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China, the EU and Latin America : current issues and future cooperation
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72 China theEUandLatinAmerica:CurrentIssuesandFutureCooperation thingswouldgivetheregionastrongerpositiontocompeteinworldmarkets. TheLACregionhasenormouspotentialintermsofenvironmentaland energyresources.Itisoneoftherichestbiologicalzonesontheplanet hosting 40percentoftheworldsanimalandplantspecies CEPAL2010:120 ), fresh waterresources enormousfertilelandsandfossilfuelreserves. Withregardtorenewableenergies LACisparticipatinginthesearchfor geothermal water solarand windpower amongotherthings.Ithaslarge expansesofsoilslyingfallow andlow productivityperhectare increasing developmentofmonoculturesforbiomass sugarcane soy palmtree andincipient developmentofsecondgenerationbiofuels notreadyforcommercialisationforadecade orso 2.1 RenewableversusNonrenewableEnergy Intheirreversibleprocessofbuildingupaglobalbiofuelsmarket LAC countriesareparticipatinginvariousways althoughBrazilistheprincipalactor inthissector.However biofuelsarenotseenasthesolutiontoenergyneedsin LAC.Theyarenotpromotedbythesamekindofenthusiasticpropagandaasin theEuropeanUnion beingconsideredacomplementaryenergysupply together withotheralternatives suchasbiogas solar wind hydroelectricandgeothermal power andeven despitethecontroversy nuclearpower.Furthermore biofuels productionisthesubjectofheateddebate asitisaproventhreattofoodsecurityand canleadtohungerinvulnerablepopulations. Intermsofnonrenewableenergy someLatin Americaneconomiesare basedongasandoilproduction especiallyVenezuelaandBolivia.Nevertheless itisestimatedthatin2010oilproductionwillreachitspeakandthenstartto decline Sohr2009:2223 .VenezuelasreservesexceedthoseofSaudiArabia however andithasthelargestnaturalgasdepositsinSouth America.Oil productionisalreadydecliningin mostproducercountriesin LAC dueto inefficiencyandalackofexternalinvestment foreigndirectinvestmentfellby 41percentinBoliviain2007andby34percentinEcuador WWC FLACSO 2008:23 .Thisshowsthatpoliticalandsocialstabilityisaconditionthatmost ofLACcountriesstillcannotguarantee. Despitetheinternalandexternalproblems thisdeficitcouldbeovercomeby meansoftheunmeasuredcapacityoflightoilfieldslocatedoffshore mainlyoffBrazil CariocaandTupireserves .LatinAmericastillhasalotofsurfaceoiltoexploit and althoughthishasbeendepleted itcouldevenshifttothenextstageof type2 petroleum whichwillrequirelargerinvestmentsinordertobecomeoperationalinthe nearfuture.Clearly the oilissue isnotoveranddonewithinLAC.