The European Commission has proposed starting negotiations next year with Central American and Andean nations to form agreements on closer political, social and trade ties. These agreements would form the foundation of a free-trade area to include the European Union, Central American countries, and the Andean trade grouping, which consists of Bolivia, Colombia, Ecuador and Peru, with Chile as an associate member.

“I believe that these agreements will consolidate existing long-standing links with both regions,” said EU External Relations Commissioner Benita Ferrero-Waldner, “and will provide the right framework to deepen and move forward our relations to our mutual benefit.”

“These agreements will establish the foundations for deep trade and economic relations between the EU and the Andean and Central American countries,” stated EU Trade Commissioner Peter Mandelson.

A deal on these association agreements has been a goal for some time now. The objective was confirmed at EU-Latin American summits in Madrid, Guadalajara and Vienna over the past four years, demonstrating the two regions’ ongoing desire to make a deal.

However, like all trade negotiations of this sort, obstacles do exist. The association agreements must resolve issues such as criticism over EU agricultural subsidies and EU demands for greater access to Latin American markets.

Most recently, Ecuador referred the EU to the World Trade Organization because of its import restrictions on bananas. One day after the Commission’s proposal on December 6, Mandelson threatened to stop negotiations unless Ecuador withdrew its referral (Latin America News Digest, December 8).

Similar obstacles have hindered the formation of a free-trade area between the EU and the South American trade bloc Mercosur, a project that has been underway for several years.

This latest round of negotiations the EU seeks to launch with Central American and Andean countries, however, demonstrates Europe’s determination to push forward with building closer ties with Latin America.

The Trumpet has long declared that these two regions will strengthen their ties. For information on where this is leading, read “The Latin Link Revives.”