New Agenda to strengthen EU’s partnership with Latin America and the Caribbean

Brussels, 7 June 2023
Today, the High Representative and the European Commission have adopted a Joint Communication setting out a New Agenda for Relations between the EU and Latin America and the Caribbean. It proposes a stronger and modernised strategic partnership, through reinforced political engagement, boosting trade and investment, and building more sustainable, fair and inter-connected societies through Global Gateway investments.

President Ursula von der Leyen said:

“Today,the EU–LAC strategic partnership is more important than ever. We are key allies to strengthen the rules-based international order, stand up together for democracy, human rights and international peace and security. We also have an interest in strengthening our political partnership and engagement, fight climate change and to take forward an inclusive, human-centred digital transformation. Our Global Gateway will also boost investment and closer cooperation.”

Launched ahead of the EU-CELAC Summit to be held in Brussels on 17 and 18 July, the Communication aims to recalibrate and renew bi-regional relations. It makes a series of proposals in key areas:

A renewed political partnership;
Strengthening common trade agenda;
Rolling out Global Gateway investment strategy to accelerate a fair green and digital transition and tackle inequalities;
Joining forces for justice, citizen security and the fight against transnational organised crime;
Working together to promote peace and security, democracy, rule of law,human rights and humanitarian aid;
Building a vibrant people-to-people partnership.

Key proposals

Political partnership: The Communication calls for renewed political engagement in a flexible and multi-layered approach: between the two regions, with individual Latin American and Caribbean countries, with sub-regions and in multilateral fora.

At bi-regional level, it proposes to enhance dialogue between the EU and the Community of Latin American and Caribbean States (CELAC), with more regular Summits and a permanent coordination mechanism.

At sub-regional level, the Caribbean merits increased political attention notably through the finalisation of the post-Cotonou Agreement, in addition to engagement with other sub-regional groups such as Mercosur, the Central American Integration System (SICA), the Andean Community or the Pacific Alliance.

At the level of bilateral relations, relaunching Summits with strategic partners Brazil and Mexico, as well as establishing political dialogue mechanisms with a number of countries that do not currently have them are other priorities. The Communication also proposes increased cooperation at multilateral level to address jointly regional and global challenges in line with our shared values, interests and objectives. Both regions have an interest in working together for a reform of the global financial architecture, in particular Multilateral Development Banks, and forging a New Global Financing Pact.

Trade: Bilateral and regional trade agreements are a key driver for growth and diversification strategies in both regions, and catalysts for sustainable and inclusive development. Thanks to these agreements, two-way trade in goods has increased by 40% from 2018 to 2022, with a total bilateral trade in goods and services of €369 billion in 2022.

Efforts are underway to sign and ratify the modernised agreement with Chile and to finalise the one with Mexico, as well as to conclude the agreement with Mercosur. Once trade agreements with Central America and Colombia-Peru-Ecuador are ratified by all EU Member States, strengthening the sustainability provisions of the agreements should also be considered. Further enhancement of EU-LAC cooperation in the WTO, as well as strengthening our global efforts to diversify sources of raw materials and make global supply chains more resilient will benefit both regions. The EU will continue to work with LAC partners to help create the conditions for sustainable investment, including by jointly addressing the impact of European Green Deal legislation, and the support of open, stable, and predictable legal frameworks.

Global Gateway: Through the Global Gateway investment strategy, the EU can leverage quality investments to help address the regions infrastructure needs, while creating local added value and promoting growth, jobs and social cohesion. In addition to investments in hard infrastructure, Global Gateway supports human development, including youth and women’s empowerment, enhancing innovation, education and skills, as well as an enabling business and regulatory environment.

The EU-LAC Global Gateway Investment Agenda (GGIA)is a political commitment to work together, identifying fair green and digital investment opportunities in Latin America and the Caribbean, which will benefit from the open environment generated by trade and investment agreements and will help achieve the Sustainable Development Goals.

