EU Trade Diplomacy Towards Latin America

"In the current geo-economic situation, Latin American countries are ideal candidates for increased economic cooperation. The EU should take advantage of the existing window of opportunity and focus its partnership instruments, particularly its external infrastructure programmes, more strongly on the region," says cep economist Eleonora Poli, who wrote the study together with André Wolf (cep) and Emily Bertollini (LUISS). The EU-Mercosur agreement and other bilateral trade agreements give the EU leverage to strengthen its trade relations with Latin American countries. These agreements open the way to privileged access to markets and strategic resources essential for Europe's energy transition.

The region offers the EU direct access to important natural resources such as critical minerals and renewable energy sources. These are crucial for reducing Europe's external dependency and securing its energy transition. "In the medium term, the EU should give its Latin American partners room to extend their industrial value added, for example through increased cooperation in research and the development of common industrial standards," adds cep economist André Wolf.

The EU should focus on long-term partnerships with Latin American countries. This includes investment in infrastructure, the development of joint industrial value chains and cooperation on industrial standards and technological innovation. These initiatives should form the basis of strategic alliances that combine increased trade with joint defence mechanisms against global economic risks.