Commission staff working document - Accompanying Document to the Communication from the Commission to the European Parliament and the Council - The European Union and Latin America: Global Players in Partnership - Ten Years of Strategic Partnership EU-Latin America {COM(2009) 495}
Date: 2009-09-30
Institutions: European Commission
Subjects: EU relations, Latin America, climate change, cooperation policy, development aid, employment policy, environmental policy, financial policy, macroeconomics, regional integration, research policy, social policy

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 30.09.2009 
SEC(2009) 1227 final 

COMMISSION STAFF WORKING DOCUMENT 

Accompanying Document to the  
Communication from the Commission to the European Parliament and the Council  

The European Union and Latin America: Global Players in Partnership 

Ten Years of Strategic Partnership EU-Latin America 

{COM(2009) 495} 

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Ten  years  after  the  first  Summit  between  the  Heads  of  State  and  Governments  of  Latin 
America and the Caribbean (LAC) and the European Union (EU), which set a new political 
and  cooperation  agenda,  relations  between  the  two  regions  have  been  considerably 
strengthened in many fields. This document gives a brief overview of the achievements in the 
main fields of cooperation and relations with Latin American partners. 

1. 

GENERAL 

Over  the  past  decade,  and  with  the  support  and  firm  commitment  from  the  Commission, 
relations  between  the  EU  and  Latin  America  and  the  Caribbean  have  been  considerably 
strengthened.  Ever  since  the  first  Summit  in  Rio  de  Janeiro  in  1999,  the  two  regions  have 
cooperated  on  a  joint  agenda  in  a  number  of  bi-regional,  bilateral,  multilateral  and  sector-
specific fora on a wide range of issues.  

In  2005,  the  Commission  Communication  ‘A  stronger  partnership  between  the  European 
Union  and  Latin  America’1  built  on  the  achievements  thus  far  and  helped  revitalise  the  bi-
regional relationship. The EU’s strategic objectives on Latin America that have guided action 
over the last decade are to: 

•  strengthen  political  dialogue  at  regional,  sub-regional  (MERCOSUR,  Andean 
Community, Central America) and bilateral levels, culminating in a Summit every 
two years where commitments are taken in key areas of the Partnership;  

•  pursue regional integration engaging, where possible, in negotiations to conclude 
Association Agreements (AA) with sub-regions, and strengthen bilateral relations. 
Bilateral  relations  are  now  stronger  thanks  to,  in  particular,  the  successful 
implementation of the existing Association Agreements (with Chile and Mexico) 
and the establishment of Strategic Partnerships with Brazil and with Mexico.The 
establishment  of  a  high-level  political  dialogue  with  Argentina  is  underway.  Te 
Commission  is  convinced  that  the  EU  should  explore  with  other  countries  the 
possibilities to enrich the current bilateral relations 

•  promote social cohesion — or the fight against poverty, inequality and exclusion 

— which is a priority for development cooperation.  

These  strategic  objectives  have  not  changed  after  ten  years.  Nevertheless,  the  approach  to 
reaching  them  needs  to  be  somewhat  refined  in  order  to  respond  to  the  changing  global 
context. This is the aim of the new Communication ‘The European Union and Latin America: 
Global Players in Partnership’ (2009)2. 

2. 

BI-REGIONAL POLITICAL DIALOGUE 

The  EU-LAC  Summit  process  is  particularly  important  in  implementing  the  Strategic 
Partnership. It facilitates political dialogue at the highest level, underscores the special nature 
of the relationship and fuels the bi-regional agenda.  

1 
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COM (2005) 636 of 08.12.2005. 
COM (2009) xx of xx.xx.2009.  

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Since  the  first  meeting  in  Rio  in  1999,  which  set  up  the  Strategic  Partnership  between  the 
regions and launched the EU-MERCOSUR negotiations, four more EU-LAC Summits have 
taken place, each defining policy orientations for the near future.  

The Madrid Summit in 2002 launched the ALBAN3 and @LIS4 programme and the EU-LAC 
Common Higher Education (and Knowledge) Area concept. The Guadalajara Summit in 2004 
launched the EUROsociAL5 Programme and invited Ministers concerned to design actions in 
the higher education field to further implement the EU-LAC Common Higher Education (and 
Knowledge)  Area.  This  was  implemented  at  EU  level  through  the  Alfa  programme  and 
specific Erasmus Mundus geographical lots for Latin America.  

The  Summit  in  Vienna  in  2006  was  important  as  it  set  up  the  EuroLat6  and  launched 
negotiations on an Association Agreement with Central America and the Andean Community. 
The most recent EU-LAC Summit in Lima in 2008 was a chance to coordinate positions on 
strategic topics that are high on the bi-regional and international agenda, such as poverty and 
climate  change.  It  also  introduced  the  initiative  for  the  EU-LAC  Foundation  and  launched 
EUrocLIMA.7 

The trend in coordinating positions on strategic topics is also noticeable at other high-level bi-
regional  meetings,  such  as  the  EU-Rio  Group  Ministerial  Meetings  that  take  place  every 
second  year,  alternating  with  the  EU-LAC  Summits.  As  such,  and  particularly  after  Cuba 
joined in November 2008 making its members identical to the EU-LAC process, it is perfectly 
placed to share the agenda of the Summit process, allowing for greater advantage to be taken 
of  the  Strategic  Partnership.  The  most  recent  meeting,  which  took  place  in  Prague  in  May 
2009,  focused  on  the  current  economic  and  financial  crisis,  renewable  energy  and  energy 
security and climate change. 

