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ΕU - Μercosur relations/ EU relations with Latin America and Caribbean countries

EU - Mercosur Relations

The institutional framework of EU - Mercosur relations is based on two pillars:  political and trade. With regards to the political pillar, the negotiations reached a general approval of the EU - Mercosur Association Agreement, in June 2018, in Montevideo. The Agreement provides for the strengthening of political dialogue, cooperation in areas such as migration, digital economy, research and education, human rights, including the rights of indigenous peoples, corporate and social responsibility, environmental protection, and the management of, as well as the fight against terrorism, money laundering and cyber-crime. EU negotiations with the Mercosur countries on the trade pillar for a Free Trade Agreement (FTA) began in 1999 and, after twenty years and mutual concessions, reached an agreement on 28 June 2019. Nevertheless, trade relations should not be developed to the detriment of the environment or working conditions. On the contrary, sustainable development must also be a crucial component.

In the above context, following the wildfires in the Amazon in July-August 2019, the issue of sustainable development has come to the forefront, thus dividing Member States into those wishing to speed up the signing of the Agreement and those which set as a prerequisite the compliance by the Mercosur countries with the commitments arising from the Paris Agreement on climate change. In this context, reservations have been expressed by the European Parliament and the Civil Society.

Greece, without underestimating the importance of particularly critical issues of sustainable development, recognizes its special geopolitical importance, as this is the first comprehensive trade agreement concluded by EU with this group of countries. Undoubtedly, the EU will reap all possible benefits through focusing on taking the lead in the region.  Furthermore, as part of the effort to strengthen the resilience of supply chains, this Agreement will significantly contribute to the diversification of EU supply sources. Additionally, particular emphasis is placed on the following areas: a) shipping services, b) canned peaches and dairy products c) the enhanced protection of Geographical Indications (GIs).

EU relations with Latin America and Caribbean countries

Greece looks forward to the consolidation of EU - Latin America relations, through the development of political dialogue, the promotion of trade relations and the creation of a more favorable environment for attracting investment. Greece also attaches special importance to the joint cooperation with the CELAC countries in international fora on issues of mutual interest and global challenges, such as, among others, tackling the pandemic and environmental protection.

The dialogue between the EU and Latin America and the Caribbean seeks to provide answers to how the two regions can tap into their comparative advantages in the face of climate change and energy transition. Both regions have adopted the 2015 Paris Agreement on Climate Change, as well as the Sustainable Development Goals, which is why the green dimension is an essential component of the EU-LAC Partnership.

This is reflected in EU initiatives, such as the Latin American Green Bond Fund (LAGREEN), which aims to mobilize additional private equity for climate-friendly investments. Other areas of cooperation are waste management, but also hydrogen, with significant investments being made in this area in the Republic of Chile. The EU-LAC partnership is based on long-standing historical, cultural and economic ties, the strengthening of which is a long-standing Greek choice.