The EU and the countries of Latin America and the Caribbean held an initial summit in 1999 in Brazil and established a ‘strategic partnership’, but it was never fully operationalised. Recent global shocks, including the coronavirus pandemic, the war in Ukraine and the acceleration of the climate crisis have made more urgent the need to do so. The EU’s renewed interest in engaging with Latin America stems from its desire to diversify trade flows, secure access to critical minerals for the energy transition and to align on climate mitigation and other global issues. Brussels is also interested in greater cooperation over the global narcotics trade, given that cocaine shipments from Latin America to the EU have increased in recent years alongside a surge in European use of the drug.
Opportunities
The EU–CELAC summit is in many ways well-timed. Brussels is interested in finalising key trade deals with Latin America, including modernised economic agreements with Chile and Mexico, as well as the long-debated and strategically important EU–Mercosur association agreement (including Argentina, Brazil, Paraguay and Uruguay). The EU is already a significant geo-economic actor in the region – in recent years it has been the largest provider of development assistance, the third-largest trading partner and the largest source of foreign direct investment in the region – which provides leverage in negotiations and a solid foundation for future engagement.
