The world is going through a period of great change, in which international balances have been disrupted and new challenges and geopolitical tensions have arisen. China is the new big global player: it has spread its tentacles through investments and is the protagonist of a trade war with the United States that is wreaking havoc everywhere. Europe, on the other hand, has lost its importance. But the board is moving. “I am convinced that we are in a very important, positive moment of revitalization of relations between Latin America and Europe,” said Andrés Allamand, Ibero-American Secretary General (Segib), this Tuesday. This renewed approach offers countless business, economic and strategic opportunities. “Latin America does not want to be caught up in the fight between the United States and China,” concluded the former Chilean minister during a lunch organized in Madrid by the Business Council Alliance for Ibero-America (Ceapi), with which a third entered The actor would open up “enormous possibilities”.
Although the European Union remains the Latin American region’s first investor and third trading partner, it has been displaced in recent years by Beijing, which has become very strong on the continent. First: promoting commercial activities; and later through huge capital injections with a long-term focus that have made the Asian country the leading investor in the region. “Europe needs to be more actively present. “Latin America needs Europe to compete with China,” stressed Allamand during the event, which took place at the offices of the law firm Gómez-Acebo & Pombo, following the board meeting of the business organization.
The Spanish EU Council Presidency was a turning point in the easing of relations between the two sides of the Atlantic, said the lawyer. In this sense, Allamand referred to the recent EU-CELAC (European Union-Community of Latin American and Caribbean States) summit, which took place in Brussels and provided a diplomatic boost after years of disagreement. “I had two sentences left. The first is from [la presidenta de la Comisión Europea] Ursula von der Leyen, who said: “Europe strives to be the preferred partner of Latin America and the Caribbean.” President [de Brasil, Luiz Inácio] Lula said: “Given my many years of experience in international affairs, I have never seen such great European interest in Latin America as now,” noted Allamand.
Pending tasks
The EU-Mercosur trade pact, which, according to the Ibero-American Secretary General, would generate “particularly positive flows for both sides,” has nevertheless been negotiated unsuccessfully for 20 years. “Frankly, I think it needs a political push,” Allamand said. In his opinion, we must benefit from a reshaping international order, taking advantage of the large areas of convergence between Europe and Latin America: “There is no doubt that they are the two most similar and compatible regions that exist.” What we in the world are precisely Europe and Latin America.” The relationship could be a win-win for both sides of the Atlantic: the old continent would expand its international influence and many Latin American economies would gain an international projection that they currently do not have, argued the Attorney.
“Latin America needs finance, technology, investment and knowledge that Europe can provide, but not to usher in a new extractivist phase,” said the former Chilean minister. “It’s not just about exporting natural wealth, but we have to add value” and promote the growth of a region that is developing less quickly than it needs to.
In this sense, he recognized that Latin America also faces tasks. The main problems to be addressed include political instability, which is leading to a deterioration in the continent’s ability to govern, and the lack of trust in institutions, which entails high costs of attracting investment. Finally, Allamand added that the region’s economies need to improve their entrepreneurial and business environment, emphasizing legal certainty: “If there are no judicial, arbitration or other mechanisms for the rapid resolution of conflicts, it becomes an obstacle to investments and Company.”
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