Latin America and the Caribbean

The European Union’s relations with Latin America and the Caribbean are multifaceted and conducted at different levels. Guided by the New Agenda for Relations between the EU and Latin America and the Caribbean, the EU seeks to strengthen and modernise the bi-regional strategic partnership. The EU interacts with the entire region through summits with the heads of state and government and through parliamentary diplomacy, while agreements and political dialogue bind the EU and the Caribbean, Central America, the Andean Community, Mercosur and individual countries.

Legal basis

  • Title V (EU external action) of the Treaty on European Union;
  • Titles I-III and V (common commercial policy; development cooperation and humanitarian aid; international agreements) of the Treaty on the Functioning of the European Union.

Region-to-region relations

The EU and Latin America and the Caribbean (LAC) are natural partners, linked by deep political, economic and cultural ties. The EU has an extensive network of agreements with 27 of the 33 countries in the region. Economic ties are also strong: the EU is the top investor in the region, its third largest trading partner and the leading contributor to development cooperation. Together, countries in the EU and LAC make up more than a third of the United Nation’s member states and are a force for strong rules-based multilateralism.

On 7 June 2023, the High Representative of the Union for Foreign Affairs and Security Policy and the Commission adopted a joint communication setting out ‘A New Agenda for Relations between the EU and Latin America and the Caribbean’, with the goal of strengthening relations and renewing the EU–LAC partnership. It focuses on six key areas:

  • A renewed political partnership;
  • Strengthening a common trade agenda;
  • The Global Gateway investment strategy to accelerate a fair, green and digital transition and tackle inequalities;
  • Joining forces for justice, citizen security and the fight against transnational organised crime;
  • Working together to promote peace and security, democracy, the rule of law, human rights and humanitarian aid;
  • Building a vibrant people-to-people partnership.

The communication recognises parliamentary diplomacy as a key component of the bi-regional relationship, and mentions, in particular, the role of the Euro-Latin American Parliamentary Assembly (EuroLat).

A. The summits

The first summit between the EU and LAC was held in Rio de Janeiro in June 1999 and established a bi-regional strategic partnership. The sixth and last EU–LAC Summit took place in Madrid in 2010, where the EU–LAC foundation was established with the mission of strengthening and promoting the bi-regional strategic partnership.

Launched in 2010, the Community of Latin America and Caribbean States (CELAC) is a regional bloc of the 33 Latin American and Caribbean countries. Regional summits between the EU and CELAC are now the main forum for dialogue and cooperation to jointly tackle global challenges. The third EU–CELAC Summit of Heads of State or Government took place in Brussels on 17 and 18 July 2023, eight years after the last summit. EU and CELAC leaders committed to renewing and institutionalising their long-standing partnership. The summit was held under the theme ‘Renewing the bi-regional partnership to strengthen peace and sustainable development’ and a broad range of issues were discussed, including enhanced cooperation in multilateral forums, global peace and security, trade and investment, combating climate change, justice and security. The President of the European Parliament, Roberta Metsola, participated in the Summit. Her address focused on the importance of moving forward on pending trade and association agreements. The Declaration of the EU–CELAC Summit 2023 was adopted at the end of the summit and was endorsed by all EU–CELAC countries except one. The 2023-2025 EU–CELAC roadmap was also published during the event and leaders agreed to host future summits every two years, with the next one expected to be in Colombia in 2025.

B. The parliamentary dimension

For the EU and LAC, parliamentary diplomacy is a key channel for dialogue, the exchange of ideas and the sharing of best practices. Regular contact between Members of the European Parliament and Latin American members of parliament started in 1974 with the first of 17 biennial inter-parliamentary conferences.

In 2006, the Euro-Latin American Parliamentary Assembly, or EuroLat, was established as the parliamentary institution for the bi-regional strategic partnership. It serves as a forum to debate, monitor and review all questions relating to the partnership.

EuroLat has 150 members: 75 from the European Parliament and 75 from Latin American sub-regional parliaments, including the Latin American Parliament, the Andean Parliament, the Central American Parliament, the Mercosur Parliament and the Congresses of Chile and Mexico.

