The European Union is attempting to re-establish links with Latin America. The summit between the EU and CELAC — the Community of Latin American and Caribbean States — set for Monday and Tuesday in Brussels will be a tremendous opportunity for the two continents. As the EU seeks new economic partners in light of China’s drive into Latin America and the lessons learnt from its reliance on Russia in the energy industry, the EU-27 is pursuing Latin American and Caribbean countries, one of the world’s major raw material exporting areas. According to roadmaps obtained by EL PAS, Brussels has already identified areas of investment through more than 100 particular projects, ranging from one for the Bogotá metro to another on electric buses in Costa Rica, that can serve as spearheads to encourage European participation in the region.
However, disagreements between CELAC, a very diverse group of 33 countries with no structure, and the EU over whether and how to condemn Russia for its war in Ukraine in the meeting’s final declaration are straining the first such summit in eight years, which also marks the start of Spain’s EU presidency.
Participating states are set to launch regional investment programs at a conference attended by Brazil’s President Luiz Inácio Lula da Silva and Colombia’s Gustavo Petro. According to European Community sources, other members such as Sweden (which is considering a contribution of €3.5 billion), the Netherlands (€2 billion), and Finland and Ireland (which are analyzing a more modest sum of around €50 million) will be added to the €9,4 billion that Spain will contribute and the €10 billion from the European Commission to 2027. And more is on the way.
According to diplomatic sources, the leaders of the 27 EU member states, as well as the heads of state and government of at least 25 of the 33 CELAC countries, will visit Brussels. Ministerial representation will be provided by eight countries, including Mexico. “The idea is to hold a summit that is as inclusive as possible,” a senior EU official explained.
“The mere fact of holding the summit is a diplomatic success.” The EU and CELAC represent one-third of the UN member states. And it comes after nearly a decade of Latin America being off Europe’s radar,” says Javi López, MEP and co-president of the Euro-Latin American Parliamentary Assembly.
According to a diplomatic source, the objective is not to focus the summit on huge economic announcements like the meeting with African countries, where an investment of €150 billion was revealed in projects that were often left unexplained. Agreements on energy and other topics, such as digital or internal difficulties, will be signed. The economic packages that will be unveiled will be in the form of loans and grants, with the majority of the funds going to the European Global Gateway project, a vehicle designed to mobilize resources for projects in developing countries. The goal of this initiative is to oppose the effect of China’s New Silk Road, which is Beijing’s key project to improve its position by establishing trade links with the entire world. This project has 21 of the 33 Latin American and Caribbean countries involved.
The EU has a lot at stake in Latin America, a region in which it is the greatest investor but has been losing ground to become the third largest commercial partner — behind China and the United States — and with which it maintains one of the world’s most complex agreement networks. The European Commission has prepared a report with over 100 projects to help identify projects of interest that can encourage investment, ranging from programs to invest (partly privately and partly publicly) in green hydrogen in Argentina, more sustainable transportation in Paraguay, digital and telecommunications projects in Colombia to achieve digital transformation, wind and solar plants in Cuba, and vaccine production in Mexico. It is not a financial operation because there are no connected finances, but rather aspires to be the start of numerous investments, according to diplomatic sources.
Political gathering
It will be a very political summit lasting two days, during which the leaders will undertake bilateral discussions in addition to participating in plenary sessions. The format has piqued people’s interest. In addition, a business forum involving important European corporations will take place concurrently.
The summit and investment strategy have been crafted to strike a delicate balance. The EU clearly has a strong interest in Latin America’s strategic raw materials – a region that has large reserves of lithium, among other things – but the EU insists that it does not want to present itself as an extractive power, something that leaders such as Lula da Silva and Argentina’s Alberto Fernandez have already warned against. Civil society organizations, such as the NGO Oxfam, have also challenged the prioritization of corporate investment.
The accord with Mercosur, the world’s fifth largest economic area outside the EU, comprised of Brazil, Argentina, Uruguay, and Paraguay, will also be on the table for the leaders on Monday and Tuesday in Brussels. It will be easier to launch the agreement with Chile (which is only missing a few things) and extend the agreement with Mexico. At the same time, the EU is attempting to launch a cooperation and association agreement with Colombia, which, according to EU sources, may be signed in the fall and tries to channel conversation between Brussels and Bogotá (which does not have an agreement).
Josep Borrell, the High Representative for Foreign Policy, will also sign memorandums of understanding with Ecuador, Honduras, and El Salvador. According to the text to which this newspaper had access, Ecuador has identified eight priority areas to “strengthen” relations, including the environment, the scientific and educational agenda, the migration agenda, the promotion of investments in certain green sectors, and the cooperation agenda for Foreign Policy. The memoranda with Honduras and El Salvador, where major human rights violations have occurred, are shorter and underline the goal to establish the framework for bilateral political engagement through “regular consultations.”
The leaders of Europe and Latin America are also attempting to establish a diplomatic relations body in order to improve relations between the two blocs and narrow gaps in preparation for the next summit, which could take place in Colombia in 2025. The EU has neglected the region for eight years and is now attempting to reverse the situation, as evidenced by trips to the region by the President of the European Commission, Ursula von der Leyen, the President of the European Council, Charles Michel, the head of European diplomacy, Josep Borrell, and a number of important commissioners. “The EU is back in Latin America,” Von der Leyen said during her visits to Brazil, Argentina, Chile, and Mexico.
