Growing Significance of Latin America in Europe’s Strategic Outlook
A study by Spain’s “Real Instituto Elcano,” initiated during its EU Council presidency, highlights Latin America’s growing importance to Europe.
The study aims to explore trade relationship expansion and diversification with Latin America.
It addresses misconceptions in Europe, often portraying Latin America as politically and economically unstable and overshadowed by China.
The report, titled ‘Why does Latin America matter’, involved surveying European academics, business leaders, and politicians.
It concludes that Europe’s negative perceptions are not aligned with reality.
Germany stands out as not sharing this pessimistic view, largely due to limited news coverage about Latin America.
Orlando Baquero, Chairman of the Latin America Association, notes the region’s business potential despite higher risks and political instability.
José Juan Ruiz of Elcano emphasizes Latin America’s significant progress, except in Argentina and Venezuela.
He highlights its unique pursuit of democratic development, facing political crises and polarization.
The study underscores Latin America’s leadership in democratic development and human rights among developing regions.
This insight aims to encourage European authorities to forge closer ties with Latin America, echoing a similar report from six years ago.
Ernesto Talvi, speaking before the EU Council, underlines the European Union’s opportunity to become a major economic player in Latin America through the Mercosur-EU Agreement.
Substantial Increase in Trade
Talvi predicts a substantial increase in trade between the regions, driven by technical initiatives and harmonization efforts.
However, Talvi points out challenges from special interests, particularly in the European agricultural sector.
He suggests compensating affected sectors to enable benefits for other, non-conflicting sectors.
Talvi believes that once trade flows begin, many concerns will dissipate, emphasizing the mutual benefits of the agreement.
Baquero from LAV concurs, highlighting the treaty’s potential to access Brazil’s large market and reduce Europe’s dependency on external suppliers, a concern heightened by the Ukraine crisis.
The agreement aims to reduce Latin America’s reliance on China and diversify Europe’s suppliers, addressing energy dependency issues exemplified by Germany’s experience with Russian gas.
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