Communication from the Commission to the Council and the European Parliament - A stronger partnership between the European Union and Latin America {SEC(2005)1590} {SEC(2005)1613}
Date: 2005-12-08
Institutions: European Commission
Subjects: EU relations, Latin America, cooperation policy, development aid

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 8.12.2005 
COM(2005) 636 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE 
EUROPEAN PARLIAMENT 

A stronger partnership between the European Union and Latin America 

{SEC(2005)1590} 
{SEC(2005)1613} 

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TABLE OF CONTENTS 

I- 

I-1 

I-2 

I-3 

I-4 

I-5 

I-6 

Guidelines .................................................................................................................... 3 

Introduction .................................................................................................................. 3 

Partnership.................................................................................................................... 4 

The challenges.............................................................................................................. 4 

Commission proposals for action................................................................................. 5 

EU-Latin America/Caribbean Summit....................................................................... 10 

Conclusions ................................................................................................................ 11 

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I- 

GUIDELINES 

I-1 

Introduction 

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. 
Relations have developed considerably since the 1995 Communication on the general policy 
regarding relations between the two regions.  

The EU, which now has a common currency and 25 members, has become the largest foreign 
investor  in  Latin  America.  It  is  the  largest  donor  for  the  region,  and  the  primary  trading 
partner for many countries there, especially the members of Mercosur. Political dialogue has 
been strengthened through three EU-Latin America/Caribbean Summits (Rio in 1999, Madrid 
in  2002  and  Guadalajara  in  2004).  This  Communication  will  also  serve  as  a  basis  for 
preparing  the  coming  EU-Latin  America/Caribbean  Summit  to  be  held  in  Vienna  in 
May 2006.  

For their part, most Latin American countries have adopted democratic systems and set about 
ambitious  economic  and  social  reforms.  The  region  boasts  enormous  potential  for 
development  and  plays  a  growing  role  on  the  international  scene.  But  it  faces  major 
challenges, as evidenced by the recent UN report on the Millennium Development Goals, and 
there are destabilising factors that could ultimately affect the biregional partnership. 

The  EU  could  draw  on  its  experience  to  help  strengthen  stability  and  security  and  bring 
sustainable development to Latin America. The new programming period for Community aid 
about  to  begin  ought  to  allow  considerable  funds  to  be  committed  to  the  region  (Financial 
Perspectives 2007-2013), and the next EU-Latin America/Caribbean Summit will be held in 
Vienna  in  May  2006.  The  future  association  agreements  with  subregions  (Mercosur,  the 
Andean Community and Central America) and the economic partnership agreement with the 
Caribbean will mark the end of a cycle. Through its outermost regions, the EU is present in 
this  geographical  area,  and  it  is  important  to  take  advantage  of  this  zone,  which  brings  an 
added  benefit  to  improve  their  cooperation  with  Latin  America  and  the  Caribbean,  notably 
through improved coordination of the financial instruments. New developments in the process 
of  integration  between  Central  and  South  America  also  need  to  be  borne  in  mind.  It  is 
therefore important to map out the options for the future. 

The Commission wishes to send a  positive  signal  indicating  that  Europe  is interested  in the 
region. Though unfounded, there seems to be a perception, that the EU is too absorbed by its 
own  enlargement,  its  immediate  neighbours  or  problems  elsewhere  in  the  world.  This 
perception also raises the issue of the visibility of the EU on the ground, given the complexity 
of  its  structures  and  its  means  of  action.  The  Commission  wishes  to  reaffirm  that  the 
association with Latin America is not merely a fact but a must in the interest of both regions, 

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now and in the future. However, if Europe is ready to commit itself further to Latin America, 
it also expects a firm commitment in return.  

This alliance between the EU and Latin America also concerns the countries of the Caribbean, 
which are involved in the EU-Latin America/Caribbean Summits, and with which the EU has 
had a long-standing relation under the Lomé and Cotonou agreements. The Commission will 
be adopting a communication on this issue early in 2006. 

