their economies. Latin America is seeking 
to diversify its outlets and sources of supply, technologies and capital, and to secure the cooperation of 
partners able to provide constructive assistance. Europe, for its part, is striving to consolidate and improve 
its trading and technological position in a region with strong growth potential. 
The opportunity for forming a deep-rooted relationship and effective partnership should not, however, be seen 
solely in terms of economic expediency. It also depends on cultural and geopolitical factors that lead to a 
meeting of minds and highlight shared values. 
For the sake of comparison, the ratio of private investment to GDP in the period 1990-93 stood at 33.5% in Asia 
and 20.5% in Latin America (Source: IMF). 
Political dialogue, which has already been formally instituted with the Rio Group and Central America, is now 
being developed further to take account of Latin America's increased clout on the international stage. 
The conclusion of the Uruguay Round and the strengthening of the multilateral trading system should have 
a beneficial effect on the development of relations between the two regions, leading to an increase in trade 
and a diminution in certain difficulties encountered in the past. This new climate will in particular increase the 
scope for economic and industrial cooperation. 
Finally, the fight against international organized crime, in particular drug trafficking and fraud at world-wide 
level, raise a œmmon challenge and the necessity for enhanced cooperation. 
2. THE EUROPEAN UNION MUST FIND A COMPREHENSIVE SOLUTION TO THE CHALLENGES 
OF THE TWENTIETH CENTURY 
While facing up to issues of economic competitiveness and global political stability, the European Union must 
go on "deepening" and "widening". 
It bears special responsibility in the transition under way in Central and Eastern Europe. Likewise, Europe 
is neither willing nor able to achieve the goals it has set itself without an active policy towards the countries 
of the South, that is to say the Mediterranean,7 which is particularly important both economically and because 
it is so close, the countries of Asia8 and those of the ACP. 
The Union must also have a presence in the world's emerging regions, of which Latin America is one. 
3. IN THE LIGHT OF THE PROGRESS MADE AND THE CHALLENGES REMAINING, EUROPE'S 
PRESENCE IN LATIN AMERICA IS MORE NECESSARY THAN EVER 
Latin America has made remarkable progress in many areas, but these efforts must be continued and 
consolidated. 
The sweeping reforms remain to be completed. The modernization of the production apparatus and the level 
of savings are still inadequate. Economic structures remain polarized: Latin America suffers crass social 
inequalities and considerable areas of exclusion.9 During the years of crisis (the "lost decade"), inequalities 
were accentuated, what welfare systems there were deteriorated and extreme poverty grew. Despite the 
economic recovery, unemployment affects a large part of the population and the informal sector is growing 
steadily. Given the endemic poverty and the marginalization of part of the population, much still needs to be 
done to ensure a better distribution of the income from growth and the subcontinent's return to 
competitiveness in the world economy. In order to tackle these problems, Latin America must draw primarily 
on its own resources. It must also secure the solidarity and cooperation of its international partners. 
As the century nears its end, Latin America must rise to three challenges: 
It must consolidate the rule of law by making the democratic process irreversible at institutional level. 
It must move quickly to narrow yawning social gaps ("the social deficit") by addressing the problem 
of poverty and inequality. 
It must complete its economic reforms and boost its international competitiveness. 
Building on its constructive role in the peace processes, regional integration and development cooperation, 
the Union can and should restate its desire to be one of Latin America's main partners. It has cooperation 
instruments that can help resolve the problems facing Latin America. 
COM(95) 72 final of 8 March 1995 on strengthening the Mediterranean policy of the European Union: proposals 
for implementing a Euro-Mediterranean partnership. 
COM(95) 314 final of 27 July 1994 entitled 'Towards a new Asia strategy". 
ECLA reckoned that 46% of Latin America's population, some 200 million people, were living below the poverty 
line in 1990. 
II. THE STATE OF RELATIONS BETWEEN THE EUROPEAN UNION AND LATIN AMERICA 
1. SUBSTANTIAL PROGRESS IN THE POLITICAL DIALOGUE 
The steadily improving quality of political relations between the European Union and Latin America over recent 
years is borne out by the institution of a formal regional and sub-regional political dialogue. 
1.1 Institutionalized dialogue 
Institutionalized political dialogue has created stable machinery for consultations between the Union and Latin 
America. 
Thanks to the San José dialogue, the Union has since 1984 played a major part in the peace process and 
democratization in Central America. This forum continues to offer the Union a valuable channel for its efforts 
to foster peace, human rights, stronger institutions, rehabilitation and economic development in these 
countries. 
Launched in 1990, the dialogue with the Rio Group has gone from strength to strength. The joint declaration 
adopted at the fourth ministerial meeting, held in Sâo Paulo in April last year, underiines the climate of 
partnership that now characterizes relations between the two regional groupings. 
1.2 Interparliamentary meetings 
Since 1974, biennial meetings between the European Parliament and its Latin American counterpart Pariatino 
have also enabled the two regions to develop a political dialogue on common issues. These conferences are 
particularly important as a way of bolstering the parliamentary dimension of Latin American integration and 
consolidating the rule of law in the countries concerned with the backing of MEPs. 
1.3 Cooperation agreements 
The numerous cooperation agreements signed with Latin American countries since 1990 have replaced the 
less ambitious agreements of the 1970s and 1980s. Cuba is now the only Latin American country not covered 
by one of these "third generation" agreements, which mark a new stage in the Union's relations with Latin 
America. The introduction of the "democratic principles" clause safeguards the fundamental principles derived 
from a heritage of common values. Similarly, the "future developments" clause enables the contracting parties 
to expand and step up their cooperation. 
2. THE EUROPEAN COMMUNITY'S COOPERATION POLICY FROM 1990 T01995 AS REFLECTED 
IN THE SCALE OF ITS AID EFFORT 
The European Community's aid to Latin America has been considerable in both quantitative and qualitative 
terms. A great number of operations have been carried out to relieve the most pressing social problems, to 
safeguard the transition to democracy and institutional reorganization, and to foster economic cooperation with 
the subcontinent. 
VWiile further developing cooperation intiaditional sectors, newspheresof activity and operating methods have 
laid the foundations for partnership between the Union and Latin America in the twenty-first century. 
(2) 
2.1 The European Union is Latin America's largest source of official development aid (PDA) 
The Union's already substantial development aid to Latin America has increased rapidly in the 1980s and 
1990s: the combination of contributions from the Member States and from the Community budget make the 
Union the largest single source of ODA to Latin America. In 1993 it accounted for 61.5% of all ODA to Latin 
America, exceeding by far the combined shares of Japan and the United States.10 
Since 1976, over ECU 3 billion in Community budget resources has been spent on ODA to Latin America. 
Last year commitments totalled ECU 464 million, an increase of 47.7% on the ECU 314 million committed in 
1991. On top of this, the European Investment Bank (EIB) extended its sphere of operations in 1992 to 
encompass the Asian and Latin American countries: in 1993 and 1994 the Bank made loans totalling 
ECU 131 million to Latin America, a figure expected to rise to ECU 207 million this year. 
2.2 Content of Community cooperation 
Even if financial and technical assistance continues to play a predominant role under the general guidelines 
drawn up by the Community institutions for the period 1991-95,11 new areas of cooperation and improved 
methods have helped meet the needs of cooperation between the Community and Latin America. 
2.2.1 Further development of cooperation in traditional sectors 
The cooperation established in the mid-1970s has been further developed, especially in the following sectors: 
Humanitarian aid: Major operations have been conducted in the areas of food aid, emergency aid, 
aid to refugees and displaced persons in Central America and aid to NGOs. 