Under the Investment Agenda, which will be a key deliverable of the EU-CELAC Summit. investments will be mobilised for, amongst others, renewable energy and green hydrogen, critical raw materials, decarbonisation, and transport infrastructure projects, 5G and last-kilometre connectivity, digitalisation for public services, sustainable forest management, health manufacturing, education and skills and sustainable finance.

Green Transition: There is significant potential for cooperation between the EU and Latin America and the Caribbean towards climate neutral, clean and nature-positive economies. The region has unique potential in terms of biodiversity, natural resources, sustainable renewable energies, agricultural production and strategic critical raw materials. We both are committed to protecting biodiversity, halting deforestation, promoting more circular economies, improving waste and water management, increasing resource productivity and tackling pollution, as well as working towards climate neutral, clean and nature-positive economies. To meet these objectives, the Communication calls for a strengthened partnership on the green transition, including through increased dialogue, strengthening of regulatory frameworks and investments under Global Gateway.

Digital: The EU and Latin America and the Caribbean have a joint interest in pursuing digital policies that empower people and businesses to build a human-centric, sustainable and more prosperous digital future.The EU-LAC Digital Alliance was launched in March 2023 with the ambition to join forces for an inclusive and human-centric digital transformation in both regions and to develop bi-regional dialogue and cooperation across the full spectrum of digital issues. Both regions can benefit from further cooperating on a wide range of areas such as connectivity, regulatory dialogue, free and safe data flows and space.

Sustainable economic growth for human development: The Communication puts forward proposals to step up joint efforts towards a robust and sustainable socio-economic recovery that promotes equality and social inclusion, notably through education and skills-building, with a particular focus on women and youth. It calls for increased cooperation in research and innovation, making full use of opportunities under Horizon Europe Programme, and expanding joint work on health security as well as sustainable food systems.

Citizen security, justice, human rights and rule of law: The Communication proposes to consolidate and strengthen the partnership on justice and security to address common challenges posed by transnational organised crime, including the drugs trade and human trafficking. It stresses the importance of reinforcing cooperation on human rights, including non-discrimination and gender equality, and makes the case for a more prominent protection for human rights defenders and journalists. The Communication also proposes joint efforts to promote democracy, rule of law and good governance, as well as global peace and security.

A vibrant people-to-people partnership: People are at the centre of this bi-regional partnership. Engagement with youth in Latin America and the Caribbean will increase through initiatives such as country-level Youth Sounding Boards. The Communication proposes to intensify collaboration on education and research for example with key exchange programmes such as Erasmus+, promote circular mobility by drawing on the Skills and Talents package, encouraging intercultural networks and joint initiatives such as the first ever EU’s participation as guest of honour in the 2023 International Book Fair in Guadalajara, Mexico.

Background

The EU and Latin America and the Caribbean are key allies to defend and strengthen a rules-based international system. Together, we represent almost one third of the membership of the United Nations (UN). We are strong supporters of international law and the UN Charter.

The region is vital to the ecological balance of the planet, with over 50% of the planet’s biodiversity. The region is also a major food producer, accounting for 14% of global food production and 45% of net international agri-food trade, and a renewable energy powerhouse (its generation mix has the largest share of renewables in the world, amounting to 61% in 2021).

The EU and Latin America and the Caribbean are close and reliable trade and investment partners, with one of the world’s densest networks of political, cooperation and trade agreements, covering 27 of the 33 LAC countries.

For more information

Joint Communication on a New Agenda for Relations between the EU and Latin America and the Caribbean

Questions and Answers

Factsheet

Factsheet on Trade between EU and Latin America and the Caribbean

Quotes

Today, the EU –LAC strategic partnership is more important than ever. We are key allies to strengthen the rules-based international order, stand up together for democracy, human rights and international peace and security. We also have an interest in strengthening our political partnership and engagement, fight climate change and to take forward an inclusive, human-centred digital transformation. Our Global Gateway will also boost investment and closer cooperation.