Annexed to this document is a detailed Commission presentation of the proposed strategy for 
strengthening the partnership between the two regions. The Council and the Parliament are 
invited to examine the detailed presentation of the strategy. The recommendations are set out 
below and explained in the annex. 

I-2 

Partnership 

At  the  Rio  Summit,  the  EU  and  Latin  America  pledged  to  set  up  a  biregional  strategic 
partnership with a view to forging strong links in the political, economic and cultural spheres. 
The reasons explaining why this partnership deserves strengthening are developed in detail in 
the annex. 

The Commission proposes to give a fresh impetus to the EU-Latin America partnership which 
currently faces a number of challenges. Its objective for the coming years is to: 

•  establish a strategic partnership through a network of association agreements 

(including 

free trade agreements) involving all the countries of the region and liable to contribute to 
the integration of the region as a whole; 

•  have  genuine  political  dialogues  which  increase  the  influence  of  both  regions  on  the 

international scene; 

•  develop effective sectoral dialogues (e.g. on social cohesion or the environment) 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  the  Latin 
American countries attract more European investment, which will eventually contribute to 
economic development;  

•  tailor aid and cooperation more to the needs of the countries concerned; 

•  increase mutual understanding through education and culture.  

This policy requires the ongoing commitment of both parties and a steady effort. 

I-3 

The challenges 

The course of action taken by the EU must be tailored to the new realities in Latin America: 

•  The integration processes which frame our relations are evolving, as demonstrated by the 

recent creation of the South American Community of Nations. 

•  These processes are far from complete and progress varies from one region to the next.  

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•  Each  country  in  the  region  is  however  pursuing  its  own  foreign  policy  objectives  at 

regional and international level. 

•  Some major players, such as Brazil and Mexico, deserve special treatment because of their 

important role in regional affairs. 

The EU-Latin American partnership faces the following challenges, which are set out in detail 
in the annex. 

•  Joining the forces of two world players. Some consideration should be given to joint action 
to  improve  the  political  dialogue  between  the  two  regions  with  a  view  eventually  to 
expanding their world influence.  

•  Stimulating economic and commercial exchange on a balanced basis; it is important for the 
strategic  partnership  that  trade  between  the  two  regions  continues  to  grow.  Despite  a 
significant  increase  in  trade  and  investment  flows  between  the  two  regions  over  the  last 
fifteen years, their growth potential has been underutilised. 

•  Latin  America  is  a  region  of  ongoing  consolidation:  to  avoid  jeopardising  long-term 
stability in Latin America, the EU needs to support its efforts, above all in the following 
areas:  social  inequality,  poverty  and  exclusion;  migration;  democratic  governance;  illicit 
drugs and organised crime and the environment. 

•  Taking greater account of Latin American diversity. Although it favours the integration of 
the  region  as  a  whole,  the  Commission  believes  that  it  is  time  to  develop  the  current 
approach by tailoring relations with certain countries to specific policies and by conducting 
a more targeted dialogue.  

I-4 

Commission proposals for action 

The Commission proposes:  

(1) 

(2) 

(3) 

stepping up and focusing political dialogue with Latin American partners;  

creating a climate favourable to trade and investment;  

supporting  the  efforts  of  countries  in  the  region  to  contribute  to  stability  and 
prosperity; 

(4) 

cooperating more effectively and increasing mutual understanding. 

I-4.1 

Stepping up and focusing political dialogue  

It is vital to step up political dialogue so as to bring the positions of the two regions on matters 
of common interest closer together. The Commission in particular wants clearer identification 
and  better  targeting  of  the  subject  areas  according  to  the  party  concerned.  Summits, 
ministerial  meetings  (with  the  Rio  Group,  subregional  groups,  including  the  Caribbean  and 
countries with association agreements). 