EuroLat has held discussions on topics including digitalisation and the digital economy, cybersecurity and AI, the fight against organised crime, food security and climate change, among other things, and has convened a total of 15 plenary sessions since 2006. EuroLat’s most recent plenary session was held in July 2023 in Madrid, Spain.

The Joint Declaration of the third EU–CELAC Summit recognised parliamentary diplomacy as an important dimension of the bi-regional relationship and commended the constructive role played by EuroLat in this regard. In addition, the EuroLat co-chairs addressed the Summit with a statement focusing on the importance of concluding pending bilateral trade and association agreements on climate change and on the revitalisation of multilateralism.

EU parliamentary relations with the Caribbean countries fall under the remit of the OACPS[1]–EU Joint Parliamentary Assembly. The Samoa Agreement has applied since 2024, and has brought the regions’ specific needs into focus; this led to the creation of an EU–Caribbean Parliamentary Assembly. This new body held its constituent meeting in February 2024, in Angola, and is made up of 15 MEPs and one member of Parliament from each of the Caribbean countries. At its first meeting, the Assembly adopted its rules of procedure, which provide for an annual assembly held alternately in the Caribbean region and in the European Union. The next assembly will be held in the Caribbean in 2025.

Relations with sub-regions

A. Andean Community (Bolivia, Colombia, Ecuador and Peru)

In December 2003, the EU and the Andean region concluded a political dialogue and cooperation agreement (PDCA), which further broadened the scope of their cooperation, but it has not yet entered into force. Negotiations on an association agreement started in June 2007 and finally led to a Trade Agreement with Peru and Colombia in March 2010. The agreement, signed in June 2012 and ratified by the European Parliament in December 2012, entered into force with Peru on 1 March 2013 and with Colombia on 1 August 2013. It provides for the total liberalisation of trade in industrial products and fisheries over 10 years (with most tariffs eliminated upon its entry into force) and increases market access for agricultural products. It covers public procurement, investment, human rights, and labour and environmental standards. Ecuador joined the trade agreement on 1 January 2017; Bolivia can also seek accession, but hasn’t yet. The full implementation of the agreement is currently subject to ratification by one last Member State: Belgium.

B. The Caribbean

EU–Caribbean relations are shaped by various overlapping institutional frameworks, including the Samoa Agreement, with its Caribbean protocol, which includes 15 Caribbean states[2].

The joint EU–Caribbean partnership strategy provides a structured framework for broader and deeper dialogue and cooperation. The EU is the Caribbean’s largest trading partner. The key regional partner for economic dialogue with the EU is the Caribbean Forum (Cariforum). It includes members from the Caribbean Community, plus the Dominican Republic. In 2008, they signed the EU–Cariforum Economic Partnership Agreement, a comprehensive free trade and economic agreement.

Negotiations on concluding a PDCA with Cuba began in April 2014 and were successfully completed in March 2016. The agreement has been provisionally applied since 1 November 2017. It can enter fully into force once it has been ratified by all EU Member States. The PDCA includes three main chapters on political dialogue, cooperation and sector policy dialogue, and trade.

C. Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama)

An association agreement with Central America, the first region-to-region agreement of this type concluded by the EU, was signed in June 2012 and ratified by the European Parliament in December 2012. It consists of three pillars – political dialogue, cooperation and trade – and establishes the goal of developing a privileged political partnership based on values, principles and common objectives. It also aims to improve human rights, reduce poverty, fight inequality, prevent conflict and encourage good governance, security, regional integration and sustainable development. The association agreement also liberalises trade in industrial products and fisheries, and eliminates most tariffs on agricultural trade. Since 2013, the agreement’s trade chapter alone has been provisionally applied. All EU Member States have now ratified the agreement and it is expected to enter into force in 2024. An Association Parliamentary Committee will monitor the implementation of the agreement, broadening the possibilities for action at parliamentary level.