The  deepening  of  cooperation  between  Latin  America  and  the  Caribbean  is  an  important 
component of the EU-LAC Strategic Partnership. Various summit declarations have called for 
the  promotion  of  the  consolidation  of  relations  between  the  EU  and  the  wider  Caribbean. 
Different  treaties  and  agreements  are  already  linking  both  sub-regions,  such  as  the  Amazon 
Treaty  or  the  pending  FTA  between  CARICOM  and  Costa  Rica.  Cooperation  among  all 
countries bordering the Caribbean Sea also takes place through the Association of Caribbean 
States (ACS) in areas such as natural disaster preparedness, tourism, transport and sustainable 
development. As a sign of commitment to supporting cooperation in the wider Caribbean, the 
Commission became an observer to the ACS in spring 2009.  

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The  ALBAN  Programme  consists  of  ‘high  level  scholarships’  to  citizens  of  18  Latin  American 
countries. Between 2003 and 2007, 3319 scholarships were awarded for training in the institutions of 
the  EU  Member  States.  The  new  cooperation  programme  on  scholarships  is  now  under  preparation 
within the framework of Erasmus Mundus.  
The recently renewed @LIS programme – Alliance for the Information Society – is contributing to the 
bi-regional cooperation to reduce the digital divide, to extend the benefits of the Information Society to 
all citizens and to contribute to the social cohesion in Latin America.  
The EUROsociAL contributes to social cohesion of the Latin American countries by promoting reforms 
and improved public policies on education, health, administration of justice, taxation and employment. 
Euro-Latin  American  Parliamentary  Assembly  (EuroLat)  was  created  in  2006.  It  brings  together 
parliamentarians from the two regions — 75 members of the EP and 75  members of Latin American 
national parliaments. 
EUrocLIMA is a joint EU-LAC environmental programme in the framework of the ongoing efforts to 
foster bi-regional environmental cooperation with a special focus on climate change. Its objectives are: 
a)  knowledge-sharing  through  a  structured  and  regular  dialogue,  b)  action  identification  and 
coordination and c) stock-taking exercises. 

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3. 

SUB-REGIONAL RELATIONS 

The EU and the six Central American (CA) countries (Costa Rica, El Salvador, Guatemala, 
Honduras,  Nicaragua  and  Panama)  enjoy  a  comprehensive  relationship  that  encompasses 
political  dialogue,  a  broad  cooperation  framework,  both  in  scope  and  amounts,  and  a 
favourable trade regime (GSP+)8.  

The San José Dialogue, launched in Costa Rica in 1984, has shaped EU-CA relations. Since 
then, the EU has made a significant contribution to peace and democratisation processes, and 
to socio-economic development in CA. It can claim an important historical success in that it 
played a key role in bringing peace and re-establishing democracy in the region in the early 
1990s. A Political Dialogue and Cooperation Agreement was concluded with the sub-region 
in 2003. 

At  the  Vienna  Summit  in  May  2006,  it  was  decided  to  launch  negotiations  on  a 
comprehensive  Association  Agreement  between  the  EU  and  CA  that  would  include  three 
pillars:  political  dialogue,  cooperation  and  trade.  On  that  occasion,  CA  reaffirmed  its 
commitment  to  deepening  regional  integration,  which  the  EU  has  supported  for  more  than 
twenty  years.  Association  Agreement  negotiations  were  launched  in  June  2007.  Since  then, 
seven  rounds  of  negotiations  have  taken  place,  and  considerable  progress  has  been  made, 
nearing  conclusion  of  the  Agreement.  To  date,  Panama  remained  an  observer  in  the 
negotiations.  Following  the  recent  political  crisis  in  Honduras  resulting  in  the  ousting  of 
President  Zelaya,  negotiations  have  been  postponed.  It  is  hoped,  however,  to  resume 
negotiations once the situation has normalised.  

Following  the  EU-LAC  Summit  in  Madrid  (2002),  negotiations on a  Political Dialogue and 
Cooperation Agreement between the EU and the Andean Community (CAN) were launched 
and concluded in the course of 2003. In Guadalajara (2004), Heads of State and Government 
decided to launch a joint assessment exercise on regional integration to prepare for regional 
negotiations  on  a  comprehensive  Association  Agreement  containing  three  pillars:  political 
dialogue,  cooperation  and  trade.  After  the  assessment  exercise  ended  in  July  2006, 
negotiations were launched in June 2007. After three rounds, negotiations stalled as the CAN 
member countries could not agree on common trade positions.  

Whilst  concluding  an  Association  Agreement  with  the  entire  region  remains  a  long-term 
objective,  the  Commission  has  proposed  and  the  Council  endorsed  a  new  double-track 
negotiating approach in January 2009. This approach updates the EU-CAN Political Dialogue 
and Cooperation Agreement of 2003 and offers a prospect of concluding a Trade Agreement 
with  those  Andean  Community  countries  that  are  willing  to  embark  upon  ambitious, 
comprehensive and WTO-compatible negotiations.  

In  recent  years,  MERCOSUR  has  made  rather  limited  progress  on  the  core  aspects  of  its 
integration project, i.e. completing a customs  union  and  common  market.  Negotiations  on  a 
three-pillar  Association  Agreement  (political  dialogue,  cooperation,  free  trade  area)  were 
launched in 2000, but put on hold in 2004 due to disagreements on the trade chapter. Since 
then, political dialogue and high-level meetings have taken place regularly, as well as high-
level technical meetings on trade, during which both parties confirmed their commitment to 

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The revised EU’s Generalised System of Preferences. 

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relaunching negotiations when conditions allow. Meanwhile, scientific cooperation involving 
MERCOSUR countries accounts for more than 50% of that with the whole region. 

4. 

BILATERAL RELATIONS 

Signing  Association  and/or  Strategic  Partnership  agreements  with  Brazil,  Chile  and  Mexico 
has deepened relations with these countries. 

