European Intersts in Latin America: A Quick Look on Real Intersts and Association Agreements

Since 1993, representatives from the member countries of the Andean Community of Nations (ACN) and the European Union (EU) have met periodically to strengthen their commercial and political ties. From the European side, the eventual goal of these meetings was to allow for the Andean countries to find an alternative development model to the one proposed by Washington. This would allow for the EU to assist in creating development programs and offer the Andean nations opportunities for economic integration with the European body. As part of this assistance, the ACN and the EU would negotiate a treaty to enhance their political dialogue and cooperation. Though negotiations have been stalled for quite some time, the potential Association Agreement resulting from the meetings would include pursuing common political and economic goals, such as a free trade agreement (FTA) between the two blocs and for further support for development within the Andean region.

European politicians would like their Latin American counterparts to believe that the above are the goals of the Agreement. In reality, the actions of EU leaders do not begin to address the complex political-economic situation found within the Andean region. Furthermore, it would be naïve to underestimate the possibility of special interests pressuring Andean politicians to sign an FTA and equally as far-fetched to assume that Europe intends to help the ACN out of pure altruism. The proposed FTA is based on previous agreements negotiated by Peru and Colombia (the latter ones, yet to be ratified) with the U.S. and must be closely scrutinized in order to ensure that it is both efficient and rejection proof.

The growing commodities crisis is transforming Latin America into a crucial region because of its abundant natural resources. Therefore, Europe developed a heightened interest in improving its commercial relations with the ACN. Other countries, such as the U.S., have already been doing so for some time. It is not a coincidence that both the EU and the U.S. started negotiating with the Andean countries in 1993, and that they compete in similar export markets such as machinery and other capital goods, in addition to both importing huge amounts of raw resources from the region. The Free Trade Area of the Americas (FTAA) was the U.S. attempt at pulling the region into its sphere of influence, though it utterly failed at this due to tough-minded opposition from populist and anti-imperialist presidents in South America. With the Western powers displaying a sobering interest in trading with South America, it became clear that it would be beneficial for the ACN to pursue an Association Agreement with the EU.