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China, the EU and Latin America : current issues and future cooperation
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24 China theEUandLatinAmerica:CurrentIssuesandFutureCooperation ofitsownbeginningsandlaterenlargementswhat asymmetry means andit probablyknowsbetterthananyotherorganisationhowtodealwithit.Living standardsattheleveloftheregionsintheEUdifferbyaratioof1to30.EU solidarityfundscushionsomeoftheunwantedeffectsofeconomicintegration. The EULAC Summit 2008 in Lima established special programme EUrosociAL withinitialfundingofEUR30million. Adequateandfunctioningphysical 犻狀犳狉犪狊狋狉狌犮狋狌狉犲 isthekeytodevelopment itreduces amongotherthings thecostoftransactionsandofthetransportof goodsandworkers.TherewasalwaysinsufficientLatinAmericaninvestmentin thisfield incontrasttothesituationinAsia.Traditionally LatinAmerican transportinfrastructurewasdesignedforextraregionaltrade basically with Europe butmeanwhilehasbeenextendedtoencompassresourcesneededby China.Studiesshow thattransportcosts together withthebureaucratic burden arefarhigherthanthecustomsdutiesappliedineachcasestudied.The InitiativefortheIntegrationofthe RegionalInfrastructureofSouth America IIRSA shouldnotablyimprovetheproductivityandcompetitivenessoftheSouth Americancountriesintheareasofenergy transportandtelecommunications.Butso farithasgivenprioritytoroadprojects whichaccountfor74percentofplanned investmentsupuntil2010.Butroadsarenotthebestwayeitherofmovinglowvalue nonperishablegoodsorofprotectingtheenvironment.Todate IIRSAhasdonelittle bywayofimplementation ofthe348potentialprojectswhichhavebeenidentified 31 havebeenselectedsofar butlessthan10percentoftheslatedinvestmenthasbeen made.PartoftheproblemisLatinAmericastraditionallowsavingsrateandtax revenues whichputsitatalongtermdisadvantageinrelationtoEastAsia.Projects alsosufferfromrapidlychangingpoliticalrelationsor asinthecaseofenergy for example gasoductodelsur ), fromnewdiscoverieswhichmakesuchprojectsless vitalnationally. InternationalexpertsandorganisationshavestronglyurgedLatinAmerican authorities to remedy the situation. As in the history of the EU interconnectivityisagoodmotivebutnotasufficientconditionforintegration. Theenergysectorcouldbeastrongpullfactor kickstartingintegrationbasedon functional logic astheEuropeanCommunityforCoalandSteeldidfortheEU Heidrich2007 .Butsofar inSouthAmerica energyisaninterconnection issuewhichdoesnotfosterintegration Honty2006 5.3 Trade Bilateralagreementsbetween Latin American countriesand nonLatin Americanpartnersaregrowing risingfrom20in1990to86in2000 and159in