Brazil  has  emerged  as  a  regional  and  even  global  player.  The  last  decade  has  witnessed 
strong  economic  performance,  sound  management  of  public  finances,  political  stability  and 
fewer inequalities (although much remains to be done). The EU has recognised the new role 
played by Brazil in the region and in the world and has responded by launching a Strategic 
Partnership  with  Brazil  in  2007.  A  Joint  Action  Plan  was  adopted  in  December  2008  to 
implement  the  Strategic  Partnership.  It  promotes,  among  other  things,  the  reinforcement  of 
sectoral  policy  dialogues  in  a  number  of  priority  areas  including  science  and  technology, 
education and culture (the two latter were launched in spring 2009). The Strategic Partnership 
complements the bi-regional relationship between the EU and MERCOSUR and gives a fresh 
impulse to the already strong and comprehensive relations.  

The  2002  EU-Chile  Association  Agreement  was  the  fruit  of  an  existing  excellent  bilateral 
relationship, which continues to develop positively. EU-Chile trade has tripled as a result of 
this  Agreement,  and  the  EU  is  now  Chile’s  main  trade  partner  and  by  far  the  main  foreign 
investor. Political dialogue meetings have taken place regularly since 2003, and Chile and the 
EU  often  support  each  other’s  positions  in  the  LAC  group  and  at  multilateral  fora.  This 
important  partnership  will  gain  political  visibility  through  the  Association  for  Development 
and Innovation, proposed by President Bachelet in 2008. 

Relations with Mexico are governed by the Economic Partnership, Political Coordination and 
Cooperation Agreement, which entered into force in 2000. In 2008, the EU decided to grant 
Mexico the status of Strategic Partner, which meant joint work has commenced to prepare an 
executive plan with concrete actions to implement the new Partnership. Trade flows between 
the EU and Mexico have increased significantly since the Agreement entered into force. The 
EU is a major investor in Mexico, second only to the US. The main established cooperation 
the  period  2007-2013  are  social  cohesion,  sustainable  economy  and 
sectors 
competitiveness, education and culture. These three sectors are linked to various crosscutting 
issues to mainstream human rights, gender issues and environmental challenges. The EU and 
Mexico  have  also  established  sectoral  policy  dialogue  on  social  cohesion,  environment, 
science and technology and recently education and  culture.  A  dialogue  on  Human  Rights  is 
scheduled to be launched before the end 2009. 

in 

The  EU  and  Argentina  share  a  broad  base  of  common  values  and  interests.  Social  and 
cultural  links  are  strong  and  economic  relations  are  substantive.  Bilateral  relations  are  good 
and  based  on  the  EC-Argentina  Framework  Agreement  for  Trade  and  Economic 
Cooperation, signed in 1990. Over the past year, both Parties have made significant efforts to 
pursue  a  further  qualitative  improvement  in  the  relationship.  In  November  2008,  the  EC-
Argentina Joint Committee decided to develop a comprehensive Joint Work Programme and 
to expand the agenda of sectoral dialogue and cooperation to new areas of mutual interest. In 
December  2008,  the  EU  and  Argentina  signed  a  Joint  Declaration  to  establish  a  formal 
dialogue  on  Human  Rights. Discussions  have  advanced  on the  terms  of  a  Joint  Declaration 

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with  the  objective  of  improving  the  structure  of  the  relationship  in  different  areas,  also 
through the establishment of regular high-level political consultations.  

Bilateral  scientific  and  technological  cooperation  agreements  with  Argentina,  Brazil,  Chile 
and Mexico are another pillar through which the respective research communities come closer 
together and institutional and policy links get progressively stronger with positive secondary 
effects for cooperation in other areas and in identifying solutions to social problems, old and 
new.  The  four  countries  account  for  almost  80%  of  the  367  Latin  American  teams  that 
participated  in  the  Seventh  Research  Framework  Programme  (2007-2013)  in  the  first  two 
years. 

5. 

ACHIEVEMENTS IN THE FIELD OF DEVELOPMENT COOPERATION 

Ten  years  after  the  first  EU-LAC  Summit  that  set  a  new  political  and  cooperation  agenda 
between  both  regions,  EU  external  assistance  to  Latin  America  has  been  continuously 
adjusted in terms of content and form to achieve the results and meet the objectives set.  

The  key  objective  of  EU  development  cooperation  (through  the  European  Commission  and 
EU Member States) in Latin America has been to contribute to poverty reduction by pursuing 
the Millennium Development Goals (MDG). Although major progress has been made, such as 
increasing primary education coverage from 87 to 97 percent between 1990 and 2005, cutting 
infant  mortality  from  an  average  of  54  deaths  per  1 000  live  births  in  1991  to  31  in  2005, 
social and income inequality remains a major challenge.  

Since 1999, the European Commission has financed more than 450 projects and programmes 
accounting for more than €3 billion. Funds to  Latin America have risen steadily, contributing 
to the promotion of social cohesion, good governance, institutional capacity building, respect 
of  human  rights,  the  rule  of  law,  sustainable  development,  the  creation  of  an  EU-LAC 
Common  Higher  Education  Area  and  fostering  regional  integration  processes  that  have 
become crucial in a globalised economy. 

The Commission has financed very successful national programmes in a wide range of fields. 
The  ‘Peace  Laboratory’  in  Colombia  which  has,  since  it  started  in  2002,  significantly 
contributed to citizens’ coexistence by defending the basic human rights of all inhabitants and 
promoting sustainable human development, has shown effective and viable ways to overcome 
conflict.  In  Nicaragua,  the  Commission  has  supported  government  efforts  to  manage 
education policies and implement its National Education Plan. In Bolivia and Honduras, it has 
financed several  programmes  in the field  of natural resources management, water sanitation 
and river basin management. 

