europe and latin america
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Europe and Latin America. To the search of new models? From dependency to interdependency. From colonization to independence. Latin America’s incorporation to the world-the beginning of subordination and plunder of resources - PowerPoint PPT PresentationTRANSCRIPT
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TO THE SEARCH OF NEW MODELS? FROM DEPENDENCY TO INTERDEPENDENCY.
Europe and Latin America
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From colonization to independence
Latin America’s incorporation to the world-the beginning of subordination and plunder of resources
Colonial relationships: race and ethnicity, the other/inferiority/imitation
Economic dependency political and cultural dependency
Independence-neocolonialism
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70-80s: a new profile
70s-multipolarism and détènte: Social democracy as a new alternative searching for new partners and influence among political parties in LA
Inter-parlamentarian contacts and regular meetings
80s-bipolarisation in Central America searching for a mediation role France, Germany and Sweden
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Central America: a test for multi-polarity
1981 Resolution Mexico-France on El Salv1982-Nicaragua- assistance offers from
Europenegative reactions from the USEC gives in and goes back to a low profile
Contadora group’s support to peaceful solutions
Falklands-re-polarization-EC+ US vs LASn Jose’s process- support to Arias Plan
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Rio’s dialogue since 1990
Political dialogue between two continents Development of differentiated relations
following regional groups, development levels and political/economic interests
3rd generation agreements: conditionality clauses on democracy, human rights and structural economic reforms
Neo-liberalization and the end of alternatives?
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Sub-regional differentiated treatment: 90s
Andean group –preferential agreements and cooperation projects demands of strategies to fight coca production
Central America: development assistance, framing small/middle peasant production-marked orientated networks of support
Mercosur – frame agreements and direct support to regional economic integration cooperation and open path for free trade
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Privileged relations
Mexico: Economic partnership, political coordination and cooperation agreement, FTA entered into force 2000.
Chile: Association Agreement 2002-entered into force 2005towards a free trade area
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The survival of colonial links: bi-continental summits
following Spain and Portugal’s presidencies
Rio 1999-strategic association and Action plan Madrid 2002- to increase cooperation in 3 areas: hum.r.,
promotion of the information society and struggle against poverty
Main goal-human developm and the strengthening of civil society Guadalajara 2004: intensifying the struggle against drugs,
agreements on reg cooperation Lima maj 2008, May 2010 in Madrid “Towards a new stage in the bi-regional
partnership: Innovation and Technology for sustainable development and social inclusion”
Jan 2013: EU-CELAC meeting in Santiago, Chile: Alliance for Sustainable Development to Promote Investments of Social and Environmental Quality
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Madrid May 17-18, 2010
LAC: very divided politically/ideologicallyHonduras as a divider: boycott (UNASUR),
but also the Cuban issueFinally Venezuela and UNASUR attended, not
Honduras (only to the CA-UE summit: May 19)
What happened with the strategic alliance project of 1999?
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Civil society
Civil society’s organizations- NGOs-following already existing trade agreements: Europe-Mexico-1st meeting Brussels-2002, Mexico 2005, Vienna 2006: discussion, reports and accountability
EU-Andean countries-NGOs forum-March 2005-Brussels
In all summits: parallel NGOs meetings
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TradeEU- second regional associate of LA after
the US but losing importance to China in South America
2011: 214 bill euros: 6,5% of EU’s total trade
Effects of EC-EU’s enlargement on EU-LA’s relations
Exchange structure: typical developed-developing countries (industrialized products vs raw materials) with the exception EU-Mexico
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LA’s share in EUs imports (percent)
1965 1970 1980 1990 2004
world 100 100 100 100 100
Within EC-EU
46 51 57 61 30.9
LA 5.3 4.2 2.9 2.1 5.2
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LA’s share in EU’s exports (percent)
1965 1985 1990 2004
LA 6.4 4.1 2 3.6
Total 100 100 100 100
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2009: EU’s trade with LAC
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EU-LA trade up to 2012
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EU’s imports and exports: origin and destination 2004
(percent)Partner regions imports exports
NAFTA 58.8 89.4
Latin America 5.2 3.6
EU candidates 0.1 0.0
EFTA 0.5 0.1
Medit countries 0.3 0.1
ASEAN 4.2 0.2
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LA: exports structure
1990 1999
Raw materials +energy
43% 23%
manufactures 57% 64%
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EU’s imports and Mercosur
Raw materials + energy (in % of all imports):1965: 45 % 1990: 24%
1995: 55% of all Mercosur’s exports to EU raw materials and energy
2005: 21.2%
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EU-Mercosur
1995: Frame-agreement of cooperation and association starts to be negotiated
1999: Free trade agreement negotiations startgoal 2006
Association agreement: 2001: 3 pilars: MNC/polit/trade
Assistance/consultancy –for regional integration
EU interested in telecommunication and financial services
Obstacles for FTA: EU’s CAP but advances since Cancun
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EU-Trade with Mercosur
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EU imports from Mercosur
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EU exports to Mercosur
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EU trade with Chile
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EU-Chile
EU: Chiles biggest trade partner and biggest investor
Chile exports mainly minerals and agrifood sectors
Also liberalization in service sectors
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The EU and the Andean countries
Political dialogue and cooperation agreement: 2003
EU: leading donor of official development aid to the Andean region, with €713 million set aside
June 2007: negotiations began on a new Association Agreement bi-regional trade and investment
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Political Dialogue and cooperation agreements
A very broad program of cooperation at the economic, political, social level focusing strategically on the fighting of drugs production and traffic
Also: providing aid for e deepening of the integration process within Andean countries
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Problems towards assoc agreements
June 2007: negotiations began on a new Association Agreement
Several round negotiations (3) but the 4th round to take place in Brussels in July 2008: suspended
Problem: agreements around intellectual property, privatization of public services and state licitations
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Problems-negotiations with EU
Division among Andean states: Colombia and Peru-for bilateral agreements, Ecuador y Bolivia: bloc negotiations and agreements
Official announcement-mid nov: Colombia and Peru continue the negotiations on their own, Ecuador wants to follow
Bolivia is isolated-insists on bloc negotiatBolivia also enters bilateral negotiations
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EU trade with the Andean community
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EU exports to Andean Community
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EU imports from the Andean C.
