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China, the EU and Latin America : current issues and future cooperation
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20 China theEUandLatinAmerica:CurrentIssuesandFutureCooperation whopaysfordamagesduetononimplementationofthejudgmentsofthe MERCOSUR TribunalPermanentede Revision.A new Justice Tribunalwas agreedpolitically buttofunctionit would need changesin some national constitutions. Butsomelessonshavebeenlearned.MERCOSURhasseentheweaknessofitsad hocsystemsfortradedisputesettlement butthenewTradePolicyReviewMechanism TPRM ), createdin2004 hasyettoproveitsefficiency.Again inflexiblepositions onallegedriskstonationalsovereigntyblockprogress.Inaddition theEUideaof compensationandsolidarityfundshasmadesomegroundinLatin America for example theStructuralConvergenceFundMERCOSUR FOCEM butitstillhas insufficientresources USD100million 4.犆狌狉狉犲狀狋犈犝犕犈犚犆犗犛犝犚犆狅狅狆犲狉犪狋犻狅狀 CooperationwithMERCOSURusingfundsfromthebudgetoftheEuropean Community managedbytheCommission startedin1991 notablyinsupportof itsnewlyestablishedstructures.The20022006RegionalStrategyPaper RSP provided inadditiontobilateralCountryStrategyPapersandfunding EUR48 millionto supportimplementation ofthe MERCOSUR internal market institutionalisationandcivilsociety.TheEUcontributed certainlyalsoinits owninterest withtechnicalassistanceonthesettingofregionalstandardsand procedures.Fortheperiod200713 withintheoverall regionalindicative programme fortheMERCOSURarea EUR556million 21percentofthe globalallocationsforLatinAmerica ), EUR50millionareearmarkedtofinance MERCOSURintegrationprojectsinthreepriorityareas: strengtheninginstitutions 10percent ), supportingintegration and preparingfortheimplementation ofan AssociationAgreement 70percent and fosteringtheparticipationofcivilsocietyintheintegrationprocess including disseminatinginformationandincreasingitsvisibility 20percent .Thismakesthe EUbyfarthelargestprovideroffinancialassistancefortheintegrationofMERCOSUR EuropeanCommission2007 Politically theEUcooperationprogrammewasdesignedontheassumption thatMERCOSUR wouldcontinuetostrengthenitsinstitutionsanddeepenits integrationatasustained pace.However theprogrammeisexperiencing difficultieswithregardtopolitical technicalandadministrativeimplementation. ThereisnoMERCOSURinstitutionwhichcouldbethepartnerorbeneficiaryof theProgramme.Each projectis managedasanad hocarrangement witha nationalagency whichthenactsasthecoordinatorwithin MERCOSUR.This