At regional level, the Commission has also contributed to three regional integration processes 
in Central America, the Andean Community and MERCOSUR supporting institutionalisation 
and  specific  cross-border  policies.  The  Commission  has  also  designed  several  programmes 
covering the entire region. Programmes such as EUROsociAL have boosted the institutional 
capacity of public administrations in Latin America through awareness raising and experience 
sharing  between  EU  and  Latin  American  administrations  in  the  field  of  education,  justice, 
taxation, health and employment. ALFA is another programme that has yielded great results. 
Over  ten  years,  225  projects  benefited  from  grants  to  develop  institutional  cooperation  and 
scientific and technical training in higher education institutions in the EU and Latin America.  

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The  Erasmus  Mundus  programme  (including  its  specific  regional  and  country  lots)  also 
successfully  promoted  cooperation  and  mobility  between  Latin  American  and  European 
higher education institutions (with around 3100 mobilities since 2004). Under its "promotion" 
action,  it  further  supported  specific  projects  aiming  at  implementing  the  EU-LAC  Common 
Higher Education Area. To better respond to the opportunities and challenges brought about 
by increased mobility in higher education, policy dialogue has been strengthened with Mexico 
and Brazil. The Commission has signed Joint Declarations with both countries and welcomed 
their participation in the last Bologna Policy Forum in Louvain La Neuve (29 April 2009).9 

Over the past ten years, the Commission has also improved coordination with other donors in 
delivering and managing external aid programmes in Latin America through different sectoral 
round  tables  and  information  exchange  mechanisms.  Aid  delivery  methods  have  also  been 
adapted, and budget support has become an essential method to promote sound public finance 
management and ensure greater ownership by national governments. Ecuador is an example 
of the success and suitability of budget support. Ecuador made efforts to create the conditions 
needed  to  be  eligible  for  budget  support  and  has  been  committed  to  achieving  the 
development  objectives.  Delivery  of  aid  through  budget  support  has  proved  effective  in 
achieving  cooperation  results  and  in  increasing  government  ownership,  contributing  to 
institutional strengthening and capacity building and promoting mutual accountability.  

In line with the Accra Agenda for Action, improved donor coordination and rationalisation of 
the practices is needed for a greater impact on the region. A number of initiatives towards a 
common donor' agenda in Latin America, like the Conference on Donor Coordination in Latin 
America organised by the Commission in December 2008, have already been taken. Further 
initiatives  could  be  explored,  such  as  periodical  donor  meetings  to  share  information  on 
ongoing and future actions and evaluate progress made in the field of coordination; creation 
of a network of EU national and local donor officials to participate in technical cooperation in 
selected sectors; identification of a pilot country for an in-depth donor coordination exercise. 

6. 

HUMANITARIAN ASSISTANCE 

Alongside  development  cooperation,  the  Commission  has  also  provided  emergency 
humanitarian  assistance  to  the  most  vulnerable  populations  affected  by  natural  disasters  or 
conflict.  For  instance,  in  2007,  humanitarian  assistance  was  provided  following  the 
earthquake in Peru and hurricane Felix in Nicaragua, and, in 2008, in response to the floods in 
Bolivia and Ecuador, Honduras and Guatemala, cold waves in Peru and Bolivia and drought 
in Paraguay and Honduras. In addition, in November 2008 the Commission adopted as a pilot 
exercise,  two  funding  instruments  to  respond  to  small-scale  disasters  and  epidemics  in  the 
region.  Furthermore,  the  Commission  continues  to  provide  humanitarian  assistance  to  the 
victims  of  Colombia’s  prolonged  internal  conflict,  covering  emergency  humanitarian  and 
protection  needs  both  inside  Colombia  and  in  the  neighbouring  countries.  Since  1993,  over 
€120 million have been allocated to respond to this humanitarian crisis.  

With  a  view  to  limiting  the  humanitarian  impact  of  recurrent  natural  disasters,  the 
Commission’s  disaster  preparedness  programme  (DIPECHO)  continues  to  be  implemented. 
Applying  primarily  a  Community-based  approach,  DIPECHO  aims  at  improving  the 

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A Joint Statement in view of the next Bologna Forum to be held in Vienna in March 2010 is available  

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capacities  of  communities  at  risk  to  enable  them  to  be  better  prepared  for  natural  disasters. 
DIPECHO is implemented through Action Plans in South and Central America and reaches 
out to isolated and vulnerable communities. Under the Sixth DIPECHO Action Plans a total 
of 49 projects are being implemented in Central and South America. 

7. 

MAIN POLICY PRIORITIES OF THE PARTNERSHIP 

i. 

Promoting regional integration 

integration 

in  Europe  has  contributed 

Regional 
to  peace,  stability  and  significant 
economicgrowth.  Convinced  that  this  approach  can  also  contribute  to  achieving  these 
objectives in other regions, the EU has provided continuous support to various sub-regional 
integration processes for which there is decisive commitment in the  countries concerned. In 
Latin America, the countries of MERCOSUR, Central America and the Andean Community 
have made remarkable progress in political and economic integration. The Caricom member 
countries  have  achieved  significant  integration  in  the  context of  the  Caricom  Single  Market 
and  Economy  (CSME)  and  in  building  a  regional  market,  in  particular  under  the  new 
Economic Partnership Agreement (EPA).  

ii. 

Promoting social cohesion 

Promoting  social  cohesion  is  a  key  policy  objective  of  the  Strategic  Partnership.  Since  the 
issue was launched at the Guadalajara Summit, it has acquired considerable importance and 
prominence.  Today,  social  cohesion  is  at  the  top  of  the  political  agenda  of  practically  all 
countries in the region. In the context of the crisis, the mutual benefits of bi-regional dialogue 
on  issues  such  as  developing  skills  to  meet  labour  market  needs,  youth  employment  and 
extending social protection are quite evident. The post-2010 Lisbon Strategy for Growth and 
Jobs  is  expected  to  enhance  the  importance  of  the  external  dimension  of  employment  and 
social policy.  