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EU-Central America
A relation based on development cooperation in the 1980s-1990s
Upgrade to a trade relation: negotiations for an Association agreement
Problems in the negotiations: quotas, the entrance of European milk’s products, rules of origin for CA’s textiles, banana’s entrance to the EU plus migration issues
Signed is spite of all in Madrid May 2010
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EU-CA 2006-2008
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CA-EU
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EU-México: FTA in 2000
Signed in 1997- starts in 2000 Elimin tariffs -48% for all ind product fr EU, 82%
for all Mex products to EUGoals: elimin of all tariffs for ind prod 2007No visible results in trade exchanges-stagnated
and big deficits for MexicoInvestmentsrules rejected for MAI accepted by
Mexico (already-privatized banling system-mainly European investments
EU-Mex-FTA: a door for EUs products to the US (NAFTA)
Clause of democracy and HR-difficult to accept for Mexico
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EU’s trade with Mexico
Year Imports: % of tot
Export: % of tot
2001 0.78 1.71
2002 0.69 1.70
2003 0.69 1.64
2004 0.67 1.52
2005 0.76 1.58
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Mexico’s trade with EU
Year EU share of tot imports %
EU share of tot exports %
2000 8.27 3.30
2001 9.34 3.19
2002 9.50 3.19
2003 10.16 3.55
2004 10.06 3.18
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EU trade with Mexico
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EUs import from Mexico
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EUs exports to Mexico
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EU’s investments in LA: the crucial pillar
Investments FDI to LA: increase during the 90smostly privatized industries: energy/telecommunications, banks, trade:
tot: 385 bill in 2010: 43% of the region’s FDI and higher than EU’s investm in Russia+China+India combined
Latest summit: investment is the crucial pillar of the relationship EU-LA
FDI fr EU concentrates on Mercosur (recently also Mexico)
EU’s investments in LA by country:Spain: 28% (55% of all Spanish investm outside EU)GB: 22%, France: 13%; Germany: 14% (45% of German
investments in developing countries), Holland: 14%, Belgium: 3%, Italy: 2%, Sweden: 1,3%
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EU’s investments in LA: 2
EU: the biggest extern investor in LA (decade 2000: 40%):
2011: US (18%), Spain (14%) y Japan (8%). China: 5,2%
Flows of European FDI to Latin America peaked in 2000 (€ 46 billion), with the total stock of European investment in Latin America growing from € 189.4 billion in 2000 to € 385 bill in 2010 2
Investments concentrated in Mercosur and México
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Investments-where?
2011: 57% FDI in South America (without Br): in agriculture, mining and energy, services: 36%, manufactures: 7%.
Brasil: 43,8% of all FDI in LA. Manufactures 46,4%; services: 44,3%, raw materials and extractive ind 9,2%
México, CA and Caribbean: services: 52,5%; manufactures: 39,7%, natural resources: 7,8%
81% of all FDI: Brasil, México, Chile, Colombia and Peru
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EU: Assistance Aid to LA
LA not a priority area for EU mid 90s: only 10% of all EU development aid but it was 43% of all external aid to the region in 1995 (17% came from the USA)
Aid concentrated on Central America and Bolivia
Focusing on economic reforms, support to public infrastructure: to make the local governments more effective, in democracy, human rights issues and struggle against poverty.
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A case of aid: Sweden-LA
Sweden: 2002: less than 10% of all bilateral aid: to LA
Aid: mostly to Central America (Nicaragua and El Salvador-peace, reconciliation, economy rehabilitation, democratisation-this has changed lately-abandoning CA)
South America: Bolivia, Chile, Brazil-democratisation, economic reforms, human rights and technical education
The main areas: health, education, human rights
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Civil Society and aid in the case of Sweden
Swedish NGOs channel 20 % of all bilateral aidBoth secular and religious NGOsFocusing more and more on long term projectsMain financing sources the state (80%) but
their own financing is also increasingCooperation partners: local NGOs and
sometimes: state organsSome NGOs have local offices and send their
own assistance volunteers: Svalorna, Civis
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EU-LA: an inconsistent relationship?
Priorities for EU: Economic investment, trade, assistance
Priorities for LA- trade-specially Mercosur, investments –specially Mexico
Trade is becoming balanced but it has lately been a deficit for EU and is still insignificant for EU-therefore: interest in Association agreements and FTAs
Extreme interest in LA’s nature resources-competition with China
EU-sometimes an alternative (HR and democracy clauses) but mostly a contradictory-inconsistent partner EU’s policies subordinated to the US, to CAP and complicated by enlargement
Asymmetry problems extremely present although LA’s dependency is even bigger from the US