Rural development programmes: Accounting for the lion's share of aid, these schemes remain crucial 
in view of the impact of farming on economic and social development and the needs of small 
farmers. 
Regional integration: Support continues for the Andean Pact and the Central American integration 
process, while the signing of an interinstitutional cooperation agreement between the Commission 
and Mercosur is making itself felt in matters of standards, customs and agriculture. 
Development of marine ressources sector bearing in mind the experience acquired in the 
framework of the agreement relative to fishing between EC/Argentina12, the EC will consider, 
in the long run, the setting of an original agreement network qualified as "second generation 
agreement", with other latin american partners, in agreement with the Convention of SeaRights, 
the EC already affirmed its will to participate actively in the setting up of regional organisation in 
order to secure long lasting conservation of marine ressources in the South Atlantic ocean and, if 
possible, in the Pacific. 
12 This figure is based on IRELA data and includes the contributions of the Union's three new Member States. 
See Council Regulation (EEC) No 443/92 on financial and technical assistance to, and economic cooperation 
with, the developing countries in Asia and Latin America. 
This agreement includes, together with the access to ressources, a substantial cooperation chapter, that covers 
various aspects linked to the field of marine fishing, particularly where marine ressources are concerned. 
2.2.2 New spheres of activity 
Since the early 1990s new spheres of cooperation have been opened up, with a greater emphasis on long-
term and sustainable development and the use of instruments which promote economic modernization. These 
areas include: 
Democratization and human rights: recent years have been marked by the democratic transition in 
Latin America. The Union has been particularly active in promoting the rule of law and the 
participation of civil society in the development of a culture of human rights. 
Financial and technical assistance has been heavily concentrated on urban projects and programmes 
(notably support for the informal sector), schemes to promote women's fundamental rights and 
freedoms and their full integration into the development process, and projects aimed at improving the 
living conditions of indigenous peoples and respect for their cultural identity. Education and training 
have also been a priority,13 as have projects and programmes to protect the environment 
(management of tropical forests,14 urban pollution etc.) in line with the Union's commitment to 
earmark at least 10% of aid to Latin America for environmental projects. 
In spite of the limited resources available for economic cooperation, support for activities of mutual 
interest has increased considerably in relative terms, with a substantial increase in demand from 
Latin America.15 The same is true of cooperation in the field of science and technology, which has 
increased appreciably since 1980. 
2.2.3 New methods 
Diversification of partners: Though government institutions remain key partners in the recipient 
countries, decentralized cooperation has led to a diversification of partners via the establishment of 
networks drawn from civil society. 
Country and sectoral strategies: These are now being systematically drawn up in order to tailor 
programmes to the complex and specific circumstances of each country.legion or sector. 
Horizontal programmes: Embracing all Latin American countries, they have been designed to raise 
the profile of Community operations and to improve their consistency.16 
Systematic evaluation of Community-financed operations is intended to improve the quality of the 
assistance offered. 
3. NEED FOR TRADE AND ECONOMIC AND TECHNOLOGICAL EXCHANGES TO BE DIVERSIFIED 
Compared with other regions of the world, Latin America faces structural difficulties in increasing and 
diversifying its exports in the mediurrvterm. These are primarily attributable to the impact of import substitution 
policies, a failure to diversify exports, a reduction in farm products' share of world trade, the subcontinent's 
still-limited savings and investment ratio and an inadequately skilled workforce. All this makes the 
development of trade relations with Europe of vital importance. 
13 
14 
15 
16 In particular the programmes Rio Force (regional training centres for administrators), ALFA (promotion of 
university exchanges) and CEFIR (training centre for regional integration). 
E.g. the 1991 pilot project on the conservation of tropical forests launched in Brazil by the Commission, the 
Brazilian government, the Wxld Bank and the G7 countries. 
These include ECIP and AL-lnvest which have been bringing firms closer together since 1988 and 1994 
respectively. 
See ALFA AL-lnvest and ALURE. 
3.1 A flourishing trading partnership 
With trade between them totalling about ECU 45 billion in 1993, the Union and Latin America are major trading 
partners. The Union's exports to Latin America have increased spectacularly, rising by 41% over the period 
1990-93, rrakingitfheworkfstastestgrcvrir^ Yet trade between the 
two regions remains lopsided. 
3.2 Trade imbalances 
For Latin America as a whole the Union is the second biggest trading partner and for eight of the 
subcontinent's countries the largest.17 In an average period, trade between them accounts for over 20% of 
Latin America's imports and exports. In contrast, Latin America occupies a relatively modest place in the 
Union's external trade (less than 5% of the total). 
The very structure of this trade shows the marked contrast between the two regions: 
Industrial goods account for almost 90% of the Union's exports to Latin America 
Latin American exports to the Union are mainly made up of commodities, raw materials and fuel, with 
manufactures at present accounting for only 23% of the total. 
For a long time the Union had a major structural trade deficit with Latin America, but this became a surplus 
in 1993. 
3.3 The European Union has done much to counter these imbalances and promote Latin American 
exports 
Under the system of generalized preferences (GSP), Latin America has been granted concessions on 
industrial, tropical and farm products. Renewed in 1995, the GSP was accompanied by special arrangements 
designed to encourage the Andean and Central American countries and Venezuela in their campaign against 
drugs. Some aspects of the new system could be of particular help to Latin America, among them the 
environmental clause encouraging sustainable forest management, which could improve sales of timber 
products. Similarly, the CAP exempts certain crucial agricultural products from customs duties. The farm-
trade provisions of the GATT strengthen and amplify the reform of the CAP, opening up new opportunities for 
Latin American exports in many sectors. Lastly, the Multifibre Arrangement will be phased out within ten 
years. 
Many trade promotion schemes have been financed in the course of cooperation with a view to improving the 
quality of Latin American products or identifying promising export markets. 
Since 1992 high-level meetings on trade have been arranged to coincide with the Rio Group's ministerial 
meetings. 
3.4 The next ten years could see a sizeable increase in trade for both partners 
Efforts at multilateral and European level - combined with the increasing impact of Latin American reforms 
aimed at modernizing the production apparatus - should improve international competitiveness and bring about 
an increase in trade between Latin Arherica and the Union. The substantial trade sections of the forthcoming 
agreements with Mercosur, Mexico or Chile are bound to boost trade between the two continents. 
The Union is the main export market for Brazil, Chile, Panama and Peru and the main non-Latin American export 
market for Argentina, Bolivia, Paraguay and Uruguay (Source: European Commission). 
8 
3.5 Increased European investment in Latin America 
In the period 1980-89, Latin America received 45.5% of its direct foreign investment from Europe and 43.5% 
from the United States, with Japan a distant third. There is a long history of European investment in Latin 
America. It has tended to be concentrated in the secondary sector, though there has more recently been a 
surge in European investment in the tertiary sector. While many countries now offer favourable conditions, 
new investment has so far been concentrated mainly in Mexico, Brazil and Argentina, whose domestic markets 
offer great potential. Two factors have been pivotal: the privatization process and debt-tbr-eqiity programmes, 
in which European direct foreign investments has played its part. 
