中国、欧盟与拉美: 当前议题与未来合作 犆犺犻狀犪 , 狋犺犲犈犝犪狀犱犔犪狋犻狀犃犿犲狉犻犮犪牶 犆狌狉狉犲狀狋犐狊狊狌犲狊犪狀犱犉狌狋狌狉犲犆狅狅狆犲狉犪狋犻狅狀 [ 德 ] 克 敏 牛海彬 主编 上海 图书在版编目 ( 犆犐犘 ) 数据 中国 、 欧盟与拉美 : 当前议题与未来合作 /( 德 ) 克敏 , 牛海彬主编 . — 上海 : 上海人民出版社 , 2011 ISBN978 7 208 09811 4 Ⅰ . ① 中 … Ⅱ . ① 克 … ② 牛 … Ⅲ . ① 中外关系 研 究 欧洲国家联盟 、 拉丁美洲 Ⅳ . ① D822.3 中国版本图书馆 CIP 数据核字 ( 2011 ) 第 020999 号 责任编辑 韩梅梅 封面装帧 甘晓培 中国 、 欧盟与拉美 : 当前议题与未来合作 [ 德 ] 克 敏 主编 牛海彬 世纪出版集团 上海 出版 ( 200001 上海福建中路 193 号 www.ewen.cc ) 世纪出版集团发行中心发行 上海商务联西印刷有限公司印刷 开本 720×1000 1 / 16 印张 28.25 插页 5 字数 495 , 000 2011 年 5 月第 1 版 2011 年 5 月第 1 次印刷 ISBN978 7 208 09811 4 / D · 1840 定价 65.00 元 1 犉狅狉犲狑狅狉犱 TheShanghaiInstitutesforInternationalStudies ( SIIS ) andtheFriedrich EbertStiftungs ( FES ) OfficeforInternationalCooperationinShanghaihave beencooperationpartnerssince1985.Duringthepast25yearsthecollaboration hasprogressivelydeepened , especiallyinthefieldsofInternationalRelationsand GlobalGovernance , as wellas Climateand Economic Policies.Numerous conferencesandworkshopsorganisedbySIISandFEShaveprovidedaplatform forChineseandinternationalexpertstoexchangeviewsandknowledgeonnew developmentsinthesefieldsofstudy. On27and28 April2009 , SIISand FESjointlyhostedaninternational seminaron “ China , theEUandLatin America:CurrentIssuesandFuture Cooperation ” inShanghai.Howthetrilateralcooperationmightbeenhancedand globalchallengesbedealtwithwasanalysedanddiscussedby32participants fromtheUN , China , theEUandLatinAmerica.Itwasthe7thinternational conferenceonGlobalGovernancecoorganisedbythetwocooperationpartners. ThepreviousseminarsanalysedimportantglobalissuesrelatedtoAsia , Europe andAfrica.WiththerapiddevelopmentofSinoLatinAmericanrelationsover thepastdecade , thedeepeningparticipationofLatinAmericainglobalaffairs andthereadjustmentofEULatinAmericanrelations , theconferencefocusedon thetrilateralrelationshipbetweenChina , theEUandLatinAmerica , andcame upwithsomerelevantfutureorientedpolicythinking. Withthispublication we wouldliketosharetheprofoundanalyses , considerationsandfindingsrelatedtothetrilateralcooperationwithabroader 2 "#$%&'()*+,-.'/012 audience.Weareconfidentthattheconferenceanditspublicationwillcontribute tothecommondevelopmentofChina , theEUandLatinAmerica. Shanghai , December2010 ProfessorJiemianYang , PresidentofSIIS Dr.RudolfTraubMerz , DirectoroftheFESOfficeinShanghai 1 犆狅狀狋犲狀狋狊 犉狅狉犲狑狅狉犱 1 犐狀狋狉狅犱狌犮狋犻狅狀牶犃狊狊犲狊狊犻狀犵狋犺犲犈犿犲狉犵犻狀犵犜狉犻犾犪狋犲狉犪犾犚犲犾犪狋犻狅狀狊 犫犲狋狑犲犲狀犆犺犻狀犪 , 狋犺犲犈犝犪狀犱犔犪狋犻狀犃犿犲狉犻犮犪 NiuHaibinandBirteKlemm 193 犘犪狉狋犐 犆狅犿狆犪狉犻狊狅狀狅犳狋犺犲犈犝犪狀犱犆犺犻狀犪狊犚犲犾犪狋犻狅狀狊犺犻狆 狑犻狋犺犔犪狋犻狀犃犿犲狉犻犮犪 犆犺犪狆狋犲狉1 犃犉狅狉犿犪狋犻狀犛犲犪狉犮犺狅犳犛狌犫狊狋犪狀犮犲 — 犃狀犗狏犲狉狏犻犲狑 狅犳犚犲犾犪狋犻狅狀狊犫犲狋狑犲犲狀狋犺犲犈犝犪狀犱犔犪狋犻狀犃犿犲狉犻犮犪 犻狀犪犈狌狉狅狆犲犪狀犘犲狉狊狆犲犮狋犻狏犲 GüntherMaihold 203 犆犺犪狆狋犲狉2 犆犺犪犾犾犲狀犵犲狊狋狅犈犝犘狅犾犻犮犻犲狊狅狀犇犲狏犲犾狅狆犿犲狀狋 犆狅狅狆犲狉犪狋犻狅狀狑犻狋犺犔犪狋犻狀犃犿犲狉犻犮犪 JoséAntonioSanahuja 220 犆犺犪狆狋犲狉3 犃犖犲狑犈狉犪犳狅狉犆犺犻狀犪犔犪狋犻狀犃犿犲狉犻犮犪狀犚犲犾犪狋犻狅狀狊牶 犕狅狉犲犗狆狆狅狉狋狌狀犻狋犻犲狊狋犺犪狀犆犺犪犾犾犲狀犵犲狊 NiuHaibin 240 犆犺犪狆狋犲狉4 犜犺犲犈犝 , 犔犪狋犻狀犃犿犲狉犻犮犪犪狀犱犆犺犻狀犪牶犌犲狅犿犲狋狉犻犮犪犾 犘犪狋狋犲狉狀狊犻狀犆狌狉狉犲狀狋犪狀犱犉狌狋狌狉犲犚犲犾犪狋犻狅狀狊 ErikaRuizSandoval 253 2 犘犪狉狋犐犐 犕犈犚犆犗犛犝犚狊犚犲犾犪狋犻狅狀狊犺犻狆狑犻狋犺狋犺犲犈犝犪狀犱犆犺犻狀犪 犆犺犪狆狋犲狉5 犈犿狆犻狉犻犮犪犾犃狀犪犾狔狊犻狊牶犜狉犪犱犲犫犲狋狑犲犲狀犕犈犚犆犗犛犝犚 犪狀犱犆犺犻狀犪 / 犈犝 — 犜狉犲狀犱狊犪狀犱犉犻犵狌狉犲狊 WelberBarralandGustavoRibeiro 267 犆犺犪狆狋犲狉6 犜狉犪犱犻狀犵狑犻狋犺犌犻犪狀狋狊牶犐狊犜狉犪犱犲犘狅犾犻犮狔狑犻狋犺狋犺犲犈犝 犪狀犱犆犺犻狀犪犅犲狀犲犳犻犮犻犪犾狋狅犕犈犚犆犗犛犝犚 ? CarlosCarvalloSpalding 282 犆犺犪狆狋犲狉7 犗狆狆狅狉狋狌狀犻狋犻犲狊犪狀犱犆犺犪犾犾犲狀犵犲狊犉犪犮犻狀犵犆犺犻狀犪犪狀犱 犕犈犚犆犗犛犝犚犻狀狋犺犲犆狅狀狋犲狓狋狅犳狋犺犲犉犻狀犪狀犮犻犪犾犆狉犻狊犻狊 LuGuozheng 301 犆犺犪狆狋犲狉8 犆狌狉狉犲狀狋犪狀犱犉狌狋狌狉犲犆狅狅狆犲狉犪狋犻狅狀狌狀犱犲狉狋犺犲 犈犝犕犈犚犆犗犛犝犚犃犵狉犲犲犿犲狀狋 KarlBuck 315 犘犪狉狋犐犐犐 犈狀犲狉犵狔犛犲犮狌狉犻狋狔犪狀犱犆犾犻犿犪狋犲犆犺犪狀犵犲 犆犺犪狆狋犲狉9 犆犺犻狀犪狊犃狆狆狉狅犪犮犺狋狅犈狀犲狉犵狔犪狀犱犆犾犻犿犪狋犲犆犺犪狀犵犲 YuHongyuan 331 犆犺犪狆狋犲狉10 犗犻犾犆狅狅狆犲狉犪狋犻狅狀犫犲狋狑犲犲狀犆犺犻狀犪犪狀犱犔犪狋犻狀犃犿犲狉犻犮犪 SunHongbo 347 犆犺犪狆狋犲狉11 犜犺犲犚犲犾犪狋犻狅狀狊犺犻狆犫犲狋狑犲犲狀犆犾犻犿犪狋犲犆犺犪狀犵犲犘狅犾犻犮犻犲狊 犪狀犱犈狀犲狉犵狔犛犲犮狌狉犻狋狔 — 犈狌狉狅狆犲犪狀犱犅犲狔狅狀犱 ArnoBehrens 356 犆犺犪狆狋犲狉12 犈狀犲狉犵狔犛犲犮狌狉犻狋狔犪狀犱犆犾犻犿犪狋犲犆犺犪狀犵犲犻狀犚犲犾犪狋犻狅狀狊 犫犲狋狑犲犲狀狋犺犲犈犝 , 犆犺犻狀犪犪狀犱犔犪狋犻狀犃犿犲狉犻犮犪牶犕犪犼狅狉 犆犺犪犾犾犲狀犵犲狊犪狀犱犃狉犲犪狊犳狅狉犐狀狋犲狉狀犪狋犻狅狀犪犾犆狅狅狆犲狉犪狋犻狅狀 MaríaCristinaSilvaParejas 371 犘犪狉狋犐犞 犜狉犻犾犪狋犲狉犪犾犚犲犾犪狋犻狅狀狊犪狀犱犛犮狅狆犲犳狅狉犕狌犾狋犻犾犪狋犲狉犪犾犻狊犿 犆犺犪狆狋犲狉13 犃犖犲狑犔狅狅犽犪狋狋犺犲犜狉犻犪狀犵狌犾犪狋犻狅狀犫犲狋狑犲犲狀狋犺犲犈犝 , 犆犺犻狀犪犪狀犱犔犪狋犻狀犃犿犲狉犻犮犪 JiangShixue 391 犆犺犪狆狋犲狉14 犜狉犻犾犪狋犲狉犪犾犚犲犾犪狋犻狅狀狊犫犲狋狑犲犲狀犆犺犻狀犪 , 狋犺犲犈犝犪狀犱犔犪狋犻狀 犃犿犲狉犻犮犪牶犔犻狋狋犾犲犈狓狆犲狉犻犲狀犮犲 , 犅狌狋犅犻犵犘狅狋犲狀狋犻犪犾 KarlBuck 犆犺犪狆狋犲狉15 犆犺犻狀犪 , 狋犺犲犈犝犪狀犱犔犪狋犻狀犃犿犲狉犻犮犪牶犜狉犻犾犪狋犲狉犪犾 犚犲犾犪狋犻狅狀狊犪狀犱犛犮狅狆犲犳狅狉犕狌犾狋犻犾犪狋犲狉犪犾犻狊犿 MarcelFortunaBiato 犃犫狅狌狋狋犺犲犆狅狀狋狉犻犫狌狋狅狉狊 Contents 3 405 423 436 1 93 犐狀狋狉狅犱狌犮狋犻狅狀牶 犃狊狊犲狊狊犻狀犵狋犺犲犈犿犲狉犵犻狀犵犜狉犻犾犪狋犲狉犪犾犚犲犾犪狋犻狅狀狊犫犲狋狑犲犲狀 犆犺犻狀犪 , 狋犺犲犈犝犪狀犱犔犪狋犻狀犃犿犲狉犻犮犪 !"#$%"&"'%'()"*+,-.,// Asanemergingglobalplayer , Chinaisexpandingitseconomicand diplomatictiesrapidlywiththedevelopingregions , especiallyAfricaandLatin America.EuropeanconcernsabouttheimplicationsofChinasenlargedpresence inAfricaalsoapply withregardtoChinaspresencein Latin America.Latin Americaisbecomingmoreindependentanditsintegrationintheworldeconomy isdeepening.Chinaisenjoyinganincreasingshareoftheexternaleconomic relationsofLatin Americancountries , whilethe EU , althoughstillLatin Americaslargesttradingpartner , isdiminishinginimportanceinthisregard. Againstthisbackground , itisfairtosaythatboththeEUandChinaarethe mainexternalplayerswithregardtoLatinAmericasfuturedevelopment.Thus itisnecessarytoreviewtheperspectivesofbothChinaandtheEUtowardsLatin America. LatinAmericaincludesafairnumberofemergingpowers , suchasBrazil , Mexico , ArgentinaandChile.Theseemergingpowers — plusChina — arebeginning toexercise much moreinfluenceinglobalaffairs.Brazilhostedthesecond summitofBRICcountries ( Brazil , Russia , IndiaandChina ) inApril2010 , and MexicosCancunheldthe UN ClimateChangeConferencein December2010. Brazil , Argentina , Mexico , China , fourEuropeancountriesaswellastheEU aremembersoftheG20 , theworldspremierforumforeconomiccooperation. Theshareofglobalissuesintheirexternalaffairsisgraduallyrising.Insome areasofinternationalcooperation , theEUisplayingastrongroleinaddressing globalchallenges.Inthecontextofpressingglobalchallenges , amongother multilateralagendas , trilateralcoordinationandcooperationbetweenChina , the EUandLatinAmericawillcontributetoglobalpublicgoods. Thechaptersinthisconferencevolumeprovideavarietyofperspectiveson 1 94 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation trilateralrelations.PartIofferscomparativestudiesofthe EU and Chinas foreignpolicytowardsLatin AmericaandthelattersresponsetotheirLatin Americanpolicy.PartII focusesonthetransregionalcooperationbetweenthe SouthernCommon Market ( MERCOSUR ) and China , as wellastheEU , respectively.InPartIII , thedifferentperspectivesofChina , theEUandLatin America with regard toissues of energy security and climate change are analysed.PartIV providessomefutureorientedthinkingontheprospectsof trilateralcooperationanditsinfluenceonmultilateralism.Overall , thisvolumeis aimedatunderstandingthedynamicsoftrilateralcooperationinthecontextofa pressingglobalagendaandincreasinglyclosetiesbetween Chinaand Latin America. 1.犖犲狑犈狓狆犲狉犻犲狀犮犲狊狅犳犛狅狌狋犺犖狅狉狋犺犪狀犱犛狅狌狋犺犛狅狌狋犺犆狅狅狆犲狉犪狋犻狅狀 EnhancingSouthSouthcooperationhasbeenastrategicchoiceforemerging powerssuchasChinaandBraziltoexplorethepotentialofeconomicglobalisationsince theriseofmajordevelopingcountrieshaschangedthelayoutoftheworldeconomy. MostLatin Americancountrieshaveintegratedthemselves wellinthe world economy , especiallytheSouthAmericancountrieswithdiversifiedandbalanced traderelationsworldwide.Chinais , inthisregard , anattractivechoicefor them ; moreover , closertieswithChinahavehelpedthemtosomeextenttodeal withtheworldeconomicrecessionsince2008.Atthesametime , theEUasa traditionalpartnerstillmaintainsstrongandcomprehensivelinkageswithLatin America. Against this background , comparing the SinoLatin American relationshipwiththeEULatinAmericanrelationshipmightbehelpfulforboth ChinaandtheEUintheireffortstolearnhowtobuildupanddeepenthose relationships. 1.1 EULatinAmericanRelationship Accordingto Maihold ( Chapter1 ), the performanceofthe EULatin Americanrelationshipislowerthanitspotentialandthusmuch moreeffort shouldbeputintoit.SomenewEU memberslackofpoliticalwillingnessto engagewithLatinAmerica , thelackofcommonforeignandsecuritypoliciesand theweakeningoftraditionalsharedvaluesallcontributetothecurrentstagnation ofEULatinAmericanrelations.Basedonthisanalysis , Maiholdsuggeststhat bothsidesshouldfocusonconcreteinterestsandpossibilitiesforcooperation , invitemoreactorstoparticipateininterregionalinteractionandencourageSpain toplayaconstructiveleadershiprole.In Chapter2 , Sanahujasystematically examinesthechallengesfacingtheEUspoliciesondevelopmentcooperationwithLatin Introduction:AssessingtheEmergingTrilateralRelationsbetweenChina , theEUandLatinAmerica 1 95 America.Hearguesthatdevelopmentcooperationisakeyelementofbiregional relations , andtheEUshouldnotreduceitsaidtotheregion.HesuggeststhattheEU shouldcooperatewithmiddleincomecountriesinLatinAmericaandprovidegreateraid inspecificareastoconsolidatedevelopmentalachievements. Agreeingwiththeargumentthattheregionssufferfromtheirlackofa singlevoiceinbilateralsummits , RuizarguesinChapter4thatLatinAmericais evenworseoffbecauseitlacksaregionalinstitutionliketheEU.Althoughthe bilateralsummitstakeanormativeandjudgmentalapproach , theirunderpinningin termsofvaluesandinterestsisweakening.LatinAmericawillnotbecometheideal regiontheEUhasexpectedittobeforthetimebeing , andLatinAmericansalso shouldnotthinkofEuropesolelyintermsofitsindividualstates , especiallySpain. 1.2 SinoLatinAmericanRelationship Latin Americaand Chinaareemergingasimportantglobalpartners , reflectedinthefactthattheyareseekingmorediversifiedandbalancedexternal economicrelations.Intraderelations , Chinas booming demandforraw materialshascontributedgreatlytothenewcontinuousandstablegrowthof LatinAmerica.ChinaisalsoincreasingitsFDItotheregioninthesectorsof energy , agricultureandinfrastructure.ItisoftenarguedthatChinaspresencein LatinAmericaisdrivenbyeconomicreasonssinceLatin Americaisahuge potentialmarketanda majorsupplierofcommodities , as wellasenergy. However , othervoices , especiallyfrom the Chinese perspective , emphasise Chinasstrengtheningofsocialandculturalties withtheregion , which was underlinedinthereleaseofChinasPolicyPaperonLatinAmericaandCaribbean inNovember2008. MaiholdarguesinChapter1 , therefore , thatthereareafewchallengesfor theSinoLatinAmericanrelationshipfromtheEUsperspective , including: ( 1 ) Chinaslongtermdemandforrawmaterialswhichreinforcestheroleof LatinAmericaasasupplierofrawmaterialstotheglobaleconomy ; ( 2 ) thecompetitionbetweenChinaandLatinAmericaforexternalinvestments ; ( 3 ) thefactthatmostofthetradevolumewithChinaisconcentratedina fewLatinAmericancountries ; and ( 4 ) theTaiwanissue. AmajorpreoccupationinEuropewithregardtoChinasactivitiesinLatin Americaistheextenttowhichtheregionwillmanagetodiversifyitseconomic andpoliticalagendaandexpandintofieldsotherthanraw materialsexports. ConcerningtheinfluenceofChinasLatinAmericanpolicyontheEU , Sanahuja ( Chapter2 ) pointsoutthatitislimitedbecausetheEU doesnotwantto 1 96 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation competewithChinafortheregionsresourcesandChinadoesnotintendtoexert itspoliticalinfluenceontheregion.NiuHaibin ( Chapter3 ) takesapositiveand optimisticviewoffutureSinoLatinAmericanrelations.HearguesthatSinoLatin Americancooperationhasglobalimplicationsintheareasofclimatechange , food security , energysecurityandtherebuildingoftheinternationaleconomicsystem. Financialandmutualinvestmentcooperationwillmakethebilateralrelationshipmore balancedandsustainable.Bothcanlearnfrom eachotherwithregardtotheir developmentexperiences.AstothethirdpartyfactorintheSinoLatin American relationship , hearguesthatallsidesshouldfollowlogicofglobalisationandwinwin thinkingratherthancompetitionbetweenspheresofinfluence. FromtheperspectiveofLatin Americanscholars , Ruizpointsoutthat ChinaspresenceinLatinAmericaisbothfearedandneeded ( Chapter4 ) .China hasaclearerunderstandingoftheregionsdiversityandhasmoreincommon withtheregionthantheEUwithregardtotheinternationalsystem.Besidesthe economicinfluence , shepointsoutthatChinaspoliticalinfluenceshouldbe noted.Atthesametime , RuizarguesthatChinawillnotbeasubstituteforthe USandtheEUbecauserealinterestsandvaluesmustbethebasisforLatin Americasrelationswithotherregionsandcountries. 2.犕犈犚犆犗犛犝犚狊犚犲犾犪狋犻狅狀狊狑犻狋犺狋犺犲犈犝犪狀犱犆犺犻狀犪 ManyexpertsarguethattheEUstraderelationshipwithMERCOSURhas a NorthSouth character , butalso underlinethatthe ChinaMERCOSUR relationshiphassimilarcharacteristic.BarralandRibeiro ( Chapter5 ) suggest thatMERCOSURsintegrationintotheChineseeconomyinthefirstdecadeof thetwentyfirstcenturyseemstobereminiscentofa NorthSouth paradigm typicalof the nineteenth century:the exchange of raw materials and manufacturedproducts.MERCOSURhaswitnessednotonlyboomingtradewith China , butalsochallengestotheregionslocalindustriesandcompetitionin exportstothird markets.However , theauthorsdonotobjecttotrade with China , andtheyarguethatMERCOSURshouldmaintainthistraderelationship , whileincreasingthecompetitivenessofitsindustrialproducts.CarvalloSpalding ( Chapter6 ) agreeswiththeaboveargumentsandfurthersuggeststhatrelations with Chinaareevolvinginto cooperation on valueadded production and infrastructure.Hesuggeststhat MERCOSURshouldusedesignpoliciesto enhance education , infrastructure , innovation , a favourable investment environmentand cooperation betweenthe publicand privatesectors.Lu Guozheng , too , emphasisesthispositiveattitudetothefuturedevelopmentof MERCOSURChinarelationsinChapter7. Introduction:AssessingtheEmergingTrilateralRelationsbetweenChina , theEUandLatinAmerica 1 97 AlthoughitisakindofNorthSouthtraderelationship , Buckarguesin Chapter8thataggregatedEUinvestmentinLatinAmericaexceedsitsstocksin China , IndiaorevenJapan , andthatitisparticularlystronginnonprimary sectors , whichcontributesmoretolocaladdedvalueandjobs.Healsoargues thattheEUwouldbenefitgreatlyfromestablishinganFTAwithMERCOSUR , consideringitshugeserviceeconomy.Whilehepointsoutthattheagriculture issueisthekeytotheFTA , hethinksthattheproblemiswhethertheworldcan supplyenoughagriculturalproductsratherthanthelevelofsubsidiesinthis sector , withrisingglobaldemandforagriculturalproducts.Thepostliberal agenda — includingenergy , infrastructure , migration , the environmentand healthcare — wouldenjoyhigherpriorityinbilateralcooperation. 3.犈狀犲狉犵狔犛犲犮狌狉犻狋狔犪狀犱犆犾犻犿犪狋犲犆犺犪狀犵犲 InPart3 , YuHongyuan ( Chapter9 ) andSunHongbo ( Chapter10 ) provide Chineseperspectivesonclimatechangeandoilcooperation , respectively.Yu HongyuanpointsoutthatChinaisseekingamodelthatwillallowittoresolve theconflictsbetweenenergyconsumptionandenvironmentaldegradationby meansofinternationalcooperation.Chinasmajorapproachesincludedomestic capacitybuilding , winwincooperation , commonbutdifferentresponsibilities andalowcarboneconomy.HearguesthatChinasactiveattitudetowards climatechangeissueswillhavemanyimplications , whileonlybyadoptingareal lowcarboneconomycouldChinaplayaleadingroleinthedevelopingworld. SunHongboarguesthatLatinAmericaisnotyetChinasmainoilsupplier , butitcouldbeastrategicalternativeallowingChinatodiversifyitsoilsupplyin thelongrun.ChinasoilstrategytowardsLatinAmericashouldtargetthree objectives:marketentry , investmentprotectionandoilimports.WhileChina hasgreatpotentialwithregardtoinvestingintheLatinAmericanoilsector , Sun HongboproposesthatChinasinvestmentshouldalsotakeintoaccountthe politicaluncertaintyinsomeLatinAmericancountries , localemploymentandthe environmentalsituation. InChapter11 , Behrensprovidesacomprehensiveandinsightfulanalysisof theEUsclimatechangeandenergysecuritypolicychoices , aswellastheir implicationsforcooperationbetweentheEUandemergingeconomies.Heargues thatclimatechangepolicyinthecontextofambitiousgreenhousegasreduction targetsmaybebeneficialtothesecurityofsupply.Concerningthecontradictory relationshipbetweenrenewableenergyandenergysecurity , hesuggeststhat internationalcooperationwillbecrucialinachievingacleanandsecureglobal energysystem.Hepointsoutthatemergingeconomiesarenotonly major 1 98 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation greenhousegasemittersbutalsoproducersofcleanenergytechnologies ; theEU shouldworktogether withthem todevelopcleanenergytechnologiesand especiallytoimproveenergyefficiency. SilvaParejas ( Chapter12 ) offersaLatinAmericanperspectiveoninternational cooperationintheareasofenergysecurityandclimatechange.Shestatesthat LatinAmericahasastrongerpositiontocompeteintheworldmarketgivenits effortstodiversifyitsenergygrid , incorporaterenewableenergieswithaviewto nationalindependenceandadoptsustainableenergystrategies.SilvaParejas suggeststhattheregionsdiversityshouldbenotedratherthanfocusingon Brazilalone withregardtotheregionsclimateissues.Intermsofexternal dialoguesonenergyandtheenvironment , Latin Americashouldbetreatedasa speciallyfavouredparty withafocusoncooperationand winwinsolutions.Like Behrens , sheemphasisestheimportanceoftheInternationalRenewableEnergyAgency asaleadinginstitutionalframeworkforpossibletrilateralormultilateralcooperation. 4.犐狊犜犺犲狉犲犃狀狔犜狉犻犾犪狋犲狉犪犾犆狅狅狆犲狉犪狋犻狅狀 ? Mostexpertsdo notthinkthatthere has been substantialtrilateral cooperationbetweenChina , theEUandLatinAmericatodate , althoughtheydo havedifferentbutpromising visions whenimaginingfuturescenariosfor trilateralrelations.Amongthefactors whichaffecttrilateralcooperation , the expandingroleofChinainLatin Americaandthepressingregionalandglobal challenges , especiallyinsocalled “ lowpolitics ”, willenergisetheemergingtrilateral cooperation. InChapter13 , JiangShixuearguesthat , unliketheUnitedStates , whichis uneasyaboutChinasexpandingpresenceintheWesternHemisphere , Europe , andparticularlySpain , wishestoofferahelpinghandtoChinatofurtherdevelop itsrelationswithLatinAmerica.BecauseofcommonChineseandEUconcerns withregardtoenergysecurity , fightingpovertyandinequalityinLatinAmerica trilateralcooperationmightbedeveloped.TakingSpainasacasestudy , Jiang ShixueexaminesSpainspossibilitiesasapromoterofSinoLatin American cooperationintheareaslistedinChinasPolicyPaperonLatinAmericaandthe Caribbean.HisstudyshowsthatSpaincanbehelpfultoChinaintheeconomic , culturalandsocialareas — inotherwords , areasbelongingtolowpolitics. Globalissuesrequireglobalsolutions.In Chapter14 , addressingglobal challengesandtreatingthe worldeconomyasa whole , Buckarguesthat triangularcooperationispromisingevenifthereislittleexperienceinthis regard.Heliststhefollowing fields ofcooperation:globalinstitutional architecture , norms , actionsandsoon ; labourandhumanrights ; theDoha Introduction:AssessingtheEmergingTrilateralRelationsbetweenChina , theEUandLatinAmerica 1 99 process ; educationandinnovation ; andnontraditionalsecurityissues.Buckalso presentsacasestudyofAfricatoexplorethepossibilityoftrilateralcooperation thereinpositiveterms.Notingthenegativeaspectsoftrilateralcooperation , suchas highertransaction costs , hesuggeststhatthefocusshould be on structuralissuesand building peopletopeoplecontacts , as wellascultural exchanges. FortunaBiatoarguesinthelastchapterofthisconferencevolume ( Chapter 15 ) thatthebest waytoachievetrilateralcooperationisto gothrough establishedbilateralrelationships.Theinstitutionalframeworkisstillnotready fortrilateralcooperation , andtheregionalintegrationofLatin Americaasa wholehas not been accomplished , butthereis already enough space for promotingjointprojects.OneapproachistopromotetheparticipationoftheEU andChinaindeveloping majorfinancialdevelopmenttoolsin Latin America , suchastheAmericanDevelopmentBank.Theotherapproachistofindjoint projectsintheareasofastronavigation , satellites , andcleanenergy.Cooperation betweenemergingpowersisgraduallyinfluencingtheinternationalsystemand theglobalagenda , which doesnot meantheycan undertake majorprojects withoutcooperation withdevelopedcountries.The Rio Groupis workingto promoteinstitutionaldialoguewithChinaandtheEU , whichhasmadesome progress.Inthelongrun , abroaderanddeeperglobalagendawillprovidemore andmoreinstancesforachievingtrilateralcooperationbetweenChina , theEU andLatinAmerica. TheShanghaiInstitutesforInternationalStudies ( SIIS ) andtheFriedrich EbertStiftung ( FES ) wouldliketothankalltheauthorsfortheirwillingnessto cooperateinthispublication.AsallpaperswerewrittenforthejointSIISFES InternationalConference “ China , theEUandLatinAmerica:CurrentIssuesand FutureCooperation ” thattookplacein April2009 , theythereforereflectthe stateofknowledgeatthisdate.Onlysomeofthepaperswereupdatedduringthe editingprocess. Nobilingualvolumeispossiblewithoutknowledgeabletranslators.DrWu Xiaozhen , DrZhou Baowei , Zhao Ruoyuand Lu Yangtranslatedthe English contributionsintoChinese.JamesPattersonrevisedalltheEnglishpapersfor publication.Wemuchappreciatetheirprofessionalefforts. 犘犪狉狋犐 犆狅犿狆犪狉犻狊狅狀狅犳犆犺犻狀犪犪狀犱狋犺犲犈犝狊 犚犲犾犪狋犻狅狀狊犺犻狆狑犻狋犺犔犪狋犻狀犃犿犲狉犻犮犪 2 03 犆犺犪狆狋犲狉1 犃犉狅狉犿犪狋犻狀犛犲犪狉犮犺狅犳犛狌犫狊狋犪狀犮犲 — 犃狀犗狏犲狉狏犻犲狑狅犳 犚犲犾犪狋犻狅狀狊犫犲狋狑犲犲狀狋犺犲犈犝犪狀犱犔犪狋犻狀犃犿犲狉犻犮犪 犻狀犪犈狌狉狅狆犲犪狀犘犲狉狊狆犲犮狋犻狏犲 0 ¨ #'+1,* 2%"13.(  1.犐狀狋狉狅犱狌犮狋犻狅狀 FormerBrazilianPresidentFernandoHenriqueCardosocommentedonhis lastmeetingwiththepresidentsofLatinAmericaandtheEuropeanUnionas follows ( Maihold2007:149 ) : “ Althoughwefeelverycloseinspirit , inreality wecontinue ( tobe ) quitedistant. ” Althoughhewasreferringtothe Madrid SummitbetweenEuropeandLatinAmericain2002 , thisalsoappliestothelast Summit , heldon11and12 May2006inVienna.Thismeetingincludedthe participationofonethird ofthe nationsrepresentedin the UN General Assembly.Itresulted , ontheonehand , inthecommencementofnegotiations aimedatconcludingafreetradeagreementwiththeCentralAmericancountries and , ontheotherhand , inthedecisiontodevelopanegotiationperspectivewith theAndeanCommunityofNations ( ACN ) .Incontrasttothesepositiveresults , therewasstillnolightattheendofthetunnelregardingafinalconclusionofthe ongoingfreetradeagreementnegotiationswith Mercosur.Inaddition , Latin AmericaspartiallossofinterestintheEUduetotherisingpresenceofChinain theregionwasobvious. Therefore , itisnecessarytolook morecloselyattwoaspects which currentlydeterminerelationsbetweenEuropeandLatinAmerica: ( 1 ) Traditionally , EuropeandLatinAmericahavebeendefined — andhave definedthemselves — as “ naturalallies ” withregardtocommonroots ( cultural  IwouldliketothankJrgHusarforhisassistancewiththeresearchforthisarticle.Inthe followingtexttheterm “ LatinAmerica ” alsoreferstotheCaribbean. 2 04 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation valuesandsoon ), anapproachlinkedtotheexpectationthatthedevelopmentof therelationshipwouldbesimilarly “ natural ” .Inthemeantime , however , ithas becomeevidentthatthesuccessoftheongoing “ diplomacybysummit ” is limited , notonlyintermsofscope , butalsobythelackofcaretakenindefining anagendaandacoherentstrategyofcooperation. ( 2 ) A numberoffactors , includingtheformatoftherelationship , the numberofandqualitativedifferenceswithregardtoactors , andthetimetables imposedonthe mechanismsinvolved haveraised doubtsandfosteredthe deceptionbecauseofthedeficiencyinimplementingtheresults.Insteadofthe agendaofthepresidentsmeetingsbeingrefocused , however , itwasextended andaprocessofalternativesummitswiththeirownagenda ( BusinessMeeting , AlternativeSummit ) hasbeenputinplace.Thegrowingrivalrybetweenthe officialandthealternativesummitprocessesnowmakesitevenmoredifficultfor governmentstoreshapesummitdevelopmentinamoresoberfashion. 2.犜犺犲犉狅狉犿犪狋犻狅狀狅犳犪犆狅犿犿狅狀犈狌狉狅狆犲犪狀犔犪狋犻狀犃犿犲狉犻犮犪犘狅犾犻犮狔 2.1 TheGlorious?poque:The1980s EuropesrelationswithLatinAmericaevolvedsignificantlyinthe1980s , a decademarked by majorconflictsin Central America.Atthattime , the EuropeanUnionhadtodecidewhetheritcouldandshouldarbitrateinaconflict whichwascharacterisedbyhighlevelsofconfrontationtypicaloftheColdWar. Withitsdecisiontointerfere , despitetheextremelydifficultscenario , inthe UnitedStatessbackyard , theEuropean Unionforthefirsttimeassumedthe roleofaglobalpowerledbyindividualmembercountries , includingFranceand Germany.Thus , the San José Processis sometimes considered to bethe beginningoftheCommonForeignandSecurityPolicy ( CFSP ) andwasvery helpfulfordefiningcommon European positionsininternationalpolitics , in which Latin America wasEuropesfirstcounterpart.TheEuropean Union facilitatedthepeacetalksintheregionandencouragedeachcountrytostartand toadvanceitsnationaldemocratisationprocesses. 2.2 TheCurrentPhaseofStagnation LatinAmericasgovernments , aswellasrepresentativesofcivilsocietyhave startedtofeelacertaindistancefromEurope.Thisfeelingmayinpartberelated to — butalsoconfusedwith — thefactthatLatinAmericaistodayonlyoneof thepartnersEuropeisinterestedincultivating , havingplayedthecentralrole inEUforeignrelationsduringthe1980s.Tosomeobservers , thisfeelingof AFormatinSearchofSubstance AnOverviewofRelationsbetweentheEUandLatinAmericainaEuropeanPerspective 2 05 disenchantmentisduetoexaggeratedexpectations withregardto Europes interestinLatinAmerica ; forothersitdemonstratesalossofinterestinLatin AmericabytheEU.Therefore , thereisgrowingcriticism oftheEuropean Commissionwhich , fromthestandpointofLatin Americanpoliticians , isnot respondingadequatelytothechangesintheirregionandtheneedsoftheir people.Forinstance , whileEuropeisofferingpoliticaldialoguetoitsLatin Americancounterparts , thelatterexpectnegotiationsonfreetradeagreements andaccesstotheEuropeanSingleMarket.Inthiscontext , aclimateofsuspicion andalossofconfidencehasarisen. 2.3 TheStructureofRelations FromthepointofviewofLatinAmericangovernments , biregionalrelations withEuropehavechangedinparticularsincetheEU begantointegratenew memberstates.Firstofall , thenew memberstateshavenotshown much interestintheregionandarekeenerondevelopingrelations with Asia.The EasternEuropeancountriesconsiderLatinAmerican marketstobenotvery interestingornotworthtryingtoconquer.Thereforethetraditionalmember states , suchasSpain , Franceand Germany , continuetobeLatin Americas preferredcounterpartsin Europe , eventhoughitisalsolookingfor more intensivecontacts withthe East.In addition , thegrowing diversityinthe EuropeanUnion , thedisparitybetweennewandoldmembersandthedifferent ratesofintegrationindifferentpolicyareashavecalledintoquestionEuropean leadershipininternationalpoliticsinLatinAmericaneyes.ForLatinAmerica , Europeanpoliticslacksinternalconsensus , whiletheEU hasdevelopeda tendencytodrawitswagonsintoacircleandtointensifyrelationswithitsnear neighbours , inturnneglectingrelationswithregionsfurtheraway , suchasLatin America. Spaincontinuestobethe majorportofentryfortheLatin American countries , although Spainsparticipationin Latin American publicservices privatisationprocessesoverthepastdecadehasledtoacertaindistancing.The smallerand mediumsizedcountriesoftheregioninparticularseemtohave difficultyactingstrategicallyinthefaceofthesocalled “ Europeanjungle ”, asa resultofwhichtheyarelookingfora “ gatekeeper ” inordertocometoterms withtheEU. ThereisgrowingconcerninLatinAmericaabouttheEuropeantendencyto talkaboutthenew “ Left ” movements , partiesandgovernmentsintheregionas iftheycomprisedan homogenousdevelopment.From the Latin American perspectivethissimplifyingandgeneralisingviewseemstoproveonceagainthe 2 06 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation misinterpretationofrecentchangesintheregiononthepartofEuropeans. Already , ignoringtheknownlackofcoordination within Latin America , the EuropeanUnionsuspectedthatthenegotiationswith Mercosurwereaclever movetoputNorth AmericaunderpressureintheFreeTradeAreaofthe Americas ( FTAA ) process , and viceversa.Furthermore , theprotracted negotiationsbetweenthe EU and Mercosur , incontrasttothesuccessful associationagreementswith Mexicoin1997andChilein2002 , demonstratein theeyesofLatin Americangovernmentsthatthebilateralapproachis more effective.The European emphasis on regionaland bloc negotiationsis not acceptedbythemajorityofLatinAmericancountries , forseveralreasons.In response , the Europeanshave , forexample , takenaparticularstance with regardtocountrieswhichhaveaspecificprofilewithregardtosize , levelof incomeandroleininternationalpolitics , declaringa “ strategicpartnership ” with Brasilia.ThemeetingofPresidentsattheEuroLatinAmericanLimaSummitin 2008 madeevidentthe EUsnew commitmentto Brazil , which wasafforded prioritysinceitwasconsideredtobeastrategiccounterpartyfortheEUinthe bilateralsummitheldwithBrazilinLisbonon4July2007.Thisdecision , which wassomewhatagainstthegrainoftheinterregionalapproachoftheEUitself , hadinitiallyraised concernsin other Latin American countries , such as Argentina , particularlybecauseofEuropesinterestinboostingcooperationwith Brazilinthesphereofbiofuels.Thissituation , whichinitiallywassomethingof acomplicationforothermembersofMERCOSUR , hassofarhadnofurther impactonbiregionalrelations.Infact , Brazilhashadtodirectallitsdiplomatic effortstowardsensuringthatitsinterestinpromotingbioethanolwasrespected byotherparticipants.Whilebiofuelswereinitiallyseenasaviablealternativetohelp achieveenergysecurity , inthepastyearcriticism hasarisenin Europeand Latin Americawithregardtothesustainabilityofbiofuelproductionanditscompatibility withvarioussocialandenvironmentalstandards.SotheinitialdynamicoftheEuro Brazilianrelationhasbeenabating , whereasacorrespondingstrategicpartnership agreementistobesignedwithMexico ( EuropeanCommission2008 ) . FromthepointofviewofsomeLatinAmericancountriesalltheseelements showthattheEUisonlyveryslowlydrawingconclusionsfromitsanalysisofthe regionsheterogeneityandthenewpresenceofpowerssuchasChina , Iranand Russia.Nevertheless , LatinAmericarespondedtotheEuropeanregionalisation ideaanditsattendantrequirementsbycreatinginpart ( similar ) supranational ( regional ) institutions , suchastheAndeanParliament.Fromtheirperspective , however , itisuptotheEuropeanstoreanimatethefreetradenegotiationswiththe regionandindoingsotofosterrealintegration.WhileinLatinAmericanintellectual AFormatinSearchofSubstance AnOverviewofRelationsbetweentheEUandLatinAmericainaEuropeanPerspective 2 07 circlestheregionsidentificationas “ thewesternendoftheoccident ” isaccepted , major groupswithinLatinAmericansocietiesarefiercelyopposedtodefiningLatinAmerica anditspeopleasasortofextensionofEurope.Forallthereasonsoutlinedabove , LatinAmericansmeasuretheseriousnessofthesocalledstrategiccharacteroftheir relationstoEuropeonlyintermsofconcreteresults. 2.4 ANewCompetitorintheRegion:China SinceChineseleaderDengXiaopingextolledthe “ Pacificcentury ” whenhe metwiththenArgentinePresidentAlfonsínin1988 ( Xu2003:99 ), SinoLatin AmericanrelationshavebecomeamodelforSouthSouthcooperation.Although thevolumeoftradeonlygrewfrom USD1.3billiontoUSD1.8billionduring the1980s , thepoliticalslantthathaddominatedChinasLatinAmericapolicy untilthengavewaytoa morestronglyeconomicorientation ( Mann2005: 139f. ) .Thephaseofindifference , when Chinarestricteditselftoa weakly developedculturaldiplomacyandselectivecontactswithrevolutionaryforces , wasover.However , theoverridingimportanceofthe United Statesforthe AmericasasawholeimposedlimitsonanyexpansionoftheChinesepresence , andthedominanceofauthoritarianregimesintheregionalsohinderedthe initiation of more comprehensive relations ( Mora1997a:94 ) .During the 1950s — notleastundertheswayofUShegemonyoverthecontinent — broad supportfor Taiwanhadbecomeestablishedin Latin America , asaresultof whichdevelopingrelationswiththePeoplesRepublicofChinawasnotonthe agenda.FollowingtheCubanRevolutionof1959Chinapromisedthenewregime “ revolutionarysolidarity ” intheantiimperialiststruggle , buttherelationship remainedinsular , andastheCubancametoconcentrateontheSovietUnionas hisstrategicpartner , evenCubadroppedoffChinasradar. Chinasgrowinginternationalrecognitionfollowingarapprochementwith WashingtonandadmissiontotheUnitedNationsin1971alsoreinvigoratedits relationswiththestatesofLatinAmerica.Since1970thePeoplesRepublicof Chinahasexpendedamassiveeffortonestablishingdiplomaticrelationswiththe countriesoftheregion.Chinesesupportincentralquestionsofinternationallaw anddiplomacysuited Latin Americanpoliticalinterests.Thisappliedtothe establishmentofthetwohundrednauticalmileexclusiveeconomiczone ; the transferofsovereigntyovertheCanalZonetothegovernmentofPanama ; and thebanonnuclearweaponsinLatinAmerica ( Mora1997b:42 ) .Tothatextent , Chinas “ openingup ”, whichbeganin1978 , alsorepresentedaturningpointin relationswith Latin America , inthesensethatitusheredintheexportled developmentoftheChineseeconomyandtheassociatedgrowingdependencyon 2 08 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation imports.Duringthe1990s , Beijingworkedtobuildcloserrelations , especially withthoseLatin Americanstatesthatstronglydefendedthenotionofnon interventionininternalaffairs.Afterthe1989politicalturmoil , LatinAmerican governmentswererestrained , whileChinafacedstrongcriticismfrom Western countries.Inrecentdecades , ChinahassoughtdialoguewiththeRioGroupand improveditsrelations withthe Caribbeanstatesinparticular , oneformal expressionofwhichwasitsjoiningoftheCaribbeanDevelopmentBank ( CDB ) in 1997andtheInterAmericanDevelopmentBank ( IDB ) in2009. TheCaribbeanbasinandtheCentralAmericanisthmusremainamongthe mainconcernsofChinaspoliticaldiplomacy , giventhat12ofthe26countries thatcontinuetomaintain “ diplomaticrelations ” withTaiwanarelocatedinthis region ; in South America , only Paraguay maintainssuch relations.The CaribbeanalsorepresentsacrucialbridgeheadforChineseinvestments , because fromhereChinacanexploitexistingpreferentialaccessagreementstogainaccess totheUSmarket ( Mann2005:136 ) .Alsoduringthe1990s , Chinasteppedup itspresenceintheSouthandCentralAmericanregionalorganizations , gainingobserver statusattheInterAmericanDevelopmentBank ( IDB ), theLatinAmericanIntegration Association ( ALADI ), theEconomicCommissionforLatinAmericaandtheCaribbean ( ECLAC ), andtheAssociationofCaribbeanStates ( ACS ) . ForChinasLatin Americanpartnersthenew dynamism ofthePacific dimensionexpandstheiropportunitiestodevelopanew strandofexternal relationsalongsidethosewiththeUnitedStatesandwithEurope , wherethey hadinitiallyconcentratedtheirdiversificationefforts.Theyhopeinparticular thatexpandinggeoeconomicties willallowthem toreducetheironesided concentrationontheUnitedStates.Latin AmericaregardsbuddingChinese interestastheamalgamthatcouldfillthegapleftinrecentyearsbyEuropes lackofinterest.AlthoughtheEuropean Unionhasconcludedbilateralglobal agreementswith MexicoandChile , subregionalunitssuchasMercosur , the AndeanCommunity ( CAN ), andtheCentralAmericanIntegration System ( SICA ) arestillawaitingthesuccessfulconclusionofthenegotiationsonfree tradeagreementswiththeEuropeanUnion. ThemajorityofLatinAmericanstateshaveslipped , oftenwithoutserious analysis , intotheoldroleofraw materialsupplierstotheglobaleconomy , reinforcedonalongtermbasisbyChinasinterestinraw materials ( Husarand Maihold2005 ) .ThepredominanteconomicinterestsdemonstratedsofarbyChinado notappearlikelytodoanythingforLatinAmericaninitiativestoexpandtheirvalue addedchaintoencompassproductswithgreatermanufacturingcontent.Onthe otherhand , fewofthestatesintheregionhaveyetmadeanyseriouseffortsto AFormatinSearchofSubstance AnOverviewofRelationsbetweentheEUandLatinAmericainaEuropeanPerspective 2 09 enlargetheirrangeofexportsfortheChinesemarketinsuchawayastoexpand theirmanufacturingcapacities. Alongsideimmediateeconomicinterests , theexpectationthatexpanding tradewithChinawillattractmoreinvestmenttotheregionandleadtointensified noneconomiccooperationalsoplaysaroleforLatinAmerica.FromtheLatin Americanperspective , relationswithChinashouldnotonlyhelptointegratethe regionininternationalraw materialsmarkets , butalsoensurethatChinais permanentlytiedinto Latin Americasdevelopmenteffortsin a “ trade cooperationnexus ” thatwouldgeneratecooperationoverandabovethecurrent tradingrelationshipandopenupajointdimensioninthedesignandorganization ofdevelopmentprojects.Thatwouldallowfurtherdiversificationawayfromthe UnitedStatesandEuropeanUnioninthisfield , too. ChinasarrivalonthescenehascausedworrynotonlyintheUSCongress ; theEUisalsoconcernedaboutthemodalitiesofChinaspresenceintheregion. Theredoesnotappeartobearealdevelopmentalinterestwhichwouldbevery importantfortheregion ; insome ways , the “ nonconditionality ” ofChinese cooperationhasraiseddoubtsaboutitscommercialinterests , insome way parallelingtheexperienceswithChinaspresenceinAfrica. Ultimately , LatinAmericaiscompetinginternationallyforEuropeanforeign directinvestment , whichisincreasinglyflowingnotto Latin Americabutto China , largelyduetothehighgrowthratesthere.Thissourceofcapitalis indispensablefortheregioninview ofitslow domesticsavingsratesandis absolutelycrucialforcountries , suchasBrazil , thatcontinuetosufferfroma veryhighlevelofdebt.Thedecisivefactor willprobably be whether Latin Americasucceedsinofferingbetteraccessandguaranteesofgoodgovernanceand stabilitythanitsAsianrival. SinoLatinAmericantradeflowshavebeenexpandingatahighratesince 2000 , andthereisnootherregioninwhichLatinAmericaregisterssuchhigh growthrates:thevolumeofforeigntradewithChinarosefrom $2.4billionin 1991to$12.6billionin2000 , beforereaching$40billionin2004.Altogether , ChinasshareofLatinAmericanforeigntradehasrisenfrom1.2to4percent ( althoughtheincreaseisconcentratedinjustafewcountries , includingBrazil , Mexico , ChileandArgentina ), whilethecompositionhasshiftedsomewhatfrom agriculturaltomineralproducts.Labourintensiveproductsmakeup86.3per centofChinasexportstoLatinAmerica , whileexportsintheoppositedirection are76.1percentraw materialsand23.9percentindustrialgoods.North AmericanFree Trade Agreement ( NAFTA ) member Mexico , whichexports primarilyelectronicstoChina , mustberegardedasaspecialcase.Thevolumeof 2 10 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation SinoLatinAmericantradereached$100billionin2007 , whichrepresentsmore thanadoublingoftradebetweentheregionanditsnewAsianpartner ( CEPAL 2008:151ff. ) . IntherankingsofChinascumulativeforeigninvestmentLatinAmericahas reachedfifthplace , butonlythreeLatin Americancountriesareamongthe twelvelargestrecipients:Peruatseven ( notleastduetotheprioritygivento ironproduction ), Mexicoatnine ( largelytheconsequenceoftheconstructionof aChinesetextileplant ) andBrazilattwelve.Overthecomingyearsbillionsof dollarsofChineseinvestmentareexpectedtobedirectedintovariousraw materials sectors:copper ( ChileandPeru ), ironandsteel ( Brazil ), nickel ( Cuba ) and aluminium ( Jamaica ), aswellastheenergyresourcesofcrudeoilandnaturalgas.In termsofagriculturalproducts , Chinasforemostinterestsareinsoyabeansandin gainingaccesstoBrazilandArgentinaforChineseproducts ( CEPAL2008:152 ) . ThedominanceoftheChineseresourcesecuritystrategyhasbroughtwithit anadditionalincentivetorestructurethecorrespondingsectorsinthecountries ofLatinAmerica , atradenexusquitedifferentfromtheEuropeanone.Justas theexternaltradingentitiesfortheChinesesidearestateownedcompanies , the leading Latin American operatorsin the raw materials sectors are also increasinglycompaniesthathavereturnedtostateownership.Thatmeansthat jointventuresaregenerallybasedoncooperationbetweenstaterunenterprises , whichgivesthemadirectlypoliticalcharacter.Theoptionsforstatecontrolthat thisopensup , andconverselytheeconomicvulnerabilityinvolved , givethese venturesa directintergovernmentaldimension.The same appliesto the appropriationoftherespectivereturns.Thisisgristtothe millofdomestic clientelismandbilateraldiplomaticmachinations.Closelyassociatedwiththisis thequestionofthefuturedevelopmenttrajectoryofsuchcooperativeschemes , becauseoncethe “ Chinahype ” hasdieddown , theLatinAmericansidewillhave toachieveasubstantialdiversificationofexportproductsfortheChinesemarket ifitistoenjoyasecurefuture. Theverylimitedsuccesstodatein makingLatin Americaeconomically competitiveandthefactthatrentseekingisembeddedinthestructuresofthe state ( Boeckh2002 ) providessmallgroundsforhopeinthefuture.Whether SinoLatinAmericancooperationwilltakeonalongtermcharacterwillprobably dependdecisivelyontheextenttowhichLatinAmericasucceedsindiversifying theeconomicandpoliticalagendaandexpandingintofieldsoutsideraw material exports.If , however , itseffortsfail , itwillhave missedyetanotherrare opportunity , apreoccupationquiteprominentinEuropewithregardtoChinas activitiesintheregion. AFormatinSearchofSubstance AnOverviewofRelationsbetweentheEUandLatinAmericainaEuropeanPerspective 2 11 2.5 FearsandHopes On the 犲犮狅狀狅犿犻犮犾犲狏犲犾 , Latin America is particularly interested in commercialrelationswhich , however , haveturnedouttobemoredifficultthan before , duetotheperceptionthattheEU hasbeenconvertingitselfintoa “ Europeancastle ” inordertoprotectitsagriculturalproducers.The major pressureisthereforecomingfromtheagriculturalproducersinLatinAmerica , whoarekeenonfreetradeagreements withtheEuropean Unioninorderto achievebettermarketaccesstothehugeEuropeanmarket.Atthesametime , LatinAmericaistryingmoreandmoretoattractEuropeaninvestorsandthusto triggeranewperiodofEuropeaninvestment , whichinthepastdecadehasbeen dominatedbySpain.Thegrowingimportanceofmigrationtoandtheremittances ofLatin American migrantsbasedinthe EU haveencouragedinterestin developingnewideasandprogrammestodeterminehowthismoneycouldalsobe usedtosatisfydevelopmentneeds.TheEuropeanperceptionthattheFTAA negotiationsandthenegotiationswiththeEuropeanUnionwouldbemanagedin acompetitivewaycollapsedinfaceofthesuddenandunexpectedhaltingofthe continentalFTAAprocessbyLatinAmerica. Onthe 狆狅犾犻狋犻犮犪犾犾犲狏犲犾 , afeelingof “ alienation ” andadivergenceintermsof basicapproaches — dueto differing priorities withregardtotheagenda — currentlydominate.ForLatinAmerica , themigrationissueandaccesstothe Europeanmarketarethemostimportantissues.Europe , however , prioritises suchmattersasdistributionandcohesion , theleveloftaxesanddutiesinstate income , aswellastheappropriatemodelofregionalintegrationandtheneedfor securityfor Europeaninvestmentsin theregion — allissues which evoke sovereigntyconcernsinLatinAmericancountries. Regardingthe 犱犲狏犲犾狅狆犿犲狀狋犪犻犱 犪犵犲狀犱犪 , therobustagreementbetween LatinAmericaandtheEuropeanUniononthebasicquestionsconstitutesasolid startingpointforthediscussions.TheEuropeanUnioncontinuestobethemajor donortotheregion , buttheLatinAmericansidecomplainsaboutthelackof coherencebetweenthe bilateralandthe European developmentprogrammes whicharebasedondifferentandinpartevencontradictorycriteria.Thefactthat theEuropeanUnionisrepresentedintheInternationalMonetaryFund ( IMF ) and World Bankbyitsindividualmemberstates , whosepositionsarepretty muchunpredictable , isalsoaneverendingsourceofconcern.LatinAmericas governmentsalso criticisethe conditionality of European aid , the constant prioritisingofcivilsocietycooperationprogrammes , whichinthelongtermlimit thecontrolofnationalgovernments , andtheentirelyunresolvedquestionofthe 2 12 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation handlingofthedrugproblem , theLatinAmericanpositiononwhichconsistsof askingformoreactiontoreducedemandintheUSandEuropeatnationallevel. Atthe 犵犾狅犫犪犾犾犲狏犲犾 , Latin America has discoveredin China a new counterpartinitseffortstobroadenitsrangeofexportpartnersandtomatchits investmentinterests.ThishaschangedtheLatin Americanattitudetowards Europewhichisnolongertheonlydiversificationpartnerfortheregion , apart fromthedominantrelationswiththeUS.Atthesametime , thegovernmentsof LatinAmericahavestartedtosuspectthattheEuropeanUnionhasdecidedto sacrificeits strategic association with Latin Americaif otherimportant counterpartsatthegloballevelseemmorepromising. 2.6 PerspectivesandNewDynamics Traditionally , commoninterestsandculturalvalueshavebeenseenasthebasisof therelationshipbetweentheEuropeanUnionandLatinAmerica.Withtheincreasing openinguptowardstheUSwayoflife , thebondwithEuropeanculturalvalues anditsimportanceforpoliticalactionhasdiminished.Inconsequence , theLatin Americanpartnershaveshownaninterestinreaddressingorevenquestioning currentpositionsandtodosodemonstrativelyatthegloballevel. Inthiscontext , manypeople wouldalsoliketodiscussnew governance issues , especiallytheimprovementofgovernmentsystems , decentralisation processes , publicprivatepartnershipsandthelike.Recognizingthatgovernance issuesareofgrowingimportancebeyondthenationallevel , majorcountriesin LatinAmericahavebecomeleadersandprotagonistsintheprocessesofreformin internationalregimes.Thus , theglobalagendaisofspecialinteresttothebigger countries , suchasBrazil , Argentinaand Mexico , whicharetryingtostakea claimtobetheleadingcountriesintheregion.Inthiscontext , thequestionof triangularrelations betweenthe US , Europeand Latin America may be increasinginimportance , whichuptonowhasnotattainedbroadacceptancein theregion.Ontheotherhand , theLatinAmericangovernmentsareinterestedin developingtransatlanticrelationsinsucha waythatSouth Atlanticrelations mightonedayreachthesamelevelofintensityastheNorthAtlanticones.One majorstepinthisprocesscouldbethedevelopmentofcommonpositionson multilateralissuesininternationalpoliticsandinthiswaygiverisetosomesort ofEuroLatinAmericanallianceininternationalaffairs. MajorgroupsofLatinAmericanintellectualsstillcontinuetolookatEuropeas theirmajorsourceofinspirationandarethereforedrivenbythenecessitytorebuildthis relationship , startingfrom commonvaluesandnorms.Thisfacthassignificant potentialintheefforttodevelopamorecoherentandsubstantialassociationnotonly AFormatinSearchofSubstance AnOverviewofRelationsbetweentheEUandLatinAmericainaEuropeanPerspective 2 13 betweengovernmentsbutalsobetweencivilsocieties , traditionallythemostactive playerswithregardtoEuropeanLatinAmericanunderstanding. 3.犈狌狉狅狆犲犪狀犐狀狋犲狉犲狊狋狊犪狀犱狋犺犲犇犲狊犻犵狀狅犳狋犺犲犚犲犾犪狋犻狅狀狊犺犻狆 Thestagnationofitsownintegrationprocessduetothestruggletoachieve consensusontheConstitutionalTreaty — anessentialelementindeepeningthe CommonForeignandSecurityPolicy ( CFSP )— isaseriouslimitationonthe EuropeaninterestinexpandingthecooperationwithLatinAmerica.Secondly , theEuropeanCommissionandEU memberstatesconsiderthatLatinAmerica andthe Caribbean nationsareinsufficiently activein developing acommon positionininternationalaffairs , forexamplebyeffectivecoordinationoftheir foreignpoliciesoratleastbyattemptingtodefineacommonforeignpolicywith regardtotheEUinthecurrentandupcomingnegotiations.TheRioGrouphas notprovedtobetheforumforpoliticaldialoguethattheEUexpectedittobe. Ontheotherhand , theEuropeansaretryingtopromotetheirmodelofeffective multilateralismasdefinedintheEuropeanSecurityDoctrine.Thisapproach , however , demandsfromtheEUspartners — withregardtobiregionalrelations — highlevelsof policycoordinationandtheabilitytocommitthemselvesininternationalconflicts. Theseareelements whichuptonow seem underdevelopedin Latin Americaand representamajorchallengeforthecountriesoftheregion.Nevertheless , theEuropean Unioninsistsonmakingitsconceptofpoliticaldialoguebetweenregionalblocsthe centralmodalityofinterchangewithitsLatinAmericancounterparts. ThemajorproblemtheEuropean Unionisfacinginitspoliticaldialogue withtheLatinAmericanstatesisthelattersdifferentinterpretationoftheterm “ multilateralism ” :whiletheEuropeanstatesarelivingan “ effectivemultila teralism ”, intheLatin Americanstatesasortof “ defensive multilateralism ” predominates , whichmeansthatthereisalackofwilltotransfersovereigntyto superiorinstitutions , such asinternationalorganisationsorregimes.The primaryconcernofmostLatin Americancountriesisstilltheguaranteeof nationalsovereignty.The European Union has not yetrecognised Latin Americandifficultieswithitsnewheterogeneityandregionalcohesion. Lastbutnotleast , theEUisdiscoveringthatLatin Americahaslost importanceincomparisontootherworldregions , afactorwhichreducesthe attractivenessofLatinAmericaasanessentialEUpartner. Concerningimplementationofitspoliticalinterests , theEuropean Union facesaproblem ofdeficientcongruency withtheLatin Americansubregion. ThisisrevealedclearlybyarecentcommunicationoftheEuropeanCommission , inwhichitstatesthat: 2 14 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation TheCommission wishestosendapositivesignalindicatingthatEuropeis interestedintheregion.Therewouldappeartobeanerroneousperceptionthatthe EUistooabsorbedbyitsownenlargement , itsimmediateneighboursorproblems elsewhereintheworld.Thisperceptionalsoraisestheissueofthevisibilityofthe EUontheground , giventhecomplexityofitsstructuresanditsmeansofaction. TheCommissionwishestoreaffirmthattheassociationwithLatinAmericaisnot merelyamatteroffactbutisalsovitalfortheinterestsofbothregions , forboththe presentandfuture.However , ifEuropeisreadytocommititselffurthertoLatin America , italsoexpectsafirmcommitmentinreturn ( EuropeanCommission2005 ) . 3.1 EuropeanCFSPandNewChallenges ThereseemtobemajorproblemswiththeCommonForeignandSecurity Policys ( CFSP ) structureandtheformatoftherelationship , tothepointofa growingdisenchantmentonthepartofthepartnersinLatinAmerica.Onthe onehand , theEuropeanCFSPdemandshighperformingcounterpartsinLatin AmericawiththeabilitytounderstandandhandlethethreeEuropeanstrandsof ( 1 ) commonand ( 2 ) intergovernmentalpartsofforeignpolicyontheEuropean leveland ( 3 ) memberstatesexternalrelationsatthenationallevel.Onthe otherhand , thestrategyofinterregionalismisopeningupnewroadsofbilateral arrangementswhichareunderminingtheoriginalconceptofpoliticaldialogue. Atthesametime , wearewitnessingtheemergenceofnewleadingnationsinthe regionwhicharetobetheobjectsofmajorattentionfromtheCommissionandin futurecouldtakeonsomesortofregionalrepresentation. Nowadays , someobserversarecharacterisingEULatinAmericanrelations asa “ relationshipwithoutemotions ” .Thisistrueinsofarastheemotionalparts ofthisoldbiregionalassociationhavebeensuffocatedatthepoliticalleveland neglectedatthesociallevelon bothsidesofthe Atlanticforalongtime. Therefore , newconstitutiveelementsonthepoliticallevelandin ( civil ) society arerequiredtogroundandembedthestrategicrelationship. HerearesomeessentialelementsoftheprojecttoreformtheEuropean LatinAmericanrelationship: ( 1 ) Theimpracticabilityofsummitdiplomacymust beovercome ;( 2 ) TheRioGroupnolongerfunctionsasarepresentativeofall LatinAmericanpartnersandneedstobereformed ;( 3 ) Thereseemstobeaneed fordifferentiationinEuropesexternalrelations , aswellasinintegrationpolicy ; ( 4 ) ThebilateralagendainEuropeandLatin Americaincludesmostly “ soft ” topics , which meansthattopicssuchassecurityarenotcovered bythe cooperationagreement ;( 5 ) Themixingofthetopicsofthepoliticaldialogue agendawiththoseofthedevelopmentagendacreatesconfusionbetweenthe AFormatinSearchofSubstance AnOverviewofRelationsbetweentheEUandLatinAmericainaEuropeanPerspective 2 15 LatinAmericanpartners ;( 6 ) ThevaluesandculturalidentitysharedbyEurope andLatin Americaincludeseriousbutoftennotexplicit mattersforpolitical actionwhichhavetobedefinedandmadeexplicit ;( 7 ) TheEuropeanpointof view whichconsidersregionalintegrationastheultimateobjectiveandthe preferentialwayofcopingwiththeproblemsofinternationalrelationsisbasically notsharedorlikelytobeadoptedin Latin America ;( 8 ) Theselectivityof contactsandthe growingimportance ofsecondaryrelationsconfusesthe partners:explicitly , the specificrole being played by Spainin theIbero Americancontextisnotorganicallyrelatedtothe EU process ;( 9 ) The potentialsanddangersoftheroleofSpainas “ intermediary ”,“ bridge ” or “ main doororchannel ” forrelationsbetweenEuropeandLatinAmericahavenotbeen evaluatedbyeitherside ;( 10 ) ThisraisesthequestionoftheEuropeanisationof Spainsrelationswiththeregionorthe “ IberoAmericanisation ” ofEULatin Americanrelations. 3.2 TheChallengeofAsymmetry Almost10yearsaftertheirdeclarationofstrategicpartnershipinRiode Janeiro , theHeadsofStateandPresidentsofLatinAmerica / Caribbeanandthe EuropeanUnion ( EU ) metinLimaon1617 May2008.Sincethismeeting relationsbetweenthetworegionshavereflectedtheirbasicasymmetry.This asymmetry , pivotalintheLatin AmericaninterventionsinthelastEULatin AmericanSummit , notonlyexpressestheinterestinthedifferentiatedtreatment ofLatin AmericaintradenegotiationsbetweentheEU and CentralAmerica ( SICA ), theCommunityofAndeanNations ( CAN ) and Mercosur , butalso reflectscontradictorypoliticalprioritiesintermsofthematicinterests.The agendaofthepresidentialmeeting , whichtackled , ontheonehand , poverty , inequalityandinclusion ( attherequestofLatinAmericaandtheCaribbean ) and , ontheotherhand , sustainabledevelopment , theenvironment , climate changeandenergy ( whichareofparticularinterestfortheEU ) encountered significantdifficultieswhenitcametofindingacommondenominator.Although atfirstglance , intheLimaDeclaration , thefoodpricecrisisplayedacentral role , transversely permeatingallthemes , theinterestexpressed by Latin AmericancountriesinfindinganewframeworkofrelationswiththeEUismuch morenotable.Inalmostallthethematicagreementsitispossibletoperceivea livelyinterestinclearlyconveyingtheheterogeneityofthecountriesthatform thesubcontinent , and the requestthatthese differences betakeninto consideration , withtheEUimplementingmultispeedmechanismsaccordingly. Thissituationiseven moresignificantconsideringthescantinterest 2 16 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation expressedinintegrationinthefinaldeclaration ; integrationhasindeedallbut disappearedfromtheofficialdiscourseinbiregionalrelations.If , furthermore , wetakeintoaccountthepresummitconflictsbetweenthemembersofCANwith regardtothemethodofnegotiatingtheFreeTradeAgreement ( FTA ) withthe EU , wewillclearlyseethecentrifugalforcesinoperationbetweentheposition ofBolivia , ontheonehand , andthejointpositionofPeruandColombia , onthe other.Itshouldcomeasnosurprisethat , aheadofthesummit , thePeruvian PresidentclearlycalledforadecisionbytheEUtoholdtalksbetweenthe aforementionedcountriesonanindividualbasis , adecisiontheEUsnegotiators hadtoacceptinordertoadvancefurtherintheprocess.Asimilarfatecould awaitthecurrentlystallednegotiationswiththeCentralAmericancountries. GreaterflexibilityonthepartoftheEUisthedominantexpectationinLatin America.AlthoughthePresidentshaveconfirmedtheirintentionofupholding thesovereign equality ofallstates , atthe Lima Summittheirinterestin revampingtheirrelationswiththeEU wasvisible.Leavingbehind — atleast partly — themessageofsocialcohesionusedsincetheGuadalajaraSummitin 2004 , theLatin Americanparticipantshaveshiftedtheirapproachbyasking Europeforgreaterflexibilityinthe design ofcooperation programmesand compliancewiththeMillennium DevelopmentGoals , emphasisingthespecific rolewhich middleincomecountries ( MICs ) mustplay.Thesameistrueof referencestothequestforeffectivesocialpolicies , whicharebeingdifferentiated bynationalcapacities , takingintoaccountsuchinstrumentsasthedirectbudget supportmodalityand debtcancellationforsocialinvestment.Asforthe environmentandsustainabledevelopment , thedifferencesinhowthesematters areperceivedarepatent. 