Latin America

The region of Latin America encompasses 58 sovereign states in South and Central America. Approx. 600 million people live in this region, which by now accounts for a quarter of the world’s GDP. Relations with the European Community can be traced back to the 60’s and are particularly close due to a common historical, cultural and linguistic heritage. Europe is the biggest provider of development aid in the region, the second largest investor and the number two trading partner.
As a consequence of regionalization in Latin America, three regional agreements were established partly modelled on the EU. Mercosur was created in 1991 and includes Argentina, Brazil, Paraguay, Uruguay and Venezuela as a recent addition. In 1995, the EU and Mercosur signed a Framework Cooperation Agreement, while negotiations for an Association Agreement are still ongoing. The Andean Community, founded in 1969, consists of Bolivia, Ecuador, Columbia and Peru. Since 1996, a political dialogue with the EU has been in place and has been formally institutionalized in 2003.
Both of the above mentioned organizations, as well as three more South American states, plan to unite under the Union of South American Nations, which was agreed on 8 December 2004. Planned are an economic union, a common currency, citizenship and passport, and a supranational parliament.
Furthermore, the European Union has taken steps to strenghten its involvement i in Central America and the Caribbean. In 1994, the San José political dialogue provided the basis for regular contact, placing particular emphasis on resolving conflicts in the region. Moreover, the EU’s relations with Chile and Mexico are particularly close, and in the case of Mexico includes an ambitious free trade agreement signed with the EU in 2000. EU-LAC summits take place every two years.