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The Commission recommends: 

–  Conducting a needs-based political dialogue with the appropriate Latin American partners 
at biregional, bilateral or subregional level, on carefully chosen topics (such as UN reform, 
peace-keeping, conflict prevention and crisis situations in certain countries of the region);  

–  selecting a restricted number of topics; 

–  preparing political dialogue at meetings of senior officials (using the troika format); 

–  regularly  organising  meetings  at  senior  official  level  with  a  few  countries,  as  and  when 

necessary, for the purposes of political dialogue. 

I-4.2  Creating a climate favourable to trade and investment 

Strengthening the strategic partnership should contribute to establishing a favourable climate 
for  economic  exchanges  between  the  two  regions:  in  Latin  America  this  could  mean 
technology transfers, improvements in productivity, the development of its infrastructure and 
diversification  of  its  markets.  It  is  in  the  EU’s  interest  on  the  other  hand  to  develop  and 
consolidate its market positions and to pursue a dynamic investment policy. 

The Commission is therefore committed to: 

–  consolidating the multilateral trading system;  

–  strengthening existing association agreements, i.e.Mexico and Chile; 

–  negotiating biregional association and free trade agreements; 

–  facilitating access for Latin American businesses in Europe’s markets; 

–  dialogue on barriers to trade and investment; ; 

–  strengthening  macro-economic  dialogue  and  supporting 

regional  macroeconomic 
convergence  as  a  way  to  promote  macro-economic  stability,  a  key  factor  in  stimulating 
trade and investment. 

The Commission intends to promote:  

–  the  role  of  Europe’s  cutting-edge  sectors  in  the  development  of  the  region,  particularly 
through  initiatives  under  the  research  and  technological  development  framework 
programmes; 

–  a  climate  favourable  to  European  businesses  in  Latin  America  by  stepping  up  the 
regulatory  dialogue  for  the  adoption  of  common  rules  and  standards,  in  such  sectors  as 
transport,  energy,  information  technology  and  communications,  food  safety  and  sanitary 
and phytosanitary issues. 

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I-4.3  Contributing together to stability and prosperity  

1-4.3.1  Building more cohesive societies: promoting greater social cohesion for the benefit 

of all 

At  the  Guadalajara  Summit,  the  EU  and  Latin  America  named  social  cohesion  as  a  shared 
goal and priority area of their relations. In the context of globalisation, the promotion of social 
cohesion  is  intended  to  build  more  cohesive  societies  by  giving  everyone  (even  the  most 
disadvantaged) the chance to have access to fundamental rights and employment, to enjoy the 
benefits of economic growth and social progress and thereby play a full role in society. 

The Commission proposes integrating the aim of social cohesion into all actions undertaken in 
partnership  with  Latin  America,  in  an  ongoing,  consistent  and  practical  fashion.  This 
particularly concerns the following:  

–  setting up a specific dialogue on social cohesion; 

–  prioritising social cohesion in development cooperation; 

–  strengthening cooperation with international institutions; 

–  promoting the participation of the actors involved. 

The  Commission  will  also  support  the  organisation  (every  two  years)  of  a  forum  for  social 
cohesion,  to  share  the  results  obtained.  This  forum  should  include  government  authorities, 
civil society, the private sector and international organisations. 

1-4.3.2.  Strengthening  democratic  governance  and  creating  a  Euro-Latin  American 

parliamentary assembly 

The Commission will continue its support for modernising government in Latin America by:  

–  stepping  up  cooperation  operations  which  will  strengthen  governance  and  encourage 

inclusiveness, of poorer citizens in particular; 

–  involving  civil  society  in  its  operations  and  promoting  the  involvement  of  citizens 

(particularly women) in political projects, notably through political parties; 

–  supporting the EP’s desire to set up an EU-Latin America Transatlantic assembly. 

1-4.3.3.  Strengthening security, particularly in the fight against drugs, on a basis of shared 

responsibility 

The  EU  has  adopted  a  strategy1  for  tackling  the  consumption,  production  and  trafficking  of 
illegal  drugs  covering  the  years  2005-2012.  Tackling  drug-trafficking  and  other  forms  of 
crime also implies taking action on corruption and money-laundering.  