4. RECENT DEVELOPMENTS: A REGIONAL AND COUNTRY-BASED APPROACH TO RELATIONS 
BETWEEN THE TWO REGIONS 
Recent European Councils have expressed the need to strengthen relations with Mercosur by negotiating an 
interregional framework agreement and to work towards a formal contractual relationship, with Mexico and 
broader relations with Chile. The basic document on relations between the European Union and Latin America 
and the Caribbean adopted by the Council on 31 October 1994 proposed a new partnership between the 
regions. The aim was to promote, in relations between the Union and Latin America, an approach that was 
either regional or specific depending on the circumstances. The Union has declared its readiness to open 
negotiations that night lead to more ambitious agreements reflecting the economic potential of its partners 
and their progress towards integration.18 This is based on the Council resolution of 1 June 1995, which 
concluded that support for regional cooperation and integration was a major component of the Union's 
development policy and could contribute, as Article 130u of the EC Treaty puts it to "the smooth and gradual 
integration of the developing countries into the world economy". 
The Andean countries 
The Union has a long-standing relationship with the Andean Pact The Member States of the Union 
are the main source of investment in the region: the third generation agreement signed in 1992 with 
the European Community heralds a new era of relations with the Andean countries. The region 
enjoys special GSP treatment aimed at fostering its integration: cumulation of origin means that it can 
export its main products to the Union at zero duty, provided the countries concerned continue their 
efforts against drugs. 
Central America 
1994 marked the tenth anniversary of the highly successful San José Dialogue: through substantial 
humanitarian and development aid and the political dialogue, the Union has contributed to peace and 
democratization in Central America. It is also backing the regional integration process and the area's 
reintegration into the world economy. The partnership between the two regions is based on the third-
generation cooperation agreement signed in 1993. Central America receives more Community ODA 
per capita than the rest of Latin America and its farm products have benefited from special GSP 
treatment since 1992. The Union is going to implement a new strategy taking account of the 
challenges facing the region today. 
Mercosur 
The Union has from the outset backed the efforts of the Mercosur countries (the organization was 
set up in 1991) to set up a new economic grouping. The need has become apparent for a more 
ambitious relationship with this region - for a new framework of partnership which reflects the position 
the grouping has taken up on the world scene and in relations between the Union and Latin America. 
The Commission has therefore been authorized to negotiate an interregional framework agreement 
18 Annex I lists the Community agreements in force. 
19 on trade and economic cooperation with Mercosur as the first step towards political and economic 
association between the two regions. 
Mexico 
The Union is Mexico's second largest export market. Mexico, for its part, is Europe's largest Latin 
American export market. Future relations between the Union and Mexico will be guided by the 
solemn joint declaration of 2 May this year between the Council and the Commission, on the one 
hand, and Mexico, on the other, in which the parties agree to conclude a political, commercial and 
economic agreement in order to develop their relations. 
Chile 
As part of its strategy of opening up to the outside world, Chile has made closer ties with the Union 
a priority. The Union's encouraging response to these overtures is an acknowledgement of Chile's 
potential and the place it has carved out on the international scene, both politically and economically. 
Chile would like to strengthen its institutional links with the Union. 
Cuba 
Cuba seems to be entering a period of change, which the Union is ready to back. To that end, the 
Commission has proposed the initiation of a dialogue aimed at examining the conditions for stronger 
relations with the country19. In spite of the vagaries of politics, the Union has been able to maintain 
continuous relations with Cuba and its experience in supporting democracy in the region makes it 
a key partner for the country. 
Cuba is already receiving humanitarian aid from the Union and is benefiting from a number of 
projects targeted on civil society and economic cooperation and designed to support the economic 
reforms under way in the country. 
COM(95) 306 of 28 June 1995 on relations between the European Union and Cuba. 
10 
III. PATHS TO CLOSER PARTNERSHIP WITH LATIN AMERICA 
By virtue of its political and economic liberalization, Latin America is on the way to radical change: it hopes 
to become one of those forces on the world stage with which the European Union has to seek closer political, 
trading and cooperation partnership. 
As the guidelines laid down for the period 1991-95 near expiry, it is worth considering the content of the 
Union's future relations with Latin America in the light of the experience built up, new opportunities and the 
challenges facing both sides in the fields of trade, investment and cooperation. 
1. WHAT DOES LATIN AMERICA REPRESENT IN THE WORLD TODAY? 
1.1 Latin America is shaping up to be one of the world's emerging regions 
Recent years have shown the full extent of Latin American's potential for expansion, even if that potential 
varies from one country to another and the frailties persist. Analysts nevertheless agree that these frailties 
do not call into question the quasi-general recovery. The major economic and political upheavals experienced 
by the subcontinent and in particular the abandoning of its traditional protectionism in favour of a resolute 
opening-up to the outside world, combine with Latin America's enormous domestic market and considerable 
potential for expansion to make the region a strategic area for investment and the development of trade 
relations. Business has picked up since the early 1990s, with growth rates of 3.2% in the period 1991-93 and 
3.7% last year (ECLA). To be able to appreciate the achievements of the 1990s we have to cast our minds 
back to the difficult times experienced towards the end of the "lost decade". The region's great potential 
should also be underlined, even if there are still obstacles to be overcome, in particular social inequalities and 
the development gap between the different countries. 
1.2 A growing international presence 
Latin America is asserting itself in the international community. The subcontinent and its various component 
parts are trying to reach a stance on current international issues and take advantage of the new opportunities 
opening up before them The multidimensional nature of this international presence shows that Latin America 
is a force to be reckoned with in both economic and political terms: 
America and the Caribbean: Intra-American relations have changed considerably, becoming more 
pragmatic and constructive. This rapprochement is reflected in the signing of the North American 
Free Trade Agreement (NAFTA) by the United States, Canada and Mexico. 
Last December's Americas Summit heralded the introduction of a free-trade area encompassing the 
entirety of the Americas by 2005. 
In the Caribbean, the Association of Caribbean States (ACS) set up last year brings together the 13 
Caricom countries, Cuba and the Group of Three (Mexico, Venezuela and Colombia). 
The growing and increasingly independent role of the Organization of American States (OAS) should 
also be noted. 
The Pacific: Asia's economic expansion is exercising a powerful attraction on the subcontinent which 
in turn represents an area of growing interest for the Asian countries. Chile and Mexico are 
members of APEC (the Asia-Pacific Economic Cooperation Forum), which is seeking to establish a 
free-trade area by 2020. 
Antarctica: Chile and Argentina have a direct interest in the Antarctic and lay claim to parts of it. 
The South Atlantic: Relations between Latin America and Africa are limited, mostly involving Brazil. 
The sweeping political transformation underway in Southern Africa in recent years may lead to the 
development of South-South cooperation. Europe, which has historical ties with both Latin America 
and Africa, could be a catalyst in this process. 
11 
The Panama Canal: It is in our interest to reinforce a future European presence on this major 
international trade corridor linking the two oceans in the years to come. 
Other aspects of Latin America's increasing international presence include: 
its role in disarmament and nuclear non-proliferation;20 
Mexico's accession to the OECDin 1994, which alters the traditional relationship between North and 
South; 
its importance in the stability of the international financial système 
the importance of environmental issues; 
the importance of issues relating to the drugs trade. 
2. A MULTIFACETED CONTINENT: THE EUROPEAN UNION'S RESPONSE 
2.1. 
In spite of a certain cultural and historical unity and a shared development model, the chief characteristic of 
Latin America remains its heterogeneity, which is apparent in: 
the differing sizes of the countries; 
its ethnic and cultural diversity: with communities of European, indigenous (400 ethnic groups), 
African, Asian and Middle Eastern origin, ethnic make-up varies considerably from one country to 
another, ranging from highly European Argentina through mixed-race Brazil to Peru or Guatemala, 
which have large indigenous populations; 
the linguistic diversity: though use of European languages of integration such as Spanish and 
Portuguese predominates, indigenous and other languages are also used; 
religious diversity: though Catholicism continues to predominate, it has been losing ground; 
its very uneven population density, which does not always correspond with the size of the countries; 
the major disparities in levels of economic development - with great differences in per capita GDP, 
ranging in 1994 from USD 502 dollars in Nicaragua to USD 4747 in Argentina (according to the Inter-
American Development Bank) - and income distribution; 
major divergences between human development indicators (UNDP). 
