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Europe Daily Bulletin No. 9381
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GENERAL NEWS / (eu) ep/latin america

PES group seeks to reinforce EU/Latin American relations despite deadlock in trade negotiations

Brussels, 07/03/2007 (Agence Europe) - The PES group puts EU/Latin American relations at the very heart of its political priorities”, said Martin Schulz, President of the Socialist group at the EP in Brussels on Tuesday 6 March, going on to acknowledge that “these relations are unfortunately not at the level that we could wish for”. During a day which was given over to relations between these two parts of the globe, the Socialist group of the European Parliament (PES) discussed the role that the left-wing parties could play in strengthening this relationship and, in particular, promoting regional integration between the South American countries. The shadow cast by trade negotiations at the World Trade Organisation (WTO) - which are proving extremely difficult to conclude - and those on a bilateral trade and cooperation agreement between the EU and Mercosur - themselves at deadlock since their launch eight years ago - throw cold water on the chances of seeing substantial progress on other planks of EU/Latin American cooperation any time soon.

Frank-Walter Steinmeier said that the EU must recognise its “commitments” to Latin America and do “far more” than it had done in the past. According to the German federal foreign affairs minister, the EU should sign “association agreements” with the Mercosur countries (Argentina, Brazil, Paraguay, Uruguay and Venezuela), with the Andean Community and Central America (see EUROPE 9323), and should “go beyond economic exchange”, instead laying emphasis on “cultural and scientific exchange”. This is in the joint interests of both regions. Concerned at the economic development of Latin America, the head of German diplomacy recommended “regional integration” which he sees as “the only solution”. “Europe has been this way before”, he added, voicing his regret at the dispute between Argentina and Uruguay on the implanting of paper factories. Welcoming positive changes on the South American continent since the 1970s, with the fall of dictatorships, a new dawn of democracy and a reduction of the public debt in certain countries, Mr Steinmeier spoke of the “excellent contacts” which Europe has with “many countries in which the Left is in power”, such as “Brazil, Chile, Uruguay and Argentina”. However, he added, “there are other countries in which tensions are growing, institutions are getting weaker, and the leaders are concentrating power in their own hands”, and “these tendencies may end up shattering the unity of the continent”. The current president of the Council of the EU will visit Santo Domingo, where he will meet the Rio Group, an informal political body made up of the countries of Latin and Central America and the Caribbean (see EUROPE 8957).

EU/Latin American relations have not always enjoyed sufficient interest, put in Luís Amado, Portuguese Minister for Foreign Affairs. In order to “strengthen them, Europe”- which is revising its external agenda and taking on new responsibilities in resolving international problems (climate change, balancing international trade, fighting poverty and instability as part of North/South relations) - “must adapt”. Mr Amado pleaded for Europe to expand its vision of the American continent, which, he feels, focuses a little too much on the United States. “What happens in Latin America concerns (it)”, he said, with the failure of the neo-liberal experiments of the 1990s and the “left-wing political experience” of Brazil, which proved that there is an alternative path to liberalism. In his view, “the alternative” facing Latin America is as follows: “a revolutionary change”, which would challenge the equilibrium of the region, or the “reforming path”, which could take some inspiration from Europe's experiences. The forthcoming Portuguese presidency of the second half of 2007 will attempt to conclude negotiations on association agreements between Central America and the Andean Community.

The time has come for the EU to strengthen its political, economic and cultural ties with Latin America”, said Trinidad Jiménez, Spanish Secretary of State with responsibility for relations with Latin America. Pointing out that the South American continent constitutes a “homogenous area”, holding the “same values” as those of the EU and speaking two European languages, she called on the Europeans to “seize this opportunity” and to “show proof of increased political goodwill”. If they do not, they will not get a second chance to take this “historic opportunity”. Is reform of the current cooperation structures necessary?, she asked. Like Mr Steinmeier, however, she did not hide the fact that certain “doubts” remain about progress in the situation in Latin America, where poverty has not been eradicated. Referring to the example of Bolivia, where the population has taken on a political leader of American Indian origin, for the first time ever, she stated that the process of democratic conciliation under way in Latin America must be “followed with respect”.

Raising the subject of the panel which has been set up to deal with the “deadlock” in trade negotiations between the EU and Mercosur, French Socialist member Harlem Désir spoke of the role of the left-wing parties in getting out of the “Washington Consensus”- a liberal-inspired economic strategy which was recommended to the Latin American economies which were struggling in the 1980s- and building a “new model”, which is capable of balancing economic growth with social equity. Despite the previous declarations, Latin America is still “a very small echo” a long way from the centre of the European “radar”, said Maria Celina de Azevedo, the Brazilian Ambassador to the EU. She spoke out against the “mutual mistrust” characterising relations between the two regions, and the “tendency” of the partners to “point the finger at the other” and to put problems on the table which did not exist when the trade negotiations started. On the Doha Round, Ms de Azevedo said that “we are at deadlock because we are waiting for the elections to take place in France”, a country in which there is a “particular sensitivity” on agriculture. She went on to regret the disaffection of the European governments - notably the left-wing ones - which have, traditionally, occupied the ground in Latin America.

Aloizo Mercadante, the Brazilian senator, spoke of “eight countries” of South America which are busy “seeking a new model of development” as a “reaction to the neo-liberal policies” which went before. Brazil, where he was involved, as an economist, in drafting the government's economic policy, has carried out no privatisations in contrast to the previous period, has anticipated paying off debt to the IMF and has launched major programmes to improve the social situation (education, healthcare and banking capacity for low-income families), he explained. According to Mr Mercadante, “the current cycle of change in Latin America is going via a strengthening of regional sentiment”, by such things as the completion of infrastructure projects and energy programmes. Carlos Omanimi, an economist and Chilean senator, said that Europe's doubts about its social model could have an impact on discussions underway in countries like his, where the economic situation is favourable and the modernisation of social protection systems is the subject of debate. Spanish Socialist member Javier Moreno Sánchez stressed the “diverging commercial interests” between the EU and Latin America. The former defends its agriculture and would like to see the South American markets for industrial products and services open up, which is diametrically opposed to the position of the latter, which defends its industry and its services and would like increased access to the European market for its agricultural products (see EUROPE 9263 and 9202). Véronique de Keyser (PES, Belgium) laid emphasis on the “economy of solidarity”, where “micro credit” and the role of women have a major part to play. (mb)

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