Following the EU-LAC Vienna Summit in 2006, the first EU-LAC Forum on Social Cohesion 
in 2007 launched a policy debate on key employment and social policy challenges.  

A  major  proportion  of  funds  for  Commission  cooperation  with  Latin  America  has  been 
allocated  to  social  cohesion.  Dialogue  and  cooperation  between  government  authorities, 
international  institutions  and  civil  society  has  also  intensified  under  the  EUROsociAL  and 
URB-AL10  programmes.  The  ALFA  and  Erasmus  Mundus  programmes  have  triggered 
cooperation  and  exchanges  in  higher  education.  The  Commission  has  begun  constructive 
cooperation  with  organisations  such  as  the  IDB11,  UNDP12,  ECLAC13,  the  World  Bank  and 

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URB-AL aims at developing networks of decentralised cooperation between local authorities on topics 
and  problems  of  urban  local  development  such  as  drugs,  environment,  citizen  participation,  poverty 
alleviation,  transport,  safety,  town  planning,  economic  development,  the  information  society  or 
democracy. 
The  Inter-American  Development  Bank  (IDB)  supports  the  process  of  economic  and  social 
development in Latin America and the Caribbean, and is the main source of multilateral financing in the 
region. 

The  United  Nations  Development  Programme  (UNDP)  is  the  UN’s  global  development  network,  an 
organisation advocating for change and connecting countries to knowledge, experience and resources. 
UNDP’s  network  links  and  coordinates  global  and  national  efforts  to  reach  the  Millennium 
Development Goals. 

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the IMF, which have had a major input in designing and operating international institutions 
and development plans in the region, notably by helping to converge views and approaches on 
social cohesion.  

A strong commitment to trade and sustainable development, including labour standards, in the 
ongoing FTA negotiations and in the context of trade incentives such as GSP+ is supporting 
the promotion of decent work. 

Community  aid  has  reached  beneficiaries  in  rural,  urban  and  pre-urban  areas  of  Latin 
America.  The  increasing support  to  sector  programs  has  allowed  for  more  frequent  and 
regular, as well as deeper policy dialogues between LAC partners and the EU. In Ecuador, for 
instance,  the  EC  contributes  to  social  investment  by  improving  the  marginalised  and 
disadvantaged  communities’  access  to  education  through  the  support  to  the  Decennial 
Education  Plan  (PAPDE).  Important  improvements  in  achieving  universal  basic  education 
through  the  elimination  of  obstacles  to  access,  the  selection  of  12.000  new  teachers  and  a 
national alphabetisation campaign have been registered. 

Bi-regional  dialogues  on  fiscal  policy  have  been  launched,  which  should  lead  to  better 
redistribution  of  income  and  wealth.  Since  2008,  two  high  level  EU-LAC  Fora  on  Fiscal 
Policies have been organised. These gave participants the opportunity to share experience and 
demonstrated the concrete impact of Commission cooperation in this area. For example, with 
Commission support, Uruguay reformed its tax system in 2007, generating increased revenue 
and leading to a substantial increase in social expenditure.  

iii.  Reinforcing Human Rights and Democracy Building 

The EU closely monitors the situation on human rights and security in Latin America and the 
Caribbean and attaches great importance to the process of continuous democracy building and 
peaceful  democratic  transition  in  the  region.  The  EU  holds  regular  discussions  on  human 
rights  with  countries  in  the  region,  both  bi-laterally,  bi-regionally  and  multi-laterally.  For 
example,  in  2009  the  EU  launched  a  bilateral  Human  Rights  Dialogue  with  Colombia, 
establishing  a  channel  for  a  more  regular  and  systematic  exchange  of  information  and 
experience. In December 2008, a similar Dialogue mechanism was launched with Argentina, 
boosting bilateral relations. Discussions with many other countries in the region are based on 
the human rights clauses in the agreements and form part of political dialogue meetings at all 
levels.  

Both  regions  have  been  strong  proponents  of  building  up  a  comprehensive  body  of  global 
standards,  and  are  the  leading  force  behind  a  number  of  the  more  recent  human  rights 
instruments  (e.g.  Optional  Protocol  to  the  Convention  against  Torture,  Convention  on  the 
Rights  of  Peoples  with  Disabilities,  Convention  for  the  Protection  of  All  Persons  from 
Enforced  Disappearance,  Declaration  on  the  Rights  of  Indigenous  Peoples).  For  over  a 
decade, the two regions have jointly run the annual resolution on the Rights of the Child at the 
UN  General  Assembly.  Moreover,  Latin  America  spearheaded  work  to  support  a  resolution 
on a moratorium on the use of death penalty, proposed by the EU. 

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The Economic Commission for Latin America and the Caribbean (ECLAC) is one of the five regional 
commissions  of  the  United  Nations.  It  focuses  on  the  economic  development  of  the  region,  with  the 
promotion of the region’s social development as one of its primary objectives. 

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The  EU  financially  supports  projects  and  programmes  aiming  at  protecting  and  promoting 
human  rights,  including  the  rights  of  indigenous  peoples,  democratisation  and  non-
discrimination through the European Instrument for Democracy and Human Rights (EIDHR) 
and the Instrument for Stability. The EU has supported the Offices of the High Commissioner 
for Human Rights (OHCHR) in Latin America through targeted projects, and more recently, 
by  funding  its  activities.  Over  the  past  decade,  the  European  Initiative  on  Democracy  and 
Human  Rights  has  contributed  significantly  to  establishing  the  offices  of  the  OHCHR  in 
Colombia, Guatemala and Mexico. 