How can Europe step up its presence, given Latin America's multifarious options and the pace of recent 
changes there? 
Enhancing the dialogue between the Union and Latin America and the effectiveness of (Community aid calls 
for an approach that is not only tailored to the various regional institutions but consolidates the overall dialogue 
(Rio Group) and facilitates the subcontinent's increasing integration. Given Latin America's heterogeneity, 
relations between it and the Union will continue to be dominated by an approach that is either regional 
(Andean countries, Central America, Mercosur) or country-based (Mexico, Chile, Cuba). 
This two-pronged approach is the Union's response to Latin America's 'bpen regionalism". This strategy 
should greatiy improve the quafity of relations between the two, allowing greater account to be taken of 
differing national and regional circumstances. 
Such an approach also allows each grouping and/or country to develop its specific potential in its relationship 
with the Union because Oxnmunity cooperation is geared to its partner's level of development Thus, while 
some countries and/or regions will remain major recipients of development aid, other more developed and 
20 Treaty of Tlatelolco banning nudear weapons in Latin America (1967). 
12 
dynamic countries will be valuable partners in activities of mutual interest. This strategy should, within the 
limits of the budget available, make Community cooperation more effective. 
2.2. Financial needs 
VWhin the limits of the budget available, this strategy should increase the effectiveness of Community 
cooperation. To this end, subject to the annual budgetary procedure, the total estimated budget for the period 
1995-1999, is 1,343 million ECU for the heading B7-301 "cooperation with the developing countries of Latin 
America" which includes financial, technical and economic cooperation with these countries, compared with 
the 925 million ECU for the period 1990-1994. Furthermore, Latin America can benefit as do other developing 
regions, from horizontal and/or sectoriaractions for which finance is allocated under title B7 of the Commission 
budget21 (as, for example, food aid, humanitarian aid, help for refugees, NGO actions, actions in support of 
democracy and human rights, actions for promotion of investments (ECIP) etc..) 
3. STRATEGIES TO BE EMPLOYED 
3.1 Tighter political ties 
The new international role acquired by Latin America in recent years calls for a stronger political dialogue with 
the region, something that it is~ moreover, actively seeking. This dialogue will have to be developed at 
subcontinental (Rio Group), regional (Mercosur, Central America, Andean Pact), bilateral (under the country-
based approach) and interparliarnentary levels, in international forums, between the Union and Latin American 
permanent representatives, and at Ibero-American level. The main issues will continue to be peace and 
regional stability, Community support for the democratic process and the defence and promotion of human 
rights. Political dialogue could, however, come to encompass wider issues, such as the development of inter-
American relations (through NAFTA in particular, but also the continents leading player, the United States, 
with which the Union is developing a separate political dialogue), the accession of Chile and Mexico to APEC, 
and - in the case of Mexico - membership of the OECD too, and, lastly, environmentaTissues. This description 
of Latin America's role in the world gives some idea of the multiple opportunities for more productive political 
dialogue between the Union and Latin America on issues of concern to the entire international community (or 
in certain cases Latin America, the Union and the United States); none of this would be to the detriment of 
the institutionalized dialogues (San José, Rio Group) or dialogues with individual countries. Europe could be 
a driving force for Latin America's increasing involvement in the running of international affairs. 
3.2 Room for progress on free trade and integration 
These are crucial issues for the European Union's Latin American partners. The Union is backing the 
reinforcement of the subcontinent's trading, economic and technological capacities and providing institutional 
support for the region's integration process. It possesses a major comparative advantage over the world's 
other economic groupings in the shape of the matchless experience offered by Europe's move towards 
integration. There is strong demand in Latin America to leam from this experience. 
The Union can also stress the fact that the capacity to confront tomorrow's challenges depends on genuine 
integration which, albeit based on free trade and the laws of the market must be backed up by measures to 
guarantee social cohesion and sustainable development 
The agreements to be concluded with Latin America's various integration structures will be backed up by 
regional liberalization measures, in which the private sector will play a major role. 
21 The total amount allocated for the title of these other actions in Latin American countries was 905 million ECU 
for the period 1990-1994 
13 
3.3 Better-targeted, more relevant, innovative and flexible cooperation 
Cooperation (and in particular the quest for sustainable development) remains a cornerstone of the Union's 
strategy towards Latin America. 
Besides the budgetary constraints that will inevitably limit the scope for increases in funding for cooperation 
with Latin America, there are three compelling reasons for focusing new cooperation guidelines on a number 
of strategic priorities. These are: the need to address Latin America's problems, the need to pursue the 
objectives and comply with the procedures laid down in the Union Treaty for cooperation with the developing 
countries,22 and the need to make cooperation more effective and give it a higher profile. 
A new partnership should be established with the subcontinent in order to convert aid recipients increasingly 
into active partners. Given Latin America's problems and Europe's means, it is proposed that the Union's 
cooperation focus on three specific priorities in conjunction with three issues of mutual interest. 
3.3.1 Priorities 
These are a common coniiitnent to democracy, to social development and to international competitiveness, 
which will be pursued by means of aid projects in the different countries. 
Institutional support and consolidation of the democratic process 
The aim is to make the democratic process irreversible by: 
consolidating the rule of law by increasing the efficiency and role of legislative, judicial, police and 
human rights institutions, and fostering good governance, including at local and municipal levels; 
reforming government and backing decentralization via the modernization of central and local 
government tax reforms, the rationalization and efficiency of public services, the management of 
privatized services and vocational training programmes for the staff of state institutions; 
helping with the drafting of sectoral policies (on education, health and rural development for instance) 
through targeted projects aimed at making available the Union's experience in the matter, in the 
sphere of rural development, account should be taken of the changing macroeœnomic situation and 
more attention given to institution building and mobilizing civil society and its know-how. 
Combating poverty and social exclusion 
Here the objective is to tackle the 'social deficit' and bring the people concerned into the market economy. 
Combating marginality, social exclusion and extreme poverty should be the main spending priority for 
development aid in Latin America Special aid programmes will be particularly necessary in the areas of 
health, education and housing. Using integrated approaches conducive to sustainable development such 
activities could, along with Europe's traditional aid projects, be the object of complementary programmes 
involving suitable bodies recruited from civil society in Latin America and Europe. (Community cooperation 
will thereby be putting into practice the action progranine adopted at the Copenhagen Social Summit in 
March. 
Economic development must also be harnessed to social progress, with workers' rights being guaranteed 
through the promotion of the relevant ILO conventions, and in particular those on the abolition of forced and 
child labour, on freedom of association, the right to organize, collective bargaining and non-discrimination. 
