By: Staff Writer
July 18, 2023
The European Union (EU) will invest €45bn in the Latin American and Caribbean (LAC) region by 2027 to be a “counterbalance” to China’s influence.
European Commission President, Ursula von der Leyen, said that the money will take the form of concrete investments, including in the green energy sector, with the idea being to counterbalance, among others, China’s influence in the region.
The EU also needs to get their hands on the raw materials that the LAC has on their soil, so the best way is to make tangible investments that the region needs to exploit this. Least of which is that the LAC holds 85 percent of the world’s lithium reserves.
“What we want to discuss today is how to further connect our people and our businesses, how to reduce risks and strengthen and diversify our supply chains, and how to modernise our economies in a way that reduces inequalities and benefits all,” von der Leyen said on Monday.
In a fast-changing global context, the EU-LAC relationship warrants a renewal. 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 close, trusted partners.
As partners of choice, the EU and LAC should work together to harness their collective strength, defend common interests and jointly address global challenges. This Joint Communication sets out the EU’s proposal to develop together an ambitious and forward-looking agenda for a new era of cooperation between equal and like-minded partners.
A joint-communication laid out three priority areas for the EU-LAC partnership:
“First, the EU and LAC are key allies to strengthen the rules-based international system and step-up joint action to promote peace, security, democracy, the rule of law and human rights. Representing together one third of the membership of the United Nations (UN), the EU and LAC play an important role in upholding international law and defending the principles of the UN Charter, including by standing up to the Russian aggression against Ukraine. The EU and LAC also share the objective to make the multilateral system more effective and representative.
“Second, the EU and LAC are close trade and investment partners with a shared interest in promoting sustainable growth and enhancing economic resilience, while reducing excessive dependencies and diversifying trade relations. The two regions are connected by one of the densest networks of trade agreements, which should be completed, while its further potential is unleashed. The EU is the top investor in the LAC region, the third largest trading partner and the leading contributor of development cooperation.
Third, both regions aspire to build inclusive and sustainable societies, based on a joint commitment to the 2030 Agenda and its Sustainable Development Goals (SDGs). The LAC region is vital to the ecological balance of the planet, in addition to being a major food producer and a renewable energy powerhouse. The EU and LAC should together lead a fair green and digital transition, including by rolling out the Global Gateway investment strategy.”
It added: “EU-LAC relations are based on a multi-layered and flexible approach, taking into account the diversity and changing dynamics of the region. The EU will continue to support regional integration while also deepening engagement on shared goals with interested countries. At bi-regional level, the Summit between the EU and the Community of Latin American and Caribbean States (CELAC) in July 2023, the first since 2015, offers a unique opportunity to reinvigorate the partnership.
“To drive forward this positive agenda, both sides should commit to regular meetings at the level of Heads of State and Government, Foreign Ministers’ meetings in alternate years and other ministerial and senior officials’ meetings as appropriate. A permanent coordination mechanism between the EU and CELAC should be set up to ensure continuity and follow-up, matching the evolution of CELAC to set up its own structures. Its goal would be to build common ground on the full range of issues of the agenda, respond to emerging developments and promote specific sectoral dialogues and joint initiatives as necessary.”