June 17, 2015
The European Union and Latin America
On June 10-11, 2015, the European Union (EU) hosted the
EU-Latin America and the Caribbean
second EU-Community of Latin American and Caribbean
States (CELAC) Summit in Brussels. During the meeting,
* EU: 28 member states; CELAC: 33 member states
the Heads of State and Government of the nations of Latin
* Population of both EU and CELAC member states: 1 billion
America and the Caribbean participated in a comprehensive
* European Union GDP (2014): approx. €13.9 trillion
dialogue with the EU aimed at “working for prosperous,
* CELAC countries GDP (2013): approx. $8 trillion
cohesive and sustainable societies for their citizens.” This
* EU is the second largest trading partner for the CELAC region
summit was the latest example of the EU’s long-term
(2013), tied with China and behind the United States. CELAC is
interest in, and maintenance of, its political and economic
the fifth largest partner for the EU.
relations with the Latin America and Caribbean (LAC)
* Trade in goods between EU and LAC is approximately €209
region.
billion (2014). Trade in services is approximately €72 billion
Background
(2013).
* EU is a leading foreign direct investor (FDI) in the CELAC
The European Union’s interest in developing closer
region amounting to approximately €505 billion (2013), larger
than EU FDI in Russia, China, and India combined.
relations with the LAC region was formalized in 1990,
when the EU held its first summit with the Rio Group (the
* CELAC region FDI in EU is approximately €135 billion, with
Rio Group was founded in 1986 by six Latin America
Brazil and Mexico leading the way.
countries and later expanded to 23). The Rio Group became
Source: United Nations, European External Action Service
the official forum for the political dialogue between the EU
(EEAS), Eurostat. Exchange: €1 = $1.1
and Latin America. The EU and Rio Group members met
approximately every two years at the ministerial level and
Political Dimension
addressed issues of common interest ranging from human
rights to poverty reduction, security, and the narcotics trade.
The second EU-CELAC summit was held in Brussels in
In 1999, in an effort to elevate the importance of EU-LAC
June 2015 and was co-chaired by Donald Tusk, President of
relations, the EU-Latin America and Caribbean Summit
the European Council, and Rafael Correa, President of
process was created. These summits, which met in the years
Ecuador, who holds the rotating presidency of the CELAC.
between the EU-Rio Group ministerial meetings, brought
Most of the 61 Heads of State and Government of the EU
together the highest-ranking EU officials and the Heads of
and LAC attended the summit. In addition to Tusk, Jean-
State and Government of the LAC region. They introduced
Claude Juncker, President of the European Commission,
additional topics to the dialogue, including climate change,
Federica Mogherini, the High Representative of the Union
economic and financial issues, research and innovation
for Foreign Affairs and Security Policy, and Martin Schulz,
developments, and energy.
President of the European Parliament, also represented the
European Union.
In 2010, the Community of Latin American and Caribbean
States (CELAC) was launched as a new mechanism for
The two-day summit concluded with a commitment by both
sides to set a five-year agenda that would focus on reducing
LAC regional political dialogue, replacing the Rio Group
and incorporating 33 countries of the LAC. Significantly,
poverty; addressing climate change; and promoting
the CELAC does not include the United States or Canada,
education, science, and technology. The leaders also
both of which interact with the nations of the LAC in the
discussed issues such as relations with Cuba, the peace
process in Colombia—during which the EU announced the
Organization of American States. CELAC replaced the Rio
creation of a fund to support post-conflict initiatives—and
Group and the EU-LAC Summit process as the new
how to address the political instability in Venezuela.
framework for EU-LAC dialogue. The first EU-CELAC
Summit was held in 2013 in Santiago, Chile.
Although the EU-CELAC summits represent a highly
visible acknowledgement of the relationship between the
In addition to the CELAC, the EU maintains separate
EU and the LAC region, it is only one example of EU-
regional dialogues with the countries of Mercosur
CELAC engagement. In the first half of 2015, High
(Argentina, Brazil, Paraguay, Uruguay, and Venezuela); the
Representative Mogherini visited the LAC region on
Andean Community (Bolivia, Ecuador, Colombia, and
several occasions: attending the CELAC summit in January
Peru); Central America; the non-EU-linked Caribbean; and
in Costa Rica, visiting Cuba, and attending the Summit of
Mexico.