D. Mercosur (Argentina, Brazil, Paraguay and Uruguay)

Negotiations on an association agreement with Mercosur, including political dialogue, cooperation and free trade, started in 1999. A political agreement was reached in 2019; however, ratification of the association agreement was put on hold due to concerns with environmental and human rights standards in Brazil under President Bolsonaro’s government. Negotiations resumed with the election of President Lula da Silva in 2022, but there is currently a stalemate in the adoption process. If the agreement enters into force, EU exports to Mercosur would benefit from the removal of customs on 91% of goods and lower duties on various products. The EU would remove tariffs on 92% of goods imported from Mercosur, but would keep tariff-rate quotas on sensitive agricultural goods.

Relations with individual countries

A. Brazil

In 2007, the EU and Brazil established a strategic partnership. Within this partnership, the EU and Brazil pursue cooperation and policy dialogues in more than 30 areas of mutual interest, including international peace and security, human rights, public sector governance, economic and financial issues, innovation, social policies, education, the environment and regional integration. The EU–Brazil strategic partnership also includes a regular dialogue between Brazil’s National Congress and the European Parliament. The election of Lula da Silva as President of Brazil in 2022 led to a strong revival of EU–Brazil relations after he took office in January 2023, including a series of high-level visits by both sides. In 2023, no fewer than four European Parliament delegations[3] visited Brazil. An EU–Brazil summit is planned for 2024.

B. Chile

The EU concluded an association agreement with Chile in 2002. Negotiations to modernise the association agreement and replace it with an advanced framework agreement (AFA) began in November 2017 and concluded in December 2022. It was adopted by the European Parliament in February 2024. Parliament and the Council of the European Union have adopted the interim trade agreement (ITA), which only contains the AFA’s trade and investment elements, requiring ratification at EU-level only. Once Chile completes its internal ratification process, the ITA will enter into force. The ITA will then expire when the AFA, once all Member States ratify it, enters into force.

The modernised agreement consists of a political dialogue and cooperation pillar, and a trade and investment pillar. It enhances EU–Chile trade and investment relations, contains binding environmental and labour commitments, facilitates access to critical raw materials, and for the first time in an EU agreement, it has a dedicated chapter on trade and gender equality. The EU–Chile Joint Parliamentary Committee has monitored the implementation of the association agreement since 2003 and will continue to monitor the AFA with two yearly meetings.

C. Mexico

Mexico is the only country with which the EU has both an association agreement and a strategic partnership. The economic partnership, political coordination and cooperation agreement between the EU and Mexico, also known as the EU–Mexico Agreement, entered into force in 2000. It institutionalised political dialogue, broadened areas of cooperation, including democracy and human rights, and created an EU–Mexico free trade area. Negotiations with Mexico to modernise the EU–Mexico Agreement began in May 2016. In April 2018, the parties reached an ‘agreement in principle’ on the trade chapters, and achieved a consensus on the last outstanding aspects in April 2020. It is currently pending ratification.

The strategic partnership was established in 2009 with a double goal: enhancing EU–Mexico cooperation and coordination at multilateral level on global issues and adding political impetus to bilateral relations and initiatives. Three EU–Mexico summits have taken place under the strategic partnership, with the latest being in June 2015. There are regular high-level dialogues between the EU and Mexico on many issues, including human rights, security and law enforcement, economic issues, and the environment and climate change. The EU–Mexico Joint Parliamentary Committee has monitored the implementation of the EU–Mexico Agreement since 2005. The Joint Parliamentary Committee usually meets twice a year and is a fundamental forum for exchanges.

 

[1]Organisation of African, Caribbean and Pacific States.
[2]Antigua and Barbuda, Belize, Bahamas, Barbados, Dominica, Dominican Republic, Grenada, Guyana, Haiti, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago.
[3]The Delegation for relations with the Federative Republic of Brazil, the Committee on Foreign Affairs, the Committee on International Trade and the Committee on the Environment, Public Health and Food Safety.

Jonas Kraft / Clotilde Chantal Claudie Sebag