Europe Pledges Stronger Ties With Latin America

At a summit between the European Union and Latin American nations in Brussels on June 10-11, European leaders pledged stronger economic ties with their Latin American counterparts. The leaders discussed deepening ties with new trade deals and visa-free travel.

The EU already has strong economic ties with Latin America: It has trade agreements with 26 Latin American and Caribbean nations, making it the bloc with the most trade agreements with the region. China’s growing influence in Latin America, however, appears to be the impetus for stronger cooperation.

“We have seen that China has built up very intensive trade relations,” said German Chancellor Angela Merkel. “Europe and Latin America should also increase their trade.”

Six months ago, China offered to invest $250 billion in Latin America. But due to the eurozone crisis, Europe cannot afford to invest such large amounts. It will instead use its power as the world’s largest trade bloc to reassert itself in Latin America.

As our free booklet He Was Right says, “At present, the lack of cohesion among European nations prevents Germany and the EU from doing much to reverse China’s deepening inroads into Latin America. But Asia’s drive into the Latin region will actually act as a catalyst for EU unity.” For more information, read “Europe’s Inroads Into Latin America.”