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China, the EU and Latin America : current issues and future cooperation
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92 China theEUandLatinAmerica:CurrentIssuesandFutureCooperation InterregionalForeignPolicyDoctrine regiontoregionrelations intermsofwhichthe negotiationofagreementswithstrategicsubregionalblocs MERCOSUR CAN SICAandsoon isgivenpreference.Anumberofvoicesarestartingtodefendthe optionofbilateralnegotiationwithselectedstrategiccountries. AmongtheEUinstitutionstherearemultipledissentingplayers.For instance theEuropeanParliamentsupportedthecessationofnegotiationswith MERCOSUR settingitapartfromtheDohaRound whiletheDirectorate General DG onTradedefendedDohamultilateralnegotiationsasapriority. DGAgriculturesupportedthemaintenanceoftheCommonAgriculturalPolicy CAP without modifications whilethe GD Relex External Relations proposedthestrengtheningofcooperationpillarsandpoliticaldialogue.There arealsoimportantdifferencesbetweenthememberstates Cienfuegos2008 ThefourMERCOSURmemberstatesarenothomogeneouseither making bloctoblocnegotiationsdifficult sincelegitimateinterestsdonotnecessarily coincide.Thishappens amongotherreasons becauseinSouthSouthagreementsthe costsoftradediversiontendtofocusonthelessdevelopedcountries inrelationtothe mostdevelopedpartner ), whichsufferdeindustrialisationasaconsequenceof openingtheirmarketstomanufacturedproductsfrommoredevelopedcommercial partners.Thosepartnershavearelativelyhighercapitallabourendowment. Lessdevelopedcountriestendtoexperiencetradediversiontowardstheimports ofitslargerpartnerandbecomelesscompetitiveintheseproducts Venables 2003 2005 .Inthissense thesecountriessufferatwofoldcost:thelossof theirlimited manufacturingsectorsandtradediversion.Inpart thisis what MoncarzandVaillant 2006 showafteranalysinginterregionaltradepatterns. Accordingtothisanalysis incentivestothesmallerpartnersmayoperateinaNorth Southagreement whichwouldhelptoreducethetradediversioncostswithinthebloc butitwouldreducepartoftheimplicitprotectionforsomeofthemoreindustrialised regionalproductswhichbenefitfromtheprotectionoftheagreement. 4.犜犺犲犈犿犲狉犵犲狀犮犲狅犳犆犺犻狀犪犪狊犪犌犾狅犫犪犾犘犾犪狔犲狉犪狀犱犐狋狊犜狉犪犱犲狑犻狋犺犕犈犚犆犗犛犝犚 Atthispointinthetwentyfirstcentury therecanbenodoubtaboutthe globalriseoftheChineseeconomy intermsofbothproductionandtrade FDI innovationandparticipationinglobalfinancialmarkets. MERCOSURisincreasinglybeingaffectedbyChinasincreasingeconomic influence.Whilein1990MERCOSURexportedtoChinaabout1.5percentof itstotalexports by2007theChinesemarketcapturedaround11.2percentof totalexports.Likewise MERCOSURimportsfrom Chinarosefrom 0.8per centin1990to15percentin2007.However theeffectofChinabeingthe