EU Trade policy in Latin America
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1 EU Trade policy in Latin America Thomas LE VAILLANT European Commission DG TRADE - Relations with Latin America
2 Topics 1.Trade and investment flows 2. Regionalism in Latin America 3. State of play 4. Architecture of FTAs
3 Share of world trade in goods World market shares (%) Share of world trade in goods, % 18% 16% 14% 12% 10% 8% 6% 4% EU USA China Japan Latin America 2% 0% Intra-LA trade included Source: WTO, EUROSTAT
4 Share of trade in Latin America Share of trade in Latin America 60% 50% 40% 30% EU28 USA Japan China 20% Latin America 10% 0% * Intra Latin America trade included ** Latin American Countries: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Peru, Paraguay, El Salvador, Uruguay, Venezuela. Source: IMF DoTS
5 EU export patterns to the World to Latin America Machinery, transport 41.8% Machinery, transport 48.2% Otros 12.7% Chemicals 16.3% Others 7.4% (food 2%) Mineral fuels 5.2% Mineral fuels 6.4% Manufactures misc. 10.1% Manufactures by material 12.7% Manufacture misc. 7.4% Manufactures by material 12.1% Chemicals 19.7% Source: EUROSTAT
6 EU import patterns from the World from Latin America Others 14.8% Manufactures by material 10.5% Others 21% Manufactures misc. 13.5% Machinery, transport 29.5% Fuels, minerals 25.4% Manufactures (all) 11% Fuel, minerals 12.6% Machinery, transport 14.5% Agri food 25.6% Raw materials, inedible (except fuel.) 21.5% Source: EUROSTAT
7 Latin America - EU Source: EUROSTAT
8 Trade openness #51 * ETI looks at four dimensions: 6 CA: 57 to 86 #81 #136 #85 #54 #112 #110 ü Market access ü Border administration ü Transport and communications infrastructure ü Business environment #21 #107 #94 #66 score > 4.0 score <= 4.0
9 Topics 1. Trade and investment flows 2. Regionalism in Latin America 3. State of play 4. Architecture of FTAs
10 Latin American Regional Integration
11
12 Mexico and Chile
13 Central American integration SICA and SIECA "The EU will promote Central American integration"
14
15 Pacific Alliance
16 Topics 1. Trade and investment flows 2. Regionalism in Latin America 3. State of play 4. Architecture of FTAs
17 EU Trade Policy in Latin America Overview Trade agreements Trade agreements currently in force: Mexico AA 2000 Chile AA 2002 Caribbean EPA 2009 Peru & Colombia Trade Ag Ecuador (same Ag.) 2017 Central America AA 2013 Trade negotiations on-going: Mercosur AA negotiations (Argentina, Brasil, Paraguay, Uruguay) Mexico Chile Modernisation Modernisation No trade negotiations: Cuba Bolivia Venezuela
18 but different regional approach: Central America 6 countries: Costa Rica, Guatemala, Honduras, Nicaragua, Panama, El Salvador. 2010: negotiations on a three pillar regionto-region Association Agreement completed, entry into force Regional approach A common text and a single schedule of commitments in goods. Strong regional integration dimension. Colombia, Peru, Ecuador 2008: negotiations of three pillar region-toregion Association Agreement with Andean community (CAN, 4 countries) fail. 2010: EU Colombia / Peru Trade Agreement concluded, entry into force 2013 EU and Ecuador conclude negotiations in 2014 and Ecuador accedes on Multi-party approach Common text but separate schedules of commitments for trade in goods. Accession clause included regional component is preserved.
19 and bilateral: Mexico 2016: Start of the modernization of the existing agreement (2000) in parallel to TTIP negotiations 2018: Agreement in principles Chile 2002: Association Agreement. 2017: Modernisation of the Agreement. No regional approach North American context (Mexico). Dialogue with Pacific Alliance.
20 Topics 1. Trade and investment flows 2. Regionalism in Latin America 3. State of play 4. Architecture of FTAs
21 Objectives Enforce, expand and modernize bilateral Agreements: Mexico and Chile Colombia and Peru (Ecuador) Mercosur CARIFORUM Central America Trade in goods and Services: call against protectionism Enforcement of commitments Investment and Services: importance of legal security, stable framework
22 The Trade provisions aimed at establishing a business friendly environment to stimulate the economic links by: Improving the access to the markets Facilitating Trade relations by removing trade barriers Establishing a level playing field to avoid unlawful competition Supporting regional integration process (when regional) Ensuring that the trade flow supports a sustainable development of the partners Establishing a dispute settlement mechanism
23 Trade in goods Market Access Agriculture Industrial and fish product Trade Remedies Trade Facilitation TBT SPS Capital Movement Regional Integration Horizontal Government procurement IPR Trade in Services Cross border supply Temporary presence of natural persons Regulatory framework Digital trade Investment Issues Competition Dispute Settlement Trade and Sustainable Development
24 Thank you!
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