Supporting economic reforms and improving international competitiveness 
Mastering macroeconomic variables remains an imperative for Latin America, which is receiving help in this 
regard from the World Bank and the IMF. Community measures should help Latin American countries draw 
on the former's experience in such areas as competition and standards: 
22 See Articles 130u and 130x of Title XVII "Development cooperation". 
14 
There will be support for the development of the private sector and economic cooperation in areas 
of mutual interest and for the promotion of cooperation In the fields of industry, science and 
technology,23 and the information society. The Union will foster the development of trade and 
investment in both directions with a view to furthering the diversification and modernization of Latin 
America's economies and Europe's presence on the subcontinent's emerging markets. The Union 
will encourage these countries to take part in the development of the information society with a view 
to strengthening technological and industrial ties between the regions and tapping the c>pportunities 
offered by new markets to their mutual benefit 
A greater degree of synergy will be sought between industrial cooperation and cooperation on 
science and technology. Latin America needs help to rationalize and coordinate universities' and 
public institutions' research programmes, to link scientific research more closely to private-sector 
technological development and to train those running scientific and technological institutions. 
Cooperation in the field of science and technology can serve these objectives. 
Industrial promotion and investment will be strengthened Rather than creating new instruments, the 
aim here would be to consolidate private-sector partnership programmes such as ECIP or AL-lnvest, 
ensuring their continuity and improving their performance. Cooperation between universities would 
be more directly and actively coordinated with industrial cooperation by the establishment of closer 
contacts between those receiving bursaries and the private sector. 
EIB lending should be stepped up in response to Latin America's massive infrastructure needs. An 
effort should be made to complément the operations of such international organizations as the IDB. 
In order to promote foreign trade, tiie Union must foster freer trade in rxith directions and offer Latin 
American products greater access to its market in order to promote the smooth integration of these 
countries into the world economy, as the Treaty proposes. There will be measures to promote trade 
and diversify exports and markets. 
3.3.2 Horizontal themes 
Vtfien pursuing these cooperation priorities, three horizontal themes should be emphasized: regional 
cooperation and integration, education and training and the management of the interdependence between 
North and South. 
Support for regional cooperation and integration 
As the vehicle for the expansion of markets within the broader framework of intemational liberalization, this 
will have to be reinforced. The results of operations in this sphere have been overwhelmingly positive. It is 
in the Union's interest to respond favourably to growing demand for cooperation in this field so as to 
strengthen and sustain the Latin American countries' efforts in their intraregional relations. 
Education and training 
All must be guaranteed equitable access to education, which is both a key factor in sustainable economic and 
social development and a cornerstone of any democratic society. Besides a number of specific projects in 
the spheres of rural development and democratization, in which education and training are vital components, 
the European Community has been conducting ALFA a major programme of support for national higher 
education systems. Other schemes will, however, be needed in the fields of basic education, literacy, adult 
education, vocational training and technical education, with an emphasis on access to education for 
disadvantaged social groups and teacher training. In the area of science and technology, training through 
research is of paramount importance. 
This cooperation generates mutual benefits and should not just be limited to technology transfers. 
15 
Management of North-South interdependence 
Operations relating to environmental, energy and drugs issues, which call for a long-term œmmitment are 
essential for sustainable economic and social development. 
The environment Environmental considerations must be taken into account in all cooperation policies in 
accordance with Agenda 21 and a special effort made to conserve tropical forests, without neglecting the 
problems of industrial and urban pollution (transport, water supply, waste disposal etc.). European 
technologies could help solve the problems posed by urban and industrial pollution. In the 1991-95 guidelines, 
at least 10% of aid for the Latin American countries was earmarked for the financing and implementation of 
projects directly related to protecting the environment 
Energy Latin America has huge energy potential and is up against considerable challenges in this field. 
Growth forecasts suggest that financing needs will be considerable. Through technology transfers the Union 
can contribute to more rational energy use and assist the development of renewable energy sources. It can 
also help with the drafting of energy policies and the restructuring of the energy sector, in particular through 
the ALURE programme. 
Drugs: The granting of trade concessions by the Union helps countries concerned by the production, 
processing and trafficking of drugs to develop substitute crops. Financing for special development projects 
in the field should be increased.The ministerial dialogue continues between the Union and Latin America on 
cooperation in the judicial field. For that matter, the cooperation effecting the fight against drug trafficking 
should be reinforced. 
Other issues relating to the management of North-South interdependence, such as population, public health 
or transport may be explored. In the case of transport, for example, help could be provided with the 
restructuring and modernization of transport systems in Latin America and the removal of administrative, 
technical and other barriers to the movement of passengers and goods and access to the transport market 
(notably maritime). Additionally, special attention could be given to satellite navigation. 
3.3.3 Suitable management methods 
The European Union already possesses a wide range of options for handling the manifold needs generated 
by the sheer diversity of Latin America; these options should be focused on the key themes and priorities in 
order to achieve an optimal combination of existing resources and instruments (policy mix) and to improve 
bilateral aid programming, be it by country or by region. The strategic guidelines for each country will be 
regularly updated and sectoral guidelines systematically drawn up, setting out the most appropriate ways of 
dealing with the priorities and horizontal issues. 
Need for more effective Community operations 
Budgetary constraints demand that development programmes have a real impact Their sustainability must 
be guaranteed by actively involving the recipients at every stage and seeking (xirnpteirentaritiescr cofinancing 
not only with the Latin American countries and the Member States but with intemational donors, and in 
particular the IDB. The coordination efforts and dialogue established in certain multilateral forums (OECD or 
UNCTAD) will be accorded all due interest. 
Need for better coordination with the Member States 
In line with Article 130u of the Treaty, joint efforts - in terms of coordination and the financing of activities with 
the Member States involving European operators and groupings - should significantly improve the quality of 
programmes and enable the resources available to be used to greater and more visible effect There should 
also be a greater effort to promote the (Community's achievements in the region and provide more information, 
especially at local level. The fact that the combined contributions of the Member States and the Commission 
make the Union the largest single donor to Latin America gives Europe a considerable edge in quantitative 
terms. The first thing to do is to identify the priority fields for coordination, which should be centred on the 
three main priorities and the three horizontal themes of common interest outlined above. Measures should 
16 
be taken at all levels tomake operations conducted in the course of cooperation between Latin America and 
the Union more visible. 
There is increasing convergence between the Member States' cooperation and that of the Community: making 
the most of limited resources, maintaining substantial traditional development aid to some countries and 
expanding economic, scientific and technological cooperation with other, more advanced countries, attaching 
increasing importance to democratization and human rights, the environment women in development, 
indigenous minorities etc. 
Decentralized cooperation 
Civil society in the European Union and Latin America could come to play a more active role in the new 
partnership on offer. Decentralized cooperation should therefore be encouraged and defined within action 
programmes governed by clear operating guidelines (e.g. cofinandng). Many different agencies (e.g. town 
councils, regional administrations, firms, trade associations, universities and NGOs) would thereby be enabled 
to contribute actively to the process of development cooperation. 
Concentration of operations within horizontal multiannual programmes 
Though there will always be a need for tree-standing projects and one-off operations, it would seem advisable, 
once the priorities and horizontal themes have been identified and the focal areas for aid targeted, to plan 
multiannual horizontal programmes with a broad multiplier effect along the lines of those that have been 
carried out in the sphere of economic cooperation (ALFA AL-lnvest ALURE), so giving the Union a higher 
profile without neglecting the South-South dimension. 
3.4 Need for greater familiarity and understanding 
Achieving greater familiarity and understanding is another area of common interest There should be backing 
for activities that raise the profile of one region in the other, thus enhancing mutual understanding between 
the peoples of Europe and Latin America It is to be regretted that many Latin Americans still have a biased 
view of Europe, in which the notion of a protectionist continent prevail, just as some circles in Europe have 
an often inaccurate or stereotypical idea of the subcontinent showing little or no understanding of the rapid 
changes of recent years. 