iv.  EU Election Observation Missions 

The EU has supported the development of important electoral and constitutional processes in 
Latin  America  by  deploying  EU  Election  Observation  Missions  (EOMs).  In  Ecuador,  for 
example,  the  EU  has  deployed  EOMs  during  three  consecutive  elections  (2007  constituent 
assembly elections, 2008 constitutional referendum and the 2009 general elections). The EU 
EOM  reports  and  recommendations  have  influenced  electoral  reform  in  the  countries 
concerned  in  a  positive  way  (e.g.  changing  the  vote  tabulation  system,  separating 
administrative and judicial electoral tasks). Likewise, an EU EOM was deployed in 2006 in 
Peru to observe the presidential elections. In Venezuela, the Commission deployed an EOM 
in December 2005 parliamentary elections, and the Presidential elections in December 2006. 
There  has  been  progress  in  the  electoral  process  and  some  of  the  EOM’s  recommendations 
were  followed.  The  EU  has  deployed  several  EOMs  in  Bolivia  to  accompany  the  reform 
process of the last years. An EU EOM was deployed in 2006 to observe the elections to the 
Constitutional Assembly and the referendum on regional autonomy. In 2008, the EU was one 
of  the  international  observers  to  the  national  dialogue  between  the  government  and  the 
opposition.  This  resulted  in  the  adoption  of  a  revised  draft  Constitution  approved  by 
referendum  in  2009.  As  far  as  Guatemala  is  concerned,  the  EU  deployed  EOMs  for  the 
presidential,  legislative  and  provincial  elections  in  2007.  In  Nicaragua,  the  EU  ensured  an 
EOM during the presidential and legislative elections in 2006 and an experts’ mission at the 
local  elections  in  January  2008.  In  El  Salvador,  the  EU  observed  municipal  and 
parliamentary  elections  in  January  2009  and  presidential  elections  in  March  2009.  The 
deployment  of  the  EOM  started  in  December  2008  and  ended  in  April  2009.  Final 
recommendations  are  being  prepared  and  are  likely  to  contribute  to  the  improvement  of  the 
electoral system.  

v.  Drugs 

EU and Latin American/Caribbean cooperation against illicit drugs takes place within a well-
defined  framework  of  EU’s  broader  drugs  policy.  The  bi-regional  dialogue  is  conducted 
through the EU-LAC Co-ordination and Co-operation Mechanism on Drugs (since 1999) and 
through the EU-CAN High Level Specialised Dialogue in Drugs (since 1995).  

The success and added value of the EU-LAC dialogue on drugs was recognised at the latest 
EU-LAC  Summit  in  Lima,  which  called  for  the  EU-LAC  Co-ordination  and  Co-operation 
Mechanism  on  Drugs  to  be  boosted.  The  adoption  of  the  Rules  of  Procedure  for  the 
Mechanism  at  the  last  High-Level  meeting  in  Quito  in  2009  is  a  significant  step  in  this 
direction. 

Cooperation  builds  on  mutual  understanding  of  shared  responsibility,  a  balanced  and 
evidence-based approach and compliance with international law, including respect for human 
rights.  In  2007  the  EU  and  LAC  confirmed  these  basic  principles  with  the  Port-of-Spain 

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Declaration, and materialised them in common areas of cooperation through supply reduction 
(e.g.  PRELAC14  in  LAC  and  PRECAN  in  CAN  projects,  Peace  Laboratories  in  Colombia), 
demand reduction (e.g. Twin Cities15 in all LAC), alternative development (e.g. APEMIN16, 
FONADAL17  and  PRAEDAC18  in  Bolivia,  PRODAPP19  in  Peru)  and  other  drug-related 
issues  such  as  money  laundering  and  customs,  police  and  judicial  cooperation  (e.g. 
Intelligence Sharing Working Group).  

vi.  Migration 

Migration is a  very sensitive area for both regions and they share  the  view that it  should  be 
managed to  the  full  benefit  of  the  countries  of  origin  and  destination  and  of  the  migrants 
themselves.  At  the  Lima  Summit  in  2008,  Heads  of  State  and  Government  recognised  the 
importance  of  migration  and  declared  that  the  structured  and  comprehensive  bi-regional 
Dialogue  on  migration  should  be  continued,  where  issues  of  mutual  concern  and  interest  to 
both  regions  would  be  addressed  in  a  constructive  and  pragmatic  manner,  and  in  an 
atmosphere  of  mutual  understanding  and  respect.  The  aims  of  this  Dialogue  are  to  identify 
common  challenges  and  areas  for  mutual  cooperation,  to  build  a  stronger  evidence  base  for 
EU-LAC  migration  to  better  understand  its  realities,  based  on  the  principle  of  shared 
responsibility,  and  to  boost  the  resolve  and  willingness  to  discuss  migration  issues  in  both 
regions.  

In  December  2008,  the  EU  Council  of  Ministers  confirmed  this,  concluding  that  the 
modalities  for  a  Structured  and  Comprehensive  Dialogue  on  Migration  decided  at  the  EU-
LAC Lima Summit should be examined as soon as possible. On 30 June 2009, the EU-LAC 
Structured and Comprehensive bi-regional Dialogue on Migration  was formally launched in 
Brussels. The first high-level EU-LAC expert meeting in the framework of the Dialogue was 
held  on  25  September  2009  under  the  Swedish  Presidency  and  addressed  issues  related  to 
migration and development.  

vii.  Climate Change and Energy 

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15 

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Prevention  of  the  Diversion  of  Drugs  Precursors  in  the  LAC  (PRELAC)  seeks  to  strengthen  the 
capacities of the national administrative control authorities of selected countries within Latin America 
and the Caribbean to prevent the diversion of precursor chemicals. PRELAC builds partially upon the 
achievements of a predecessor EC project ‘Prevention of the Diversion of Chemical Precursors for the 
Scope  of  Drug  manufacturing  in  the  Andean  Countries’  (PRECAN),  and  extends  the  geographical 
scope to other countries in Latin America and the Caribbean. 
The objective of the Twin Cities project is to improve policy decisions at city level on the quality and 
coverage of drug treatment, rehabilitation and harm reduction for populations in the EU and LAC. 
APEMIN  (an  EU-funded  programme  for  small-scale  mining  in  Bolivia)  provides  technical  assistance 
and  financial  support  to  small-scale  mining  operations  in  Oruro,  revitalising  the  local  economy  and 
consequently reducing migratory flows to areas of illegal coca cultivation. 
FONADAL  aims  at  supporting  development  of  sustainable  livelihoods,  social  infrastructure  and 
strengthening of local authorities. 
PRAEDAC is an Alternative Development Programme in the Chapare region, which aims at modifying 
production patterns of illicit coca crops, providing alternative productive activities, strengthening State 
presence  and  social  infrastructure  building  in  the  region  and  improving  alternative  subsistence 
opportunities. 

