EU competitor to China’s Silk Road seeks entry in Latin America

The Global Gateway initiative by the European Union (EU), a significant infrastructure development program, took center stage at the recent summit with the Community of Latin American and Caribbean States (CELAC).

The program aspires to cultivate sectors such as raw materials, tech infrastructures, clean energy, and health, targets Latin America, Southeast Asia, and Africa.

EC President, Ursula von der Leyen, announced plans for the EU and its member states to channel EUR45 (US$50) billion into Latin America through Global Gateway by 2027.

“Over 135 initiatives, from clean hydrogen to high-performance data cable networks, are already in progress,” said von der Leyen.

The EC President emphasized the intention for the EU and Latin America to determine priority sectors and how to maximize investments collectively.

She added that the initiative also aims to create local value chains within the regions to ensure the added value remains local.

Despite this optimism, some analysts, like Jacob Kirkegaard of the German Marshall Fund, have expressed skepticism about the program’s potential to challenge China’s New Silk Road initiative.

He opined that Global Gateway, while continuing to exist, might be more of an ethical posture and not significantly affect the cost of infrastructure for emerging markets or diminish the influence of China’s initiative.

Furthermore, while the EU’s initiative aims to foster growth among its neighboring countries, Latin America isn’t considered the main priority.

The recent EU-Celac summit was not perceived as a significant catalyst for Global Gateway. Despite these views, proponents remain optimistic about the initiative’s impact and long-term presence.

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