In a multilateral world,
Europe needs partners to help shape globalization. As part of
the West, Latin America
is better suited
than any other region, with the exception of the United States,
to work closely with the European Union. In recent years, most
Latin American countries have made big steps
toward free-market democracy and have become more involved in
tackling global challenges.
Europe, however, today pays less
attention to Latin America than in
the past. We look to the Islamic world because of the terrorist
threat, to Africa
as a result of humanitarian disasters and to growing Asian markets
because of our economic interests. Latin America, by comparison,
is not seen as a source
either of crisis or of sufficiently pro-
mising economic growth. Although a strategic partnership was
established
between Europe and Latin America at a summit meeting in Rio de
Janeiro in 1999, the relationship has not developed much momentum.
There have been some worthwhile results from the partnership
agreement. It has led to a dense network of forums for dialogue.
The European Union and its member states are Latin America’s
most important donors of official aid, far ahead of the United
States and Japan. There has been cooperation on science and technology,
and Europe has become Latin America’s main source of direct
investment.
Trade relations are somewhat ambivalent. Although bilateral trade
has risen sharply in absolute terms, in
relative terms its importance has diminished. And while the European
Union is Latin America’s second most important trading
partner after the United States, the Union conducts less than
five
percent of its external trade with Latin America. In order to
increase trade flows, the European Union has opened negotiations
on bilateral free trade agreements with various Latin American
partners, signed pacts with Mexico and Chile, and is also negotiating
an agreement with Mercosur, the Southern Latin American common
market. A special feature of these agreements is that they also
provide for political dialogue and development cooperation and
thus offer a potential framework for coordinating common policies.
So where does this leave the strategic partnership, which presupposes
the
existence of important, common international goals that the parties
want to achieve together? The formulation of such goals is only
just beginning, and the three EU-Latin American summit meetings
held so far have issued relatively vague declarations. The most
recent summit meeting, in Guadalajara,
Mexico, in 2004, at least chose multilateralism as a focus and
discussed closer international cooperation between the two regions.
Whether or not this really constitutes a “strategic partnership” especially
in light of the host of “strategic partnerships” between
the European Union and other regions and countries the
fact remains that the diverse
political, economic and social ties
between the two regions, and the increasing international commitment
of Latin American governments, represent a significant opportunity
for closer
cooperation between the European Union and Latin America.
In cultural terms, Latin America is part of the West. The subcontinent’s
history is inextricably linked to that of Europe. A large proportion
of the populations on both sides of the Atlantic share common
linguistic, religious and philosophical roots. With the recent
spread of democracy and open markets, Latin America may now also
be regarded as part of the West in political and
economic terms. If only in general terms, the declarations of
the three summit meetings emphasize that Europe and Latin America
have close ties, as well as common values and interests. Globalization
is shrinking the distance between the two regions, and common
ideas and interests are becoming more apparent. The international
civil-society movement is mainly active in Europe and in North
and South America.
Latin Americans are also following European developments more
closely. There is more coverage of Europe in the media, and Latin
American academics and intellectuals are showing increased interest
in the history of European ideas. The European economic and social
model is also attracting greater attention in Latin America as
reforms undertaken in line with the so-called Washington Consensus
have helped stabilize economies but have not led to hoped-for
successes in the social sphere, where
inequalities remain significant.
Finally, despite wide variations in forms of government, Europe
and Latin America share an interest in regional
integration. Although the level of institutionalization achieved
in Latin America is far short of that in Europe, Latin America
is the most integrated region in the world after Europe. Latin
Americans often cite EU integration as a model for their own
integration efforts, and both areas regard subregional integration
as a step toward a multilateral world order.
As Latin Americans demand a more active EU policy toward their
region, we should look at the subcontinent from a new angle.
If European foreign policy
is geared only toward the European Union’s short-term economic
and
security interests, Latin America will continue to receive little
attention. The European Union, however, also needs help in tackling
other urgent global challenges, and in that light, Latin America
is beginning to look like an increasingly
indispensable ally, even if it still wields less international
influence than some other players.
As it is plainly impossible to devote equal vigor to solving
all the world’s problems, it would make sense to select
a few initial issues for cooperation. First of all, perhaps,
we could concentrate on the reform of the United Nations. Both
regions have an interest in a democratic and efficient UN system
that grants all states a say in decisions on global political
issues and lends those decisions more force. Europe and Latin
America prefer multilateral cooperation to unilateral
action, as demonstrated, for example, by the ambitious integration
projects in both regions.
It would also, therefore, be in our mutual interest to cooperate
more closely in negotiations within the World Trade Organization.
The two regions would benefit more from a liberalized world trade
order than from agreements limited to Europe and Latin America,
but they believe that world trade should be liberalized cautiously.
Europe should also take seriously the efforts of Brazil and the
Group of 20 which includes ten Latin American members to
create a more just world trade order. To ensure that Latin American
and other developing and newly industrialized countries really
benefit from more open trade,
Europe, as the stronger trading partner, should make more concessions.
The
development progress that could be achieved in this way would
also benefit Europe in the long run by contributing to global
stability.
Finally, we should cooperate on global environmental and climate
policy. Thanks to the Amazon rain forest and the region’s
rich biodiversity, Latin America is of special importance to
the global ecological balance, while many EU countries are particularly
active in environmental causes. Latin America is itself now becoming
more involved in environmental issues.
Nevertheless, we should have no
illusions; great efforts and many compromises will be necessary
on both sides. As the opening of European markets,
especially for agricultural products, is often seen by Latin
Americans as the acid test of their relations with the European
Union, the successful conclusion of an Association Agreement
would be a decisive step towards intensifying the partnership
between the two blocs.
The Latin American countries must overcome their remaining internal
problems if they are to play a long-term role in mastering global
challenges.
Instability within individual states can have a destabilizing
effect on the entire region. The European-Latin American partnership
should, therefore, continue to focus on supporting the economic
and social development and the further democratization of the
region. To date, EU resources devoted to Latin America have been
inadequate, and European farm subsidies, for instance, have
distorted trade.
The European Union should not
ignore the fact that Latin Americans continue to have reservations
about
giving up national sovereignty, which will at least slow down
multilateral
cooperation. Latin American governments, however, have proved
increasingly ready to compromise on this, and the EU countries
should use the political dialogue between the two regions to
promote further cooperation on global governance.
Ultimately, every country must
participate in the resolution of global challenges, and the EU-Latin
American partnership should in no way exclude third parties.
Europe and Latin America have a prime interest in including the
United States in a cooperative system of multilateralism. Equally,
the complex project of global governance will be
possible only if networks of civil-society representatives participate
alongside governments. Nevertheless, Europe and Latin America
could provide a positive example of the joint shaping of globalization
by strengthening their partnership and engaging in more targeted
cooperation. The next EU-Latin American summit meeting, due to
be held in Vienna in 2006, should agree to further steps in this
direction.
Heinrich Kreft is Deputy Director of the
Policy Planning Staff of the German
Foreign Ministry, and can be reached at Heinrich.Kreft@diplo.de.
He writes here in a personal capacity.
go to top 