PRODAPP  (Programa  de  Desarrollo  Alternativo  Pozuzo-Palcazú)  is  an  alternative  development 
programme,  whose  objective  is  to  support  the  Government  of  Peru  in  its  programmes  for  poverty 
reduction and illicit crops prevention, and enhance local and regional management capacity for better 
implementation of local development plans. 

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Climate  change  and  access  to  energy  resources  are  common  interests  for  the  EU  and  Latin 
America.  Many  of  the  climatic  shocks  that  are  to  hit  the  region  are  largely  inevitable. 
Fortunately,  sound  adaptation  policy  is  broadly  congruent  with  sound  development  policy. 
Examples  include  action  to  improve  the  region’s  natural  resource  management  systems  and 
incorporate  climate-related  threats  into  the  design  of  long-term  infrastructure  investment. 
Provisions  that  promote  sustainable  development  have  become  an  integral  part  of  all 
agreements  the  EU  currently  negotiates  with  countries  in  the  region.  In  2007,  the  European 
Commission, together with Brazil and the United States, was among the initial founders of the 
International  Biofuels  Forum  proposed  by  Brazil,  which  aims  at  discussing  the  sustainable 
production of biofuels and now also comprises China, India and South Africa as participating 
countries. 

In addition to adaptation policy, there is a strong case for Latin America to play an active role 
in  broader  action  to  mitigate  climate  change.  Given  its  past  record  of  low-carbon 
development,  its  wealth  of  natural  resources,  and  its  intermediate  levels  of  income,  many 
Latin  American  countries  are  well  placed  to  take  a  leading  role  in  the  developing  world’s 
response to the challenge of climate change. Adopting a low-carbon development path would 
also benefit the region’s long-term competitiveness since the world’s technological frontier is 
moving in the direction of these technologies. 

Climate  change  adaptation  and  clean  energy  policy  have  been  at  the  centre  of  the  Rio 
Group/LAC - EU contacts since the Lima Summit in 2008. On that occasion, the Commission 
presented  EUrocLIMA,  an  initiative  aiming  at  expanding  climate  change  networks  and 
capacity in Latin America. Since the end of 2007, authorities from both Rio Group/LAC and 
EU  have  exchanged  views  on  the  topic,  but  Rio  Group  /LAC’s  position  on  international 
efforts  to  limit  emissions  (mitigation)  and  adapt  to  unavoidable  impacts  (adaptation  policy) 
are  rather  diverse.  This  means  their  group  position  is  often  based  on  the  lowest  common 
denominator. 

viii.  Research and Development 

Much has been achieved over the last decade  in the ‘knowledge triangle’ linking education, 
science  and  technology  (S&T),  and  innovation.  On  average,  Latin  American  countries  have 
increased the average level of schooling from about four years in 1999 to around seven years 
now. The international web of science shows increases in scientific and technological output 
measured  through  numbers  of  publications  of  international  standing,  including  very 
significant  percentages  of  co-publications  with  Europeans.  Interesting  results  have  been 
achieved  by  national  and  sub-regional  work  to  enhance  innovative  practices  and  strengthen 
the link between knowledge production, learning and use of knowledge in private and public 
sectors.  

The  interconnection  through  the  ALICE  Project  (co-financed  by  the  @LIS  Programe)  of 
RedCLARA  (that  links  national  research  and  education  centers  throughout  Latin  America 
with the pan-European GEANT2 network) has provided a major cooperation tool to research 
communities of Europe and Latin America.  

This  network  has  triggered  not  just  high-level  cooperation  among  EU  and  Latin  American 
researchers in general, but also supported specific collaboration initiatives in several scientific 
fields (e.g. on GRIDs, cosmic rays, astronomy, etc.).  

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On  the  other  hand,  underinvestment  in  agricultural  research  and  development  (R&D)  in 
lower-income  countries  is  increasingly  viewed  as  one  of  the  reasons  why  they  slip  further 
behind their middle-income neighbours.  

There is agreement that, overall, this is a key area to unlock the development and innovation 
potential  of  Latin  America  and  is  one  of  the  most  promising  areas  for  cooperation,  cutting 
across several policy areas and instruments. S&T cooperation increased considerably over the 
last 10 years, not only with the four countries that have bilateral S&T cooperation agreements 
with the EU (Argentina, Brazil, Chile and Mexico), but with the region as a whole. Several 
actions  in  the  area  of  e-infrastructures  have  provided  tools  to  foster  research  cooperation 
between  Latin  America  and  Europe.  RedCLARA,  the  first  regional  research  and  education 
network for Latin America was created and interconnected with GÉANT2 (the advanced pan-
european  research  and  education  network)  thanks  to  the  ALICE  and  ALICE2  projects  (co-
financed  by  the  @LIS  Programme).In  addition,  the  EELA  and  EELA2  projects  (e-
Infrastructure shared between Europe and Latin America) are providing researchers in Latin 
America access to high capacity grids and distributed computing facilities.  