1 

Cf. http://europa.eu.int:8082/comm/external_relations/drugs/docs/strategy_05_12.pdf 

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The  Commission  will  pursue  the  shared  responsibility  approach  in  international  bodies,  and 
continue  its  support  for  Latin  America  in  the  fight  against  drugs.  It  will  promote  good 
financial,  fiscal  and  judicial  governance  through  financial  incentives  under  framework 
agreements with the countries of Latin America. 

1-4.3.4.  Encouraging greater regional integration  

- The integration process in Latin America. 

The Latin American countries have embarked on regional integration processes, which have 
already made a considerable impact. Latin America is in lead position among the developing 
countries on the integration path. Regional integration is a priority area of the Commission’s 
support for Latin American development.  

The Commission would also like to discuss with the Latin American partners the advisability 
of  a  regional  integration  strategy  for  the  whole  of  Latin  America.  It  would  be  a  long-term 
strategy  that  would  not  jeopardise  the  current  commitment  to  subregional  integration 
processes. 

The Commission wishes: 

–  to continue its support for all the different processes of regional integration, as a key factor 

in the region’s development; 

–  to  examine,  at  the  Vienna  Summit,  whether  negotiations  have  now  reached  a  stage 
permitting the EU-Mercosur association and free trade agreements to proceed towards their 
conclusion; 

–  to use the Summit as an opportunity to take stock of progress towards regional integration 
in Central America and the Andean Community, and to examine whether conditions now 
permit  the  rapid  opening  of  negotiations  on  association  and  free  trade  agreements  with 
these two regions. 

- Territorial integration and interconnectivity 

Latin  America’s  complex  geographical  configuration  stands  in  the  way  of  its  territorial 
integration.  More  efficient  infrastructure  would  help  Latin  American  exporters  to  improve 
their  trade  performances  substantially.  The  Commission  seeks  to  encourage  European  and 
Latin  American  financial  institutions  to  support  territorial  integration  by  means  of 
interconnective  network  infrastructures,  for  example  in  the  energy,  water,  transport, 
telecommunications  and  research  sectors.  Consideration  also  needs  to  be  given  to 
interconnectivity with, and within, the Caribbean. 

The Commission proposes sharing its experience regarding the interconnectivity of network 
infrastructures,  and  will  encourage  the  EIB  to  lend  its  support  as  part  of  the  future  Latin 
American facility. 

1-4.3.5.  Encouraging sustainable development 

The  Commission  considers  that  the  long-term  prosperity  of  the  EU,  Latin  America  and  the 
Caribbean  is  largely  dependent  on  good  management  of  their  national  resources  and  their 
ability to ensure sustainable economic development. 

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The Commission intends to promote: 

–  a dialogue on the environmental aspects of sustainable development; 

–  the  organisation  of  a  meeting  between  Environment  Ministers  in  preparation  for  the 

Summits; 

–  in-depth discussions in international bodies, particularly on climate change. 

1-4.3.6.  Joint action on conflict prevention and crisis management 

Given  the  weight  of  Europe  and  Latin  America  in  terms  of  diplomatic  presence,  economic, 
cultural  and  development  cooperation  ties,  the  two  regions  could  consider  setting  up  a 
political dialogue on conflict prevention and crisis management. 

At the request of the countries concerned, the EU should play a more active role in conflict 
prevention and crisis management in Latin America. It could: 

–  promote transfers of experience in such matters; 

–  support the efforts of countries and regional bodies; 

–  set up a dialogue and structured cooperation with the OAS and the Rio Group on this issue; 

–  make use of the future stability instrument.  

I-4.4  Cooperating more effectively and increasing mutual understanding 

I-4.4.1.  Targeting aid and development cooperation more carefully 

The objective of poverty alleviation is at the heart of the Commission’s aid and cooperation 
policy for the period 2007-2013. 