The new partnership proposed In this paper demands that the European Unicfi and UtinAmerkxigrt to know 
each other better in order to improve their mutual understancfng, dialogue and cooperation. 
Though Europe is known and recognized as a partner in Latin America, notably through its Member States, 
much remains to be done to raise the profile of relations and, above all, cooperation between the regions. 
There should be an emphasis not only on increasing the flow of information, but above all on stepping up the 
involvement of civil society in cooperation programmes. To do so, development agents should be made more 
aware of the need to step up cooperation between the Union and Latin America and of the part they can play 
in order to breathe new life into the long-standing relationship between the two regions, making it an active 
and genuine partnership. 
17 
ANNEXES 
Il Latin America -keydata 
12. Health in l^nAmerica 
13. Education in Latin America 
II. European Ccmmunity - Latin America: institutional relations 
1111. Trade between the EU and Latin America 
III 2. Trade: EU and Latin America 
III 3. Development of trade by sector between the'EU and the principal regional Latin American 
groupings (million ECU) .. J i 
IV1. Latin America's-share in internaticf»al irrvestrnent flows 
IV 2. Direct foreign investment flows to Latin America and the Caribbean 
IV 3. ELTs share of official aid for develorjmeht for Latin America ~~ '. 
VI Development cooperation of the European Community in Latin America 
V2. Commitments (all budget heading^) for Latin Am 
V 3. Commitments for Latin America (1990-94): evolution 6f the three specific budget lines 
VI. Cooperation between the European Community and Latin America from 1996 to 2000. Priorities 
proposed: budgetary lines available. 
If 
ANNEX 1.1 : LATIN AMERICA - KEY DATA 
KEY DATA 
LOCALISATION POPULATION 
in millions 
I of inhabitants 
j 
i (1993) 
(W.B.) GDP 
per 
capita 
inUSS 
(1994) 
(IDB) AVERAGE ANNUAL 
GROWTH RATE AS % 
1970 à 1980 1980 à 1993 TOTAL EXTERNAL 
DEBT(compared to GDP) 
as % 
(1990) 
(W.B.) (1993) 
(W.B.) Service of Debt as a % 
of Exports 
(1980) (1993) RATE OF INFLATION 
(Annual Average) 
(1970-1980) (1980-1993) 
(W.B.) (W.B.) 
~_r> IM 90,0 2.284,0 6,3 1,6 40,0 32,8 48,1 31,5 18,1 57,9 
Costa-Rica 
El Salvador 
Guatemala 
Honduras 
Nicaragua 
Panama 3,3 
5,5 
10,0 
5,3 
4,1 
2,5 1.860,0 
1.186,0 
950,0 
788,0 
502,0 
2.419,0 3,6 
4,2 
5,8 
5,8 
1,2 
1,3 2,5 
1,6 
1,7 
2,9 
-1,8 
1,8 59,9 
28,4 
35,2 
104,7 
741,6 
136,9 48,1 
21,0 
22,4 
101,2 
695,4 
101,6 .29,1, 
7,5 
7,7 
21,4 
22,3 
6,3 18,1 
14,9 
13,2 
31,5 
29,1 
3,1 15,3 
10,7 
10,5 
8,1 
12,6 
7,7 22,1 
17,0 
16,8 
8,2 
644,6 
2,1 
PBHHHHl 
Bolivia 
Colombia 
Ecuador 
Peru 
Venezuela 7,1 
35,7 
11,0 
22,9 
20,9 1.033,0 
1.598,0 
1.347,0 
1.496,0 
3.482,0 4,5 
5,4 
9,5 
3,5 
3,5 1,1 _, 
3,7 
2,4 
-0,5 
2,1 67,8 
44,4 
118,3 
64,0 
62,7 61,9 
32,3 
98,8 
46,1 
62,6 35,0 
16,0 
33,9 
n.d 
27,2 59,4 
29,4 
25,7 
n.d 
22,8 21,1 
22,3 
13,8 
30,1 
14,0 187,1 
24,9 
46,4 
316,1 
23,9 
Argentina 
Brasil 
Paraguay 
Uruguay 33,8 
156,5 
4,7 
3,1 4.747,0 
2.120,0 
1.573,0 
3.168,0 2,5 
8,1 
8,5 
3,1 0,8 
2,1 
2,8 
1,3 45,6 
23,7 
36,8 
54,2 28,6 
26,3 
20,4 
54,3 37,3 
63,1 
44,5 
18,6 46,0 
24,4 
58,7 
14,9 134,2 
38,6 
12,7 
63,7 374,3 
423,4 
25,0 
66,7 
\cH\wmmEmmmmm 13,8 13.130,01 1,8 i 5,1 \ 64,1 i 44,7 i 43,1 j 23,4 i 186,2 i 20,1 1 
Sources : The World Bank Atlas -94-
BID/Rapport Annuel 94 (pour indicateurs de 94) 
BID/Progreso Economico y social en AL • Informe 94 (pour ind. de 93) 
CEPAUBalance preliminar de la economia de AL y el Caribe - 94-
World Development Report -95-
ANNEX 1.2 
HEALTH IN LATIN AMERICA 
6 Argentina 
Bolivia 
Brasil 
Colombia 
Costa Rica 
Chili 
Cuba 
Ecuador 
El Salvador 
Guatemala 
Honduras 
Mexico 
Nicaragua 
Panama 
Paraguay 
Peru 
Uruguay 
Venezuela 1970 
530 
1970 
2030 
2260 
1620 
2160 
-
2870 
4100 
3660 
3720 
1480 
2150 
1630 
2300 
1920 
910 
1130 1993 
-
-
-
-
-
2150 
-
960 
-
-
2330 
-
1490 
-
1260 
940 
-
640 1970 
52 
153 
95 
77 
59 
77 
-
100 
103 
100 
110 
72 
106 
47 
57 
116 
46 
53 1993 
24 
73 
57 
36 
14 
16 
-
49 
45 
46 
41 
35 
51 
24 
37 
63 
19 
23 1993 
27 
114 
63 
44 
16 
17 
-
57 
60 
73 
56 
43 
72 
28 
46 
92 
21 
24 1993 
72 
60 
67 
70 
76 
74 
76 
69 
67 
65 
68 
71 
67 
73 
70 
66 
73 
72 
Source : Rapport sur le développement mondial -1995- Banque Mondiale 
ANNEX 1.3 
EDUCATION IN LATIN AMERICA 
Ko js»- "wsfSij^ys^j^rt* „^ 
ÉKouninM L ..;..,.. . ; 
Argentina 
Bolivia 
Brasil 
Colombia 
Costa Rica 
Chili 
Cuba 
Ecuador 
El Salvador 
Guatemala 
Honduras 
Mexico 
Nicaragua 
Panama 
Paraguay 
Peru 
Uruguay 
Venezuela *"J.-s^U-iîU » V :lîî>.-îlf'i.' fe :)«|C»jf;-I» s •- . .!„„.„ *); (m 
Total 
1970 
105 
76 
82 
108 
110 
107 
-
97 
85 
57 
87 
104 
80 
99 
109 
- 107 
112 
94 1992 
107 
85 
106 
117 
105 
96 
-
-
78 
79 
105 
113 
102 
106 
110 
119 
108 
99 Feminine 
1970 
106 
62 
82 
110 
109 
107 
-
95 
83 • 
51 
87 
101 
81 
97 
103 
99 
109 
94 1992 
114 
81 
-
117 
104 
95 
-
-
' 79 
73 
107 
111 
104 
105 
109 
-
107 
100 Total 
1970 
44 
24 
26 
25 
28 
39 
-
22 
22 
8 
14 
22 
18 
38 
17 
31 
59 
33 1992 
-
34 
39 
55 
43 
72 
--
-
25 
28 
19 
55 
44 
60 
30 
30 
84 
34 Feminine 
1970 
47 
20 
26 
24 
29 
42 
-
23 
21 
8 
13 
17 
17 
40 
17 
27 
64 
34 1992 
-
31 
-
6 
45 
75 
-
-
27 
-
34 
55 
46 
-
31 ' " 
-
-
40 Total 
1970 
22 
13 
12 
10 
23 
13 
-
37 
4 
8 
8 
14 
14 
22 
9 
19 
18 
21 1992 
43 
23 
12 
15 
28 
23 
. -
20 
16 
-
9 
14 
10 
24 
8 
39 
32 
30 »£©' 4 ^mik 
l-j'%y~~ 
1970 
19 
27 
28 
38 
30 
50 
-. 