Furthermore  the  recently  established  Strategic  Forum  (SFIC)  for  International  Cooperation 
will  contribute  to  enhance  coordination  and  consistency  between  Member  States'  and  the 
European Community's science and technology activities with the Latin America countries. 

Moreover,  cooperation  schemes  focused  on  capacity  building  and  institutional  cooperation 
strengthening  between  universities  and  other  operators  in  the  knowledge  industry,  such  as 
ALFA, ALBAN, ERASMUS Mundus, Jean Monnet, Marie Curie Actions, Youth in Action, 
etc.,  have  all  made  substantial  contributions.  The  European  Institute  of  Innovation  and 
Technology  (EIT)  aims  at  capitalizing  on  the  innovation  capacity  and  capability  of  actors 
from  higher  education,  research,  business  and  entrepreneurship  from  the  EU  and  beyond 
through the creation of highly integrated Knowledge and Innovation Communities (KICs). 

ix.  Trade and Investment 

As in other regions of the world, the Commission has promoted trade and investment in Latin 
America as a key factor for sustainable development. It has done so by promoting trade and 
investment,  not  only  by  negotiating  comprehensive  trade  agreements,  but  also  by  unilateral 
action,  such  as  facilitating  access  to  the  EU  market  through  the  generalised  system  of 
preferences  and  customs  duty  exemptions.  The  online  ‘Export  HelpDesk’  service  provides 
information about opportunities and requirements for accessing the European Market. 

At multilateral fora, the two regions continue to pursue common objectives. As stated in the 
Madrid 2002, Guadalajara 2004, Vienna 2006 and Lima 2008 EU-LAC Summit Declarations, 
successfully  concluding  the  Doha  Development  Agenda  in  the  framework  of  the  WTO 
remains  high  on  the  list  of  priorities.  The  Declarations  stress  the  importance  of  reaching  an 
ambitious, comprehensive and balanced outcome, which would serve as a major opportunity 
to liberalise trade further through increased market access and improved WTO rules. It would 
also  enhance  effective  integration  and  full  participation  of  developing  countries  in  the 
multilateral  trading  system  in  a  safe,  stable  and  equitable  environment  for  trade  and 
investment. 

The  EU  is  Latin  America’s  second  largest  trading  partner.  There  has  been  a  noticeable 
increase  in  trade  between  Latin  America  and  the  EU,  particularly  during  the  last  decade, 
resulting in trade figures that more then doubled between 1990 and 2006.  

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industries,  engineering  and  metal-working,  energy, 

Over  the  last  twenty  years,  European  businesses  have  invested  heavily  in  Latin  America, 
making EU the biggest investor in the region. Nevertheless, the investment potential in Latin 
America is still great. This is particularly so in strategic sectors where European excellence 
has proved its mettle, such as information and communication technologies, the aerospace and 
the  environment, 
automobile 
infrastructure and transport. European scientific research is also at the cutting edge in many 
sectors  and  has  everything  to  gain  from  developing  the  considerable  potential  of  existing 
expertise  and  know-how  in  Latin  America,  for  instance  in  the  areas  of  biotechnology 
(biofuels), aeronautics and health. The presence of European businesses in Latin America is a 
source  of  growth  and  employment  and  can  help  reduce  social  inequalities.  It  encourages 
know-how  and  technology  transfer,  and  offers  outlets  to  local  businesses  (sub-contracting). 
The  AL-Invest  Programme  set  up  by  the  Commission  allows  firms  in  both  regions, 
particularly  small  and  medium  enterprises  (SMEs),  to  sign  trade  agreements  and  take 
advantage of technology transfer. 

The  Commission  is  identifying  further  instruments  to  facilitate  investment  in  infrastructure, 
which  is  crucial  for  competitiveness.  Major  financial  gaps  have  been  identified  and 
Commission  funding  can  substantially  contribute  to  this  end,  helping  to  attain  faster 
sustainable growth and equitable socio-economic development in Latin America. 

x. 

Intervention under the Instrument for Stability  

The EU has also intervened under the Instrument for Stability (IfS). In Peru, for example, the 
Commission  provided  support  to  the  Government  for  rehabilitation  and  reconstruction  in 
areas affected by the 2007 earthquake. The intervention aimed at promoting socio-economic 
stability,  in  particular  sustainable  recovery  of  critical  infrastructure,  livelihoods  and  income 
generation assets. Also in Peru, the EC has financed projects to boost government capacity to 
prevent social conflicts and violence.  

In  Colombia,  the  EU  has  closely  followed  the  process  of  demobilisation,  disarmament  and 
reintegration  of  AUC  paramilitaries  under  the  ‘Justice  and  Peace  Law’,  Colombia’s  legal 
framework  for  transitional  justice.  The  Commission  is  supporting  the  Justice  and  Peace 
Process  through  its  cooperation  programmes,  including  funding  under  the  Instrument  for 
Stability, which supports victims of the conflict in their quest for truth, justice and reparation. 

Funds from the Instrument for Stability have also been used to finance a comprehensive coca 
leaf study in Bolivia. The activities include, inter alia, the national household survey on legal 
coca demand as well as a survey on coca productivity in different production zones. Besides, 
the  IfS  is  financing  a  programme  in  support  of  democracy  and  political  dialogue  in  that 
country. The Programme includes a series of measures to assist the organisation of elections 
and  promote  non-violent  dialogue  between  social  and  political  actors,  in  close  coordination 
with EU Member States and other donors involved.  

A Programme in support of democratic electoral processes is also being implemented in Haiti 
with IfS funds. 

Nicaragua  benefits  from  IfS  for  rehabilitation  and  reconstruction  in  areas  affected  by 
Hurracane FELIX. Apart from promoting the sustainable recovery of critical water sanitation 
infrastructure,  livelihoods  and  income  generation  assets,  the  programme  also  contributes  to 
reinforcing dialogue and good governance and promoting disaster risk reduction. 

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