As part of its aid and cooperation policy for 2007-2013, the Commission proposes to: 

–  focus on priority themes (social cohesion and regional integration); 

–  target the greater part of poverty reduction funds on low-income countries (including lower 

middle-income countries); 

–  carry out targeted actions of mutual interest with upper middle-income countries;  

–  continue  cooperation  in  the  area  of  subregional  integration  with  Mercosur,  the  Andean 

Community and Central America;  

–  focus regional programming for the whole of Latin America on areas of strategic regional 

interest; 

–  ensure that the resource allocation reflects the importance accorded to the region. 

The Commission recalls the need to improve the coordination of European aid in general and 
the visibility of its cooperation in particular.  

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I-4.4.2.  Reflecting the specific role of certain actors in the region 

The  strategy  for  a  stronger  partnership  between  the  EU  and  Latin  America  must  also  take 
account of the importance and special role of the region’s big countries. This is particularly 
important for Brazil and Mexico. 

The Commission proposes setting up specific political dialogues with certain countries in the 
region which play a particular role, and adjusting its cooperation activities accordingly.  

I-4.4.3.  Building a EU-LAC common area of higher education  

As a follow-up of the  Guadalajara  Summit (2004), the Commission intends to  prioritise the 
building of the EU-LAC common EU-Latin America/Caribbean area of higher education. The 
aim is to ensure that more than 4000 Latin American teachers and students are invited to visit 
European universities for the 2007-2013 period. 

I-4.4.4.  Improve the visibility of both regions and Communicating Europe 

According to opinion polls, people in Latin America are relatively unfamiliar with the EU.2 
The same goes for most EU countries with regard to Latin America. It is therefore essential 
that  the  two  regions  take  up  the  challenge  of  mutual  understanding.  Consideration  must  be 
given to measures that would improve their visibility, for example in the cultural field. 

The Commission intends to strengthen the transfer of know-how and good practice regarding 
cultural cooperation, both between Latin American countries and between the region and the 
European  Union.  It  recommends  organising  a  Europe  week  every  year  around  9  May  (the 
festival  of  Europe)  in  all  Latin  American  countries  in  which  it  is  represented,  in  close 
collaboration with the embassies of the Member States.  

I-5 

EU-Latin America/Caribbean Summit 

For the Vienna Summit of 12 May 2006, the Commission considers that the topics covered by 
the Guadalajara  declaration – social cohesion,  regional integration, multilateralism –  remain 
important, but need to be fleshed out further. The Commission wishes to use this Summit to 
examine  whether  negotiations  on  the  EU-Mercosur  association  agreement  can  now  proceed 
towards their conclusion. The Summit will also provide an opportunity to assess the progress 
of  regional  integration  in  the  Andean  Community  and  Central  America,  on  the  basis  of  the 
conclusions  and  recommendations  of  the  working  group  which  carried  out  the  joint 
evaluation,  and  examine  whether  conditions  are  now  right  for  the  rapid  opening  of 
negotiations on association agreements with these two regions. The Commission will also use 
the  occasion  to  present  its  aid  and  cooperation  programming  for  the  period  2007-2013,  and 
will  encourage  social  partners  and  civil  society  to  contribute  to  the  Summit.  It  will  attach 
particular importance to global issues, including the fight against drugs. 

2 

“European  Union  perception  in  Latin  America”,  Focus  Eurolatino  -  CJD/Latinobarómetro  –  2004 
and 2005. 

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I-6 

Conclusions 

Over  the  last  ten  years,  the  EU  and  Latin  America  have  committed  themselves  to 
consolidating  their  links  through  a  strategic  partnership.  In  this  communication,  the 
Commission sets out a series of recommendations whose implementation will depend on all 
actors concerned.  The Commission invites the Council and the Parliament to examine these 
recommendations  in  the  light  of  the  detailed  presentation  annexed  to  this  document.  The 
Commission considers that it should be discussed with the Latin American partners. Its hope 
is  that  the  document  will  provide  food  for  thought,  and  stimulate  a  debate  on  ways  of 
strengthening the alliance between the EU and Latin America. 

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