37 
37 
36 
35 
46 
37 
27 
32 
35 
24 
35 ^I'lllldi mm?M 
1992 
-
25 
23 
28 
32 
25 
-
-
44 
34 
38 
30 
37 
23 
23 
-
21 
23 Feminine 
1990 
11 
29 
20 
14 
7 
7 
7 
16 
30 
53 
29 
15 
12 
12 
21 
4 
17 Total 
1990 
7 
23 
19 
13 
7 
7 
6 
14 
27 
45 
27 
13 
-
12 
10 
15 
4 
8 
Source : Rapport sur le développement mondial -1995- Banque Mondiale 
Annex II 
EU-Latin America institutional relations 
(ongoing institutional ties) 
70/90 1991 1992 1993 1994 1995 
(1) MINISTERIAL 
DIALOGL ÎUES 
an José IX, San îlvadcr San José X, Athens San José XI, Panama San José 
Central America 1984 
Seven meetings: an José VII, anagua San José VIII, Lisbon 
lor 
Rio Group 1990 Rome L. Rome declaration 1st ministerial meeting Santiago 2nd mfniî meeting isterial thirTrnntsterial meeting SapPautp . 4th minif meeting fth ministerial meeting inisterial 
(2) COOPERATION 
AGREEMENTS 
Chile 1990 framework. coop, agreement 
Argentina 1990 framework commerpial and economic L 
agreement Framework agreement on fishenes 
Paraguay framework cooperation agreement 
Uruguay 1973 Trade agreement framework cooperation agreement 
Brazil 1980 framework coop, agreement framework cooperation agreement 
Andean Pact 1983 Cartagena 
1987tntry .into force of cooperation agreement Cartagena agreement framework cooperation agreement 
Rica^ tfSalvador, fonduras, Guatemafc Jicaragua, Panama) 1984 San José, , 
dialogue gets under 
T985 coop. agreement framework cooperation agreement 
Mexico 1975 coop, agreement framework cooperation agreement 
Mercosur I nter-i nstitutional 
cooperation 
agreement 
Sâo Paulo 
EETINGS 3ogota 
ome ogotc Seville 
ssfls siiia Lisbon r 
San José Brussels 
ANNEX 111.1 : TRADE BETWEEN THE EU AND LATIN AMERICA 
DESTINATION OF LATIN AMERICAN EXPORTS 
Brasil 
Panama 
Chili 
Peru 1980 
1st 
EU 
USA 
UE 
USA 2nd 
LA 
LA 
LA 
EU 1992 
3rd 1st 
USA I^^^H EU 
EU •••III EU 
USA ^^^H EU 
LA I^^^B 2nd 
LA 
USA 
LA 
USA 3rd 
USA 
LA 
USA 
LA 
Colombia 
Ecuador 
Mexico 
Venezuela 
Costa Rica 
El Salvador 
Honduras EU 
USA 
USA 
USA 
USA 
LA 
USA USA 
LA 
EU 
EU 
LA 
USA 
EU LA 
EU 
LA 
LA 
EU 
UE 
LA 
Guatemala 
Nicaragua 
Bolivia 
Paraguay 
Uruguay 
Argentina LA 
USA 
LA 
LA 
LA 
EU USA 
EU 
USA 
EU 
EU 
LA EU 
LA 
EU 
USA 
USA 
USA USA I EU [ LA 
USA LA EU 
, USA EU LA 
USA LA EU 
USA EU LA 
USA AL UE 
USA l EU LA 
LA USA I EU 
LA USA EU 
LA EU USA 
LA EU USA 
LA EU USA 
LA | EU USA 
Source : CONTRADE. 
SOURCE OF LATIN AMERICAN IMPORTS 
1980 1992 
Brasil 
Colombia 
Ecuador 
Mexico 
Venezuela 
Costa Rica 
El Salvador 
Honduras 
Panama 
Guatemala 1st 
USA 
USA 
USA 
USA 
USA 
USA 
LA 
USA 
USA 
USA 2nd 
EU 
EU 
EU 
EU 
EU 
AL 
USA 
LA 
LA 
LA 3rd 
LA 
LA 
LA 
LA 
LA 
UE 
EU 
EU 
EU 
EU 
Nicaragua 
Bolivie 
Chili 
Paraguay 
Pérou 
Uruguay 
Argentine AL 
AL 
AL 
AL 
USA 
AL 
UE USA 
USA 
USA 
UE 
UE 
UE 
USA UE 
UE 
UE 
USA 
AL 
US 
AL 1st |2nd |3rd 
USA EU LA 
USA LA EU 
USA EU LA 
USA EU LA 
USA EU LA 
USA AL UE 
USA LA EU 
USA LA EU 
USA LA EU 
USA l LA EU 
AL USA I UE 
AL USA UE 
AL UE USA 
AL UE USA 
AL USA UE 
AL UE USA 
AL l UE | USA 
Source : COMTRADE. 
