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The upcoming EU summit with leaders from Latin America and the Caribbean is sending a mixed message. While optimistic supporters consider the meeting itself a win, critics argue that the eight-year gap since the last gathering suggests neglect.
For Europe, Latin America should hold significant importance. The region is comparable in size to the US and China combined and possesses a quarter of the world’s forests, nearly a third of its fresh water, and a quarter of its cultivable land. With a growing middle class and majority living under freely elected governments, Latin America has a well-educated population and is a key player in the developing world.
China has recognized the strategic value of Latin America, actively building trade, investment, and influence, particularly in the clean energy sector where the region holds over half of the world’s lithium reserves and more than 40% of its copper. Moreover, China has become South America’s principal trading partner, surpassing the EU and the US combined.
Engaging with Latin America is not without challenges. The region’s politics are often turbulent, with some nations closely aligned with Moscow, such as Cuba and Venezuela. Unlike other regions, Latin America lacks a formal body like the African Union or Asean. The Community of Latin American and Caribbean States (Celac), which partners with the EU for the upcoming summit, does not have permanent staff. Instead, preparations have been coordinated through the temporary presidency of Saint Vincent and the Grenadines, a small island nation.
Despite these difficulties, China has aggressively pursued trade, investment, and influence in Latin America, outpacing Europe and potentially rendering it marginalized. As such, the upcoming summit offers a crucial opportunity for the EU to reinvigorate its relationship with the region, especially under the Spanish presidency, which provides additional momentum. The focus should be on establishing closer cooperation and transforming good intentions into tangible outcomes.
Brussels aims to entice Latin Americans with promises of investments in green energy, infrastructure, and social projects, although the availability of new funds remains uncertain. Additionally, closer collaboration on digital technology is on the table. Officials emphasize the shared democratic values and common cultural heritage between the two regions, and propose holding leaders’ summits twice a year.
However, for the relationship to flourish, it requires a robust commercial foundation. As the region’s largest foreign investor and a key trading partner, the EU’s commitment will be tested by the ratification of its trade agreement with the South American Mercosur bloc. Two decades in the making, the Mercosur pact still awaits final approval, with some EU member states requesting further environmental safeguards that Latin America views as thinly veiled agricultural protectionism.
If the EU genuinely wants to demonstrate its commitment to Latin America, it must find a resolution to any remaining environmental concerns and promptly ratify the Mercosur pact without renegotiation. Such action would send a stronger signal than any number of summits.
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