Ursula von der Leyen, President of the European Commission

Trade agreements are catalysts for sustainable growth and jobs. The EU and the Latin American and Caribbean Region already trade €1 billion worth of goods and services every single day. Deeper trade ties can strengthen our supply chains and help to advance our respective inclusive development agendas, including by giving a voice to civil society. We now want to go to the next level, for instance with mutually beneficial partnerships on critical raw materials to diversify our supply chains. We are also working towards an agreement with Mercosur, which would significantly deepen ties between both regions.

Valdis Dombrovskis, Executive Vice-President for an Economy that Works for People

Reinforcing the EU’s partnership with Latin America and the Caribbean is a strategic imperative. We are among the world’s most closely aligned regions in terms of interests and values. By working together, the EU and Latin America and the Caribbean can address global challenges more effectively, strengthen the rules-based international order, and promote peace, security, and democracy. The EU-CELAC Summit offers a great opportunity to build trust and inject momentum into the relationship.

High Representative/Vice-President Josep Borrell

The EU and Latin America and the Caribbean are natural partners. We must also become partners of choice. Citizens in both regions aspire to live in inclusive and prosperous societies. We can work together to put the Sustainable Development Goals back on track. Global Gateway, the EU’s positive offer to roll out sustainable and trusted connections with our partner, is key to delivering this commitment and tackling inequalities. Today’s proposal for a strengthened partnership will put people at its heart, promoting youth and women empowerment, increased mobility and people-to-people connections.

Jutta Urpilainen, Commissioner for International Partnerships

Source – EU Commission

Brussels, 7 June 2023

1. Why does the EU need closer relations with Latin America and the Caribbean?

The EU and Latin America and the Caribbean (LAC) are natural partners and have a long-standing strategic partnership. In a fast-changing global context, increasing geopolitical challenges, a devastating pandemic, the global climate and environmental crises, technological changes and rising inequalities all underscore the case for intensifying dialogue and enhancing cooperation among partners.

In light of growing authoritarian trends around the world, the EU and Latin America and the Caribbean are key allies to strengthen the rules-based international system. They are also close trade and investment partners with a shared interest in promoting sustainable growth and enhancing economic resilience. Both regions aspire to build inclusive and sustainable societies, based on a joint commitment to the 2030 Agenda and its Sustainable Development Goals (SDGs). Together they can lead in a fair green and digital transition, including by rolling out the Global Gateway investment strategy. The EU and Latin America and the Caribbean should therefore work together to harness their collective strength, better defend common interests, and jointly address global challenges as partners of choice.

2. What is new in this proposal?

The Joint Communication by the European Commission and the High Representative is a contribution towards a new strategy for EU relations with Latin America and the Caribbean for a closer and modernised strategic partnership between both regions, with people at its centre.

In a world of giants, the EU and Latin America and the Caribbean together represent 14% of the world’s population and 21% of global GDP. Strengthening this partnership is a strategic imperative to confront global challenges and seize opportunities for mutual benefit. Achieving this goal will require more cooperation on both sides.

For this aim, the Joint Communication sets out ideas to intensify cooperation in most aspects of the EU-LAC partnership, including through reinforced political engagement, boosting trade and investment, and building more sustainable and inter-connected societies, in particular with Global Gateway. The EU will strive to mobilise its policies, instruments and resources in a Team Europe approach.

3. What are the main objectives and actions proposed?

The Communication identifies 6 areas of enhanced cooperation with several concrete actions proposed for each:

Renewed political partnership:with regular Summits and a permanent coordination mechanism with CELAC, and increased cooperation in UN fora. Enhanced engagement is proposed not only a regional level but also with individual Latin America and the Caribbean countries as well as with (sub-regional groups like Mercosur, the Central American Integration System (SICA), the Andean Community, the Pacific Alliance or the Alliance for Development in Democracy, with special attention given to the Caribbean and notably the finalisation of the post-Cotonou Agreement.
Strengthening a common EU-LAC trade agenda: this will be pursued by finalising the signature of the EU-Chile Agreement, make decisive progress for the EU-Mexico and EU-Mercosur agreements, complete ratification of the agreements with Central America and Colombia, Peru and Ecuador and jointly consider their targeted update. Another action will be to strengthen the EU-LAC collaboration in the WTO. Mutually diversify sources of raw materials and make global supply chains more resilient will benefit both regions, including by jointly addressing the impact of the legislation of the European Green Deal.
Global Gateway: this will allow the EU to leverage quality investments to help address Latin America and the Caribbean’s infrastructure needs, with a positive and values-based investment offer, respecting high international standards and promoting social cohesion. This approach can underpin partnerships for a fair, green and digital transition. Proposed actions for a fairgreen transition include sustainable investment projects, finance frameworks such as green bond markets, enhanced cooperation on disaster preparedness and disaster risk management. The EU-LAC Digital Alliance was launched in March 2023 to join forces for an inclusive and human-centric digital transformation. Global Gateway investment projects like the extension of the BELLA fibre-optic cable can be an important support. Other actions will include regulatory dialogue to boost digital compatibility the promotion of free and safe data flows.
Promoting sustainable economic growth forhuman development:to enhance cooperation including investments in health system resilience (as foreseen under the EU-LAC Health partnership on vaccine and medicines manufacturing, digital health, health technologies and health system strengthening) or in water and sanitation management. A Regional Team Europe Initiative on Inclusive Societies is under preparation, with a particular focus on education.
Joining forces for justice, citizen security and the fight against transnational organised crime: actions include capacity development and cooperation with the Latin America Internal Security Committee (CLASI) and the Police Community of the Americas (AMERIPOL). The high-level dialogue on drugs policy and cooperation on cybersecurity will be enhanced.
Promote peace and security, democracy, rule of law, human rights and humanitarian aid: involve stepping up efforts to empower women and girls and eradicate gender-based violence, as well as to protect the defenders of the environment also by supporting the implementation of the innovative Escazú regional agreement. Strengthening the multilateral human rights system should be a common priority.
Building a vibrant EU-LACpeople-to-people partnership: a key action is the increased engagement with youth, also through country-level Youth Sounding Boards. Other actions include to intensify collaboration on education and research, circular mobility, and joint cultural initiatives, like the EU’s participation as guest of honour in the 2023 International Book Fair in Guadalajara (Mexico), the biggest in the world outside Europe. The role of the EU-LAC Foundation, an international organisation formed by the 60 countries of the two regions, should be strengthened.

4. Has the EU engaged with stakeholders to produce this strategy?

The EU has ensured a wide involvement of stakeholders, including from Latin American and Caribbean partners. In this context, a Consultation Plan was launched in January, including the publication of a Call for Evidence during 4 weeks in the ‘have to say’ web portal, which triggered 55 replies, most of which very substantial and extensive, which were all duly considered for the reflection and preparation process. Informal consultations also involved EU Member States, Latin American and Caribbean Ambassadors, civil society, and other stakeholders. This allowed to integrate relevant concerns and views, enhancing the participatory, transparent and inclusive nature of this Communication.

Today’s Joint Communication set out proposals to feed in the ongoing dialogue with EU Member States and constituencies, Latin American and Caribbean partners, as well as private sector, civil society, local authorities and youth, which will be taken forward ahead of the next EU-CELAC Summit in Brussels in July 2023.

5. Will the new proposal replace the 2019 Communication?

The proposed New Agenda builds on the lessons learnt in the implementation of the 2019 Communication, and it is designed to take the relationship one major step forward, both qualitatively and quantitatively. The global context changed substantially after 2019, not least for a devastating pandemic and unprecedented geopolitical challenges. This warranted a renewal of a strategic relationship like the EU-LAC one.