W 
_£-ANNEX 111.2 
TRADE: EU AND LATIN AMERICA (in billions of ECUs) 
H Imports from Latin America 
D Exports to Latin America 29,9 
16,3 
7,5 7,8 
2,8 3,7 4,9 
M 1,2 \J 13,2 25,4 25,9 
14,6 5,1 24,5 
17,5 * 19,£M 
1960 1965 1970 1975 1980 1985 1990 1991 1992 1993 
Source : EUROSTAT 
ANNEX 111.3 
DEVELOPMENT OF TRADE BY SECTOR BETWEEN THE EU AND THE PRINCIPAL REGIONAL LATIN AMERICAN GROUPINGS 
(in millions of ECU) 
SO REGIONS 
Latin America 
Mercosur 
Andean Pact 
Central America 
Mexico 
Chili SECTORS 
Food products,drink and tobacco 
Raw materials, fuel, oils, fats and waxes 
Industrial products 
Others 
Overall trade 
Food products, drink and tobacco 
Raw materials, fuels, oils, fats and waxes 
Industrial products 
Others 
Overall trade 
Food products, drink and tobacco 
Raw materials, fuel, oils, fats and waxes 
Industrial products 
Others 
Overall trade 
Food products, drink and tobacco 
Raw materials, fuel, oils, fats and waxes 
Industrial products 
Others 
Overall trade 
Food products, drink and tobacco 
Raw materials, fuels, oils, fats and waxes 
Industrial products 
Others '' 
Overall trade 
Food products, drink and tobacco 
Raw materials, fuel, oils, fats and waxes 
Industrial products 
Others 
Overall trade EUROPEAN UNION (1) 
1985 
11.285 
14.746 
118.364 
1.480 
45.875 
7.028 
4.573 
6.694 
602 
18.897 
1.999 
4.665 
4.319 
417 
11.400 
1.227 
274 
1.696 
70 
3.267 
215 
4.635 
2.883 
208 
7.941 
396 
380 
1.679 
84 
2.540 1990 
9.995 
8.405 
21.407 
1.462 
41.270 
5.438 
3.902 
9.041 
577 
18.959 
1.557 
2.098 
3.687 
414 
7.756 
1.212 
180 
1.174 
41 
2.607 
692 
1.632 
4.366 
136 
6.826 
730 
476 
2.402 
167 
3.776 1993 
10.729 
6.751 
27.536 
1.207 
46.223 
5.781 
3.230 
11.968 
386 
21.365 
2.032 
1.735 
4.472 
376 
8.614 
1.154 
177 
1.603 
36 
2.970 
583 
1.018 
6.423 
188 
8.212 
639 
528 
2.477 
117 
3.761 1994 
56.352 
27.692 
10.011 
2.438 
9.385 
4.319 
(1) European Union of 12 
Sources : IRELA, COMEXT-DATABASE,Bruxelles-Luxembourg; IRELA 
ANNEX IV.1 
LATIN AMERICA'S SHARE IN INTERNATIONAL INVESTMENT FLOWS 
1976-80 1981-85 1986-90 1991 
Net flow in Billions of US dollars (annual average) 
Flow of FDI 39,5 43 162,8 184,5 1992 
173,5 1993 
173,4 
All developing countries 
Asia 
Latin America 
Eastern Europe 5,7 
2 
3,5 
0 15,3 
3,8 
4,5 
0 14,6 
5,9 
5,2 
0,2 30,4 
14 
10,1 
2,5 39,9 
19,8 
13,5 
3,4 53,4 
28,5 
17 
5 
Latin America's share in global direct foreign investment 
1976-80 
8,9 1981-85 
10,5 1986-90 
3,2 1991 
5,5 1992 
7,8 1993 
9,8 
— 
Latin America's share in net flow to all developing countries. 
61,4 29,4 35,6 33,2 33,8 31,8 
Source : Bureau des Règlements Internationaux. 
#, 
ANNEX IV.2 
DIRECT FOREIGN INVESTMENT FLOWS TO LATIN AMERICA AND THE CARIBBEAN IN MILLIARDS OF US $ 
25 
20 
15 
10 
E.U USA 
1980-82 JAPAN E.U USA JAPAN 
1990-92 
GROWTH RATE (%l 
120. 
100 
30_ 
6_0_ 
40_ 
20 
0 
z20 
1990-92/1980-82 
Note: Includes FDI flows to offshore centres, which do not allow the true country of origin and destination to be 
determined. Therefore FDI data should be used with caution. 
Source: IRELA, OECD and EU member states 
<2> 
ANNEXE IV.3 
EU PARTICIPATION IN OFFICIAL DEVELOPMENT ASSISTANCE RECEIVED BY LATIN AMERICA 
(based on bilateral ODA, net disbursements) 
1982 
OTHER 
COUNTRIES 
8% 
JAPAN 
13% 
( TOTAL ODA = 1,382 Millions US$ ) E.U ( 649.540 M. $ ) 
47% 
1992 
OTHER 
COUNTRIES 
11% 
JAPAN 
20% 
( TOTAL ODA = 3,741 Millions US$ ) E.U( 2.020,14 M. $ 
54% 
Source : OCDE, Paris 
ott 
ANNEX IV.3(cont.) 
EU PARTICIPATION IN OFFICIAL DEVELOPMENT ASSISTANCE RECEIVED BY LATIN AMERICA 
(based on bilateral ODA, net disbursements) 
1393 
OTHER 
COUNTRIES 
5% 
JAPAN 
19,5% 
( TOTAL ODA = 3,772 Millions US$ ) 
Source : Calculs à partir des données de l'IRELA (sur base des données OCDE/CAD) 
ANNEX V.1 
EC DEVELOPMENT COOPERATION IN LATIN AMERICA 
Distribution by sub-regions and periods (commitments in millions of ECU) 
Central America 
Andean countries 
Mercosur 
Others 
LA region 
TOTAL LA 1976-83 
154,2 
113,1 
10,6 
12,8 
24,1 
314,8 1984-89 
447,8 
361,9 
, 
63,5 
112,2 
37,4 
1022,8 1990-93 
478,1 
429,2 
175,5 
164,5 
106,7 
1354 
Average annual flow by sub-region and periods (in millions of ECU) 
Central America 
Andean countries 
Mercosur 
Others 
LA region 
TOTAL LA 1976-83 
19,3 
14,1 
1.3 
1,6 
3 
39,3 1984-89 
74,7 
60,3 
10,6 
18,7 
6,2 
170,5 _ 
1990-93 
119,5 
107,3 
43,9 
41,1 
26,7 
338,5 
Source: Commission européenne, toutes formes d'aides avec les PVD d'Amérique latine et 
d'Asie. Annexe statistique du 17ème Rapport annuel. Bruxelles, le 20 octobre 1994 
30 
ANNEX V.2 
FINANCIAL COMMITMENTS FOR ALL BUDGETARY LINES IN FAVOUR OF LATIN 
AMERICA (1990-1994) 
CO 500.000.000,00 
450.000.000,00 
400.000.000,00 
350.000.000,00 
300.000.000,00 
250.000.000,00 
200.000.000,00 
150.000.000,00 
100.000.000,00 
50.000.000,00 
0,00 
1990 1991 1992 1993 1994 
ANNEX V.3 
FINANCIAL COMMITMENTS FOR LATIN AMERICA (1990-1994): EVOLUTION OF 
THREE SPECIFIC BUDGET LINES 
ocnruvwin -, tOUUUUUUU 
200000000 -
150000000 -
ECU 
100000000 -
50000000 -
^^ m ^^^ i m " m ^^ , - -OI -OKJ IU 
— - - B7-3011 
B7-20 
1990 1991 1992 1993 1994 
B7-3010: Financial and Technical Cooperation 
B7-3011 : Economic Cooperation 
B7-20: Food Aid 
32-
ANNEX VI 
COOPERATION BETWEEN THE EUROPEAN COMMUNITY AND LATIN AMERICA 
FROM 1996 TO 2000. PRIORITY AXIS AND THEMES PROPOSED: BUDGETARY 
LINES AVAILABLE 
THEMES 
AXIS REGIONAL 
INTEGRATION EDUCATION 
AND TRAINING MANAGEMENT OF 
NORTH/SOUTH 
INSTITUTIONAL 
SUPPORT 
COMBAT AGAINST 
POVERTY AND 
SOCIAL EXCLUSION 
SUPPORT FOR 
ECONOMIC REFORMS 
AND IMPROVEMENT OF 
INTERNATIONAL 
COMPETITIVENESS B7-5230 
B7-5020 
B7-5076 
B7-3010 
B7-3020 B7-5041 
B7-5040 
B7-5080 
B6-8200 B6-6224 
B7-3011 
B4-1041 
B7-3010 Technical and financial cooperation 
B7-3011 Economic Cooperation 
B7-3020 Support to Refugees 
B4-1041 Energy 
B7-5020 Cooperation Agreements 
B7-5040 Ecology in developing countries 
B7-5041 Tropical Forests 
B7-5076 Rehabilitation 
B7-5080 Fight against drugs 
B7-5230 Democratization and human rights 
B6-6224 Science and Technology for development 
B6-8200 Scientific cooperation 
33 


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DOCUMENTS 
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