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Europe Daily Bulletin No. 9663
THE DAY IN POLITICS / (eu) eu/latin america

EU/Latin America and Caribbean Summit expresses deep concern about rise in food prices

Brussels, 19/05/2008 (Agence Europe) - Meeting in Lima on 16 and 17 May, the heads of state and government of the European and Latin American countries adopted the “Lima Declaration” which constitutes the joint response from both regional entities to the main problems facing their peoples: - the rise in food prices; combating poverty, social exclusion and inequality; combating climate change; and sustainable development and energy policies (see EUROPE 9662).

If the crisis that has come about due to the surge in food prices worsens, then “hundreds of millions of people will be faced with hunger”, warned Peruvian President Alan García. Already in Latin America and in the countries of the Caribbean, as in Haïti, riots due to hunger have taken place. Devoting a specific paragraph to this in the Lima Declaration, European and Latin American leaders express “grave concern regarding the impact that a rise in food prices will have”. They mark their agreement on the need to: - take immediate measures with a view to helping the most vulnerable countries and populations; - provide a sustainable medium-term response to the current crisis through coordinated action on the part of the international community with a view to meeting demand and strengthening agricultural capacities and rural development. They undertake to obtain concrete results during the conference on food security organised by the FAO early June in Rome.

Discussions on the food crisis highlighted the polemic on the presumed influence that biofuels have on the rise in food prices. Brazil, which is the second largest biofuel producer, actively promotes this energy as a way to counter climate change and as a source of development for the countries that depend on fossil fuels. It opposes certain European countries, international bodies and environmental activists who denounce the fact that surface areas used for producing food are now being used to produce biofuels - a phenomenon that would contribute to the rise in food prices. “They want to decontaminate the planet, combat global warming, sign the Kyoto Protocol, and, when Brazil offers a fuel that does not emit CO2, they prefer to use fuels that do give off this emission: - it is contradictory”, said Luiz Inácio Lula da Silva, pointing to oil companies as being responsible for criticism against biofuels. The Brazilian president received in Lima the support of Spain's Prime Minister José Luis Rodríguez Zapatero, who felt the debate on biofuels must be conducted in a serene and calm atmosphere. “From my point of view, the relationship (between biofuels and the rise in food prices) is not very obvious either”, he said.

The Lima Declaration reaffirms the importance of respect for territorial integrity and for political independence. It urges the parties to abstain from using force in their international relations and to firmly reject all unilateral measures that run counter to international law. A strong way of inviting, without naming them, the Latin American countries to settle their differences through dialogue. Diplomatic relations between Colombia, Ecuador and Venezuela are particularly tense due, in particular, to the conflict opposing the Colombian government and the revolutionary armed forces of Colombia. An international court of justice should rule on the territorial difference between Peru and Chile. The new Paraguayan president, Fernando Lugo, has pointed out that a territorial agreement will be signed next month with Bolivia in order to restore normal relations between the two countries. In this context, Mr García called for an end to the “arms race”. In his view, the creation of a Latin American defence committee, a proposal coming from the Brazilian delegation, should be subject to commitment against the sale and purchase of arms between future member countries.

The 5th EU/Latin America and Caribbean Summit makes the fight against poverty, inequalities and social exclusion a key priority of the strategic partnership uniting the two regions. Argentinean President Cristina Fernandez de Kirchner, says inequality in the distribution of income is the major problem in so far as there is, in Latin America, large pockets of poverty despite the high rates of economic growth notched up. “We must invest in equity, education and education”, the Chilean President Michelle Bachelet stressed. Mexican President Felipe Calderón stressed: “Nether the State nor the market can (alone) resolve the problem of poverty. The market is a necessary condition for production growth but is not enough and requires corrective action on the part of the State”. The Lima Declaration calls for the use of economic growth for redistributive purposes. It recommends the setting in place of social policies that above all guarantee the right to food, make the protection of pregnant women and new born universal and give access to water, eradicate illiteracy, improve the quality of basic education, as well as vocational training and also the conditions of housing for the most vulnerable populations. On the question of migration, both regional entities state the “positive impact of migration in both directions”.

They consider it is not only fundamental to ensure respect of human rights for all migrants but also to develop an approach that includes ordered management of migratory flows. They also suggest the setting up of a structured and comprehensive political dialogue in this field.

“Trade is an engine for growth, sustainable development and the reduction of poverty”, the European and Latin American leaders say, taking the view that trade policies must be formulated in the aim of minimising the negative social impact of globalisation and ensure that the poorest populations may benefit from them. They above all consider initiatives should be launched to promote the follow-up and exchange of information on the performance of small and medium-sized enterprises. We recall that the Lima Summit provided an opportunity to take stock of talks underway between the EU and several regional sub-entities (Community of Andean Nations, Central America and Mercosur) with a view to signing association agreements including a trade section (see related article).

Environmental protection was the second main issue on the agenda at the 5th EU-Latin America Summit. Participants established a clear link between economic and social development and protection of the environment. They undertook to encourage bi-regional cooperation in all environmental matters, such as climate change and desertification, energy, water, biodiversity, forests, fisheries and the use of chemical products. On combating climate change, both European and Latin American countries expressed their determination to reach agreement under the Bali action plan “no later than 2009”. Acknowledging states' sovereignty in the management of natural resources, they also underlined the importance of ensuring a regulatory framework that encouraged (private) investment in this area. They said they would also support measures in the rural, coastal and mountainous areas of Latin America to promote adaptation to the effects of climate change on biodiversity and food security. A joint programme, EUrocLIMA, is to be launched in a bid to promote dialogue, sharing of experiences and the conducting of studies on the environmental challenges and their impact on Latin American economies. (M.B.)

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