3.3 LookingforNewFormats Itisnotjustinstitutionalpoliticaldialogueinparliamentary , executiveand civilianformatsthathasprovedtobeaneffectiveinstrumentinbuildingsystems forcooperation ; industryfocuseddialogueshavealsoflourished.Thepersons responsibleforissuesrelatingtotheenvironment , drugsandimmigrationmet aheadoftheSummitandshowedthatthisformatmighthelptoovercomethe traditionallowproductivityattheseevents , withtheiradhocmultilateralism. Accordingly , greatercontinuity hasbeenachievedintheperiodsbetween summits , althoughthematterofsupervisingimplementationoftheagreements achievedatthe presidential meetingsisstillpending.The proposalofthe Peruvianhost Alan Garcíatocommissionthesupervisionoftheagreements achievedinLimabythe 狆狉狅狋犲犿狆狅狉犲 secretariatsin MadridandBuenosAires AFormatinSearchofSubstance AnOverviewofRelationsbetweentheEUandLatinAmericainaEuropeanPerspective 2 17 untilthenextsummitisheldinSpainseemstobeagoodsuggestion , althoughit doesnotmeettheexpectationsofgeneratingamoreflexibleinstitutionalformat. Thefollowingpointsshouldappearontheagenda: ( 1 ) EuropeandLatinAmericaneedtodevelopa 狀犲狑犮狌犾狋狌狉犲狋狅狊犺犪狆犲狋犺犲犻狉 狉犲犾犪狋犻狅狀狊犺犻狆 , andthatmeansfocusingonconcreteinterestsandpossibilitiesfor cooperationinordertomovebeyondthelimitedandgeneralisingpoliticsof “ lets gettogether ” or “ domeafavour ”; ( 2 ) Together , theEuropeansand Latin Americans mustgeneratea 狀犲狑 犱狔狀犪犿犻犮犻狀狋犺犲犻狉狉犲犾犪狋犻狅狀狊犺犻狆 tothepointthattheyneedless “ cafeparatodos ” andmoretheidentificationofrelevantcounterpartsinspecificpolicyareas ; ( 3 ) Thereisaneedtocreate 犪狀犲狑 狅狉犱犲狉狅犳犻狀狋犲狉犪犮狋犻狅狀 . That means developingnewformatsforinterregionaldialogue , forexampleinthesenseof the “ conventionmethodology ” experiencedwithinthecontextoftheEuropean constitutionalprocessbybringingtogethermembersofParliamentwithfree / independentpersonalities , businessmenandrepresentativesofcivilsocietyin ordertopreparethedecisionsandreforminputsforsummitdiplomacy ; ( 4 ) Spainmustbeinducedtotakeonanewroleofconstructiveleadership withrespecttoLatinAmericawhichcouldgiveamoreEuropeandimensionto thetraditionalbilateralfocusofitsengagementintheregion ; ( 5 ) Inaddition , a new agendashould be definedforthe biregional relationship.Commercialandtradeissues , the politicaldialogueandthe cooperationagendashouldnotbetreatedasdistinctissuesbutmoreintermsofa majorintegrationwhichpermitsanewsynergy ; ( 6 ) Theopenthematicagendashouldbereducedinordertoconcentrateon specificpriorities ; ( 7 ) Impetusshouldbegiventothepoliticalprocessbetweensummitsin ordertomaketherelationshipmorecontinuousandsubstantive. Amajorboosthasbeengivenbytheparliamentaryinitiative “ EuroLat ” .In comparisontotheLimaDeclaration , whichentails57agreementscovering17 pages , themessagefromthesecondplenarysessionoftheEuroLatinAmerican ParliamentaryAssembly ( EuroLat ), addressedtothepresidentialsummitin Limaon1May , wasmorerefreshing , withmorepoliticalcontentandalonger termvision.ThismessageadequatelyaccommodatesasymmetryinEuroLatin Americanrelationsandtheaimistoreflectthisonthebasisofaconceptof solidarityandcomplementarity.Atthesametime , itproposesaglobalinter regionalpartnership , whichcould ( alongwithprogressinpeaceandsecurity cooperation ) offerawholenewapproachtobiregionalcooperation. Themessageconciselyandadequatelysetsforththenextstepsforfocusing 2 18 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation andstrengtheninginstitutionalandcooperationmechanismsbetweentheparties , starting , forexample , withabiregionalcentreforconflictpreventionanda centreformonitoringmigration.Theserecommendationsclearlypointtowards realpossibilitiesforcooperationandcouldformpartofasystemintermsoftheir institutionalscope withregardtocooperation.Thisshowsthe virtue of cooperationanddialoguethatisnotobligedtocovereveryarea , withrepetition ofthevariousglobalinitiativesthatdonotalloworreflectspecificityinEuro LatinAmericancooperation.Inthisregard , parliamentaryactionseemstoyield moreresultsthansummitdiplomacy , whichisunabletoshakeofftraditionand isinevitablyshapedbyinternationalevents.Wemightthereforededucetheneed toachieve greater convergence between the parliamentaryinitiatives and executivedynamicstotapthevirtuesofeachoftheprocesses. 4.犉犻狀犪犾犚犲犿犪狉犽狊 ChinaspolicytowardsLatinAmericahashadonlyalimitedimpactonthe EUspolicy.Firstofall , thetradeinterestsofthesetwopartnersintheregion arequitedifferentandno “ tradewar ” hasemergedwithregardtotheregions resources.TheLatin Americancountriescoulddiversifytheirexternaltrade relationsmore , whichhasindeedalwaysbeenoneoftheirmajorendeavours.Up tonowthereisnoclearsignthatChinaisintentondevelopinganexplicit politicalroleintheregion , presumably motivated morebyareluctanceto impingeonUSintereststhanafearofpossibleclasheswithEuropeanones. USpolicytowardsLatin America wascharacterized , uptotherecent SummitoftheAmericas , byasortof “ benignneglect ”, especiallywithregardto SouthAmerica.WashingtonreliedespeciallyonBrazilasthemajorforceinthis subregion.AnopenconflicthasexistedsincetheEU changeditscommon positiononCubaandcommenced , underSpanishleadership , apolicyofdetente , whichiswhattheObamaadministrationisnowofferingtheCubangovernment. FortheEuropeansidetheimpactofUSpolicyonitsactionsinLatinAmericahas been moresystematiconcertainissues , forexamplethedrug warandthe conceptsusedbytheUSintheimplementationofitsstrategy.Ingeneralterms , bothsideshavehadtoreconciletheirpositionsinmultilateralorregionalforaand withintheframeworkoftransatlanticrelations.Withintheframeworkofthe EUspolicyon Latin Americatheconceptofatransatlantictrianglebetween LatinAmerica , theUSandtheEUhasnevergainedmuchpurchase. ForEuropesCFSP , LatinAmericawasthestartingpoint.Thecompatibilityof commonandintergovernmentalelementshasthereforealwaysbeenpresentasa majorchallengeduetotheprominentrolethatSpainhasplayedintheregionand AFormatinSearchofSubstance AnOverviewofRelationsbetweentheEUandLatinAmericainaEuropeanPerspective 2 19 theinterplaybetweentheIberoAmericanprocessandtheEULatinAmerican dialogue.WithEUenlargement , theelaborationofaCommonPositiononCuba hasbeen moredifficultand , ingeneral , interestin Latin America mayhave diminishedinfavourofthedifferentregionalprioritiesofthenew member states.UnitywithintheEUonpolicytowardsLatinAmericamaybedifficultto achieveonsomepoints , butnonewdynamichasemergedtoserveasthegeneral consensusbuildingmechanismoftheCFSP.Thepossibilitythatgeneralinterest inLatinAmericamightbemoredifficulttomaintainisadifferentissue. References Boeckh , Andreas ( 2002 ), EntwicklungimZeitalterderGlobalisierung:BefundeundFragen mitBlickaufLateinamerika , in:PeterBirle , JrgFaust , GüntherMaiholdandJürgen Rüland ( eds. ), 犌犾狅犫犪犾犻狊犻犲狉狌狀犵狌狀犱犚犲犵犻狅狀犪犾犻狊犿狌狊 : 犅犲狑犺狉狌狀犵狊狆狉狅犫犲狀犳ü狉犛狋犪犪狋狌狀犱 犇犲犿狅犽狉犪狋犻犲犻狀犃狊犻犲狀狌狀犱犔犪狋犲犻狀犪犿犲狉犻犽犪 , Opladen:Leske+ Budrich , 230254. CEPAL ( 2008 ), 犘犪狀狅狉犪犿犪犱犲犾犪犻狀狊犲狉犮犻ó狀犻狀狋犲狉狀犪犮犻狅狀犪犾犱犲犃犿é狉犻犮犪犔犪狋犻狀犪狔犲犾犆犪狉犻犫犲 , 2007 . 犜犲狀犱犲狀犮犻犪狊2008 , SantiagodeChile:UnitedNationsEconomicCommissionforLatin AmericaandtheCaribbean. EuropeanCommission ( 2005 ), 犃犛狋狉狅狀犵犲狉犘犪狉狋狀犲狉狊犺犻狆犫犲狋狑犲犲狀狋犺犲犈狌狉狅狆犲犪狀 犝狀犻狅狀犪狀犱 犔犪狋犻狀犃犿犲狉犻犮犪 , CommunicationfromtheCommissiontotheCouncilandtheEuropean ParliamentCOM , 636 , final , 8December. Husar , Jrg , andGüntherMaihold ( 2005 ), KonfliktstoffErdgas — Südamerikawirdwieder Rohstofflieferant:InnenundauenpolitischeImplikationen der Ressourcenpolitikin BolivienundArgentinien , in: 犅狉犲狀狀狆狌狀犽狋犔犪狋犲犻狀犪犿犲狉犻犽犪 , 11June , 129145. 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Seidelmann , Reimund ( 2005 ), EULatinAmericanBiregionalismasanObjectandSubjectof GlobalChange , in:WolfGrabendorffand ReimundSeidelmann ( eds. ), 犚犲犾犪狋犻狅狀狊 犫犲狋狑犲犲狀狋犺犲犈狌狉狅狆犲犪狀犝狀犻狅狀犪狀犱犔犪狋犻狀犃犿犲狉犻犮犪 . 犅犻狉犲犵犻狅狀犪犾犻狊犿犻狀犪犆犺犪狀犵犻狀犵犌犾狅犫犪犾 犛狔狊狋犲犿 , BadenBaden:Nomos , 1142. Xu , Sicheng ( 2003 ), LalargamarchaSurSur:ChinavisavisAméricaLatina , in: 犉狅狉犲犻犵狀 犃犳犳犪犻狉狊犲狀犲狊狆犪狅犾 , 3 , 95105. 2 20 犆犺犪狆狋犲狉2 犆犺犪犾犾犲狀犵犲狊狋狅犈犝犘狅犾犻犮犻犲狊狅狀犇犲狏犲犾狅狆犿犲狀狋 犆狅狅狆犲狉犪狋犻狅狀狑犻狋犺犔犪狋犻狀犃犿犲狉犻犮犪 435,  6'+3'"3 7%'%1#8% 1.犐狀狋狉狅犱狌犮狋犻狅狀 ThischapterexaminesEU developmentcooperation with Latin America. First , itconsidersthechangesintheinternationaldevelopmentagendathatare relevanttotheregion.Thisincludesthedebateoncooperation with middle incomecountries ( MICs ), implementation ofthe Paris Declaration on aid effectivenessand SouthSouth developmentcooperationin Latin America. Second , itanalysesEUdevelopmentpolicytowardsLatinAmerica , focusingin particularonitsregionaldimension , thestrategiesadoptedandthechallenge representedbyadaptingcooperationtothecreationofa “ network ” ofAssociation Agreements.Specialattentionshallbepaidtopolicyproposalstoimprove developmentcooperationwithintheframeworkofEULatinAmericanrelations. 2.犐狀狋犲狉狀犪狋犻狅狀犪犾犆狅狀狋犲狓狋狅犳犇犲狏犲犾狅狆犿犲狀狋犆狅狅狆犲狉犪狋犻狅狀犘狅犾犻犮犻犲狊狑犻狋犺犚犲犵犪狉犱狋狅 犔犪狋犻狀犃犿犲狉犻犮犪 Developmentcooperationandaidpoliciesaregoingthroughintensive change , withregardtobothideasandpractices.Abroadinternationalconsensus hasbeenachievedontheobjectivesofpovertyreduction , socialdevelopmentand theMillennium DevelopmentGoals ( MDGs ), whichforma “ socialagendafor globalisation ” .TheMillenniumDevelopmentGoals — andGoal8inparticular — alsoaimtoestablisha “ globalpartnershipfordevelopment ” withregardtothe meansneededtoachievethesegoals , particularlymoreandbetteraid , anopen tradingsystem , debtreliefandaccesstotechnology.Thisagendaisnotonlythe responsibilityofadvancedcountries , butalsoexpressesthedevelopingcountries responsibilityforimprovingtheirpovertyreductionpoliciesandgoodgovernance. ChallengestoEUPoliciesonDevelopmentCooperationwithLatinAmerica 2 21 TheEuropeanUnion ( EU ) hasbeenanimportantdrivingforcebehindthis consensusandtheestablishmentofglobaldevelopmentgoals.Ithasincorporated themintoitsowndevelopmentpolicy.Insomerespects , ithastriedtogo furtherthan whathasbeenagreedatinternationalsummits.Withregardto increasingaid , theEUhasmaintaineditsinternationalcommitmenttospend0.7 percentoftheGrossNationalIncomeofthemostadvancedcountries , despite theresistance of other countries — such as the United States — and has unilaterallyadopted a timetableto achievethisfigure no laterthan 2015 ( Economist2005 ; EuropeanUnion2006 ) . TheMillenniumDevelopmentGoalsandtheMonterreyConsensus , adopted in2002attheUNSummitonFinancingforDevelopment , haveleddonorsto reallocateOfficialDevelopmentAssistance ( ODA ) tobasicneedsandtothe poorestcountries , includingtheleastdevelopedcountries ( LDCs ) andlow incomecountries ( LICs ) .ThatmeansfocusingODAonsubSaharanAfrica , as wellason EastandSouth Asia , reducingorevenstopping ODA to middle incomecountries ( MICs ) andespeciallytoupper MICs.ODAisalsobeing increasedforcountriesinvolvedinthesocalled “ GlobalWaronTerror ”, suchas Irag , AfghanistanandPakistan. ThistrendismorevisibleinLatinAmericaandtheCaribbean , whereall countries , exceptHaiti , areclassifiedintheseincomegroups.Datapublishedby theDevelopmentAssistanceCommittee ( DAC ) oftheOrganisationforEconomic Cooperationand Development ( OECD ) revealthatthe ODA received bythis regionhasincreasedinabsoluteterms , fromaboutUSD5billionin1998 , to USD8700billionin2008 ; butinacontextofstrongaidincreases , theLatin AmericanshareoftotalODAshrankfrom12.3percentin1998to7.9percent in2008.Anumberofcountries — USA , Canada , Japan , NetherlandsandItaly — havereducedtheiraidcommitmentstotheregion ; theUKandSwedenhave closedtheirofficesandcooperationprogrammesthere ; andthestrongincreasein aidfrom Spain andthe European Commission hasnotbeensufficientto compensatethesetrends ( DevelopmentAssistanceCommittee2010 ) . Overall , theeffectofthe Millennium DevelopmentGoalsinLatinAmerica hasbeentofosteramoreprogressivepatternofaidallocationandthereforeless aidtoupper MICs , although “ donordarlings ” and “ donororphans ” were included.Between2001and2006 , OfficialDevelopmentAssistance ( ODA ) to upperMICsfellbyover60percentforCostaRica , MexicoandUruguay , andby roughly30percentforArgentina , ChileandPanama.LowerMICsexhibitan unevenpattern , withaidreductionsforsomecountries , suchasBrazil , Ecuador , ElSalvadorandParaguay.Incontrast , therehavebeenaidincreasestoother 2 22 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation countries , suchasBolivia , Colombia , CubaandHonduras.Giventhatchanges inaidamountsarenotdirectlyrelatedtoincomelevels , itcanbeconcludedthat theyareanoutcomeofdonorpreferencestowardsthesocalled 犱狅狀狅狉犱犪狉犾犻狀犵狊 to thedetrimentofthesocalled 犱狅狀狅狉狅狉狆犺犪狀狊 , aswellasofalackofcoordination amongdonors.Finally , aidtoNicaragua , theonlylowincomecountry ( LIC ) in theregion , alsogrew.In2005 , 70percentofLatinAmericanODAwentonlyto Nicaragua , Bolivia , Honduras , Colombiaand Peru ; in20062008 Colombia , Nicaragua , Haiti , BoliviaandHondurasreceived45percentoftotalODAfor LatinAmerica ( DevelopmentAssistanceCommittee2010 ) . Colombiaisaspecialcase.Thiscountryreceived — atmorethan300per cent — thelargestincreaseinODAduringtheperiod.TheUSled “ GlobalWar onTerror ”, albeitunrelatedtothemotivesanddynamicsoftheinternalconflict inthiscountry , becamethemaindriverbehindthestrongriseofColombias ODA.AccordingtoOECDdata , from2006to2008Colombiaremainedinfirst placeintherankingofLatinAmericanaidrecipients , receivingabout1billion USdollarsperyear , or11percentoftotalODAto Latin Americaandthe Caribbean ( DevelopmentAssistanceCommittee2010 ) . However , itisimportanttorememberthatODAflowsarebecomingless relevantforLatinAmericanMICsinthewidercontextofdevelopmentfinance. Privateflows ( foreigndirectinvestments , portfolioinvestments , privateloans andremittances ) areincreasinglyimportantforLatinAmerica , movingofficial flowsdownintosecondplace.Thishassignificantimplicationsfordevelopment cooperationpolicies.ODAislosingrelevanceasafinancing mechanism , but gainingimportanceasaninstrumenttofosterpolicychanges.Atthesame time , itisnecessarytoaddressa widerdevelopmentagendarelatedtothe financialvulnerabilitycausedbythegreatervolatilityofprivateflowsandthe riskoffinancialshocks , asseemstobeconfirmedbytheeconomiccrisisof 2009. Followingthe Millennium DevelopmentGoalsagenda , inthe Monterrey Consensusof 2002 , donors openly recognised the need to improve aid effectivenessandchangethewayinwhichitisdistributedthroughanincreasing numberof bilateraland multilateraldonors , andincreasinglyfragmented channelsofaid delivery.Thusthey decidedto harmonisetheir operational proceduresinordertoreducetransactioncosts ; tostrengthentheabsorption capacityandfinancialmanagementofrecipientcountries ; tomakeresourceflows morepredictable ; tousemoreappropriateinstruments , inparticular , budget support ; andtoprovideaidfordevelopmentandpovertyreductiondecidedonby developingcountries , forwhichthelatterwerealsoresponsible.TheHighLevel ChallengestoEUPoliciesonDevelopmentCooperationwithLatinAmerica 2 23 Forum on Aid Effectiveness ( HLF ), comprising bilateraland multilateral donors , as wellasa numberofrecipientcountries , hasadoptedimportant documents , suchastheRomeDeclarationon Harmonisation ( 2003 ) andthe ParisDeclarationontheEffectivenessofAid ( 2005 ) .Thelatter , inparticular , definedanewparadigmintherelationshipbetweendonorsandrecipients , calling thelatter “ partnercountries ”, inaspiritofcoresponsibility.Thedeclaration , signedbymorethan100donorsanddevelopingcountries , wasintendedtophase outrelationshipsbasedonconditionalityandtotackletheproblemsresulting fromtheproliferationofdonorsandthefragmentationofaid.Furthermore , all ofthisisbasedontheprinciplesofownership , alignment , harmonisationand mutualaccountability. 2.1 DevelopmentCooperationPolicieswithMICs:RelevanceforLatinAmerica Theexistenceof “ pocketsofpoverty ” hasbeenclaimedasjustificationfor themaintenanceofaidflowsto middleincomecountries ( MICs ) .Buttheaid reductionstoMICshaveoftenbeenjustifiedonthegroundsthattherealproblem inmanyofthesecountriesisinequality , notpoverty.Itisarguedthatitisnot justifiabletohandoverexternalresourceswhentheinternalactorsthemselves rejectthe redistributive policies needed to reduce poverty and inequality. However , thisargument wouldbecorrectonlyifreducingaid waslikelyto encourageinternalchangesandpropoorpoliciesindevelopingcountries , butthis isunlikely. ThereareotherimportantreasonsformaintainingaidtoMICsandtheyare particularlyapplicabletothesituationinLatinAmerica.AsAlonso ( 2007 ) has indicated , iftheaimistoeradicatepoverty , progressmustalsobemadeinthe MICs , giventhenumbersofpoorpeopleinthesecountries.Second , theaid systemwouldbeestablishingaperversesystemofincentivesandraisingamoral hazardissueifprogressindevelopmentweretobepenalisedbyareductionin aid.Third , itisimportanttoavoidbackwardstepsincountrieswhereprogress hasnotbeenconsolidated , andincountriesathighriskduetotheirexternal vulnerabilitytofinancialorothercrises.Fourth , thesecountriesalsooftenactas regional “ anchors ” intermsofeconomicdevelopmentandregionalstability ( for example , MexicowithregardtoCentralAmericaandBrazilwithregardtothe AndeanandSouthAmericancountries ) .Fifth , thefighttoreducepovertyand promotesustainabledevelopmentpartlydependsontheadequateprovisionand maintenanceofglobalandregionalpublicgoodsandthesecannotbeensured withoutthesupportoftheMICs.Finally , inadditiontobeingrecipientsofaid , thesecountriescanalsobedonorsthroughinnovativeSouthSouthcooperation 2 24 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation mechanisms.Thismeansthataidto MICsmaymobilisemoreresourcesand encouragethedevelopingcountriesthemselvesandtheirregionalorganisationsto take moreresponsibilityforattainingthe Millennium Development Goals. AttainmentoftheMillenniumDevelopmentGoals , notablyinLatinAmericaand theCaribbean , requiresconsiderationofspecificfeaturesoftheregionsMICs. ManyMICshavehadperiodsofstronggrowthbuthavenotbeenabletosustain itduetoinstitutionalweaknessandthelackofsocialcohesion.Furthermorethe vulnerabilityoftheirinternationalposition , particularlywithregardtofinance andtrade , andalackoftechnologicalcapabilitiesintheireconomicsystemshas hinderedgrowth.Therefore , apervasiveagendaofdevelopmentcooperation withLatinAmericanMICs , againstthevoicescallingforareallocationofaidto thepoorestcountriesinAfricaorAsia , mustdealwiththreemajordevelopment challenges: ( 1 ) 犐狀狊狋犻狋狌狋犻狅狀犫狌犻犾犱犻狀犵犪狀犱狊狅犮犻犪犾犮狅犺犲狊犻狅狀 :Fragileinstitutionsundermine thecapacitytoprovidepublicgoods , managedistributiveconflicts , dealwith externalshocks , regulatemarkets , ensuresocialcohesionandtacklethehigh levelofinequalitythatcharacterisesLatinAmericancountries.Allthesefactors contributetoimpairthelegitimacy ofinstitutions.Therefore , an effective cooperationpolicywith MICsshouldincludeimprovementsinpublicpolicies throughinstitutionalreform , thereinforcementofspecifichealthandeducation programmesandsupportforsocialforcesfavourabletochange.Onekeyaspect thatillustratesbothinstitutionalweaknessandthelackofcohesionisLatinAmerican countriesfiscalweakness , whichiswhysupportingtaxreformiscrucial. ( 2 ) 犉犻狀犪狀犮犻犪犾狊狋犪犫犻犾犻狋狔犪狀犱犮狅狌狀狋犲狉犮狔犮犾犻犮犪犾狆狅犾犻犮犻犲狊 :Asthecrisesofrecent yearshaveshown , thevulnerabilityofMICstofinancialshocksstemsfromtheir highlyvolatilefinancialsituation.Thisrequires betterregulation ofthe international financial markets through a “ new international financial architecture ”; strongernationalfinancialsystems ; solutionstotheproblemof sovereign debt by adequateinternationalregulation , which is stilllacking ( InternationalMonetaryFundproposalsonthisaftertheArgentinecrisisof 20012002becameboggeddown ); andgreaterautonomyforMICstoapplyanti cyclicalpoliciestopreservetheprogressmadeinreducingpoverty.Withinthe frameworkofG20agreementsaddressingthe2009economic meltdown , a numberofLatinAmericancountriesareapplyingalreadysuccessfulanticyclical packageswiththesegoals. ( 3 ) 犘狅犾犻犮犻犲狊狋狅 犳狅狊狋犲狉犮狅犿狆犲狋犻狋犻狏犲狀犲狊狊 犪狀犱 犻犿狆狉狅狏犲 犪犮犮犲狊狊狋狅 犲狓狋犲狉狀犪犾 犿犪狉犽犲狋狊 :Investmentsininfrastructure , humancapitalandtechnologytransferto productionarebettersuitedforMICsthanpoorcountries.Thiswillbreakthe ChallengestoEUPoliciesonDevelopmentCooperationwithLatinAmerica 2 25 “ viciouscircle ” ofexporting goodsintensivein naturalresources andlow productivityjobs , aswellasfiscalpoliciesthathindermuchneededspendingin education , research , developmentandinnovation ( RDI ) capacities.Theregulationof intellectualpropertyrightsbytheWorldTradeOrganisation ( WTO ) andregionaltrade agreementscouldalsobeanobstaclebyreducingthescopefornationalpoliciesinthis field.Whatcooperationpoliciesmightplayakeyrolehere ? First , wellplannedtrade liberalisationisrequired , throughagreements ( bothregionalSouthSouthintegration or “ SouthNorth ” tradeagreements ) thatensureaccesstoexternalmarkets , increase externalinvestmentandencourageinnovationandcompetitiveness , butthatalso recogniseasymmetriesandallowfortheapplicationofactivepoliciestomitigate thecostsofadjustmentandpromoteatransformationofproductionpatterns. Thisistrueparticularlyinthecaseof “ SouthNorth ” agreements , in which asymmetriesaregreater.EU andexternalpartnerscanplayakeyrolein supportingthesepolicies.Cooperationinscienceandtechnologyprogrammes thathelptogeneratedomesticcapacitiesandtechnologytransferprogrammesare alsokeyelementsinthiscompetitivenessagenda. Withintheframeworkoftheinternationalconsensusonthe Millennium Development Goals , there have been variousinitiativesto promotethe developmentagendaofMICsandavoidsimplisticapproachestoaid , withthe backingofthe MICsthemselves , somedonorcountriesandthe multilateral developmentbanks.TheMICsagendawasincludedinthe 犈狌狉狅狆犲犪狀犆狅狀狊犲狀狊狌狊 狅狀 犇犲狏犲犾狅狆犿犲狀狋 of 2005 ( European Union 2006 ), which maintained thepriorityallocation of ODA tolowincomecountries , butrecognisesthe differentapproachesneededtodealwith MICdevelopmentproblems.This agendahasalsobeenbackedbytheUnitedNations ( UN ) InterGovernmental ConferencesonMICs ( MadridandSanSalvador2007 ) andtheIberoAmerican Conferences. 2.2 PostliberalRegionalism and SouthSouthCooperation inLatinAmerica Postliberalregionalism and SouthSouth cooperation ( SSC ) are both importantelementsinthedevelopmentlandscapeofLatin Americaatthe beginningofthetwentyfirstcentury.SSCisnotnewintheregion , butithas expandedinrecentyears , developedbilaterallybyanumberofcountriesandalso byregionalorganisations.ThedevelopmentofSSCin Latin Americaisa responsetoseveralfactors.Itispartofa “ postliberal ” reinterpretationof regionalismandregionalintegration.Itshouldalsobeseenastheexpressionof themoreactiverolebeingplayedbysomecountries , theirleadershipaspirations 2 26 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation andmoreassertiveforeignpolicy ( Sanahuja2010a , 2010b ), aswellastheir capacitytocontributetoattainingtheMillenniumDevelopmentGoalsasdonors andnotonlyasrecipients.However , asmiddleincomecountries ( MICs ) arenot membersofthe OECDs Development Assistance Committee ( DAC ), their contributionsarenotrecordedanddonotfitintoDACcategories.Thismakesit difficulttoestimatetheirmagnitude. SSCisofconsiderablerelevancetothe MICsdevelopmentagenda , asit generatesbenefitsforbothdonorsandrecipients.TheMICsthemselvesbelieve thatitmaybeabetterwayofmeetingtheirneeds , makinggreateruseoflocal resourcesandgeneratingagreatersenseofownership.Latin AmericanSSC modalitiesinclude “ horizontal ” and “ triangular ” SSC.Thehorizontaltype involvesonlydevelopingcountries , buttriangularSSCalsoinvolvesfinancial resourcesfromatraditionaldonor ( advancedcountryormultilateralagency ), whilethehumanresourcesandknowhowcomefrom developingcountries. RecognisingtheimportanceofSouthSouthcooperation , someDACdonors — especiallyGermany , Japan , Belgium , the United Kingdom and multilateral agencies ( FAO , UNFPA , IICA )— have promotedtriangulararrangements. Mexico , Chile , Argentina , BrazilandColombiahavebeenactivelyinvolvedin implementationandthemainrecipientshavebeenthepoorestCentralAmerican and Andeancountries , Paraguayandthe Dominican Republic ( Xalma2007 ) . SomemodalitiesofSSC areconstructed withintheframeworkofregional policies.Thisisexplainedbytheappearanceofnew regionaliststrategies sometimescalled “ postliberal ” ( Motta etal.2007 ; Sanahuja 2010 ), in particulartheVenezuelanBolivarianAlternativefortheAmericas ( ALBA ) and theattempttoredesignSouthAmericanintegrationwithintheframeworkofthe Union of South American Nations ( UNASUR ) . These proposals are characterisedbytheprimacyoftheirpoliticalagenda , theirfocusonstateactors ratherthantheliberalstrategiesofthesocalled “ openregionalism ”, more emphasison common policiesin energy orinfrastructure than in trade liberalisationandconcernsforsocialissuesandasymmetriesofdevelopment. Financialcooperationisalsopartofthisagenda , asillustratedbythe “ South Bank ” .Additionally , regional “ structuralfunds ” areemergingtotackleregional asymmetries , suchasthe MercosurStructuralConvergenceFund ( FOCEM ) . DifferentpatternsofSSCcouldbeseenintheregion: ( 1 ) Technicalassistanceandhighereducationcooperationfocusingonthe poorercountriesofLatinAmerica ( ArgentinaandChile ) . ( 2 ) Technicalassistance , infrastructureandoilfinancingonpreferential termsfor Central American countries ( Mexico ) throughthe San José oil ChallengestoEUPoliciesonDevelopmentCooperationwithLatinAmerica 2 27 agreementandthe “ PlanPueblaPanam ” . ( 3 ) TheBraziliandecentralisedmodelofcooperationbasedonsemipublic actorsandfocusing on Africa and Asia , particularly Portuguesespeaking countries.Thisprogramme , whichservestheforeignpolicygoalsofBrazilas botharegionaland a globalplayer , includestechnicalassistancefrom the BrazilianCooperationAgency , preferentialloansfromtheNationalEconomicand SocialDevelopmentBank ( BNDES ) and HIV / Aidsdrugsprovidedbythe OsvaldoCruzFoundation ( Economist2010 ) . ( 4 ) The “ Bolivarianproject ” ofVenezuelaand Cuba ( Petrocaribeand ALBA ) isthemostextensiveprogrammeofSSCinLatinAmericaandopenly linkedtoforeign policygoals.Itrepresentsan SSCframework basedon ideologicalaffinity rather than economic complementarity and would be inconceivablewithoutVenezuelanoil.Therearesixareasofcooperation: ( a ) oil financing ( Petrocaribe );( b ) socialcooperation , includingCubandoctorsmissions , literacyandculturalinitiatives ;( c ) economiccooperationthroughjointventuresand thePeoples Trade Treaty ( TCP );( d ) aframeworktofosterbartertrade ; ( e ) infrastructureandcommunications ( TeleSurandtheCubaVenezuelasubmarine cable ); and ( f ) monetaryandfinancialcooperationviatheALBA Fundand Bank. 3.犜犺犲犈犝 , 狋犺犲犃狉犮犺犻狋犲犮狋狌狉犲狅犳犃犻犱犪狀犱犚犲犳狅狉犿狅犳犇犲狏犲犾狅狆犿犲狀狋犘狅犾犻犮狔 TheEUhastriedtodevelopacommondevelopmentstrategy , sharedbythe CommunityandtheMemberStatesalike , inaccordancewiththecoordinationand complementarity of EU development policy. The European Development Consensusof2005 , whichconfirmstheEUscommitmenttothe Millennium DevelopmentGoals ( MDGs ) andthe Romeand Paris Declarationson Aid Effectiveness , establishescommon objectives , definescommon prioritiesand reaffirmstheneedforadifferentiatedapproachto middleincomecountries ( MICs ) andlowincomecountries ( LICs ) .Itestablishesthefollowingninepriority areas: ( 1 ) tradeandregionalintegration ;( 2 ) theenvironmentandthesustainable managementofnaturalresources ; ( 3 ) infrastructure , communicationsand transport ;( 4 ) waterandenergy ;( 5 ) ruraldevelopment , territorialplanning , agricultureandfoodsecurity ;( 6 ) governance , democracy , humanrightsand supportforeconomicandinstitutionalreform ; ( 7 ) conflictprevention and fragilestates ; ( 8 ) human development ; and ( 9 ) socialcohesion and employment. TheEU , whichaccountsformorethanhalftheworldsOfficialDevelopment Assistance ( ODA ), hasspecificallycommitteditselftotheprinciplesofalignment , 2 28 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation ownership , harmonisation , mutualresponsibilityandmanagementbyresults , as wellastotheParisDeclaration.Inaddition , throughtheEuropeanDevelopment Consensus , theEUhasundertakentoplayaleadershiproleinthisprocess , with commitmentsadditionaltothoseadoptedbytheOECDsDevelopmentAssistance Committee ( DAC ) .Inordertoachievethis , Commissionproposalsassume50 percentoftotalODAthroughnationalsystemsandthedoublingofbudgetaid. Thisinvolvesasignificantchange withregardtocooperation with Latin America , especiallywithLICs , whichhavehardlyreceivedanybudgetaidfrom theEU ( Ayuso2006 ) .InMay2007 , theCounciladoptedanewpolicyonthe divisionoflabourbetweentheEuropean Commissionandthe MemberStates which , inaccordancewiththeParisDeclarationandtheEuropeanDevelopment Consensus , willencouragegreatercomplementarities , aswellasgeographicand sectorspecialisation. Since1998 , theEUhasalsoundertakenanambitiousagendaofadministrative reformthathastriedtoovercomeadysfunctionalorganisationalstructure , alack ofpersonnelandbureaucraticbottlenecks.Therehasbeena “ deconcentration ” of CommissionservicesandpersonneltowardsDelegationsindevelopingcountries andimprovementsinstaffing.Anotherimportantaspecthasbeentheadoptionof new budgetaryinstruments , which hasrationalised the wideranging but fragmentedpanoplyofbudgetlinesandrulesthatwereinforcehitherto. 1 ThenewDevelopmentCooperationInstrument ( DCI ) replacestheprevious “ geographicalbudgetarylines ” andatleasttenthematicbudgetarylines.Ithas anindicativebudgetofEUR16897millionfortheperiod20072013 , ofwhich EUR2690million ( 16percent ) hasbeenallocatedtoLatinAmericatofinance thefollowingpriorities: ( 1 ) 狆狉狅犿狅狋犻狀犵狊狅犮犻犪犾犮狅犺犲狊犻狅狀 :throughtaxandsocialwelfarepolicies , employment , thefightagainstillegaldrugs , educationandhealth ; ( 2 ) 狉犲犵犻狅狀犪犾犻狀狋犲犵狉犪狋犻狅狀 , includingtheinterconnectionofinfrastructuresin coordinationwiththeEuropeanInvestmentBank ( EIB ); ( 3 ) 犻狀狊狋犻狋狌狋犻狅狀犫狌犻犾犱犻狀犵 , goodgovernanceandprotectionofhumanrights , includingtherightsofindigenouspeopleandminorities ; ( 4 ) supportingthe creation of a 犮狅犿犿狅狀 犈犝犔犪狋犻狀 犃犿犲狉犻犮犪 犺犻犵犺犲狉 犲犱狌犮犪狋犻狅狀犪狉犲犪 ; ( 5 ) 狆狉狅犿狅狋犻狀犵狊狌狊狋犪犻狀犪犫犾犲犱犲狏犲犾狅狆犿犲狀狋 , particularlytheprotectionofforestsand biodiversity.TheDCIalsohasanindicativebudgetofEUR5596millionfor “ thematicprogrammes ” 2 coveringallregions , includingLatinAmerica. ChallengestoEUPoliciesonDevelopmentCooperationwithLatinAmerica 2 29 4.犜犺犲 “ 犛狋狉犪狋犲犵犻犮犘犪狉狋狀犲狉狊犺犻狆 ” 牶犘狅犾犻犮狔犇犻犪犾狅犵狌犲 , 犪狀犱犈犝犔犪狋犻狀 犃犿犲狉犻犮犪狀 犇犲狏犲犾狅狆犿犲狀狋犆狅狅狆犲狉犪狋犻狅狀 Fromitsinceptioninthe1980s , theEULatinAmericanpoliticaldialoguehas evolvedinanumberofregionalandsubregionalsettings , withtheministerialdialogue betweentheEUandtheRioGroupasthemostsignificant.In1999 , a “ Strategic Partnership ” waslaunched , including biannualsummits of heads ofstate and government.ThisStrategicPartnershiphastoitsnamesuchnotableachievementsas theEUassociationandfreetradeagreementswithMexico ( 2000 ) andChile ( 2002 ) . Sinceitwasestablished , theStrategicPartnershiphashadtodealwithan unfavourableinternationalcontext , and Latin Americaseemstohaveslipped downtheEUsforeignrelationsagenda.Thisisduetofactorssuchasthe demandsofEU enlargement , andthedisplacementofEuropean priorities towardstheeastandtheBalkans.Anotherimportantfactoristheprimacythat securityandthewaronterrorhaveacquiredininternationalrelationssincethe 11 Septemberattacks , pushing developmentissuesintothebackground. Moreover , withregardtotrade , theEUandsomeLatinAmericancountries gavepreferencetotradetalksintheWTOwhich , withtheenlargementofthe EU , meanttacklingthedifficultreform oftheCommon AgriculturalPolicy ( CAP ) .Thisreform , whichtookplacein2002and2003 , hinderedtheECs bargainingpositionbymaintaininga “ productivist ” agriculturalmodel.The difficultiesposedbytheagriculturalchapterandthe “ WTOoption ” meantthat negotiationswithMercosurhavebeengoingonformorethantenyearswithout success.Byprioritising MexicoandChile , thecountriesthatoptedforfree tradewiththe UnitedStates , the EU fostered , albeitinvoluntarily , the perceptionthatthoseagreementswerea “ reactive ” movefollowingonfrom US policy. Beyondpoliticaldialogue , akeyelementbehindtheStrategicPartnershipis EUpolicytowardsLatinAmerica , asdraftedbytheEuropeanCommissionand endorsedbytheCouncilandtheEuropeanParliament.Sincethefirstadoptionof astrategyonrelationswithLatinAmericain1994 ( CounciloftheEuropean Union:1994 ), 3 theEU — andinparticulartheEuropeanCommission — hasset outitsregionalstrategyforLatin Americainaseriesofdocuments. 4 The Communication 犃犛狋狉狅狀犵犲狉犘犪狉狋狀犲狉狊犺犻狆犫犲狋狑犲犲狀狋犺犲犈狌狉狅狆犲犪狀犝狀犻狅狀犪狀犱犔犪狋犻狀 犃犿犲狉犻犮犪 , adoptedonDecember2005 , wasendorsedbytheCouncilConclusions ofFebruary2006 , andsetoutprioritiesadaptedtothenewpoliticalcycleandto changesinLatinAmerica.AccordingtothisCommunication , theEUaimsto stepuppoliticaldialogue.Italsoproposestocompletethe “ network ” of 2 30 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation associationagreementswiththerestofLatinAmericaandtosupportregional integrationprocesses.Alsoonthetableis moreintensedialogueonthe environment , andamoreactiveroleoftheEuropeanInvestmentBankinsupport ofregionalinfrastructure.Itstatesthatsocialcohesionisa “ priorityarea ” of EULatinAmericanrelationsandcallsforthecreationofaEuroLatinAmerican Parliamentary Assembly — laterapprovedatthe Viennabiregionalsummitin 2006 , andanEULatinAmericahighereducationarea. TheCommunication adoptedin 2009 , 犜犺犲犈狌狉狅狆犲犪狀 犝狀犻狅狀 犪狀犱 犔犪狋犻狀 犃犿犲狉犻犮犪牶犌犾狅犫犪犾犘犾犪狔犲狉狊犻狀犘犪狉狋狀犲狉狊犺犻狆 , whichcallsforamorefocusedpolitical dialogue , concerningnotonlybiregionalissues , butglobalones , andforthe firsttimetheECstatesthataspecificdialoguecouldbeestablishedwiththe UnionofSouthAmericanNations ( UNASUR ) .Italsosuggestscomplementing EUsupportandcooperation withregionalgroupings , aswellasastronger bilateralrelationshipwithcountriesintheregion.Newcooperationinstruments areenvisaged , suchastheLatin AmericaInvestmentFacility ( LAIF ) .This initiative , inspiredbytheNeighbourhoodInvestmentFacility ( NIF ), willpool grantresourcesfromtheCommunityandpossibleadditionalgrantsfromthe MemberStatesinordertofinanceinvestmentprojectsinthethreeareasof infrastructure , socialcohesion and adaptation to climate change.A new instrumenthasalsobeenproposed , namelyanEULatinAmericanFoundationto fostertheparticipationofcivilsociety , academicactorsandmutualknowledge. 5.犚犲犵犻狅狀犪犾犆狅狅狆犲狉犪狋犻狅狀犪狀犱犛狌狆狆狅狉狋犳狅狉犐狀狋犲犵狉犪狋犻狅狀 , 犚犲犵犻狅狀犪犾犻狊犿犪狀犱犛狅犮犻犪犾 犆狅犺犲狊犻狅狀 TheEuropeanCommunityisoneofthefewsupportersofregionalcooperationin LatinAmericaandtheonlyoneinvolvedinbiregionalcooperation.Thebudget frameworkexclusivelyforregionalcooperationwithLatinAmericaduringthe period20022006amountedtoEUR264 millionforregionalprogrammes ( see Table1 ) .TheCommunityhasalsoestablishedtheEuropeanInvestmentBank ( EIB ) fundinglinesofEUR40millionfortheAndeanDevelopmentCorporation ( CAF ), and EUR 35 million withtheCentralAmerican BankforEconomic Integration ( BCIE ) .Regionalcooperation has beenlopsided because ofthe seriousandongoingproblemofdefiningacounterpart , sincethereisnoLatin Americawideintegrationorganisation.ThustheEU hasoptedforregional programmesbasedonthematic “ networks ” andconsortialargely madeupof decentralisedstakeholdersthatpromote “ bottomup ” regionalisationratherthan formalisedandinstitutionalised “ topdown ” regionalism. ChallengestoEUPoliciesonDevelopmentCooperationwithLatinAmerica 2 31 犜犪犫犾犲1 犅狌犱犵犲狋犉狉犪犿犲狑狅狉犽犈狓犮犾狌狊犻狏犲犾狔犳狅狉犚犲犵犻狅狀犪犾犆狅狅狆犲狉犪狋犻狅狀狑犻狋犺犔犪狋犻狀犃犿犲狉犻犮犪 , 20022006 Nameandtimespan Budget Aim AlInvest 19932007 URBAL 19962006 ALFA 19942005 ALBAN 20022010 @ LIS 20022006 EuroSocial ( since2006 ) OBREAL / EULARO 20042007 EUR53millionin ProvisionofservicestoEUandLatinAmeri stageIII canbusinesstofostertradeandinvestment EUR 50 million Local government and local development ( stageII ) exchangeandcooperation EUR 54 million EULatinAmericaacademicnetworks ( stageII ) EUR88million ScholarshipsforLatinAmericanstudentsto undertakepostgraduatestudiesintheEU EUR77million LatinAmericaInformationSociety:toreducethe “ digitaldivide ” betweenthetworegionsandto promotedialogueonstandardsandrules EUR30million Thematicnetworkstoexchangegoodprac ticesineducation , taxation , health , justice andemployment EUR1.3million EULatin AmericaRelationshipsObservato ry:Researchandexchangesto monitorbi regionalrelations Source:EuropeanCommission2002 , 2007. Subregionalprogrammes with Mercosur , the Andean Communityand CentralAmericahavebeenallottedmoreimportancewithregardtotheprovision ofsupportforintegration and regionalism. They involved the regional institutionsasacontactpoint , althoughthefinancialcommitmentwasfairly low:from1996to2003 , LatinAmericareceivedatotalofEUR3480million , whichincludesbothallocationsfromtheRegulationconcerningaidtoLatin AmericanandAsiandevelopingcountries ( socalledRegulationPVDALA , to useitsFrenchacronym ) andhorizontalbudgetlines.Ofthesefunds , 72percent correspondtobilateralactions , 17percenttoregionalprogrammesand12per centtosubregionalprogrammes. 5 Althoughsomearenotrelatedtospecific integrationagreements , EuropeanCommunity ( EC ) projectsinareassuchas crossbordercooperationorwaterbasinnavigationalso meetthatobjective ( DevelopmentResearchersNetwork2005 ) . A basicpremise which willhelpregionalcooperationtoproducepositive resultsisthedegreeofintragroupcohesionandthecommitmentofLatin Americangovernmentsthemselvestoregionalintegrationanditsinstitutions. TheEChasneverthelessprovidedsupportduringaperiodofseriouscrisisfor integration , whichhasconditionedtheresultsofECprojects.Thefailureof 2 32 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation regionalintegrationnotonlydamagesthereputationofthesegroupsandits members , butalsoaffectstheEC. Therelationshipbetweensocialcohesionandfreetradeagreementsalso raisesanimportantissueofpolicycoherenceforthe EU asitconcernsthe treatmentofasymmetriesandthelinksbetweentrade , employmentandthe environment.Itisdoubtfulwhetherthistypeofagreementfostersapositive relationship between free trade and social cohesion , a crucialissue in developmentandthepovertyreductionagendainLatinAmerica.Inparticular , thepossiblenegotiationofassociationagreementswithCentralAmericanand Andeancountriesraisesmajorproblemsregardingthetreatmentofasymmetries andtheirimpactonsocialcohesion. 6.犚狅犪犱狊犃犺犲犪犱牶犚犲犾犲狏犪狀狋犛狋狉犪狋犲犵犻犲狊犳狅狉犈犝犔犪狋犻狀犃犿犲狉犻犮犪狀犆狅狅狆犲狉犪狋犻狅狀 Thischapter has highlightedthe principalchangesarisinginthe EUs developmentcooperation with Latin America , includingtheadoptionofan internationaldevelopmentandantipovertyagendadominatedbytheMillennium DevelopmentGoals ( MDGs ) .Moreover , ithashighlightedthestrategiesfor achievingthosegoalsinthe middleincomecountries ( MICs ), theincreasing involvementofthelatterindevelopmentcooperationbymeansof “ postliberal regionalism ” policiesandthegrowthof “ SouthSouth ” cooperation , aswellas thenewprinciplesoftheParisDeclarationonAidEffectiveness. Againstthisbackground , EU developmentcooperationoverthepastten yearshaschanged positively and significantlyto adaptitselftothe above requirements , particularlyinitsstrategicorientationtowardsthe Millennium DevelopmentGoalsandpovertyreduction , administrativereform , planningand programming.Ithasalsoadaptedthethree “ Cs ”( coordination , complementarity andcoherence ) andtherationalisationofbudgetinstrumentsandlines. 6 AgreatefforthasbeenmadeintheareaofcooperationwithLatinAmerica toadapttotheabovedemands , notablyintermsofnationalandsubregional programming.Significantchallengesremain , however , partlyduetothechange intheeconomicandpoliticalcycletakingplaceintheregion.Thesechallenges areespeciallyvisibleinregionalcooperation.Throughthestrategydevisedby theEUfor “ strongerpartnership ” andthecommitmentsassumedattheVienna Summitin2006 , EULatinAmericarelationsaremovingtowardsthebuildingof a “ network ” ofassociationagreementsthatwillrequiresignificantchangesinthe yearsto come.Inthiscontext , thefollowing strategiesand proposalsare relevanttoEULatinAmericacooperation: ( 1 ) 犕犪犻狀狋犪犻狀犃犻犱狋狅犔犪狋犻狀犃犿犲狉犻犮犪狀犕犐犆狊 :Developmentcooperationisa ChallengestoEUPoliciesonDevelopmentCooperationwithLatinAmerica 2 33 keyelementofbiregionalrelations , andtheEUsandits memberstates commitmenttotheMillenniumDevelopmentGoalsshouldnotleadtoareduction inaidtotheregion , sincethatwouldhaveanegativeeffectonpovertyand inequalityreduction , theachievementofotherdevelopmentgoals , democratic governanceanditscontributiontotheprovisionofregionalandglobalpublic goods.Thisalso meansplayinganactiveroleinachievinganinternational consensusoncooperationwiththeMICs , asdescribedabove. ( 2 ) 犌狉犲犪狋犲狉犃犻犱犆狅狀犮犲狀狋狉犪狋犻狅狀犻狀犃狉犲犪狊犚犲犾犲狏犪狀狋狋狅狋犺犲犛狆犲犮犻犳犻犮犖犲犲犱狊狅犳 犕犐犆狊 :AccordingtotheEuropeanConsensusonDevelopment , theEU must continuetodirectresourcestowardstheregionslowincomeandlower MIC countries , particularlyintheAndeanareaandCentralAmerica , usingtoolssuch asbudgetsupportthroughnationaldevelopmentandpovertyreductionstrategies. Atthesametime , cooperationwithupperMICsshouldcontinuetofocusonareasin whichitcanbemosteffective , suchas:macroeconomicandinternationalfinancial stability ; institutionalcapacitybuildingand / orpolicydesign , inparticulartomake publicpolicy moreeffectiveandefficient ; taxreformsensuringsustainable redistributivepoliciesandinvestmentsinhumancapital ; policiesforimproving international competitiveness , particularly investment in infrastructure , research , developmentandinnovationsystems ( R + D + I ); andsupportfor socialstakeholderspromotingpolitical , institutionalandlegislativechangesat bothnationalandinternationallevel , andthose withthecapacityto mobilise additionalfunding , suchasmultilateralorsubregionalbanks. ( 3 ) 犐犿狆狉狅狏犻狀犵 犃犻犱 犈犳犳犲犮狋犻狏犲狀犲狊狊 :EU Leadership.Accordingtothe EuropeanConsensusonDevelopment , theEUandtheEuropeanCommissionin particularmusttaketheleadinapplyingtheParisDeclarationandinternational commitmentsonaideffectiveness , whichin Latin Americaareparticularly relevantforlowerMICsandLICs.Improvingcoordinationandcomplementarity withMemberStatesisparticularlyimportant , avoidingtheriskofoverlooking civilsocietystakeholders , whocontinuetoplayanimportantroleinnational developmentagendasanddemocraticgovernance. ( 4 ) 犓犲狔犚狅犾犲狅犳 犃狊狊狅犮犻犪狋犻狅狀 犃犵狉犲犲犿犲狀狋狊 :Whengeneratingdevelopment opportunitiesforMICs , associationagreementscanplayanevenmoreimportant rolethanaidtransfers , sincetheyensureaccesstoexternalmarkets , promote externalinvestmentandfosterinnovationandcompetitiveness.Iftheyareto playapositiveroleindevelopment , however , asymmetriesmustalsobeduly recognisedandthey mustbedesignedtodealwithadjustmentcostsandthe transformationofproductionpatterns , particularlyinthecaseofagreements withtheAndeanCommunityandCentralAmerica. 2 34 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation ( 5 ) 犃狊狊狅犮犻犪狋犻狅狀犃犵狉犲犲犿犲狀狋狊 , 犛狅犮犻犪犾犆狅犺犲狊犻狅狀犪狀犱 犘狅犾犻犮狔 犆狅犺犲狉犲狀犮犲 :As already mentioned , therelationshipbetweensocialcohesionandthefreetrade componentofassociationagreementsraisesasignificantproblemofpolicycoherencefor theEU.Concerningtrade , ensuringthattheseagreementshaveapositiveimpact onsocialcohesionrequirestheappropriatetreatmentofasymmetries , supportfor policiestoimprovecompetitivenessandtheestablishmentofincentivesconnected tolabourandsocialrights , goodgovernanceandtheenvironment. 7 ( 6 ) 犈狀犺犪狀犮犲犱犛狋狉犪狋犲犵狔犛狌狆狆狅狉狋犻狀犵 犚犲犵犻狅狀犪犾犐狀狋犲犵狉犪狋犻狅狀 :Supportfor regionalismandintegrationisakeyelementofthedevelopmentagendaofLatin AmericanMICsbecauseofitspotentialandactualcontributiontodevelopment , employment , competitiveness , governanceandinstitutionalcapacitybuilding , andtotheprovisionofregionalpublicgoods.TheEU mustmaintainthis supportthroughabroaderstrategy , notlimitedtotrade.Itisimportanttobe awareofthechangesoccurringintheregionalintegration “ map ”, particularlyas regards Andean CommunityMercosur convergence , the enlargement of Mercosur and the formation ofthe Union of South American Nations ( UNASUR ) .Cooperationwithsubregionalgroupsmustalsoadapttothe “ post liberal ” integrationagendas , whichgobeyondtradeliberalisationandextendto regionalpoliciesinfieldssuchaspeaceandsecurity , transportandenergy infrastructure , andcrossbordercooperation ; environmentandclimatechange , disasterriskreductionand mitigation ;“ bottomup ” regionalisation bythe formationofregionalcivilsocietynetworksthatcanplayanactiveroleinthe process ; and the correction of regional asymmetries to ensure income convergenceas wellassocialandterritorialcohesion.The new program “ Euroclima ”, launchedatthe2008ViennaSummit , andalsothenew Latin AmericaInvestmentFacility ( LAIF ) couldplayanimportantroleinthesefields. ( 7 ) 犌狉犲犪狋犲狉犃狋狋犲狀狋犻狅狀狋狅犛狅狌狋犺犛狅狌狋犺犆狅狅狆犲狉犪狋犻狅狀犫狔犕犲犪狀狊狅犳犜狉犻犪狀犵狌犾犪狉 犆狅狅狆犲狉犪狋犻狅狀犕犲犮犺犪狀犻狊犿狊 :TheincreaseinSSCconfirmsthegrowingroleofthe moreadvancedLatinAmericancountriesintheregionsintegrationprocessesand development.SuchcooperationprovidesopportunitiesfortheEUintermsofthe following:the mobilisation ofadditionalresources , financial , human and technical ; adaptationtotheregions needs ; greaterinvolvementof Latin Americanstakeholders ; andthestrengtheningoftheinstitutionalcapacitiesof donorsandrecipientsalike.Insomerespects , theregionalprogrammesandtheir methodologyofworkingwith “ networks ” ofdecentralisedstakeholdersmaybe anappropriatebasisforpromotingthistypeofcooperation. ( 8 ) 犐犿狆狉狅狏犲犿犲狀狋狅犳 犕狌狋狌犪犾犓狀狅狑犾犲犱犵犲犪狀犱犛狅犮犻犪犾犘犪狉狋犻犮犻狆犪狋犻狅狀犻狀犅犻 狉犲犵犻狅狀犪犾犚犲犾犪狋犻狅狀狊 :A permanentbiregionalorganisation mustbeestablished ChallengestoEUPoliciesonDevelopmentCooperationwithLatinAmerica 2 35 whoseprioritiesincludeexpandingtheparticipationofthemanystakeholders involvedinbiregionalrelationsand monitoringthebiregionalagenda.This organisation , alreadyproposedasaEuroLatin AmericaFoundation , wouldbea publicprivateinitiative , withtheCommissionandtheEuropeanParliamentplayingan importantroleinitsimplementation , strategicorientationandfunding. ( 9 ) 犆狅犿狆狉犲犺犲狀狊犻狏犲犛狋狉犪狋犲犵狔犳狅狉犆狅狅狆犲狉犪狋犻狅狀犻狀犛犮犻犲狀犮犲犪狀犱犜犲犮犺狀狅犾狅犵狔 : Theincreasingimportanceofresearch , developmentandinnovation ( R + D + I ) forLatinAmericanandCaribbeanMICsrequiresacomprehensivestrategythat encompasses EULatin American / Caribbean ( LAC ) relations as a whole. Politicaldialogue at ministeriallevel has already begun , and significant developmentcooperationinitiativesexist.Itisneverthelessimportanttoensure theconsistency oftechnology transfer commitments adopted within such dialogue , thecurrentdesignoftheassociationagreementsregardingrulesfor protectingintellectualpropertyrightsandtheneedtointroducepoliciesfor improvingcompetitiveness.ThecurrentdispersalofECinstrumentsmustbe correctedinordertoensurethattheyhelptostrengthennationalR + D + I capacities. ( 10 ) 犜狅狑犪狉犱狊犪犈狌狉狅犔犪狋犻狀犃犿犲狉犻犮犪狀犪狀犱犆犪狉犻犫犫犲犪狀 犎犻犵犺犲狉犈犱狌犮犪狋犻狅狀 犃狉犲犪 :ThebuildingofanEULACcommonareaofhighereducationandresearch ispartofthebiregionalagendaofsocialcohesion , regionalintegrationand mutualknowledgeofthe “ strategicpartnership ” .A broad programmeof academicmobilitybetweenthetworegionsmustbedesigned , anditcouldbe basedon existing educationaland researchinstitutionsand networks.Itis thereforeimportanttoensuretheconvergencebetweenaccreditationsystems. Morethanofferingindividualscholarships , thisprogramme mustfosterand developresearchbasedcentresofexcellenceandmustbringmobilityintoboth partiesresearchprojects. Notes 1.Thesenewinstrumentsare:theEuropeanNeighbourhoodandPartnershipInstrument ; the InstrumentforPreAccession Assistance ; and , covering Latin America , theFinancial Instrumentfor Development Cooperation ( DCI ); the FinancialInstrumentforthe PromotionofDemocracyand Human Rights ( whichreplacesthepreviousEuropean InitiativeforDemocracyand HumanRights ); aswellastheInstrumentforStability ( whichreplacesthepreviousRapidReactionMechanism ) .Themostimportant , because ofitscoverageandresources , isthenewDCI. 2. 犐狀狏犲狊狋犻狀犵犻狀狆犲狅狆犾犲 ( socialandhumandevelopment ) withabudgetofEUR1 , 060million ; 狀狅狀狊狋犪狋犲犪犮狋狅狉狊犪狀犱犾狅犮犪犾犪狌狋犺狅狉犻狋犻犲狊犻狀犱犲狏犲犾狅狆犿犲狀狋 ( cofinancingwithNGOsandlocal governments ), withabudgetofEUR 1 , 639 million ; 犲狀狏犻狉狅狀犿犲狀狋犪狀犱狊狌狊狋犪犻狀犪犫犾犲 2 36 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation 犿犪狀犪犵犲犿犲狀狋狅犳狀犪狋狌狉犪犾狉犲狊狅狌狉犮犲狊犻狀犮犾狌犱犻狀犵犲狀犲狉犵狔 , withfundingamountingtoEUR804 million ; 犳狅狅犱狊犲犮狌狉犻狋狔 ( MillenniumDevelopmentGoalsonhungerandmalnutrition ), with abudgetofEUR1 , 709million ; and 犿犻犵狉犪狋犻狅狀犪狀犱犪狊狔犾狌犿 ( managementofmigration flows ), withabudgetofEUR384million. 3.Thispolicydocument , albeitnameda “ strategy ”, isnota “ CommonStrategy ”, themost relevantpolicyplanningdocumentintheframeworkoftheEuropeanCommonForeignand SecurityPolicy ( ECFSP ) .Sofar , therehavebeenonlythreeCommonStrategies:forthe Mediterraneanregion , RussiaandUkraine. 4.TheyincludeCommissionCommunicationstotheCouncilandtheEuropeanParliament definingEuropeanCommunitypolicytowardsLatinAmerica , andarethereforepartofthe Communitysdecisionmakingprocess.Inaddition , thereareprogrammingdocumentsfor developmentcooperationcalledRegionalandSubregionalStrategyPapers ( RSPs ) and CountryStrategy Papers ( CSPs ) .Infact , theexistence ofacoherentprogramming frameworkisrelativelyrecent.Theperiod20072013isthefirstin whichthese programmingframeworks have been fully set out. The two latest Commission Communicationssettingpoliticalprioritieswerepublishedin2005and2009 ( European Commission2005a , 2005b , 2009 ) . 5.Thesumisslightlyhigherthan100percentbecauseofroundingup. 6.Thesechanges have been recognised bythe Development Assistance Committees evaluationofECcooperation ( DevelopmentAssistanceCommittee2007 ) . 7.SomeoftheseincentiveswerealreadybuiltoninthetradepreferencesoftheGSPplus , coveringbothregionalgroupings. References Alonso , JoséA. ( 2006 ), AméricaLatina:lastrampasdelprogreso , in:C.FreresandJosé AntonioSanahuja ( eds. ), 犃犿é狉犻犮犪犔犪狋犻狀犪狔犾犪犝狀犻ó狀犈狌狉狅狆犲犪牶犲狊狋狉犪狋犲犵犻犪狊狆犪狉犪狌狀犪 犪狊狅犮犻犪犮犻ó狀狀犲犮犲狊犪狉犻犪 , Barcelona:Icaria / ICEI , 323343. Alonso , JoséA. ( ed. )( 2007a ), 犆狅狅狆犲狉犪犮犻ó狀犮狅狀狆犪í狊犲狊犱犲狉犲狀狋犪犻狀狋犲狉犿犲犱犻犪 , Madrid: EditorialComplutense / InstitutoComplutensedeEstudiosInternacionales. Alonso , JoséA.andJoséA.Sanahuja ( 2006 ), Unmundoentransformación:repensarla agendadedesarrollo , in: 犔犪狉犲犪犾犻犱犪犱犱犲犾犪犪狔狌犱犪20062007 , Barcelona:Intermón Oxfam , 179204. Arenal , Celestinodel ( 2009 ), 犔犪狊狉犲犾犪犮犻狅狀犲狊犲狀狋狉犲犾犪犝犈狔犃犿é狉犻犮犪犔犪狋犻狀犪 : 犃犫犪狀犱狅狀狅犱犲犾 狉犲犵犻狅狀犪犾犻狊犿狅狔犪狆狌犲狊狋犪狆狅狉狌狀犪狀狌犲狏犪犲狊狋狉犪狋犲犵犻犪犱犲犮犪狉犮狋犲狉犫犻犾犪狋犲狉犪犾犻狊狋犪 ? , Madrid: RealInstitutoElcano , DocumentodeTrabajoDT36 / 2009. Ayuso , Anna ( 2006 ), 犃狀犾犻狊犻狊犱犲狏犻犪犫犻犾犻犱犪犱犱犲犾犉狅狀犱狅犱犲犛狅犾犻犱犪狉犻犱犪犱犅犻狉狉犲犵犻狅狀犪犾犝狀犻ó狀 犈狌狉狅狆犲犪犃犿é狉犻犮犪犔犪狋犻狀犪狆狉狅狆狌犲狊狋狅狆狅狉犲犾犘犪狉犾犪犿犲狀狋狅犈狌狉狅狆犲狅 , Brussels:European Parliament , DGExternalPoliciesoftheUnion , 26February. CounciloftheEuropean Union ( 1994 ), 犇狅犮狌犿犲狀狋狅犫狊犻犮狅狊狅犫狉犲犾犪狊狉犲犾犪犮犻狅狀犲狊犱犲犾犪犝狀犻ó狀 犈狌狉狅狆犲犪犮狅狀犃犿é狉犻犮犪犔犪狋犻狀犪狔犲犾犆犪狉犻犫犲 ( adoptedbytheCounciloftheEuropeanUnion on31October ), Madrid:InstituteforEuroLatinAmericanRelations ( IRELA ) . DevelopmentAssistanceCommittee ( 2007 ), 犈狌狉狅狆犲犪狀犆狅犿犿狌狀犻狋狔 犇犃犆 犘犲犲狉犚犲狏犻犲狑 , ChallengestoEUPoliciesonDevelopmentCooperationwithLatinAmerica 2 37 Paris:OECD. DevelopmentAssistanceCommittee ( 2010 ), 犃犻犱犪狋犪 犌犾犪狀犮犲 . 犛狋犪狋犻狊狋犻犮狊犫狔 犚犲犵犻狅狀2010 犈犱犻狋犻狅狀 , Paris:OECD , online:www.oecd.org / dac. DevelopmentResearchersNetwork ( 2004 ), 犈狏犪犾狌犪犮犻ó狀犱犲犾犪狆狅狔狅犱犲犾犪犆犈犪犾犕犲狉犮犪犱狅 犆狅犿ú狀犱犲犾犛狌狉 ( 犕犲狉犮狅狊狌狉 ), Brussels:DevelopmentResearchersNetwork ( DRN )/ ComisiónEuropea / Europeaid , 3 , May. DevelopmentResearchersNetwork ( 2005 ), 犈狏犪犾狌犪犮犻ó狀犱犲犾犪犲狊狋狉犪狋犲犵犻犪狉犲犵犻狅狀犪犾犱犲犾犪犆犈犲狀 犃犿é狉犻犮犪犔犪狋犻狀犪 . 犈狏犪犾狌犪犮犻ó狀狆犪狉犪犾犪犆狅犿犻狊犻ó狀犈狌狉狅狆犲犪 , 犐狀犳狅狉犿犲犱犲狊í狀狋犲狊犻狊 , Brussels: DevelopmentResearchersNetwork ( DRN )/ ComisiónEuropea / Europeaid , 3 , July. DevelopmentResearchersNetwork ( 2007 ), 犈狏犪犾狌犪犮犻ó狀犱犲犾犪犲狊狋狉犪狋犲犵犻犪狉犲犵犻狅狀犪犾犱犲犾犪犆犈犲狀 犃犿é狉犻犮犪犆犲狀狋狉犪犾 . 犈狏犪犾狌犪犮犻ó狀 狆犪狉犪犾犪 犆狅犿犻狊犻ó狀 犈狌狉狅狆犲犪 , 犐狀犳狅狉犿犲犱犲狊í狀狋犲狊犻狊 , Brussels:DevelopmentResearchersNetwork ( DRN )/ ComisiónEuropea / Europeaid , 2 , October. 犈犮狅狀狅犿犻狊狋 ( 2005 ), TheUNs Millennium DevelopmentGoals.Aspirationsand Obligations , 8 September. 犈犮狅狀狅犿犻狊狋 ( 2010 ), BrazilsForeignAidProgramme:SpeakSoftlyandCarryaBlankCheque , 15July. EuropeanCommission ( 1995a ), 犜犺犲犈狌狉狅狆犲犪狀犝狀犻狅狀犪狀犱犔犪狋犻狀犃犿犲狉犻犮犪 : 犜犺犲犘狉犲狊犲狀狋犛犻狋狌犪狋犻狅狀 犪狀犱犘狉狅狊狆犲犮狋狊犳狅狉犆犾狅狊犲狉犘犪狉狋狀犲狉狊犺犻狆19962000 . 犆狅犿犿狌狀犻犮犪狋犻狅狀犳狉狅犿狋犺犲犆狅犿犿犻狊狊犻狅狀狋狅狋犺犲 犆狅狌狀犮犻犾犪狀犱狋犺犲犈狌狉狅狆犲犪狀犘犪狉犾犻犪犿犲狀狋 , Brussels:COM ( 95 ) 495 , 23October. EuropeanCommission ( 1995b ), 犈狌狉狅狆犲犪狀犆狅犿犿狌狀犻狋狔犛狌狆狆狅狉狋犳狅狉犚犲犵犻狅狀犪犾犈犮狅狀狅犿犻犮 犐狀狋犲犵狉犪狋犻狅狀 犈犳犳狅狉狋狊 犪犿狅狀犵 犇犲狏犲犾狅狆犻狀犵 犆狅狌狀狋狉犻犲狊 . 犆狅犿犿狌狀犻犮犪狋犻狅狀 犳狉狅犿 狋犺犲 犆狅犿犿犻狊狊犻狅狀 , Brussels:COM ( 95 ) 219final , 16June. EuropeanCommission ( 1999 ), 犆狅犿犿狌狀犻犮犪狋犻狅狀犳狉狅犿狋犺犲犆狅犿犿犻狊狊犻狅狀狅狀犪 犖犲狑 犈狌狉狅狆犲犪狀 犝狀犻狅狀犔犪狋犻狀犃犿犲狉犻犮犪犘犪狉狋狀犲狉狊犺犻狆狅狀狋犺犲犈狏犲狅犳狋犺犲21狊狋犆犲狀狋狌狉狔 , Brussels:COM ( 99 ) 105 , 9March. EuropeanCommission ( 2000 ), 犆狅犿犿狌狀犻犮犪狋犻狅狀犳狉狅犿狋犺犲犆狅犿犿犻狊狊犻狅狀狋狅狋犺犲犆狅狌狀犮犻犾犪狀犱狋犺犲 犈狌狉狅狆犲犪狀犘犪狉犾犻犪犿犲狀狋 . 犉狅犾犾狅狑狌狆狋狅狋犺犲 犉犻狉狊狋犛狌犿犿犻狋犫犲狋狑犲犲狀 犔犪狋犻狀 犃犿犲狉犻犮犪 , 狋犺犲 犆犪狉犻犫犫犲犪狀犪狀犱狋犺犲犈狌狉狅狆犲犪狀犝狀犻狅狀 , Brussels:COM ( 2000 ) 670 , 31October. EuropeanCommission ( 2001 ), 犕犲犪狊狌狉犲狊犜犪犽犲狀犪狀犱狋狅犅犲犜犪犽犲狀犫狔狋犺犲犆狅犿犿犻狊狊犻狅狀狋狅 犃犱犱狉犲狊狊狋犺犲 犘狅狏犲狉狋狔 犚犲犱狌犮狋犻狅狀 犗犫犼犲犮狋犻狏犲狅犳 犈犆 犇犲狏犲犾狅狆犿犲狀狋 犘狅犾犻犮狔 , Brussels: CommissionStaffWorkingPaper , SEC ( 2001 ) 1317 , 26June. EuropeanCommission ( 2002 ), 犔犪狋犻狀犃犿犲狉犻犮犪犚犲犵犻狅狀犪犾犛狋狉犪狋犲犵狔 犇狅犮狌犿犲狀狋 . 20022006 犘狉狅犵狉犪犿犿犻狀犵 , Brussels:AIDCO / 0021 / 2002 , April. EuropeanCommission ( 2004 ), 犆狅犿犿狌狀犻犮犪狋犻狅狀犳狉狅犿狋犺犲犆狅犿犿犻狊狊犻狅狀狋狅狋犺犲犆狅狌狀犮犻犾犪狀犱狋犺犲 犈狌狉狅狆犲犪狀犘犪狉犾犻犪犿犲狀狋狅狀狋犺犲 犆狅犿犿犻狊狊犻狅狀狊 犗犫犼犲犮狋犻狏犲狊 , 犻狀狋犺犲 犉狉犪犿犲狑狅狉犽狅犳狋犺犲 犚犲犾犪狋犻狅狀狊犫犲狋狑犲犲狀狋犺犲犈狌狉狅狆犲犪狀犝狀犻狅狀犪狀犱犔犪狋犻狀犃犿犲狉犻犮犪 , 犻狀犞犻犲狑狅犳狋犺犲3狉犱犛狌犿犿犻狋 狅犳犎犲犪犱狊狅犳犛狋犪狋犲犪狀犱犌狅狏犲狉狀犿犲狀狋狅犳狋犺犲犈狌狉狅狆犲犪狀犝狀犻狅狀犪狀犱犔犪狋犻狀犃犿犲狉犻犮犪犪狀犱狋犺犲 犆犪狉犻犫犫犲犪狀狋狅犫犲犎犲犾犱犻狀犌狌犪犱犪犾犪犼犪狉犪 ( 犕犲狓犻犮狅 ) 狅狀28 犕犪狔2004 , Brussels:COM ( 2004 ) 220final , 7April. EuropeanCommission ( 2005a ), 犆狅犿犿狌狀犻犮犪狋犻狅狀犳狉狅犿狋犺犲犆狅犿犿犻狊狊犻狅狀狋狅狋犺犲犆狅狌狀犮犻犾犪狀犱狋犺犲 犈狌狉狅狆犲犪狀 犘犪狉犾犻犪犿犲狀狋 . 犃犮犮犲犾犲狉犪狋犻狀犵 犘狉狅犵狉犲狊狊狋狅狑犪狉犱狊 犃狋狋犪犻狀犻狀犵 狋犺犲 犕犻犾犾犲狀狀犻狌犿 2 38 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation 犇犲狏犲犾狅狆犿犲狀狋犌狅犪犾狊 — 犉犻狀犪狀犮犻狀犵犳狅狉犇犲狏犲犾狅狆犿犲狀狋犪狀犱 犃犻犱 犈犳犳犲犮狋犻狏犲狀犲狊狊 , Brussels: COM ( 2005 ) 133final , SEC453 , 454 , 12March. EuropeanCommission ( 2005b ), 犆狅犿犿狌狀犻犮犪狋犻狅狀犳狉狅犿狋犺犲犆狅犿犿犻狊狊犻狅狀狋狅狋犺犲犆狅狌狀犮犻犾犪狀犱狋犺犲 犈狌狉狅狆犲犪狀犘犪狉犾犻犪犿犲狀狋 . 犃犛狋狉狅狀犵犲狉犘犪狉狋狀犲狉狊犺犻狆犫犲狋狑犲犲狀狋犺犲犈狌狉狅狆犲犪狀犝狀犻狅狀犪狀犱犔犪狋犻狀 犃犿犲狉犻犮犪 , Brussels:COM ( 2005 ) 636final , 8December. EuropeanCommission ( 2007 ), 犔犪狋犻狀犃犿犲狉犻犮犪 . 犚犲犵犻狅狀犪犾犘狉狅犵狉犪犿犿犻狀犵 犇狅犮狌犿犲狀狋2007 2013 , Brussels:E / 2007 / 1417 , 12July. EuropeanCommission ( 2009 ), 犜犺犲犈狌狉狅狆犲犪狀犝狀犻狅狀犪狀犱犔犪狋犻狀犃犿犲狉犻犮犪 : 犌犾狅犫犪犾犘犾犪狔犲狉狊犻狀 犘犪狉狋狀犲狉狊犺犻狆 . CommunicationfromtheCommissiontotheEuropeanParliamentandthe Council , Brussels:COM ( 2009 ) 495 / 3 , 30September. EuropeanParliament ( 2001 ), 犚犲狆狅狉狋狅狀犪犌犾狅犫犪犾犘犪狉狋狀犲狉狊犺犻狆犪狀犱犪犆狅犿犿狅狀犛狋狉犪狋犲犵狔犳狅狉 犚犲犾犪狋犻狅狀狊犫犲狋狑犲犲狀狋犺犲 犈狌狉狅狆犲犪狀 犝狀犻狅狀 犪狀犱 犔犪狋犻狀 犃犿犲狉犻犮犪 , 2000 / 2249 ( INI ), CommitteeonForeignAffairs , HumanRights , SecurityandDefence , ponente:JoséI. Salafranca , 11October2001 ( A50336 / 2001 ) . EuropeanParliament ( 2006 ), 犚犲狆狅狉狋狅狀犈狀犺犪狀犮犲犱犆狅狅狆犲狉犪狋犻狅狀犫犲狋狑犲犲狀狋犺犲犈狌狉狅狆犲犪狀犝狀犻狅狀 犪狀犱犔犪狋犻狀犃犿犲狉犻犮犪 ,( 2005 / 2241 ( INI ), CommitteeonForeignAffairs , HumanRights , SecurityandDefence , ponente:JoséI.Salafranca , 13March2006 ( A60047 / 2006 ) . EuropeanUnion ( 2006 ), 犑狅犻狀狋犇犲犮犾犪狉犪狋犻狅狀犫狔狋犺犲犆狅狌狀犮犻犾犪狀犱狋犺犲犚犲狆狉犲狊犲狀狋犪狋犻狏犲狊狅犳狋犺犲 犌狅狏犲狉狀犿犲狀狋狊狅犳 狋犺犲 犕犲犿犫犲狉 犛狋犪狋犲狊 犕犲犲狋犻狀犵 狑犻狋犺犻狀狋犺犲 犆狅狌狀犮犻犾 , 狋犺犲 犈狌狉狅狆犲犪狀 犘犪狉犾犻犪犿犲狀狋犪狀犱狋犺犲犆狅犿犿犻狊狊犻狅狀狅狀狋犺犲 犇犲狏犲犾狅狆犿犲狀狋犘狅犾犻犮狔狅犳狋犺犲 犈狌狉狅狆犲犪狀 犝狀犻狅狀 犈狀狋犻狋犾犲犱 “ 犜犺犲犈狌狉狅狆犲犪狀犆狅狀狊犲狀狊狌狊 ”, OfficialJournalC46 , 24February. Freres , ChristianandJosé A.Sanahuja ( eds. )( 2006 ), 犃犿é狉犻犮犪犔犪狋犻狀犪狔犾犪 犝狀犻ó狀 犈狌狉狅狆犲犪 : 犲狊狋狉犪狋犲犵犻犪狊 狆犪狉犪 狌狀犪 犪狊狅犮犻犪犮犻ó狀 狀犲犮犲狊犪狉犻犪 , Barcelona:Icaria / Instituto ComplutensedeEstudiosInternacionales ( ICEI ) . MottaVeiga , PedrodaandSandraRíos ( 2007 ), 犗犚犲犵犻狅狀犪犾狊犿狅狆ó狊犾犻犫犲狉犪犾狀犪犃犿é狉犻犮犪犱狅 犛狌犾 : 狅狉犻犵犲狀狊 , 犻狀犻犮犻犪狋犻狏犪狊犲犱犻犾犲犿犪狊 , Santiagode Chile:CEPAL , seriecomercio internacional , 62 , July , LC / L2776P. Sanahuja , JoséA. ( 2007 ), Msymejorayuda ? LaDeclaracióndeParísylastendenciasen lacooperaciónaldesarrollo , in:ManuelaMesa ( ed. ), 犌狌犲狉狉犪狔犮狅狀犳犾犻犮狋狅狊犲狀犲犾犛犻犵犾狅 犡犡犐 : 犜犲狀犱犲狀犮犻犪狊犵犾狅犫犪犾犲狊 . 犃狀狌犪狉犻狅20072008犱犲犾犆犲狀狋狉狅犱犲犈犱狌犮犪犮犻ó狀犲犐狀狏犲狊狋犻犵犪犮犻ó狀 狆犪狉犪犾犪犘犪狕 ( 犆犈犐犘犃犣 ), Madrid:CEIPAZ , 71101. Sanahuja , JoséA. ( 2008 ), 犜犺犲犈犳犳犲犮狋犻狏犲狀犲狊狊狅犳犈狌狉狅狆犲犪狀犝狀犻狅狀犇犲狏犲犾狅狆犿犲狀狋犆狅狅狆犲狉犪狋犻狅狀 狑犻狋犺犔犪狋犻狀犃犿犲狉犻犮犪 : 犃狊狊犲狊狊犿犲狀狋犪狀犱犘犲狉狊狆犲犮狋犻狏犲狊 , briefingpaper , documentEXPO / B / AFET / 2007 / 48EN. Sanahuja , JoséA. ( 2009 ), LaUniónEuropeayAméricaLatina:laagendacomúntraslaCumbre deLima , in:VVAA , 犞犆狌犿犫狉犲犝狀犻ó狀犈狌狉狅狆犲犪犃犿é狉犻犮犪犔犪狋犻狀犪狔犲犾犆犪狉犻犫犲 , 犔犻犿犪2008 . 犈狏犪犾狌犪犮犻ó狀 , 犱犲狊犪犳í狅狊狔 狆狉狅狆狌犲狊狋犪狊 , Santiago de Chile:Centro Latinoamericano de RelacionesconEuropa ( CELARE ), 195207. Sanahuja , JoséA. ( 2010a ), Laconstruccióndeunaregión.Suraméricayelregionalismo postliberal , in:ManuelCienfuegosandJoséAntonioSanahuja ( eds. ), 犔犪犮狅狀狊狋狉狌犮犮犻ó狀犱犲 狌狀犪狉犲犵犻ó狀 . 犝犖犃犛犝犚狔犾犪犻狀狋犲犵狉犪犮犻ó狀犲狀犃犿é狉犻犮犪犱犲犾犛狌狉 , Barcelona:CIDOB , 87134. Sanahuja , JoséA. ( 2010b ), RegionalLeadershipsandPostliberalRegionalism:SouthSouth ChallengestoEUPoliciesonDevelopmentCooperationwithLatinAmerica 2 39 CooperationinLatinAmericaandtheCaribbean , in: 犘狅狏犲狉狋狔犻狀犉狅犮狌狊 , 20 , Brasilia , IPCUNDP , 1719. Xalma , Cristina ( 2007 ), 犐狀犳狅狉犿犲狊狅犫狉犲犮狅狅狆犲狉犪犮犻ó狀犲狀犐犫犲狉狅犪犿é狉犻犮犪 , Madrid:Secretaría GeneralIberoamericana ( SEGIB ) . Xalma , Cristina ( 2008 ), 犐犐犐狀犳狅狉犿犲狊狅犫狉犲犮狅狅狆犲狉犪犮犻ó狀犛狌狉犛狌狉犲狀犐犫犲狉狅犪犿é狉犻犮犪 .Madrid: SecretaríaGeneralIberoamericana ( SEGIB ) . 2 40 犆犺犪狆狋犲狉3 犃犖犲狑犈狉犪犳狅狉犆犺犻狀犪犔犪狋犻狀犃犿犲狉犻犮犪狀犚犲犾犪狋犻狅狀狊牶 犕狅狉犲犗狆狆狅狉狋狌狀犻狋犻犲狊狋犺犪狀犆犺犪犾犾犲狀犵犲狊 1.犐狀狋狉狅犱狌犮狋犻狅狀 Separated bythe Pacific Ocean andculturaldifferences , hitherto Latin AmericaandChinahavehadlittleknowledgeofoneanotherandonlylooseties. Inanincreasinglyglobalworld , however , thedistanceseemstoberapidly diminishingandtransPacificcountriesarebecominggoodneighbours.Chinas integrationintotheworldeconomyistransformingitfromaregionalplayerinto anemergingglobalplayer.Latin Americaandotherdevelopingregionsare becomingnew forefrontsof Chinas globalreach.GeneralBantz Craddock , formerheadoftheUSSouthernCommand , hassaidthatChinasinfluencein LatinAmericaisanemergingdynamicthatcannotbeignored ( Bachelet2005 ) . Withtheirincreasingeconomicanddiplomaticindependence , countriesinLatin Americahavealsoexpandedtheirrelationswithoutsiders , includingChinaand India.ManypeopleinLatinAmericalooktoChinaasaneconomicandpolitical alternativetoUShegemony ( Hakim2006 ) .Inthecourseofglobalisation , China andLatinAmericahavebecomeclosepartners. Thisbilateralrelationshiphaswitnessedrapidgrowthintradevolume , but alsoinculturalexchangesandpoliticalinteractionoverthepastdecade.The bilateraltradevolumeincreasedfromjustUSD12.2billionin2000toUSD102 billionin2007 ( ChineseMinistryofCommerce2007 ) .Attheregionallevel , Chinahasbeeninvolvedinthemostimportantregionalinstitutionsaseitherfull memberorobserver.Chinascontributiontoregionalinfrastructureandother publicgoodsishighlyvaluedbyLatinAmericancountries.Chinaissuedapolicy paperonLatinAmericaandtheCaribbeanon16November2008 , afterissuing papersontheEUandAfrica ( ChineseGovernment2008 ) .Atthegloballevel , ANewEraforChinaLatinAmericanRelations:MoreOpportunitiesthanChallenges 2 41 bothsidesareworkingtogethertopromotereformofthecurrentinternational systemandeffectivegovernanceonglobalissues.Therelationshipbetween Braziland Chinahasbeenthe modelforSouthSouthcooperationandhas increasingglobalimplications. Asanewcomerandanemergingglobalplayer , Chinaalsofacesspecial challengesin Latin America.Issuessuch astradecompetition , Taiwan , development models and geopoliticalfactors complicate bilateralrelations significantly.How thesechallengesaredealt with willbecrucialinthe developmentoffutureSinoLatinAmericanrelations. 2.犆犺犻狀犪狊犔犪狋犻狀犔犲犪狆犉狅狉狑犪狉犱 Chinas30yearsofgrowthhavebeenheavilyreliantonforeigninvestments andoverseasmarkets , whichhavehelpedittobecomeanactiveinternational player.Motivatedprimarilybyitseconomicdevelopment , theeconomiclinkages betweenChinaand Latin Americahavebecome muchstronger.Chinahas improveditsrelationswithAfricaandLatinAmericagreatlysincetheendofthe Cold War.Whiletheserelationshave mainlyinvolvedeconomicactivities , a comprehensiveengagementisdevelopingatvariouslevels.Itisfairtosaythat SinoLatinAmericanrelationshaveenteredanewphase. 2.1 ComprehensiveBilateralCooperation In2004 , PresidentHuJintaooutlinedthreeobjectivesinthedevelopmentof SinoLatin Americanrelations:first , supportingeach otherpoliticallyand buildinganallroundfriendship ; second , complementingeachothereconomically andbuildinga mutuallybeneficial , winwinpartnershiponanew basis ; and third , enhancingculturalexchangesandservingasamodelfordialoguebetween differentcivilisations ( Hu2004 ) .WhatChinaispursuingisacomprehensive relationshipwithLatinAmerica. Inthepoliticalsphere , ChinaandmanyLatinAmericancountriesmaintain closetiesandconsiderablepoliticaltrust.Therehavebeenunprecedentedand intensivehighlevelofficialvisitsbyChinatoLatin Americaoverthepast decade.Regularcommunicationsbetweenparliamentswereestablishedbetween ChinaandBrazil , aswellasbetweenChinaandChile.Suchpoliticalvisitshavenot onlyenhancedbilateralpoliticaltrustbuthavealsopromotedeconomiccooperation. ChinahasestablishedstrategicpartnershipswithBrazil , Argentina , Mexico , VenezuelaandPeru.Allpartnerssharethevisionofamultipolarworldorder. Amongthem , Brazilisaccordedspecialimportance:PresidentHucalledthe bilateralrelationshiponeofglobalinfluencewhenhemetwithhiscounterpart 2 42 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation PresidentLuladuringtheG20LondonSummitinApril2009.Besidesthesebig countries , Chinaalsovaluesitsrelationswithsmallerones , suchasCostaRica , inalongtermperspective. Intheeconomicarena , bilateralcooperationhasbeenwinwin.Chinahas emergedasthesecondbiggesttrading partnerof Latin Americaandthe Caribbean.Inhis2004visittoLatinAmerica , PresidentHuJintaocommitted ChinatoattainingUSD100billioninbilateraltradevolumeby2010:however , thefigurewassurpassedasearlyas2007 , whichshowsthegreatpotentialof bilateraltrade ( Zhou Wenzhong2009 ) .ChinasurpassedtheUSAasBrazils largesttradepartnerin2009 ( Xinhuanet2009 ) .TheBilateralFree Trade Agreement ( FTA ) with Chileisworking well , andsimilarFTA negotiations withCostaRicaandPeruaresettobeconcluded.Chinaisthemostfrequent userofthePanamaCanalaftertheUSAandJapan.Chinasdirectinvestmentin LatinAmericatotalled USD24.8billionin2008 ( Moxley2010 ) .Chinas investmentintheexplorationofBrazilsnewfounddeepseaoilfieldisamore recentexample of winwin cooperation.Financialcooperation hasalso gained momentuminrecentyears.Againstthebackgroundofthecurrentinternational financialcrisis , ChinasboomingeconomicrelationshipwithLatinAmericasendsouta hopefulmessagetothecurrentlyunbalancedandvulnerableworldeconomy. Intheculturalarena , bothsidesvaluethedevelopmentofpeopletopeople links.Bilateraltourism andculturalexchangehavebeenpromotedbythe Chinesegovernmentaspartofpublicdiplomacy.Chinahasdesignatedmorethan 16countriesintheregionasapproveddestinationsforChinesecitizenstotravel astourists.ConfuciusInstitutesandlanguageandculturalinstituteshavebeen establishedatselecteduniversitiesacrosstheregion.Learning Mandarinis becomingincreasinglypopularinLatin America , notleastforthebusiness opportunitiesitbringswithit ( Forero2006 ) .Networksofinformalsummitsand meetings , eitherinChinaorinLatinAmerica , havebeenestablishedtobring opinionformerstogether ( Kurlantzick2006 ) .Chinasdevelopmentexperiences andvisionsofpeacefuldevelopmentandaharmoniousworldhaveaverystrong culturaland historicalbackground.Butto understandthem properly , an adequateknowledgeofChinesecultureisrequired.Suchpersonallinkages , includingbilateralexchangesbetweenacademiaandthinktanks , areplayinga positiveroleindeepeningmutualunderstanding. 2.2 InstitutionalisingRegionalInvolvement Withdeepeningandbroadeningcooperation , increasingimportanceisbeing giventoregionalinstitutions.Institutionaliseddialoguethroughvariouschannels ANewEraforChinaLatinAmericanRelations:MoreOpportunitiesthanChallenges 2 43 hasbeenestablishedbetweenLatinAmericaandChina , whilesimilarbilateral channelsbetweentheEUandLatinAmericaarelacking.Amongthemthemost notableareChinasbecomingapermanentobserverattheOrganizationofAmerican States ( OAS ) in2004andamemberoftheInterAmericanDevelopmentBank ( IDB ) in 2009.Inaddition , ChinaisanobserverattheLatinAmericanParliamentandhas tieswiththe Rio Group , the Andean Communityand Caricom , as wellas Mercosur.Obviously , strongsupportfromthe majorityofLatin American countriesisthekeytoChinasinvolvementintheseinstitutionalplatforms. Chinaattachesconsiderableimportancetothisinstitutionalcooperation. TheChineseleadershipseesjoiningmultilateralgroupsasawayofreducing possibleapprehensionofChinaandalsoasaplatformforinstitutionalisedand predictableinteractions.Chinabecamethefortyeighth memberoftheInter AmericanDevelopmentBank ( IDB ) in2009 , thethirdfromEastAsia , following JapanandSouth Korea.Zhou Xiaochuan , governorofthePeoplesBankof China , highly praised theIDBs effortsto reduce poverty and promote developmentintheregionandsaidthattheIDBhasbecome “ themostimportant platform ” forChinascollaborationwiththisregionwhenheparticipatedinthe annualgovernorsassemblyoftheIDBheldinMedellinin2009 ( ZhouXiaochuan 2009 ) .ChinasfinancialcommunityisreadytoexpandcooperationwithLatin AmericafollowingChinasjoiningofIDB.Chinahascontributed USD350 millionthroughtheIDBtofundinitiativestohelpLatinAmericancountriescope withthecurrentglobaleconomicslowdown ( IDB2009 ) . 2.3 CooperationonaGlobalAgenda ChinahighlyvaluesLatinAmericasoverallimportanceintheinternational system.In1988 , MrDengXiaopinghadtheforesighttostatethatthetwenty firstcenturyshouldbethecenturyofboththePacificandLatinAmerica.Latin AmericaenjoysamuchhigherstatusinChinasforeignstrategythanasaraw materialssupplier , assomeobserversbelieve.ChinaseesLatinAmericaasan importantpartnerindealing withglobalissuesandreformingthecurrent internationalsystem. Buildingaprosperousdomesticeconomyinaglobalisingworldisacommon taskforbothChinaandLatinAmericancountries.Indoingso , bothsidesshould seektomaketheestablishedinternationaleconomicsystemmorereasonableand favourablefordevelopingcountries.Thecurrentworldrecessionhasmadeit clearthateventhe USAisvulnerabletothelimitationsoftheinternational financialsystem , while mostdevelopingcountriesaresurelyina weaker position.LearninglessonsfromtheAsianfinancialcrisisin1997 , mostLatin 2 44 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation Americaneconomies haveaccumulated sizeableforeign exchangereserves , makingthemstrongerandsaferinthecurrentsituation.Evenso , a more responsibleandaccountableUScurrencypolicyisnecessarytomaintainthevalue oftheirforeignexchangereserves.Inthisconnection , ChinaandLatinAmerican countriesshould join hands to make the currentinternationalfinancial architecturegraduallymoreaccountable. Institutionalcooperationisincreasingbetweenemergingpowers , including ChinaanditsLatinAmericancounterparts.BrazilandChinaarekeymembersof theemerging G / O5 1 , BRIC andthe G20.Mexico , a memberofthe North AmericanFreeTradeAgreement ( NAFTA ) andtheOrganisationforEconomic CooperationandDevelopment ( OECD ), playsanimportantroleincoordinating relationsbetweentheG5andtheG8.Argentinaalsoplaysavisibleroleinthe increasinglyimportantG20.Cooperationofthiskindcancultivatesharedvisions ofafutureinternationalsystemandenhancemutualpoliticaltrustandcommon interests.Both Chinaand Latin Americanemergingpowersneedtoenhance cooperationindealingwithglobalissuessuchasclimatechange , energysecurity andDoharoundnegotiations.TransregionalarrangementssuchasAPECandthe ForumforEastAsiaLatinAmericaCooperation ( FEALAC ) alsohavetheir function.Chinaalso worksthrough UN peacekeeping missionstofacilitate regionalstability , andbothChinaandBrazilhaveamajorsayinimplementing UNtasksinHaiti. 3.犆犺犪犾犾犲狀犵犲狊犻狀犆狌狉狉犲狀狋犛犻狀狅犔犪狋犻狀犃犿犲狉犻犮犪狀犚犲犾犪狋犻狅狀狊 Theleapforwardinthisrelationshipdoesnotmeanthattheroadwillalways besmooth.Halfthecountrieswhichhave “ diplomatic ” relationswithTaiwanare locatedinLatinAmerica.Thewinwinstrategymustalsosurvivethetestof tradedeficitsandeconomiccompetition.Asanewcomerin Latin America comparedtotheWesterncountries , Chinamustpayattentiontotheconcernsof theUSAandtheEU , butalsoavoidthemistakesthattheUSAandtheEUhave made. Trade competition , the Taiwan issue , development models and geopoliticalfactorsareissueswhichcouldhaveasignificantinfluenceonfuture SinoLatinAmericanrelations. 3.1 SharedGainsandAsymmetricHopes Theboomingeconomiccooperationhasgeneratedsharedandmutualgains forChinaandLatinAmerica.Atthesametime , reactionsdifferacrossLatin Americaandthereareevenhigherexpectationsinsomecountries.Feelingswith regardtoChinasgrowingpresenceintheregionaremixed.WhilemostSouth ANewEraforChinaLatinAmericanRelations:MoreOpportunitiesthanChallenges 2 45 Americancountriessee Chinaasa majorpotentialpartnerfornew tradeand investments , MexicoandmostoftheCentralAmericanandCaribbeancountriessee Chinamoreasacompetitor , enteringthe US marketwithsimilarlabourintensive products.BlamefortheprivatesectorspoorperformanceinsomeLatinAmerican countriesoftenfallsonthegrowingpresenceofChinainworldmarkets ( Lederman , OlarregaandPerry2009 ) .SomethoughtthatbygrantingChinafreemarketstatus theywouldautomaticallygainmoretradeandinvestments ( Wu2007 ) .Furthermore , ChinahasoftenencounteredsevereantidumpingmeasuresinsomeLatinAmerican countrieswhichofferedChinafreemarketstatus.Thesedifficultiessuggestthatboth sidesfacetheurgenttaskofthinkingofmoreeffectivewaysofmaintainingthe momentumofbilateraleconomiccooperation. Despitecompetitivepressures , Chinasrapidgrowthshouldbeseenasan opportunity , which hasactually been helping regionaleconomies , notonly becauseoftherapid growthin purchasing power , butalso because ofthe growingforeigndirectinvestment ( FDI ) andfinancialflows.Inthepastdecade , South Americancountries withacomparativeadvantageincommoditieshave benefitedalotfrom Chinasgrowingdemandforoilandothercommodities. LatinAmericarankssecondasarecipientofChineseFDI , whichhasgonemainly intoenergy , commoditiesandinfrastructure.Ithasgreatpotentialforexpansion toothersectors , suchasmanufacturing , however.Innovationcooperationin scienceandtechnologyhasbeenheavilypromoted — forexample , thecooperation betweenChinaandBrazilonsatelliteprojects.Chinaspotentialforbecomingan importantsourceoffinancingforLatinAmericaisconsiderable.Argentinahas alreadysignedacurrencyswapdealtotallingaboutRMB70billionwithChinain April2009 , makingitthebiggestfinancialdealin both Chineseand Latin Americanhistory ( Turner2009 ) .Withitssizableforeigncurrencyreservesand increasinglyactiveprivatesector , Chinawillbeoneofthetopcreditornations withglobalreach.AfavourableinvestmentclimateinLatinAmericawillbevery helpfulinattractingFDIfromChina. Chinaspresencein Latin Americatosomeextentputspressureonthe regionsspecialisation patterns , shiftingtoward higher naturalresource and knowledgeintensiveactivitiesandproducts ( Lederman , OlarregaandPerry 2009 ) .Nationsmustfurtherexploretheircompetitiveadvantagesinahighly segmentedglobalmarket.ItisthereforenaturalforLatinAmericancountries withrichresourcestofocusonnaturalresourcerelatedindustry.However , relyingonasingleindustrywillinevitablyleadtovulnerabilityinthefuture. JustasChinasplentifullaboursupply , now mainlydevotedtomanufacturing , couldbeusedtobuildaknowledgeeconomyinthefuture , Latin American 2 46 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation countriescanimprovetheirnaturalresourcesector , whilestrengtheningknow howandinnovation.IfLatinAmericancountriescandoso , ChinaandLatin Americacanavoidcompetitioninmanufacturingindustrieswhilebeingpartners inbuildingaknowledgeeconomy.Ifwelookfurtherintothefuture , strong ChinaLatinAmericaneconomicrelationswillbeapositivefactorinahealthyand balancedinternationaleconomicsystem. 3.2 TheTaiwanIssue TaiwanisasensitiveissueincurrentandfutureSinoLatin American relations.Firstofall , mostcountriesinLatinAmericaadheretoa “ OneChina policy ”, whichisthe mainstream policystance.Taiwaninthepasttook advantage of “ chequebook diplomacy ”, FTA negotiations and loans to consolidate “ diplomaticrelations ” withthe Caribbean , Central Americaand Paraguay , respectively.Theabsenceofformaldiplomaticrelationswiththese countriestosomeextentprevents Chinafrom developingacomprehensive regionalrelationship.Recently , thetwosidesdivided bythe Taiwan Strait achievedacommonpolicyframeworkofpeacefuldevelopment , andculturaland economicintegrationarebeingdevelopedrapidly.Withinthepolicyframework ofpeacefuldevelopmentforcrossStraitrelations , Beijing willcontinueto developnormalcommercialandculturalrelationswiththosecountrieswithwhich itdoesnothavediplomaticrelations.Consideringtheneedsof Taiwans economicdevelopmentandthepracticalinterestsofTaiwanscompatriots , the Chinesegovernment will not objectto these countries maintaining non governmentalculturalandeconomictieswithTaiwan. Againstthisbackground , Taiwansleaderscameup withtheideaofa diplomatictruce , to whichthe mainlanddidnotreactdirectly , althoughthe strivingfordiplomaticrelationsin Latin Americaclearly decreased.Itis thereforefairtosaythatthepolicyadjustmenthasdeepenedeconomicintegration acrossthe TaiwanStraitandhas madecompetitionlessintensivein Latin America.Meanwhile , Chinasbasicstanceon Taiwan willneverchange , regardlessofthesocalleddiplomatictruce.Doublerecognitionofbothsides acrosstheTaiwanStraitisnotanacceptableoptiontoChina.TheChinese governmentdeclaredin2008thatChinais “ willingtoestablishanddevelopstate tostaterelationswiththecountriesinLatinAmericaonthebasisoftheOne Chinaprinciple ” initsfirstpolicypaperonLatinAmericaandtheCaribbean ( ChineseGovernment2008 ) . Assomeresearchershaveobserved , thefactthatamajorityofthecountries thatstillrecogniseTaiwanarelocatedintheAmericasreflectsthesphereof ANewEraforChinaLatinAmericanRelations:MoreOpportunitiesthanChallenges 2 47 influenceofthe UnitedStates ( Tokatlian2008 ) .Withthedevelopmentof ChinaseconomyandcrossStraitrelations , however , theUSinfluenceonthe Taiwanissueisdeclining.ToseizetheopportunityofChinasdynamicgrowth andadapttotherisinginternationalinfluenceofChina , the motivationto establishformalrelationswithChinaisgrowingintheregion.CostaRica , an influentialsubregionalcountry , inJune2007becamethefirstCentralAmerican nationinthepostColdWareratoswitchitsdiplomaticrecognitionfromTaiwan tomainlandChina.AndevenLatin AmericanstatesthatrecogniseTaiwan frequentlyadheretothecommon Latin Americanvotingstanceinthe UN GeneralAssembly. 3.3 TheChineseDevelopmentModelandItsImplications SincetheWashingtonConsensusenteredroughseasduringtheinternational financialcrisisfrom2008to2009 , therehavebeengrowingconcernsaboutthe emergingcompetition betweendevelopment modelsin Latin America.The WashingtonConsensus , theBeijingConsensusandtheSantiagoConsensusare probablythemostinfluentialdevelopmentmodelsinLatinAmericacurrently. TheturntothecentreortheleftofLatinAmericanpoliticsoverthepast decadeisaremarkablepoliticaldevelopment.Itisalsoanimportantpartofthe backgroundfor understandingthe development modeldiscussionin Latin America.Inthe1990s , mostcountriesintheregionadoptedthe Washington Consensusformulaasafreemarketrecipeforrestructuringtheircrisishit economies , whichhelpedthemtoimproveefficiency , whileexacerbatingmany socialproblems , suchaspoverty , inequalityandpublicsecurity.Nearly37per centofthepopulationoftheregionstilllivesinpoverty , anditremainsoneof themostunequalintheworldintermsofwealthandincome.Thewidelycited “ turntotheleft ” inLatinAmericanelectionsin20052007reflectedtheeconomic realitiesandconcernsoftheaveragevoter ( ONeil2008 ) .Citizensneednotonly democracytoachievetheirpoliticalrights , butalsoastrongandeffective governmenttoaddresssocialissues , includingunemployment , publicsafety , educationandqualityoflifeforthemajorityofcitizens. Inthesecircumstances , theparticipantsinthe WorldEconomicForum on Latin Americain2007reemphasisedandshapedtheSantiago Consensus , introducedin1998.Theyagreedonfiveprioritiesfortheregion , aimedat achievingandsustaininghigherproductivityandgrowthwithequity:education , theenvironment , R & Dinvestment , efficienttaxationandinfrastructure.These prioritiesareintendedtoimproveincomedistributionaseconomiesgrowandto takefulladvantageoftheopportunitiesandinnovationpotentialaffordedbythe 2 48 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation globalisation oftrade , culturaland financialflows. Take the example of infrastructure.IfLatinAmericaistosecureitsplaceintheglobalsupplychain andtoimproveregionalenergysecurity , it mustinvestin upgradingits infrastructure.TheSantiagoConsensusrepresentsanewpolicyparadigmshiftin theregion.ChileisthebestexampleoftheSantiagoConsensussofar:ithas achievedthehighestpercapitaincomegrowthintheregion. WhileLatinAmericahasachievedrapideconomicgrowthinrecentyears , it hasstillbeenmuchslowerthanotherregions , especiallyAsia , intermsofGDP growthrate.Inthiscontext , Chinahasbeena modelforLatin American countriestodiscuss.Whilethesocalled “ BeijingConsensus ” isanattemptto sumupChinasgrowthexperience , Chinastillhasnoofficialdescriptionofwhat theBeijingConsensusis.AccordingtoChinasowndevelopmentexperience , it wouldbe wrongtofollow thesamepaththatothershavetaken without consideringacountrysownsituation.Inreality , bothsideshavebeenworking hardtolearnfromeachothersdevelopmentexperience.AlargepartofChinese developmentstudiesfocusedonLatinAmericasdevelopmentexperience , includingits economictakeoff , the “ lostdecade ”, neoliberalreformandthecurrentleftturn ( Xu andZhang2006 ) .SomeLatinAmericancountriesarealsoveryinterestedinChinas successfuldevelopmentstory.Suchmutuallearningcandeepenourunderstandingof developmentandconsolidatediversedevelopmentmodels. ItshouldbenotedthateventheleftleaninggovernmentsinLatinAmerica aredividedintotwogroups ,“ rightleft ” and “ wrongleft ”, asanumberofUS scholarshaveobserved ( Castaneda2006 ) .Thiscolourfulleftwingpoliticswarns usnottotrytosimplifytheworldtoomuch.AstheObamaadministrationhas foundout , theroleofgovernmentbecomesenlargedindealingwitheconomic recession.The WorldBanksleadershavealsoarguedthatthe Washington ConsensusshouldbefollowedbytheSantiagoConsensus ( WorldBank1999 ) .In dealingwiththechallengeofglobalisation , there willbe moreconsensusor convergenceamongthesethreemodelsinthelongrun. 3.4 GeopoliticalThinkingversustheLogicofGlobalisation Lastbutnotleast , geopoliticalfactorsconferatrilateralaspectonSino LatinAmericanrelations.WhetherChinaisathreatinAmericasbackyardor LatinAmericahasbecomeChinasbackyardarequestionsbeingdiscussedbyUS scholarsand reflecta strong geopoliticalapproach to current SinoLatin Americanrelations.CloserSinoLatin Americantieshaveresultedin mixed reactionsin USpolicycircles.MostanalystsappeartoagreethatChinas primaryinterestintheregionistogaingreateraccesstoneededresourcesand ANewEraforChinaLatinAmericanRelations:MoreOpportunitiesthanChallenges 2 49 marketsbymeansoftradeandinvestment.TheyhaveconfidenceinAmericas economicandgeographicaladvantageoverChina.Meanwhile , someanalysts arguethatChinasinvolvementintheregioncouldposeafuturethreattoUS influence.TheyevenarguethatsomeLatinAmericancountrieslooktoChinaas aneconomicandpoliticalalternativetothe Washington Consensusand US hegemony.Chinastiestothosecountriesruledbyleftleaningpoliticianswith anantiAmericancharacterhavealsobeencriticised.ThesemixedUSreactions towardChinaspresenceinLatinAmericareflectthecompetingperspectivesof globalisationandgeopolitics. Chinesescholarshavealsoarguedthatitisnecessarytoexplainandclarify byallmeansthatChinawillnotharmthirdpartyinterestsandwilllookonthe confrontationwiththeU.S.whenitentersLatinAmerica ( ZhuandLiu2008 ) . BecauseofChinaslowprofilediplomacy , neutralpoliticalpositionandregular dialogueswiththeUSAonLatinAmericanaffairs , Washingtoniswatchfulbut notalarmed ( Hakim2006 ) .TheUSAisconfidentthatitwillcontinuetobethe longtermpartnerofpreferencefortheregion. ToassesstrilateralrelationsbetweentheUSA , ChinaandLatinAmericain apositivelight , weneedtoclarifywhattheircommoninterestsare.Forthe USA , LatinAmericaisthelargestforeignsupplierofoil , astrongpartnerin developingalternativefuelsandoneofthefastestgrowingtradingpartners.Ifit istoproperlyaddressitsownconcerns , includingillegalmigrationanddrug trafficking , the USA needsto helptheregionto deal with povertyand inequality , publicsecurity , migrationandenergysecurity.China , ontheother hand , needs accessto regionalenergy and markets , and to ensurethe cooperationoftheregioninreformingthecurrentinternationalsystem.Latin Americaneedsinvestment , tradeandtechnologyto meetthechallengesof developmentandglobalisation.Basedontheseindividualinterests , anumberof sharedinterestscanbederived.Chinasinvestmentsintheenergysectorcan increasetheenergysupplytoall , stabiliseworldenergypricesandboostregional development.Andasalreadymentioned , aprosperousLatinAmericawillalso sendoutagoodmessagefortheglobaleconomy , whichbenefitsall. Thisissimilartothesituationin Africa , whereboomingChinaAfrica relationshaveencouragedtheEUtoimproveitsrelationswithAfrica.Acloser ChinaLatinAmericarelationship willalsopersuadethe USA topay more attentiontotheregionsneedssinceitsfocushasshiftedtootherregionssince September11.AcomprehensiveapproachonthepartofboththeUSAandthe EUtothesetwodevelopingregionswillalsohelptodevelopChinasforeign policy.TheChinesegovernmentattachesimportancetolocaljobcreationand 2 50 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation environmentalprotection.Inordertominimisemutualsuspicionsandenhance mutualcooperation , more inclusive trilateral dialogue forms should be established.Leadershipmatters.Inthelongrun , howChinausesitsinfluence andhowtheUSAandtheEUseeChinasincreasingroleinLatinAmericawill haveimplicationsforthefuturedirectionoftheinternationalsystem. 4.犆狅狀犮犾狌狊犻狅狀 BothChinaand Latin Americarepresentakeyfocusoftheirrespective foreignpolicies.Bothsidesareengagingwiththeotherinacomprehensiveway andatvariouslevels.Economiccooperationhasgreatpotentialnotonlyintrade butalsoininvestmentandfinance.ChineseinvestmentinLatinAmericacould helptoupgradethelattersindustryacrosstheboardand minimisethetrade deficitinLatinAmerica.Incomparisontotraditionalculturalandmigrationties betweentheEU , theUSAandLatinAmerica , Chinasculturallinkageswith LatinAmericaareveryweak.Morepublicdiplomacy , culturalexchangesand educationalcooperationareneeded.Bothsidesshouldencouragetheircitizensto gettoknow oneanotherbetterinordertoachievesharedgainsandrealise symmetricalratherthanasymmetricalhopes ( Dominguez2006 ) .Mutualpolitical trustandculturalunderstandingcouldhelptodevelopcooperationopportunities andtoimproveeconomiccooperation. ItisnotablethatSinoLatinAmericanrelationshavereachedtheregional andgloballevel , beyondthebilateraldimension. 犆犺犻狀犪狊狆狅犾犻犮狔狆犪狆犲狉狅狀犔犪狋犻狀 犃犿犲狉犻犮犪犪狀犱狋犺犲犆犪狉犻犫犫犲犪狀 furtherclarifiesthegoalsofChinaspolicytowards theregionandoutlinesguidingprinciplesforfuturecooperation.Itmarksan importantmilestoneinSinoLatin AmericanrelationsbecauseittreatsLatin Americaasawholeandcoversmanyglobalissues.Chinaaimstoparticipatein dynamicregionalintegration by providing public goods through regional institutions , whichcanpromoteChinassoftpowerintheregionand make bilateralrelations moresustainable.Globalissuessuchascombatingclimate change , disasterreduction , povertyalleviationandnontraditionalsecurityissues wereincludedinthepolicypaper , whichmeansthatLatinAmericancountries willbetreatedasimportantpartnersindealing withglobalchallenges.As emergingeconomies , Mexico , Argentina , BrazilandChinashouldbecomemoreactive andcooperativeinshapingamorefavourableworldfordevelopingcountries. Obviously , ChinasexpandingpresenceinLatinAmericawillaffectthird partyintereststosomeextent.Whatismostimportant , however , istoregard trilateralrelationsaswinwinratherthanaszerosum.Chinasinvolvementin theregionsinstitutionalnetworkswillmakeitsbehaviourmorepredictableand ANewEraforChinaLatinAmericanRelations:MoreOpportunitiesthanChallenges 2 51 acceptable.ChinasparticipationinregionalinstitutionsledbytheUSAwillalso helpittoreduceUSsuspicions.Chinaspoliticallyneutralpositionandeconomic focusin its engagement with Latin America will notthreaten regional democracy , prosperityorintegrity.Inaddition , Chinaspositiveengagement withLatinAmericawillpromoteregionalprosperityandsocialcohesion , which willnotonlybenefittheregionbutalsoservetheregionalinterestsoftheUSA andtheEU. Notes 1.G / O5istheabbreviationofthesocalled “ outreach5 ” countries , namelyChina , Brazil , India , SouthAfricaand Mexico.Leadersfromthesefivecountrieshaveregularlybeen invitedbyG8leaderstoengageindialogueduringG8summitsinrecentyears. References Bachelet , Pablo ( 2005 ), ChinasLatinInfluenceisGrowing , GeneralSays , in: 犜犺犲犕犻犪犿犻 犎犲狉犪犾犱 , 10March. Castaneda , Jorge G. ( 2006 ), Latin AmericasLeftTurn , in: 犉狅狉犲犻犵狀犃犳犳犪犻狉狊 , 85 , 3 , May / June , 2842. ChineseGovernment ( 2008 ), 犆犺犻狀犪狊犘狅犾犻犮狔犘犪狆犲狉狅狀犔犪狋犻狀犃犿犲狉犻犮犪犪狀犱狋犺犲犆犪狉犻犫犫犲犪狀 , online:http: // www.gov.cn / english / official / 200811 / 05 / content _ 1140347.htm ( May 10 , 2010 ) . ChineseMinistryofCommerce ( 2007 ), 犛狋犪狋犻狊狋犻犮狊狅犳犈狓狆狅狉狋犪狀犱犐犿狆狅狉狋 , online:http: // zhs.mofcom.gov.cn / tongji.shtml ( May11 , 2010 ) . Dominguez , JorgeI. ( 2006 ), 犆犺犻狀犪狊犚犲犾犪狋犻狅狀狊 狑犻狋犺 犔犪狋犻狀 犃犿犲狉犻犮犪 : 犛犺犪狉犲犱犌犪犻狀狊 , 犃狊狔犿犿犲狋狉犻犮犎狅狆犲狊 , Washington , D.C.:InterAmericanDialogue. Forero , Juan ( 2006 ), AcrossLatinAmerica , MandarinIsintheAir , in: 犠犪狊犺犻狀犵狋狅狀犘狅狊狋 , 22September , A01. Hakim , Peter ( 2006 ), IsWashingtonLosingLatinAmerica ? in: 犉狅狉犲犻犵狀犃犳犳犪犻狉狊 , 85 , 1 , January / February , 3953. Hu , Jintao ( 2004 ), JoiningHandstoEnhanceFriendshipbetweenChinaandLatinAmerica , SpeechattheBrazilianParliament , 12November , online:http: // www.fmprc.gov.cn / eng / wjdt / zyjh / t170363.htm ( June1 , 2009 ) . IDB ( 2009 ), 犆犺犻狀犪犑狅犻狀狊犐犇犅犻狀犆犲狉犲犿狅狀狔犪狋犅犪狀犽犎犲犪犱狇狌犪狉狋犲狉狊 , online:http: // www.iadb. org / newsreleases / 200901 / english / chinajoinsidbinceremonyatbankheadquarters5095.html ( January12 , 2009 ) . Kurlantzick , Joshua ( 2006 ), ChinasLatinLeapForward , in: 犠狅狉犾犱犘狅犾犻犮狔犑狅狌狉狀犪犾 , Fall , 3341. Lederman , Daniel , MarceloOlarregaandGuillermoE.Perry ( eds. )( 2009 ), 犆犺犻狀犪狊犪狀犱犐狀犱犻犪狊 犆犺犪犾犾犲狀犵犲狋狅犔犪狋犻狀犃犿犲狉犻犮犪 , Washington , D.C.:TheWorldBank. Moxley , Mitch ( 2010 ), BeijingStrengthensLinkswithLatinAmerica , in: 犃狊犻犪犜犻犿犲狊 , 20 August. 2 52 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation ONeil , ShannonK. ( 2008 ), 犝 . 犛 . 犔犪狋犻狀犃犿犲狉犻犮犪犚犲犾犪狋犻狅狀狊 : 犃犖犲狑 犇犻狉犲犮狋犻狅狀犳狅狉犪犖犲狑 犚犲犪犾犻狋狔 , NY:CouncilonForeignRelations , Inc. Roett , RiordanandGuadalupePaz ( eds. )( 2008 ), 犆犺犻狀犪狊犈狓狆犪狀狊犻狅狀犻狀狋狅狋犺犲 犠犲狊狋犲狉狀 犎犲犿犻狊狆犺犲狉犲 , Washington , D.C.:BrookingsInstitutionPress. Tokatlian , Juan Gabriel ( 2008 ), A Viewfrom Latin America , in:Riordan Roettand GuadalupePaz ( eds. ), 犆犺犻狀犪狊犈狓狆犪狀狊犻狅狀犻狀狋狅狋犺犲犠犲狊狋犲狉狀犎犲犿犻狊狆犺犲狉犲 , Washington , D.C.:BrookingsInstitutionPress , 5989. Turner , Taos ( 2009 ), China , ArgentinaAgreetoCurrencySwap , in: 犜犺犲犠犪犾犾犛狋狉犲犲狋犑狅狌狉狀犪犾 , 31 March , online:http: // online.wsj.com / article / NA _ WSJ _ PUB:SB123845815223971685.html ( April1 , 2010 ) . WorldBank ( 2009 ), RethinkingDevelopment:Principles , Approaches , andProjects , in: 犃狀狀狌犪犾犠狅狉犾犱犅犪狀犽犆狅狀犳犲狉犲狀犮犲狅狀犇犲狏犲犾狅狆犿犲狀狋犈犮狅狀狅犿犻犮狊1998 . Xiang , Lanxin ( 2008 ), AnAlternativeChineseView , in:RiordanRoettandGuadalupePaz ( eds. ), 犆犺犻狀犪狊犈狓狆犪狀狊犻狅狀犻狀狋狅狋犺犲 犠犲狊狋犲狉狀 犎犲犿犻狊狆犺犲狉犲 , Washington , D.C.: BrookingsInstitutionPress , 4458. Xinhuanet ( 2009 ), ChinasurpassesUStobecomeBrazilsbiggesttradingpartner , online: http: // news.xinhuanet.com / english / 200905 / 05 / content _ 11316255.htm ( May1 , 2010 ) . Xu , YanlingandYifanZhang ( 2006 ), TheImplicationsoftheLatinAmericanPhenomenon forChinasConstructionofa HarmoniousSociety , in: 犑狅狌狉狀犪犾狅犳 犔犪狋犻狀 犃犿犲狉犻犮犪狀 犛狋狌犱犻犲狊 , 28 , November / December , 2934. Wu , Hongying ( 2007 ), A NewEraofSinoLatinAmericanRelations , in: 犆狅狀狋犲犿狆狅狉犪狉狔 犐狀狋犲狉狀犪狋犻狅狀犪犾犚犲犾犪狋犻狅狀狊 , January / February , 6471. Zhou , Wenzhong ( 2009 ), 犛狆犲犲犮犺狅狀狋犺犲犛狋狉犪狋犲犵犻犮犐犿狆犾犻犮犪狋犻狅狀狊狅犳 犆犺犻狀犪狊犈狏狅犾狏犻狀犵 犚犲犾犪狋犻狅狀狊犺犻狆狑犻狋犺犔犪狋犻狀犃犿犲狉犻犮犪犪狋犆犲狀狋犲狉犳狅狉犎犲犿犻狊狆犺犲狉犻犮犛犲犮狌狉犻狋狔犛狋狌犱犻犲狊 , 犝犛犃 , online:http: // www.chinaembassy.org / eng / xw / t627365.htm ( 1April2010 ) . Zhou , Xiaochuan ( 2009 ), 犛狆犲犲犮犺犪狋狋犺犲犃狀狀狌犪犾犌狅狏犲狉狀狅狉狊犃狊狊犲犿犫犾狔狅犳狋犺犲犐狀狋犲狉犃犿犲狉犻犮犪狀 犇犲狏犲犾狅狆犿犲狀狋犅犪狀犽 , online:http: // news.xinhuanet.com / english / 200903 / 31 / content _ 11105624.htm ( October2 , 2009 ) . Zhu , Hongboand Liu , Wenlong ( 2008 ), Chinas GeopoliticalStrategytowardsLatin AmericainNewCentury , in: 犆狅狀狋犲犿狆狅狉犪狉狔犐狀狋犲狉狀犪狋犻狅狀犪犾犚犲犾犪狋犻狅狀狊 , 3 , 3842. 2 53 犆犺犪狆狋犲狉4 犜犺犲犈犝 , 犔犪狋犻狀犃犿犲狉犻犮犪犪狀犱犆犺犻狀犪牶犌犲狅犿犲狋狉犻犮犪犾 犘犪狋狋犲狉狀狊犻狀犆狌狉狉犲狀狋犪狀犱犉狌狋狌狉犲犚犲犾犪狋犻狅狀狊 9*":%;#"< 7%'(3=%. 1.犐狀狋狉狅犱狌犮狋犻狅狀 Thedebateonwhattheworldorderwilllooklikeinthenotsodistant futureisnotonlypertinent , butalsourgent.Globalgovernanceandfuture cooperationschemesdependonwhatkindofstructuretheinternationalsystem willtakeaftertheeconomiccrisistriggeredbythecollapseofLehmanBrothers. However , atthispointitis noteasyto predicteither whatshapethe internationalorderwillassumeorwhattypeofcooperationschemeswillbebest suitedfortheworldtocomeandtheinterestsofthedifferentplayers.Despite thisinabilityto makeaccuratepredictions , certainfeaturescanalreadybe distinguishedthroughthefogin which weareendingthefirstdecadeofthe twentyfirstcentury. Themainpurposeofthischapteristoreflectonthecurrentissuesand futurecooperation opportunities between threeimportant playersin the internationalcommunity:theEuropeanUnion ( EU ), LatinAmericaandChina. Eachoftheseplayersseemstobeinadifferentpositiontofacethechallengesof theworldorderthatisgraduallytakingshape.Potentialcooperationschemes willdepend on how each playerrespondstothesechallenges , accordingto countryspecificcharacteristics.Ifapredictionmustbemade , Chinawillbeina muchbettershapetoparticipatefullyinthe “ new worldorder ” thanthe European Unionand , therefore , Latin Americashouldbeplanningitsfuture alliancesrightnow. 2.犜犺犲犐狀狋犲狉狀犪狋犻狅狀犪犾犛狔狊狋犲犿牶犃犾狋犲狉犲犱犛狋犪狋犲狊 Atthispoint , itishardtospeakwithmuchcertaintyaboutthestateofany 2 54 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation foreignpolicyorofanybilateral , biregionalormultilateralrelationship.The problemliesinthefactthattheinternationalsystemisinfluxor , ifImaysay so , inan “ alteredstate ”, inwhichnothingthatweknewbeforeseemstohold trueanylonger , atleastnotwithoutconsiderablemodification. However , thereareatleastsomefactsthatwecanbesureof: ( 1 ) Chinahasbecomea major worldpower , notonlybecauseofits outstanding economic growth in recent years , but also because ofthe attractivenessofitsdevelopmentmodel. ( 2 ) Europehaslostpartofitssoftpowerduetoenlargementandthe constitutionaldebacle.IthascertainlylostitsascendancyoverLatinAmerica , givenitsinabilitytoactonissuesofparticularconcernintheregion , its obstinateadherencetosocalledsharedprinciplesandvaluesanditsadhoc solutionswhenpushcomestoshove , asseeninthelatestchangeofpositionvis vis the pending agreements with the Andean Community members. Furthermore , despitebeingthemostsuccessfulintegrationschemeintheworld , thecurrenteconomiccrisisiscertainlyputtingallEUinstitutionsunderstrain , evenitscoreprincipleofsolidarity , asshownbythediscussionssurroundingthe Greekdebacle. ( 3 ) Latin Americahasbecomemorediverseandismovingfartherand fartherawayfromaunifiedpositionorvoiceoninternationalaffairs , despitethe recentattemptstocreateaLatinAmericancommunity.Atthesametime , ithas resumedapreexistingroleasaproducerofraw materials , whichhasgivenita temporaryandsomewhatartificialrelevanceintodays world , includingits apparentresilience during the current economic crisis.Nonetheless , the challengesfacingtheregionarestillmanyanddiverse. ( 4 ) AnyreflectiononrelationsbetweentheEU , LatinAmericaandChina cannotexcludethe “ elephantintheroom ”, namelytheUnitedStates.Despiteits apparentlossofsteamanditsdifficultiesduringthecurrentcrisis , theUSAis stillaworldpowerthatwillinfluencetheformationofanytypeofnew world order.Therefore , perhapsitwouldbebettertotalknotofatrianglebutofa rhomboidthatincludestheUSA. ( 5 ) Theworldisbecomingmultipolar.However , thismeansnotonlythat powerwillbedistributedmoreevenlyamongstates , butalsothatotheractors mustbeconsideredintheequation.Inthatsense , whateverpredictionsaremade now , it willbenecessarytotakeintoconsiderationthefactorofpower fragmentationand redistribution among differentactors , including states , marketsandother , morediffuseplayers , suchasratingagencies , whichhave demonstratedtheircapacitytomakeorbreakstates. TheEU , LatinAmericaandChina:GeometricalPatternsinCurrentandFutureRelations 2 55 ( 6 ) Lastbutnotleast , theeconomiccrisisweareinthemiddleofwill certainlyhaveanimpactonallactorsandwillredefinemanyoftheserelationsin termsofprioritiesandscopeofaction.Atpresent , theneedforcooperationis obvious.However , itdoesnotseem tobetakingplaceas mighthavebeen expected , regardlessoftherecentlyacquiredprofileoftheG20anditspotential tobecomethebasisofanewinternationalfinancialarchitecture.Upuntilnow , boththeEUandtheUSAseemtohavebeenhardesthitbythecrisisandthat hasbeggedthequestionoftheirabilitytoremainatthehelmoftheinternational order.However , thereisstillhope.Jean Monnet , thefatheroftheEuropean integrationprocess , oncesaidthatcrisescanmakepeopledowhattheywould notdootherwise.Canthatbethecasethistimearound ? 3.犉狅狌狉犐犿狆狅狉狋犪狀狋犃犮狋狅狉狊犻狀狋犺犲犐狀狋犲狉狀犪狋犻狅狀犪犾犛狔狊狋犲犿 3.1 TheEuropean Union:A TroubledProcessandanInternationalActorin theMaking TheEuropean Unionhaschangeddramaticallyinrecentyears , notonly becauseofitsenlargementtotheeast , whichhascertainlyhadaneffectonits foreignpolicypriorities , butalsobecauseofthetroublesexperiencedbythe integrationprocessitselfinthe wakeoftheconstitutionaldebacleandthe traumaticapprovaloftheLisbonTreaty.Today , theseverityoftheeconomic crisisisprovingtobeatoughtestforthemostadvancedintegrationschemein theworld.Despitetheadvancesineconomicintegration , theGreekdebaclehas pushedtheEUontotheropes , revealingthatthisimportanteconomicactorstill hasalongwaytogointermsofeconomicgovernanceandthatevenitsmost basicprinciplesaremootwhenshortterminterestsareatstake.Itishardto imaginehowtheinnovationsoftheLisbonTreatywithregardtoforeignpolicy willbeabletoovercomethesechallengesbythemselvesandtomaketheEUa strongandcoherentinternationalactor. Inrecentyears , astheworldunderwentaperiodofrecalcitrantrealismin internationalaffairspromotedbytheBushadministration , Europewasunableto takeadvantageofthesituationtopositionitself , notasanalternativebutasa wiservoicethatcouldguidethereformofinternationalinstitutions.TheUnions ownissuesvisvisitsinternationalrelationspreventitfrombeingtheworld poweritshouldbe. Evenworse , theEUislosinggroundontheinternationalstage.Regardless ofitsbeingthelargest marketinthe world , itisbeingsaid moreand more frequentlythatEuropewillbealessimportantplayerintheworldtocome , 2 56 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation especiallygivenitsincapacitytoactasasingleinternationalactorandits diversityandcomplexity.Otherspointtowardstheimminentarrivalofanew bipolarsystem , inwhichthemainactorswillbeChinaandtheUSA , tothe exclusionoftheEU. Seenfromtheoutside , theUnionisaverycomplexactorthatfewunderstand. Thereisapermanentfeelingthatnooneisinchargeandif , atanygivenpoint , someonedoesseemtobeincharge , therearecriesonallsidesthatitshouldhave beensomeoneelse , ashappenedwiththeappointmentofMrVanRompuyas PresidentinNovember2009.ThesamecanbesaidofBaronessAshton.Inthat sense , theEuropeanmodelseemstobetoocomplexandtootaxingforoutside observers. Furthermore , Europehasnotyetlostitsimageasapaternalisticactorin termsofitscooperationschemes.Itsselfassignedroleasa “ normativepower ” is noteasytoselltolessdevelopedpartners , whohavetheconstantfeelingofbeing judgedonthebasisofunfairorunattainablestandards.This , intheend , leads totheperceptionthattheUnionclearlyhasdoublestandards.Evenifthisisnot thecase , itsforeignpolicy , basedonprinciplesandvalues , lackscredibility. 3.2 LatinAmerica:ARegioninSearchofItself LatinAmericahasundergoneanenormoustransformationinthepastfew years.Politically , thecontinentisbarelyrecognisable.TheswitchtotheLeft — ortomanyLefts — hasperplexedmanyobservers.Nonetheless , theLeftdoes notgovernallofLatin America , as wecanseeinthecasesof Mexicoand Colombia. Theissuesthataffecttheregionarediverse.Drugtraffickingandthe associatedeffectsoforganisedcrimeinMexico , Colombiaandsomepartsofthe CaribbeancanscarcelybecategorisedtogetherwithenergyplansinBrazilor politicalturmoilinArgentina.Ifoneissueiscommontothewholeregion , itis migration.Theeffectsoftheveritablehaemorrhagingofpopulationinrecent decadesareyetto beseen , but willcertainlyimposeacostonthefuture developmentoftheregion. Intermsofvalues , Latin Americahasalsosuffered manychanges.The regionislettingslidemanyformervalues , buthasadoptedmanynewonesfrom theoutsideworld.Thatiscertainlythecasewithregardtotheconfigurationof itssocietiesandtheinfluenceofmigration , forexample , ontraditionalwaysof life.However , anoteofcautionisinorder:thesocalled “ Americanisation ” of valuesinLatinAmericavariesdependingonthecountryandtheregion.Ifwe lookattheAndeancountries ,“ Europeanisation ” mightwellbeintheworks TheEU , LatinAmericaandChina:GeometricalPatternsinCurrentandFutureRelations 2 57 giventheintensemigratoryflowsbetweenthetworegionsinthepastdecade. Nonetheless ,“ LatinAmerica ” remainsaconceptualshortcutandapolitical tool , giventhat mostLatin Americancountriesontheirown wouldhaveno significanceinanalteredinternationalsystem.However , theneedtorecurtothe globalconceptofLatinAmericamisleadspartnersandgivesthewrongideato outsideobservers. Asalreadynoted , thingsinLatinAmericahavechanged , notallofthemfor thebetter.Inthatsense , itisunderstandablethatsomeofourpartners , specificallythe European Union , seem permanently disappointed withthe regionsinequalityindicators , forexample.Theregionwentfrom beingthe posterchildofWesternpoliciestobeingthechildleftbehind , especiallyinthe wakeoftheAsianboom.Politically , althoughmanypollsseemtoconfirmthat democracyishealthyinLatinAmerica , thetruthisthatthisishardlythecasein mostcountries.Traditionalpartysystemsare gradually deteriorating and democraticgovernmentsarelessabletosolvethemainproblemsaffectingtheir populations.Thereturnofpopulismorneopopulism , whichisastyle , nota formofgovernment , hassettheregionbackanumberofdecades. Thesamehashappened withregardtotheraw materialsboominthe internationaleconomy.LatinAmerica , whichseemedtohavemovedfaraway from whattheauthorsofthedependencytheorylamenteddecadesago , has returnedtoitsroleofcommodityprovider.Thiswouldnotbeaproblemifit werenotfortheartificialgrowthprovokedbythesaleoftheserawmaterialsand theconsequencesofsuchgrowthforthepoliticalenvironment.Venezuelaisa caseinpoint. Despiteallthesechallengingissues , thereisstillhopeinLatinAmerica. Brazilhasdefinitely becomethenew posterchildfortheregion andits aspirationstorisefromthestatusofregionalpowertothatofworldpowermust betakenintoaccountinanyfuturecooperationschemes.ThroughtheUnionof SouthAmericanNations ( UNASUR ), butalsothroughSouthSouthcooperation schemes , Brazilisstartingtopositionitselfasapowerfulandinfluentialactor , notonlyinLatinAmerica , butworldwide.AsamemberoftheG5 , theG20and theBRICs , Brazilwillcertainlyhavearoletoplayintheformationofthecoming worldorder. 3.3 China:The Unknown Actor witha DifferentVisionandthePowerto ProduceChange Inthepastfew years , Chinahas madeoverwhelmingprogressonthe internationalscene.Wenowfaceamodern , wealthyandstrongChinathatis 2 58 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation eonsawayfromtheformerimageofthisAsiancountry.Chinahaspresented itselfasaverydifferentinternationalactor.Inmanyways , itdoesnotseemto havetheunavoidableneedtheEuropeanshavetosugarcoatitspoliciesand interests.JustasEuropeonceexporteditsownsystemofinternationalrelations amongstatestotherestoftheworld , itseemsthatitisnowtheturnofAsiato reconfiguretheinternationalsystem.Theconditionswithintheinternational systemarechanginginfavouroflargecountrieswithstrongstates , andChinais definitelyplayinganimportantroleinthisprocess. AnimportantcharacteristicofmanyAsiancountriesisthattheirgovernmentsare willingtointerveneextensivelyintheinternationaleconomytoachievepoliticalgoals thatdirectlyservetheirownstrategicinterests.Asthesecountries , ledbyChina , emergeaspowerfulplayersinthesystem , theyarechangingtherulesofthe game.Smallercountriesandcountrieswithopeneconomieshavemoredifficulty beingheard.TheascentofthelargeAsiancountries , therefore , hasaccelerated , asEuropeancountriesloseinfluence.Europecanonlykeepup withthese changesifitdevelopsacoherentstrategythatintegratespoliticalandeconomic goalsinpoliciesdirectedtowardsthenewemergingpowers. Chinaseconomicinfluenceisglobal , somethingthatisevidentin many fields , including trade and financialrelations.Developing and developed countriesalikebenefitfromtheascentofChina , whetheritisintermsofmarket access , theavailabilityofcheaplabour , ChineseimportsorChineseinvestments andcapital. Europeangovernmentsalsouseeconomicmeanstoachievepoliticalgoals , forexample , throughtradeandaidprogrammes , regardlessofwhethertheyare bilateralormultilateral.ThemaindifferenceisthatEuropeansdepend , overall , ontheirestablishedpositionwithininternationalinstitutions , insteadofusing theirinternationaleconomicrelationsastoolstogaininfluence.Moreover , the potentialof Western governments to practice economic realism is more restricted , giventhattheirstatesinterferemuchlessinthedomesticeconomy thanisthecasein Asia.Thus , whentheEuropeansuseeconomic meansto achievepoliticalgoals , theytypicallyseektoachieveanormativechangeina thirdcountry.Byemphasisingtheirattractivenessintermsofculture , political idealsandpublicpolicies , theyseek , forexample , toadvancetheirpolitical interestsandideals , includingdemocratisation , thepromotionofrespectfor humanrightsandgoodgovernance. Thepoliticalgoalsof Asiancountriesforeign policiestendtobe more specificand moredirectlyrelatedtotheirsecurityandeconomicinterests.In consequence , atleastintheshortand mediumterms , theEuropeanstrategy TheEU , LatinAmericaandChina:GeometricalPatternsinCurrentandFutureRelations 2 59 cannotcomparewithorbeacounterweighttothatofAsia. ThesechangesandEuropesrelativelossofpowerarefeltstronglyinLatin America , wheretherearealsoindividualactorspursuingstrategiesthataremore similartothoseofAsiathantothoseofEuropeintermsoftheirsearchforpower andhegemony , firstregionalandthenglobal , asmightbethecasewithregard toBrazilorVenezuela.Inthesecircumstances , LatinAmericaisalsolookingfor aplaceinthenewinternationalsystemandistakingadvantageofsomeofthe newrulesofthegamebeingputforwardbyAsia. 3.4 TheElephantintheRoom:TheUSA ItbecamecustomarytodismisstheUSAasapartnerothercountriescould talktoduringtheBushera.NowweareatthebeginningofanewepochinUS foreignpolicy.PresidentObamasfirstvisitstoEuropeandLatinAmericahave , ifnothingelse , changedthetoneoftheseveryimportantrelations , evenif , in retrospect , theydidnotproducefundamentalchangesintermsoftheimportance ofthesepartnersfortheUSA.Likewise , USlinkswithChina , giventhatitis dependentonChinesecredit , areoftheutmostimportance. TheObamaAdministrationwillprobablycontinuetoconcentrateondomestic politics.Certainly , theeconomiccrisishasforcedhisgovernmenttofocusonthe domesticagenda , beforereachingouttooldornewinternationalpartners. Nonetheless , itcanbesaidthatUSrelationsarenotparticularlysmootheither withtheEUorwithLatinAmerica , anddefinitelynotwithChina.Despitethis , theUSAwillremainanactortobereckonedwithintheyearstocome , evenifit isstillimpossibletopredictwithcertaintywhatkindofroleitwillplay.Onthe onehanditwouldbegoodtohavea USA thatdoesnotseem allpowerful , becauseitcouldadoptahumblerattitudeandpolicyandmightbemorewillingto listentoothers.However , ifthe USA emergesterriblydebilitatedfrom the crisis , theworldwilllackaleader.Itisacaseof “ cantlivewithem , cantlive withoutem ” . 4.犛狆犲犮犻犳犻犮犚犲犾犪狋犻狅狀狊犫犲狋狑犲犲狀狋犺犲犕犪犻狀犃犮狋狅狉狊 4.1 LatinAmericaEuropeanUnion Theyear2009 markedthetenthanniversaryoftheestablishmentofthe socalled “ strategicbiregionalassociation ”, whichstarted withthefirstEU LatinAmerica / Caribbean ( LAC ) SummitinRiodeJaneiroinJune1999.The EULACschemeprofessestomaintainapoliticaldialogueatthehighestlevel amongpartnersthat , inpracticalterms , areconsideredtobetwohomogeneous 2 60 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation regions ; henceitscharacterisationas “ biregional ” .Ontheonehand , itis assumedthatLatinAmericaandtheCaribbeanformasingleregionthatspeaks withonevoice — anassumptionthatcan only beconsidered purepolitical fiction — and , ontheotherhand , thatthereisanEUof27membersthat , even thoughitisthemostadvancedintegrationprocessintheworld , isnotalways capableofspeakingwithonevoiceaboutinternationalissues. Ultimately , EULACsummitsaremeetingsof60representativesofvery differentstates , with diverseagendasandinterests which , although held dutifullyeverytwoyears , producefewconcreteresults , beyondtheobligatory declarationsbasedonthesharedvaluesthesetworegionsaresupposedto uphold.ThetenthanniversaryoftheEULACmechanismwascelebratedduring thelastEUPresidencywiththeformatthatprevailedbeforetheentryintoforce oftheLisbonTreatyinDecember2009 , whichmeantthatitwasinthehandsof Spain , acountryforwhichtieswithLatin AmericaandtheCaribbeanarevery importantandwhichhasservedasthemainpromoterofsuchrelationswithintheEU. Ifthetruthbetold , aftertenyearsofthesocalled “ strategicbiregional association ”, theformathasprovedtobeawkwardandisnowoldandobsolete. Thetwolevelstrategy — valuesandinterests — doesnotseemlikelytoholdfor muchlonger.Itisnotastrategicrelationship , itisnotabiregionalrelationship anditishardlyatrueassociation.Asthingsstand , the “ naturalalliance ” isno longerarealityinthispartnershipanditisalsosafetosaythatEuropesregionalisation strategyinLatinAmericahasfailed , onlyaddingtowhatisperceivedtobeanormative andjudgmentalapproach , basedondoublestandards. Themainissueisstillthesame:EuropewantsLatinAmericatobewhatit cannotbe:asingleregion , aregionwithnoinequality , aregionwithdeveloped democracies , aregionthatrespectstheenvironment , aregionthathaseconomic sustainabilityandsoon.Mostofthesethingsareunattainableforthetime being , or atleastthey will not be achieved via foreign pressure and conditionality.LatinAmericaisdiverse , unequallydeveloped , nevertoopoor , nevertoorich , withmanyconflictsbutofadifferentnaturefromthosewhocall forintervention.Theconversation , then , islopsided.Lastbutnotleast , even thoughtheUSApaidlittleattentiontoitstraditionalbackyardundertheBush administration , itsstrategyofsigningbilateralagreementswithmanycountries intheregionbasicallykilledtheEuropeanregionalisationandgrouptogroup negotiationstrategyforgood.Inthatsense , whenLatinAmericansdemandfrom EuropeansfreetradeagreementsandaccesstotheEuropeansinglemarket , it meansthattherestofthemanybeautifulinstitutions — asortof “ mobile ” that TheEU , LatinAmericaandChina:GeometricalPatternsinCurrentandFutureRelations 2 61 looksprettybutjusthangsthere , withouttouchingtheground — andpractices thattherelationshipseemstohaveareirrelevantfortheregionscountries. Moreover , as with China , buteven worse giventhe history ofthe relationship , thereisadeeplackofunderstandingofhowtheEuropeanUnion worksandfunctions.LatinAmericanskeepthinkingofEuropeintermsofits individualstates , especiallySpain.Spainhashadacontroversialroleinthis relationshipthathasbecomeevidentinthepastfewyears.Itiscertainlythe memberstatethathasinsistedmostthattheEuropeanUnionmaintainsstrong relationswithLatinAmerica.However , ithasstartedtoactmoreasaproxyof theEuropean Unionthanasatrueambassador , bridgeorwhateverother metaphoronemightchoose.Thishasbecomeparticularlyevidentontheissueof migration.ItistruethatSpainhasbeenthemaindestinationofmostLatin Americanflows.However , whenevertheEuropeanUnionhaslaunchedcommon initiativesintherealm of migration policy , suchastheinfamous Return Directive , SpainhasfailedtoactastheUnionsrepresentativeand , toprevent itsrelationswithLatin Americafromsuffering , hasevendeclaredthatthe DirectivewouldnotapplyinSpain. Evenifforpoliticalreasonsthatcouldbeconsideredacceptable , intermsof thefutureofEULACrelationsthisisaheavyblowtomutualunderstandingand thestrategicbiregionalassociationbased , supposedly , onpoliticaldialogueat thehighestlevel.Moreover , ithaspreventedatruedialoguebetweenboth regionsonmigrationissuesthatcouldbetakentothemultilaterallevelonthe basisofgenuinelysharedinterests.Intheend , itcallsintoquestiontheneedor therelevanceofthesocalledbiregionalstrategicassociation.Woulditbebetter tokeepdealingwiththeseissuesandothersofasimilarcharacterwithinthe IberoAmericanfora ? Overall , then , Spainishardlyrepresentativeofthecurrent EuropeanUnion , whileLatin Americansaredeceivingthemselvesbytaking SpainspositionsandpoliciesasequivalenttothoseofEurope. 4.2 ChinaLatinAmerica ChinaspresenceinLatinAmericaisbothfeared , intermsofitsstrengthas atradepower , andneeded , giventhatitisthesolesurvivoroftheinternational crisisactuallyabletoprovidemuchneededcashtoLatinAmericaneconomies thatarein direeconomicstraits , such as Venezuela.The Chinese have establishedabridgeheadinLatinAmericaandtheywillnotwanttoleavefor quiteawhile.Theyhavecomewithaclearerunderstandingoftheregion , vis visthecommonmisconceptionsofEuropeansandAmericans , whostillwantto talkaboutasingleLatinAmerica.PerhapsChinasrelationswiththeregions 2 62 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation countrieswillhavethesameresultasitdidfortheEuropeans:itwillcement Chinasroleasamajorglobalpower.Afterall , LatinAmericansandChinese sharemanymorethingsthanEuropeansandLatinAmericans:perhapsnotfrom thepointofviewoftraditionalcultureandvalues , butasmembersoftheG5and G20 , forexample.Theinternationaleconomiccrisiswillcertainlybealitmus testfortheserelationsandthecoincidenceofinterests.Nonetheless , Chinahas totakebabystepsintermsofitsrelationswithLatinAmerica.Providingcash starvedgovernmentswithresourcesmaybeadoubleedgedsword. FromtheLatinAmericanperspective , itwouldbeamistaketothinkthat ChinaisasubstituteforitsrelationswitheithertheUSAortheEU.Noneof theseactorscansubstituteforoneanother.Trueinterests — andsomewould say , valuestoo — mustbeatthebasisofrelations , beyondthesempiternalneed todiversify. Iffacts mustbetakenintoaccount , itshouldbenotedthatChina will displaceEuropeand willbeclosebehindthe USA asadestinationofLatin Americanexportsinaboutadecade , accordingtoarecentstudypublishedbythe UnitedNationsEconomicCommissionforLatin AmericaandtheCaribbean ( ECLAC ),“ ThePeoples RepublicofChinaand Latin Americaandthe Caribbean:TowardsaStrategicRelationship ” .Ifthecurrentgrowthrateof LatinAmericanexportstoitsmainmarketsismaintained , Chinasparticipation willrisefrom7.6percentin2009to19.3percentin2020.Inthesameperiod , theEUwillmaintainparticipationofaround14percentandwillbesurpassedby Chinain2015. Accordingtothisreport , thegrowthofChinaasadestinationofLatin Americanexportswillbeachievedasaresultofthepersistentfallintheregions exportstotheUnitedStates , from38.6percentofthetotalin2009to28.4per centin2020.TheECLACdoessay , however , thattheimportanceofChinaasan exportmarketvariesnotablyamongLatinAmericancountries , giventhatitisa keydestinationforChile , PeruandArgentina , forexample , butnotforCentral America , withthenotableexceptionofCostaRica.InthecaseofMexico , its exportstoChinarepresentedlessthan1percentofthetotalin2009. IntermsofChinasimports , thestudypredictsasimilarevolution , oran evenmoreradicalone , giventhatChinacouldsurpassboththeEUandtheUSA in2020andbecomethemainoriginofLatinAmericanimports.Thegrowthin Chineseimportswillconcentrateonthesamecapitalgoodsthatalreadyhavea presenceintheregion.Thesechanges , predictedtotakeplaceinthenext decade , willcertainlyaltertherangeofoptionsavailableforconstructing triangularrelationseitherwiththeUSAortheEU , LatinAmericaandChina. TheEU , LatinAmericaandChina:GeometricalPatternsinCurrentandFutureRelations 2 63 However , beyondChinasextraordinaryeconomicpower , itmustbenoted thatitcanhaveahugepoliticalinfluenceintheregion.TheChinesedevelopment modelisprovingtobeextremelyattractiveforLatinAmericancountrieshungry forhighgrowthratesandfastindustrialisation.Moreover , sincethemodeldoes notincludethesamevalueledagendathathasbeenpushedbytheEU , focusing ondemocracy , socialcohesionandhumanrights , itcertainlycouldbeattractive forLatinAmericanelitespronetoauthoritarianismandpopulismandinsearchof apoliticaldiscoursebasedonastrongstateandthedefenceofsovereignty. 4.3 USALatinAmerica RegardlessofhowtheUSAemergesfromtheeconomiccrisis , itwillremain afundamentalpartnerforallthreeactors:LatinAmerica , EuropeandChina.It isyettobeseenhowthechangeinUSleadershipwillaffectitsrelationswiththe outsideworld.Nonetheless , thefutureofallthreeactorswill , inmanyways , be determinedbytheinvolvementwiththe USA , eventothepointofbeing demographicallyintertwined , asisthecase with manycountriesin Latin America , andespeciallyMexico , giventhesharedhistoryofmigratoryflows. Nonetheless , thefutureof USLatin Americanrelations willcertainlybe differentfrominthepast.Today , LatinAmericaseemstobemorecapableof standingitsgroundand , especiallytheSouthern Cone , givenitssuccessful diversificationstrategy , tospeakwithitsownvoice.TheyearstheUSAhasbeen absentfromtheregionorpresentonlythroughmilitarisedrelations — ashasbeenthe casewithColombia , forexample — willbecostlyforthefutureofUSpowerinthe region.Likewise , thestrongcompetitiontheUSAwillfacefromactorssuchasChina willcertainlyimposeadifferentcharacterontheserelations. 5.犉犻狀犪犾犚犲犿犪狉犽狊牶犗犳犜狉犻犪狀犵犾犲狊犪狀犱犚犺狅犿犫狅犻犱狊 — 犐狋犇犲狆犲狀犱狊狅狀狋犺犲犔犲狀狊犢狅狌 犝狊犲 Inconclusion , eveniftheseallpredictionsprovefalse , theimportanceof Chinaisunequivocal.Likewise , theimportanceoftheUSAoroftheEuropean Unioncannotbetotallydismissedyet.LatinAmericawillremainwhereitis , neitherthepoorestofregionsnorthemostdeveloped.Itwillprobablybe , yet again , thetestinggroundofthemanypoliciesthatemergeaftertheeconomic debacle. Howdifferentorhowsimilararetheseactors ? Itdependsonthetypeoflens weuse , whetheramicroscope , atelescopeortintedglass.Addressingthesame questionagainintenyearstime , itcannotbesaidwhetherwewillbespeaking oftrianglesorrhomboids.Nonetheless , geometrywillstillmatter. 2 64 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation References Bastenier , M.A. ( 2010a ), Ladécadaquecambióelmundo , in: 犈犾犘犪í狊 , 11February. Bastenier , M.A. ( 2010b ), ElEjeSurSur , in: 犈犾犘犪í狊 , 21April. Bennhold , K. ( 2010 ), AsChinaRises , Conflictwiththe WestRisesToo , in: 犜犺犲犖犲狑 犢狅狉犽犜犻犿犲狊 , 27January. Bonet , P. ( 2009 ), Losnuevos ‘ muros ’ delsigloXXI , in: 犈犾犘犪í狊 , 11October. Cohen , R. ( 2010 ), TheDragonsSwagger , in: 犜犺犲犖犲狑犢狅狉犽犜犻犿犲狊 , 12January. Economist ( 2009 ), 犃犠犪狉狔犚犲狊狆犲犮狋 . 犃犛狆犲犮犻犪犾犚犲狆狅狉狋狅狀犆犺犻狀犪犪狀犱犃犿犲狉犻犮犪 , 24October. Ferguson , N.andM.Schularick ( 2009 ), TheGreatWallop , in: 犜犺犲犖犲狑犢狅狉犽犜犻犿犲狊 , 16 November. 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VidalFolch , X. ( 2009 ),“ SiEuropanoseintegra , mandarnEE UU yChina ”( Entrevistaa JacquesDelors , ExpresidentedelaComisiónEuropea ), in: 犈犾犘犪í狊 , 6December. 犘犪狉狋犐犐 犕犈犚犆犗犛犝犚犛犚犲犾犪狋犻狅狀狊犺犻狆 狑犻狋犺狋犺犲犈犝犪狀犱犆犺犻狀犪 2 67 犆犺犪狆狋犲狉5 犈犿狆犻狉犻犮犪犾犃狀犪犾狔狊犻狊牶犜狉犪犱犲犫犲狋狑犲犲狀犕犈犚犆犗犛犝犚 犪狀犱犆犺犻狀犪 / 犈犝 — 犜狉犲狀犱狊犪狀犱犉犻犵狌狉犲狊 >,.&,*)%**%.%'( 0#5+%=3;"&,"*3 1.犐狀狋狉狅犱狌犮狋犻狅狀 Inthispaper weconductanempiricalanalysisofthetradebetween MERCOSURandChina ( Section3 ) aswellasMERCOSURandtheEU ( Section 4 ) .Ourinquiryfocusesonbilateraltradedata , exportandimporttrendsandthe compositionof MERCOSUR exportstothose markets.Thereisacritical analysisattheendofSection3and4.Tradedatawerecompiledbeforethe adventoftheglobalcrisis. Someremarksaboutthemethodologyandsourcesofdatadeserveattention attheoutset. Wegathered datafrom thefollowingsources:Aliceweb and AlicewebMERCOSUR ( Braziliandata ), SICOEX ( MERCOSUR members , exceptBrazil ), COMTRADE ( worldtradedata ) andEurostat ( EU ) .Export andimportfiguresareexpressedinUSdollars ( USD ) andfreeonboard ( FOB ) andreferonlytotradeingoods. Chinasforeigntradefiguresdonotinclude Hong Kong , Taiwanand Macau.TheEUfiguresincludethecurrent27members.EUaggregateddataare compiledfromEurostatandareinaccordancewiththeCommunityGuidelines , whichmeansthattheymaydifferfromnationaldata.EUfiguresweregathered ineurosandconvertedtoUSDusingannualaverageratesavailablefromtheUS FederalReserveBank. 1 2.犕犈犚犆犗犛犝犚牶犃狀犗狏犲狉狏犻犲狑 MERCOSURistheSouthernCommon Market , occasionallyreferredtoasthe CommonMarketoftheSouthernCone. 2 TheoriginsofMERCOSURlieinthebroader processofpoliticalrealignmentbetween Braziland Argentinathatoccurredinthe 2 68 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation 1980s.TheprocessreacheditsclimaxinJuly1990 , whenBrazilandArgentinasigned theProtocolofBuenosAiresaimingattheestablishmentofacommonmarket. Atthesametime , negotiations wereinitiatedtoinclude Uruguayand Paraguay.Eventually , on26 March1991 , theTreatyofAsunciónestablished MERCOSURandexpandedtheprojecttoincludethosecountries.TheOuro PretoProtocol , signedinDecember1994 , broughtintegrationastepforward withtheestablishmentofacommonexternaltariff ( knownas “ TEC ”) andthe launchofacustomsunion. AcommonmisapprehensionwithregardtoMERCOSURconcernsthestatus ofVenezuela , BoliviaandChileinrelationtothebloc.Althoughonecanfind sourcespointingoutthatVenezuelaandBoliviaarealreadyfullMERCOSUR members , thisisnotaccurate. 3 VenezuelaappliedforMERCOSURmembership in2009anditsrequestispendingapprovalbyParaguaysNationalCongress. Boliviasrequesthasnotevenachievedofficialformulationandonlyinformal meetingshavebeenconvened.ChileisnotafullmemberofMERCOSUR , but onlyanassociatemember. Asthe2007figuresillustrate , MERCOSUR comprisesa population of approximately241million ( BrazilandArgentinaaccountfor96percentofthe totalpopulation ) .MERCOSURsGDPreachedUSD2.4trillion , withBrazils andArgentinaseconomiesdominating ( accountingfor76percentand22per centoftotalMERCOSURGDP , respectively ) .Bywayofcomparison , Chinasand theEUspopulationsare5.5and2.0timesbiggerthanMERCOSURs , respectively , whiletheirGDPsare2.9and6.1timeslarger , asshowninTable1. 犜犪犫犾犲1 犘狅狆狌犾犪狋犻狅狀犪狀犱犌犇犘 ( 2007 ) Population GDP ( USD ), PPP GNI ( USD ) percapita ( PPP ) Brazil Argentina Uruguay Paraguay MERCOSUR China EU27 191.6million ( 5 ) 39.5million ( 31 ) 3.3million ( 130 ) 6.1million ( 101 ) 240.5million ( ≈ 4 ) 1.32billion ( 1 ) 497million ( ≈ 3 ) 1.83trillion ( 8 ) 523billion ( 22 ) 37.3billion ( 92 ) 26.5billion ( 103 ) 2.4trillion ( ≈ 6 ) 7.0trillion ( 2 ) 14.8trillion ( ≈ 1 ) 9 , 370 ( 98 ) 12 , 990 ( 77 ) 11 , 040 ( 86 ) 4 , 380 ( 133 ) 9 , 979 ( ≈ 94 ) 5 , 370 ( ≈ 122 ) 33 , 400 ( ≈ 34 ) Note:Numbersinparenthesesrefertotherankofthecountry ( orbloc ) inthestatistics.The symbol “ ≈ ” indicatesanestimate. Source:WorldBankforGDPandGNI , CIAWorldFactBookforpopulationandEurostatfor Europeanfigures. EmpiricalAnalysis:TradebetweenMERCOSURandChina / EU TrendsandFigures 2 69 3.犅犻犾犪狋犲狉犪犾犜狉犪犱犲犫犲狋狑犲犲狀犕犈犚犆犗犛犝犚犪狀犱犆犺犻狀犪 WhileChinaseconomicimportanceforLatinAmerica , andforMERCOSUR inparticular , hasincreasedexponentiallyoverthepastfewyears , countriesin theregionshouldbewaryofpotentialcompetitionintheirdomesticmarkets. SincetheopeningupoftheChineseeconomyandthereductionofexportand importcontrols , Brazilsand Argentinasforeigntradehasshownsustained growth , which accelerated after China undertooktradereforms — including significanttariffcuts — inthe1990s.Chinasaccessiontothe WTOin2001 furthercontributedtothisdynamic. From the Chinese perspective , however , MERCOSUR remainsarelatively unimportantexport destination.In 2007 , MERCOSURsimportsfrom China representedaround1.3percentoftotalChineseexports.Infact , ifweaggregatesome ofthedestinationsofChineseexports ( LatinAmerica , CIS , AfricaandtheMiddle East ), eachofthemrepresents , onaverage , 3.8percentofChineseexports.Thebulk ofChinesegoodsarechannelledtoAsia , NorthAmericaandEurope.Individually , the UnitedStatesandJapanareChinasmaintradepartners. 犜犪犫犾犲2 犆犺犻狀犪狊犈狓狆狅狉狋狊 , 犫狔犚犲犵犻狅狀犪狀犱犛犲犾犲犮狋犲犱犈犮狅狀狅犿犻犲狊 , 20062007 ( 犝犛犇犫犻犾犾犻狅狀 ) 2006 % 2007 % World 968.9 NorthAmerica 219.3 UnitedStates 203.8 Europe 215.4 EuropeanUnion 190.0 CIS  28.0 LatinAmerica 32.8 MERCOSUR 10.1 Africa 26.6 MiddleEast 36.9 Asia  410.7 Japan 91.6 100 1 , 220.1 100 22.6 252.5 20.7 21.0 233.2 19.1 22.2 288.4 23.6 19.6 245.6 20.1 2.8 48.1 3.9 3.3 48.1 3.9 1.0 16.1 1.3 2.7 37.4 3.0 3.8 54.8 4.5 42.3 501.0 41.0 9.4 102.1 8.3 Notes:  TheCommonwealthofIndependentStates ( CIS ) comprisesArmenia , Azerbaijan , Belarus , Georgia , Kazakhstan , Kyrgyzstan , Moldova , RussianFederation , Tajikistan , Tur kmenistan , UkraineandUzbekistan.  South , EastandSouthEastAsia. Source:PreparedbytheauthorsbasedondatafromCOMTRADEstatistics. 2 70 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation AsfarasMERCOSUR membersareconcerned , themajordestinationsfor Brazilianexportswere ( 2008 , 2007 ) :theUnitedStates ( 14percent , 15.8per cent ), Argentina ( 8.9percent , 9percent ), China ( 8.3percent , 6.7percent ) andtheNetherlands ( 5.3percent , 5.5percent ) .TheEUisrankedfirst , ifits membersfiguresareaggregated ( theNetherlands , Germany , ItalyandBelgium arethe main markets , inthatorder ), basedon MinistryofDevelopment , IndustryandForeignTradestatistics ( Alicewebdata ) .Ontheotherhand , the majorcountriesforArgentinasexportswere ( 2008 / 2007 ) :Brazil ( 18.6per cent , 18.7percent ), China ( 9.3percent , 9.4percent ), theUS ( 7.4percent , 7.4percent ) andChile ( 7.5percent , 6.6percent ) .TheEUranksfirstin2008 ifits membersfigures are aggregated , based on MERCOSUR statistics ( Aliceweb Mercosurdata ) .Takenasabloc , MERCOSURs majorexport partners ( 2008 / 2007 ) weretheEU ( 26percent , 27percent ), theUS ( 13.9per cent , 15.9percent ) andChina ( 9.8percent , 8.5percent )( Gambini2008:32 ; AlicewebMercosuldata ) . 3.1 ExportandImportTrends Inthe1980sandearly1990s , bothBrazilianandArgentineanexportsto Chinarepresentedlessthan3percentofthosecountriestotalforeignsales ( BarralandPerrone2007 ) .Althoughtradeincreasedsteadilyinthemidandlate 1990s , truly spectacular growth occurred onlyin thefollowing decade , as presentedinFigure1 , Figure2andFigure3. 犉犻犵狌狉犲1 犅狉犪狕犻犾 / 犆犺犻狀犪犜狉犪犱犲犅犪犾犪狀犮犲 犉犻犵狌狉犲2 犃狉犵犲狀狋犻狀犪 / 犆犺犻狀犪犜狉犪犱犲犅犪犾犪狀犮犲 2002 / 2008 ( 犝犛$ 犿犻犾犾犻狅狀狊 ) 2002 / 2008 ( 犝犛$ 犿犻犾犾犻狅狀狊 ) EmpiricalAnalysis:TradebetweenMERCOSURandChina / EU TrendsandFigures 2 71 犉犻犵狌狉犲3 犕犲狉犮狅狊狌狉 / 犆犺犻狀犪犜狉犪犱犲犅犪犾犪狀犮犲 2002 / 2008 ( 犝犛$ 犿犻犾犾犻狅狀狊 ) Source:PreparedbytheauthorsbasedondatafromAlicewebandSICOEX. Intheperiod20022007 , forinstance , BrazilianexportstoChinaroseby326 percent ( 551percentfortheperiod20022008 ) .Importgrowthratessoaredto fourdigitfigures — around 1 , 200 percent — during the period 20022008. ArgentinastradewithChinafollowedasimilarpatternofgrowthintheperiod 20022007 , whenexportsandimportsgrew by372 and1 , 442 percent , respectively ( seeTable3 ) . 犜犪犫犾犲3 犈狓狆狅狉狋狊犪狀犱犐犿狆狅狉狋狊 , 犃狀狀狌犪犾犆犺犪狀犵犲 ( % ) Year BrazilChina ArgentinaChina MERCOSURChina Exports Imports Exports Imports Exports Imports 2003 / 2002 79.8 38 127 118 91 49 2004 / 2003 20.0 73 6 95 15 79 2005 / 2004 25.6 44 21 60 24 48 2006 / 2005 22.9 49 9 40 18 51 2007 / 2006 27.9 58 49 63 33 50 2008 / 2007 52.6 59 -58 -47 16 20 2007 / 2002 326.4 712.2 372 1 , 442 332 792 2008 / 2002 550.7 1 , 190 97 720 401 974 Source:PreparedbytheauthorsbasedondatafromAlicewebandSICOEX. Nonetheless , thegrowthratesoftradebetweenBrazil / ArgentinaandChina differedsignificantlyin 2008.Ontheone hand , Brazilian exportsto China 2 72 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation reachedUSD16.8billionandimportsUSD20billion ( up53percentand59per cent , respectively , incomparisonto2007 ) .Argentina , ontheotherhand , exportedUSD2.2billionandimportedUSD2.7billion ( fallsof58percentand 47percent , respectively , incomparisonto2007 ) .Argentinasdeclinecanbe explainedbyseveralchangesinimportpolicy , suchasnonautomaticlicensing procedures , implementedinthesecondsemesterof2008. WithregardtoMERCOSURstradebalance , asonemightexpect , thedifference betweenthelowergrowthratesofexportsin comparisontoimportscaused MERCOSURtoregisterthefirstdeficitinitstradebalancein2006 ( USD875 million ) .Thatyearrepresentstheinflectionpointofthecurveaftermanyyearsof positivesurplus:subsequently , thedeficitreachedroughlyUSD3billionin2007and USD5billionin2008.AcontributoryfactorinthisreversalisthatimportsfromChina areconcentratedinproductsofhigheraggregatevalue , whilebasicproductsrepresent mostof MERCOSURsexports.Inthe wakeofthe worldfinancialcrisis , basic productssufferedmorefromthefallininternationalpricesformineralandagricultural commodities , especiallyinthesecondsemesterof2008. Ingeneral , thetwosmallerMERCOSURpartners , UruguayandParaguay , donotsignificantlyaffectMERCOSURexportfigures.Intheperiod20022008 , Uruguaysaverageexportsto Chinaamountedto USD 126 millionayear ( approximately1to2percentofMERCOSURsexports ) .Paraguaysaverage wasevenlowerin20022008:USD23million , accountingforlessthan0.5per cent of MERCOSURs exports. The impact of the two partners on MERCOSURsimportsismoresignificant , however.Asshownbelow , Uruguay andParaguayareresponsibleforanenduringdeficitin MERCOSURstrade balance , withapeakof14.1percentoftotalimportsin2006 ( USD1.6billion ) . 犜犪犫犾犲4 犆狅狀狊狅犾犻犱犪狋犲犱犜狉犪犱犲犫犲狋狑犲犲狀犝狉狌犵狌犪狔 / 犘犪狉犪犵狌犪狔犪狀犱犆犺犻狀犪 , 20022008 ( % ) Exports % Imports % Surplus 2002 111 , 304 3.0 286 , 679 12.0 -175 , 375 2003 112 , 108 1.6 361 , 660 10.6 -249 , 552 2004 157 , 407 1.9 661 , 181 10.8 -503 , 774 2005 189 , 222 1.9 958 , 451 10.6 -769 , 229 2006 184 , 794 1.5 1 , 825 , 514 13.5 -1 , 640 , 720 2007 214 , 119 1.3 2 , 163 , 477 10.3 -1 , 949 , 358 2008 264 , 590 1.1 3 , 379 , 310 10.5 -3 , 114 , 720 Source:SICOEX. EmpiricalAnalysis:TradebetweenMERCOSURandChina / EU TrendsandFigures 2 73 3.2 CompositionofMERCOSURExports Between2001and2003 , primaryproducts madeup55.5percentof BrazilianshipmentstoChina , doubletheproportionofsuchproductsinthe countrystotalexports.Semimanufacturedgoodsrepresented20.1percentof exportstoChinacomparedto14.7percentinoverallforeignsales.While shipmentsoffullyprocessedmanufacturesaccountedfor55.1percentofBrazils totalexports , theyamountedtoonly24.1percentofgoodsshippedtoChina. AsBarraland Perronepointout: “[ i ] naddition , Brazilianexports were concentratedinjusteightsectors , with agrifood and extractive minerals representing47 percentofthetotal.Interestingly , thisratiois virtually unchangedsince1985. ”( BarralandPerrone2007 ) Particularlysince2004 , primaryproductsparticipationinBrazilianexports toChinahasincreasedevenmore.Intheperiod20042008 , basicproductsmade up72.5percentofBrazilianshipmentstoChina ( reachingapeakof77.5per centin2008 ) .Ironoreandsoybeanswerethemainproductsshipped. Intheperiod20012003 , thelevelofexportconcentrationwasalsohighfor Argentina:threeproducts — soyaseeds ( 41percent ), unprocessedpetroleumoil ( 25percent ) andsoyaoil ( 18percent )— accountedfor84percentofallgoods exportedtoChina.Industrialmanufacturesrepresentedonly4percentofthe total.Intheperiod20032006 , theshareofagrifoodshipmentsreached72 percent.Theseproductsinvolvedno ( orverylittle ) processing , afigurefar higherthanthe49percentthatprimaryagriculturalandindustrialproducts ( excludingfuels ) representinthecountrystotalexports ( BarralandPerrone 2007 ) .Recentdatafrom 2007and2008appeartocorroborateArgentinean primaryexportstoChinaatthe80percentlevels:soyaseedsaccountedforan averageof50.5percent , whileunprocessedpetroleumandsoyaoiltogether representedanaverageof31.2percentofthoseexports ( SICOEX , aggregated byNCMchapters ) . 3.3 TradeBarriers InaccordancewithChinastradepolicyreview ( TPR ) carriedoutbythe WTO , Chinassimpleaverageappliedtariffis9.7percent ( thesameasin 2005 ) .Theaveragemostfavourednation ( MFN ) tariffratesforagriculturaland manufacturedproductswere15.3percentand8.8percent , respectively ( also thesameas2005 )( WTO2008:43 ) .Thehighestappliedtariffsareleviedon footwear , processedfoodandvegetableproducts ( WTO2008:50 ) . AsBarralandPerroneemphasise ,“[ t ] heChinesetariffstructurecontains 2 74 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation significantpeaks.Whilethesearemorepronouncedinthesectorofindustrial goods , theyremainrelevantintheagrifoodsector.Forinstance , hightariffsare leviedonunprocessedagriculturalproducts , suchasstrawberries ( 30percent ), plums ( 25percent ), wheatandrice ( 65percent ) andsugar ( 60percent ) .In contrast , marketaccessformineralsandfuelsislargelydutyfree , ortariffsare verylow ”( BarralandPerrone2007 ) . Overall , tradeandtraderelatedmeasures , bothattheborderandinternally , are stillusedasinstrumentsofChineseindustrialpolicy.TariffsremainoneofChinas maintradepolicyinstruments.Inadditiontohightariffsforprocessedfoodproducts , ArgentinasandBrazilsexportstoChinacontinuetofaceconsiderablenontariff barriers , includingtaxes , subsidiesandphytosanitarymeasures. 3.4 CriticalAnalysis MERCOSURprovidestheAsiangiantwithproductsthatareimmediately processedandeitherexportedtothirdmarketsorconsumedlocally.Tosome extent , MERCOSURsexportfrenzytowardsChinacanbeexplainedbythe phenomenalgrowthoftheChineseeconomy , aswellascertaincomplementarities betweentheindividualeconomiesinvolved.Indeed , importsfrom Chinahave registeredtheirhighestgrowthinsectorsinwhichArgentinaandBrazilhave majorcompetitiveadvantages.Thistrendcan also beexplained by Chinas strategyofenlargingthelistofitstradepartnersandreducingitsdependencyon commoditiessuppliers. AsimilarstrategyisbeingpursuedbyChinatowardsAfrica , whichalso involvesmassiveinvestmentsintheinfrastructureofthatcontinent. Althoughbilateraltradebetween MERCOSURandChinais , atleastin theory , basedoncomparativeadvantages , intraindustrialtraderemainsalmost nonexistent.ThisisnotthecasewithotherAsiandevelopingcountries , where thetradepatternreflectsthepartnersspecialisationanddivisionoflabouratthe globallevel ( BarralandPerrone2007 ) . ThereisnodoubtthattheprincipalchallengeMERCOSURisfacingisto maintainandimproveitsintegrationintotheChineseeconomy , whileatthesame timepreservingthecompetitivenessofitsindustrialproductsandeventually increasingthevalueaddedcontentofitsexports.TheBraziliangovernment , for instance , haslaunchedaspecificprogramme (“ Agenda China ”) aimingat enhancingBrazilianexportsoftechnologicalproductsandhighervalueadded productstotheChinesemarket ( AgendaChina2008:17 ) . 4 Ontheimportsside , theBraziliangovernmentisfrequentlypressuredby localproducerswithregardtotheopeningupoftheBrazilianmarkettoallegedly EmpiricalAnalysis:TradebetweenMERCOSURandChina / EU TrendsandFigures 2 75 unfairChinesecompetition , forinstanceinsectorssuchassteel , textilesand electronics.In2010 , thepressureescalatedinthewakeofglobalclaimsthat Chinahas been keepingitscurrency undervalued , which amountsto unfair competition. Asforexternaltrade , theInterAmericanDevelopmentBank ( IADB ) has estimatedthatonly2percentofArgentineanexportstothirdmarketsarelikely tobedisplacedby Chinesecompetition.Brazilappearstohaveslightly more causeforconcern:overthepastdecade , thecountryhaslost4percentofits exportstothirdmarketstoChina ( BarralandPerrone2007 ) . Anotherstudyestimatesin moredetailBrazilianexportlossesdueto Chinesecompetitioninrelevantmarkets ( PereiraandSouza2008:4445 ) .The studycomparestheoverlappingofBrazilianexportsandChineseexportsintwo periods:20032004and20062007.ItaffirmsthatBrazillost , intotal , USD2 billionintheArgentineanmarket , USD10billioninUSmarketsandUSD7.8 billioninEU markets.TheChinese “ effect ” onthoselossesisestimatedtobe 51.5percent ( Argentina ), 31.6percent ( US ), and35.7percent ( EU ), which amountstoroughlyUSD7billionintwoyears ( approximately2.4percentof Brazilstotalexports ) .ItisnoteworthythatChineseexportsevenmanagedto displaceBrazilianproductsthataregivenpreferentialtreatmentinArgentina , suchasmotorcycles , organicinorganiccomplexes , colouredbulbs , televisions andrubberfootwear ( PereiraandSouza2008:45 ) . Insum , inthefirstdecadeofthetwentyfirstcentury , MERCOSURs integrationintotheChineseeconomyseemstobereminiscentofaNorthSouth paradigmtypicalofthenineteenthcentury:theexchangeofraw materialsand manufacturedproducts , althoughnotfrom NorthtoSouth , geographically speaking.Thistrendwasparticularlyaccentuatedintheperiod20062008 , as observedintheempiricalanalysis.Withoutenteringintoadetaileddiscussionof thelongterm effects of a trade strategy based on natural resources , MERCOSURChinamarketsrevealopportunitiesforbothsides.Atthesame time , the overall picture presents tougher challenges to MERCOSURs members , sinceimportsfrom ChinahavesoaredandChinaisemergingasa potentialthreattoMERCOSURsexportsaroundtheworld. 4.犅犻犾犪狋犲狉犪犾犜狉犪犱犲犫犲狋狑犲犲狀犕犈犚犆犗犛犝犚犪狀犱狋犺犲犈狌狉狅狆犲犪狀犝狀犻狅狀 The EU representsanimportanttrading partnerfor MERCOSUR , with approximately26percentoftheblocsexports ( AlicewebMercosur ) .Nonetheless , fromthe EU perspective , MERCOSUR remainsarelatively minorexport destinationforgoods.Intheperiod20062007 , MERCOSURsimportsfromthe 2 76 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation EU represented approximately 2.7 per cent oftotal European exports. Individually , theUnitedStates ( 24.5percent ), Switzerland ( 7.5percent ), Russia ( 7.2percent ) andChina ( 6.7percent ) arethemaindestinationofEU exports. 犜犪犫犾犲5 犈犝犈狓狆狅狉狋狊犫狔犚犲犵犻狅狀犪狀犱犛犲犾犲犮狋犲犱犈犮狅狀狅犿犻犲狊 , 20062007 ( 犝犛犇犿犻犾犾犻狅狀 ) 2006 % 2007 % World 1 , 270 100 1 , 465 100 North America 373 29.4 395 27.0 UnitedStates 340 26.8 359 24.5 LatinAmerica 76 6.0 95 6.5 MERCOSUR 30 2.4 39 2.7 CIS 132 10.4 175 12.9 Africa 115 9.1 141 9.6 MiddleEast 177 13.9 205 14.0 Asia 311 24.5 363 24.8 China 80 6.3 98 6.7 Notes:WeexcludedintraEU27and “ OtherEurope ” fromtheoriginalstatistics. Source:PreparedbytheauthorsbasedonCOMTRADEstatistics. AmongindividualEU members , Germany ( 18percent ), theNetherlands ( 15.7percent ) andItaly ( 13.1percent ) werethemostimportantdestinations forMERCOSURsexports.Notably , asanEUentrypoint , theNetherlands ( theportofRotterdam ) accountsforanimportantshareofimportsonentry ( suchasironorefromBrazil ) .Germany ( 30percent ), France ( 15percent ) and Italy ( 15percent ) arethemainexporterstoMERCOSUR. 4.1 ExportandImportTrends Intheperiod19901998 , MERCOSURregisteredatradedeficitwiththe EU.From1998on , thisstartedtogointoreverse.Inthe2000s , asshown below , acontinuoustradesurplusinfavourofMERCOSURcanbeidentified. Indeed , thefigureindicatesarelativelystabledevelopment:anaverageofUSD 10.4billion / yearintheperiod20032008. EmpiricalAnalysis:TradebetweenMERCOSURandChina / EU TrendsandFigures 2 77 犉犻犵狌狉犲4 犅狉犪狕犻犾 / 犈犝犜狉犪犱犲犅犪犾犪狀犮犲 犉犻犵狌狉犲5 犃狉犵犲狀狋犻狀犪 / 犈犝犜狉犪犱犲犅犪犾犪狀犮犲 2002 / 2008 ( 犝犛$ 犿犻犾犾犻狅狀狊 ) 2002 / 2008 ( 犝犛$ 犿犻犾犾犻狅狀狊 ) 犉犻犵狌狉犲6 犕犲狉犮狅狊狌狉 / 犈犝犜狉犪犱犲犅犪犾犪狀犮犲 2002 / 2008 ( 犝犛$ 犿犻犾犾犻狅狀狊 ) Source:PreparedbytheauthorsbasedondatafromAlicewebandSICOEX. Despitethisfairlystablesurplus , inthepastfiveyears MERCOSUR exportsandimportsgrew by144percentand136percent , respectively , reachingUSD59billionandUSD52billion , respectively.Thismeansanaverage increaseof20percentand25percent , respectively , peryear.Theyear2008is anexception , sincetherewasadeviationfromthisoveralltrend , mainlydueto theworldfinancialcrisisand Argentinasfigures.WhileBrazilmaintained growthinbothexportsandimports , Argentinasexportsweresteadybutits importsdecreasedbyaround23percent. 2 78 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation 犜犪犫犾犲6 犈狓狆狅狉狋狊犪狀犱犐犿狆狅狉狋狊 , 犃狀狀狌犪犾犆犺犪狀犵犲 ( % ) Year Exports Imports Exports Imports Exports Imports BrazilEU ArgentinaEU MERCOSUREU 2004 / 2003 2005 / 2004 2006 / 2005 2007 / 2006 2008 / 2007 2007 / 2003 2008 / 2003 33.3 22 3 51 25 27 9.3 14 12 14 9 14 25.4 16 16 21 23 18 29.5 44 31 54 30 44 14.5 35 0 -23 12 22 136.6 132.1 75.0 221.4 117.9 145.8 170.9 212.6 75.1 63.1 144.2 136.4 Source:PreparedbytheauthorsbasedondatafromAlicewebandSICOEX. ComparisonoftheparticipationofUruguayandParaguayinMERCOSUR EUandMERCOSURChinatraderevealstwoimportantpoints.First , Uruguay andParaguaytogetherrepresent , onaverage , 3.5percentofMERCOSURs exports ( andlessthan1percentwithregardtoMERCOSURChina ) .Asimilar degreeof participation occurs on theimportside , with thetwo countries accountingforanaverageof3.2percentoftotalimports ( vs.11percentwith regardtoMERCOSURChina ) .Inotherwords , UruguayandParaguaydonot depress MERCOSURstrade balance , but add positively to the verified MERCOSURsurplusinallanalysedyears. 犜犪犫犾犲7 犆狅狀狊狅犾犻犱犪狋犲犱犜狉犪犱犲狑犻狋犺犈犝 , 犝狉狌犵狌犪狔 / 犘犪狉犪犵狌犪狔 , 20022008 ( 犝犛犇犿犻犾犾犻狅狀 ) Exports % Imports % Surplus 2003 1 , 023 4.2 606 3.5 417 2004 1 , 179 3.9 699 3.2 480 2005 1 , 087 3.3 763 3.1 325 2006 1 , 261 3.1 1 , 235 4.2 26 2007 1 , 671 3.2 1 , 259 3.0 412 2008 2 , 155 3.7 1 , 432 2.8 723 Source:SICOEX. 4.2 CompositionofTradeExports WithregardtoBrazil , in2008theEUimportedprimaryproducts ( 47per EmpiricalAnalysis:TradebetweenMERCOSURandChina / EU TrendsandFigures 2 79 cent ), semimanufactured ( 15percent ) and manufacturedproducts ( 38per cent ) .Thesenumbersarenearlythesameasin2003 ( 50percent , 13percent and36percent , respectively ) .Interestingly , asalsoobservedwithregardto Braziliantrade with China , thereislittlediversificationintermsofexport compositionovertwodecades ( Aliceweb ) .ItshouldbenotedthatBrazilisthe thirdlargestagriculturalexporterintheworld , andtheEU hasbeen , and remains , thetopdestinationforBrazilianagriexports ( ICONE2007:75 ) .At thesametime , theEUcontinuestobeamajorconcernintradenegotiationssince BrazilregardsEuropeanagriculturalprotectionismasimproper. IncomparisontoBrazil , theremainingMERCOSURmembershaveahigher concentrationofexportsintheagriculturalsector.In2007 , agrirelatedproducts represented76percent , 72percentand85percentofArgentinas , Uruguays andParaguaysexportstotheEU , respectively ( Eurostat ) .Takenasabloc , MERCOSURsexportscomprisefoodproducts ( 35percent ), rawmaterials ( 26 percent ) andmachineryandtransportequipment ( 25percent ) .AsregardsEU exportstoMERCOSUR , manufacturedgoodsarethemainrepresentativeitems ( 93percent ), withmachineryandchemicalsasthemainEUproducts. Insum , mostofMERCOSURsexportstotheEUarebasicproducts , with aconcentrationonagrirelateditems.Intheoppositedirection , theEUexports mainlymachinery , transportequipmentandchemicals. 4.3 CriticalAnalysis Overall , Brazilis , byfar , themajorMERCOSURplayerintheMERCOSUREU traderelationship ( around75percentofexportsandimportsto / fromtheEU ) ( Gambini2008 ) .TheMERCOSUREUtradebalancemakesthisevident ( notice , forinstance , theoverlappingofthetradesurpluscurves ) .Itshouldbenoted thatthe EU isalsothebiggestforeigninvestorin Brazil , accordingtothe BrazilianCentralBank. Anotherinterestingfeatureofthisrelationshipisthattherehasbeenlittle diversificationintheproductcategoriesofMERCOSURsexports.Forinstance , inthecaseofBrazilsexports , acomparisonofthe1988and2008figures indicatesthefollowingcomposition:basicproducts ( 49percent / 47percent ), semimanufactured ( 14percent / 15percent ) andmanufacturedproducts ( 37per cent / 38percent )( Aliceweb ) . Finally , itshouldbenotedthat , in1995 , MERCOSURandtheEUsigned theEUMERCOSURInterregionalFrameworkCooperation Agreement.The negotiations wereformallylaunchedinJune1999 andtariffand services negotiationsstartedinJuly2001.Marketoffersfrom bothsides , including 2 80 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation goods , services , governmentprocurementandinvestment , wereexchangedin September2004 , butwerenotdeemedsufficientforanagreement.Sincethen , MERCOSURandtheEUhavemetanumberoftimesatministerialandsenior officiallevels.Negotiationswereformallyresumedatthebeginningof2010and theyareongoing. 5.犆狅狀犮犾狌狊犻狅狀 Thischapterdevelopsanempiricalanalysisofthetradepatternsbetween MERCOSURChina and MERCOSUREuropean Union. With regard to MERCOSURChina , thedatashowthatbilateraltradehasboomedinrecent years , trackingChinasemergenceasamajorglobalplayer.However , thetrade patternthatemergesseemstohaveconsolidatedMERCOSURsroleasasupplier ofbasicproductsandarecipientofmanufacturedproductsfrom China.Two otherdimensionscanbeobserved:ontheonehand , thesurgeinChineseimports toMERCOSUR ( 972percentintheperiod20022008 ) andtheconsequent challengesto MERCOSURslocalindustries ; and , ontheotherhand , the potentialof Chinese products to displace MERCOSUR exports to third countries. MERCOSUREUtraderevealsaconsistentsurplusinfavourofMERCOSURin theperiod20042008 ( onaverage , USD10billion ) .Thisfairlysteadysurpluscannot bemisinterpreted , sinceexportsandimportsbetweenthoseregionsincreased , on average , by20percentand25percent , respectively.Moreover , similartothe MERCOSURChina pattern , MERCOSUREU bilateraltrade represents a paradigmoftheexchangeofprimarymanufacturedproducts , althoughnotinthe sameproportionasobservedinthefirstsetofdataanalysed. Notes 1.Inchronologicalorder , USD / EUR:0.945 ( 2002 ); 1.132 ( 2003 ); 1.244 ( 2004 ); 1.245 ( 2005 ); 1.257 ( 2006 ); 1.371 ( 2007 ); and1.473 ( 2008 ) .Thesefiguresare availableat:http: // www.federalreserve.gov. 2.TheacronymisacontractionoftheSpanish “ MercadoComúndelSur ” .InPortuguese , theblocisknownas “ Mercosul ” . 3.Theaccessionofnew membersisgovernedbyDecision28 / 05oftheCommon Market Council ( CMC ), anorganofMERCOSUR. 4.Also , BrazilandChinahaveinitiatedtalksonalocalcurrencypaymentsystemforforeigntrade operations.ItisworthnotingthatBrazilandArgentinaalreadyhaveasimilarsystem. References AgendaChina ( 2008 ), 犃犲狊犘狅狊犻狋犻狏犪狊狆犪狉犪犪狊犚犲犾犪犲狊犆狅犿犲狉犮犻犪犻狊犛犻狀狅犅狉犪狊犻犾犲犻狉犪狊 ( China EmpiricalAnalysis:TradebetweenMERCOSURandChina / EU TrendsandFigures 2 81 Agenda:PositiveActionsfortheTradeRelationsbetweenBrazilandChina ), Joint PublicationofBrazilianMinistries ( 2008 ), July , online:http: // desenvolvimento.gov. br / agendachina / index.php / sitio / inicial. Barral , Welberand NicolsPerrone ( 2007 ), Chinaand MERCOSUR:Perspectivesfor BilateralTrade , in: 犅狉犻犱犵犲狊 , 11 , 7 , online:http: // ictsd.net / i / news / bridges / 3164. Eurostat ( 2007a ), 犈狌狉狅狆犲犪狀犝狀犻狅狀犐犿狆狅狉狋狊 , 犅狔犘狉狅犱狌犮狋犌狉狅狌狆犻狀犵 , online:http: // epp. eurostat.ec.europa.eu /( follow “ ExternalTrade ”) . Eurostat ( 2007b ), 犃狉犵犲狀狋犻狀犪狊犜狉犪犱犲犅犪犾犪狀犮犲狑犻狋犺 犕犪犻狀犘犪狉狋狀犲狉狊2007 , online:http: // epp.eurostat.ec.europa.eu /( follow “ ExternalTrade ”) . Gambini , Gilberto ( 2008 ), 犈犝 27 犜狉犪犱犲狑犻狋犺 犕犈犚犆犗犛犝犚 犆狅狌狀狋狉犻犲狊2006 , Eurostat: StatisticsinFocus. Ministériodo Desenvolvimento , Indústriae Comércio Exterior , Aliceweb database , 犜犺犲 犅狉犪狕犻犾犻犪狀 犜狉犪犱犲 犛狋犪狋犻狊狋犻犮狊 , online:http: // epp.eurostat.ec.europa.eu / http: // aliceweb.mdic.gov.br / . MinistériodoDesenvolvimento , IndústriaeComércioExterior , AlicewebMercosuldatabase , 犜犺犲犕犲狉犮狅狊狌狉犜狉犪犱犲犛狋犪狋犻狊狋犻犮狊 , online:http: // www.alicewebmercosul.mdic.gov.br / . RodriguezAlcaletal. ( 2007 ), InstituteforInternationalTrade Negotiation — ICONE , 犗狏犲狉狏犻犲狑狅犳犃犵狉犻犉狅狅犱犛狋狉狌犮狋狌狉犲 , 犜狉犪犱犲犪狀犱犘狅犾犻犮犻犲狊犻狀犅狉犪狕犻犾 . Pereira , LiaVallsandAndréLuizSilvadeSouza ( 2008 ), AConcorrênciaChinesaeasPerdas Brasileiras:oqueMudou ? ( TheChineseCompetitionandtheBrazilianLosses:What HasChanged ? ) in: 犆狅狀犼狌狀狋狌狉犪犈犮狅狀犿犻犮犪 [ EconomicConjuncture ], December , 4445. Rocha , Janes ( 2009 ), BarreirasArgentinasJPreocupamEmpresriosLocais ( Argentineans BarriersAlready Worry LocalBusinessman ), in: 犑狅狉狀犪犾犞犪犾狅狉 犈犮狅狀犿犻犮狅 [ Valor Newspaper ], 17April , A5. SICOEX , online:http: // www.aladi.org ( follow “ Estadisticas ”, then “ Comerciode Bienes ”) . UnitedNations , COMTRADEdatabase , 犐狀犳狅狉犿犪狋犻狅狀犪狀犱 犇犪狋犪狅狀犐狀狋犲狉狀犪狋犻狅狀犪犾 犕犲狉犮犺犪狀犱犻狊犲 犜狉犪犱犲犛狋犪狋犻狊狋犻犮狊 , online:http: // comtrade.un.org / db / . WTO ( 2008 ), 犜狉犪犱犲犘狅犾犻犮狔犚犲狏犻犲狑 犆犺犻狀犪 , ReportbytheSecretariat , April16 , online: http: // www.wto.org / english / tratop _ e / tpr _ e / s19900 _ e.doc. 2 82 犆犺犪狆狋犲狉6 犜狉犪犱犻狀犵狑犻狋犺犌犻犪狀狋狊牶犐狊犜狉犪犱犲犘狅犾犻犮狔狑犻狋犺狋犺犲犈犝犪狀犱 犆犺犻狀犪犅犲狀犲犳犻犮犻犪犾狋狅犕犈犚犆犗犛犝犚 ? ?%*.35?%*=%..3 7@%.("'A 1.犐狀狋狉狅犱狌犮狋犻狅狀 TheSouthernCommon Market ( MERCOSUR ) wassetupin1991bythe signingoftheAsunciónTreaty.Itisanambitiousregionalintegrationproject bringingtogetherArgentina , Brazil , ParaguayandUruguaywiththeultimate objective of establishing a Common Market. Although various bilateral agreementsalreadyexistedamongthememberstates , atthetimetherewere severaleconomic , politicalandsocialincentivesthat madetheagreement desirable. The MERCOSURintegration process hasnotbeen straightforward or simple.Inadditiontothealreadycomplexinternalagenda , MERCOSUR , asan openregionalprocess , has maintainedabusy negotiationagenda withthird countries.Withinthisframework , MERCOSUR membercountrieshavesigned FreeTradeAgreements ( FTAs ) withallSouth AmericanSpanishspeaking countriesand with other countries beyond the region , such as Israel. MERCOSURhasalsosignedPreferentialTradeAgreements ( PTAs ) withLatin AmericanIntegrationAssociation ( ALADI ) memberstates , suchasCubaand Mexico 1 , andwithIndiaandtheSouthernAfricanCustomsUnion ( SACU ) . Notwithstandingthis progress with regard to agreements with third countries , andafterdiscontinuingFreeTrade Areaofthe Americas ( FTAA ) negotiations , theonlypending NorthSouthnegotiations werethose withthe EU.Thesenegotiationsalsohadthepeculiarityofbeinganegotiationprocessfor anagreementbetweentwoblocsofcountries , whichintroducednewcomplexities arisingfrom the peculiaritiesofthe production andtradestructuresofthe participatingcountriesandfrom thecharacteristicsoftherespectiveblocs TradingwithGiants:IsTradePolicywiththeEUandChinaBeneficialtoMERCOSUR? 2 83 socioeconomicdevelopmentpolicies.Atpresent , theprocesshasgroundtoahalt andnoagreementhadbeenreachedbythedateagreedfor2004.However , the learningcurveinitiatedinthiswayhasproveduseful. Withinthisframework and taking into accountthe abovementioned negotiationexperiencesandtheemergenceofChinaasaglobalplayer , itis importanttoanalysetheprospectsofincreasingtradewiththisother “ giant ” of theworldeconomy.Theobjectiveofthischapteristoreflectonthepotential opportunities and challenges of strengthened trade relationships between MERCOSUR , theEUandChina.Forsuchpurposes , inSection2ofthischapter themaincharacteristicsofMERCOSURarepresentedandthemostimportant restrictivefactors withregardtoreachingagreement withthe EU analysed. Furthermore , trading patternsareidentified and generallythe prospects of increasedtradewithChinaareexamined.Thechapterendswithsomegeneral reflectionson MERCOSURsnegotiatingexperienceswiththeEU , which may proveusefulforaneventualstrengtheningoftraderelationswithChina. 2.犕犈犚犆犗犛犝犚牶犕犪犻狀犆犺犪狉犪犮狋犲狉犻狊狋犻犮狊 MERCOSURisanintegrationprocessbetweenfourSouthAmericancountries withtheobjectiveofestablishingaCommonMarket.The1991TreatyofAsunción wasthelegalconstitutiveinstrumentforthecreationofMERCOSURandits mainobjectivesincluded:theintegrationofthefourmemberstatesthroughfree circulationofgoods , servicesandproductionfactors ; theestablishmentofa commonexternaltariff ; andtheadoptionofacommontradepolicytowardsthird parties ; thecoordination of macroeconomicandsectoralpolicies ; andthe harmonisationofthecountrieslegalframeworksinkeyareas. MERCOSURhasapopulationofabout247.4million , aGDPofUSD1 , 200 billionandanexportvolumeofapproximatelyUSD190billion ( 2006 ) .Thesize oftheterritories , theirpopulationsandtheparticipationofthefourmembersin theeconomicandcommercialactivitiesoftheblocshowlargeasymmetries. Brazilaccountsfor67percentofthetotalproductionoftheblocand80percent oftheinhabitants.Althoughthefoureconomiesinthegrouphavebeenclassified asmiddleincomepercapita , ArgentinahasaGNIpercapitaofUSD12 , 990 , UruguayofUSD11 , 040 , BrazilofUSD9 , 370andParaguayofUSD4 , 380 ( 2007 adjustedbyPPP ) . In2006 , MERCOSURexportedgoodsworthatotalofUSD190billion , whichrepresents1.6percentofworldgoodsexports.Nonregionalmarkets captured87percentoftheblocsexports ( threequartersbymid1990s ) .These marketshaveincreasedtheirparticipationinrecentyearssinceexportstothese 2 84 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation destinationsgrew by10percentayearonaverage , equivalentto2.5times quickerthanexportstotheregion.Exportmarketsareconcentratedtosome extent:66percentoftotalblocexportsgotothetop10 markets ( withthe USA , theEUandChinaontop , accountingfor20.7percent , 18.3percentand 7.6 per cent , respectively ) .Import markets of origin are even more concentrated , ledbytheEU , theUSAandChina ( 20.7percent , 20.0percent and8.7percent , respectively , incurrentdollars , 2007 ) .Overthepastfew yearsthe MERCOSURexportstructurehasseenincreasedparticipationfrom lesstraditionalmarketsoutsidetheregion ( perhapsinfluencedbysubstantial changesinrelativeprices ) .Exportsto Chinaand Russiarosetoanannual averageof27percentbetween2002and2006 , whileexportstotheUSAandEU grewby9percentand13percent , respectively. RegardingtherelativeimportanceofMERCOSURasanexporter , wecan seethatitisthetenthrankingEUsupplier ( 2.5percentoftotalEUimports ) andamongthetop15USsuppliers ( 2percentoftotalUSimports ) .Ithasa similarshareofChineseimports ( 2percent ) .Theblocsexportbasketis concentratedontheagriculturalsector , especiallyfood.Animalandvegetable productsandfoodrepresentedmorethanonethirdofthetotalamountexported tocountriesoutsidetheregionin2006.Mineralsandfuelsrepresented16per cent , commonmetals ( 10percent ), machinery ( 9percent ) andvehiclesand transportequipment ( 9percent ) .Itisworth mentioningthestrongregional positionofsoyaoil ( 74percentofworldtrade ), orangejuice ( 65percent ), flourandsoyapellets ( 54percent ), soyagrains ( 44percent ), bovinefrozen meat ( 43percent ), ethylalcohol ( 37percent ) andsugarcane ( 33percent ), amongotherthings ( Garbarinoetal.2008 ) . Regardingtheintegrationprocess , in1995theconstructionoftheCustoms UnionstartedwiththesigningoftheOuroPretoProtocolandthedefinitionofa CommonExternalTariff , afterafirststageofacceleratedtariffcutsamongthe fourmemberstates , duringwhichtheFreeTradeAreawasconsolidated.Ouro PretoalsolaiddownthepresentinstitutionalstructureofMERCOSUR. Workingouta Common Trade Policyisnotasimpletask andthe MERCOSURprocesscouldnotavoidcomplexity.Nevertheless , MERCOSUR hasmadeprogressinthenegotiationprocesstowardseliminatingthedouble collectionoftheCommonExternalTariffthroughtheapprovalofDecisionCMC 54 / 04and DecisionCMC N o 37 / 05 , andhasmaintainedthedefinitionofSpecial CommonRegimensandaCommonCustomsCodeintheregionalnegotiationagenda.In additiontocustomsandcommercialissues , MERCOSURhasmadeprogressinother social , politicalandproductionareas.Forinstance , MERCOSURhasconstituteda TradingwithGiants:IsTradePolicywiththeEUandChinaBeneficialtoMERCOSUR? 2 85 Parliament , aSocialInstituteandaPermanentRevisionTribunal. 3.犕犈犚犆犗犛犝犚犪狀犱狋犺犲犈狌狉狅狆犲犪狀犝狀犻狅狀 3.1 PotentialGainsandRisks AlthoughabilateralapproachbetweentheEuropeanUnionandtheLatin AmericancountriesstartedwiththeSanJosémeetingsin1984 , itisinthe1990s thatthe European Communityassumeda moreactiveroleinthesearchfor cooperationandassociationagreementswithvariousLatinAmericanintegration processes.Thisinterestcoincidedwiththestrengtheningintegrationprocesses alreadyexistingintheregionand withtheconstitutionofpromisingnew initiatives , suchasMERCOSUR.Italsotookplacewithintheframeworkofthe socalled “ GlobalEuropeanIntegrationModel ” thatpromotedcountryrelations beyondcommercialconsiderationsandinthedirectionofpoliticaldialogue , as wellascooperation. Itis withinthisframeworkthatthe EU and MERCOSUR signedan InterregionalFramework Cooperation Agreementin December1995 , in which theyexpressed theirintention to formalise cooperation agreements and to advanceinthenegotiationsinordertoestablishatradepartnershipagreement contemplatingreciprocaltradeliberalisationinaccordancewithGATT Article 24.Itisalsoimportanttonotethatin1995MERCOSURstarteditstransitional processtowardsaCustomsUnionaftertheOuroPretomeeting.Althoughthere wereexpressionsofinterestonthepartoftheEUaboutsigningagreementswith MERCOSURimmediatelyafterthesigningoftheTreatyofAsunción1991 , thesigning oftheInterregionalAgreementwasmadepossiblebytheinternationallegalpersonality conferredonMERCOSURbyArticle34oftheProtocolofOuroPerto. Thenegotiationsbetweenthe EU and MERCOSUR startedin 1999 , coincidingwithanotherhistoricaleventintheEU , theestablishmentofthe MonetaryUnion.Thesenegotiationswerecomplicatedbythefactthatthey involvedtwoCustoms Unions , withtheirowninternalconflictsofinterest concerningtheestablishmentofacommontradepolicy , andalsobecauseofthe NorthSouthaspect.Althoughtheagreementwasgivenconsiderableemphasis , itwasnotthefirstagreementbetweentwoCustom Unions:theEuropean CommunityandtheAndeanCommunityhadalreadyestablishedanarrangement ofsimilarnatureinApril1993. Fromaneconomicpointofview , inparticulartradeopportunities , the agreementwaspromotedbecausethetwomarketsareimportanttooneanother. TheEuropean Unionisa marketofover490 millionpeople , thethird most 2 86 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation populousmarketintheworldafterIndiaandChina , withaGDPpercapitaof overUSD22 , 000inPPP ( EU27 ) .Atthesametime , itisMERCOSURssecond largesttradepartner , aftertheUnitedStates.Morethan19percentoftotal worldtrade ( importsandexports ) iscarriedoutfromandtotheEU.Exportsto theEU represent morethan18percentof MERCOSURstotalexportsand almost21percentofitsimports.Inturn , theEUisoneofthemostimportant investorsin MERCOSUR ( Eurostat2007 ) .Morethan70percentofgoods exportedtotheEUareprimarygoods , mainlyagriculturalproductsandenergy. AlthoughMERCOSURhasanattractiveconsumermarketofabout247million people , ithasnotyetpassedthethresholdof2.5percentoftotalEUexports , which areconcentratedonmachinery , chemicalsandtransportequipment , whichrepresent about70percentoftotalEUimports.However , theEUsinterestinMERCOSURis alsogeopolitical , besidesthefactthatitisanimportantcommoditysupplierandanEU ForeignDirectInvestment ( FDI ) destination. From atheoreticalperspective , andasitisa NorthSouthagreement betweeneconomieswithrelativelycomplementaryproductivestructures , itwas expectedthatanEUMERCOSURregionalliberalisationagreementwouldcause arealignmentof bloc membersproduction structures , including sectoral contractionsandexpansions , andthatit would promotea moreefficient allocationofproductionfactors.Thiswouldstimulateregionalproductionand tradespecialisationinaccordancewiththerespectivecomparativeadvantages. Thiswouldimproveefficiencyasaconsequenceofeconomiesofscale , besides moredynamicgains. Allthingsbeingequal , itwasexpectedthatstaticgains ( tradecreation ) and dynamicgains ( efficiencyandproductivitygains , moreeconomicgrowthand attractionofinvestments ) wouldexceedthepossibleeconomiccostsofthe process ( tradediversionsamongthem ), andthatadequatepoliciescould compensatethepossiblelossesofsomecountriesorgroupsaffectedbythe integrationprocess , witharesultingincreaseofglobalwellbeing. SomeempiricalfindingsaboutthepossibleimpactsofanFTA between MERCOSURandtheEUsupportthistheory.Mostimpactanalyseshavebeen carriedoutusingmodelsofcomputablegeneralequilibrium ( CGE ) basedon optimisationmethods.Ingeneral , studieshaveobtainedpositiveresultsforboth blocs.InthecaseofMERCOSUR , theSIAMERCOSUR ( 2007 ) researchfinds thatfullliberalisation — ofbothgoodsandservices — betweentheblocswould haveapositivestaticeconomicresultof0.5percentofGDPforArgentina , 1.5 percentforBrazil , 2.1percentforUruguayandupto10percentforParaguay. Inthisstudy , gainsofastaticcharactercamefromtheexpansionofsectorsin TradingwithGiants:IsTradePolicywiththeEUandChinaBeneficialtoMERCOSUR? 2 87 whichMERCOSURhascomparativeadvantages , incontrasttotheEU , asa consequenceofthecomplementaritybetweentheblocs.However , decreases wouldbeobservedintextiles , thecelluloseindustry , thechemicalindustry , metals , automobilesandmachineryingeneral.Thepositiveeffectsofefficiency asaconsequenceofopeninguptocompetitionandattractionofinvestmentwould generateaglobalwelfaregainforbothblocs. Otherstudies , such as Diao , Díaz Bonilla and Robinson ( 2001 ), Monteagudoand Watanuki ( 2001 ), aswellasGiordanoand Watanuki ( 2001 )— despiteusingdatafrompriortothecrisisbywhichsomeMERCOSURcountrieswere affectedbetween1999and2001andnotincludingtheEU25 — showsimilarresults. Themethodologyemployedalsorefersto multiregionaland multisectorgeneral equilibriummodels , asconstitutingtheclassicstructureofastaticCGEmodel. Althougheachstudyintroduceddifferentadaptationstothebasicmodel , globalresultsgointhesamedirection , andshowanincreaseinrealGDPof between0.7percentand7.7percentforArgentinaandbetween1.3percent and4percentforBrazil.Inturn , exportstotheEUwouldincrease , dependingon theparticularstudy , bybetween4percentand13percentforBrazilandArgentina jointly.SpecificstudiesforParaguayandUruguayshowsimilarresults. Accordingtotheresultsofsimulations , arangeofimpactsonMERCOSURsectors maybeexpected.Wewouldobtainpositiveresultsinprimaryagriculturalgoods sectors ( vegetablesandfruits , cerealsandsugar , amongothers ) andinthefood industry ( especiallymeatanditsderivatives , aswellasdairyproducts ) .Amongthe mainpotentialnegativeeffectswecanexpectpotentialjoblossesinseveralareas ofmanufacturing ( forexample , automobiles , chemicals , electronicandcomputer products ) andofheavyindustry ( capitalgoods ), mainlyinBrazilandArgentina. Inthelongterm , theseeffectsmightbebeneficialintermsofjobsandincome , aslongasthe marketsoperate withacertainflexibilityandgovernments implementpoliciestosupportthedecliningsectors. TheresultsareconsistentwiththecurrentNorthSouthtradestructure whichinvolveslittleintraindustrialtradeandin which EU exportgoodsare concentratedintechnologyandskilledlabour , andMERCOSURiscompetitivein agriculturalandprimarygoodsingeneral. Inanycase , the motivesforsigningtheagreement werenotconfinedto marketaccessforthetwoblocsstrategicproducts.Otheraspectsshouldbe highlighted.Forexample , beforesigningtheFrameworkAgreementwiththe European Union , the UnitedStateshadalreadyproposedanagreement with MERCOSUR alongsidethe decision to start negotiationsfor a hemispheric agreementtakenattheMiamiSummitin1994.Thisinitiative , thefirstofits 2 88 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation kindinvolving MERCOSURinaNorthSouthcontext , mightpartlyexplaina certain “ dominoeffect ”( Baldwin1993 ) .Inthissense , thedesiretosigntrade agreementsarisesfromtheinternalpoliticalbalancewithineachcountryortrade bloc , wherethebalancebetweenforcesfavouringoragainsttheagreementmight determineadecisiontoseekprogressinregionalliberalisation.Tradeagreements signedbythirdcountriesmayleadtoasituationinwhichthedamageperceived byproagreementexportersisstrongenoughtoalterthebalanceofforces , as theyperceiveacommercialdisadvantageinagrowingnumberof markets , withoutobviatingthegeopoliticalincentivesinthedevelopmentofinternational policy , especiallyinlargecountries.OntheMERCOSURside , thesigningof theFrameworkAgreementbetweentheEUandtheAndeanCommunitycreated ariskoftradedeviationwithregardtosomeMERCOSURgoods. Ontheotherhand , takingintoaccountMERCOSURsstructureandprotection levels , thehemisphericfreetradeagreementgeneratedtheriskoftradedeviationto goodswithregardtowhichtheUnitedStateshadaregional , althoughnotaglobal comparativeadvantage.Thus , anFTA withtheEU may , tosomeextent , promotea positiveeffectoftradecreationandreducethenegativeeffectsofthetransferenceof protectiontogoodsfromtheNorthAmericaneconomies. Besidestheseeconomicarguments , andasBouzas ( 2004 ) mentions , the agreementwiththe EU meantthatthe MERCOSUR would haveexplicit CustomsUnionrecognitionasakeyplayerintheinternationaltradesystem. Secondly , theMERCOSURcountriesfelttheysharemorevalueswiththesense of Community with which Europe has promoteditseconomicand social integrationthanwithamorecommerciallyorientedarrangement , liketheone promotedbytheNorthAmericanFreeTradeAgreement ( NAFTA ) andFTAA. Regardlessoftheimportanceoftheseandotherincentives , theyshowed thatimportantproblemsandtensionstypicalofanagreementbetweentwo regionalblocsexistedandthatthey would haveemergedassoonasthe negotiationswereinitiated. 3.2 SensitiveIssuesandtheSituationofthePotential Losers Inordertochecktheresultsforecastbyneoclassicalinternationaltrade theoryitisnecessaryalsotoverifythemarketequilibriumhypotheses.Models basedonneoclassicaltheoryassumethatmarketsworkefficiently , whichmeans thatnoinformationasymmetriesexistbetweeneconomicagents , andthatprices andreturnsfromproductionfactorsmustbeflexibleenoughtoadjustsupplyto demand , while marketsofgoods , productionfactorsandfinance mustbe “ complete ” and adjustinstantly. However , these conditions arefarfrom TradingwithGiants:IsTradePolicywiththeEUandChinaBeneficialtoMERCOSUR? 2 89 observablereality.Marketflawsaremuchmorethanexceptionstothegeneral rulesofeconomics , and nationaleconomicpolicy decisions , as wellasthe characteristicsofnationalinstitutionsaffecttheresultsofeconomicdecisionsina varietyofways.Withinthisframework , theresultsautomaticallyexpectedfrom anintegrationprocessmaynotoccur.Furthermore , eveninputativeperfectly competitivemarkets , thedistributionofcostsandbenefitsduringanintegration processisnothomogeneous , eitheramongparticipatingcountriesoramongthe variouseconomicplayers.Thepossibilityofcorrectingthissituationbymeansof interregionalcompensation policiescollides withtherealityofinstitutional constraintsandthelegitimateinterestsofthedifferentpressuregroupswithin thecountriesconcerned.Therefore , conclusionsobtainedbypositiveeconomic analysisconflictwiththelimitationsofpoliticaleconomy. However , thepositiveimpactpredictedbyneoclassicalmodelswithregardto economicgrowthandglobalexportsafterbilateralliberalisation , donotspecifically accountforthecostsoftheadjustmentstobemadeinthelabourmarketandother factorscausedbychangesintheproductionstructuresandgeneratedbythenewtrade patternthatemergedfromliberalisation.Theseadjustmentcostswouldapplyaslong asinstitutionalandstructuralmarketrigiditiesexist. Thecomplexityoftheseprocessesandthemultiplicityofinterestsimplya needtointerpretdifficultiesandconflictsintermsofpoliticaleconomy.Inthis sense , regionalintegrationgoesbeyondthemaximisationofpotentialgainsand amountstoastrategicprocessinwhichaspectsofpoliticaleconomyconcerning adjustmentcostsandthestructuraltransformationoftheeconomiesconcerned mustbetakenintoaccount.Amongthetensionslikelytoarise , we might mentiontheadjustmentoflabourmarketsandpoliticallobbyingcarriedoutby sensitiveeconomicsectors , whichfunctionasimportantpressuregroups. Tradebetween the EU and MERCOSUR shows patterns ofclassic comparativeadvantage ; italso hasa marked degree ofcomplementarity. Analysisofthecharacteristicsofproductionsectorsandtradewithinthetwo blocksshowsthatinsomeareastherearenoglobalcomparativeadvantages , due toprotection withintheregionalmarket.Thatistosay , thesearegoodsor sectorswhosetradehasdeviatedfromtherestoftheworldandwhoseinterest groups ( countriesandsectors ) perceivetheregionalmarketasparticularly important.Suchsectors , togetherwithseveralsectorsthatsubstituteimports , havestrategicimportanceingovernmentdevelopmentpoliciesandaresupported byimportantpoliticalandsocialgroups. Pressure ( lobby ) groupsconstitutedaroundthesesectorsareusuallysmall , butwellorganisedandinformedandhavethecapacitytoinfluencepolitical 2 90 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation decisionsandshapepublicopinion , sometimesmakinganationalcauseoutof theirinterests.Inturn , therestofthe population , basicallycomprising consumers , isdispersedandlacksselfconsciousnessasaninterestgroup , althoughitisofcoursefar morenumerous.Therefore , nationalprotection policiesgenerallyfocusonsectorswhichhavenocomparativeadvantages.Thisis tosomeextentthecasewithEuropesagriculturalsectors. Negotiationsbetween MERCOSURandtheEUformallycommencedin 1999 , oncetheInterregionalAgreementwasratified , andafter16negotiating roundswerestillexperiencingdifficultieswhichhavehamperedfurtherprogress. Theagreementcanbedividedintothree “ pillars ”( Torrent2005 ) :political dialogue , cooperationandtrade.Withoutenteringintodetailsabouttariffcut proposalssubmittedbytheEU , theseproposalswerefounddifficulttoacceptbythe MERCOSUR countries.Thisrefers , among otherthings , to thelack offull liberalisationoftariffsforsomesensitiveagriculturalgoods , subjecttospecifictariffs and / orminimumentrypricestotheEU market.Thesegoodsareofkeyconcernto MERCOSUR , suchascereals , rice , dairyproducts , bovinemeat , poultry , sugarand tobacco.MERCOSURisaworldleaderintheproductionofmanyofthesegoodsandit hasglobalcomparativeadvantagesformostofthem ( seeTable1 ) . 犜犪犫犾犲1 犕犈犚犆犗犛犝犚犘狉狅犱狌犮狋狊狑犻狋犺犚犲犾犪狋犻狏犲犆狅犿狆犪狉犪狋犻狏犲犃犱狏犪狀狋犪犵犲狊 Harmonised Standard ( HS ) World Product participation RCAI 2006 12 + 15 + 23 Grains , oilsandpellets ( sunflowerandsoya ) 49.6 31.24 0201 + 0202 Bovinemeat 23.1 14.56 17 Sugarandconfectionersarticles 22.7 14.32 09 Coffee , tea , herbsandspices 14.6 9.19 26 Minerals , slagsandashes 12.2 7.69 41 Skinsandleathers 10.9 6.84 24 Tobaccoandelaboratedtobacco 7.9 5.01 10 + 11 Cereals , flours , etc. 7.3 4.62 44 + 47 + 48 Wood , woodpaste , paperandcardboard 2.9 1.82 Source:Garbarinoetal.2008:46. Inthissense , accordingtoQuijano ( 2008:178 ),“ thefourMERCOSUR countriesexportfood to the EU , wherein exchange , important global TradingwithGiants:IsTradePolicywiththeEUandChinaBeneficialtoMERCOSUR? 2 91 distortionsoccurasaconsequenceofEuropeanagriculturalpolicies ” .Therefore , theproblemisnotonlymarketaccess , butalsosubsidiesandinternalsupport , whichtendtodistortworldmarkets , sincetheEUoperatesasonebigcountry andMERCOSURisapricetaker. 犜犪犫犾犲2 犕犈犚犆犗犛犝犚狊犘狅狊犻狋犻狅狀犪狊犪狀犈狓狆狅狉狋犲狉 Product Worldtradeposition Productionposition Food Bioenergy Bovinemeat Flourand soyapellets Soyaoil Sugar Coffee Orangejuice Sunfloweroil Bioethanol 1st 1st ( 54%ofworldexports ) 1st ( 74%ofworldexports ) 33%ofworldexports 19%ofworldexports 1st ( 65%ofworldexports ) 19%ofworldexports 1st 1st ( 20%ofworldstocks ) 1st ( 51% ofworldproduction and41%ofworldsownarea ) 1st ( and 1stin soyaflour ), 34%ofworldproduction 1stcoffeeandsugar 1st 4th ( 14%ofworldproduction ) 2nd ( 42%ofworldproduction ) Source:Garbarinoetal.2008:48. Althoughtheagriculturalissueisakeyproblem , there maybeother difficultiesbeforeagreementisreached.Thesemayinclude: ( 1 ) NewcountriesenteringtheEU:countriesthataremainlyagricultural producersand MERCOSURscompetitorsforEUfinancialresources , which havefewculturallinkswiththeregion. ( 2 ) Issuesbeyondthescopeoftariffcutsshoweddivergences , suchas governmentpurchasing , geographicaldenominationandintellectualproperty. Furthermore , theexistenceoftariff “ peaks ” andtariffcontingents , export subsidiesandothermeasuresofsectoralprotectionmadenegotiationsdifficult , mainlybecausetheyarenotusedbyMERCOSUR , andsoinanyofferoftariff reliefitsmarketswillremainfullyopen , establishingaschemecharacterisedby an “ asymmetriclackofprotection ” . ( 3 ) The “ singleundertaking ” negotiation modality:onedissentingissue alonehamperstheprogressofthewholeagreement. ( 4 ) ThedemiseofFTAA , lessprospectofprogressonaMERCOSURUS agreementandthefailureoftheDohaRound , allofwhichmightreduceinterest intheEUMERCOSURagreement. ( 5 ) AccordingtoCienfuegos ( 2008 ), adebateisgoingonconcerningtheEUs 2 92 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation InterregionalForeignPolicyDoctrine ( regiontoregionrelations ) intermsofwhichthe negotiationofagreementswithstrategicsubregionalblocs ( MERCOSUR , CAN , SICAandsoon ) isgivenpreference.Anumberofvoicesarestartingtodefendthe optionofbilateralnegotiationwithselectedstrategiccountries. ( 6 ) 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 TradingwithGiants:IsTradePolicywiththeEUandChinaBeneficialtoMERCOSUR? 2 93 secondlargestworldeconomyintermsofforeigntradevolumegoesbeyondthese figures , becauseitsgrowingimportanceinthirdmarketshasgeneratedeffectson globalaggregateddemandwhichhaschangedexportpricesandaffectedtermsof traderelationshipsinLatinAmerica. Fromtheperspectiveofdynamicanalysis , theChinese marketisstill smallerthantheEUmarketasadestinationforMERCOSURexports , butinthe pastfewyearsthebalancehasbeguntochangeinthedirectionofChina , which hasbecomethemostrapidlygrowingmarketforMERCOSURexports. 犉犻犵狌狉犲1 犇犲狏犲犾狅狆犿犲狀狋狅犳犕犈犚犆犗犛犝犚犈狓狆狅狉狋犇犲狊狋犻狀犪狋犻狅狀狊 Source:Garbarinoetal.2008:45. Forthepurposeoforderingtheanalysisandfocusingontradelinks , wecan tryto understandtheimportance oftrade with Chinainthree different dimensions: ( 1 ) Chinasincreasingdemandfor MERCOSUR exports ;( 2 ) ChinasincreasingexportstoMERCOSURcountries ;( 3 ) Chinasdisplacement ofMERCOSURexportstothirdmarkets. WhiletheincreaseinChinesedemandpresentsanopportunityforgrowthto certainMERCOSURsectors , ontheotherhand , importsfromChina , although theybenefitconsumersandsomeproductionsectors , alsorepresentathreatto localcompanies.Likewise , the emergence of China as a global playerin internationalmarketstendstoaffectMERCOSURexportpatterns.Thissimple andpreliminaryoutlookissufficienttomakeitclearthatthestrengtheningof currenttrendswouldgenerateascenariooflosersandwinners , whichcallsfora moredetailedimpactassessment. BasedonaWorldBankstudybyLedermanetal. ( 2007b:Chapter12 ), we canidentifyanumberofimpactsonproductionsectorsandproductionfactors , as wellasatthesubregionallevel.TheWorldBankstudytriestoassesstheextent 2 94 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation towhichChinasandIndiasgrowthareaffectingthetradespecialisationpatterns ofLatin America and the Caribbean , based on a Revealed Comparative Advantage ( RCA ) index ( Vollrath1991 ) .Theauthorsexaminesubregionsand distinguishtheSouthernCone ( SC ), whichincludesBrazil , Argentina , Uruguay andChile.AlthoughthisdoesnotreferspecificallytoMERCOSURassuch , the aggregationisusefultohelpinfertheblocsbroadertendencies. First , theresultsofthisstudyshowthatChinasandtheSouthernCones tradespecialisation patterns between 1990 and 2004 evolvedin opposite directions , which wouldindicatesome progresstowardsa greaterexport complementarityinstead of morecompetitioninthesame products.Inthis sense , the WorldBanksstudyshowsthat , in1990 , ChinaandtheSouthern Conehadrelativecomparativeadvantageinnineandeightsectors , respectively , groupedatthreedigitsfromtheInternationalStandardIndustrialClassification ( ISIC ), andwerematchedinfoursectors:logging , fishing , crudepetroleumand foodmanufacturing.Aftera15yearterm , duringwhichthespecialisationpatterns changedandprogressivelyshowedaclearnegativecorrelation , wecanseethat , while thechangeswererelativelysmallintheSouthernCone , Chinachangedsignificantly , losingrelativecomparativeadvantageinprimarysectorcommodities ( agriculture , fishing , loggingandmining ) andgainingitinmanufacturing. Seekingthefactorsthatproducedtheseresults , theauthorsanalysed productionsectorsandreachedsomeinterestingconclusions.WhiletheSouthern Conespecialisedin naturalresourceexports , Chinaspecialised mainlyin manufacturing.AgroupofsectorsemergesinwhichtheSouthernConedidnot improveitspositioningininternationalmarkets , whileChinawaslosingrelative comparativeadvantageinparticularareas.ThiswouldindicatethattheSouthern Conelostoutinrespectoftheopportunitiespresentedinthisnewscenario.For othersectors , therelativecomparativeadvantagecorrelationwouldbepositive ( roomforcompetition ) orneutral ( doesnotshowadefinitetendency ) . 犜犪犫犾犲3 犆犺犪狀犵犲狊犻狀犛狅狌狋犺犲狉狀犆狅狀犲犛狆犲犮犻犪犾犻狊犪狋犻狅狀犘犪狋狋犲狉狀狊 SCRCAIIncreases ChinaRCAIstableovertime ChinaRCAIdecreasesovertime 220CrudePetroleum & Gas none 311FoodManufacturing1 313BeverageIndustries 385Professionalandscientific TradingwithGiants:IsTradePolicywiththeEUandChinaBeneficialtoMERCOSUR? 2 95 Positivetrendorabscenceofatrend 121Forestry 122Logging 130Fishing 210CoalMining 323Leatherandproducts 324Footwear 331Woodandproducts 341Paperandproducts 351Industrialchemicals 352Otherchemicalprod. 353Petroleumrefineries 354Miscell.petroleumpr 355Rubberproducts 356Plasticproducts 362Glassandproducts 369Nonmetallicmineralps 372Nonferrousbasicind. 383Electricalmachinery 384Transportequipment 390Otherindustries ChinaRCAIIncreases SCRCAIstableovertime SCRCAIdecreasesovertime 332Furnitureandfixtures 342Printingandproducts 361Pottery , china & earthenware 381Fabricatedmetalproducts 382Machineryexceptelectric 312FoodManufacturing2 314Tobacco 321Textiles 322WearingApparel 371Ironandsteelbasic ChinaRCAIdecreasesovertime SCRCAIstableovertime 111Agriculture & livestock 113Hunting & trapping 230Metaloremining 290OtherMining Source:BasedonLedermanetal.2007b:chapter12 , table2. Analysingthedevelopmentoftherelativecomparativeadvantageindexby meansofeconometricregression , thestudyconcludesthatbilateraltradebetween Chinaandtheregionhasnotbeensignificantenoughtoexplainthechangein specialisationpatterns ( possiblybecausethisbilateraltradehasnotyetreacheda significantvolume , compared to totaltrade ) .In addition , in this econometric regressionthereweresomesignsofimpactonregionalproductionfactors. The mostconclusiveaspectinthisrespectisthatlabour ( theonly statisticallysignificantvariable )— inparticular , lessskilledlabour — hasbeen mostnegativelyaffectedbythechangesintradepatterns.Thisresultturnsout 2 96 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation tobeintuitivelyreasonable , sinceamongthemost “ displaced ” sectorsislabour intensivemanufacturing ( forexample , textilesandclothing ), whichutilises considerableunskilledlabour. SomedescriptionsoftradeinthesesectorsshowstronggrowthinChinese exportstoMERCOSURintextiles , clothingandfootwear , whichreinforcedthe resultsmentionedabove.Inthefootwearsector , in1999 , importstotheregion accountedfor93 percentoftotalChineseimports , whilein 2006they representedonly71percent.Intheclothingsector , in1999 , importstothe regionexceededChineseimportsby1.8times , whilein2006theybarelytotalled 72.7percentofChineseimports.Themostdramaticcase , however , istextiles , sinceimportstotheregionexceededtheimportsofChinesefabricsby8.5times in1999 , butin2006theyweredowntoonly94percentofthem.Thetrendis clear ( SATSM2008 ) . Ontheotherhand , accordingtoUNCTAD ( 2005 ), intermsofdemand composition , Chinasgrowth — withtheresultingincreaseinpercapitaincome andstrongmigrationtothecities — hasprovokedachangeinfoodpreferences , causingafurtherriseindemandforlivestockproducts , oilcrops , vegetableoils , fruitandvegetables , aswellasariseintheuseofenergy , productsinwhich LatinAmericaishighlycompetitive. 5.犆狅狀犮犾狌犱犻狀犵犚犲犿犪狉犽狊 Inlight ofthe generalconsiderations abouttrade relations between MERCOSURandtheEUpresentedabove , whichemphasisednegotiationsonan FTAandthecharacteristicsoftradepatternsbetweenMERCOSURandChina , itispossibletodrawanumberofconclusions. Aslong asthespecialisation of Chineseexportsadvancestowards more comparativeadvantagesin sectors with more valueadded ( a high degree of transformation ) andleavesmoreroomforsectorsmoreintensiveinnaturalresources , theEU , duetoitsdevelopmentstrategy ( littlerelatedtoitsresources ), hasbeen inclinedtoprotectthissectorofitseconomy.InEurope , therearenoticeable differencesbetweentheproductionpatternsofitsmemberstates , andthusto onepartofitsagriculturalproduction ( concentratedincertaincountries ) the intraregionalmarketisveryimportant.Ontheotherhand , theCAPandits basiscontinuetobeimportanttoEUsocioeconomicpolicyandtoits “ collective consciousness ” .ThiselementisnotpresentwithregardtoChina , where , onthe contrary , theneedtoensurecertain minimumlevelsoffoodprovision , raw materialsandenergy maygeneratetradeopportunitiesandchancesforthe creationofproductionchainsbetweentheMERCOSURcountriesandChina. TradingwithGiants:IsTradePolicywiththeEUandChinaBeneficialtoMERCOSUR? 2 97 Inthisrespect , awidevarietyofchallengesandopportunitieswouldarise fromanytraderelationship , sincethegroupoflosersandwinnersisdifferent , andtherefore , potentialnegotiatingagendas wouldcorrespondtodifferent objectivesandrestrictions.MERCOSURsnegotiationswiththeEU havethe additionaldifficultyoftryingtoreconciletheinterestsofmultiplepartnerswith differentlevelsofsocioeconomicandtechnologicaldevelopment.Inthissense , the MERCOSUREU negotiationexperienceisnotadirectreferencefora possiblenegotiationprocessbetweenMERCOSURandChina. Despitethis , andbeyondthedifferencesinthetraderelationshippatterns between MERCOSUR and Chinaandthe EU andtheparalysing of EU MERCOSUR negotiations , thereis muchto belearntfrom thisnegotiation experience.Onefactorwasthatitwasanegotiationprocesswithaneconomy manytimeslargerthanthatofMERCOSURinsizeandinexports.Itwasalsoa processin whichthepartnersaregeographicallydistantandverydifferent culturallyspeaking , andinwhichasignificantpartofthereasonsfornegotiating thistypeoftradeagreementistoavoidtradediversionsofthekindwhichmight occurifthepartnersignedtradepreferenceagreementswiththirdcountries. Moreover , andbeyondthedefinitionof MERCOSURsexternalagenda , tradestatisticsshowthatEUpoliciesandtheemergenceofChinaintheglobal marketarealreadychanging MERCOSURpatternsoftradespecialisationand production. WhatdoesthedeepeningoftraderelationswithChinameanforMERCOSUR ? TheChineseeconomysexponentialgrowthduringthepast15yearsandthestill relativelyveryhighgrowthin20092010inthecontextofrecessioninthe developedcountrieshasmaintainedahighlevelofdemandforrawmaterials , and partlyrevaluedthe MERCOSUR exportprofile.Ithasalsostrengthened MERCOSURspositionforothertradenegotiationprocesses , includingfurther processeswiththeEU. Similarly , Chinassignificantgrowthhasledtochangingtradepatterns towardsthecreationofcomparativeadvantagesformanufacturedgoods , which hasfostered greatercomplementarity withthe MERCOSUR countries.A strengtheningoftradewithChinamayincreasegainsforMERCOSURsectors whichhavetraditionally hadcomparativeadvantages withregardto China. Likewise , a stronger relationship with the Chinese market may enable MERCOSURtotakeadvantageofopportunitiesincertainsectorsthatChinais graduallyabandoningasitentersmoreadvancedstagesofproduction , atleast duringtheperiodinwhichChinasaccelerateddevelopmentgeneratesgradually higherlabourcosts. 2 98 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation Thisscheme would bringtotheregion atendencytowards greater specialisationingoodsforsectorsstronglycommittedtotheuseofnatural resources , suchasraw materials , foodandfuels.Butisthisthepatternthat MERCOSURdesires ? Asthedatashow , thestrongRCAsectorsoftheSouthern Conearelowintensiveintermsoflabour , andthemorethreatenedsectorsare thoserequiringmoreunskilledlabour , suchassectorsinwhichChinaisstilla worldleaderandwhicharerelativelyjobsensitiveintheregion , suchastextiles andclothing , automobilesandspareparts.Therefore , inapassivescenario , therewouldbenegativepressureonthelabourmarketandnegativeimpactson povertyindices.Likewise , thefactthattradespecialisationisbasicallylocatedin thefoodsectormakesthissectortradableandexposesittointernationalprice volatility.Aslongasinternationalpricesincreasetherewillbeanegativeimpact onthecostofthebasicconsumptionbasketandthiswouldnegativelyaffectthe mostunprotectedsocialgroups. Whatshouldbedone ? JustasinlessthantwodecadesChinastoppedbeingan economybasedonarelativeabundanceoflabourandlowrealwages ( andthereforea highrealexchangerate ), similarlyMERCOSURshouldpursuemediumtolongterm policiestoenhancetheglobalcompetitivenessofsectorswithhighervalueadded , thoughwithoutabandoningitsinternationalinsertionbasedontherelativeabundanceof naturalresources.Thesestrategieswouldhavepositiveeffectsonthelabourmarket , socialindicators , thebalanceofpayments ( giventheinternationalpricevolatilityof commodities ) andtheenvironment. Chinasexperienceprovidessomeinterestingreferences:productivitygains arenotgeneratedbyclosinganeconomy , butbygraduallyandorderlyexposing thetradesectortocompetition.Buttheproductivesectorsmustbepreparedfor this challenge.Improving production factors , designing adequate education policies , anddevelopinginnovationandFDIattractionpoliciesareonlyafewof themorerelevantfactors.Aneconomyscompetitivenessisalsoimprovedby publicprivate , publicpublic and privateprivate cooperation ( clusters and productivevaluechains , forinstance , arean efficienttoolforimproving competitiveness , together withtheconditionsforlocaldevelopment ) .Such policiesmayinvolveanationalbutalsoaregionaldimension , andthereforethe articulationofproductionnetworksamongpublicinstitutionsseemsrelevantfor themembersofMERCOSUR. Finally , thereismuchroomforChinaand MERCOSURtocooperateand shareexperiences.Therefore , cooperationisanotherstrategylikelytoproduce significantresultsinthemediumterm. 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UNCTAD ( 2005 ), 犜狉犪犱犲犪狀犱 犇犲狏犲犾狅狆犿犲狀狋犚犲狆狅狉狋2005 , United NationsConferenceon TradeandDevelopment. Vaillant , M. ( 2007 ), How to Rescuethe Trade Agreementbetweenthe EU and MERCOSUR , in: 犜犺犲犕犈犚犆犗犛犝犚犆犺犪犻狉犃狀狀狌犪犾犛犲犿犻狀犪犾 , Paris:MERCOSURChair ofSciencePo. Venables , A.J. ( 2003 ), WinnersandLosersfrom RegionalIntegrationAgreements , in: 犈犮狅狀狅犿犻犮犑狅狌狉狀犪犾 , 113 , 747761. Venables , A.J. ( 2005 ), 犚犲犵犻狅狀犪犾犇犻狊狆犪狉犻狋犻犲狊犻狀 犚犲犵犻狅狀犪犾犅犾狅犮狊 : 犜犺犲狅狉狔犪狀犱 犘狅犾犻犮狔 , Brazil:IADB. 3 01 犆犺犪狆狋犲狉7 犗狆狆狅狉狋狌狀犻狋犻犲狊犪狀犱犆犺犪犾犾犲狀犵犲狊犉犪犮犻狀犵犆犺犻狀犪犪狀犱犕犈犚犆犗犛犝犚 犻狀狋犺犲犆狅狀狋犲狓狋狅犳狋犺犲犉犻狀犪狀犮犻犪犾犆狉犻狊犻狊 B# 0#3<1,'A 1.犗狏犲狉狏犻犲狑狅犳犈犮狅狀狅犿犻犮犚犲犾犪狋犻狅狀狊犫犲狋狑犲犲狀犆犺犻狀犪犪狀犱犕犈犚犆犗犛犝犚 1.1 BilateralTradeRelations Traderelationsbetweenthe Peoples Republicof Chinaand member countriesoftheSouthAmericanCommonMarket ( MERCOSUR ) datebackto the1950s.Intheearly1960s , whenChinawasexperiencinggreatdifficulties , grainmerchantsinArgentinadefiedtheeconomicembargoimposedbyWestern countrieson Chinatoconductconsiderablegraintransactions with China , showingcourage whichhassincebecomeafamiliartaleintheSinoLatin Americantradecommunity. Forhistoricalreasons , suchasalackofformaldiplomaticrelations , the isolationofChinaseconomy , andthesufferingsoftheGreatLeapForwardand theCulturalRevolutionbeforetheadoptionofamoreopenpolicy , tradebetween ChinaandSouthAmericancountriesremainedatalowlevelforalongtime.As lateastheearly1990s , tradebetweenChinaandMERCOSURstoodatamere USD800million ( 1991 ) .Despitetheaccelerationingrowth , itwasstillless thanUSD5billionin2000.Inthelastdecadeofthetwentiethcentury , average annualtradebetweenthetwopartieswasamereUSD2.7billion.Inthefirst twoyearsofthetwentyfirstcentury , Latin AmericasufferedfromtheUS economicrecession , whichkeptthegrowthrateofbilateraltradebetweenChina andMERCOSURonaparwiththepreviousdecade.Itisonlyinthepastsix yearsthattradebetweenChinaandMERCOSURhasgrownsubstantially. 1 Between2003and2008 , tradebetweenChinaand MERCOSURgrew rapidly.In2003 , bilateraltradeexceededUSD10billionforthefirsttime. 3 02 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation Afterthat , itgrew atanannual49.7 percenttoreach USD 65 billionin 2008 , 7.9percenthigherthantheaveragetradegrowthbetweenChinaand LatinAmerica.Duringthisperiod , ChinasexportstoMERCOSURgrewfrom lessthan USD3billiontoapproximately USD25.6billion , atanannual growthrateof48percent , 7.6percenthigherthanChinasaverageannual exportstoLatinAmerica.Chinasimportsfrom MERCOSURalsoshotup , fromlessthanUSD9billiontooverUSD39billion , atanannualgrowthrate of47.2percent , 2.5percenthigherthanChinasaverageannualimports fromLatinAmerica. 犜犪犫犾犲1 犜狉犪犱犲犫犲狋狑犲犲狀犆犺犻狀犪犪狀犱犕犈犚犆犗犛犝犚20032008 ( 犝犛犇100犿犻犾犾犻狅狀 ) 2003 2004 2005 2006 2007 2008 ExportsfromChina 28.46 49.71 66.88 101.14 160.2 255.59 ImportsintoChina 86.62 121.07 140.21 169.44 250.3 397.54 Totaltradevolume 115.08 170.78 207.09 270.58 410.5 653.13 Source:GeneralAdministrationofCustomsofPRChina2009. Accordingtothe General Administration of Customsofthe Peoples RepublicofChina , sincethebeginningofthenewcentury , Chinasexportsto MERCOSURhaveaccountedforanaverageof32percentofitstotalexportsto LatinAmerica , andChinasimportsfrom MERCOSURhaveaccountedforan averageof58 percent ofitsimportsfrom Latin America.Therefore , MERCOSURconstitutesamajorsourceofimportsforChina. ChinaslargesttradepartnersinMERCOSURarethetwolargestmember countries:Braziland Argentina.In 2008 , Chinasexportsto Braziland Argentinaaccountedfor73 percentand20 percentoftotalexportsto MERCOSUR , respectively , oratotalof93percent.ChinasimportsfromBrazil andArgentinaaccountedfor75percentand23percentoftotalimportsfrom MERCOSUR , respectively , oratotalof98percent. Trade between China and the two smallest member countries of MERCUSORislow , however.In2008 , Chinasexportsto Uruguayand ParaguaystoodatUSD1.012billionandUSD759million , respectively , or4per centand3percentofChinastotalexportstoMERCOSUR.Inthesameyear , ChinasimportsfromUruguayandParaguaywereUSD624millionandUSD25 million , respectively , or1.6percentand0.1percentofChinastotalimports from MERCOSUR. Chinas mainexportsto MERCOSUR areelectromechanicalproducts , OpportunitiesandChallengesFacingChinaandMERCOSURintheContextoftheFinancialCrisis 3 03 chemicalproducts , basemetalsandmanufacturedgoods.Themainimportsinto Chinaareminerals , forestryproductsandanimalhusbandryproducts.According itsofficialstatistics , BrazilmainlyexportstoChinamineralsandplantproducts , andimportsfromChinamainlyelectromechanicalproducts , chemicalproducts , basemetalsandmanufacturedgoods.Chinaismaintainingitsleadershipinthe exportoflabourintensiveproducts.Itstextileproductsandraw materials , furnitureandtoys , lightindustryproductssuchasshoes , bootsandumbrellas rank , respectively , fourth , ninthandtenthinBrazilsHarmonisedSystem ( HS ) categoryofimportsfromChina , accountingfor36.6percent , 45.2percentand 70.5percent , respectively. AccordingtoofficialArgentinestatistics , ArgentinaexportstoChinamainly plantproducts , especiallyoilseeds , plantandanimalgrease , mineralsand leatherproducts.Argentinaimportsfrom China mainly electromechanical products , chemicalproducts , transportationequipment , textileproductsandraw materials. Sincethebeginningofthetwentyfirstcentury , theshareofSinoLatin AmericantradeinChinasforeigntradehasrisensignificantly , fromabout3per centto6percent.LatinAmericahasbecomeoneofChinasmostimportant trading partners. Mutualcomplementarity , mutual benefits and reciprocity characterisethepartnership.MERCOSURhascontributedgreatlytotherapid growthinSinoAmericantrade.BrazilisChinaslargesttradingpartnerinLatin America , andinApril2009ChinabecameBrazilslargesttradingpartnerforthe firsttime.ArgentinaisChinasfourthlargesttradingpartnerinLatinAmerica. ChinaisArgentinaslargesttradingpartner , secondlargestexportmarketand thirdlargestsourceofimports. 1.2 SubstantialProgressin Economicand TechnologicalCooperation with China:TheCasesofBrazil , ArgentinaandUruguay 犛犻狀狅犅狉犪狕犻犾犻犪狀犆狅狅狆犲狉犪狋犻狅狀 Chinaisthemostpopulousdevelopingcountryintheworld , whileBrazilis the most populous developing countryin the Western hemisphere.Both economiesaregrowingrapidly.Owingtothelateestablishmentofdiplomatic relationsandapolicyonbothsidesoftreatingdevelopedcountriesastheir diplomaticpriority , investmentandeconomiccooperation betweenthetwo countriesstartedratherlate.However , inthepastfiveyears , thenumberof economiccooperationprojectsbetweenthetwocountrieshasbeenincreasing , as hasthesizeofinvestments. ChinastartedeconomiccooperationwithBrazilin1984 , firstintheformof 3 04 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation projectcontractsandexportoflabourservices.Successfullycompletedprojects includeaerialsurveysforBrazilsterritorialmanagementandportdredging.By October2008 , ChinahadsignedUSD3.3billionworthoflabourservicesand designconsultancycontracts , withUSD2.09billionalreadyrealised. AccordingtoChineseMinistryofCommercedata , bytheendofSeptember 2008 , ChinasnonfinancialsectordirectinvestmentsinBrazilamountedtoUSD 210 million , mainlyintheareasof mining , timberprocessing , motorcycle manufacturingandhouseapplianceassembly.ByOctober2008 , 447Brazilian investedforeignenterpriseshadbeensetupinChina , withatotalinvestmentofUSD 270million , mainlyintheareasofregionalaircraft manufacturing , compressor manufacturing , coal , realestate , carpartsmanufacturing , hydropower , textilesand garments ( ChineseMinistryofCommerce2010 ) . Largecompaniesonbothsidesareshowinganinterestinformingalliances. BaoSteelinShanghaiformedajointventurewithBrazilsCompanhiaValedoRio Doce ( CVRD ), theworldslargestironoreproducerandexporter , tooperate minesandsteelmillsinBrazil.Chinalcosignedaframeworkagreementwith CVRDtobuildanaluminaplantinBrazilwithanannualcapacityof1.8million tonnes.SinopecsignedaframeworkagreementwithBrazilsPetrobrastoexplore andexploitoilandnaturalgasinBrazilorathirdcountry.Theregionalaircraft productionlinein Harbin , ajointventurebetween Empresa Brasileirade Aeronutica ( EMBRAER ) andChinaAviationIndustryCorporationII ( AVIC II ), wasputintooperationin2003.LargenationalorprivatebanksfromBrazil havealsosetuprepresentativeofficesinChinatoprovidefinancialservicesto companiesinbothcountries. The SinoBrazilian Earth Resources Satellite Project has been going smoothlysinceitscommencementin1988.Bytheendof2007 , thecollaboration betweentwocountrieshadresultedinresearchanddevelopment ( R & D ), aswell asthelaunchingofthreeearthresourcessatellites , thedatagatheredbywhich areprovidedfreetootherdevelopingcountries.Twomoresatellitesaretobe launchedbefore2013.InJanuary2009 , theFederalUniversityofRiodeJaneiro setuptheBrazilChinaCentreofInnovativeTechnologyResearchtogetherwith TsinghuaUniversitytoconductresearchonglobalclimatechangeandenergy security.Chinaalsois playing anincreasinglyimportantrolein Brazils infrastructureanddeepseaoilexploration. DuringthevisitbyBrazilianPresidentLuladeSilvatoChinainMay2009 , thetwocountriesagreedtofurtherdiversifytheirbilateraltradestructureandto increasebilateraltradevolumes.Inthecontextofthecurrentglobalfinancial crisis , theyalsoagreedtodeepencooperationincustoms , animalandplant OpportunitiesandChallengesFacingChinaandMERCOSURintheContextoftheFinancialCrisis 3 05 inspectionandquarantine , toremoveobstaclesintheabovementionedareasand tofacilitateandsecurebilateraltrade.Bothsidesarecommittedtolaunching initiativesto encourageand support mutualinvestmentin such areasas infrastructure , energy , minerals , agricultureandindustry , especiallyinhigh techandbiofuels.ThefruitfuleconomiccooperationbetweenChinaandBrazil hasbecomearolemodelforSouthSouthcooperation. 犛犻狀狅犃狉犵犲狀狋犻狀犲犆狅狅狆犲狉犪狋犻狅狀 SimilarprogresshasbeenmadeineconomiccooperationbetweenChinaand anothermajor MERCOSURcountry , Argentina.When ChinesePresident Hu Jintaovisited Argentinain November2004 , thetwocountriesreached a consensusontheestablishmentanddevelopmentofastrategicpartnership.The ArgentinegovernmentrecognisedChinasmarketeconomystatus.Thetwosides signedtheFrameworkAgreementbetweenChinaandArgentinaonCooperation in the Peaceful Utilisation of Space Technology , a Memorandum of Understanding ( MOU ) ontheImplementationPlanofChineseTouristGroupsto Argentina , anMOUonCooperationintheRailwayProjectandanMOUonthe EnhancementofExchangeandCooperationintheFieldofEducation. Whenitcomestothecommercialisationofsatelliteimagery , Argentinacan provideawealthofsatelliteimagesfortheuseofagriculture , forestry , banks andinsurancecompanies , municipalplanning , oilandgas , as wellas mine exploration. The Federal Society for Applied Research ( Investigaciones AplicadasSociedaddelEstado , INVAP ), awellestablishedcompanyinthis area , islookingforwardtocooperatingwithChina. Owingtothelackofinvestmentaftertheprivatisationofenergycompaniesin Argentina , needsforoilandgasstorage , warehousingandtransportationcanhardlybe met.Inordertotackletheproblemfromthegroundup , theArgentinegovernment developedanewenergystrategyandimplementedaseriesofmeasures , includingthe establishmentofagovernmentledenergyjointventure , EnergíaArgentinaSociedad Anónima ( Enarsa ) .ThiscompanybelievesthatChineseoilcompanieshavesufficient capitalandtechnologytoparticipateinoilandgasexplorationandexploitationin Argentina.IthopestocooperatewithitsChinesecounterparts. InJuly2008 , CherySocmaS.A. , ajointventureformedbypartnersfrom China , Argentinaand Uruguay , announcedthattheentryintothe Argentine marketoftheCheryTiggosassembledinUruguayhadmetwithconsiderable success.Bycooperatingactivelywithlocalcompanies , Cheryisgrowingtogether withitsforeignpartners , tothebenefitofbothparties. Thecasespresentedhereshowclearlythedynamicofbilateraleconomic 3 06 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation cooperation.AccordingtotheChinese MinistryofCommerce , byJune2008 , ChinasaccumulatednonfinancialsectorinvestmentinArgentinaamountedto USD172 million.Chineseinvestmentin Argentinafocuseson manufacturing , navigation , resource exploitation , imports and exports.Chinese companies startedtoundertakeprojectsin1985.ByOctober2008 , Chinesecompanieshad landedprojectandlabourservicescontractsinArgentinaworthUSD530million andachievedaturnoverofUSD594million.ByOctober2008 , therewere386 ArgentineinvestedcompaniesinChina , withatotalcontractedinvestmentof USD481millionandatotalrealisedinvestmentofUSD158million ( Chinese MinistryofCommerce2010 ) . 犛犻狀狅犝狉狌犵狌犪狔犪狀犆狅狅狆犲狉犪狋犻狅狀 EconomiccooperationbetweenChinaandUruguayhasbeenwideranging. TherehasbeenfriendlycooperationbetweenChinaandUruguayinagriculture , includingsmallscalecooperationinricegrowingandviniculture , andinpickup truckassembly. In2004 , HuaweiofChinasignedaletterofintentoncooperation with UruguaysstateownedtelecommunicationscompanyAdministraciónNacionalde Telecomunicaciones ( ANTEL ) tobuildanexperimental3G mobilecommunica tionnetwork ( WidebandCodeDivisionMultipleAccess , WCDMA ) inUruguay. InJuly2005 , thenetworkwasofficiallyputintooperation.Itsupportssuch valueaddingmobilephoneservicesasvideoconferencing , webTVandInternet access , coveringmostofUruguayscapital , Montevideo.Itisthefirst3Gmobile phonenetworkinLatinAmerica. In2007 , CherySocmaS.A , setupaplantinUruguaytoproducemotor vehicles.Itisthefirstoverseasjointventurefor Chery , anditslargest investment.In May2008 , thecommissioning oftheproductionline was complete , andthefirstbatchofCheryTiggosrolledofftheline.Carsmadeby thisplantaresoldmainlyinArgentinaandUruguay. InJanuary2008 , UruguaysMinistryofInternalAffairssignedapublicsecurity projectcontractwithZhongXingTelecommunication EquipmentCompanyLimited ( ZTE ) ofChina.Thiscontractcoversninesystems , includingemergencyresponse , datatransferandVoiceoverInternetProtocol ( VoIP ) videomonitoring.Oncethe projectiscompleted , theinfrastructureofthe MinistryofInternalAffairs willbe greatlyenhanced , makingintegratedcommandandrapidresponsepossible , providing effectivetechnicalbackupforemergencies.ZTEisresponsibleforequipmentsupply , installation , trainingandaftersalesservice. TheChinesegovernmentalsohelpsUruguaytotrainmanagersandtechnology OpportunitiesandChallengesFacingChinaandMERCOSURintheContextoftheFinancialCrisis 3 07 experts.Inthepast20years , Uruguayhassentasubstantialnumberofofficialsand technologicalprofessionalstotailormadetrainingcoursesinChina. OntheUruguayanside , in2006 , FrigorificoCanelones , thelargestmeat refrigerationcompanyin Uruguay , obtainedapprovaltosetupChinasfirst whollyforeignowned meatimportingbusiness.Thisnew companysold25 tonnesofmeatinasinglemonthinShanghai.Itsmajorclientsaretophotelsand restaurants.Uruguayanbusinesseshavealsosetupwhollyownedcompaniesor jointventuresinBeijing , TianjinandLiaoning. 2.犃犖犲狑犛狋犪犵犲狅犳犇犲狏犲犾狅狆犿犲狀狋牶犆犺犪犾犾犲狀犵犲狊犉犪犮犻狀犵犛犻狀狅犕犈犚犆犗犛犝犚犜狉犪犱犲 ThefinancialcrisistriggeredbythesubprimecrisisinSeptember2008has hadanenormousnegativeimpactontheglobaleconomy.China , anactive participantineconomicglobalisation , hasnotbeenspared.BetweenNovember 2008andJune2009 , Chinasforeigntrade wentdownforeightconsecutive months , whichwasunprecedentedinits60yearhistory.SinoLatinAmerican trade , whichhadbeengrowingrapidlyuntilDecember2008 , alsofelldrastically duringthefirstfourmonthsof2009.Moreover , thefallwasmuchgreaterthan averageinChinasforeigntradeduringthesameperiod. Inthefirstfourmonthsof2009 , tradebetweenChinaandthetwomajor MERCOSURcountries , Braziland Argentina , also wentdown.Liketrade betweenChinaandmostothercountriesorregionsintheworld , asaresultof thefinancialcrisistradebetweenChinaandMERCOSURendedsixyearsofhigh growth.Anewstageofgrowthhasbegun , however. Chinaexports mainly manufacturedgoods , whileimportingprimaryproducts. Althoughthisisdeterminedbytheeconomicstructureofbothsides , aswellassupply anddemand , thereismorepotentialtobetappedinbilateraltrade. ChinahasatradedeficitwithMERCOSUR.Inthefirsteightyearsofthetwenty firstcentury , itsexport / importratioaveraged0.54 , orapproximately1∶2. 犜犪犫犾犲2 犛犻狀狅犕犈犚犆犗犛犝犚犜狉犪犱犲犅犪犾犪狀犮犲 , 20032008 ( 犝犛犇100犿犻犾犾犻狅狀 ) Year 2003 2004 2005 2006 2007 2008 Imports / Exports -58.16 -71.36 -73.33 -68.3 -90.1 -141.95 Exports / Imports 0.68 0.48 0.33 0.43 0.50 0.60 Source:GeneralAdministrationofCustomsofPRChina2009. ChinahashadatradedeficitwithBrazilforalongtime.Inthepastnine 3 08 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation years , thedeficithasincreasedfrom USD397million ( 2000 ) toUSD11billion ( 2008 ) .TheratiobetweenChinasexportstoBrazilanditsimportsfromBrazil peakedat0.76 ( 2000 ) andbottomedoutatamere0.37 ( 2003 ) . 犜犪犫犾犲3 犜狉犪犱犲犫犲狋狑犲犲狀犆犺犻狀犪犪狀犱犅狉犪狕犻犾 ( 犝犛犇100犿犻犾犾犻狅狀 ) Year Exports Imports ExportsImports ExportsImports 2000 12.24 16.21 -3.97 0.76 2001 13.51 23.47 -9.96 0.58 2002 14.66 30.03 -15.37 0.49 2003 21.45 58.44 -36.99 0.37 2004 36.75 86.84 -50.09 0.42 2005 48.28 99.89 -51.61 0.48 2006 73.8 129.2 -55.40 0.57 2007 113.72 183.33 -69.61 0.62 2008 187.5 297.5 -110.00 0.63 Source:GeneralAdministrationofCustomsofPRChina2009. Inthepastnineyears , thetradedeficitbetweenChinaandArgentinahas risenfrom USD120million ( 2000 ) toUSD4.32billion ( 2008 ) .Theratio betweenChinasexportsandimportsfromArgentinapeakedat0.87 ( 2000 ) and bottomedoutatamere0.15 ( 2002 ), beforerisingstronglyagain ( Table4 ) . 犜犪犫犾犲4 犜狉犪犱犲犫犲狋狑犲犲狀犆犺犻狀犪犪狀犱犃狉犵犲狀狋犻狀犪 ( 犝犛犇100犿犻犾犾犻狅狀 ) Year Exports Imports ExportsImports ExportsImports 2000 8.10 9.30 -1.20 0.87 2001 5.74 12.81 -7.07 0.45 2002 1.80 12.40 -10.60 0.15 2003 4.47 27.29 -22.82 0.16 2004 8.52 32.55 -24.03 0.26 2005 13.25 37.99 -24.74 0.35 2006 20.04 37.00 -16.96 0.54 2007 35.67 63.35 -27.68 0.56 2008 50.40 93.60 -43.20 0.54 Source:GeneralAdministrationofCustomsofPRChina2009. OpportunitiesandChallengesFacingChinaandMERCOSURintheContextoftheFinancialCrisis 3 09 DuringtheyearsinwhichSinoMERCOSURtradewasgrowingrapidly , the pricesofprimaryproductsintheinternationalmarketroseconsiderably.In particular , crudeoilpricesrosedramaticallyfromthefirsthalfof2008 , peaking atUSD150perbarrel.Thepriceofgrainandmetalsroseseveraltimesinthe sameperiod.Meanwhile , thepricesofmanufacturedgoodsexperiencedageneral downturn.Freightratesshotupasoilpricesrose.Theimpactofsuchprice differentialshasbeendeeplyfeltbyChinesecompanieswhospecialiseinthe productionoflabourintensivegoodswithalowtechnologycontent. TherapidgrowthofSinoMERCOSURtraderesultedinagreatdealof friction.Accordingtothe WTO , inthefirst14yearsafteritsestablishment ( 19952008 ), Argentinaand Brazilinstituted , respectively , 61 and37 anti dumpinginvestigationsagainstChineseproducts , accountingfor9percentand 5.5percentofsuchinvestigationsby WTO members.Duringthesameperiod , ArgentinaandBrazilimposed , respectively , 40and21antidumpingmeasureson Chineseproducts , accountingfor8.4percentand4.4percentofsuchmeasures byWTOmembers ( WTO2008 ) . Generallyspeaking , those WTO membersthatinstituteantidumping investigationsorimposeantidumping measureshaverelativelylargetrade deficits.However , BrazilandArgentinahavehugesurplusesintheirtradewith China.AlthoughbothcountrieshaverecognisedChinasmarketeconomystatus , theyhavenotreducedantidumpinginvestigationsormeasuresagainstChina. Instead , theyhaveaddedantisubsidyandsafeguardmeasurestothepackage. Sincetheoutbreakofthefinancialcrisis , therehasbeenasurgeinthese activities , includingbothshorttermandlongterm measures.Therefore , trade protectionismremainsfairlystronginMERCOSUR. TherehasbeenanimbalanceinthegrowthofSinoMERCOSURinvestment. ChinasinvestmentinMERCOSURisrelativelysmall , andChinesecompaniesdonot thinkthattheinvestmentenvironmentinSouthAmericaisideal.AlthoughSouth Americancountriesclaimtheyencourageforeigndirectinvestment , theentrybarriers areveryhigh.Lowefficiency , poorinfrastructure , strongtradeunionsandhuge culturaldifferences makeiteventougherforChinesecompaniestoinvestin SouthAmerica.Ontheotherhand , Chinesecompaniesstillhavesomewaytogo indevelopingtheircapabilitiesfor “ goinginternational ” .Theymustfurther improvehumanresources , capitalandmanagementexpertise. 3.犘狅狋犲狀狋犻犪犾犇犲狏犲犾狅狆犿犲狀狋狊犻狀狋犺犲犠犪犽犲狅犳狋犺犲犉犻狀犪狀犮犻犪犾犆狉犻狊犻狊 Althoughthefinancialcrisiswasgenerallyunexpected , retrospectivelyits 3 10 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation occurrenceisperfectlylogical.ItisnocoincidencethatSinoMERCOSURtradefell drasticallyfromJanuary2009.ThehighgrowthperiodinSinoMERCOSURtradehas givenplacetoanewphase.Thefinancialcrisisposesbothseverechallengesandrare opportunitiesforthefurtherdevelopmentofSinoMERCOSURtrade.Onbalance , therearemorefavourablethanunfavourableconditions. 3.1 FavourableConditions Together , ChinaandMERCOSURconstituteahugemarketcoveringawide area , and withrichresourcesandahugepopulation.Bilateraleconomicand tradecooperationbenefitfromsolidfoundations:Chinahasformaldiplomatic relationswiththreeoutofthefourMERCOSURcountries:Brazil , Argentina andUruguay.Therearehealthypolitical , economicandculturalrelations , and nofundamentalconflictsofinterest.Althoughtherearenoformaldiplomatic relationsbetweenChinaandParaguay , tradehasalreadystarted.Thereisevery prospectthatChinaand MERCOSUR willdeveloptheireconomicandtrade relations.Itisintheinterestofthepeopleonbothsides , aswellasfromthe pointofviewofcooperationbetweendevelopingcountries. Chinahassigned , withBrazil , ArgentinaandUruguay , theintergovernmental tradeagreement , andagreementsoneconomicandtechnicalcooperationandonocean goingshipping , as wellasonencouragingandprotecting mutualinvestments.In addition , China has signed MOUs with the three countries on fishery cooperation , tourism cooperationandloanagreements , as wellasonenergy cooperation. Chinahasalsoestablishedanintergovernmentalcommitteeoneconomyand tradewithBrazil , Argentinaand Uruguaytocoordinatethedevelopmentof bilateraleconomicandtraderelations.Atthesametime , Chinas National Developmentand Reform Commission , MinistryofCommerce , Ministryof Agriculture , MinistryofHealth , MinistryofTransportation , Ministryofthe InformationIndustry , GeneralAdministrationofQualitySupervision , Inspection andQuarantine , NationalTourismAdministration , CouncilforthePromotionof InternationalTrade , theBankofChinaandtheExportImportBankofChina haveestablishedcooperationwiththeircounterpartsinthethreecountries. Inrecentyears , SouthAmericancountriessuchasBrazilandArgentinahave attachedgrowingimportancetoAsianmarketssuchasChinaandIndia.Their enthusiasm for expanding economic and trade relations with China is unprecedented.Theirtraderelations with East Asiancountrieshavebeen intensified. Theoutbreakofthefinancialcrisisheraldsa majorchangeineconomic OpportunitiesandChallengesFacingChinaandMERCOSURintheContextoftheFinancialCrisis 3 11 globalisationfollowingover20yearsrapidgrowth.Atthesametime , itexposes someunderlyingproblemsintheeconomicdevelopmentofdevelopingcountries , includingChinaandMERCOSURmembers.Fromthisperspective , thefinancial crisismaybegoodnewsforChinaandMERCOSUR , sinceitprovidesthelatter withastrategicopportunitytochangetheirgrowth modeand maketheir economicrelationsmoresustainable. 3.2 SuggestionsfortheNearFuture Anopen , equitableand multilateraltrade mechanismisconducivetothe healthygrowthoftheworldeconomy.ChinaandMERCOSURshouldmaintaina steadfastcommitmenttothemultilateraltrademechanism , supporttheDoha Roundtalks , resisttradeprotectionismandpromotetheearlyresumptionofthe DohaRoundtalksandacomprehensive , wellbalancedoutcome. Freetradezonesrepresentanimportantsupplementtothemultilateraltrade mechanism.ThesuccessfulconclusionoffreetradeagreementsbetweenChina andLatinAmericancountriesprovidesbothfavourableconditionsandvaluable lessonsforChinaandMERCOSURandshouldencouragethemtostartsimilar negotiationsintheneartomediumterm.Wesuggestthatsuchnegotiationsstart asearlyaspossible , sothatcrosscontinentfreetradezonescanbeestablished. Confrontedbythefinancialcrisis , ChinaandLatin Americancountries shouldgiveprioritytostrengtheningfinancialcooperation , soastomitigatethe negativeimpactofthefinancialcrisisonbilateraltrade.Theliquiditysqueeze causedbytherampaging globalfinancialcrisis hasalreadycreated great difficultiesfortheexportorientedtradesystemsin Asiaand Latin America. Exportshavefallendramatically.ExchangeratesfluctuateagainsttheUSdollar andriskisgrowingininternationaltrade.Manyinitiativescouldbelaunched , includingnegotiationsoncurrencyswapagreements. Currencyswapsareakindofforeignexchangeagreementbetweentwo countriestoavoidexchangeraterisks.Afteracertainperiodoftimeanda certainquantityofexchangeshaveoccurred , thecentralbanksofthetwo countriessettleup.By meansofsuch mechanisms , trading orexporting businessesinthetwocountriescanreceivepaymentsintheirdomesticcurrency , therebybenefiting by both avoiding exchangerate risks and reductionsin currencyconversioncharges.Partiesinacurrencyswapusuallyagreeona quota.Oncetheswaphasbeenlaunched , thetwocountriescanprovideshort termliquiditysupportforeachotherbyexchanginglocalcurrencies , thereby facilitating financing between local commercial banks and their foreign counterparts , promotingbilateraltrade. 3 12 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation Shortlyaftertheoutbreakofthefinancialcrisis , Braziland Argentina activatedalocalcurrencysettlementsystemintheirbilateraltradeinOctober 2008.Theyalsoplantoextendthesystem — whichaimsateliminatingtheUS dollarasvehiclecurrency — totherestofMERCOSUR , therebyoffsettingimport limitsimposedbyanumberofcountriesthatlackUSdollarreserves. StartinginDecember2008 , Chinasignedcurrencyswapagreementswiththe monetaryauthoritiesinSouth Korea , Malaysia , IndonesiaandBelarus , the Chinamainlandalsosignedcurrencyswapagreementwith HongKong.On29 March2009 , ChinasignedaRMB70billion ( USD10.25billion ) framework currencyswapagreementwith Argentina , thefirstofitskind — andalsothe largestfinancialdeal — betweenChinaandaLatinAmericancountry.Bytheend ofMarch2009 , currencyswapagreementsbetweenChinaandothercountriesor regionsamountedto RMB 650 billion , about5 percentof Chinasforeign reserves ( Xinhuanet2009 ) . Atpresent , USdollarsarecommonlyusedininternationaltrade.Countries notonlysettletheirtradein USdollars , butalsokeep USdollarsasforeign reserves.Thesubprimecrisisdealtablowtotheeconomyofcountrieswithlarge USdollarforeignreserves.InordertoensurefurthergrowthofSinoLatin Americaneconomicandtraderelations , Chinaandits majorLatin American partnercountriesshouldstrengtheneffectivecooperationinthefinancialsector , includingthenegotiationandsigningofcurrencyswapagreements. Duringthenewstageofgrowth , Chinaand MERCOSURshouldtrytheir besttotapintothepotentialofservicetradeaswellastradeingoods.Service tradebetweenChinaandMERCOSURisnewbutexciting.Forexample , large companiesfrom ChinaandBrazilhavejoinedhandsin metallurgy , mining , energy , aviation , aerospaceandfinance , achievingsatisfactoryresults which indicatethehugepotentialofcooperation betweenthetwosidesin high technologyandservicetrade. Havingrelativelydevelopedeconomies , BrazilandArgentinaenjoydistinct advantagesinautomobiles , metallurgy , minerals , nuclearpower , medicine , finance , insurance , tourism , educationandinvestment.Theyarewellplacedto intensifycooperationwithChinesecompaniesintheseareas. TheUnited NationsFrameworkConventiononClimateChangeandits KyotoProtocoldemandthatcountriesadheretotheprincipleofcommonbut differentiatedresponsibilities , activelyimplementtheBaliRoadmaptalksand adopteffectivemeasurestomitigateclimatechangethatareinlinewiththeir particularcircumstances.Forest protection is an important part ofthe cooperationagainstclimatechange.In2007 , ChinaproposedtheAsiaPacific OpportunitiesandChallengesFacingChinaandMERCOSURintheContextoftheFinancialCrisis 3 13 NetworkforSustainableForest Managementand Rehabilitationinitiative , in whichbothChinaandMERCOSURcanplayimportantroles. Sinceitisoftenbeyondthecapabilitiesofonecountrytocopewithacatastrophic naturaldisaster , supportfromtheinternationalcommunityisneeded.In2008 , China putforwardthe “ BasicPrincipleforDealingwithDisastersandCooperation withintheAPEC ” withaviewtostrengtheningexchangeandcooperationinthis areaintheAsiaPacificregion.Chinaand MERCOSURcouldconsidersome longtermcooperationprojectsinpostdisasterconstruction. Foodandenergysecurityisvitalnotonlytotheeconomyandlife , butalso globaldevelopmentandsecurity.Asmajorfoodproducersandconsumers , China andMERCOSURshouldtakeactivemeasurestoensureworldfoodandenergy security.Bothsidesshouldattachgreatimportancetofoodproduction , increase investment , relyonscienceandtechnology , increasefoodsupply , improvethe foodtradeenvironment , establishafairandequitabletradesystemforfarmproduce , strengthenmacrocontrol , curboverspeculationinthemarketandstabilisefoodprices. Bothsidesshouldstrengthenmutuallybeneficialcooperationinenergydevelopment , as wellaspolicycoordination , diversifyenergysupply , setupanadvancedsystemfor thedevelopmentanddisseminationofenergytechnologyandadvocategreateruse ofcleanenergyandrenewableenergy. 4.犆狅狀犮犾狌狊犻狅狀 Beforethefinancialcrisis , economicandtraderelationsbetweenChinaand MERCOSURhadtakenadvantageofeconomicglobalisationandgrownrapidly , whichlaidasolidfoundationforthefurtherdevelopmentofstrategiccomplementarities betweenthetwosides.Thefinancialcrisishashadaverynegativeimpactonthe worldeconomy , includingChinaand MERCOSUR.Itisnotyetbehindus. However , thankstotherelativelysolideconomicfoundationsin Chinaand MERCOSUR , aswellasthemeasurestakenimmediatelytoaddressthecrisis , ChinaandMERCOSURarestillconfidentoffurtherdevelopingtheireconomic andtraderelations , which will makeaconstructivecontributionto world economicrecovery.Chinaand MERCOSUR shouldseizetheopportunities presentedbythefinancialcrisis , strengthenanddeepenbilateralcooperationand furthercontributetotherecoveryandstablegrowthoftheworldeconomy. Notes 1.Unlessotherwisespecified , thetradedatareferredtointhischapterwerecollectedand analysed bythe author based on the annualstatisticalyearbook ofthe General AdministrationofCustomsofPRChina. 3 14 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation References ChineseGovernment ( 2008 ), 犘狅犾犻犮狔犘犪狆犲狉狅狀犔犪狋犻狀犃犿犲狉犻犮犪犪狀犱狋犺犲犆犪狉犻犫犫犲犪狀 , Peoples RepublicofChina , 5November. ChineseMinistryofCommerce ( 2010 ), online:http: // www.mofcom.gov.cn / fuwzn / fuwzn. html ( 24September2010 ) . General Administration of Customs of PR China ( 2009 ), online: http: // www. chinacustomsstat.com / customsstat /, April2009. Hu , Jintao ( 2008 ),“ AdheringtotheConceptofOpening Upand Cooperation , Seeking MutualBenefitsandWinWinResults ,” Speechatthe16 th APECInformalLeadership Meeting , 22November. WTO ( 2008 ), 犐狀狋犲狉狀犪狋犻狅狀犪犾犜狉犪犱犲犛狋犪狋犻狊狋犻犮狊2008 , online:http: // www.wto.org ( 2September 2010 ) . WTO ( 2009 ), 犠犜犗犢犲犪狉犫狅狅犽2009 , online:http: // www.wto.org / spanish / res _ s / statis _ s / statis _ s.htm ( 1September2010 ) . Xinhuanet ( 2009 ), online:http: // news.xinhuanet.com / fortune / 200904 / 01 / content _ 11110010.htm ( 1October2010 ) . CurrentandFutureCooperationundertheEUMERCOSURAgreem ent 3 15 犆犺犪狆狋犲狉8 犆狌狉狉犲狀狋犪狀犱犉狌狋狌狉犲犆狅狅狆犲狉犪狋犻狅狀狌狀  犱犲狉 狋犺犲犈犝犕犈犚犆犗犛犝犚犃犵狉犲犲犿犲狀狋 1.犚犲犾犪狋犻狅狀狊犫犲狋狑犲犲狀狋犺犲犈犝犪狀犱犕犈犚犆犗犛犝犚 TheSouthernCommon Market ( MERCOSUR ) wasestablishedin1991bythe TreatyofAsunción.TheOuroPretoProtocolof1994setoutitsinstitutionalstructure inmoredetail.ItiscomposedofBrazil , Argentina , UruguayandParaguay.Without muchvisibleimpact , BoliviaandChilejoined MERCOSURin1996asassociate members , followedbyPeruin2003andVenezuela , EcuadorandColombiain2004. Venezuelaisnowintheprocessofbecomingafullmember.Biregionalrelationsbetween theEuropean Union ( EU ) and MERCOSURarebasedonthe1995interregional FrameworkCooperationAgreement , whichprovidesthebasisforpoliticaldialogueand cooperationbetweenthetworegions.Inrecentyears , relationshavebeendominatedby thedifficultprocessofnegotiationsonanAssociationAgreement , whichwerelaunchedin 2000buthavenotbeenconcluded.Followingthesuspensionoftradenegotiationsin2004 1 attherequestofMERCOSUR , whichwantedfirsttoseetheoutcomeofthemultilateral Doharound , relationshaveundergoneasubstantialslowdown. Somehavespokenof “ neverstarting ” ratherthan “ neverending ” negotiations. Frustrationsonbothsideswithregardtoinsufficientorevenreducednegotiationoffers haveledtofriction.Itdoesnotmatterwhoseperceptionismorecorrect , realityiswhat eachsideperceivesassuch.However , sincetheendof2007 , newimpetuswasinjected  ThischaptertakesuppartsofshortspeakingpointsinitiallymadebymycolleagueBeatrizMartins , then inchargeofMERCOSURattheDirectorateGeneralfortheExternalRelations ( DGRELEX ) ofthe EuropeanCommission.However , responsibilityforthetextisentirelymineand , asusual , theviews expressedinthischapterarethoseoftheauthorandshouldinnowaybeconsideredasexpressingthe officialpositionoftheCounciloftheEuropeanUnionoranyofitsofficials. 3 16 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation intotherelationship , withaseriesofhighlevelvisitsandmeetingsatworkinglevel. AttheEUMERCOSURsummitinLimain May2008 , thepartiesconfirmed “ the importanceofreachinganambitiousandbalancedAssociationAgreementandtheir commitmenttocarrynegotiationsthroughtoasuccessfulconclusion ”, adding “ as conditionspermit ” .Similarannouncementsweremadebeforeandafter.TheEUhas beenfrustratedthataftersuchhighlevelcommitments , noprogresswasvisiblewhen negotiatorsmetagain.Itremainstobeseenwhetherthenewcommitmentsmadeatthe IVEUMERCOSURSummiton17 May2010in Madridwillfinallyleadtonew advances ( EUCouncildoc.9870 / 10 ) . Thetaskofthepresentchapterisnottodealwiththethornyissueofoverall tradenegotiationsaimedatbiregionalfreetrade.However , someaspectsofthe tradeissue mustbeoutlinedtobetterunderstandthepossibleevolutionof biregionalcooperation.MERCOSUR ranksonlyeighthamong EU trading partners , withjust2.7percentoftotalEUtrade , whereastheEUaccountsfor 27percentofMERCOSURsexportsand20percentofitsimports. 2 EvenBrazil isonlytheEUseleventhlargestmarket.AggregateEUinvestment , however , exceedsEUstocksinChina , IndiaorevenJapan.EUinvestmentstandsoutin nonprimarysectorsandisthereforecontributingmoretolocaladdedvalueand jobs.SixtypercentofFDIisrelatedtoservices.Asamajorsourceoftrade relatedassistance , theEUreinforcesthecompetitivenessofitscompetitors ( EU Councildoc.8695 / 09 ) .The negotiation problemsindicatea NorthSouth cleavage.TheEU wantsacomprehensiveagreementwithresultsexceeding thosetobereachedonthe multilaterallevel — a “ Dohaplus ” .Otherwise , additionalandparallelnegotiationsonasubDoha , biregionallevelwouldnot makemuchsense.LeadingCommissionfiguresaskedpubliclyin2007whether anEUofferaslargeastheonemadeatthemultilaterallevelcouldreallybe expectedinthisbiregionalcontext.Servicesrepresent70percentofGDPand jobsintheEU , whichthushasanunderstandableinterestinfreetradeinthis area.InMERCOSUR , theyrepresentlessthan20percent.Itwascalculated thataFreeTradeAgreement ( FTA ) wouldaddEUR57billiontoservices ; the costofafailuretoreachagreementisoverEUR5billion , andnearlyEUR4 billioningoods. InnegotiationswiththeEU , MERCOSURfocusesonagriculturalproducts , andrelatedsubsidies.Understandably , thereareclearreasons — notalways economicones — whyagricultureplayssuch adecisiverole.Butitis worth stressingthattheEUisMERCOSURsprimarymarketforagriculturalexports. Thereisawisesayinginbusinessthatyoudonotinsultyourbestclient.Inthe CurrentandFutureCooperationundertheEUMERCOSURAgreement 3 17 Dohatalks , theEUofferedtocutitsfarmtariffsbymorethanhalf , reduce domesticfarmsubsidiesby70percentandeliminateexportsubsidiesby2013 , if othersofferedsomethingsimilar.Itshouldalsobekeptinmindthat: ( 1 ) achangeinexchangeratesandglobaldynamicscanhaveabigger influencethanchangesintariffsandtariffquotas ; ( 2 ) manyweakerdevelopingcountrieshavecometoseetheBrazilianrequest intheDoharoundoftotalliberalisationofagriculturaltradeasathreat totheirown , lesscompetitiveproduction ; ( 3 ) meanwhilewithrisingglobaldemandforagriculturalproducts , therealissue willbewhetherallproducerstogethercandeliverenough , nothowandhow mucheachofthemsubsidisesitsexports.Thus , agricultureshouldhenceforth belessofastumblingblock. 2.犜犺犲犆狌狉狉犲狀狋犛狋犪狋犲狅犳犕犈犚犆犗犛犝犚 Asthefourthlargesteconomicgroupintheworld , MERCOSURisthemost potentareainLatinAmerica.However , itsintegrationprocesshasadvancedata snailspace.AsstatedintheEuropeanCommissionsRegionalStrategyPaper ( 200713:4 ), MERCOSURhassufferedfromalackofpoliticalinvolvementandchanging politicalpriorities , resultingindisparateprojects...Thelistofincrementalstepsis impressive.However , theeconomicintegrationprocessisstillfarfromcomplete andtradedisputesareendemic...Manyunilateraltrade measureshavebeen adoptedbyindividualmemberswithlittlepriorconsultationoftheothermembers , leadingtoaperceivedsenseofdisillusionwithinthebloc , despitetheaffinityamong themoderateleftwingpartiesinpowerinthreeofthefourMERCOSURstates. ( EuropeanCommissionsRegionalStrategyPaper:7 ) Some , albeitlimited , progresshasbeen madeinsettingupinstitutions , suchasthe MERCOSUR Parliament , the Technical Secretariatand the MERCOSURCoreper.KeydecisionsonaMERCOSURcustomsunioncontinue tobedelayed.Newinternaltradebarriershavebeenintroducedagainstother MERCOSUR members.MERCOSURisnotfunctioningasafullyfreetrade area , asinternalbarriersarestillwidespread.Onlyasrecentlyas2010were MERCOSURmembersabletoagreeontheabolitionofthedoubletariffson importsfromthirdcountrieswhicharethenreexportedinsidethebloc.This wasdisappointing , alsoforprogressinbiregionalnegotiations.Thusinternal criticism of MERCOSUR hasincreasedfurther , sothatsomeclaim that MERCOSURhasfailed: ( 1 ) ForParaguaysPresidentFernandoLugo ,“ MERCOSURcomesofage 3 18 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation buthasnotyetgrownup ”( BrazilandSouthernConereportJan.15 , 2009 ) . ( 2 ) Brazilseemswearyofandhasoutgrowntheorganisation ; theprivate sectorurgestheauthoritiestochooseadealwiththeEU overcontinuingin MERCOSUR ( BrazilandSouthernConereport , Jan.15 , 2009 ) . ( 3 ) SmallermembersUruguayandParaguaycontinuallycomplainthattheir interestsarenottakenintoaccount. ( 4 ) TensionswithinMERCOSURattheEURIOGroupministerialmeeting in May2009in Prague weresuchthat MERCOSUR couldnotagreeonthe presenceoftheMERCOSUR “ presidency ” atapressconference. ( 5 ) Thereisalackofastrongendogenousbaseforintegration , includinga productionpatternfittingmoretheinterestsoftherich , lessbroadinternaldemand. Intraregionaltradehasnotgrownasexpected.AccordingtofiguresfromEurostatand theUNEconomicCommissionforLatinAmericaandtheCaribbean ( CEPAL ), the intraregionalshareinoverallexportsofgoodsamountedin2007tojust13percentin MERCOSUR , comparedtoEUfiguresofaround67percent.Chinahasalargershare inBrazilsmarketthanArgentina ( 8.6percentvs.10.5percent ), whileMexico investedsomeUSD3billioninBrazilbetween2003and2007 , ChileinvestedUSD869 million , andColombiainvestedUSD400million ; ArgentinasFDItherewasamere USD388million ( MERCOSURabcMar.26 , 2009 ) . ( 6 ) MERCOSUR wasperceivedashavingdifficultiesinprovidingan efficientframeworktopreventorsettleinternaldisputes.FelixPeasaid: “ We needtobuildaMERCOSURofpartners , notofhostages. ” ( 7 ) MERCOSURhassofarbeenunabletoestablishacommonstanceintheDoha DevelopmentAgenda ( DDA ) negotiations.TheMERCOSUREuropeBusinessForum ( MEBF ) hasrepeatedlyexpressedfrustration , regrettingthat “ thecostsofinternal coordinationofMERCOSURsnegotiatingpositionsgrewsignificantly ”, anddenounced “ MERCOSURsinternaldynamicsas morean obstaclethan anincentivefor negotiations ”( ElPaisDec.25 , 2009 ) .Theysaw MERCOSURasjustaplatformfor foreignpolicyposturing , andclaimeditiseasiertoexporttotheEU — recentlyaccused ofbeinga “ fortress ”— thanwithinMERCOSUR. 3.犈狌狉狅狆犲犪狀犐狀狋犲犵狉犪狋犻狅狀 Europeanintegrationisneitherauniversal “ model ” norperfect.Nevertheless , it showsanumberofthingsthatareessentialforprogress , butmeanwhilealsothata lackofpoliticalwillandseriousnesscanundoit.Itwasbuiltonastrong , sustained politicalcommitment , theconstructionofajudicialsystemandsomesupranational institutions , aswellascommonpoliciesandjointactions.Memberstatesusually complywithit.JeanMonnetsaidthattogeneratenewideasyouneedpersons , butto CurrentandFutureCooperationundertheEUMERCOSURAgreement 3 19 sustainthemyouneedinstitutions.TheEUsystemhasbeensufficientlyflexibleto adaptitsadvancementtospecialcircumstances.Ithasmeanwhileexperienceda considerablevarietyof “ differentiatedintegration ”, correspondingtoagrowing varietyofbasicexperiences , politicalculturesandlongtermobjectives , from enlargingtheEuropeanEconomicCommunity ( EEC ) ofsixmemberstotheEU of27membersoftoday. MERCOSURsharessomeofthetypicalcharacteristics — onemightalsosay weaknesses — ofotherLatinAmericaandCaribbean ( LAC ) schemesofregional orsubregionalintegration ( RI ) : ( 1 ) aplethoraofconcepts morerapidlyreplaced by new onesthan implemented ; ( 2 ) alackofdefinitionandvision , withimprovisationastheresult ; ( 3 ) anexcessivedominanceofextraregionaltradeandslowimprovementof intraregionaltrade , aswellasinequitabledistributionofbenefits ; ( 4 ) theabsenceofarealcommontradepolicy ; ( 5 ) limitedcoordinationofmacroeconomicpolicies ; ( 6 ) weaknationaland , evenmoreso , regionalinstitutionsandinsufficient fundsforboth ; and ( 7 ) agrowingbeliefinsomecountriesthatregionalintegrationispartofthe problem , butnotofthesolution ( Caetano2009 ; RuedaJunquera2009 ; Sukup2001 ) . 3 SometalkofLACasa “ burialgroundforzombieintegrationschemes ” .In LatinAmerica , withitstraditionalstrongemphasisonnational “ sovereignty ”, it takestimetounderstandthattherealproblemisnotthelossofsovereignty , but thelossofinfluence — toseeregionalintegrationasaremedyandnotacauseof decreasingnationalinfluence.Toacceptthatina modernsocietyandglobal world , actingsovereignlyalsomeansbeingableandwillingtodecideonthemost efficientlevelatwhichtasksshouldbeperformed , whichsometimeswillbethe regionalone. Asaconsequence , theintergovernmentalconceptconcentratesdecisionstoo muchonsummitsandishostagetounanimity , afaultthathasalsoplaguedthe EUattimes.Pea , althougha “ professionaloptimist ”, seesariskofa deteriorationofMERCOSURscredibilitybecauseoftheprecariousstateofits procedures.Moreover , from 1991until2007 , only47percentofcommon MERCOSUR norms weretransposedto nationallegalframeworks.Some nationalcourtsstillhavedifficultyregardingandacceptingMERCOSURpolitical orlegaldecisionsasguidingorbinding.Untilrecently , suchdecisionswerenot evenregularlypublished.Thesituationprovokedseriousquestionsconcerning 3 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: ( 1 ) strengtheninginstitutions ( 10percent ), ( 2 ) supportingintegration and preparingfortheimplementation ofan AssociationAgreement ( 70percent ) and ( 3 ) 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 CurrentandFutureCooperationundertheEUMERCOSURAgreement 3 21 processiscomplicatedanddifficult.Recently , EUsupporttoFOCEMandthe MERCOSURtribunalhadtobedecommittedduetoMERCOSURswithdrawal fromcertainprojects. Theideaofauthenticintegrationsecretariatswithindependentcivilservants hasnottakenhold.Asecretariatwithjustahandfulofhigherofficials , 30staff altogetherandabudgetofonlyUSD1million , asinMERCOSUR , issimplynot capableofpromotingintegration.Atbest , itcanprovidetechnicalassistancefor intergovernmentalprocedures.EUcooperationwith MERCOSURinstitutions andplayers , aswellasstandardsettingiswelcome.TheEU hasaroleas tentative “ externalfederator ” .Sincetheearly1990s , theEUhasbeenalong termandimportantsourceforthestafftrainingofallLatinAmericanintegration schemes , including MERCOSURsprotemporepresidencies , itsembryonic Parliamentandthejointparliamentarycommittee , aswellasthePermanent Review Tribunal.The EU has helpedto modernisecustoms procedures , statisticsandsanitaryandphytosanitarystandards , amongotherthings.Thisis somewhatastonishinginrelationtocountries , mostlyinthe middleincome category , whicharesoproudoftheir “ sovereignty ” .Theoutcomeofthe2010 midtermreviewprocessremainstobeseen. 5.犈犝犕犈犚犆犗犛犝犚 — 犠犺犻犮犺犠犪狔犃犺犲犪犱 ? Askedwhethertheygive MERCOSURandbiregionalnegotiationsmuch chance , someanswerwiththeBavariansaying: “ Idswear , butIdneverbeton it ! ” TheEUisunlikelytosharethedesperationoftheParaguayanForeign Ministerthatthegroupisina “ terminalstate ”( OEstadodeSoPaolo , 24.7. 2009 ) .Nevertheless , anumberofquestionswereasked.Forexample , whether agreementsshouldbepursuedeveniftheyhadbeendesignedunderdifferent circumstances ? Also , shouldtheEUoptforsomethingwhichopensuprelations moreorsettleforsomething morespecific , but more modest ? Whatif negotiationsdonotresume ? TheEUclearlyfavoursregionalintegrationandthus biregionalnegotiations , andwillcertainlynotwishtobeseenasthepartyresponsible forscuttlingintegrationschemesbysinglingoutindividualcountries.ButtheEU cannotimposeitsfavouredapproachandthereforeisnolongerfundamentalistonthe issue.ThiswasillustratedwhentheEUovercameBoliviasobstructionofAndean negotiationswiththeEU.Furthermore , theEUproceededwiththosewhowishedto continue , butleftthedooropenforotherstojoinlater.Inthisway , theEUrespects thesovereignwillofboththewillingandthereluctant. Anumberofsuggestionsmadeinthiscontextseemtoberatherpremature , suchasthefusion of MERCOSUR andthe Andean Communityorrapid 3 22 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation negotiationsonanoverallEULatinAmericaAssociationAgreement , including freetrade.Political , economic , proceduralandideologicaldivergenceswithin LatinAmericaanditsregionsorbetweentheEUandLatinAmericapromiseno success.Nevertheless , thereissomepotentialinEUMERCOSURrelationsand cooperation.Also , aclearturnaroundisdiscernibleinofficialEU documents ( COM2009 ), MERCOSURspositionsandacademicresearchinthedirectionof Realpolitik , withsuggestionsonwhereprogressmightbemade. Thecurrentglobalcrisismakesthecaseforinterregionalandintraregional cooperationevenstronger.ThisisthemessageofastudybytheLatinAmerican TradeNetwork ( Heidrich2007 ), whichrecommendsanew startin Latin Americaonthebasisofintensifiedcooperationininfrastructureandproductive integration , oratleastinterconnectivity.Alongthesamelines , andalwayskeen toseekawayout , Pea ( 2009b ) developedthreescenarios.First , integrational inertiaduetoinsufficientinnovation ; second , a “ foundationalsyndrome ” which throws mostoptions overboard ; and athird option which capitalises on accumulatedexperienceandresults.IdeasdiscussedbytheEUandimplemented toacertaindegreeinthecourseofitsowndevelopment , suchas “ géographie variable ”, amultispeedEuropeandsoon , haverecentlybeentakenupinofficial MERCOSURcirclesbothforEUMERCOSURnegotiationsandfordevelopment withinMERCOSUR. Inacademiccircles , Pea , delArenalandFloressuggestasimilarchangeof emphasisandpragmaticadvanceinregionalandEUMERCOSURrelations.Onthe biregionallevel , the1995EUMERCOSURagreementanditsevolutionclausecouldbe used , andthepartiesconcerned mightlookintopartial , temporaryprogressin economicrelationsto ( re ) buildconfidence ( delArenal2009 ) . 5.1 PoliticalDialogue Thenegotiatorofthe1995 agreement , Uruguayan diplomat Guillermo Valles , recalledataconferenceinParisthattheinitiallogicinEUMERCOSUR relationswasabetterbalanceinglobalaffairsandrebalancingtheEUpresence inLatinAmerica , withanemphasisondealingwithissuesatamultilaterallevel , withina multipolarglobalsystem.Therewasageopoliticaldimensionthat shouldnotbeforgotten.Thisalsofitsin withtheviewsofotheranalysts: MERCOSURcanbecomeapoliticalschemeratherthanjustaregionaleconomic integrationarea.MERCOSURhasshownitsvalueinsecuringstabilityinthe region , asinthecaseofParaguay.Itcanthusbeanimportantbaseforfarther reachingconcepts , suchastheUnionofSouthAmericanNations ( UNASUR ) which , despiteideologicalclashes , didpreventahemisphericcrisisfrombreaking CurrentandFutureCooperationundertheEUMERCOSURAgreement 3 23 outorbecomingviolent.TheregionofLatinAmericaandtheCaribbeancan buildonthereinforcedmultilevelprocessofpoliticalconcertation , suchasthe “ new ” RIOGroup , meanwhilecoveringallLatinAmericaandagrowingnumber ofCaribbeancountries , or UNASUR.Suchprocesseshavebeenextended beyond the political area into security and health care. This creates psychological , socialanddiplomaticgroundsformoreandregularcoordination. Sofar , politicaldialogue with MERCOSUR — aswithotherintegration schemes — hasbeenuseful , butbynomeansasmuchasitmighthavebeen:ina biregionalcontext , issues concerning single member countries cannot be discussed ; butthisistrueforbothsides ( Buck2009a ) .Tocircumventthis , such dialoguemustnotbelimitedtothelevelofministersorhighofficials.The growingcontactsbetweenparliamentariansonbothsides , orcivilsocietiesand theirorganisations , suchastheEuropeanEconomicandSocialCommitteeand theCommitteeoftheRegionsormeetingsbetweenlocaladministrationsofthe kindwhichtookplacein2007inParis , areencouraginginitiatives.Itisalso strikingthatallofthesixpoliticalfoundationsinGermanyhavetakenupthe issuesofsecurityinLatin AmericaandtheCaribbean.Some , suchasthe KonradAdenauerStiftung or the FriedrichEbertStiftung , already have longstandingexperiencethrough biregionalseminars , which bringtogether researchers , politicians , securityexpertsandactors. Sofar , theissueseemstohavebeenoffthepoliticalagenda , butsituations likethosein Mexicoand Haitiorthefightagainstdrugshaveledtoconcrete cooperation , experienceandexchangeofbestpractices. 5.2 OtherIssuesofa “ PostliberalAgenda ”( Sanahuja2008 ) Theissueswhichwouldbenefitfrom morebiregionalcooperationinclude energy , infrastructure , migration , environment , healthcare , andsocialand regionalasymmetries.Inrecentyears , atEULAC , biregionalorbilaterallevels ( cf.thestrategicpartnershipswithBraziland Mexicoandtheirjointaction plans , ortheEUChileAssociationforDevelopmentandInnovation ), numerous 狊犲犮狋狅狉犪犾 dialogueshavebeencreatedandshowntheirvalue , leadingtobetter understanding , technicalassistanceandeventoinitiativesatthe multilateral level ( Buck2008 ) .AttheirministerialmeetinginPraguein2009 , theEU Troikaand MERCOSURagreedonsuchconcreteinitiativesand workshopsin ordertotakethediscussionsforward ( EUCouncil2009 ) . Opponentsoffreetradeareas ( FTAs ) underlinedtherisktothe weaker partyinasymmetricalrelations.Againstthat , one mightreplythat , when talkingwithLatinAmericaandtheCaribbean , theEUknowsasaconsequence 3 24 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation ofitsownbeginningsandlaterenlargementswhat “ asymmetry ” means , andit probablyknowsbetterthananyotherorganisationhowtodealwithit.Living standardsattheleveloftheregionsintheEUdifferbyaratioof1to30.EU solidarityfundscushionsomeoftheunwantedeffectsofeconomicintegration. The EULAC Summit 2008 in Lima established a 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 CurrentandFutureCooperationundertheEUMERCOSURAgreement 3 25 2007.In2005 , tradecoveredbypreferentialagreementsreached63percent — 12 percentintraregionaland51percentextraregional — whichwasexpectedtorise to72 percentin 2007.Traditionalintegration schemesseem to havelost relevancefortheinternationalagendasoftheirmembers. Inlightofproblems withthepronounced political , economicandsocial heterogeneityofLatin Americancountries — andthus withtheacceptanceand negotiation offullblown Association Agreements with an FTA — it was recommendedtoseekformulaswhichmakearegionalbasedstrategycompatible withbilateralapproaches.Proceedinginadifferentiatedmanner , withtailored gradualcalendarsandscopeaccordingtothevariouscapacitiesofthoseinvolved isonewayforward , assuggestedbyrepresentativesoftheprivatesectorin BraziltotheEUMERCOSURmeetingon12November2009.Inordertomake progress , Argentina seemed to suggestabandoning the usualnegotiating approachof “ nothingisagreeduntileverythingisagreed ” toclosechapterson whichprovisionalagreementhasalreadybeenreached , aswellastoaddress tradeandotheropenissueswithpossibleadaptationclauses ( forexample , to smooththingsoverindifficultsituationswithregardtocompetition ) .Itremains tobeseenwhethersuchanunusualapproachwillwork. Initsrecentcommunicationon “ LatinAmericaandtheEU — AnAssociation ofGlobalPartners ”, theEuropeanCommissiontakesasimilarline.Inaddition , itsuggestsaparticularMechanismforInvestmentinLatinAmerica ( MIAL )— liketheEuropeanNeighbourhoodMechanism , withstartingfundsfromtheEU budget.Itshould privilege cooperationininterconnectivity , infrastructure , socialfieldsandtheenvironment , aswellasfosteringsmallandmediumsized enterprises.Thisisinline withtheoverarchingtopicforthe6th EULAC SummitinMay2010inSpain. ApartfromthisnewapproachtoEUMERCOSURrelations , negotiations andcooperation , norealchancefortrilateralcooperation by either partner outsidetheirregionsisapparent.Thisis , ifatall , possibleonlyinbilateral relations , suchEUBrazil , orwithMexicoorChile.Intheconcreteactionplans agreedwiththem , trilateralcooperationismentioned.Indeed , BrazilandtheEU recentlyconvenedtostudyjointcooperationindevelopingbioelectricityandbio fuelinMozambique ( seealsoEUCouncil2008 ) . 6.犆狅狀犮犾狌狊犻狅狀 IntegrationschemessuchastheAndeanCommunityofNations ( CAN ) or MERCOSUR still seem inadequate for reaching such objectives as the 3 26 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation establishmentofcommonmarketsandbeyond , andprogressinintegration , of thekindrepresentedbytheEU , seemneitherintendednorexpected.TheEU haslostinfluenceasasoft , normsettingpowerduetothearrivalofstrong playerswhoseemnottohaveanyinterestinspreadinggloballyacceptednorms. Iargueinmysecondpaperinthisbookthattheseplayersmayseetheadvantages ofspreadingsuchnormslaterintheprocessoftheirowndevelopment. Forthemoment , integrationagreementsmayserveinLatinAmericalessas aimsinthemselvesthanasplatformsforcommonefforts , confidencebuilding andbetterpositioninginglobalmarkets.TimeisnotnecessarilyonLACsside. Themajorriskisnotthateconomic , socialandotherpoliciesmayfail , butthat theymaynotprovideresultsquicklyenough.Biregionalrelationscanbeusefulin thisconnection , buttheycanonlycomplementnationalandregionalefforts. Notes 1.Asamatteroffact , MERCOSURtookupearlierhesitationsbytheEuropeanCommission DirectorateGeneralTradeaboutariskofblockagewhensuchtradenegotiationswereheld simultaneouslyattwolevels , multilateralandbioregional — sincewhatisofferedatone levelislostasanegotiatingchipattheother. 2.Itshouldbementionedthatfiguresvaryaccordingtosourcesandtime , especiallywith regardtoChina. 3.SeethearticlesbyF.PealistedintheBibliographyandforupdatedinformationconsult his website , www.felixpena.com.arg.An excellenthistoricalanalysisis given by Sanahuja ( 2008 ) . References delArenal , Celestino ( 2009 ), 犚犲犾犪狋犻狅狀狊犫犲狋狑犲犲狀狋犺犲犈犝犪狀犱犔犃 — 犃犫犪狀犱狅狀犻狀犵犚犲犵犻狅狀犪犾犻狊犿 犻狀犉犪狏狅狌狉狅犳犪 犖犲狑 犅犻犾犪狋犲狉犪犾犛狋狉犪狋犲犵狔 , WorkingPaper36 / 2009 , Madrid:Real InstitutoElcano. Buck , Karl ( 2008 ), TheStrategicPartnershipbetweentheEUandLAC — JustNiceWordsor ConcreteAction ? , in:Graf / Stehnkens ( eds. ), 犔犪狋犲犻狀犪犿犲狉犻犽犪 — 犘狅犾犻狋犻犽 , 犠犻狉狋狊犮犺犪犳狋狌狀犱 犌犲狊犲犾犾狊犮犺犪犳狋 , BadenBaden:Nomos , 97111. Buck , Karl ( 2009a ), 犈犾犱犻犾狅犵狅狆ó犾犻狋犻犮狅犲狀狋狉犲犾犪犝狀犻ó狀犈狌狉狅狆é犪狔犃犿é狉犻犮犪犔犪狋犻狀犪 — 犇犲 犪犮犮犻狅狀犲狊犺狌犿犪狀犻狋犪狉犻犪狊犪犾犪犪狊狅犮犻犪犮犻ó狀犲狊狋狉犪狋é犵犻犮犪犲狀狋狉犲犾犪 犝狀犻ó狀 犈狌狉狅狆犲犪 , 犃犿é狉犻犮犪 犔犪狋犻狀犪狔犲犾犆犪狉犻犫犲 , 狔狊狌犻犿狆犾犲犿犲狀狋犪犮犻ó狀 , paperpresentedattheLASACongress , Rio deJaneiro , June. Buck , Karl ( 2009b ), 犜犺犲犈狌狉狅狆犲犪狀犪狀犱 犔犪狋犻狀 犃犿犲狉犻犮犪狀犐狀狋犲犵狉犪狋犻狅狀 犘狉狅犼犲犮狋狊 , paper presentedatthe WarsawandCracowconferenceson “ EuropeandLatin America: Lookingateachother ? ” June2009 ( forthcoming ) . Caetano , Gerardo ( 2009 ), Integraciónregionalyestrategiasdereinsercióninternacionalen AméricadelSur , in: 犖狌犲狏犪犛狅犮犻犲犱犪犱 , 219 ( JanuaryFebruary ), 157172. CurrentandFutureCooperationundertheEUMERCOSURAgreement 3 27 EUCouncil ( 2008 ), 犈犝犅狉犪狊犻犾犑狅犻狀狋犃犮狋犻狅狀犘犾犪狀犃犱狅狆狋犲犱狅狀22犇犲犮犲犿犫犲狉2008 , doc.5522 / 09. EUCouncil ( 2009 ), 犈犝犕犈犚犆犗犛犝犚犕犻狀犻狊狋犲狉犻犪犾犕犲犲狋犻狀犵 , Prague2009 , doc.8438 / 09. EUCouncil ( 2010 ), 犈犝犕犈犚犆犗犛犝犚犐犞犛狌犿犿犻狋 , Madrid17May2010 , doc.9870 / 10. EUCouncilofMinisters ( 2009 ), 犐狀犳狅狉犿犪狋犻狅狀犫狔狋犺犲犈狌狉狅狆犲犪狀犆狅犿犿犻狊狊犻狅狀狅狀犃狊狊犻狊狋犪狀犮犲犳狅狉 犜狉犪犱犲 , doc.8695 / 09. European Commission ( 2007 ), 犕犈犚犆犗犛犝犚 犚犲犵犻狅狀犪犾 犛狋狉犪狋犲犵狔 犘犪狆犲狉20072013 , 2 August , E / 2007 / 1640. EuropeanCommission ( 2009a ), 犈犝犕犈犚犆犗犛犝犚 犚犲犾犪狋犻狅狀狊犆犗犕 狀狅狀狆犪狆犲狉 , EU Council AMLAT MeetingDocument21 / 09. European Commission ( 2009b ), 犜犺犲 犈犝 犪狀犱 犔犪狋犻狀 犃犿犲狉犻犮犪 — 犌犾狅犫犪犾 犘犾犪狔犲狉狊 犻狀 犘犪狉狋狀犲狉狊犺犻狆 , COM ( 2009 ) 495final , andrelatedCommissionstaffworkingdocument SEC ( 2009 ) 1227final. Flores , Renato ( 2009 ), 犆狅狀狏犲狉犵犲狀犮犻犪犲狀犃犔狀狌犲狏狅狊犿狅犱犲犾狅狊犱犲犻狀狋犲犵狉犪犮犻狅狀犳犾犲狓犻犫犾犲狆犪狉犪犾犪 狆狅狊犮狉犻狊犻狊 , in: 犕犈犚犆犗犛犝犚犪犫犮 , 15May. GenuaCovino , Gladis ( 2008 ), Laintegracionlatinoamericana , sudimensioneconomic , politicayderelacionesconterceros , LatinAmericanTradenetwork — LatinAmerican FacultyofSocialSciences ( LATNFLACSO ) workingpaper95 , July. Heidrich , Pablo ( 2007 ), Introduccionalaeconomiapoliticadelosproyectosdeintegracion energeticadelaCSAN , LATN / FLACSOworkingpaper87 , December. Hoffmann , Bertand Detlef Nolte ( 2007 ), 犔犃狊 犖犲狑 犌犲狅狆狅犾犻狋犻犮犪犾 犘狅狊犻狋犻狅狀 犪狀犱 犐狋狊 犐犿狆犾犻犮犪狋犻狅狀狊犳狅狉犈狌狉狅狆犲 , GIGA Hamburg , June. Honty , Gerardo ( 2006 ), EnergíaenSudamérica — unainterconexiónquenointegra , in: 犖狌犲狏犪犛狅犮犻犲犱犪犱 , JulyAugust , 119135. Pea , Felix ( 2008a ), EnquesediferenciariaUNASURdeun MERCOSURampliado ? in: 犕犈犚犆犗犛犝犚犪犫犮 , 19June. Pea , Felix ( 2008b ), TienefuturoelMERCOSUR ? in: 犕犈犚犆犗犛犝犚犪犫犮 , 12December. Pea , Felix ( 2009a ), Unaexperienciademediosiglo — laintegracionregionalenelnuevo contextoglobal , in: 犕犈犚犆犗犛犝犚犪犫犮 , 16April. Pea , Felix ( 2009b ), 犛犲犺犪犪犫犻犲狉狋犪狌狀犪狏犲狀狋犪狀犪犱犲狅狆狅狉狋狌狀犻犱犪犱 ? — 犔犪狊狀犲犵狅犮犻犪犮犻狅狀犲狊犲狀狋狉犲 犲犾犕犈犚犆犗犛犝犚狔犾犪犝犈 , online:http: // www.felixpena.com.ar , 18December. Roloff , Ralf ( 2007 ), Aufdem Wegzurvariablen Geometrie — Implikationen der EU ErweiterungfürdieESVPundNATO , in: 犐狀狋犲犵狉犪狋犻狅狀 , 1 , 5359. RuedaJunquera , Fernando ( 2009 ), Quesepuedeaprenderdelprocesodeintegración europea ? , in: 犖狌犲狏犪犛狅犮犻犲犱犪犱 , 219 , JanuaryFebruary , 5975. Sanahuja , JoséAntonio ( 2009 ), Del “ regionalismoabierto ” al “ regionalismopostliberal ”— crisisycambioenlaintegraciónregionalenAL , in: 犃狀狌犪狉犻狅犱犲犾犪犐狀狋犲犵狉犪犮犻ó狀犚犲犵犻狅狀犪犾 犱犲犃犔狔犲犾犌狉犪狀犆犪狉犻犫犲 , 7 , 20082009 , 1154. Sukup , Viktor ( 2001 ), 犃 犛狅狌狋犺 犃犿犲狉犻犮犪狀 犆狅犿犿狅狀 犕犪狉犽犲狋 — 犕犈犚犆犗犛犝犚 : 犗狉犻犵犻狀 , 犗犫犼犲犮狋犻狏犲狊 , 犘犲狉狊狆犲犮狋犻狏犲狊 , 2April , Brussels:EC. 3 28 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation 犘犪狉狋犐犐犐 犈狀犲狉犵狔犛犲犮狌狉犻狋狔犪狀犱犆犾犻犿犪狋犲犆犺犪狀犵犲 3 31 犆犺犪狆狋犲狉9 犆犺犻狀犪狊犃狆狆狉狅犪犮犺狋狅犈狀犲狉犵狔犪狀犱犆犾犻犿犪狋犲犆犺犪狀犵犲 )&*+,-.&", 1.犐狀狋狉狅犱狌犮狋犻狅狀 Climatechangehasemergedasoneofthetopsecuritychallengesoftheearly twentyfirstcentury.UNSecretaryGeneralBanKiMoonrecentlystatedthat “ climatechangeisalteringthegeopoliticallandscape ”, as manifested by increasedcompetitionoverArcticresources , increasedintrastateandinterstate migrationandrisingsealevels ( FederalNewsService2009 ) .Promotedbythe bullmarketinenergypricesandtheascenttoanewleveloftheclimatechange issueafewyearsago , anewefforttodevelopnewenergysourcesandrenewable energyhasbeenevidentaroundtheworld.Clearly , climatechangeandenergy securityissueshavecaughtpeoplesattention.Therelationshipbetweenenergy securityandclimatechangehaschangedbeyondrecognition , anditposesagreat challengetobothpractitionersandacademics.Moreover , climatechangeand energysecurityissueshavemovedfromthemargintothecentreofsecurity policies , particularlysincetheendoftheCold War.Ontheonehand , climate changeandenergysecurityhavebeenrecognisedasanimportantsourceof threatstohumansurvivaloverthepastfewdecades.Humandependenceona modernenergysupplyforasustainablefuturein modernsocietiesisvastly greaterthanit wasin an agrarian society.Onthe other hand , itis now universallyacknowledgedthatinternationalcooperationorcollectiveactionare notenoughtoresolvethecrisiscausedbyclimatechangeandenergysecurity. Internationalcollectiveactiononclimatechangeandenergysecurityisasocial andpoliticalchallenge , aswellasaneconomicone.Itinvolvesvarioussectorsof thenationalsocialeconomyandsohasanimportantbearingonthepolitical legitimacyandstabilityofallnations.Theneedforaccesstoenergyandother naturalresourceshasincreasedandmorestatesareingreatercompetitionfor 3 32 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation themthaneverbefore. Asthescarcityoftraditionalenergyandclimatechangeemergedasserious problems , economicgrowthpatternsinvariouscountriesgraduallyevolvedina directionthatsuitednewenergysources.TheEUandtheUnitedStates , as globalsuperpowers , aspiretocornerfutureenergymarketsthroughnegotiations onreducingcarbonemissions , coupledwithadesiretodominatethedrivetoward cleanenergyandenergyefficiencyandinnovationbybuildingaclimatechange regime.However , manydevelopingcountries , includingChina , whicharestill attheindustrialisationstage , arestillpursuingtheWesterncountrieseconomic model — whichis growthoriented , unsustainableandresourceconstrained — datingfromthelateeighteenthcentury.Chinahasanurgentneedtopromote developmentwhilejoiningintheglobalstruggleagainstglobalwarmingand contributingto globalenergy security.Sincethe1990s , China has paid increasingattentiontoenvironmentalprotectionandthegrowinghazardsposed byclimatechange.Infact , inits2008 whitepaperonclimatechange , the Chinesegovernmentacknowledgedthat “ Chinaisoneofthecountriesmost susceptibletotheadverseeffectsofclimatechange , mainlyinthefieldsof agriculture , livestockbreeding , forestry , naturalecosystems , waterresources andcoastalzones ”( BBC MonitoringAsiaPacificPolitical2008 ) .Asoneofthe worldsleadingeconomicpowers , Chinaiscentraltoregionalandglobalefforts tofightglobalwarmingandclimatechange.Anysuccessfulinternationaleffort tomitigatethreatstohumanandnationalsecurityposedbyclimatechangemust inevitablyincludeChina ( Harris2004 ; Elliott2002 ) .Chinaspopulationhasnow reached1.3billion , anditseconomyisoneoftheworldslargestandfastest growing.Consequently , Chinaisexperiencing widespreadand often acute environmentalchallengeswithseverelocal , nationalandregionalconsequences ( Smil1993 ; Japan EnvironmentalCouncil2000 ; World Bank1997 ) .Ithas producedvastamountsofgreenhousegases , especiallycarbondioxidefromthe burningoffossilfuels ( coal , oilandnaturalgas ) .Duetoitshigheconomic developmentandlowenergyefficiency , Chinaintheearly1990sbecamethe secondlargestnationalsourceofgreenhousegasesanditwillbecomethelargest sourceby2020 ( UNFCCC 2003 ; Chinas Officeof NationalCoordination CommitteeforClimateChange2003 ) .ConcerningChinashighcarbonenergy mix , itisnowtheprincipalemitterofgreenhousegasesandshouldbearglobal responsibilityforaddressingtheproblemofclimatechangeandenergysecurity. Chinaspracticewithregardtoclimatechangeandenergymustsafeguardand coordinatebalanced developmentbetween energyconsumption , theearths climateandeconomicgrowth. ChinasApproachtoEnergyandClimateChange 3 33 Withtheseconsiderationsinmind , thischapterwillfirstexaminesomeof theimplicationsandconsequencesofclimatechangeandenergysecurity ; second , itwilldescribeChinasenergymixandemissionsstructure ; andfinallyitwill discuss Chinas energy and climate change practices.In the conclusion , comparisonswillbedrawntotheLatinAmericanregion. 2.犜犺犲犔狅犵犻犮犪狀犱犐犿狆犾犻犮犪狋犻狅狀狊狅犳犆犾犻犿犪狋犲犆犺犪狀犵犲犪狀犱犈狀犲狉犵狔犛犲犮狌狉犻狋狔 Thecontemporary worldisbasedonoil , and globalenergysecurityis crucialtoeconomicgrowthandpeopleslivelihoodsinallcountries.Energyis alsofundamentaltotheprosperityandsecurityofnations.Theadventof globalisation , thegrowinggapbetweenrichandpoorandtheneedtofightglobal warmingareallintertwinedwithenergyconcerns.Thereisapressingneedfor strategicthinkingabouttheinternationalenergysystem.Supplyanddemandon theinternationalenergymarketsareunbalanced.Areasrichinoilresourcesare stillatthecentreofgeopolitical , politicaland militaryconflicts.Energy exportingnationsuseenergy weaponstopursuetheirpoliticalandeconomic goals.Majorenergysuppliers — from RussiathroughIrantoVenezuela — have beenincreasinglyableandwillingtousetheirenergyresourcestopursuetheir strategicandpoliticalobjectives ( Foreign RelationsCouncil2006 ) .Itisalso importanttotakealongtermperspective , deepenenergycooperation , increase energyefficiencyandfacilitatethedevelopmentanduseofnewenergyresources. Evidently , thereisacorrelation between energy competition driven by climatechangeandtheinternationalpoliticalandeconomicenvironment , know how , capacitiesandpossessionofresources.Theinteractionofthesefactors constitutesacompleteenergychain.Theenergychaincomprisestheinstitutions andactivitiesrelatedtothesearchfor , developmentandutilisationofenergy resources.Thediscoveryofnewenergysources , revolutionarychangesinthe energychainandthecorrespondingchangesinpoliticaleconomyandinnovation systemshavecombinedtolaythegroundworkforamoreeffectiveuseofenergy , whichisfundamentaltotheriseofmajorpowers. Energyisfundamentaltotheprosperityandsecurityofnations.Thenext generationenergy willdeterminenotonlythefutureoftheinternational economicsystem , butalsopowershifts.Competitionintheenergychainwill determinetheresultofthepowerstrugglebasedoninnovationandinfluencethe evolutionofpowerinternationally.New energy sourcesare notonly an importantconstituentofthenextgenerationenergysystem , butalsowillchange futureinternationalpowerconfigurations.Therequisiteconditionofsignificant structuralchangeintheinternationalsystemisanenergyrevolutionbasedonthe 3 34 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation emergenceofnextgenerationenergyledcountries ( Yergin2006 ; Kennedy 1968 ) .Technologicalinnovationis ofkeyimportancein the energy power structure.Modelskislongcycletheory , Kondratievslongwavetheoryand Schumpeterseconomiccycletheoryhaveallconfirmedthehistoricalcontribution oftechnologicalrevolutionsandinstitutionalinnovationtotheriseandfallof greatpowers ( Modelski1987 ; Kindleberger1973 ) .Theyallemphasisetheeffect of “ greattechnologicalbreakthroughs ” ontheworldeconomiccycle , indicating thatthecycleowesitsrisetotechnologicalbreakthroughs , which mainly happenedwithregardtoenergy , suchaselectricity , thesteamengineandthe internalcombustionengine.MichaelE.Porter , inhisbook 犜犺犲犆狅犿狆犲狋犻狋犻狏犲 犃犱狏犪狀狋犪犵犲狅犳犖犪狋犻狅狀狊 , explainedwhynationsshouldmakeaninnovationbased modelofcomparative advantages a priorityin developing theircompetitive advantage ( Porter1990 ) . Asthedebateoncollectiveactionagainstclimatechangehasheatedup , Westerncountrieshavemonopolisedthefutureenergysystembasedonnewand alternativeenergy.PeterEvansoncepointedoutthateverymajorpowerthat cametodominatetheinternationalsystem hadsomeknowhow advantages ( Evans1985 ) .Fornow , itseemsthatalowcarboneconomyandcleanenergy willultimatelydeterminethefutureofenergypowertransitions.Jonathanand otherscholarsrecognisethattheEUsenvironmentalpolicy , gearedtoward boostingtheblocscompetitivenessandpromotingclimatenegotiations , could alsoboostitscreativityandcompetitiveadvantage ( Golub1998 ) .In2007 , the 犛狋犲狉狀犚犲狏犻犲狑犚犲狆狅狉狋狅狀狋犺犲犈犮狅狀狅犿犻犮狊狅犳犆犾犻犿犪狋犲犆犺犪狀犵犲犪狀犱狋犺犲犔狅狑犆犪狉犫狅狀 犈犮狅狀狅犿狔犚犲狆狅狉狋 bytheRoyalInstituteofInternationalAffairsbothconfirmed thattheEUpromotesclimatenegotiationsnotjustbecauseitisaforerunnerin thelowcarboneconomy , butalsobecauseitwantstoachievedominancein globalgovernanceandlaythefoundationsforthefutureeconomy.SeniorUS politiciansPaula Dobriansky , Richard Lee ArmitageandJoseph Nyeonce proposedthatUSinvolvementinclimatenegotiationsshouldenhancethenations “ smartpower ” andthecompetitivenessofitsindustry ( Foreign Relations Council2006 ) . Westerncountriesalwaysusetherapidlygrowingcarbonemissionsinemerging economiesasa majorexplanation ofglobal warming. Nationalcompetitive advantagesareassociatedwithcarbonemissionsreductions.Forthosewhoadvocate climate diplomacy , environmentalcapacity is an important part of a states comprehensivenationalpower.JamesN.Rosenauusestheconceptofa “ balanceof payments ” insteadofa “ balanceofpower ” inglobalenvironmentalgovernance , and arguesthatdevelopingcountriesshouldsharethecostsandresponsibilitiesofglobal ChinasApproachtoEnergyandClimateChange 3 35 environmentalprotection ( RosenauandCzempiel1992:1214 ) .Historically , the emergenceofgreatpowershasbeenaccompaniedbytheriseofanewgenerationof energy.Sincetheestablishmentofthemoderninternationalsystem , theenergy chainhasundergonetwomajorchanges.Thefirstchangewasthefirstindustrial revolutionofthe1860susheredinbythe United Kingdom and markedbya transitionfrom “ thefuelwoodorbiofueltimes ” tothe “ coalera ” .Thesecond changewasthesecondindustrialrevolutionofthe1920sstartedbytheUnited Statesandmarkedbyatransitionfromthe “ coalera ” tothe “ oilage ” .Today , a thirdrevolutionistakingplacebasedoncleanandlowcarbonenergy.Underthe longcycletheory , possessionanduseofnewenergyiscloselyrelatedtonational technologicalandinstitutionaladvances.Countrieswithadominantpositionin newenergyarelikelytohaveaninstitutionalandtechnicaladvantagestemming fromtheirpossessionanduseofnewenergy.Theyhavetobreakthroughthe constraintsimposedbypreviouseconomicandpoliticalstructuresandideology , whichwillleadto majorchangesintheglobalindustrialchain , allocationof resourcesandnationalcompetitiveness.Therefore , wehaveeveryreasonto believethatthosenewenergypowerhouseswillultimatelychangetheglobal arrangementofpowerthroughinternationalcompetitioninthefuture.As historyshows , everysignificantstructuralchangeintheinternationalsystemhas beenduetoarevolutionintheenergychain.Thecountryornonstateentitythat seizedanewenergychainorapartofitattemptedtochallengetheinternational statusquo. Theimplicationsofglobalgovernanceforclimatechangeandenergyare twofold.First , developedcountriescontinuetodominateinternationalclimate changenegotiations.Thefightagainstglobalwarmingcanbedescribedinterms ofcommongoods.Eventhoughtherearemanyinternalcontradictionsamong richcountries , theyshareacommoninterestintryingto maintainandeven widenthedevelopmentgapandinstavingofftheriseofemergingpowers.Asa result , wealthycountries maintaintheirleadingpositioninthepostKyoto climateregimebuildingprocess.Developedcountriesinitiallycommunicatedwith andconsultedmajorgreenhousegasemittersinabidtoestablisharationaland efficientpostKyotosystem that would safeguard and coordinate balanced developmentbetweenenergyconsumption , theEarthsclimateandeconomic growth.Atthesametime , developedcountriestriedtopersuadedeveloping countriestoacceptsoftandhardenvironmentalconstraints.Second , duetothe earlydevelopmentadvantageofdevelopedcountriesandthelatedevelopment advantageofdevelopingcountries , any majorenergyinnovation wouldbring abouta new industrialrevolution and the reallocation of globalindustry. 3 36 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation Developedcountrieshaveevenlaunchedaclimateorcarbontaxtosetlimitson theeconomicgrowthofthedevelopingworld , particularlyChina.Developing countriesaregraduallyassumingtheobligationsofstabilisinggreenhousegases. Butbecausetheylacknewenergysourcesandadvancedtechnology , developing countriesonlybecomeemergingmarketsforWesternmultinationalcompanies , whiledevelopedcountriesaremakingfulluseofclimatechangeopportunitiesto strengthentheirtechnicalandcompetitiveedge.Asaresult , theycontinueto dominatetheinternationalsystem.Obviously , thesituationisthesameforthe environmentaltraderegime , which wouldletdevelopingcountriesbearthe programmedbaselinecosts , whiledevelopedcountriesbearincrementalcosts. Developedcountriesaredoingthattoincreasetheenvironmentalconstraintson developing countries and eventually restrictthe development of developing countriesintermsofbindingrules. 3.犆犺犻狀犪狊犈狀犲狉犵狔犛狋狉狌犮狋狌狉犲犪狀犱犈犿犻狊狊犻狅狀狊犛狋犪狋狌狊 The Intergovernmental Panel on Climate Change ( IPCC ) s Fourth AssessmentReportestimatesthatcarbondioxideemissionsfrom energyuse couldrisebybetween45percentand110percentbetween2000and2030.The reportindicatesthattwothirdstothreequartersoftheincreasedemissions wouldcomefromdevelopingcountries.Thereportalsomakesitclearthatthe greatertheeffortstoreduceglobalgreenhousegasemissions , thelesssevere wouldbetheimpactofclimatechange. Asoneofthe worldsleading developingcountries Chinaiscentralto regionalandglobaleffortstofightglobalwarmingandclimatechange.Any successfulinternationalefforttomitigatethreatstohumanandnationalsecurity posedbyclimatechangemustinevitablyincludeChina.Chinasroleinclimate changederivesfromitsenergyintensiveeconomicstructure.Chinastransition fromalightmanufacturingeconomytoonefeaturing moreenergyintensive industries , includingiron , steel , cement , chemicalsandaluminium , isamajor factorbehindthistrend.Chinaaccountsforabout35percentofworldsteel productionandabout50percentoftheworldsproductionofcement ( Federal NewsService2008 ) .Theseindustriesandassociatedactivitiesare “ layinga foundationforwhatwemightcallaconsumptionledChineseenergychallenge downtheroad ”( FederalNewsService2008 ) .Chineseconsumersincreasing tendencytopurchaseautomobilesandairconditioners , amongotherproducts , is establishingthebasisforChinasfutureenergychallenge ( FederalNewsService 2008 ) .Italreadyproducesvastamountsofgreenhousegases , especiallycarbon dioxidefromtheburningoffossilfuels. ChinasApproachtoEnergyandClimateChange 3 37 Chinaisamajorenergyproducer.Sincethe1990s , Chinahasalwaysmet over90percentofitsoverallenergyneedsonitsown.Chinawilladheretothe policyofmeetingitsenergyneedsmainlythroughdomesticsupply , andpriority willbegiventoraisingenergyefficiency.Chinasshorttermgoalistomeetthe targetofa20percentreductioninenergyconsumptionperunitofGDPby2020. However , Chinascurrentpercapitaconsumptionofenergyisverylow.Itis only66percentoftheworldaverage , 13.4percentofthatoftheUnitedStates , 26.7percentofthatofJapanand28.1percentofthatofBritain.Chinasper capitaoilimportsareonlyaquarteroftheworldaverageandonetwentiethofthose ofboththeUSandJapan.Ithasbeenonly14yearssinceChinabecameanetoil importerin1993 , andonlyfouryearssinceChinafinallybecameacountryimporting over100milliontonnesofoilperyear.However , Chinasoilimportshavesurgedsince 2003whenitreplacedJapanasthesecondlargestconsumerofpetroleumproductsin theworld.TheInternationalEnergyAgency ( IEA ) predictsthatby2030importswill accountfor85percentofChinastotaloilconsumption ( Chinascrudeoilimports increasedby14.5percentin2006alone ) .Thus , energyshortageisapossible bottleneckineconomicdevelopmentandinthelongterm , ifthisisnotresolved , Chinaseconomicfuturewillbeveryunstable. In2008 , ChinaovertooktheUnitedStatestobecomethelargestemitterofcarbon dioxideinthe world.By2020 Chinasaveragepercapitaenergyconsumptionis expectedtomatchthecurrentglobalaverage , meaningthatChinaalonewillaccountfor almostonethirdoftheworldstotalgreenhousegasemissionsbetween1990and2020 ( PaulandYu2005 ) .Thus , Chinaclearlymatterswhenitcomestoclimatechange. WithoutsubstantialeffortsonthepartofChinatolimitfuturecarbonemissions , any measuresundertakenbyothercountriestoaddresstheclimatechangequestionwillbe negated — hence , theimportanceofChinasapproachtoclimatechangeanditsrolein internationalnegotiations. Basedoncurrentprojections , therefore , fossilfuelsareexpectedtoremaina keypartofChinasenergymix , withoilplayinganincreasinglyprominentrole. Globally , oildemandisexpectedtogrowby1.3percentayear , from83.7 millionbarrelsperdayin2005to98.5millionbarrelsperdayin2015 , and116.3 millionbarrelsperdayin2030.Roughly42percentofthisincreaseddemand willcomefromIndiaandChina , while “ Chinaaccountsforthebiggestincreasein oildemandinabsolutetermsofanycountryorregion ”( InternationalEnergy Agency2007:79 ) . Inthefuture , theexpansionofChinastransportationsectorisexpectedto sharplyincreasethecountrysdemandforoil.Bytheyear2030 , automobile ownershipispredictedtoincreaseto400millionfromonly27millionin2004. 3 38 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation Consequently , oilconsumptioninChinaisexpectedtorisefromthecurrent7. 58millionbarrelsofoilperdayto1012millionbarrelsperdayby2015 , the majorityofwhichisexpectedtobeimported.Currently , Chinaimports53per centoftheoilthatisconsumed.Similartooil , thedemandforcoalisalso projectedtorisefrom4 , 154milliontonnesofcoalequivalent ( Mtce ) in2005 to7173 Mtcein2030 , withdemandfrom ChinaandIndiaaccountingfor threequartersoftheprojectedincreaseupto2030.CoalisthebasisofChinas powergenerationinfrastructure ; 80percentofelectricitygeneratedinChina canbelinkedtocoal , whichisalsotiedtoapproximately80percentofallof ChinasCO 2 emissions.Mostexpertsbelievethatfortheforeseeablefuture — at least30years — thisfundamentalrelianceoncoalwillremain , ifnotincrease dramatically ( OfficeoftheSecretaryofDefense2008:10 ) .By2030 , coalwill constitute63percentofChinasenergydemand mix ( InternationalEnergy Agency2007 ) .ThedominantroleofcoalinChinasenergymixcomplicates Beijingsabilityto achievecertain abatementobjectives. Asthe Chinese governmentarticulatedinits2008 whitepaper: “ Chinascoaldominated energymixcannotbesubstantiallychangedinthenearfuture , thusmakingthe controlofgreenhousegasemissionsratherdifficult ”( BBC MonitoringAsia PacificPolitical2008 ) . 4.犆犺犻狀犪狊犃狆狆狉狅犪犮犺狋狅犆犾犻犿犪狋犲犆犺犪狀犵犲犪狀犱犈狀犲狉犵狔 Chinaisthenewestplayerin worldenergy markets.MajorChineseoil companiesstartedinternationaloperationsinthe1990sandhavemadeimpressive progress.Peacefulenergydevelopmentandinternationalenergycooperationare theinternationaldimensionsofChinasenergypolicy.Chinasenergyintensity — definedastheratioofenergyconsumptiontoa measureofthedemandfor services — isonlyonefifthofthatoftheEuropeanUnion.ButBeijingisseeking amodelthatwillallowittoresolvetheconflictsbetweenenergyconsumption andenvironmentaldegradation. 4.1 InternalCapacityBuildingtoMeettheClimateChangeandEnergyChallenge Chinaisdevelopingdiverseenergyresourcesandputtinginplaceasystem thatsuppliesstable , economicalandcleanenergy.Chinaisworkinghardto developarecyclingeconomysothatitwillgarnerthehighestpossibleeconomic andsocialbenefitswiththelowestpossibleenergyconsumption.Chinahaslaid outmanytasks , policiesand measuresfordevelopingaresourceconserving societyandarecyclingeconomy , forexampletheConservationLaw ( 1997 ) and ChinasApproachtoEnergyandClimateChange 3 39 theRenewableEnergyLaw ( 2005 ) . Chinahaspersistedinrelyingonitsdomesticresourcesandconstantly increasingthesupplyofdomesticenergy.Chinaisnotonlya majorenergy consumingcountry , butalsoamajorenergyproducer.Sincethe1990s , China hasobtainedabove90percentofitsenergyfromdomesticsources ( thefigurefor 2005is93percent ) .Thepotentialofitsdomesticenergysupplyisstillgreat. From1980to2001 , withaverageGDPgrowthratesofabout10percent , China hadabouta5percentgrowthrateinenergyconsumption.Chinaseconomyhas managedtothrivedespitethelimitationswithregardtoenergysupply.China hasconsistentlypursuedthegoalofrelyingonitsdomesticresourcesand constantlyincreasingthedomesticsupplyofenergy.Chinas11thFiveYear Programme ( 20052010 ) for National Economic and Social Development announcedthe “ doublingofthe2000percapitagrossdomesticproduct ( GDP ) in 2010andreducingenergyconsumptionperunitofGDPbysome20percent ” . ChinesePremierWenJiabaocalledforenergysavingsof50milliontonnesofcoal equivalentinthepowerindustryand20milliontonnesofcoalequivalentin1000 majorstateownedindustries. “ TheChinesegovernment , whilecommittedto economicdevelopment , istryinginaresponsiblewaytochangetheeconomic growthpatternbyadjustingtheeconomicstructureandenergymix. ”( Industry Updates2007 ) Underthesenew circumstances , theChinesegovernmentis shiftingfromthepreviousdevelopmentprincipleof “ fastandhealthygrowth ” to “ healthyandfastgrowth ”( IndustryUpdates2007 ) . Furthermore , ChinaissueditsNationalActionPlanonClimateChangein June2007 , andtheChinesegovernmenthasselectedthefollowinggoalstobe achievedby2010:reducingenergyconsumptionby20percent ; increasingthe shareofrenewableenergy ( includinglargescalehydropower ) to10percentof itsprimaryenergymix ; increasingcoalbedmethaneproductionto10bncubic metresayear ; andpromotingnuclearpower ( XinhuaNewsAgency2007 ) . 4.2 WinwinCooperationforEnergySecurity Asarisingpowerpursuingapeacefuldevelopmentpath , Chinasenergy strategyischaracterisedbymutualbenefitsandapolicyofbuildingaharmonious world.Chinahastakenanactivepartinenergycooperationwithothercountries onthebasisofmutualinteresttoensurethestabilityofregionalandglobal energymarkets.PresidentHuJintaohasdeclaredthat “[ the ] coreofChinas energystrategyistogivehighprioritytoconservation , relymainlyondomestic supply , developdiverseenergyresources , protecttheenvironment , stepup internationalcooperation [ basedon ] mutualbenefitandensurethestablesupply 3 40 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation ofeconomicalandcleanenergies ”( Hu2006 ) .Hehasalsodevelopedanew energysecurityconceptthatcallsformutuallybeneficialcooperation , diversified formsofdevelopmentandcommonenergysecuritythroughcoordination. Inordertoencouragethe worldskeyenergyconsumingcountriesto strengthenmutualcooperation , Chinahostedamajorenergyconferencewiththe participationoftopoilconsumers ( theUS , Japan , SouthKoreaandIndia ) in December2006.ChinaandOPEChavebeenengagedsince2005inanenergy dialogueaimedatensuringasteadyenergysupply.Chinasdiplomacytoolsfor energysecurityincludedialogueandcooperation , andthegoalistomaintainthe stabilityand security ofinternationalenergy supplies.In particular , China wishestoengageandcooperatewithkeyplayersinworldenergypolitics , which includesOPECandnonOPECenergyproductioncountries , aswellastheG8 , theG20andthemajoroilconsumingcountries.Atpresent , Chinasmainsources ofoilimportsaretheMiddleEastandAfrica , whereanumberofcountriesare unstable.Moreover , thetransportationofoiltakesplacelargelyontheopen sea , andalsothroughtheStraitsofMalacca , whereChinafacesthedangerof piratesandterroristattacks.Therefore , inordertoguaranteethesecurityof energysupplies , China mustdiversifyitsenergyimportsourcesandseekto importoilfromRussia , CentralAsiaandSoutheastAsia , amongothers. Therearethreekindsofoverseasareasin which Chinaisengaged with regardtoenergy.Thefirstcomprisesmarketseekingcountrieswhichwantto retaincontrolofoilresourcesandusesovereignwealthfundstoexchangetheir crudeoilresourcesformarketinfluence ( RussiaandSaudiArabia ) .SaudiArabia accountsforabout17percentofChinasimportedoil.In2006 , thetwostates signedapactonenergycooperationthatcallsforincreasedcooperationandjoint investmentinoil , naturalgasand mineraldeposits.SaudiArabiasAramco OverseasCo.hasprovided USD750 millionofthetotal USD3 billionin investmenttoconstructapetrochemicalcomplexinFujianprovinceinsouth easternChinathatwillprocess8milliontonnesofSaudicrudeoilperyear.In October2005 , CNPCcompletedaUSD4.18billiontakeoverofPetroKazakhstan , Inc. Thesecond categoryconsistsofcountriesin poorregionsthatneed unconditionalforeignaidandinvestment ( Angola , Nigeriaandother African countries ) .ChinaandNigeriasigneddealsthatgaveChinafouroilexploration licensesinNigeriainreturnforacommitmenttoinvestUSD4billioninNigerian infrastructure.ChinaandKenyaalsosignedanagreementforlicensesallowing ChinasNationalOffshoreOilCorporation ( CNOOC ) toexploreforoiloffthe coastofKenya. Thethirdcategoryisthosecountriesin whichthe USandother Western ChinasApproachtoEnergyandClimateChange 3 41 governmentsforbidtheircompaniestoinvest ( Iran , Sudan , Myanmar ) .Chineseoil companieshavesignedlongterm contractsvaluedat USD 200billion withIran , makingChinaIransbiggestoilandgascustomer.InJuly2007 , CNOOCobtained permissiontosearchforoilinpartsofSomalia.ChinahasinvestedheavilyinSudan , establishingoilexplorationrightsin1995 , andnowoverhalfofSudansoilexportsgo toChina , accountingfor5percentofChinastotaloilimports. Oilresourceintenseareasstilltendtobeaffectedbygeopolitical , political andmilitaryconflicts.TheinstabilityinIraq , theIrannuclearcrisis , terrorist threatsandattacks , thehumanitariancrisisandfragiledemocratictransitionsin subSaharanAfricaandstrikesinNigeriaandBrazilallposemajorchallengesto Chinasnationaloilcompanies. 4.3 EquitableDevelopmentbyvirtueof “ CommonButDifferentResponsibilities ” Chinaandotherdevelopingcountriesadherencetothisstandardreflects , as manypoliticiansandlegalanalystshavenoted , abasicstructuralshortcoming withintheKyotoProtocolregimetotheextentthatdevelopingcountriesare , in essence , exemptedfrom universalabatementobligations.Thisisparticularly problematicbecause , asonelegalanalysthasnoted: “ Developingcountrieswill beresponsibleforhalftheworldsemissionsby2020orearlier ”( Gerber2008: 333 ) .Nevertheless , ChineseleadersoftenrespondthateachpersonintheUS nowemitsmorethanfivetonnesofcarbonperyear , whileinChinathefigureis onlyonetonneperyear.SincethestartoftheIndustrialRevolution — thatis , overthepasttwocenturies — theUSandEuropehaveaccountedformorethan50 percentoftotal , accumulatedglobalemissions , whileChinahasaccountedfor lessthan8percent.The50leastdevelopedcountrieshavetogethercontributed lessthan0.5percentofglobalcumulativeemissionsover200years ( M2 Presswire2007 ) . For China , thelargest developing country , global warmingissues are intimatelylinkedtoeffortstomodernisetheeconomyandtheenergystrategy neededtobringaboutsuch modernisation.Furthermore , theglobaldilemma with regard to energy and the environment should be solved through internationalcoordination , cooperationand mutualassistanceincleanenergy development.Developing countries are deeply dissatisfied with developed countriesinthisrespectbecausethelatterrefusetopaythenecessaryregardto theconstraintsimposedbydevelopingcountrieslackofdevelopment.Wealthy countries , forinstance , placealowpriorityontechnologytransfers , andinsist onimposingahighpriceontheintellectualpropertyrightspertainingtothese technologies.Through Clean Development Mechanisms ( CDMs ), theindustrialised 3 42 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation countriescouldalsomeetpartoftheirobligationsforreducingemissionsunderthe KyotoProtocolbyreceivingcreditsforinvestinginprojectsthatreducecarbon emissionsindevelopingcountries.However , developedcountriescouldalso adopta moreambitiousprogrammeoftransferringadvancedclean energy technologiestothedevelopingworld.Chinahasjoinedwithotherdeveloping countriestodemandthatdevelopedcountriesprovidenoncommercialtechnology assistancetodevelopingcountriestohelpthemcopewithclimatechangeand cultivatelowcarbonemissioneconomies. Byshifting thefocus ofclimate talksto adaptation , and away from mitigation , boththerichandpoorcountriescouldavoiddoingwhattheyhave dreadedthemost:demandingthatcountrieswithentrenchedeconomicinterests reducetheirgreenhousegasemissions.Chinahasresistedproposalstoimposea globalcarbontax ( aproposalsupportedbytheEU ) asamitigationmeasurefrom whichrevenuecouldbeusedtofinancetechnologicaltransfers.Ahighertrade dependencewouldresultinasharingoftheburdenassociated with Chinas energyintensiveindustriesandresultingcarbonemissions.In2005 , Chinas GDPwasRMB18 , 670billion , anditsexportsofgoodsandservicestotalled aroundRMB6 , 858billion.In2006 , ChinasGDPwasRMB21 , 438billionand itsexportsofgoodsandservicesRMB8 , 396billion ( EconomistIntelligenceUnit 2007 ) .ChinaisagainsttheglobalcarbontaxproposedbytheEU becauseit believesitwouldhinderitseconomicdevelopment. 4.4 ChinasShifttoaLowcarbonEconomy Thegloballowcarbonfutureandtheemergenceoflowcarbontechnology willenhancetheenergyindustryworldwide , aswellasthestrategicpositionof theequipment manufacturingindustry.Chinaisfacingbothunprecedented competitivepressureandopportunitiesfordevelopment.Intheprocess , China hasstrengtheneditslaws , regulations , policies , systemsand management mechanismstoactivelyaddressclimatechange , andalsotocreateastrong institutional , policyandmarketenvironmentforthelowcarbondevelopmentof enterprises.Withregardtoitsindustrialinfrastructureandcapacities , Chinahas carriedoutindustrialupgrades , eliminatedoutdatedproductioncapacityand focusedonenergyefficiencyandpositiveinvestmentsingreenenergy.More importantly , a range oftools have been used to help establish market mechanismsandindustrialsystems , suchasencouragingtechnicalinnovation , promotinglegislation , changingconsumptionpatternsandestablishingacarbon market.Atthesametime , Chinahasalsoappropriatelyadjusteditstradepolicy , imposedrestrictionsontheexportofhighenergyconsumptionproductsand ChinasApproachtoEnergyandClimateChange 3 43 expandedtheimportofmanufacturedgoods. Technologyisthe mostimportantlongterm strategyfordealing with climatechange.Inthisregard , Chinesescienceandtechnologyhaveprovided someusefultoolsforaddressingclimatechange.Chinaisvigorouslydeveloping energysavingand energy efficienttechnologies , renewable energy and new energytechnologies , and “ cleancoal ” .OthertechnologiesChinaisexploringand utilisingincludeadvancednuclearenergy , carboncaptureandstorage , bio sequestrationandcarbonsequestration.Thedevelopmentofenergytechnologies willhelptoreducethenearlyonetrillionUSdollarcostofeach.Chinahasalso emphasisedraisingpublicawarenessofthelowcarbonissue.Experiencehas shownthateffectivesocialparticipationisthebasisforatransitiontoalow carboneconomy. 5.犆狅狀犮犾狌狊犻狅狀 TherearesimilaritiesbetweenSinoLatinAmericanrelationsandSinoEU relationsineconomicterms , althoughtheEU hasgreaterinfluenceandthe relativelypooreconomicperformanceofLatinAmericahithertoislargelydueto competitionfromtheEUratherthanfromChina.Despitebearingrelativelylittle responsibilityforthecurrentimpactofclimatechange , like China , Latin Americancountrieshavedeterminedthatitisintheirowninteresttobepartof thesolution.Mexicohasdevelopedaneconomywideplantohalveitsprojected emissionsby 2050 via a capandtrade programme.Brazilis committed to reducingannualdeforestationby70percentby2018:deforestationisthelargest sourceofemissionsinBrazil , andwhenitisincluded , Brazilisoneoftheworlds topemitters.Thistargetisthereforeasignificantsteptowardsmeetingglobal emissionstrajectoriesthatgofurthesttowardsreducingclimatechange.EU Latin Americanrelationsare moreinstitutionalisedthanSinoLatin American relations.ThemaindifficultycharacterisingEULatin Americanrelationsat presentistheEUsprioritisationofEasternEuropeandAsiaPacificcountries. ChinaisheavilyinvolvedinSouthern markets , butneedstomoveforward. AlthoughLatinAmericaisnotamajorimportmarketforChineseenergy , itwill haveasignificantroletoplayinthediversificationofChinasenergyimports. Chineseinvestmentsintheenergysectorwillalsohelptoalleviatetheshortage offinancialresourcesintheregion , andLatin Americanenergycooperation wouldbemutuallybeneficial.LatinAmericancountrieshavethewherewithalin terms ofenergy , resources and biologicaldiversity to makethe region independentinitsexternalinteractions , as wellasto overcomeitscurrent 3 44 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation vulnerabilityandlow energyefficiency.Cooperation between China , Latin Americaandthe EU hasgreatpotential , both on atripartitebasisand multilaterally , includingthereform ofmultilateralmechanisms , newenergy cooperationandsoon. Moreimportantly , Chinasresponsetoenergyandclimatechangehasa numberofsocial , politicalandeconomicimplications.First , itisclearthatChina hasproactivelyaddressedthechallengein multiple ways , includinginpolicy , legalandtechnicalterms.Anumberofwealthycountries , includingtheUnited States , have been unable to implement adequate measures to facilitate greenhousegasemissionsreduction.Theyhavesoughtonlytoadoptincremental measuresdomesticallywhileavoidinginternationalobligations.Notwithstanding thisstateofaffairs , Chinahasdecidedtomoveforward.Chinahasuseditsdual statusasadevelopingcountry ( withrightstoandneedfordevelopment ) andits growingroleasamajorcontributortoglobalenvironmentalproblems ( suchas greenhouse gas emissions ) to acquire substantialinfluencein international environmentalnegotiations.AsPresident HuJintaodeclaredatthe2009 UN ClimateSummit , Chinawilldecreasecarbondioxideemissionsbyasignificant quantityby2020incomparisonto2005levels , forexample , byincreasingthe shareofnonfossilfuelsinprimaryenergyconsumptiontoaround15percentby 2020 ( FuJing2009 ) .Tobesure , Chinaiswellpositionedtoleapfrogontoa cleanenergydevelopmentpath.Inthelongerterm , however , Chinawouldshow trueleadershiponclimatechangeinthedevelopingworldbyadoptingaconcerted transitiontoaneconomythatproducesfewercarbonemissions.Suchachoice wouldbegreatlyfacilitated ( andexpedited ) withfinancialandtechnicalaidfrom developedcountries.Nevertheless , evenintheabsenceofsuchaid , itisclear thatthe Chinese government should integrate climate change into its developmentpolicy. Againstthebackgroundofenvironmentalcrisisandthepoliticaldilemmas concerningclimatechange , whicharebeingdiscussedandnegotiatedalloverthe world , theCopenhagenAccordwassignedin2009andwillserveasabasisfor China , LatinAmericaandtheEUfortheforeseeablefuture.Thesecountries shouldworktogethertoaddressthedeadlockinCopenhagenandreachconsensus onalowcarboneconomyandthepost2012climatechangeregime.Thiswill requirecoordinationtoensurebalanceddevelopment , preservingtheenvironment whilemaintainingeconomicgrowth. References BBCMonitoringAsiaPacificPolitical ( 2008 ), 犉狌犾犾犜犲狓狋狅犳犆犺犻狀犪狊犘狅犾犻犮犻犲狊 , 犃犮狋犻狅狀狊犳狅狉 ChinasApproachtoEnergyandClimateChange 3 45 犃犱犱狉犲狊狊犻狀犵犆犾犻犿犪狋犲犆犺犪狀犵犲 , 30October. ChinasOfficeofNationalCoordinationCommitteeforClimateChange ( ed. )( 2003 ), 犆犺犻狀犪狊 犌犎犌犈犿犻狊狊犻狅狀狊犻狀狋犺犲 犠狅狉犾犱 , online:http: // www.ccchina.gov.cn ( October15 , 2003 ) . EconomistIntelligenceUnit ( 2007 ), 犆犺犻狀犪 :5 犢犲犪狉犉狅狉犲犮犪狊狋犜犪犫犾犲 , 16April. 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JapanEnvironmentalCouncil , ShunichiTeranishiandTakehisaAwaji ( eds. )( 2000 ), 犜犺犲 犛狋犪狋犲狅犳狋犺犲犈狀狏犻狉狅狀犿犲狀狋犻狀犃狊犻犪1999 / 2000 , Tokyo:SpringerVerlag , 98100. Kennedy , Paul ( 1968 ), 犜犺犲犚犻狊犲犪狀犱犉犪犾犾狅犳狋犺犲犌狉犲犪狋犘狅狑犲狉狊 , VintagePublishingHouse. Kindleberger , Charles ( 1973 ), 犜犺犲犠狅狉犾犱犻狀犇犲狆狉犲狊狊犻狅狀 , 19291939 , London:AllenLane. Modelski , George ( 1987 ), 犔狅狀犵 犆狔犮犾犲狊犻狀 犠狅狉犾犱 犘狅犾犻狋犻犮狊 , Seattle: University of WashingtonPress. M2Presswire ( 2007 ), 犆犗 2 犈犿犻狊狊犻狅狀狊犐狀犮狉犲犪狊犻狀犵犉犪狊狋犲狉狋犺犪狀犈狓狆犲犮狋犲犱 , 22May. OfficeoftheSecretaryofDefense ( 2008 ), 犕犻犾犻狋犪狉狔犘狅狑犲狉狅犳狋犺犲犘犲狅狆犾犲狊犚犲狆狌犫犾犻犮狅犳 3 46 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation 犆犺犻狀犪2008 : 犃狀狀狌犪犾犚犲狆狅狉狋狋狅犆狅狀犵狉犲狊狊 , Washington , D.C.:OfficeoftheSecretaryof Defense. Paul , HarrisandYu Hongyuan ( 2005 ), EnvironmentalChangeandAsiaPacific:China RespondstoGlobalWarming , in: 犌犾狅犫犪犾犆犺犪狀犵犲 , 犘犲犪犮犲 , 犪狀犱犛犲犮狌狉犻狋狔 , 17 , 1 , 4558. Porter , MichaelE. ( 1990 ), 犜犺犲犆狅犿狆犲狋犻狋犻狏犲犃犱狏犪狀狋犪犵犲狅犳 犖犪狋犻狅狀狊 , New York:Free Press. Rosenau , James N.and ErnstOtto Czempiel ( 1992 ), 犌狅狏犲狉狀犪狀犮犲狑犻狋犺狅狌狋犌狅狏犲狉狀犿犲狀狋 : 犗狉犱犲狉犪狀犱犆犺犪狀犵犲犻狀犠狅狉犾犱犘狅犾犻狋犻犮狊 , CambridgeUniversityPress. Smil , Vaclav ( 1993 ), 犆犺犻狀犪狊犈狀狏犻狉狅狀犿犲狀狋犪犾犆狉犻狊犻狊 , Armonk , NewYork:M.E.Sharpe. UNFCCC ( 2003 ), 犌犎犌犈犿犻狊狊犻狅狀狊犪狀犱犚犲犱狌犮狋犻狅狀犜犪狉犵犲狋 , online:http: // unfccc.int / text / resource / country / china.html ( October15 , 2003 ) . WorldBank ( 1997 ), 犜犺犲犠狅狉犾犱犅犪狀犽犪狀犱犆犾犻犿犪狋犲犆犺犪狀犵犲 : 犈犪狊狋犃狊犻犪 , Washington , D.C.: WorldBankGroup. Yergin , Daniel ( 2006 ), EnsuringEnergySecurity , in: 犉狅狉犲犻犵狀犃犳犳犪犻狉狊 , 1March , 6977. XinhuaNewsAgency ( 2007 ), 犆犺犻狀犪犖犪狋犻狅狀犪犾犃犮狋犻狅狀犘犾犪狀狅狀犆犾犻犿犪狋犲犆犺犪狀犵犲 , online: http: // news.xinhuanet.com / politics / 200706 / 04 / content _ 6196300.htm. 3 47 犆犺犪狆狋犲狉10 犗犻犾犆狅狅狆犲狉犪狋犻狅狀犫犲狋狑犲犲狀犆犺犻狀犪犪狀犱犔犪狋犻狀犃犿犲狉犻犮犪 /&,*+,-0+ 1.犐狀狋狉狅犱狌犮狋犻狅狀 Inrecentyears , energycooperationbetweenChinaandLatinAmericahas becomeahotlydebatedtopicinresearchonSinoLatinAmericanrelations.With ChinasentryintoLatin America , thereareconcernsaboutwhetheritwill challengetheexistingenergyorderinthe Westernhemisphere.Thedominant thinkingonthisissuecanbeclassifiedintermsofthreegroups.Thefirst , which isbasedonthelogicofazerosumgame , arguesthatChinawillthreatenUS energysecuritygeopolitically:themoreoilChinaimportsfromLatinAmerica , thelessoiltheUSwillget.ThesecondgroupofscholarsdescribesChinaasa newcolonialisthungeringforoilandotherstrategicnaturalresources.Finally , somescholarsholdthatChinasparticipationinLatinAmericaislimited , whilea numberofcountrieswithabundantenergyresourcesregardChinasentryasa positivedevelopmentwhichwillenablethemtodiversifytheirexternalenergy cooperation. Mostoftheexistingliteraturedoesnotanalysethisissueeitherobjectively orcomprehensivelyinaccordance withthefacts , remainingsatisfied with politicisedexplanationsofChinasinvolvementinthe Westernhemisphere. Somescholarshaveadoptedarealistanalyticalframework , takingonlyUSoil interestsintoconsideration.Infact , ChinacanplayaconstructiveroleinLatin Americaforbothsideswithaviewtoachievingsustainabledevelopmentinthe energysector.Inordertobetterunderstandthis , weshalltrytoanswerthe followingquestions.First , how shouldChinasroleandstrategyin Latin Americanenergy marketsbedescribed ? Second , whatpotentialdothetwo sideshavetodrawontodeepentheircooperation ? Third , whatchallengeswill theyhavetoface ? 3 48 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation 2.犆犺犻狀犪狊犈狀犲狉犵狔犆狅狅狆犲狉犪狋犻狅狀犛狋狉犪狋犲犵狔狋狅狑犪狉犱狊犔犪狋犻狀犃犿犲狉犻犮犪 Inthepastdecade , Chinasoilimportshaveexperiencedstronggrowth.In 1993 , Chinabecameanetoilimportingcountry.Asaresultofitsrapideconomic development , Chinabecamethesecondlargestoilconsumerandimporterin 2004 , behindtheUS.Between2002and2007 , Chinasoilimportsroseto183.51 milliontonnesfrom77.74milliontonnes ( CNPC2008 ) .AccordingtoaChinese NationalPetroleum Corporation ( CNPC ) reportin2008 , Chinasexternaloil dependenceroserapidly , from31.2percentto49.6percent , duringthesame period.Upto2030 , Chinasoilneedswillbeconsiderable , becauseitseconomy islikelyto maintainstronggrowth , withanupgradingofitsconsumption structureandrapidindustrialisationandurbanisation.Inordertosafeguardits oilsupply , China hasimplemented animportdiversification strategy.At present , the MiddleEast , AfricaandformerSoviet UnionstatesareChinas mainoilsuppliers ( BP2008 ) .Undoubtedly , however , itisriskyforChinato concentrateitsoilimportsintheseregions. LatinAmericaisplayinganincreasinglyimportantroleinChinaseffortsto diversifyitsoilimports.In1993 , CNPCwonanoilexplorationtenderinPeru , makingLatin Americathefirstregionin which Chinahasparticipatedin internationalenergycooperation. Duringtheperiod1993to2007 , ChinaandLatinAmericaimplementedover 20cooperation programmesintheenergyfield , covering oilexploration , development , refineries , technicalservicesand pipelineconstruction.These programsarelocated mainlyin Peru , Ecuador , Venezuelaand Colombia.In otherwords , theAndeancountriesareChinasprincipalcooperationpartners. AlthoughChinahassignedvariousoilaccordswithgovernmentsinLatin America , itscrudeoilimportsfromLatinAmericaaccountforonlyabout7per centofChinastotalimports.Therefore , LatinAmericaisnotyetregardedasa majorsupplier.However , itcanbeseenasanalternativeregionenablingChina tosafeguarditsoilsupply.AccordingtoChineseCustomsStatistics , Angola , SaudiArabiaandIranwerethetopthreeoilexporterstoChina , supplying87.58 milliontonnesofcrudeoilin2008. Fortheforeseeablefuture , LatinAmericawillbeanalternativestrategic choiceforChinawithregardtodiversificationofitsoilimports , enablingitto reduceitsexcessivedependenceontheMiddleEastandAfrica.Tosummarise Chinasenergystrategy , itsoilcooperationeffortstowardsLatinAmericashould betargetedonthreeobjectives , includingmarketentry , investmentprotection andoilimports. OilCooperationbetweenChinaandLatinAmerica 3 49 犜犪犫犾犲1 犆犺犻狀犲狊犲犔犪狋犻狀犃犿犲狉犻犮犪狀犈狀犲狉犵狔犆狅狅狆犲狉犪狋犻狅狀犘狉狅犵狉犪犿犿犲狊犫犲狋狑犲犲狀1993犪狀犱2007 Exploration blocks Production equity Service contract Intotal Peru 3 3 6 Venezuela 2 2 5 9 Ecuador 1 6 3 10 Colombia N / A 1 1 2 Brazil N / A N / A 2 2 Mexico N / A N / A 1 1 Source:Authorscalculations , accordingtoinformationonthewebsitesofCNPC , SINOPEC andtheMinistryofCommerceofP.R.China. 犉犻犵狌狉犲1 犆犺犻狀犪狊犈狓狋犲狉狀犪犾犗犻犾犇犲狆犲狀犱犲狀犮犲 , 20022008 Source:CNPCAnnualReport:2008WorldOilandGasIndustry. 犉犻犵狌狉犲2 犆犺犻狀犪狊犗犻犾犐犿狆狅狉狋狊犫狔犆狅狌狀狋狉狔狅犳犗狉犻犵犻狀 , 2007 Source:BP2008. 3 50 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation 犉犻犵狌狉犲3 犆犺犻狀犪狊犗犻犾犐犿狆狅狉狋狊犳狉狅犿犔犪狋犻狀犃犿犲狉犻犮犪 ( 犜犲狀犜犺狅狌狊犪狀犱犜狅狀狊 ) Source:CNPC2008. 3.犘狅狋犲狀狋犻犪犾犆狅狅狆犲狉犪狋犻狅狀犅犲狀犲犳犻狋狊 GivenChinashighenergydemandanditslargeaccumulationofforeign currencyreserves , somegovernmentsinLatinAmericahavemadegreatefforts toattractChineseinvestmentintheoilsector.Particularlyundertheimpactof thefinancialcrisisinthisregion , theyareinurgentneedofforeigncapital , so therearenewcooperationopportunitiesforChinaandLatinAmericaintheoil industry. Ontheonehand , withChinasrobusteconomicgrowth , itsoildemandin themedium tolongterm willcontinueatahighlevel.Accordingtothe InternationalEnergyAgency ( IEA2007 ), Chinawillneedtoimportupto80per centofitscrudeoiland50percentofitsnaturalgasby2030.Atthesametime , Chinasabundantforeign currency reserves have boosted theinvestment capabilitiesofitsnationaloilcompanies ( NOCs ) . Ontheotherhand , keepingtheoilindustryopenisstillthemainstream policyinLatin America.Althoughleftwinggovernmentsstrengthenedtheir controlofoilresourcesandsectoralregulationsintheperiod20052007 , theydid notreallyintendtodriveoutforeignoilcompanies , butrathertoincreasethe governmentsshareinrisingoilprices.ThemostimportantthingforChinais thatleftwingleadersarepoliticallyinclinedtopromoteoilcooperation with Chinabecausetheyconsideroiltobeadiplomatictool.Basedonthefavourable changesinthesituation mentionedabove , thepotentialforoilcooperation betweenChinaandLatinAmericacanbedepictedasfollows. First , Latin AmericaisastrategicalternativesourceenablingChinato diversifyitsoilimports.Inrecentyears , BrazilandVenezuelahavediscovered largenewoilfields.AccordingtoBP WorldEnergyStatistics2008 , provedoil OilCooperationbetweenChinaandLatinAmerica 3 51 reservesinVenezuelaandBrazilamountedto87billionbarrelsand12.6billion barrels , respectively , accountingfor7percentand2percentofglobalproved reserves.InMay2008 , theMinisterforEnergyandPetroleumandPresidentof Petroleosde Venezuela , RafaelRamirez , announcedthathiscountrysoil reserveswerenow130billionbarrels.InNovember2007andApril2008 , Brazil discoveredtwo majoroilfieldscontainingover30billionbarrels , basedon NationalPetroleum Agencyestimates.Therefore , Brazil , Venezuelaandother countriescanbeconsideredpotentialpartnersforChina. Second , Chineseoilcompaniescantakeadvantageofopportunitiestobuild oilindustryrelated regionalinfrastructure.In recent years , insufficient investmentsandslowmodernisationofequipmentandtechnologyhaveledtothe declineofprovenreserves , productionandrefinerycapacityinMexico , Ecuador andPeru.Forexample , onlyinBrazilandColombiadidoilproductionincrease — marginally — in 2007 , while Mexico , Venezuela and Ecuador experienced productionfallsof5.5percent , 7.2percentand4.5percent , respectively , comparedto2006.Inparticular , LatinAmericaneconomicgrowthhasslowed down , sufferingtheadverseeffectsoftheinternationalfinancialcrisissince 2008.These countriestherefore hopeto attractforeigninvestment.As economiesrecoverinthelongterm , thereisnodoubtthatLatinAmericamust urgentlystrengthenoilandgasexploration , developmentandinfrastructure. Atthesametime , inresponsetotheglobalfinancialcrisis , somecountries hopetobeabletoincreasetheiroilexportsatareasonablepricebyincreasingoil production , becausetheirfiscalrevenuesdependstronglyonoilandgasexports. Forinstance , inordertoachievesustainabledevelopment , Brazilimplementedan AccelerationProgrammeforNationalGrowth , aneconomicplaninvolving183 energyprogrammesin2007 , emphasisingoilandgasexploration , aswellas development.Fortheforeseeablefuture , LatinAmericawillcontinuetoabsorb foreigndirectinvestment , improvingoilandgasexploration , productionand refiningcapacities.From Chinasperspective , thereare manycooperation opportunitiesinthesefields. Moreover , Mexico , BrazilandColombiahavedevelopedeconomicstimulus planstopromoterecovery , includinginfrastructureprogrammesinoilandgas. Attheendof2008 , theCalderóngovernmentproposeda USD50billion investmentscheme , includingenergyreform ( Villarreal2010 ) .InJanuary2009 , ColombiaalsolaunchedaneconomicstimuluspackageworthUSD24.5billion , expectinghigherprivateandforeigncapitalparticipationintheenergysector. Meanwhile , BrazilalsoexpandeditsGrowthAccelerationProgramme ( Programa de Acelerao do Crescimento , PAC ) for the improvement of energy 3 52 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation infrastructure. Finally , keepingtheoilsectoropenisstilla mainstream policyin Latin America. This policy orientation should not only eliminate Chinese oil companiesconcernsaboutpolicyuncertainty , butalsoprovideafavourable investmentenvironmentfor Chinese capital.During the period 20052007 , Venezuela , EcuadorandBoliviaadjustedtheiroilandgaspolicies , increasing theirstateownedoilcompaniessharesinjointventures.Infact , thesethree countriesconfinedthemselvestoreasonablemeasurestostrengthencontrolover nationaloilresources.However , insomepartsofthemediaandacademiathese policychangeshavebeen misinterpreted , soundingthealarmthatleftwing governmentshavetakenradicalactiontonationaliseoilandgas.Ifanalysed properly , thesepoliciesmakeitclearthatthesegovernmentshavenotrenounced theiropenpolicyintheenergysector. AsfarasBrazil , Mexico , ColombiaandPeruareconcerned , theyhave maintainedastableenergycooperationpolicy.Attheendofthe1990s , Brazil , MexicoandColombiastartedtoopenuptheirenergysectorsbuttoaverylimited extent , sothatitwasdifficultforprivateorforeignoilcompaniestoentertheir oilindustries.Duringtheperiod19972007 , however , Brazilorganised more thaneightinternationaloilfieldtenders.Onlyafter2004 didforeign oil companieshaveanopportunitytoenterBrazil.Withimprovementsinitssecurity situation , Colombiahasgraduallybecomeanimportantforeigndirectinvestment destination.Forexample , theColombianstateownedcompanysigned15oil cooperationcontractswithothercountriesbetween2006and2008.Although Mexicobegantoallowprivatecapitaltoparticipateinthedownstreamsectorin 1995 , it wasonlyin2003that Mexican Petroleum ( Petróleos Mexicanos , PEMEX ), the Mexicannationaloilcompany , organisedthefirstinternational tender. Duetotheimpactofthefinancialcrisis , somecountriesdependentonoil exportshavesufferedgreatlyfromlowoilprices.Thesecountriescouldreadjust theirenergycooperationpoliciesbyopeninguptheiroilsectorsfurther.For example , Venezuela , becauseofthesharpdeclineinoilprices , hasbeenina tightfiscalpositionsincetheendof2008.In Mexico , theCongresspassedan energyreformpackageproposedbyPresidentCalderóninOctober2008 , which wasstronglyopposedbyoppositionparties.Thereformpackagewillgivemore rightstoPEMEXtocooperatewithforeigncompaniesandwillopenuptheoil sectorfurther , attracting more private and foreign capitaland advanced technology.In December2008 , PEMEXlaunchedapublictenderconcerning explorationprogrammes , thelargestinternationaltenderinitshistory.After OilCooperationbetweenChinaandLatinAmerica 3 53 Brazildiscoveredtwolargeoffshoreoilfields , theLulaadministrationactively negotiatedwithChinatostrengthenexplorationcooperation.InFebruary2009 , ChinaandBrazilsignedaMemorandumofUnderstanding ( MOU ) involvingUSD 10billioninloansforoilimports. 4.犆犺犪犾犾犲狀犵犲狊犳狅狉犉狌狉狋犺犲狉犆狅狅狆犲狉犪狋犻狅狀 Basedontheanalysispresentedabove , oilcooperationbetweenChinaand LatinAmericahasabrightfuture.However , thereareafewpotentialbarriers orchallengesthatshouldnotbeneglectedandwhichmightleadtofrictionin cooperationbetweenthetwosides.Forexample , oilshipmentsandrefiningare headachesforChineseoilcompanies.CrudeoilfromLatinAmericaisheavyand sour , requiringadifferentkindofrefiningtechnologyandequipmenttoprocess. Thefollowingfactorsshouldalsobetakenintoconsideration withaviewto deepeningcooperationbetweenthetworegions. First , politicaluncertaintiescannotbeoverlooked.Intheshortandmedium term , militaryconflictisunlikelyinLatinAmerica.However , someunstable politicalfactorsshouldbenotedwhichmightimpactonChinasoilinvestmentsin theAndeanregion.In March2009 , theColombianarmycrossedtheEcuador borderinpursuitoftheRevolutionaryArmedForcesofColombia , leadingtoa diplomaticcrisisbetween Ecuador , Colombia , Venezuelaand Nicaragua.In short , politicalstabilityshouldbeexaminedcarefullywhenassessingChinese investmentsecurity. Second , policyuncertaintystillexists.Sincethe1990s , energypoliciesin LatinAmericahaveexperiencedtwoperiodsofreadjustment.Inthefirstperiod , duringthemiddleandendofthe1990s , mostLatinAmericancountriesstarted toprivatiseandopenuptheirenergysectors.Thesecondperiodofpolicy adjustmenthappenedbetween2001and2007 , strengtheninggovernmentcontrol overenergyresources.Policyadjustmentscanbedividedintotwogroupsof countries.Thefirstgroupincludes Venezuela , Boliviaand Ecuador , which adoptedradicalpolicies , increasingtheirshareoftheprofitsfromrapidlyrising oilpricesorraisingtheirnationaloilcompaniessharesinjointventures.The othergroupincludesMexico , Brazil , PeruandColombia.Thesefourcountries implemented a policy oflimited openness but also one of considerable consistency.SinceJuly2008 , internationaloilpriceshavefluctuatedstrongly. ThereisnodoubtthatmajorLatinAmericanoilproducingcountriesmaychange theirpoliciesagaintoattractforeigncapital.However , uncertaintiesconcerning policychangesinLatinAmericaremain , representingariskfactorwithregardto futureoilcooperation. 3 54 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation Third , itishardtocontrolsocialrisks.Socialriskshererefertoeventsof thekindthatcaninterruptnormaloilproductionandareoutofcompanies control.Inrecentyears , ChinasoiloperationsinLatinAmericahavesometimes beendisturbedbynativeactivistgroupsseekinghigherwelfarebenefits.InJuly 2007 , ChinasoilprogrammesintheEcuadorianpartoftheAmazonbasinwere partlydestroyedbynativepeople , leadingtoseriouseconomiclosses.Other foreign oilcompanies have had similar experiences.Furthermore , terrorist attacksstillsometimestakeplaceinthisregion. Fourth , environmentalrequirementshaverisenconsiderably.Between1990 and2005 , 20percentoftheforestryinEcuadorwasdestroyedbyoilexploration andproduction ( OPEC2007:48 ) .Inordertoimproveenvironmentalprotection , somegovernmentsrequirethatforeigncompaniesagreetostrictenvironmental protectionclauseswhentheynegotiateoilcontracts.Environmentalprotectionis sometimesalsoforcedbylocalprotestsintheaffectedregions.Forexample , Peruviannativesarmedwithbows , arrowsandriflesblockedoilproductionat ArgentinecrudeproducerPluspetrolwhichwasforcedtoshutdownits50 , 000 barrelsperdayoiloperationinPerusnorthernjungle.Thecompanyfinally promisedtoworkwiththegovernmentandlocalcommunitiestocleanuprivers anddevelopprojectssuchasfishfarms.InSinoLatinAmericanoilcooperation programmes , bothsidesattachgreatimportancetoenvironmentalprotection. Therefore , forChineseoilcompanies , itisevidentthatmorecapitalisneededto meetenvironmentalprotectionrequirements. Fifth , theroleoftheUScannotbeneglected.TheUSexertsadominant influenceinthe Westernhemispherebotheconomicallyandgeopolitically , and LatinAmericadependsheavilyontheUSenergymarketintermsofoilexports. AccordingtoBP WorldEnergyStatistics2008 , theUSimported204million tonnesin2007 , accountingfor74.43percentofLatin Americancrudeoil exports.WiththerapiddevelopmentofSinoLatinAmericanoilcooperation , US scholarsarguethatChinaspenetrationofLatinAmericacouldposeathreatto USenergysecurity.Suchviewsarebasedonazerosumlogic:inotherwords , themoreoilChinaimportsfromLatinAmerica , thelessoilwillbeavailableto theUS. InadditionitmustbetakenintoconsiderationthatEuropeanandUSoil companiesdominatetheLatinAmericanoilmarket.Onlyinrecentyearshave Russia , IndiaandIranenteredtheLatinAmericanoilsector.Chinaisonlyone strategic partner enabling Latin American countries to diversify their cooperation.ChinawillfacefiercecompetitionintheLatinAmericanoilmarket. OilCooperationbetweenChinaandLatinAmerica 3 55 5.犆狅狀犮犾狌狊犻狅狀 Todate , Latin Americahasnotbeena majoroilsupplierforChina. However , Latin AmericacouldbeastrategicalternativeenablingChinato diversifyitsoilsupplyinthelongterm.Infact , Chinasentryinto Latin Americacan partly beexplained by nationaloilcompaniesown business developmentstrategiesintheageofglobalisation.MajorLatin Americanoil producingcountries mayadjusttheirpoliciestoattractforeigninvestment becauseofthefinancialcrisisandslowriseininternationaloilprices.Mexico , Brazil , ColombiaandotherLatin Americancountrieswanttoincreasetheir investmentsin exploration , production , refining and transportation , which provides China with new opportunitiesto expand cooperation. However , politicaluncertaintyandsocialriskscannotbeoverlooked.Otherissues , suchas environmentalprotectionandlabourrights , willrequireadditionalinvestment. Increasinglyintensecompetitionisalsoanunavoidablereality.Inthefaceof suchchallenges , Chinasoilcompaniesmustcontinuetodeepencooperationwith stateownedoilenterprisesinthehostcountries , explorenew cooperation models , increaselocalemploymentandcontributemoretolocalcommunities. Reference Arriagada , Genaro ( 2006 ), 犘犲狋狉狅狆狅犾犻狋犻犮狊犻狀犔犪狋犻狀 犃犿犲狉犻犮犪 , WashingtonD.C.:Inter AmericaDialogueWorkingPaper , December. BritishPetroleum ( BP )( 2008 ), 犛狋犪狋犻狊狋犻犮犪犾犚犲狏犻犲狑狅犳 犠狅狉犾犱犈狀犲狉犵狔 , June. CNPC ( 2008 ), 犃狀狀狌犪犾犚犲狆狅狉狋 : 2008犠狅狉犾犱犗犻犾犪狀犱犌犪狊犐狀犱狌狊狋狉狔 , Beijing , CNPCResearch InstituteofEconomicsandTechnology. Farnsworth , Eric ( 2008 ), 犖犪狋犻狅狀犪犾 犛犲犮狌狉犻狋狔 犻狀 犔犪狋犻狀 犃犿犲狉犻犮犪 : 犆犺犪犾犾犲狀犵犲狊 犪狀犱 犗狆狆狅狉狋狌狀犻狋犻犲狊狅狀犈狀犲狉犵狔犆狅狅狆犲狉犪狋犻狅狀 , NewYork:CounciloftheAmericas , 11March. Freeman , Duncan , RhysJenkinsandJonathan Holslag ( 2007 ), 犆犺犻狀犪狊犚犲狊狅狌狉犮犲狊犪狀犱 犈狀犲狉犵狔犘狅犾犻犮狔犻狀犔犪狋犻狀 犃犿犲狉犻犮犪 . 犚犲狆狅狉狋犳狅狉狋犺犲 犇犲狏犲犾狅狆犿犲狀狋犆狅犿犿犻狋狋犲犲狅犳狋犺犲 犈狌狉狅狆犲犪狀犘犪狉犾犻犪犿犲狀狋 , Brussels:VrijeUniversity. IEA ( 2007 ), 犐犈犃 犠狅狉犾犱犈狀犲狉犵狔犗狌狋犾狅狅犽2007 : 犆犺犻狀犪犪狀犱犐狀犱犻犪犐狀狊犻犵犺狋 . Jiang , Wenran ( 2006 ), ChinasEnergyEngagementwithLatinAmerica , in: 犆犺犻狀犪犅狉犻犲犳 , VI , 16 , 2August. OPECBulletin ( 2007 ), 犕犲犿犫犲狉犆狅狌狀狋狉狔 犘狉狅犳犻犾犲 : 犈犮狌犪犱狅狉狉犲犼狅犻狀狊犗犘犈犆 , December , Vienna. Valera , JoseL. ( 2007 ), Changing Oiland GasFiscaland Regulatory Regimesin Latin America , in: 犗犻犾犪狀犱犌犪狊 , December. Villarreal , M.Angeles ( 2010 ), 犜犺犲犕犲狓犻犮犪狀犈犮狅狀狅犿狔犪犳狋犲狉狋犺犲犌犾狅犫犪犾犉犻狀犪狀犮犻犪犾犆狉犻狊犻狊 , TheUSCongressionalResearchService , 9September. 3 56 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation 犆犺犪狆狋犲狉11 犜犺犲犚犲犾犪狋犻狅狀狊犺犻狆犫犲狋狑犲犲狀犆犾犻犿犪狋犲犆犺犪狀犵犲犘狅犾犻犮犻犲狊 犪狀犱犈狀犲狉犵狔犛犲犮狌狉犻狋狔 — 犈狌狉狅狆犲犪狀犱犅犲狔狅狀犱 1.犐狀狋狉狅犱狌犮狋犻狅狀 ClimatechangeandenergysecurityarecentraltoenergypoliciesinEurope andabroad.Roughly60percentofglobalgreenhousegasemissionscomefrom theuseoffossilfuels.IntheEU , energyrelatedemissionsaccountforabout80 percentofallgreenhousegasemissions.Climatechangepoliciesbasedon ambitiousemissionsreductiontargetswillrequireprofoundchangesinglobal energysystems.Climatechangeisthusplayinganeverincreasingroleinenergy policymakingandthevalueofconsideringinteractionsbetweenglobalwarming andenergysecurityisincreasinglybeingrecognised.Europeanandinternational policymakersarenowundermountingpressuretoaddressthischallengeandto buildupcosteffectivepoliciesthatwillreducegreenhousegasemissions , while ensuringadequate , reliableandaffordableenergysupplies. Intermsofclimatechange , theEUiscommittedtolimitingglobalwarming to2℃abovepreindustriallevels.Thiswillrequirecutsinglobalemissionsofat least50percentby2050relativeto1990levels , andreductionsforindustrialised countriesinthemagnitudeof8095percentbythesameyear.TheEUandother industrialisedcountries willneed to takethelead dueto their historic responsibilityofhavingemitted mostofthecurrentgreenhousegas ( GHG ) emissionsstockintheatmospherethatisresponsibleforclimatechange.While theEUhasstartedtoaddresstheclimatechangechallengewithitsenergyand climatechangepackage , adoptedinlate2008 , whichaimstounilaterallydecrease GHGemissionsto20percentbelow1990levelsby2020 , itwillrequireaglobal alliancetoavoiddangerousclimatechange.KeepinginmindthattheEU was responsibleforonlyaround11percentofglobalGHGemissionsin2004and TheRelationshipbetweenClimateChangePoliciesandEnergySecurity EuropeandBeyond 3 57 giventhatthissharecontinuestodecrease , theEUsabilitytohaveadirect effectonglobalGHGemissionsislimited.Thisiswellillustratedbythefact thatEUcumulativeCO 2 savingsbetween2008and2020 ( witha20percentCO 2 emissionsreductiontarget ) wouldrepresentonly40percentofChinasannual CO 2 emissionsin2020.Butevenifallofthe OrganisationforEconomic CooperationandDevelopment ( OECD ) countriesweretoreducetheirGHG emissionstozeroby2030 ( whichishighlyunrealistic ), nonOECDcountries alonewouldexceedglobalemissionslevelsinlinewiththe2℃threshold ( IEA 2009 ) .Effectiveinternationalclimate change cooperation thus needsthe involvementofdevelopingcountries , andespeciallyoffastgrowingemerging economies. Inaddition , decarbonisationofglobalenergysystemsneedstobeachieved withoutcompromisingthesecurityofenergysupplies.IntheEuropeancontext , thesupplyofelectricity , heatandmobilityisconsideredsecureifithappenson anadequate , reliableandaffordablebasis.Inaddition , environmentalconcerns maybetakenintoaccountwhenevaluatingthesecurityofEuropeanenergy supplies.However , therearedifferentpointsofview abouthow adequacy , reliabilityandaffordabilityofenergysuppliescanbeachieved.Thosestressing theeconomicperspectivefocusonmarketrulesandtheirabilitytoequatesupply anddemand , renderingtheconceptofenergysecuritymeaningless.Inlinewith thisview , neitherthe worldnorthe EU arecurrentlyfacingsevereenergy securitychallengestobedealtwithwithinareinforcedinternationalframework , byheavygovernmentinterventionorevenbymilitarymeans.Acontraryviewis held by foreign policy analysts who are convinced that the increasing nationalisationofenergyresourcesandthepoliticisationofenergymanagement byresourcerichcountrieshave madeenergysecuritya matterofnational security.Accordingtothem , themarketaloneisnotabletodealwiththemounting andmultifacetedchallengesthatenergyconsumingcountriesmustfaceinaglobalised world.Energy security therefore requiresinternationalcooperation , government interventionandmilitarycontrol.Neitherofthesetwointerpretationscanbedismissed nordotheycapturethewholepictureofsecurityofsupply.Infact , theeconomicand thesocalledpoliticalinterpretationaretwosidesofthesamecoin:theycomplement eachotherandbotharenecessarytoexplainthechallenges , aswellasthesolutionsto thesecurityofenergysupplyinEurope. Itiswidelyassumedthatclimatechangepolicyinthecontextofambitious greenhousegasreductiontargetscan bebeneficialtosecurity ofsupply. However , thereisageneralmisconceptionthatenergysecurityrisksarelargely relatedtoimportdependence.WhileitistruethattheEUisfaced with 3 58 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation increasingimportdependency , whichmightreach70percentin2030 , thereare manyothersupplyrisksthatneedtobetakenintoaccountwhendesigningfuture energysystems.Notalloftheserisksareexternal.Infact , mostoftherecent supplydisruptioninEuropehaddomesticcausesconnectedtostrikes , weather relatedsystemsfailures , lack ofcapitalinvestmentorgenerallythepoor conditionoftheenergysystem.Itisthusimportanttoassesslowcarbonenergy sourcesinlightofthecomplexityofsupplyrisks. 2.犚犲狀犲狑犪犫犾犲犈狀犲狉犵狔犛狅狌狉犮犲狊 In2005 , renewablesaccountedfor8.5percentoffinalenergyconsumption intheEU ( EuropeanCommission2008 ) .Withtheagreementon17December 2008ontheEUenergyandclimatepackage , thenewRenewablesDirectivewas sealed , whichsetstheframeworkforincreasingtheoverallshareofrenewables inEUenergyconsumptionto20percentby2020.TheEUadoptedthisbinding renewablestargetintheconvictionthatrenewableenergiesreduceairpollution andgreenhousegasemissionsandthatthey “ promisestrategicimprovementsin thesecurityofsupply , reducethelongterm pricevolatilityto whichtheEUis subjectedasapricetakerforfossilfuelsandcouldofferanenhancedcompetitiveedge fortheEUenergytechnologyindustry ”( EuropeanCommission2007 ) .Furthermore , renewableenergysources “ facilitateimprovementintheeconomicandsocialprospects ofruralandisolatedregionsinindustrialisedcountriesandhelpmeetbasicenergyneeds indevelopingcountries ”( EuropeanCommission2007 ) . Renewablescanalsoplayapivotalroleinsecuringenergy , protectingthe environment ( bothintermsofreducingGHGemissionsandairpollution ) and stabilisingeconomiesindevelopingcountries.Developingcountriesnotonlyhave largepotentialforexpandingtheuseofrenewables , butin2006theyalreadyhad ashareof43percentofglobalrenewableelectricitycapacity ( REN212008 ), mainlyintheformofbiomassandsmallhydropower.China , forexample , has theworldslargestinstalledcapacity , totallingaround52GW , accountingfor25per centofglobalcapacity.ThisisalmosttwicethesizeofcapacitiesinGermanyor theUSA.Similarly , Chinawasleadinginnewcapacityinvestmentsin2006 , secondonlytoGermany. Substituting renewables for conventional fossil energy sources can contributesignificantlytodomesticGHG emissionsreductionsinelectricity production , heatingandcooling , as wellasinthetransportsector.Solar photovoltaic , hydroelectric , biomassandwindhavenodirectemissionsandtheir indirectlifecycleemissionsareonlyafractionoftotalemissionsofcoalandgas. Togetherwithotherrenewables , suchasgeothermalandtidalpower , thereisa TheRelationshipbetweenClimateChangePoliciesandEnergySecurity EuropeandBeyond 3 59 broadportfolioofrenewablesthatcanbeusedtoachieveGHGreductiontargets withadiversifiedfuelmix.InthecaseoftheEU , mostoftheseresourcesare domesticallyavailable ( biomassand concentrating solarpowercan bean exception ) .Aswitchtorenewablesthusgenerallyreducesimportdependency. However , whetherthisisasecurityofsupplybenefitdependsonwhetherimport dependenceisregardedasarisktoadequate , reliableandaffordableelectricity. Globaloilandcoalmarketsarerelativelyopenandwellfunctioning , andprices — aswellastheirvolatility — aremuchmoreofasecurityofsupplyconcernthan importdependencyperse.Intermsofgas , however , pricesarelargelyregulated orlinkedtooilprices , andarethus muchlessableto balancesupplyand demand.Inaddition , theEUisregionallylinkedtoonlyafewsuppliersviafixed infrastructure , whichmakesphysicalunavailabilityofgasmoreofaconcern.If renewablescanincreasetheirshareattheexpenseofgasimports , itcouldthus bearguedthattherearesomesecurityofsupplygains.However , intermsof GHGemissionsreductions , anincreaseofrenewablessubstitutingforelectricity productionfromcoalwouldbepreferable.Duetotheintermittenceofmany renewableenergytechnologies ( seebelow ), theyarenotwellsuitedtoserve peakdemand , butinsteadlikelytodisplacetypicalbaseloadgenerationplants. TheIEA ( 2007 ) thusassumesthat “ coal , gasand — inthecaseofarenewable energypolicy , nuclear — aredisplacedproportionallytotheirroleinthefuel mix ” . Moreimportantintermsofenergysecurityistheriskofintermittencefroman increasingshareofrenewablesintheenergy mix.Intermittenceinthecaseof renewablesreferstoundesiredoruncontrolledvariabilityofoutput ( Sinden2005 ) .At thesametime , renewablesarecharacterised byreduceddispatchabilityor manoeuvrability , whichreferstotheirabilitytoincreaseordecreaseoutput quicklyondemand ( KuntzandDawe2005 ) .Notallrenewablesareequally “ unreliable ” : Large hydro , bioenergy and geothermal resources and concentratingsolarpower ( CSP )“ offercomparablelevelsoffirmcapacitiesto conventionalfossilfuelbasedplants ”( IEA2007 ) .Biomass , ontheonehand , canbestoredandusedwhenrequiredandthusprovidesamoreorlessconstant electricitysupply.Solarphotovoltaicapplications , wind , smallhydropower plantsandfuture waveenergyresources , onthe other hand , are more intermittentandvariableinsupplyingelectricity ( IEA2007 ) .IncurrentEU electricitysystems , intermittencyis notgenerally a problem becausethe penetrationofintermittentrenewablesisstilllow ( although with strong variationsamongmemberstates ) .However , theelectricitygridwilleventually needtoadapttohighersharesofintermittentelectricity , althoughthereisno 3 60 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation consensusonhow muchintermittentelectricitycanbesustainedbythegrid. Maximumpenetrationofintermittentrenewableenergytechnologywillprobably bedeterminedbyeconomicefficiencyandcostconsiderationsratherthanby technicalfeasibility. Thereareseveraloptionswithregardtodealing withintermittencein electricitysystems , whichincludeinvestmentinmorereliableinfrastructureand better grid interconnection , and balancing a mix of renewable energy technologieswithdifferentnaturalcycles.Ingeneral , itcanbearguedthat renewableswithhighershorttermvariabilityaremoreriskyforsupplysecurity , unlesscombined withrenewables withdifferentnaturalcyclesorappropriate backupcapacity.Theneedforbackupcapacityforintermittentrenewablescan bereducediftheyareusedincombinationwithamixofotherrenewableenergy technologiesthatarelessintermittent.Forexample , wind powercan be complementedbylargehydroinstallations , orpossiblyeven withhydrogen powered plants. However , largescaleintegration ofrenewablesinto the electricitygridwillalsorequireinvestmentinbackupcapacitiesandelectricity storagetocompensatetheremaininguncertaintiesofthegrid. Similarly , appropriatedemandside managementstrategies willhelpto regulatedemand , forexample , bysettingpriceincentivesandincreasingprice transparencytoreducetheuseofelectricityduringpeakhours. Inanefforttoovercomesomeoftherisksassociatedwithrenewableenergy sourcesandtoimproveinternationalcooperationtofacilitatethetransition towardsthe widespreaduseofrenewablesinthe world , theInternational RenewableEnergyAgency ( IRENA ) wasestablishedon26January2009.While itistooearlytoassesstheeffectivenessoftheorganisation , itseemsthatit couldpotentiallymakeasubstantialcontributiontodecarbonisetheglobalenergy sectorbyimprovingtheknowledgebase , providingpolicyadvice , promoting technologytransferandstimulatingresearch.IncontrasttotheIEA , IRENA Signatory Statesinclude bothindustrialised and developing economiesfrom Africa , Asia , EuropeandLatin America.However , thetwolargestglobal greenhousegasemitters — ChinaandtheUSA — havenot ( yet ) joinedIRENA. Tohaveatrulyglobalreach , theAgencywillneedtheseandothercountriesto participate ( forexample , Australia , Brazil , Mexico , Russia , SouthAfricaand theUnitedKingdom , aswellassomeofthemainoilproducingcountries ) .Only withbroad membership willIRENA beabletopursueaglobalstrategy , providingafocalpointforallglobalrenewableenergyissues.Ontheotherhand , someindustrialisedcountries may benefitfrom increased globalefforts with regardtorenewables , hopingto “ reapcommercialgainsfromtheirtechnological TheRelationshipbetweenClimateChangePoliciesandEnergySecurity EuropeandBeyond 3 61 leadershipinareassuchasadvanced windturbinedesignand manufacturing ” ( Sioshansi2009 ) .Butsomeemergingeconomies — andespeciallyChina — willbe abletobenefitfrom anexpandingglobalrenewablessectoras well , being producersofcleanenergytechnologiesthemselves.China , forexample , isthe worldslargestproducerofphotovoltaiccells ( ofwhich98percentarefor export ) andBrazilistheworldssecondlargestproducerofethanolandthe worldslargestexporter.Itisthusamisconceptiontoconsidercleantechnology transfermerelyasa “ NorthSouth ” traderelationship.Withproductionoflow carbontechnologiesmaturinginemergingeconomies , therewillincreasinglybe tradeflowsintoindustrialisedcountries , assumingthat marketforcesare allowedtofunctionfreely. Finally , broadeningthemandateofIRENAshouldbeconsideredtoextend itintoaglobalplatformforalllowcarbontechnologies ( exceptnuclear , which hasitsownagencyintheformoftheIAEA ) .IfIRENAfocussedalsoonenergy efficiencyandonothercleanenergytypes ( forexample , cleancoal ) itmight makeabettercontributiontodecarbonisingglobalenergysystems. 3.犖犪狋狌狉犪犾犌犪狊 Naturalgasmaybeanimportantintermediatesolutiontoclimatechangeas itproduceslessCO 2 perunitofenergythancoaloroil.Itmaythusbeadvisable totemporarilyincreasetheshareofnaturalgas — asasubstituteforcoaloroil — untilrenewabletechnologiesaremarketreadyonalargescale , althoughthis wouldbeatthecostofincreasingimportdependencefurther.Atthesame time , effortstoincreasesecurityofenergysupply mayleadto measures substitutinggaswithcoaloroil , thusincreasinggreenhousegasemissions , at leastintheshortterm.Thishasbeenthecaseinnationalresponsestothe RussiaUkrainetransitdisputeundrelateddecreasesinRussiangasdeliveriesin January2009. Withashareofalmost25percentofgrossinlandenergyconsumption , naturalgasisthesecondmostimportantenergycarrierintheEU.Atthesame time , about60percentofthegasconsumedintheEUneedstobeimportedfrom abroadandtheEuropeanCommissionestimatesthatthissharewillincreaseto over80percentby2030.Europeangasimportsarehighlyconcentrated , with almost90percentoriginatinginonlythreecountries ( European Commission 2008 ), wherethegas marketistightlycontrolled bygovernments.Inthis respect , fearsof “ gascartels ” orofenergybeingusedasapoliticaloreconomic weapondonotseemcompletelyunfounded ( forexample , inthecontextof recurring RussiaUkrainegasdisputes whichrepeatedly affectseveral EU 3 62 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation memberstatesgassupply ) .Similarly , thereisariskofalackofinvestmentin exploration , productionandtransportation , despitereservesbeingabundantly availableinareassurroundingEurope ( forexample , Mueller2007 ) . Currentenergy scenariosshow thatareduction ofdependency on gas throughanincreaseindomesticproductionorthroughenergysavingsisnot credible.Thesituationisdifferentwithregardtothediversificationofexporting countries.Europespositionintheworldmarketcouldbemorefavourabledepending onwhether Africanand MiddleEasternexportsgrow substantially , backedby significantvolumesofLiquefiedNaturalGas ( LNG ) .ThedevelopmentofLNGspot marketsisexpectedtoeasesomeconcernsaboutsecurityofsupply , especiallyin terms of pipeline diplomacy , due to its advantages of flexibility and diversification.Currently , about10percentofEuropesgasimportsareinthe form of LNG.Thissharecould roughly double by 2020. However , some drawbacksremain.BesidethefactthatLNGtechnologyissensitivetophysical threats , exportershavenotkeptup withincreasingfacilitiesinimporting countries , leadingtosomeregasificationterminalsstandingidle.Inaddition , the EUisexpectedtofacefiercecompetitionfromotherimportingcountries , suchas theUS ( Larsson2007 ) . AnothercriticalfactoristransportcapacitytowardsEurope , asitseems verylikelythatprojectedinfrastructure willnotbeableto meetexpected demand.Thisimpliestheneedtogainaccesstogasreserves , toopenup producing areastointernationalinvestmentand to devote attention to the stabilityof “ transitcountries ” .Severalinfrastructureprojectsarecurrently beingplannedintheEU , twoofwhichwillincreasethedependenceonRussian gasimports ( albeitreducingthetransitrisk ) andoneofwhich willdiversify importstowardstheCaspianregionandtheMiddleEast ( thatis , theNabucco pipelineproject ) .Itshouldbenotedthatcurrentgasinfrastructureprojects ( bothpipelinesand LNG ) willdeterminefuturegreenhousegasemissions becausetheylockEuropeintoacarbonintensiveenergypatternwhichisnotin linewiththetargetedgreenhousegasemissionstoavoiddangerousclimate change.Withalifetimeof2050years ( andbeyond ) newlybuiltgaspipelines willincrease Europesdependenceon gasfurther , rendering carbon neutral energysystemsby2050lesslikely. Inaddition , thefuturecarbonpricewillhaveanimpactonthefutureofthe gasmarkets.Mostgascompanieshaveadjustedtheirgas marketgrowth expectationsdownwardsafterthefirstcarbon marketexperience , duetothe competitionofgaswithcoalandnuclearforpowergeneration.However , if naturalgasisunabletotakealargershareinpowergeneration , itwillnotbe TheRelationshipbetweenClimateChangePoliciesandEnergySecurity EuropeandBeyond 3 63 abletoliveuptoitsexpectationstobea “ bridge ” toalowcarboneconomyand mayevenbecomeasunsetindustry. 4.犆狅犪犾犪狀犱狋犺犲犚狅犾犲狅犳犆犪狉犫狅狀犆犪狆狋狌狉犲犪狀犱犛狋狅狉犪犵犲 ( 犆犆犛 ) Ontheglobalscale , coaliscurrentlythefastestgrowingfossilenergy carrierandcontinuestobethesecondmostimportantfossilfuel , slowlyclosing thegapwithoil.InthereferencescenarioofitsWorldEnergyOutlook , theIEA ( 2008 ) predictsa61percentincreaseinglobalconsumptionofcoalbetween2006 and2030.Overthenext10years , Chinaalonewillinstallmorepowergeneration capacitybasedoncoalthanEuropesentirecurrentstock. IntheEU , however , primarycoaldemandhasdecreasedconsiderablysince the1980s , largelyduetotheswitchfromcoaltogasfiredpowerproductionin WesternEuropeandeconomictransitionintheEast.Thistrendisexpectedto continue , withdemanddecreasingbyalmost20percentbetween2006and2030. Similarly , thevolumeofcoalproduceddomestically withinthe EU27 will continuetodecrease.Asaresult , theEU willbecomemoredependenton importsdespiteowningconsiderabledomesticreserves ( 3.5percentofglobal reserves ) .Domesticcoalproductionisforecasttofallto48 percentof consumptionby2030 , downfrom59percentin2006. Coalimportsarefarmoreregionallydiversifiedthannaturalgasimports , for example , and mostexportingcountriesqualifyasstabledemocracies , which largelyrespectthesamemarketandpoliticalrulesastheEU.Inaddition , the coalmarketisatrulyglobal , openandwellfunctioningone , notdominatedbya singlesupplier , suchasOPEC.Atthesametime , therearestillconsiderable globalprovencoalreserves , which — atthecurrentglobalrateofproduction — maybesufficientforanother133years ( BP2008 ) .Finally , coalisrelativelysafe totransportandstore.Itcanbetransportedquicklybyshipandrail , without theneedforexpensivelongruninfrastructureandrelatedtransportandtransit securityissues.AllthesefactorscontributetotheassessmentthatEuropean importdependencydoesnotposeanelevatedrisktoitsuninterruptedsupplyof coalinthelongrun ( althoughtherearesomerisksintheshortrunstemming fromweatherandotherunforeseeablefactorsinproducercountries , aswellas increasingdemandinsomeemergingeconomies ) . Giventhatimportdependenceisnotamajorlongtermsecurityissueinthe caseofcoal , thereareotherrisksthatneedtobedealtwith.Ontheglobalscale , thegreatestenvironmentalthreatinthelongtermisclimatechange.Theuseof coalinelectricityproductioncausesfarmoregreenhousegasemissionsthanthe useofanyotherenergycarrier.Toputthisintoperspective , at28percent , coal 3 64 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation isthesecondlargestsourceofelectricitygenerationintheEU27 , justbehind nuclear ( 30percent ) .Insomecountries , thisshareisconsiderablyhigher , such asinPoland ( 91percent ), Estonia ( 91percent ), theCzechRepublic ( 59per cent ) and Greece ( 59percent )( European Commission2008 ) .Inview of Europesambitiousenergyandclimatechangetargets , cleancoaltechnologies mustbedevelopedquickly , otherwisecoalcannotcontinuetoplayamajorrolein Europesenergymix.ThesameappliestoChina , whichderivesaround70per centofitsenergymixfromcoal. Asindicatedintheintroduction , industrialisedcountriesareexpectedtocut greenhousegasemissionsby8095percentinordertoallowglobalemissionsto dropto50percentof1990levelsby2050.ThecurrentenergymixofEU27is largelycharacterisedbycarbonintensivefossilfuelswhichmadeup79percent ofGrossInlandConsumptionin2005 ( EuropeanCommission2008 ) .Giventhe carbonintensity ofthe European energy mix and the possibility of a “ renaissance ” ofcoalonsecurityofsupplygrounds , Europecanonlyachieve suchambitiousgreenhousegasreductiontargetsifitdevelopscarboncaptureand storage ( CCS ) focusedoncoalfiredpowerproduction , butalsoonemissions fromotherfossilbasedformsofpowerproductionandemissionsfromindustry. Undercurrenttechnologicalconditions , CCSprocessescancapturearound85per centoftheCO 2 emittedatsource.However , theseprocessesreducethethermal efficiencyofplantsby812percent ( IEA2008 ) andthusincreasetheneedfor coalinputs. ThesuccessoftheCCStechnologywilllargelydependonthesuccessofthe demonstrationphase , publicacceptance , thespeedofadoptingEUlegislation andtheprovisionofasecurelegalframework , aswellasonthesuccessofthe EUETSandthepriceofCO 2 .ToimproveliabilityandreducethecostsofCCS technologies , itisimportantintheshorttomediumtermtodevelopappropriate demonstrationprojects , inwhichcurrentlyusedCCStechnologiesareadapted forusein largescale power plants andimproved through research and development.TheEU decidedinDecember2008toraisefundingforthese commercialdemonstrationprojectsbysettingaside300millioncarbonallowances intheEU EmissionsTradingScheme ( ETS ) startingin2013 , equivalentto aboutEUR9billionatapriceofEUR30pertonneofCO 2 .TheEU willalso needtoacceleratedomesticresearchandwillneedtoincreaseinvolvementin internationalresearchcooperation , forexamplewithChina.Afterall , CCSis notjustanopportunityfortheEUtocontinuebenefitingfromtheadvantagesof coalbutalsoforcleaningChinaspowersectorandrelatedtechnologyexport opportunities. TheRelationshipbetweenClimateChangePoliciesandEnergySecurity EuropeandBeyond 3 65 5.犖狌犮犾犲犪狉犈狀犲狉犵狔 Nuclearenergyiscurrentlythelargestsinglesourceoflowcarbonelectricity intheEU.In2007 , itaccountedfor14percentoftheEUtotalenergysupply andprovided31percentoftheelectricitygenerated.Overall , thereare145 nuclearpowerplantsinoperationacross15EU memberstates ( mostofwhich werebuiltbetweenthe1970sand1980s )( EuropeanNuclearSociety2009 ), with anotherfournuclearpowerplantscurrentlyunderconstruction.EU member statescontinuetobedividedaboutnuclearenergy.Eventhoughsomemember statesrecentlycameforward with plansfornew plants , it would bean exaggerationtospeakofa ‘ nuclearrenaissance ’ .Evenifallcurrentlyplanned nuclearpowerplantswerebuiltinEurope , theywouldhardlybeabletoreplace theageingnuclearinfrastructure , letaloneaddtoexistingcapacity , should Germanyphaseoutits17nuclearpowerplantscurrentlyinoperation. Thoseinfavourarguethatnuclearenergycouldcontributetoincrease Europessecurityofenergysupplyandcontributesignificantlytoreachingthe EUsclimate objectives.First , this support comes from theincreasing competitivenessofelectricitygenerationfromnuclear.Thisisduetodeclining fuel ( includingenrichment ), operatingandmaintenancecosts , whiletheplant concernedhasbeenpaidfor ( World Nuclear Association2008 ) .However , it shouldbenotedthatlargecapitalcostsforconstructionofnewplantsremain problematic , especiallywithcapitalinshortsupplyduetothecurrentfinancial crisis.Inaddition , decliningoilpriceshave made manynuclearprojectsless competitive ( atleastintheshortterm ) .Second , theindigenousnatureof nuclearpowerproductionreassuresmemberstatesagainstrisksrelatedtoimport dependency.ItisnotsurprisingthatcentralandeasternEuropeancountries — withthehighestdependencyonRussiangasimports — aremostsupportiveof nuclearpower.Whilealmost100percentofEU uraniumrequirementsare importedfromabroad , itsavailabilityinreliablecountriessuchasCanadaand Australia — accountingfor45percentofEUuraniumrequirements — usuallydoes notraiseimportdependencyconcerns.Thethirdreasonfornuclearsupportis relatedtothefactthat , togetherwithrenewableenergysources , nuclearenergy isoneoftheleastcarbonintensivesourcesofenergy.Thisargumentisoften usedbyproponentsofnuclearenergyinrelationtoachievingclimatechange objectivesatcurrentlevelsofenergyconsumption. Despitetherecentdeclarationsofintentby many Europeancountriesto undertakenewnuclearprojects , somescepticismexistsonarealboosttonuclear powergenerationin Europe.Without massiveinvestmentstoreplaceageing 3 66 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation facilitiesandtobuildnewplants , Europesnucleargeneratingcapacityisinfact expectedtoshrinkratherthantogrow.Accordingly , theIEAforecaststhat electricitygenerationfromnuclearwilldecreasefrom31percentto21percent by2020 ( IEA2008 ) .Themainreasonsforthepossiblestagnationanddeclineof nuclearpowergenerationarecostssuchasstartupcosts , decommissioningand waste management.Moreover , safety ( thelackofacommonapproachto European safety standards ), public opinion and perception , waste and proliferation ( MIT2003 ) arealsoimportantreasons.Inaddition , thenuclear powersectorsuffersfromanageingworkforceandageneralshortageofqualified labour , aswellasfromashortageofkeycomponentsofthesupplychain. 6.犈狀犲狉犵狔犈犳犳犻犮犻犲狀犮狔 EnergyefficiencyhasbecomeacornerstoneoftheEuropeanCommissions energypolicy.TheEUhassetitselfanonbindingtargetofsaving20percentof energyconsumptionby2020throughenergyefficiency , whichmaysaveupto EUR100billionandanestimated800milliontonnesofCO 2 peryear ( European Commission2008 ) .Accordingtothe Commission Action Plan on Energy Efficiency ( European Commission 2006 ), thelargestcosteffectivesavings potentialsareinthehouseholdandtertiarysectors , at27percentand30per cent , respectively.Formanufacturingindustry , theoverallpotentialisestimated tobearound25percent , whilefortransportthefigureis26percent. Onaglobalscale , improvingenergyefficiencywillalsoallowdeveloping countriestoreducethegrowthofenergydemandandgreenhousegasemissions , aswellastosavecostsofenergyproduction.Arecentstudyby McKinsey ( 2009 ) showedthatsome65percentofglobalpositivereturnenergyefficiency opportunitiesareindevelopingcountries.Chinahasthelargestpotential ( 22per centofglobalopportunities ), followedbythe MiddleEast ( 10percent ), EasternEurope ( 10percent ), LatinAmerica ( 8percent ) andIndia ( 7per cent ) .TheworldspoorestcountriesinSoutheastAsiaand Africaareless attractivefromanenergyefficiencyperspective , offeringonly5percentand4 percentofglobalopportunities , respectively. Energyefficiencyachievedbyreducingdemandincreasestheflexibilityof thewholeenergychainandtherebyprovidesanadditionalmarginforsecurity. Putanother way , iftheflexibility neededtocope withsupplyfailureisa proportionofoverallenergydemand , thenthecostofprovidingaconstantlevel ofsecurity ofsupply decreasesifthe overallenergy demandisreduced ( EgenhoferandLegge2001 ) . However , therearesomedoubtsaboutthecorrelationbetweenincreasing TheRelationshipbetweenClimateChangePoliciesandEnergySecurity EuropeandBeyond 3 67 energyefficiencyandreducingimportdependency , atleastinEurope.TheIEA ( 2008 ) reportsthatEuropesenergyefficiencyhasconsistentlyimprovedover time:from1 , 200MillionTonnesofOilEquivalent ( Mtoe ) ofNegajoules ( that is , avoidedenergyconsumptionthroughenergysavings ) in1970 , to2 , 000Mtoe in1990and2 , 800Mtoein2005.However , thisimprovementhasnottranslated intoa paralleldownwardtrendfor Europestotalprimary energyimports: Europesimportdependencegrewfrom42percentin1990to52percentin2005 ( IEA2008 ) .Accordingly , evenassumingthefullapplicationoftheexistingEU directivesonenergyefficiency , importdependencyisprojectedtoincreasefrom 47.2percentin2000to65.5percentin2030.Withenergydemanddecreasing fasterthanEUdomesticenergyproduction , importdependencein2010and2020 willbeslightlylowerthanin2000.Inthelongterm ( thatis , until2030 ), the reductionindemandforelectricityproducedfromnuclearandindigenoussolid fuelswillleadtolowerexploitationofEuropeanenergysources , which more thancounterbalancesthedeclineinprimaryenergyconsumption.Asaresult , importdependenceinthe “ energyefficiencycase ” in2030maybeslightlyhigher thaninthebaseline ( EuropeanCommission2006 ) . Theabsenceofastrongcorrelationbetweenenergyefficiency , ontheonehand , energyimportsandsecurityofsupply , ontheother , hasseveral — complementary — explanations.TheprogressiveexhaustionofEuropesindigenousresources — especially oilandgas — isone.Second , thereisthesocalled “ reboundeffect ” .Improvementsin energyefficiencymakeenergyservices ( forexample , heatormobility ) cheaper , thus encouragingtheirfurtheruse.Thiscanresultinanoverallincreaseinenergy consumption , despitetheinitialdemandreduction.Thereboundeffectisverydifficultto measureanditcanhavedifferentimpactsindifferentsectorsbut , generallyspeaking , its impacthassofarbeenunderestimated.Inindustrialisedcountries , foranyincreasein energyefficiencythereisareboundeffectofatleast10percent ( uptoover50percent ) . Thismeansthattheactualreductioninenergyconsumptionisequaltoonlyacertain percentageoftheexpectedenergysaving ( UKEnergyResearchCentre2007 ) . Energyefficiency measures are one ofthe key areas forimproved internationalcooperation.Thestrongprojectedgrowthofenergydemandin developingandtransitioncountriesisexpectedtoleveloffanypossibleenergy efficiencyimprovementintheEU , bothfromthesecurityofsupplyandtheCO 2 emissionsperspectives ( EgenhoferandLegge2001 ) .WhileEuropesprimary energydemandisexpectedtoincreaseby4.5percentbetween2006and2030 , thebiggestemergingconsumercountryintheworld , namelyChina , willregister agrowthofmorethan100percent ( IEA2008 ) .ThismeansthatiftheEUwas abletosave20percentofenergyconsumption , Chinaalonewouldmakeupfor 3 68 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation morethanEuropesimprovements.Inotherwords , Europeseffortstoreduce greenhousegaseswillbeneutralisedbyChina.Thispointisreinforcedwhen takingintoaccounttheprojecteddemandgrowthofotheremergingeconomies — suchasIndia — and transition economies.Energy efficiency or conservation measuresinemergingeconomiesortransitioncountrieswouldbefar more beneficialbothforglobalenergysecurityandGHGreductionmeasures.Forthis reason , theEUpropagatesproactivecooperationwithkeythirdcountries.Its aim would beto develop a multilateralpartnershipforenergy efficiency involving , atfirst , membercountriesofthe OECD withapossiblefuture enlargementtootherpartners.Theagreementcouldincludevariousissueareas ofcooperation , suchasregulatorycooperation , informationexchangeonenergy savingstrategies , methodsofmeasurementandresearchcooperationonenergy efficiencytechnologies. 7.犃犱犪狆狋犪狋犻狅狀牶狋犺犲犆犪狊犲狅犳犈犾犲犮狋狉犻犮犻狋狔 TheelectricitysectorplaysacentralroleintheEuropeanUnionseffortsto achievegreenhousegas ( GHG ) reductionsofatleast20percentby2020 comparedto1990levels.Whiletheelectricitysectoriscurrentlyresponsiblefor aboutonethirdofEuropestotalenergyrelatedGHGemissions , thereisconsiderable potentialforreducingemissions.Mitigationstrategieswillneedtofocusnotonlyon moreefficientelectricityuse , butalsoonimprovedconversionratesand new technologies , suchasrenewablesandcarboncaptureandstorage ( CCS ) . Apartfromthemitigationofclimatechange , thesectorwillalsohavetoadaptto climatechangetoprovidesecureanduninterruptedservice ( foramoredetailedanalysis ofadaptationintheEuropeanelectricitysector , seeEskelandetal.2008 ) .Global warmingwillhaveasignificantimpactontheabilitytogenerateelectricityandto deliveritwithoutinterruption.Southerncountrieswillmostlikelybefacedwithless demandforheatingbutsubstantiallyincreaseddemandforairconditioning.Theymay alsoexperiencelossesinhydropowerandproblemswithcoolingofthermalpower plants.Northerncountrieswillequallyexperiencelessdemandforheatingandmay gainpotentialforelectricityproductionfromhydropower.Atthesametime , theymay havetoadapttomorestormsandheavyprecipitation.Inbothregions , electricitysupply disruptionsduetostorms , floodsandheat waves mayincreasetheneedfor more decentralisedelectricitygenerationinordertoavoidnegativeimpactsonelectricityusers. 8.犆狅狀犮犾狌狊犻狅狀 This chapter has shown thatclimate change policyin the context of ambitiousgreenhousegasreductiontargets maybebeneficialtosecurityof TheRelationshipbetweenClimateChangePoliciesandEnergySecurity EuropeandBeyond 3 69 supply.Renewableenergysources , energyefficiency , cleancoal , nuclearenergy and , generally , anewinnovationdriveareexamplesofmutuallybeneficialareas. However , manysecurityofsupplybenefitsarenotalwaysstraightforward. Renewablesareoftenintermittent , thuscausingadditional — albeitdifferent — securityofsupplyproblems.Energyefficiencyreducesimportdependenceonlyin theshortandmediumterm.Andeventhisisnotautomaticallypositive , given thatimportdependenceisnotproblematicperseinthecurrentEU energy system.Nuclearenergyhasitsownsecurityrisksandcleancoalisnotyet available , withcarboncaptureandstoragetechnologiesyettobedemonstrated onalargecommercialscale. Whileitcangenerallybearguedthatclimatechangerelatedpoliciesare — at leasttosomeextent — beneficialtosecurityofenergysupply , theoppositedoes notalwaysholdtrue.Especiallygaspipelinepoliticsandrelatedinfrastructure projectswillpredefineenergysuppliesin2050yearstocomeduetothelong lifetimeofpipelinesand / orLNGinstallations , ifproperlymaintained.Inother words , unlessequippedwithCCStechnologies , gassupplydiversificationefforts maylockenergyconsumingcountriesintoanenergypatternthatisnotinline withgreenhousegasemissionsrequirementstoavoiddangerousclimatechange. However , whenlinkedtothesubstitutionofcoal , gascouldbeanintermediate steptowardsreducingemissions.Otherexamplesoftechnologiesthatincrease securityofsupplyatthecostofclimatechangearetarsands , oilshales , coalor coaltoliquids.Thesetechnologiesshouldbeavoidedinthefuture. Internationalcooperation willbecrucialinachievingacleanandsecure globalenergysystem.Someemergingeconomiesarenotonlymajorgreenhouse gasemittersbutalsoproducersofcleanenergytechnologies.IRENAisastepin therightdirection , butitneedstoinvolveallmajorglobalenergyusersand producerstobeeffective.Similarly , itmaybeusefultoextenditsmandateto othercleanenergytechnologies , includingenergyefficiency. References BP ( 2008 ), 犅犘犛狋犪狋犻狊狋犻犮犪犾犚犲狏犻犲狑狅犳犠狅狉犾犱犈狀犲狉犵狔 , June. Egenhofer , C.andT.Legge ( 2001 ), 犛犲犮狌狉犻狋狔狅犳犈狀犲狉犵狔犛狌狆狆犾狔 . 犃犙狌犲狊狋犻狅狀犳狅狉犘狅犾犻犮狔狅狉 狋犺犲犕犪狉犽犲狋狊 ? CentreforEuropeanPolicyStudies ( CEPS ), November , Brussels. Eskeland , G. , E.Jochem , H.Neufeldt , T.Traber , N.RiveandA.Behrens ( 2008 ), The FutureofEuropeanElectricity:Choicesbefore2020 , 犆犈犘犛犘狅犾犻犮狔犅狉犻犲犳 , 164 , July. European Commission ( 2006 ), 犃犮狋犻狅狀 犘犾犪狀 犳狅狉 犈狀犲狉犵狔 犈犳犳犻犮犻犲狀犮狔 : 犚犲犪犾犻狊犻狀犵狋犺犲 犘狅狋犲狀狋犻犪犾 , COM ( 2006 ) 545 , 19October. 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Kuntz , M.andJ.Dawe ( 2005 ), 犚犲狀犲狑犪犫犾犲 . 犚犲犮犺犪狉犵犲犪犫犾犲 . 犚犲犿犪狉犽犪犫犾犲 , MechanicalEngineering , online: http: // www. memagazine.org / backissues / membersonly / oct05 / features / rerere / rerere.html ( January13 , 2009 ) . Larsson , R. ( 2007 ), 犜犪犮犽犾犻狀犵犇犲狆犲狀犱犲狀犮狔 : 犜犺犲犈犝犪狀犱犻狋狊犈狀犲狉犵狔犛犲犮狌狉犻狋狔犆犺犪犾犾犲狀犵犲狊 , Stockholm:SwedishDefenceAgency. McKinsey ( 2009 ), PromotingEnergyEfficiencyintheDevelopingWorld , in: 犜犺犲犕犮犓犻狀狊犲狔 犙狌犪狉狋犲狉犾狔 , February2009. MassachusettsInstituteof Technology ( 2003 ), 犜犺犲犉狌狋狌狉犲狅犳 犖狌犮犾犲犪狉 犘狅狑犲狉 . 犃狀 犐狀狋犲狉犱犻狊犮犻狆犾犻狀犪狉狔犕犐犜犛狋狌犱狔 , Boston. Mueller , F. ( 2007 ), 犈狀犲狉犵狔犛犲犮狌狉犻狋狔 — 犇犲犿犪狀犱狊犐犿狆狅狊犲犱狅狀 犌犲狉犿犪狀犪狀犱 犈狌狉狅狆犲犪狀 犉狅狉犲犻犵狀犘狅犾犻犮狔犫狔犪犆犺犪狀犵犲犱犆狅狀犳犻犵狌狉犪狋犻狅狀犻狀狋犺犲 犠狅狉犾犱 犈狀犲狉犵狔 犕犪狉犽犲狋 , SWP ResearchPaper2 , Berlin:SWP. REN21 ( 2008 ), 犚犲狀犲狑犪犫犾犲狊2007犌犾狅犫犪犾犛狋犪狋狌狊犚犲狆狅狉狋 , REN21SecretariatandWashington , D.C. , WorldwatchInstitute , Paris. Sinden , G. ( 2005 ), 犃狊狊犲狊狊犻狀犵狋犺犲犆狅狊狋狊狅犳犐狀狋犲狉犿犻狋狋犲狀狋犘狅狑犲狉犌犲狀犲狉犪狋犻狅狀 , UK Energy ResearchCentre , 5July. Sioshansi , F. ( 2009 ), 犐犚犈犖犃 : 犇狅犠犲犖犲犲犱犢犲狋犃狀狅狋犺犲狉犈狀犲狉犵狔犃犵犲狀犮狔 ? online:http: // www.energypolicyblog.com / 2009 / 03 / 09 / irenadoweneedyetanotherenergyagency / ( November30 , 2010 ) . UKEnergyResearchCentre ( 2007 ), 犜犺犲犚犲犫狅狌狀犱犈犳犳犲犮狋 : 犪狀犃狊狊犲狊狊犿犲狀狋狅犳狋犺犲犈狏犻犱犲狀犮犲 犳狅狉犈犮狅狀狅犿狔狑犻犱犲犈狀犲狉犵狔犛犪狏犻狀犵狊犳狉狅犿犐犿狆狉狅狏犲犱犈狀犲狉犵狔犈犳犳犻犮犻犲狀犮狔 , TheSussex EnergyGroup , October , Sussex. WorldNuclearAssociation ( 2008 ), 犜犺犲犈犮狅狀狅犿犻犮狊狅犳 犖狌犮犾犲犪狉犘狅狑犲狉 , online:http: // www.worldnuclear.org / info / inf02.html. 3 71 犆犺犪狆狋犲狉12 犈狀犲狉犵狔犛犲犮狌狉犻狋狔犪狀犱犆犾犻犿犪狋犲犆犺犪狀犵犲犻狀犚犲犾犪狋犻狅狀狊 犫犲狋狑犲犲狀狋犺犲犈犝 , 犆犺犻狀犪犪狀犱犔犪狋犻狀犃犿犲狉犻犮犪牶犕犪犼狅狉 犆犺犪犾犾犲狀犵犲狊犪狀犱犃狉犲犪狊犳狅狉犐狀狋犲狉狀犪狋犻狅狀犪犾犆狅狅狆犲狉犪狋犻狅狀 )*" í *+",(-,#*.,/0* 1*"&2*( 1.犐狀狋狉狅犱狌犮狋犻狅狀 From astrategicandgeopoliticalperspective , energyisanimportant bargainingchipininternationalrelations.Furthermore , globalwarmingisoneof themainworriesforthefutureoftheplanet ; ithasbeendirectlylinkedtothe lifestylesofpeoplelivingintheindustrialisedcountriesandthekindsofenergy theyconsume.Nowadays , climatechangeisnotamatteronlyfordiscussion amongenvironmentalistsorotherexperts , asinthepast , butincreasinglya significantpoliticalissue , relatedtohumansurvival. Withregardtoenvironmentalandenergyissues , LatinAmericaandtheCaribbean ( LAC ) countrieshavebrokenthetrendsofshortageanddependencythattraditionally characterisedtheirrelationswiththedevelopedworld.Thus , LACcountrieshavea specialroletoplayandmuchtosayinexternaldialoguesregardingthesetwosubjects. Thischapterwillfirstgivesomegeneralbackgroundaboutenvironmental andenergyresourcesinLAC , providingsomecluesforabetterunderstandingof theregionalsituation , followedbyacloserlookatintraregionalLACdialogues andcooperation , aswellaswiththeEUandChina.Finally , theinterestsof LACwithintheframeworkofglobalmultilateralismandthelatestresponsesof globalregulatorymechanismsareexamined. 2.犔犃犆犛犻狋狌犪狋犻狅狀狑犻狋犺狉犲犵犪狉犱狋狅犈狀犲狉犵狔犛犲犮狌狉犻狋狔犪狀犱犆犾犻犿犪狋犲犆犺犪狀犵犲 Inthefieldofenergysecurity , LACsharesasetofcommongoalsandchallenges , suchasseekingtodiversifytheenergygrid , incorporatingrenewableenergiesasakey elementinnationalindependenceandadoptingsustainableenergystrategies.Allthese 3 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. EnergySecurityandClimateChangeinRelationsbetweentheEU , Chinaand 3 73 LatinAmerica:MajorChallengesandAreasforInternationalCooperation Besides , nuclearenergyisbeingpromoted — evenwithintheframeworkof theOrganizationofAmericanStates ( OAS )— asavalidsupplyoptioninLAC , giventhattheregionwillneedtosatisfyincreasingenergydemand , likelyto growby75percentby2030 , accordingtotheInterAmericanDevelopmentBank ( IADB )( Cruz2008:20 ) .Thisisacontroversialissueas , intermsofthe greenhousegasemissions ( GGE ) responsibleforglobalwarming , nuclearpower ischeaperthanfossilfueloptionsandlesspolluting. 2.2 LatinAmericanStrengths Inenergyterms , Latin Americaistheonlyoccidentalregioncapableof beingselfsupplying.Inthissense , itcanbeseenastheonly “ sovereignregion ”, asitdoesnotdependonexternalsupplies. Asalreadymentioned , ithaslargescaleresourcesintermsoffossilfuels , butalsorenewables.Inagriculture , ithasgreatpotentialforincreasingits cultureandproductivityperhectare.Furthermore , itsbiomassenergypotentialupto 2050couldrepresentbetween17and26percentofglobalenergy , largerthanany otherregionintheworld ( CEPAL2007:12 ) .Suitablelandavailabilityisoneofthe mainstrengthsofLatin Americancountries , complementedby waterresourcesand stable , warmtemperatures , concentratedinwettropicalzones , essentialforhigheryields insomekeyproductsusedforbiofuelsproduction , suchassugarcaneandpalmtrees. 2.3 LatinAmericanWeaknesses Butthegreatbenefitofhavingenormousnaturalresourcesis , atthesametime , Latin Americas Achilles heel , asitis extremely vulnerable to ecosystem transformationsresultingfromglobalwarming.Infact , LatinAmericaisoneofthe mostvulnerableregions , andisalreadysufferingfrom desertification , droughts , floods , thaws , aloweringoffreshwateravailabilityandexpansionoftropicaldiseases , amongotherthings.ThisismadeworsebythefactthatLACeconomiesaremostly dependantonrawmaterialsandnaturalresourcesforexportsandconsumption. AlthoughtheLACregionisenergyselfsufficient , about12percentofthe populationstilldonothaveaccesstoelectricityand33donotevenhaveaccessto drinkablewater ( WorldBank2010:58 ) .Besides , theregionisinefficientin energyconsumption — theEUusesonlyhalfasmuchenergyforproduction — and itisunabletosetcommongoals , toagreeonlongterm policiesortobuilda coordinatedenergy market.It makesuseofenergyresourcestopromotenational interestsandpayslittleattentiontoenvironmentaldegradation.Evenmoredisturbing isthefactthatgreenawarenessisverylowamongcitizensofLACcountries. 3 74 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation 2.4 GeopoliticalValueofEnergy As already mentioned , energyin Latin Americais a factor promoting “ independence ”, inthesensethatitdoesnotneedexternalresources.Atthesame time , itisafactorinpoliticalrestructuring , aligningthedifferentLACcountries accordingtotheirenergycapabilities.Thismeansthattheyaredividedinto “ energy producers ” and “ energyconsumers ” .CountriessuchasBrazil , Venezuela , Mexico , BoliviaandEcuadorareenergyproducers , whileChileisanetconsumer , andinthe middle , therearemanycountriestryingtoestablishabalance.Inaddition , anew categoryof “ energynationalism ” hasemergedincountriesthatseektousetheir advantageasproducerstoestablishanewregionalpowerbalance. 3.犜犺狉犲犲犐犿狆狅狉狋犪狀狋犆狅狀狊犻犱犲狉犪狋犻狅狀狊犠犺犲狀犃狆狆狉狅犪犮犺犻狀犵犔犪狋犻狀犃犿犲狉犻犮犪 3.1 FirstConsideration:LatinAmericasDiversity AgoodstartingpointforunderstandingLatinAmericaistothinkofitasa puzzle , composedofdifferentorevenoppositezones.Latin Americaandthe Caribbeancannotbethoughtofasawhole , andextraregionaldialoguemust takethisintoaccount.Infact , itisaregionofsubregions. Ingeographicalterms , theLACregioncanbedescribedasfoursubregionsandtwo nonintegratedcountries.FromNorthtoSouth , thereisMexicoatthetop ; thenCentral AmericaandtheCaribbean , whicharegroupedintheCentralAmericanIntegration System ( SICA ) andtheCaribbeanCommunity ( CARICOM ) .InSouthAmerica , there aretheAndean ( CANgroup ) andtheAtlanticcountries ( MERCOSUR ) .Thesetwo SouthAmericansystemshavenowcreatedanewmechanism , calledUNASUR.Atthe bottomofthemap , thereisChile , whichisanisolatedcountry. Thissubregionaldistributionembodiesawiderangeofcharacteristics , as wellasdifferentdiagnosesandresponsestoenvironmentalandenergymatters. Eachsubregionhasitsownenvironmentalinstitutionsandavarietyofsub regionalandnationalpolicies , prioritiesandstrategies , showingthevaried relevancegiventoclimatechangeandenergyinLACsubsystems ( Box1 ) . 犆犲狀狋狉犪犾犃犿犲狉犻犮犪狀犐狀狋犲犵狉犪狋犻狅狀犛狔狊狋犲犿 ( 犛犐犆犃 ) 犕犪犻狀犳犲犪狋狌狉犲狊 ItincludessevenCentralAmericancountries ( Guatemala , Belize , El Salvador , Honduras , Nicaragua , CostaRicaandPanama ) andoneCaribbean country ( DominicanRepublic ) withhighoilandgasdependency.Halfof thesecountriesarealliedtoPetrocaribe , aVenezuelaninitiative. EnergySecurityandClimateChangeinRelationsbetweentheEU , Chinaand 3 75 LatinAmerica:MajorChallengesandAreasforInternationalCooperation 犛狆犲犮犻犳犻犮狉犲犵犻狅狀犪犾犻狀狊狋犻狋狌狋犻狅狀狊犻狀犛犐犆犃 TheCentralAmericanCommissionforEnvironmentandDevelopment ( CCAD ) was createdin 1989.It bringstogether allthe environment ministriesandhostsavarietyofinstitutions , includingPREVDA ( fornatural disasterprevention ) andPRESANCA ( forfoodsecurity ) . 犕犪犻狀狅犫犼犲犮狋犻狏犲狊 TheCCADsmissionisto “ contributetosustainabledevelopmentinthe CentralAmericanregion , strengtheningtheregimeofcooperation and integrationforenvironmentalmanagement ” .Thisistobeachievedbya2005 2010EnvironmentalPlanfortheCentralAmericanRegion , withtwomain tasks:preventionandcontrolofenvironmentalpollution , andconservation andsustainableuseofnaturalheritage. Withinthisframework , in2007theCCADdesigneda “ Sustainable EnergyStrategy ” upto2020 , aimedatreducingdemandforproductsderived fromcrudeoil , reducingenergydependence , increasingrenewablesources , improvingefficiencyandpromotingthejudicioususeofenergytoincorporate newtechnologiesandlesspollutingenergysources , increaseaccesstoenergy servicesamonglowincomeandisolatedpopulations , relievetheeffectsof energyuseandproductionontheenvironmentanddevelopenergyprojects compatiblewiththeenvironmentandhumansettlement.Thisstrategyis followedupatregionalsummitsonclimatechangeandtheenvironment. Source:www.sica.int / ccad. 犃狀犱犲犪狀犆狅犿犿狌狀犻狋狔 ( 犆犃犖 ) 犕犪犻狀犳犲犪狋狌狉犲狊 CANincludesfourAndeancountries ( Colombia , Ecuador , Peruand Bolivia ), allofthem selfsufficientenergyexporters ( gas , petroleum ) .A totalof28percentoftheirenergyisclean ( CEPAL2005:5 ) and , including Venezuela , theyaccountforas muchas25 percentofglobalecological diversity.They are highly vulnerableto climate change , asthe global temperaturehasincreasedintheAndeanregionby70percentmorethanthe globalaverage , causingseveredamage ( forexample , duringthepast35years Peruvianglaciershavedecreasedby22percent , affectingwateravailability ) ( SGCAN2008:9 , 14 , 17 ) . 犛狆犲犮犻犳犻犮狉犲犵犻狅狀犪犾犻狀狊狋犻狋狌狋犻狅狀狊犻狀犆犃犖 OfficialcoordinationmechanismsintheAndeanIntegrationSystemare: AndeanEnergyAlliance , AndeanEnvironmentalAgenda. 3 76 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation 犕犪犻狀狅犫犼犲犮狋犻狏犲狊 Intheenergyfield , CANisfocusingonelectricityandgasinterconnection , as wellasthecreationofenergyclustersandthedevelopmentofrenewableenergies , linkedtoanintegratedsocialdevelopmentplan. Intheenvironmentalfield , theAndean Agenda ( 20062010 ) includes fouritems:climatechange , biodiversity , waterresource managementand preventionofnaturaldisasters.Thereisalsoregionalcoordinationofnational authoritieswithintheframeworkofCleanDevelopmentMechanismsforthe mitigationoftheeffectsofgreenhousegases. Source:www.comunidadandina.org. 犛狅狌狋犺犲狉狀犆狅犿犿狅狀犕犪狉犽犲狋 ( 犕犈犚犆犗犛犝犚 ) 犕犪犻狀犳犲犪狋狌狉犲狊 ThisincludesfivecountriesfromtheeasternsideofSouth America , includingthemainoilproducer ( Venezuela ), themainbiofuelsproducer ( Brazil ) andoneofthebiggestagricultureproducers ( Argentina ), together withtwosmall , energydependantcountries:UruguayandParaguay.This region has wideexpansesofarablelandanda majorunderground water reserve ( 1 , 190000km 2 ) . 犛狆犲犮犻犳犻犮狉犲犵犻狅狀犪犾犻狀狊狋犻狋狌狋犻狅狀狊犻狀犕犈犚犆犗犛犝犚 None. 犕犪犻狀狅犫犼犲犮狋犻狏犲狊牶 Therearedifferentnationalgoals.Thecommonobjectivesarerelated mainlytotheenvironment , includingbiodiversity , biosecurityandecotourism , with specificactionagainstdesertification , earthdegradation , droughtandairquality.In 2007 , MERCOSURcountriesagreedonacommonpolicyforthepromotionof andcooperationin sustainable production and consumption , aimingto generate “ initiativesforimproving environmentalperformanceandthe efficiencyofproductionprocesses , aswellascooperationintheadoptionof sustainableproductionandconsumptionpractices , inanattempttoincrease competitivenessandreducerisksto human health andtheenvironment ” ( MERCOSUR / CMC2007:Art.2° ) . Theirinstitutionalandpolicydevelopmentsindicatethatthethreemainsub regionsinLatinAmericahavedifferentapproachestoenergyandenvironmental issues.Lately , however , therehasbeensomemovementinacommondirection , asinSICAandMERCOSUR — regardingbiofuelproduction ( ledmainlybyBrazil EnergySecurityandClimateChangeinRelationsbetweentheEU , Chinaand 3 77 LatinAmerica:MajorChallengesandAreasforInternationalCooperation andGuatemala ) .TheconsensuswasreachedBetweenCANand MERCOSUR withintheframeworkofUNASUR atthe MargaritaIslandSummitin2007 , wherethe12South Americancountriesestablishedthebasisforaregional energyintegrationstrategy.InMay2008 , aSouthAmericanEnergyCouncilwas launchedinordertodrawupaRegionalEnergyTreatyfortacklingissuesrelated topetroleum , gas , powersavingandalternativeenergy ( biofuels , wind , solar andwaterenergy ) .Twoyearslater , inMay2010 , theguidelinesfortheSouth AmericanEnergyStrategy , aswellasanActionPlanandadraftstructureofthe EnergyTreaty , wereapproved.Itisexpected , therefore , thatby2011South AmericashouldhavedevelopeditsfirstregionalEnergyTreaty. Innationalterms , althoughtheLACregionisanetoilexporter , threecountries accountforalmost80percentofoilproductionandover90percentofoilreserves ( Venezuela , BrazilandMexico ) .Ontheotherhand , mostofthesmallercountriesare oildependant ( OLADE2008:2122 ) .Therefore , thereisneitherhomogeneitynor acommondiscourseaboutenergyintheLACregion.Therearevariousnational interests — mainlybetweenoilproducingcountriesandagriculturalcountries — heterogeneouslawsandpoliticalvisions ( VenezuelaandBrazil , thetwo main countriesingeopoliticalenergyterms , areatoddsinthisrespect ), aswellas politicisedandconflictualenergyrelationsbetweenLACnations. ThisdiversitycanbeillustratedbydataonthebiofuelssituationinLAC economies. 犜犪犫犾犲1 犛犿犪犾犾犪狀犱犕犲犱犻狌犿犛犻狕犲犱犔犃犆犆狅狌狀狋狉犻犲狊犻狀狋犺犲犉狌犲犾犕犪狉犽犲狋 犉犲犪狋狌狉犲狊 Biomass Biomass Biomass Biomass producersand producersand exportersand exportersand oilexporters oilimporters oilexporters oilimporters 犆狅狌狀狋狉犻犲狊 Mexico Venezuela ChileDominican Argentina PeruParaguay Republic BoliviaColombia UruguayCosta Nicaragua Ecuador RicaGuatemala Panama Honduras Source:IADB2007. 犜犪犫犾犲2 犖犪狋犻狅狀犪犾犌狅犪犾狊狑犻狋犺狉犲犵犪狉犱狋狅犅犻狅犳狌犲犾狊犻狀犔犃犆犆狅狌狀狋狉犻犲狊 Country Bioethanol Biodiesel Argentina 5% — 2010 5% — 2010 Bolivia — 2 , 5% — 2007 , 20% — 2015 Brazil 22% , 25% — 2001 5% — 2010 , 20% — 2020 3 78 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation Country Colombia CostaRica Ecuador Honduras Mexico Panama , Nicaragua , ElSalvador , Guatemala Bioethanol 10% — 2006 ( byregions ) 7% , 5% — 2010 20% — 2020 Testinguntil2010 15%replacementoffossilfuels Paraguay 18% Peru 7% , 8% — 2006 ( byregions , progressive ) Dominican Republic 15% — 2015 Uruguay 5% — 2014 Source:IICA2010. Biodiesel 5% — 2008 2% 30% 1% — 2007 , 3% — 2008 , 5% — 2009 5% — 2008 ( byregions , progressive ) 2% — 2015 2% — 2011 , 5% — 2012 犜犪犫犾犲3 犔犲犵犻狊犾犪狋犻狅狀狅狀犅犻狅犳狌犲犾狊犻狀犔犃犆犆狅狌狀狋狉犻犲狊 Lawsestablishing Lawsestablishing Lawsandregulations Country ethanolincorporation ethanolproduction definingethanol incentives quality Argentina Brazil Colombia CostaRica None None DominicanRepublic None None None ElSalvador None None Guatemala None None Jamaica None None None Mexico None None None Paraguay None Peru None None Source:IICA2007. EnergySecurityandClimateChangeinRelationsbetweentheEU , Chinaand 3 79 LatinAmerica:MajorChallengesandAreasforInternationalCooperation 3.2 SecondConsideration:LatinAmericaIsMorethanJustBrazil Besidesthediversitybetweensmalland mediumsized LACcountries , as wellasbetweenthedifferentLACsubregions , adistinction mustbemade betweenBrazilandtherestoftheregion. Inmostextraregionaldialogues ( US , G20 , G5andsoon ), Brazilis increasingly acting as Latin Americas representative. With regard to environmentaland energyissues , however , itisimportantto note Brazils distinctiveness. Brazilispromotingbiofuelsproduction , in whichitisthe worldleader. Afterpursuingthispolicyfor30years , itistheprimarybioethanolexporterin theworld market ( OLADE2008:84 ) .Ithasthenecessarytechnological capacities , consolidatedinstitutionsandgovernmentpolicies , aswellasthemost extensiveterritory.However , whileBrazilisenhancingitsparticipationinthe multilateralsystem , LACspresenceisstillveryweak. 3.3 ThirdConsideration:LACIsNotOneoftheMainCulpritswithregardto GlobalWarming LAChasbeenstronglyaffectedbyglobalwarming — whichoriginatedin greenhousegases — andis paying the priceforthe energy abuse ofthe industrialisedeconomies.LACisresponsibleforonlyaround10percentof greenhousegasesworldwide ( CEPAL2009:109 ) .Atthesametime , itis expectedtoproduceaccordingtocleanstandardsandtohaveanequalsharein thecostsofsolvingtheproblem.Inaddition , helpfromdevelopedcountriesis focusedmainlyonthepromotionofacarbonmarket , whichwouldenablethe developingcountriestobuy “ therighttopollute ” . Animportantsourceofgreenhousegasesisthedeforestationoftropical rainforests , asforestscapturecarbonintheirplants , treesandsoils.Tropical forestsabsorb18percentofCO 2 , asakindof “ freegift ” fromnature.The situationisparticularlyseriousinLatinAmerica , wheretherateofdeforestation isdoubletheglobalaverage:between1990and2005 , forexample , Central Americalost23.3percentofitsforests ( CEPAL2009:47 ) . Fromanotherperspective , globalwarmingisnot “ fair ”, asitaffectssome regionsoftheplanetadverselyandfavoursothers.Regardingthedistributionof impactsandvulnerabilities , the UNsIntergovernmentalPanelon Climate Change ( IPCC ) clearlystatedthat “ therearesharpdifferencesacrossregionsand thoseintheweakesteconomicpositionareoftenthemostvulnerabletoclimate changeandarefrequentlythe mostsusceptibletoclimaterelateddamages ” ( UNIPCC2007:65 ) .Thus , thosewithawarmclimatecouldhardlybearrises 3 80 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation of1degree , whileinthecountriesoftheNorth , evenathreedegreerisecould leadtogrowthinagriculturalproductionandenergysavingsinthe winter. ClimatechangecouldcausehungerintheLACregion , asgrainsarethemost susceptiblecrops ( mainlycorn , riceandcoffee ) inthisrespect.Forinstance , theIPCCpredictsa70percentdiminutionofthesecropsinBrazilandMexicoby 2050.Thesituationcouldturnouttobeevenmoreserious , however , asthe costs of water pumping will make the exploitation of water reserves unsustainableby2030. 4.犈犝犔犃犆犚犲犾犪狋犻狅狀狊狅狀犈狀犲狉犵狔犪狀犱犈狀狏犻狉狅狀犿犲狀狋犪犾犐狊狊狌犲狊 TheEU andthe LAC regionareengagedin dialogueonsustainable development.ItwasoneofthetopicsdiscussedattheEULACLimaSummit , in May2008 , togetherwithpovertyandsocialcohesion , andalsoatthe Madrid SummitinMay2010fromtheperspectiveoftechnologyandinnovation.Three topicsareofparticularimportancewithregardtosustainabledevelopment:the environment , climatechangeandenergy.Thisdialogueisintendedtoproducea globalenvironmentalandenergypact. Withregardtoenvironmentalandenergyissues , relationsbetweenLatin AmericaandtheEuropeanUnionarebasedonthefactthatLACisthesupplier andtheEU thecustomer.Inenergy markets , thisrelationshipendowsLAC withenormousadvantages:theEUisdependentonexternalenergyandtheLAC regionisautonomousinthatrespect ; the EU haslimitedcapacitiesfor agriculturalbiomassdevelopmentandLAChasenormouscapacityforenergy production , bothrenewableandfossil. IncontrasttotheLACregion , theEUdoeshaveacommonenergypolicy , anda 20 / 20 / 20Plan , aimedatreducinggreenhousegasesby20percentby2020in comparisonto1990levels , increasingrenewableenergyuseby20percentandreducing energyconsumptionby20percent.By2020 , biofuelsshouldrepresent10percentof totalfuelconsumptionintheEU.Toachievethis , alargeshareofbiomasswillbe importedfromtheSouth , especiallyfromLatinAmerica ( Fritz2008:4 ) . LACistheonlyWesternregioncapableofsupplyingitsownfirstgeneration biofuelneeds , whiletheEU — aswellastheUnitedStates — willfacesignificant shortandmediumtermproblemsinthisrespect ( CEPAL2008:21 ) .Inthis sense , theEUneedstheLACregiontomeetitsgoals. AccordingtoECLAC , in2005theEUwasalreadyusing60percentofthe landdedicatedtomajorcropsforbiodieselproduction , andwouldhavetotriple theareatomeetthe2020demand.TheEUsnonfoodcropcapacityisabout8.2 millionhectaresandasimilarquantityoflandislyingfallow , butforits2020 EnergySecurityandClimateChangeinRelationsbetweentheEU , Chinaand 3 81 LatinAmerica:MajorChallengesandAreasforInternationalCooperation targetsitwillneed23millionhectares , andsomustlookbeyonditsbordersfor newcultivablelands.Withinthesametimehorizon , LACwillneedonly9per centofitsarablelandtosatisfyitsownbiofuelneeds , leavinggreatpotentialfor newcrops.Thus , itisestimatedthatdemandinLAC willincrease , possibly affectingtheregionsruralenvironment ( CEPAL2008:2122 ) . Asaconsequence , theEUstrategyforbiofuelshaslaiddownthreemain objectives , twoofthem aimingtopromotebiofuelproductionin developing countries , whileatthesametimeexpressingitscommitmenttosustainable developmentandcompetitiveness ( EC2006:4 ) . In2007 , withastrategysimilartoonepreviouslyimplementedbytheUS , theEUforgedastrategicalliancewithBrazil , includingcooperationinrenewable energy , especiallyin biofuelsandenergytechnologiesbased onlow carbon emissions , as wellasincreasedenergyefficiency.Brazilisthe mainregional exporterofenergytotheEU , followedbyGuatemalaandPeru. Itisimportanttonotethat , besidesthiskindofexchange , bothregions havedifferentregionalobjectives.FortheEU , theprioritiesaretoensureits energysupply , toimproveenergyefficiencyandtocompleteitsinternalenergy market.TheLACregionisaimingatclimatechangemitigation , thepreservation ofbiodiversity and the prevention of natural disasters. These different perspectivesshouldmakecooperationbetweenthetworegionsveryfruitful. 5.犆犺犻狀犪犔犃犆犚犲犾犪狋犻狅狀狊狅狀犈狀犲狉犵狔犪狀犱犈狀狏犻狉狅狀犿犲狀狋犪犾犐狊狊狌犲狊 Eventhough China andthe LAC region are nominally bothinthe “ developing ” category , theyareclearlynotthesame.Moreover , China , likethe EU , operatesinLatinAmericaasadonor , investorandsupplierofgoods.In thissense , ChinaviewsitsrelationswithLAC , fromastrategicviewpoint , as directedtowards building a “ comprehensive and cooperative partnership ” ( ChineseGovernment2008 ), alongthesamelinesastheobjectivesproposedby theEUand , recently , bytheUnitedStates.Tradestatisticsillustratethisvery well:inthepastdecade , commercebetweenChinaandtheLACcountrieshas increasedtenfold , risingfrom USD12.595billionin2000toUSD120.61billion in2009 ( SELA2010:21 ) .Since2007 , ChinaLACbusinesssummitshavetaken placeonanannualbasis , helpingtoincreasetradeandinvestment. In2008 , theChinesegovernmentissueditsfirstpolicypaperonLatinAmerica andtheCaribbean.InitsWhitePaperontheLACregion , Chinaoutlinesrelationsin fourareas: ( 1 ) politics ,( 2 ) economics ,( 3 ) cultureandsocialpolicyand ( 4 ) peace , securityandlegalaffairs.ChinaspolicypaperonLACisa34pointstrategy , oneof which , intheareaofeconomics , isdevotedto “ ResourceandEnergyCooperation ” . 3 82 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation Thematterisaddressedverybrieflyandgenerally , statingonlythat “ the Chinesesidewishestoexpandanddeepenmutuallybeneficialcooperationwith LatinAmericanandCaribbeancountriesinresourcesandenergywithinbilateral cooperationframeworks ”( ChineseGovernment2008 ) . Intheenergysector , ChinahasgrowinginterestsinLAC:alliances , loans andinvestmentsinminerals , carbon , gasandpetroleum , mainlywithBraziland Venezuela.Butenvironmentalissuesstillarenotonthebilateralagenda. Chinahasbeenconfirmedasaworldpowerwithintheframeworkofthe G20.Itnowhastodecidewhatkindofpoweritwillbe.Undoubtedly , Chinahas aroletoplayintheLACregionand , atthesametime , needstoreinforceits internationalinfluencebyestablishingapositivepresenceinemergingregions.In thiscontext , itisimportanttomentionChinasjoiningoftheInterAmerican DevelopmentBankas48thmember , thefreetradeagreementswithChile , Peru andCosta Rica , aswapagreement with Argentina — permittingcommercial exchangesbasedontheyuan , withoutusingthe US dollar — as wellasthe expansionofinvestmentsinmining ( copper , aluminiumandironore ) andenergy ( petroleumandgas ) inLatinAmerica. 6.犔犃犆犐狀狋犲狉犲狊狋狊犻狀犈狓狋犲狉狀犪犾犇犻犪犾狅犵狌犲狊狅狀犈狀犲狉犵狔犪狀犱狋犺犲犈狀狏犻狉狅狀犿犲狀狋 AnyglobalortrilateralagreementmusttakeintoaccounttheLACregions heterogeneity , includingBrazilsdifferentenergysituationcomparedtotheother LACcountries , andLACslowcontributiontoglobalwarming , whilebeingthe mostadverselyaffectedregion.Asaconsequence , whateverthescenario , some basicprinciplesmustbeestablished , suchastherecognitionofasymmetries , the specificneedsanddemandsofindividualcountriesorsubregionsandsustainable development. 6.1 AgreementsandFunding Giventheasymmetrictrilateralrelations , theLACregionshouldbenefit fromthestatusofspeciallyfavouredpartyininternationalagreements.LACs commitmentsmusttakeintoaccountthedamagecausedbytheregionandthe responsibility of other parties ; in other words , commitments based on responsibilityorcapacities ( emissionsorGDP ), ashasbeenproposedbythe EuropeanCommission. Atthesametime , asymmetriesalsorequirehigherspendingandforeign investments , in order , for example , to develop clean technologies , create infrastructureandsupportextractiveactivitiesthatcouldhelptheLACregionto bemorecompetitive.Also , researchinvestmentsmustbeapriority. EnergySecurityandClimateChangeinRelationsbetweentheEU , Chinaand 3 83 LatinAmerica:MajorChallengesandAreasforInternationalCooperation 6.2 FocusedCooperation LAChasthelandcapacity , but — withtheexceptionofBrazil — itdoesnotyet havethecapitalandtechnology , institutionalcapacitiesandpoliticalandlegislative frameworksrequiredtoattainsustainabledevelopmentwithregardtoenergy. Cooperationmustfocuson 犪犱犪狆狋犪狋犻狅狀犪狀犱狋犺犲犿犻狋犻犵犪狋犻狅狀狅犳犮犾犻犿犪狋犲犮犺犪狀犵犲 , helpingto preventitsnegativeconsequences , such aslossofbiodiversity or deforestation.ThemaintenanceofCentralAmericanandAmazonforestsisvitalfor carbonemissionsreduction , butthepressurefornewarablelandspartlyduetothe increasingdemandforbiofuelproductionrunscountertothisobjective. Asecondpriorityisthesearchforrenewableenergies , takinggoodcareto preservethenaturalheritageandfoodsecurity , andtakingintoconsideration nationalandsubregionalspecificities.TheEUhasbeenagoodexampleofthis kindofcooperation , supportingrenewableenergyprojects — suchastheEnergy andEnvironmentPartnership with CentralAmerica , financedby Finnishand Austriancooperation.However , 狉犲狀犲狑犪犫犾犲犲狀犲狉犵狔犿狌狊狋犫犲狌狀犱犲狉狊狋狅狅犱犳狉狅犿狋犺犲 狆犲狉狊狆犲犮狋犻狏犲狅犳狆狉狅犿狅狋犻狀犵犪犱犻狏犲狉狊犻犳犻犲犱犵狉犻犱 , notonlybiofuels , whichcanbe hazardousforLACdevelopment. InitiativessuchasEUrocLima , launchedatthe5thEULACsummit , Lima 2008andaimedatstemmingclimatechange , isastartingpointforbiregional cooperation , butitisstillinitsinitialstagesandmustbedeepenedtohaveareal impact.The Madrid ActionPlanadoptedatthelastEULACsummitin May 2010hastakennewstepsinthisdirection. 6.3 A WinWinSituation Fromacommercialpointofview , theLACregioncangainafootholdinthe marketforcarboncredits.Butacarbonmarketisnotnecessarilyaneffective solution.Itrelievesotherregionsofresponsibilityforgreenhousegases , but LACexportsmustbepromoted.Sometradebarriersmustbecarefullyanalysed , astheyaffectthe LAC regionscompetitivenessintheenergyand green markets — mainlyagriculturalsubsidies , butalsoecolabelling , fueltaxesand CivilAviationpolicyintheEU.Intermsofinvestments , theinstallationofclean standardindustriesisdesirable , inordertoboostgoodpracticesinproductionin LACcountries. Regardingdemandforbiofuels , anumberofrequirementsmustbetaken intoconsideration , suchastheloweringofagriculturalsubsidiestoallowfair competition , theimpactofbiomassproductiononfoodpricesandaproper balanceintheuseoflandandwater.Definingtheenergybasewithregardto 3 84 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation biomassmusttakeintoconsiderationfoodsecurityinaccordancewithreaching theMillenniumGoalsinLACcountries.Theperspectivesofregionalbodiessuch astheEconomicCommissionforLatinAmericaandtheCaribbean ( ECLAC ) or theFoodandAgricultureOrganization ( FAO ) canhelporientatethesearchfora basicconsensus. The 狋狉犪狀狊犳犲狉犲狀犮犲狅犳犲犮狅狋犲犮犺狀狅犾狅犵犻犲狊 isalsoarequirementforlowcarbon development.ThiswillallowtheLACregiontoincreaseitsenergyefficiency and , atthesametime , openupnew marketsforcleandevelopmentproducts ( solarcells , windturbinesandotherthings ) fromindustrialisedcountries. Lastbutnotleast , climatechangemitigationisnotonlyamatterforgovernments andregionalormultilateralbodies.Firstofall , societiesandindividualsmustchange theirbehaviour.Enhancingpublicawarenessbymeansofactivitiesdirectedtowards buildinganew “ greenpublicopinion ” isurgentlyneeded.Inthisarea , theEUisa goodmodel , aswellasapotentialcooperationpartner. 7.犜犺犲犈犝 , 犆犺犻狀犪犪狀犱狋犺犲犔犃犆犚犲犵犻狅狀犻狀犕狌犾狋犻犾犪狋犲狉犪犾犅狅犱犻犲狊 Therearemorethan15multilateralenvironmentalagreementsdealingwith virtuallyeverykeyissue:wetlands , culturalandnaturalheritage , endangered species , migratory species , theseas , the ozonelayer , hazardous waste , chemicalsandpesticides , organicpollutants , biologicaldiversity , desertification andbiotechnology.Butintheenergysector , thereareonlyanumberofbilateral orregionalagreements — forinstance , theEnergyCharterTreatyintheEurasian regionortheEnergySecurityTreatywithintheframeworkofthePetrocaribe initiative — asitisconsideredprimarilyastrategiceconomicissue , ratheran environmentalone. Energysecurity — understood simply asthe needto safeguard energy supplies — cannotbereducedtoeconomicconsiderations ; itisamultidimensional issue.Ifthisvitalmatterisledbymarketforcesorreducedtoenergydialogue betweenpartialstakeholders , globalsurveillanceinthisrespectwillfail.In energysecurityandclimatechangemitigationacoordinatedmultilateralapproach istheonlywaytosucceed. FortheLACregion , energysecurityisnotjustamatterofstablesupplyat lowerprices.Othercomponentsarecrucial , suchasenvironmentalpreservation andsocialconditions.Thesedimensionsmustguideanyglobalagreement. Themain multilateralcommitmentwithregardtoclimatechangeislaid downinthe Kyoto Protocol , whichiscurrently being updated.Therecent ConferenceofthePartiestotheUNFrameworkConventiononClimateChange ( COP15 ) inCopenhagendidnotreachaglobalconsensus , buttherewillbe EnergySecurityandClimateChangeinRelationsbetweentheEU , Chinaand 3 85 LatinAmerica:MajorChallengesandAreasforInternationalCooperation anotheropportunityinCancún ( COP16 ) attheendofthisyear.However , and despitetheintentionsoftheEUandChinatoimplementpreventivemeasures withintheframeworkof “ Kyotoplus ”— thatis , toreducetheiremissionsfar beyondtheKyotogoals — thepossibilityofimplementinganeffectiveglobalpact seemsuncertain.Itisexpectedthat , duetothecurrentconfigurationoftheUS Congress , thelargestpollutercountryisunlikelytogetonboard. Tobereallyefficientinreducingtheimpactofglobalwarming , allthe parties — mainlytheEU , China , theUSandIndia — mustactinacoordinated way.Thisalsoentailsthatthelargereconomiesshouldmakeagreatereffortand smalleconomiesshouldbehelpedtoparticipateinthiscommonpursuit , finding innovativefundingmechanismstosupportaglobalgreendevelopmentmodel. Atthesametime , itisdesirabletocomplementandcoordinatetheKyoto agreementswithotherforums , suchastheAsiaPacificAssociationforClean DevelopmentandClimate , thesocalledCarbonPact , joinedbyChinain2008 , whichincludesalsotheUSandIndia.Althoughtherearerecognisedbodies , suchastheIntergovernmentalPanelonClimateChange , thatcanprovidereal guidance , itisalsoimportanttokeepinmindthatenergysecurityandclimate changearenotjustrestrictedtospecialisedforums.Thereisagreatdealthatcan bedoneincommercial , military , politicalandotherareas.Aclearexampleisthe needforastandardisedclassificationofbiofuelswithinthe WTO:currently , biodieselisconsideredanindustrialinputandbioethanolachemicalproduct , so onlybioethanolcanbeincludedinagriculturaltreaties. Besides , inordertoreachagreementonstrong multilateralinstruments , suchastheKyotoProtocol , previoussuccessfulexperiencesmustbeexamined. TheMontrealProtocol — aimedatpreservingtheozonelayer — isagoodexample ofmultilateralcoordinatedaction.Thisinstrument — datingback20yearsand nowincluding191 nations — isparticularlyinterestingasitencompassesa differentiatedapproach , givingdevelopingcountrieslongertoachievetargets.It alsoincludesaspecialfundforhelpingthesecountriesto meetProtocol objectives.Allmembersareobligedtomonitoradvancesthroughannualreports. Incaseoffailure , thisfollowupsystemallowsfortheestablishmentofspecial planstogetbackontrack. 8.犜狅狑犪狉犱狊犖犲狑 犠狅狉犾犱犚犲犵狌犾犪狋狅狉狔犕犲犮犺犪狀犻狊犿狊 Caringfortheplanetrequiresnewandrepresentativemultilateralbodies. Despitetheessentialroleof manyexistinginstances , many ofthem are constructed on the basis of twentiethcentury notions or have limited 3 86 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation representation , suchastheInternationalEnergyAgency ( IEA ), whichincludes onlyOECD members , andthe WorldEnergyCouncil , onlysevenofwhose93 memberscomefromtheLACregion. Inthiscontext , theInternationalRenewableEnergyAgency ( IRENA ), foundedinJanuary2009 , isagoodexampleofamodernmechanismincluding bothindustrialisedanddevelopingcountries.IRENAsvisionisfor “ a world wheremodernandeffectiverenewableenergyisaccessibleinallcountriesand becomesoneofthemajorenergysources ” .Infact , 148countriesandtheEU havesignedthestatuteoftheAgency , 17fromtheLACregion.However , importantcountries , suchasBrazilandChina , havenotyetsignedtheTreaty ( www.irena.org ) . IRENAwillincreasethecontributionofallformsofrenewableenergyto environmentalandclimateprotection , economicgrowthandsocialcohesion , includingpovertyalleviationandintergenerationalequity.Ittakesintoaccount domesticprioritiesandalsoaimsatimplementingenergyefficiencymeasures. ThisiswhattheLACregionisaskingfor , asbothobjectivescanhelptostemits vulnerability. Finally , thealleviationofglobalwarmingandenergysecurityareamatter ofintergenerationaljustice.Sincethedaysofplentifulandeasyenergyseemto beover , theinternationalcommunityshouldfindabalanced , mutuallyrespectful andinnovativewayofsecuringenergysupplyandpreservingtheenvironment. Thus , aprudentChina , EUandLACstrategicpartnershipforthefutureshould bebasedupontheseprinciplesandpriorities , notonlytobuildabetterworld , buttomaintainaworldtolivein. References CEPAL / ECLACandLuizHortaNogueira ( 2005 ), 犘犲狉狊狆犲犮狋犻狏犪狊犱犲狊狅狊狋犲狀犻犫犻犾犻犱犪犱犲狀犲狉犵é狋犻犮犪犲狀犾狅狊 狆犪í狊犲狊犱犲犾犪犆狅犿狌狀犻犱犪犱犃狀犱犻狀犪 , SerieRecursosNaturaleseInfraestructura , 83 , April , Santiago:CEPAL. CEPAL / ECLAC ( 2007 ), 犘狉狅犱狌犮犮犻ó狀犱犲犫犻狅犿犪狊犪狆犪狉犪犫犻狅犮狅犿犫狌狊狋犻犫犾犲狊犾í狇狌犻犱狅狊 : 犲犾狆狅狋犲狀犮犻犪犾 犱犲犃犿é狉犻犮犪犔犪狋犻狀犪狔犲犾犆犪狉犻犫犲 , SerieDesarrolloProductivo , 181 , Santiago:Unidadde DesarrolloAgrícola. CEPAL / ECLAC , HéctorPistonesi , GustavoNadal , VíctorBravoandDanielBouille ( 2008 ), 犜犺犲犆狅狀狋狉犻犫狌狋犻狅狀狅犳犅犻狅犳狌犲犾狊狋狅狋犺犲犛狌狊狋犪犻狀犪犫犻犾犻狋狔狅犳犇犲狏犲犾狅狆犿犲狀狋犻狀犔犪狋犻狀犃犿犲狉犻犮犪 犪狀犱狋犺犲犆犪狉犻犫犫犲犪狀 : 犈犾犲犿犲狀狋狊犳狅狉犉狅狉犿狌犾犪狋犻狀犵犘狌犫犾犻犮犘狅犾犻犮狔 , CEPAL / ECLACGTZ ProjectDocuments , December. CEPAL / ECLACandJoseluisSamaniego ( 2009 ), 犆犪犿犫犻狅犮犾犻犿狋犻犮狅狔犱犲狊犪狉狉狅犾犾狅犲狀犃犿é狉犻犮犪 犔犪狋犻狀犪狔犲犾犆犪狉犻犫犲 : 犝狀犪狉犲狊犲犪 , February , Santiago:CEPAL. CEPAL / ECLAC ( 2010 ), 犕犻犾犾犲狀狀犻狌犿犇犲狏犲犾狅狆犿犲狀狋犌狅犪犾狊 : 犃犱狏犪狀犮犲狊犻狀犈狀狏犻狉狅狀犿犲狀狋犪犾犾狔 EnergySecurityandClimateChangeinRelationsbetweentheEU , Chinaand 3 87 LatinAmerica:MajorChallengesandAreasforInternationalCooperation 犛狌狊狋犪犻狀犪犫犾犲犇犲狏犲犾狅狆犿犲狀狋犻狀犔犪狋犻狀犃犿犲狉犻犮犪犪狀犱狋犺犲犆犪狉犻犫犫犲犪狀 , Santiago:CEPAL. ChineseGovernment ( 2008 ), 犆犺犻狀犪狊犘狅犾犻犮狔犘犪狆犲狉狅狀犔犪狋犻狀犃犿犲狉犻犮犪犪狀犱狋犺犲犆犪狉犻犫犫犲犪狀 , 5 November , online:http: // english.gov.cn / . ChineseMinistryofCommerce ( 2008 ), 犆犺犻狀犪犎犪狊犪犛狋犲犪犱犻犾狔犇犲狏犲犾狅狆犻狀犵犚犲犾犪狋犻狅狀狊犺犻狆狑犻狋犺 狋犺犲犃犿犲狉犻犮犪狀犪狀犱 犗犮犲犪狀犻犪狀 犃狉犲犪犻狀狋犺犲30 犢犲犪狉狊狅犳 犚犲犳狅狉犿 犪狀犱 犗狆犲狀犻狀犵 犝狆 , 25 December , online:http: // english.mofcom.gov.cn / . Cruz , Germn ( 2008 ), 犈狀犲狉犵狔犛犲犮狌狉犻狋狔 , IADBPresentationattheSummitImplementation ReviewGroup ( SIRG ) IADB / OAS , SixthRegularMeetingof2008 , ElSalvador / Central America. EuropeanCommission ( 2006 ), 犃狀 犈犝 犛狋狉犪狋犲犵狔 犳狅狉 犅犻狅犳狌犲犾狊 , Communicationfrom the Commission , CommissionoftheEuropeanCommunities , COM ( 2006 ) 34final , 8February , Brussels. Fritz , Thomas ( 2008 ), 犃犵狉狅犲狀犲狉犵í犪犲狀 犃犿é狉犻犮犪 犔犪狋犻狀犪 . 犝狀犲狊狋狌犱犻狅犱犲犮犪狊狅狊犱犲犮狌犪狋狉狅 狆犪í狊犲狊 : 犅狉犪狊犻犾 , 犃狉犵犲狀狋犻狀犪 , 犘犪狉犪犵狌犪狔狔犆狅犾狅犿犫犻犪 , Brotfürdie Welt — FDCL , May , Berlin. Globaldata , 犌犾狅犫犪犾犅犻狅犱犻犲狊犲犾犕犪狉犽犲狋犃狀犪犾狔狊犻狊犪狀犱犉狅狉犲犮犪狊狋狊狋狅2020 , online:http: // www. globaldata.com / reportstore. IADB ( 2009 ), 犃 犅犾狌犲 犘狉犻狀狋 犳狅狉 犌狉犲犲狀 犈狀犲狉犵狔 犻狀 狋犺犲 犃犿犲狉犻犮犪狊 , InterAmerican DevelopmentBank. IICA ( 2010 ), 犃狋犾犪狊犱犲犾犪犪犵狉狅犲狀犲狉犵í犪狔犾狅狊犫犻狅犮狅犿犫狌狊狋犻犫犾犲狊犲狀犾犪狊犃犿é狉犻犮犪狊 : 犐犐犅犻狅犱犻犲狊犲犾 , SanJose:InstitutoInteramericanodeCooperaciónparalaAgricultura. MERCOSUR / CMC ( 2007 ), 犘狅犾í狋犻犮犪犱犲狆狉狅犿狅犮犻ó狀狔犮狅狅狆犲狉犪犮犻ó狀犲狀狆狉狅犱狌犮犮犻ó狀狔犮狅狀狊狌犿狅 狊狅狊狋犲狀犻犫犾犲狊犲狀犲犾犕犈犚犆犗犛犝犚 , 26December. OLADE ( 2008 ), 犈狀犲狉犵狔 犛狋犪狋犻狊狋犻犮狊 犚犲狆狅狉狋 2007 , Quito: Latin American Energy Organization. SGCAN ( 2008 ), 犈犾犮犪犿犫犻狅犮犾犻犿狋犻犮狅狀狅狋犻犲狀犲犳狉狅狀狋犲狉犪狊 . 犐犿狆犪犮狋狅犱犲犾犮犪犿犫犻狅犮犾犻犿狋犻犮狅犲狀犾犪 犆狅犿狌狀犻犱犪犱犃狀犱犻狀犪 , GeneralSecretariatoftheAndeanCommunity , May. SELA ( 2010 ), 犈狏狅犾狌犮犻ó狀狉犲犮犻犲狀狋犲犱犲犾犪狊狉犲犾犪犮犻狅狀犲狊犲犮狅狀ó犿犻犮犪狊犲狀狋狉犲犾犪犚犲狆ú犫犾犻犮犪犘狅狆狌犾犪狉 犆犺犻狀犪狔犃犿é狉犻犮犪犔犪狋犻狀犪狔犲犾犆犪狉犻犫犲 . 犕犲犮犪狀犻狊犿狅狊犻狀狊狋犻狋狌犮犻狅狀犪犾犲狊狔犱犲犮狅狅狆犲狉犪犮犻ó狀狆犪狉犪狊狌 犳狅狉狋犪犾犲犮犻犿犻犲狀狋狅 , LatinAmericanandCaribbeanEconomicSystem , SELA , October. Sohr , Raúl ( 2009 ), 犆犺犪狅狆犲狋狉ó犾犲狅 . 犈犾犿狌狀犱狅狔犾犪狊犲狀犲狉犵í犪狊犱犲犾犳狌狋狌狉狅 , Ed.Debate , Chile. UNIPCC United Nations , IntergovernmentalPanelonClimateChange ( 2007 ), 犐犘犆犆 犉狅狌狉狋犺犃狊狊犲狊狊犿犲狀狋犚犲狆狅狉狋 ( 犃犚 4 ) : 犆犾犻犿犪狋犲犆犺犪狀犵犲2007 , 犛狔狀狋犺犲狊犻狊犚犲狆狅狉狋 , November. WorldBank / JoséMolinas , RicardoPaesdeBarros , JaimeSaavedraand MarceloGiugale ( 2010 ), 犇狅狅狌狉犆犺犻犾犱狉犲狀犺犪狏犲犪犆犺犪狀犮犲 ? 犜犺犲2010 犎狌犿犪狀犗狆狆狅狉狋狌狀犻狋狔犚犲狆狅狉狋犳狅狉 犔犪狋犻狀犃犿犲狉犻犮犪狀犪狀犱狋犺犲犆犪狉犻犫犫犲犪狀 . WWC / FLACSO Woodrow Wilson International Center for Scholars and Facultad LatinoamericanadeCienciasSociales ( 2008 ), 犈狀犲狉犵狔犇犲狏犲犾狅狆犿犲狀狋犻狀犛狅狌狋犺犃犿犲狉犻犮犪 : 犆狅狀犳犾犻犮狋犪狀犱犆狅狅狆犲狉犪狋犻狅狀 , Washington:WWIC , LatinAmericanProgram. 犘犪狉狋犐犞 犜狉犻犾犪狋犲狉犪犾犚犲犾犪狋犻狅狀狊犪狀犱犛犮狅狆犲 犳狅狉犕狌犾狋犻犾犪狋犲狉犪犾犻狊犿 3 91 犆犺犪狆狋犲狉13 犃犖犲狑犔狅狅犽犪狋狋犺犲犜狉犻犪狀犵狌犾犪狋犻狅狀犫犲狋狑犲犲狀狋犺犲犈犝 , 犆犺犻狀犪犪狀犱犔犪狋犻狀犃犿犲狉犻犮犪 !"#$%&'"()* 1.犐狀狋狉狅犱狌犮狋犻狅狀 AccordingtoanEU document , inaworldfilledwithnewthreatsand opportunities , Europe , asanactorontheworldstage , needstoconsolidate relationswithitsclosestpartnersaroundtheworld , andoneofthemisLatin America.ForEurope , Latin Americaisastrategicpartner , whichsharesa commonhistoryandculture.Fewregionsintheworldoffersomanyreasonsto buildagenuineallianceasEuropeandLatin America ( EuropeanCommission 2006 ) . ForChina ,“ LatinAmericanandCaribbeancountriesareanimportantpart ofthedevelopingworldandamajorforceintheinternationalarena.Undernew circumstances , thedevelopmentofrelationsbetweenChinaandLatinAmerican andCaribbeancountriesisrepletewithnewopportunities ”( ChineseGovernment 2008 ) .ThatexplainswhyChinasrelationswithLatin Americahavebeen developingveryrapidlyoverthepastfewyears. UnliketheUnitedStates , whichhasbeenuneasyaboutChinasgrowing presenceintheWesternHemisphereinrecentyears , Europe , particularlySpain , wishestoofferChinaahelpinghandtofurtherdevelopitsrelationswithLatin America.Thischapterreviewsthetwosetsofbilateralrelationships:between theEUandLatin America , andbetweenChinaandLatin America.Italso comparesthetwosetsofrelationships.Finally , ittriestodeterminewhetherand howtheEU ( andSpain ) canhelpChinainthisregard. 2.犈犝犔犪狋犻狀犃犿犲狉犻犮犪狀犚犲犾犪狋犻狅狀狊 The UnitedStatesestablishedthesocalled Monroe Doctrinein1823 , 3 92 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation warningothercountries , particularlythe European powers , torefrainfrom expandingtheirinfluenceintheWesternHemisphere.Thedoctrineassertedthat theAmericancontinents “ arehenceforthnottobeconsideredassubjectfor futurecolonizationbyanyEuropeanpower ”( Smith1996:20 ) .Butinfact , the USwasnotpowerfulenoughinthenineteenthcenturytoenforcethedoctrine. Forinstance , FrancesetuptheempireofMaximilianin Mexicofrom1864to 1867.France even intended to name the continent of Latin America “ Francoamerica ” .GreatBritaindidnottake muchnoticeofthedoctrine.It continuedtoprovidemuchofthecapitalandtechnologyforLatinAmericainthe nineteenthcentury.Britishfirmsbuiltrailwaysandtelegraphandtelephone systems , investedinminingandestablishedmanufacturingplantsinsomeLatin Americancountries ( Hillman1997:158 ) . AftertheSecond World War , Europewasoccupied withitsowneconomic reconstructionandintegration.Consequently , itfailedtoattachmuchimportanceand urgencytothedevelopmentofitsrelationswithLatinAmerica. Thisbenignneglectstartedtodisappearinthe1970s.InFebruary1975 , the EuropeanCommunity ( EC ) andsomeAfrican , CaribbeanandPacific ( ACP ) countries signedtheFirstLoméConvention , whichcameintoforceinApril1976 , andwas designedtoprovideanew frameworkofcooperation betweenthethen European Community ( EC ) anddevelopingACPcountries , inparticularformerBritish , Dutch , BelgianandFrenchcolonies.TheECalsoconcludedafewnonpreferential , shortterm tradeagreementswithArgentina , Brazil , MexicoandUruguay ( Black1991:266 ) . However , economictiesbetweenEuropeandLatinAmericadidnotdevelop smoothly.TheCommonAgriculturalPolicyadoptedbytheECmadeithardfor LatinAmericasagriculturalproductstoenterEurope.Thiscouldexplainwhy Argentinaturned to the Soviet Union as a major buyer ofits wheat. Furthermore , theentryintotheECofPortugalandSpainin1986didnotrealise thehopesLatinAmericahadplacedinit. TheFalklands ( Malvinas ) WarbetweenArgentinaandGreatBritainin1982 putpressureonrelationsbetween Europeand Latin America.TheECstood alongsideGreatBritainandevenimposedeconomicsanctionsonArgentina.Most LatinAmericancountriessympathisedwithArgentina. Inthe1980s , conflictsin CentralAmericaprovided Europeand Latin Americawitharareopportunitytomoveclosertogether.CentralAmericascivil warswereoftenintheinternationalheadlines.AlongwiththeUnitedNations andtheOrganizationofAmericanStates , theECmadearemarkablecontribution tothepeaceprocessthere.Forinstance , itstronglysupportedtheeffortsmade bytheContadoracountries.In1984 , theSanJosédialoguebetweentheECand ANewLookattheTriangulationbetweentheEU , ChinaandLatinAmerica 3 93 theCentralAmericancountrieswaslaunched.Itsobjectivewastoseeksolutions tothearmedconflictsby meansofnegotiations.In1985 , theEUCentral AmericanCooperationAgreementwassigned. Enteringthe1990s , LatinAmericastartedtoundergoimportantpolitical , economicandsocialreformsandtransformations.Theregionsforeignpolicy alsomadeprogressbypursuingcloserrelationsnotonlywiththeUS , butalso withotherregionsoftheworld.TheEUacknowledgedthesepolicychangesand seizedtheseopportunitiestopromoteitsrelations with Latin America.Spain participatedactivelyintheregionsprivatisationcampaign. In1995 , theEUissuedacommunicationentitled “ European Union — Latin America:ThePresentSituationandProspectsforCloserPartnership:1996 2000 ”, whichexpresseditsinterestinstrengtheningthepartnershipbetweenthe twosides.Thedocumentacknowledgedthechangesthathadtakenplaceinboth regionsandatworldlevelduringthepastdecadeandhighlightedtheshared interestinfacingglobalandregionalchallenges.Italsostressedtheneedfor differentiatedapproachestoLatinAmericainaccordancewithspecificnational andsubregionalcircumstances. ThemostnotabledevelopmentinbilateralrelationsbetweenEuropeand LatinAmericawasthefirstEULatinAmericaSummitinRiodeJaneiro , Brazil , inJune1999.Theobjectiveofthesummitwastofosterpolitical , economicand culturalunderstandingbetweenthetworegionsinordertodevelopastrategic partnership.Inthepoliticalfield , itwasagreedthateffortswouldbemadeto reinforceinstitutionaldialoguebetweenthetworegions , preservedemocracy , promoteandprotecthumanrightsandfundamentalfreedomsandworktogether toaddressthreatstointernationalpeaceandsecurity.Intheeconomicfield , leadersfrombothsidesoftheAtlanticdeclaredthattheyweredeterminedto strengthenthemultilateraltradesystemandopenregionalismandtointensify economicrelationsbetweenthetworegions.Theiraimsincludedpromotingthe liberalisationoftradeasa meansofincreasingprosperityandcombatingthe destabilisingeffectsofvolatilefinancialflows , devotingparticularattention , supportandincentivestoproductiveinvestmentinsmallereconomies.Inthe cultural , educational , scientific , technological , socialandhumanfields , thetwo sidesalsoexpressedaninterestinpromotingtherehabilitationandpreservation oftheenormousculturalheritageinbothregions , facilitatinguniversalaccessto educationandencouragingculturaldiversity ( EULatinAmericaSummit1999 ) . Atthissummit , it wasannouncedthatthe EU and Latin Americahad agreedtoestablishastrategicpartnership.Thispartnershipwastobebuiltona commonculturalinheritance , aswellassharedvalues , andencompassedclose 3 94 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation cooperationinthefields ofpolitics , economics , cultureand scienceand technology.Thebiregionalpartnershiphasbeenfurtherdevelopedandrefinedat thelaterEULatinAmericasummits. Thelatestsummit , thesixth , tookplaceon18 May2010 , in Madrid , Spain , withthetheme “ Towardsa new phaseofbiregionalassociation: innovationandtechnologyforsustainabledevelopmentandsocialinclusion ” .In hisopeningspeech , SpanishPrimeMinisterJoseLuisRodriguezZapaterosaid thatprogressinrelationsbetweenbothcontinentsoverthepastdecadehave madethem “ globalpartnersfacingglobalchallenges ” . On30September2009 , theEUissuedapressreleaseentitled “ EULatin America:10 YearsofStrategicPartnership ”, whichofferedasatisfactory reviewofthebilateralrelationship.Itsaid ,“ Overthepastdecade , relations betweentheEUandLatinAmericaandtheCaribbeanhavebeenconsiderably strengthened with thesupportandfirm commitment particularly ofthe EuropeanCommission. ” TheEU wassatisfiedtoseethat , eversincethefirst SummitinRiodeJaneiroin1999 , thetworegionshavecooperatedonajoint agendainanumberofbiregional , bilateral , multilateralandsectorspecific forumsonissuessuchasresearch , scienceandtechnologyandsocialcohesion. Overthepasttenyears , theEuropeanCommissionhasfinancedmorethan450 projectsand programmes , amountingto morethan EUR 3 billion ( EU 2009a ) . Apartfrompoliticaltalks , theEUandLatinAmericahavealsoachieved winwin outcomes on some important economic issues. For instance , ambassadorsfromtheEU andLatin Americancountriesmeetingatthe World TradeOrganization ( WTO ) inGenevaon15December2009agreedtoenda15 yeardisputeoverEUbananaimports.Aspartofthedeal , theEU willcutits importtariffonbananasfromthecurrentrateofEUR176pertonnetoEUR114 pertonnein2017 , attheearliest ; andmakethebiggestcutfirst — theEU will firstcutitstariffbyEUR28pertonnetoEUR148pertonne , onceallparties signthedeal.Inreturn , LatinAmericancountrieswillnotdemandfurthercuts , anddropcasesagainsttheEUattheWTO , someofwhichdatebackasfaras 1993 ( EU2009b ) . Commentingontheagreement , European Trade Commissioner Benita FerreroWaldnersaid: “ todayisaverygooddayforbananaproducersworldwide andforconsumers , aswefinallyseethe ‘ longesttradedisputeinhistory solved.Afteryearsoftediousnegotiationsthedealreached willprovidean importantpushforprogressintheDohaRoundtalksandformultilateraltrading systemsingeneral. ”( EU2009b ) ANewLookattheTriangulationbetweentheEU , ChinaandLatinAmerica 3 95 3.犆犺犻狀犪犔犪狋犻狀犃犿犲狉犻犮犪狀犚犲犾犪狋犻狅狀狊 NomatterwhofirstlandedintheAmericas , provencontactsbetweenChina andLatinAmericacanbedatedbacktothe1570s , whenSinoLatinAmerican tradestartedtoflourishacrossthePacific. 1 Via Manila , Chinaexportedsilk , porcelainandcottonyarntoMexicoandPeru , inexchangeforsilvercoinsand otheritems.Inthemiddleofthenineteenthcentury , peasantsfromsouthern ChinawenttoSouthAmericaandtheCaribbeanas “ contractlabourers ” working inminesandplantations. AfterthePeoplesRepublicofChinawasfoundedin1949 , afew Latin Americancountriessoughtdiplomaticrelations.DuetoUSopposition , however , theireffortsdidnotmaterialise. ThevictoryoftheCubanRevolutionin1959attractedimmediatemoraland politicalsupportfrom China.CubawasthefirstLatinAmericancountryto recognisethenewChina.ChinawasthereforereadytosupportCubainreturn. InSeptember1960 , ChinesePremierZhouEnlaitoldFidelCastro: “ ifnecessary , ChinawillfurnishallnecessaryassistancetotheCubanpeopleintheirfightfor freedom. ”( Zhang1995:91 ) . On15December1970 , ChilebecamethefirstSouthAmericancountryto establishdiplomatictieswithChina.AfterUSPresidentNixonmadehishistoric visittoBeijingin1972 , manyLatinAmericancountriesstartedtochangetheir attitudestowardsChinaandevenexpressedtheirinterestindevelopingrelations withit.The1970switnessedtheestablishmentofdiplomaticrelationsbetween ChinaandmorethantenLatinAmericancountries. UndertheleadershipofDengXiaoping , Chinastartedtoimplementreform andopendoorpoliciesin1978.TheimageofChinainLatinAmericachanged veryquickly.Inthe1980sand1990s , anotherten Latin Americancountries establisheddiplomaticrelations with China.Cooperationandcontactsinthe economic , politicalandculturalareasproceededsteadily. In November2004 , ChinesePresident HuJintaovisited Latin America , followedbyVicePresidentZengQinghonginearly2005 , onlytwomonthslater. Thiskindoffrequentvisithappenedagainduring2008and2009.PresidentHu JintaowenttoLatinAmericainNovember2008andVicePresidentXiJinping followedinearly2009.Incontemporaryinternationalrelations , noothercountry haseversenttopleaderstoLatinAmericawithsuchahighfrequency. Between2001and2008 , bilateraltradebetweenChinaandLatinAmerica increasedalmosttenfold.In November2005 , China signed afreetrade agreement ( FTA ) withChile.Asamatteroffact , thefirstcountrywithwhich 3 96 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation ChinareachedanFTAwasChile.InNovember2008 , ChinaandPeruconcluded theirFTAnegotiations.Inearly2009 , ChinaandCostaRicaofficiallystarted theirfirstFTAtalks. After15 years of efforts , Chinas entranceinto the InterAmerican DevelopmentBank ( IDB ) wasapprovedbytheothermembercountriesina votingprocesswhichendedon15October2008.Inearly2009 , Chinaformally joinedtheIDB , thusbecomingtheBanks48th membernation , contributing USD350milliontovariousprogrammes.Chinapurchased184shares , or0.004 percentoftheIDBsordinarycapital , whichbecameavailableafterthebreakup ofYugoslavia. ChinaandBraziljointlylaunchedthreeremotesensingsatellitesin1999 , 2003and2007 , respectively.Thiscooperation hasbeenrecognisedasan outstandingexample of SouthSouth cooperationin the hightech field.In October2008 , ChinasuccessfullysentaVenezuelantelecommunicationsatellite into space. The satellite , produced by Chinas Aerospace Science and TechnologyCorporationwithadesignedlongevityof15years , isVenezuelas firsttelecom satelliteandisusedinbroadcasting , teleeducationand medical services. InOctober2004 , a95memberunitofofficersfromChinasriotpoliceforce wassenttoHaititojointheUnitedNationspeacekeepingoperationthere.This isthefirsttimeChinahasincludedmembersofitsriotpoliceforceinoverseas peacekeepingduties.Itstask wastosupporttheinternationalpeacekeeping presenceandlocalpolicetoenforcelaws , dealwith masspublicsecurity emergencies , serveasguardsonimportantpublicoccasionsandorganiseand trainalocalriotpolice.Thistaskwasaccomplishedsuccessfully.InJanuary 2005 , theChinesepeacekeeperswereawardeda UN peace medalfortheir outstandingperformanceinthecrisistorncountry. Therearealsonongovernmentalorpeopletopeoplecontactsandexchanges betweenChinaandLatinAmerica.Morethanonehundredprovincesandcities havebeentwinned. InNovember2008 , Chinapublishedapolicypaperon Latin America , outlining35areasofcooperation.ItexpressedforthefirsttimetheChinese Governmentsdesireto “ viewitsrelationswithLatinAmericaandtheCaribbean instrategicterms ” .ItalsoreiteratedtheChineseGovernmentscommitmentto theoneChinapolicyanddeclaresitthepoliticalbasisfortheestablishmentand developmentofrelationsbetween ChinaandLatin AmericanandCaribbean countriesandregionalorganisations. 2 ANewLookattheTriangulationbetweentheEU , ChinaandLatinAmerica 3 97 4.犆狅犿狆犪狉犻狀犵狋犺犲犜狑狅犚犲犾犪狋犻狅狀狊犺犻狆狊 AcomparisonofrelationsbetweentheEUandLatinAmericaandbetween ChinaandLatinAmericaleadstothefollowingconclusions: ( 1 ) Inhistorical , politicalandculturalterms , Europehascloserrelations andaffinitieswithLatinAmericathanChinadoes. ( 2 ) EuropedevelopeditsrelationswithLatinAmericamuchearlierthan Chinadid.Asamatteroffact , ChinastartedtomovetowardsLatinAmerica onlyafewyearsago.TheChinaLatinAmericarelationshipisstillinitsinitial stages , whereastheEULatinAmericarelationshipismuchmoremature. ( 3 ) EuropesrelationswithLatinAmericaaremoreinstitutionalisedthan Chinas.ApartfromtheEULatinAmericasummit , thereistheIberoAmerican summitandotherdialoguemechanisms.ThechancesofconveningaChinaLatin Americansummitareveryslim.Moreover , theEUhaspublishedmorepolicy documentsonLatinAmericathanChina. ( 4 ) ChinaLatinAmericarelationsareovershadowedbytheUSfactor.The USissomewhatconcerned bythe presence of Chinainits backyard.US CongressmanDanBurtonsaid: “ IbelieveChinasrisingeconomic , politicaland militaryinfluenceinthe WesternHemisphereposesseriouschallengestothe UnitedStatesintheyearsahead...Ibelieveweshouldbecautiousandviewthe riseofChinesepowerassomethingtobecounterbalancedorcontained , and perhapsgosofarastoconsiderChinasactionsin Latin Americaasthe movementofahegemonicpowerintoourHemisphere. ”( Burton2005 ) Europe LatinAmericanrelationsarenotamajorissuefortheUS. ( 5 ) Europeseconomicties with Latin Americaare muchcloserthan Chinas.In2008 , EULatinAmericantradewasworthEUR189billion , while ChineseLatinAmericantradewasworthUSD145billion , althoughithasbeen growingrapidlyoverthepastfew years.In2007 , thetotalstockofEU investmentinLatinAmericastoodatEUR228billion , whileforChinaitwas onlyUSD25billion ( ChineseMinistryofCommerce2010 ) . ( 6 ) Europehasestablishedastrategicpartnership with Latin America , whereasChinahassetupsuchpartnershipswithonlyafew Latin American countries:Brazil ( 1993 ), Mexico ( 2003 ), Argentina ( 2004 ) and Peru ( 2010 ) . ( 7 ) ThepoliticaldimensionoftheEULatinAmericanrelationshipdiffers fromthatbetweenChinaandLatinAmerica.ItseemsthatEuropeismuchmore concernedaboutLatinAmericasdemocracy , humanrights , ruleoflawandso on , whileChinaemphasisespoliticalconsensusonsuchissuesasThird World 3 98 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation unity , amultipolarworldorder , oppositiontohegemonismandpowerpolitics andsoon. ( 8 ) Duetohistoricalandculturalreasons , mutualunderstandingbetween EuropeandLatinAmericaismuchdeeperthanthatbetweenChinaandLatin America.ChinadoesnotknowmuchaboutLatinAmericaandviceversa. ( 9 ) BothEuropeandChinaseeLatinAmericaasanimportantsourceof naturalresourcesanda marketof560 millionconsumers.AnimportantEU documentstatesthat “ theregionhasconsiderablenaturalresources , especially miningand energyresources , as wellasexceptionalenvironmental wealth , notablythe Amazonianforest withitshugebiologicaldiversity ”( European Commission2002 ) .InitspolicypaperonLatinAmerica , Chinaalsoexpressed aninterestinopeninguptheregionsresources. ( 10 ) BothEuropeandChinaattachimportancetothesocialproblemsin LatinAmerica.ChinaspolicypaperonLatinAmericadeclared: “ TheChinese GovernmentwillstrengthenexchangesandcooperationwithLatinAmericanand Caribbeancountriesinreducingpovertyandnarrowingthegapbetweentherich andthepoor , andwillencouragepovertyalleviationinstitutionsonbothsidesto establishbroadcooperativerelationstoshareinformationandconductjoint research ”( ChineseGovernment2008 ) .ForEurope , promotingsocialcohesion — thatis , thefightagainstpoverty , inequalityandexclusion — isoneoftheEUs strategicpolicyobjectives.Moreover , thenotionofsocialcohesionhasbeen acceptedbytheUNEconomicCommissionforLatinAmericaandtheCaribbean ( ECLAC ) asaguidingprinciplefortheregionssocialdevelopmentstrategy ( ECLAC2007 ) . 5.犆犪狀狋犺犲犈犝 / 犛狆犪犻狀犺犲犾狆犆犺犻狀犪狋狅犇犲狏犲犾狅狆犻狋狊犚犲犾犪狋犻狅狀狊狑犻狋犺犔犪狋犻狀犃犿犲狉犻犮犪 ? The USis worriedaboutthecloserrelationsbetween Chinaand Latin America.Europe , ontheotherhand , isnotworriedatall.Spainevenwishesto offerChinaahelpinghandtopromoteitsrelationswithLatinAmerica. TriangulationbetweenSpain , LatinAmericaandAsiaPacificisoneofthe initiativesoftheSpanishgovernmentsAsiaPacificFrameworkPlan20002002 ( Bustelo2002 ) .InJuly2005 , visitingSpanishPrimeMinisterZapaterosaidto hisChinesehostthatSpainwouldbereadytoserveasa “ bridge ” forChinato developitsrelationswithLatinAmerica.WhenPresidentHuJintaovisitedSpain inNovember2005 , ChinaandSpainissuedajointcommuniquédeclaringthat bothsides had expressed a willingness to cooperate around the globe , particularlyinLatinAmerica. Undoubtedly , Spainisinagoodpositiontoplaytheroleofa “ bridge ” for ANewLookattheTriangulationbetweentheEU , ChinaandLatinAmerica 3 99 Chinaand Latin America.Its advantagesinclude historicalconnections , language , culturalsimilaritiesandastrongeconomicpresenceinLatinAmerica. BeforeChinasentitstradedelegationtoEuropeattheendofFebruary 2009 , theSpanishAmbassadortoBeijing , CarlosBlascoVilla , toldtheChinese newspaper 21狊狋犆犲狀狋狌狉狔犅狌狊犻狀犲狊狊犎犲狉犪犾犱 thatSpainwouldbehappytoseeChina investinLatinAmerica.WhenhewasaskedwhethertheinterestsofChinaand SpainwerebeginningtoconflictsinceChinasrelationswithLatinAmericahad startedtobecomecloser , Blascosaid: “ Justtheopposite.Ithinkcloserrelations betweenChinaandLatinAmericawouldcontributetothecooperationbetween themandencouragefurtherinvestmentinLatinAmerica. ” Theambassadoralso saidthat “ SpainwouldproposethatLatinAmericanotrelyontheUSsomuch , noronthe EU ” .Heeven offered oneexample oftriangularcooperation: “ HuaweiandZhongxinhavesoldequipmenttoSpanishcompanieswhichusethe ChineseproductstobuildtelecomtowersinLatinAmerica ”( Yuan2009 ) .The questionnowiswhetherandhowtheEU / SpaincanhelpChinatodevelopits relationswithLatinAmerica. Toanswerthisquestion , wemusttrytounderstandwhatChinawantstodo inand / orwithLatin America.AccordingtoChinaspolicypaperonLatin Americathereare35areasofcooperation.Insomeareas , itislikelythatthe EU / Spaincanhelp ; inothers , itisunlikely. 犜犪犫犾犲1 犃狉犲犪狊狅犳犘狅狊狊犻犫犾犲犆狅狅狆犲狉犪狋犻狅狀犫犲狋狑犲犲狀犆犺犻狀犪犪狀犱 犔犪狋犻狀犃犿犲狉犻犮犪犻狀狑犺犻犮犺狋犺犲犈犝 / 犛狆犪犻狀犆狅狌犾犱犘狉狅狏犻犱犲犃狊狊犻狊狋犪狀犮犲 Areasofcooperation Possibility Reason Exchangesofhighlevelvisits Thearrangementofsuchhighlevel Low visitsinvolves diplomaticsecrecy andotherissuesthatneednohelp fromanythirdparty Exchangesbetweenlegislatures Chinahasnodifficultycontacting Low legislative bodies in Latin Americadirectly TheCommunistPartyofChinahas Exchangesbetweenpoliticalparties Low itsown approachtoestablishing workingrelationswithpoliticalpar tiesinforeigncountries Consultationmechanisms Thingswouldbecomemorecompli Low catedifathirdpartywasinvolved insuchbilateralmechanisms 4 00 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation Areasofcooperation Cooperationininternational affairs , suchasUNreforms Localgovernmentexchanges Trade Investmentcooperation Financialcooperation Agriculturalcooperation , suchas technicaltraining Industrialcooperation Possibility High High High High High High High Reason Internationalaffairshavebecome moreandmoreglobalisedand multilateraldialoguesand consultationsareneeded , particularlywhendeadlockoccurs Theseexchangesmainlyinclude cooperationineconomicandother areas , aswellasestablishingtwin provincesortwincities.TheEU / Spaincanofferexpertisein thisregard TheEU / Spainhasawell establishedmarketingnetwork , whichisveryvaluableforChinese businessmen , whodonotknow muchaboutthemarket conditionsthere TheChinesegovernmenthas designeda “ goingglobal ” strategy , whichencouragesdirect investmentsinLatinAmericaand otherpartsoftheworld.The EU / SpaincanhelpChinaby findinginvestmentopportunities orevenestablishingjoint investmentfunds Chinesebankswanttoopenupthe marketinLatinAmericaand Spanishbankshaveastrong presencethere TheEU / Spainhasboth sophisticatedtechnologyandmore experienceinthisarea EU / Spainhasbothsophisticated technologyandmoreexperiencein thisarea ANewLookattheTriangulationbetweentheEU , ChinaandLatinAmerica 4 01 Areasofcooperation Infrastructureconstruction Resourcesandenergycooperation Customscooperation Cooperationonqualityinspection Tourismcooperation Debtreductionandcancellation Economicandtechnicalassistance Multilateralcooperationin multilateraltradeandfinancial institutionsandregimes Chamberofcommercecooperation Culturalandsportsexchanges Cooperationinscience , technology andeducation Possibility High Medium Low Low High Low High High High High High Reason ChinaandtheEU / Spaincan cooperatetoinvestinLatin Americaspoorinfrastructure Therearemanyopportunitiesfor cooperationinthisarea.Butboth ChinaandtheEU / Spainwishto exploitLatinAmericasresources andenergy.Therefore , competitionmightemergein somecases Itinvolvesnationalsovereigntyand legalmatters Itinvolvespoliciesonnontariff barriersandsometimes nationalsovereignty SomanyChinesewishtovisit LatinAmerica , butthetourist industryinChinaislessdeveloped thanthatoftheEU / Spain Chinaasacreditorwouldmakeits owndecisionsonthismatter TheEU / Spainhasaccumulated muchexperienceinthisarea Globalissuesareinvolvedinthis area , andmultilateralcoordination andconsultationisneeded Cooperationwithathirdparty mightfacilitateexchangesof marketinformation TheEU / Spainisverygoodat promotingculturalandsports exchangeswithLatinAmerica TheEU / Spainhasadvantagesin thisareaandhasaccumulated muchexperienceofhowto cooperatewithLatin Americancountries 4 02 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation Areasofcooperation Cooperationinmedicaland healthcare Consularcooperationand personnelexchanges Mediacooperation Peopletopeopleexchanges Cooperationin environmentalprotection Cooperationincombating climatechange Cooperationinhumanresources andsocialsecurity Disasterreduction , disasterrelief andhumanitarianassistance Cooperationinpovertyalleviation Militaryexchangesandcooperation Cooperationinjudicialand policeaffairs Nontraditionalsecurityissues Possibility High Low Low High High High High High High Low Low Low Reason Collectiveactioncanachieve betterresults Itofteninvolves nationalsovereignty Chinahasitsownapproachto themedia Gettingathirdpartyinvolvedcan facilitatemutualunderstanding Thisissueneedsglobalaction Thisissueinvolvesmultilateral negotiationsandcoordination TheEU / Spaincanofferits expertise , experiencesandlessons forChinaandLatinAmerica Multilateralactioncanbehelpful towardsthisend Combatingpovertyalsoneeds multilateralactions Itinvolvesmilitarysecretsand nationalsovereignty Thisisasensitivearea Someissuesrequireglobalaction , butsomeinvolve nationalsovereignty Inconclusion , theEU / Spainmightbeabletoactasa “ bridge ” forChinato developitsrelationswithLatinAmericainsomeareas , butbynomeansall. Generallyspeaking , itisintheeconomic , culturalandsocialareasthattheEU / SpaincanbeparticularlyhelpfultoChina. 6.犆狅狀犮犾狌犱犻狀犵犚犲犿犪狉犽狊 Inaglobalperspective , theworldismovingincreasinglyinthedirectionof multilateralism.Asaresult , Chinasrelations with Latin Americaareoften ANewLookattheTriangulationbetweentheEU , ChinaandLatinAmerica 4 03 influencedbytrilateralorevenmultilateralinteractions.WhileEuropetendsto haveacriticalorsometimesevennegativeviewofChinaspresenceinAfrica , it wishestoofferahelpinghandtostrengthenbilateralrelationsbetweenChina andLatinAmerica.Thisisaverypositiveandconstructiveattitude , andthe threepartiesneedtoworktogetherforbettertriangulation. FromtheChinesestandpoint , whetherandhowtheEU / Spaincanhelp ChinadevelopitsrelationswithLatinAmericadependsonthefutureprospectsof ChinasrelationswithbothLatinAmericaandtheEU / Spain.Itiscertainthat , ifChinasrelations with Latin Americadevelopfurther , theprospectsofthe EU / Spainplayingtheroleofa “ bridge ” betweenChinaandLatinAmericawill bebrighter.Duetohistoricalandculturalfactors , Europehasmaintainedclose relationswithLatinAmerica.ChinasrelationswithLatinAmericahavebegun todeveloponlyrecently.Europecouldserveasa modelforChinainsome respects. UnliketheUnitedStates , whichviewsChinaspresenceinLatinAmericaas athreattoits “ backyard ”, theEU / Spainwishestoplaytheroleofa “ bridge ” thatcanhelpChinatodevelopitsrelationswithLatinAmerica.Thisbenign intentioniswelcomeandconstructive.However , giventhedifferencesbetween Latin Americanrelations with Chinaand with Europe , respectively , itsrole shouldnotbeexaggerated.Insomeareas , a “ bridge ” wouldbeuseful , butin otherareas — forexample , touchingonnationalsovereigntyandothersensitive issues — itisunlikelyandmayevencreate “ transactioncosts ” . Notes 1.Asearlyas1761 , theFrenchsinologistDeGiognesproposedthattheNew Worldwas discoverednotbyColumbus , butbytheChinese.Chinesescholarslaterfoundthat , as earlyasinthefifthcentury , aChinesemonk ( ormaster ) namedHuiShen ( 慧深 ) arrived inwhatiscalled Mexicotoday , thencalledFusang ( 扶 桑 ) inChinese.Britishauthor GavinMenziessaidinhis 1421牶犜犺犲犢犲犪狉犆犺犻狀犪犇犻狊犮狅狏犲狉犲犱犃犿犲狉犻犮犪 ( 2003 ) thatthe ancientChinesesailor , ZhengHe ( 郑和 ),“ discovered ” theAmericas70yearsearlierthan Columbus. 2.Twentythreecountries , including12in Latin America , still maintain “ diplomatic relations ” withTaiwan. References Black , JanKnippers ( ed. )( 1991 ), 犔犪狋犻狀犃犿犲狉犻犮犪牶犐狋狊犘狉狅犫犾犲犿狊犪狀犱犐狋狊犘狉狅犿犻狊犲 , Boulder: WestviewPress. Burton , Dan ( 2005 ), 犆犺犻狀犪狊犐狀犳犾狌犲狀犮犲犻狀狋犺犲犠犲狊狋犲狉狀犎犲犿犻狊狆犺犲狉犲 , 犗狆犲狀犻狀犵犛狋犪狋犲犿犲狀狋犪狋 狋犺犲犛狌犫犮狅犿犿犻狋狋犲犲狅狀狋犺犲犠犲狊狋犲狉狀犎犲犿犻狊狆犺犲狉犲犆狅犿犿犻狋狋犲犲狅狀犐狀狋犲狉狀犪狋犻狅狀犪犾犚犲犾犪狋犻狅狀狊 , 6April , 4 04 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation online:http: // www.internationalrelations.house.gov / archives / 109 / bur040605.pdf. Bustelo , Pablo ( 2002 ), 犘狉狅狊狆犲犮狋狊犳狅狉犛狆犪犻狀犔犪狋犻狀犃犿犲狉犻犮犪犃狊犻犪犘犪犮犻犳犻犮犜狉犻犪狀犵狌犾犪狋犻狅狀 , online: http: // www.realinstitutoelcano.org / wps / portal / rielcano _ eng / Content ? WCM _ GLOBAL _ CONTEXT= / elcano / elcano _ in / zonas _ in / latin+america / ari+1232002. ChineseGovernment ( 2008 ), 犆犺犻狀犪狊犘狅犾犻犮狔 犘犪狆犲狉狅狀 犔犪狋犻狀 犃犿犲狉犻犮犪犪狀犱狋犺犲犆犪狉犻犫犫犲犪狀 , 5November , online: http: // www.chinadaily.com.cn / china / 200811 / 06 / content _ 7179488.htm. ChineseMinistryofCommerce ( 2010 ), 犐犿狆狅狉狋狊犪狀犱 犈狓狆狅狉狋狊 , online:http: // english. mofcom.gov.cn / statistic / statistic.html. ECLAC ( 2007 ), 犛狅犮犻犪犾犆狅犺犲狊犻狅狀牶犐狀犮犾狌狊犻狅狀犪狀犱犪犛犲狀狊犲狅犳犅犲犾狅狀犵犻狀犵犻狀犔犪狋犻狀犃犿犲狉犻犮犪犪狀犱 狋犺犲犆犪狉犻犫犫犲犪狀 , May , SantiagodeChile. EU ( 2009a ), 犈犝犔犪狋犻狀犃犿犲狉犻犮犪牶10狔犲犪狉狊狅犳犛狋狉犪狋犲犵犻犮犘犪狉狋狀犲狉狊犺犻狆 , online:http: // europa.eu / rapid / pressReleasesAction.do ? reference = MEMO / 09 / 426&format = HTML&aged=0&language=EN&guiLanguage=en. EU ( 2009b ), 犈狀犱犻狀犵狋犺犲犔狅狀犵犲狊狋犜狉犪犱犲犇犻狊狆狌狋犲犻狀犎犻狊狋狅狉狔牶犈犝犐狀犻狋犻犪犾狊犇犲犪犾狅狀犅犪狀犪狀犪狊 狑犻狋犺 犔犪狋犻狀 犃犿犲狉犻犮犪狀 犆狅狌狀狋狉犻犲狊 , December , online: http: // europa.eu / rapid / pressReleasesAction.do ? reference=IP / 09 / 1938. EULatinAmericaSummit ( 1999 ), 犜犺犲犚犻狅犛狌犿犿犻狋 , online:http: // ec.europa.eu / external _ relations / lac / rio / rio _ 1999 _ en.pdf. EuropeanCommission ( 2002 ), 犔犪狋犻狀犃犿犲狉犻犮犪狀犚犲犵犻狅狀犪犾犛狋狉犪狋犲犵狔犇狅犮狌犿犲狀狋牶20022006 犘狉狅犵狉犪犿犿犻狀犵 , April , online:http: // ec.europa.eu / external _ relations / la / rsp / 02 _ 06 _ en.pdf. EuropeanCommission ( 2006 ), 犛狋狉狅狀犵犲狉犘犪狉狋狀犲狉狊犺犻狆犫犲狋狑犲犲狀狋犺犲犈狌狉狅狆犲犪狀犝狀犻狅狀犪狀犱犔犪狋犻狀 犃犿犲狉犻犮犪牶犆狅犿犿狌狀犻犮犪狋犻狅狀 犳狉狅犿狋犺犲犆狅犿犿犻狊狊犻狅狀狋狅狋犺犲犆狅狌狀犮犻犾犪狀犱狋犺犲 犈狌狉狅狆犲犪狀 犘犪狉犾犻犪犿犲狀狋 , online:http: // ec.europa.eu / external _ relations / la / docs / com05 _ 636 _ en.pdf. Hillman , RichardS. ( ed. )( 1997 ), 犝狀犱犲狉狊狋犪狀犱犻狀犵犆狅狀狋犲犿狆狅狉犪狉狔犔犪狋犻狀犃犿犲狉犻犮犪 , Boulder: LynneRiennerPublishers. Smith , PeterH. ( 1996 ), 犜犪犾狅狀狊狅犳狋犺犲犈犪犵犾犲牶犇狔狀犪犿犻犮狊狅犳犝犛犔犪狋犻狀犃犿犲狉犻犮犪狀犚犲犾犪狋犻狅狀狊 , NewYork:OxfordUniversityPress. Yuan , Xue ( 2009 ), 犛狆犪狀犻狊犺犃犿犫犪狊狊犪犱狅狉狋狅犆犺犻狀犪 犠犲犾犮狅犿犲狊犆犺犻狀犲狊犲犐狀狏犲狊狋犿犲狀狋犻狀犔犪狋犻狀 犃犿犲狉犻犮犪 , online:http: // finance.jrj.com.cn / people / 2009 / 02 / 1100553536558.shtml. Zhang , