WRITTEN QUESTION E-3644/01

by Michael Gahler (PPE-DE) to the Commission

(11 January 2002)

Subject: EU-Latin America relations and impact of the Puebla-Panama project in Mexico

On 15 November 2001, when it adopted the own initiative report containing its resolution on a global partnership and a common strategy (A5-0336/2001), Parliament voted in support of relations between the European Union and Latin America. The Puebla-Panama project was also discussed in the debate. Under this plan the poor rural South, which, however, has abundant stocks of resources, is to be economically integrated into a globalised production model that has been making itself felt in northern Mexico at the latest since Mexico acceded to the North American Free Trade Agreement (NAFTA) in 1994. The idea is to create an integrated industrial corridor between southern Mexico and Central America to run through Mexico, Guatemala, Belize, Nicaragua, El Salvador, Honduras, Costa Rica, and Panama, thus linking the Atlantic and the Pacific. Transport, telecommunications, energy, fisheries, and irrigation infrastructure projects will be carried out in order to develop petrochemicals, mining, assembling industries, tourism, fisheries, water supply and distribution services, and agriculture.

However, the implementation of the plan is prompting accusations that in Mexico in particular and the other countries as well the environmental effects resulting from rain forest depletion bear no relation to the economic benefit, building development is driving the indigenous population out of its traditional homeland, and, in general, the human rights situation in Mexico, especially where the Indios are concerned, is so critical that action in that sphere has to be considered the first and most urgent priority. Furthermore, the public has no information whatsoever about the project.

1. To what extent will the Commission follow the example of the international financial community and thus help to implement the project? What amount will it allocate for that purpose?

2. Will the Commission also submit a proposal to increase EIB funds to finance initiatives in the region concerned?

3. How does the Commission propose to deal with the misgivings expressed above?

4. How will the Commission cover the Puebla-Panama project in the annual progress reports to the EP detailing how far the goals of the strategy have been attained, first and foremost as regards the human rights situation?

Answer given by Mr Patten on behalf of the Commission

(25 February 2002)

1. The Mexican authorities presented the Puebla Panama Plan (PPP) to the Commission and the Council at meetings of the EU-Mexico Joint Council and Committee. However, no official request for funding has been made by the Mexican Government or by any of the Central American governments.

The Commission stresses the strategic importance of the PPP as part of regional integration, which it considers essential for developing the region and thereby reducing its poverty levels.

The Commission will shortly finalise strategy papers on cooperation with Mexico and the Central American countries; apart from the priority sectors for cooperation for 2002-2006, they include the indicative amounts for cooperation with each of these countries. The possibility of using complementary resources is not included in these strategy papers.

2. If the Commission were to receive an official request for funding accompanied by a detailed description of the projects under consideration, it would make a proper analysis of the request and would examine the possibilities offered by the Community strategy for the region.

3. As for funds from the European Investment Bank (EIB), the Commission and the EIB are launching a dialogue on the total volume of funds which the EIB provides to finance projects in non-EU countries. The Community would make its proposals in this context concerning funds for Latin America in good time and on the basis of the general need to strengthen economic and cooperation links between the two regions as a whole.

4. The Honourable Member's concerns are those which the Commission always takes into consideration when it commits itself financially to a project. If the Commission were to decide to make a financial contribution to the PPP, it would follow the internal cooperation procedures and the preliminary viability and impact studies would therefore be carried out before budgetary commitment. In this context, the consequences for the environment and the indigenous populations would be analysed.

5. The Commission considers that the PPP is a programme for developing the region and combating poverty and in any detailed analysis of the PPP it will take into account the situation regarding human rights, and in particular economic and social rights.