the Americas. Additional dialogues between the EU and
CELAC region take place in the form of the EU-LAC Trade

Union conference, the EU-CELAC organized civil society
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The European Union and Latin America
forum, CELAC-EU youth days, the EU-CELAC academic
Going Forward
summit, and the EU-CELAC Business summit that was also
held in June. The EU-LAC Foundation was also created in
Although there has been a long historical interest and
2010 to promote a nongovernmental economic and socio-
relationship between Latin America, the Caribbean, and
cultural partnership between the two regions that would
parts of Europe—driven mainly by Spain and Portugal but
promote mutual understanding and common values between
also the United Kingdom, the Netherlands, and France—
the EU and LAC. Headquartered in Hamburg, Germany,
relations between the EU and Latin America are a fairly
the foundation’s current president is Benita Ferrero-
recent development. Launched in 1999, the political
Waldner of Austria, and the Executive Director is Jorge
dialogue between the EU and the LAC region has been
Luis Carrillo of Peru.
referred to, more regularly perhaps by the EU, as a strategic
partnership. Indeed, the relationship has resulted in a high-
Trade and Development Dimension
level dialogue on a broad range of issues of mutual interest.
It has also resulted in a number of sector-specific initiatives,
The EU is one of the top three trading partners of the
negotiations on association agreements, and increased trade.
CELAC and one of the largest providers of development
Nevertheless, some observers might note that mention of
assistance to the LAC region. In addition to the overall
the EU in conversations between Latin Americans and their
volume of trade between the EU and the LAC region, the
U.S. counterparts rarely takes place. In fact, Latin American
EU also relies on modest levels of oil and liquefied natural
analysts may rarely see the EU mentioned even in Latin
gas imports from the LAC region.
America itself. This observation, even if only half true,
The EU is economically linked to the LAC region through a
points to a serious potential flaw in the EU’s efforts to
series of Association Agreements (Chile), Free Trade
maintain a strong presence and influence in the LAC
Agreements (FTA) (Colombia, Peru, Mexico) and an
region, despite the many high-level visits.
Economic Partnership (Caribbean). Negotiations with
This point has also been noted by a few observers of EU-
Ecuador and Cuba continue, as do the negotiations for an
LAC relations. In addition to the fact that the United States
FTA with the Mercosur countries, which represent the
remains the major political, economic, and trade influence
fourth-largest non-EU economy in the world. At the 2015
in the LAC region, the inability of the EU to complete its
EU-CELAC summit, both the EU and the Mercosur leaders
trade agenda in parts of the region, and now the emergence
pledged to intensify their negotiations in an effort to
of China as a major competitor of the EU in the LAC, has
conclude a new FTA.
been a cause for concern in Brussels. China, with a huge
The EU’s development assistance initiatives for Latin
market for the commodities and resources Latin America
America are designed to address issues such as the
can export, and billions of dollars to invest (a proposed
reduction of poverty, sustainable growth, rule of law and
€250 billion), clearly has become a challenge to the EU’s
security, among others, and have received an allocation of
position in Latin America.
approximately €925 million for the 2014-2020 time frame.
In a “Briefing” recently prepared by the European
The European Investment Bank has also allocated
Parliament Research Service, this point was noted. The
€2.3billion for Latin America for the period 2014-20120 to
report observed that despite some positive developments in
support EU initiatives in the development of social and
EU-LAC relations, the lingering impact of the global
economic infrastructure, climate change mitigation, and
economic crisis, the emergence of China in the LAC space,
private sector development.
the attractiveness of the dynamic Asia-Pacific region, and
even EU member states more interested in events along
Parliamentary Dimension
Europe’s eastern and southern borders, present major
challenges ahead for EU-LAC relations.
The EU’s relationship with Latin America also includes an
important parliamentary dimension. In 2006, the Euro-Latin
For some in the EU, the 2015 EU-CELAC Summit could
American Parliamentary Assembly (EuroLat) was
not have come at a better time. Although Europe’s attention
established. EuroLat consists of 150 members, 75 from the
has recently been focused on the Greek financial crisis and
European Parliament and 75 from various Latin American
the political instability in Ukraine, the summit offered an
groups, including the Andean, Central American, and
opportunity, in a highly visible way, for the EU to reaffirm
Mercosur parliaments. Parliamentarians from Mexico and
relations with the leadership of the LAC states, restate the
Chile are also included. Two co-presidents, currently
EU’s interest in maintaining a presence in the LAC, despite
Ramon Jauregu Atondo (Spain) and Roberto Requiao
the rise of China, and re-energize the EU’s long-range
(Brazil), lead the assembly. Fourteen vice presidents (seven
policy goals and commitments in Latin America.
from each region) also make up the Executive Bureau.
There are four standing committees that consider issues of
Vincent L. Morelli, vmorelli@crs.loc.gov, 7-8051
mutual interest to the two regions and help develop

recommendations and resolutions that could be submitted to
IF10242
the various ministerial groups for action as well as to the
EU-CELAC summit.
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