The Communication will feed into the discussions with Latin America and the Caribbean counterparts at the EU-CELAC Summit in July 2023. The European Commission and the High Representative of the Union for Foreign Affairs and Security Policy call on the Council and the European Parliament to endorse the New Agenda presented in this Joint Communication and to work together with Latin America and the Caribbean for a renewed strategic partnership on the basis of this proposal. The upcoming EU-CELAC Summit offers a great opportunity to build trust and inject momentum into the EU-LAC relationship to become partners of choice. It could constitute the basis for further progress of the strategic partnership with Latin America and the Caribbean over the years, for the benefit of both sides and in particular of EU and Latin American and Caribbean citizens.

6. What economic ties exist between Europe and Latin America and the Caribbean?

The EU is the leading investor in Latin American and Caribbean countries, and is one of the region’s biggest trade partners. In 2022, total trade in goods between the 27 EU Member States and Latin America and the Caribbean accounted for €293.09 billion, corresponding to 4.8 % of total extra-EU imports, and 5.8 % of total extra-EU exports.

Trade between the Latin American and Caribbean region and the EU grew rapidly between 2013 and 2022, with an increase of 59 % for imports and 37 % for exports. The trade relationship is balanced overall, with a relatively small surplus of €5 billion in the EU’s favour.

The EU is the Latin American and the Caribbean region’s leading investor. Direct investment by EU companies totaled €693 billion at the end of 2021. This is comparable to the combined EU Foreign Direct Investment stocks held in China, India, Japan and Russia (€670 billion).

7. What is the EU doing to boost investment and job creation in Latin America and the Caribbean?

In 2020, EU direct investments were already providing employment to around 2.75 million workers across Latin America and the Caribbean.

Employment created by EU direct investments in the region has expanded by 60.8% between 2010 and 2020.

The EU is eager to promote this growth even further, contributing to Latin America and the Caribbean’s diversification into higher value-added sectors, increasing productivity, innovation, and job creation.

8. How can trade agreements benefit the Latin American and the Caribbean region?

Bilateral and regional trade agreements, offer a stable framework for companies both in the EU and Latin America. Trade agreements provide preferential access to respective markets. As a result of these agreements, trade in goods has increased by 40% since 2018.

Moreover, trade facilitation and trade agreements are catalysts for sustainable and inclusive development, and promote regional integration. Trade agreements also offer platforms to engage on common challenges, such as the implementation of sustainability-related agendas.

9. How can trade agreements benefit trade and investment in critical raw materials?

The EU needs to strengthen its global engagement and trade agenda with reliable partners.

Bilateral agreements, and deeper trade and investment links, will help the EU diversify and strengthen supply chains, including those of critical raw materials, ensuring that EU companies are not discriminated against in terms of access to such materials.

The latest trade agreements, such as those with Mexico, and Chile, contain a dedicated Energy and Raw Materials chapter.

These agreements also set ambitious labour and environmental standards and encourage production and processing of raw materials in a sustainable manner.

10. In terms of Development and Cooperation, what is the focus of Global Gateway in the region?

Through Global Gateway, the EU can leverage quality investments to help address Latin America and the Caribbean’s infrastructure needs for the fair green and digital transition, while creating local added value, growth and jobs, and help build resilient and sustainable global supply chains which will benefit both our regions.

Global Gateway is already delivering in the region. The flagship projects identified for 2023 located in Latin America and the Caribbean include country and regional flagships such as the EU-LAC Digital Alliance. The implementation of the EU-LAC Digital Alliance is a particularly important and innovative step as it is the first bi-regional platform for cooperation on the digital transition proposed.

11. Is the EU going to mobilise new investment in Latin America and the Caribbean?

The Global Gateway Investment Agenda (GGIA) will be an important element of this renewed strategy with Latin America and the Caribbean, and of course the Summit. Its emphasis on the social and environmental dimension of EU investments clearly sets the EU apart from other investors in the region. It will encourage, and mobilise, other public and private investments in strategic sectors in Latin America and the Caribbean through concrete projects. We are currently preparing to present a list of projects at the EU-CELAC Summit in July with our Latin American and Caribbean partners.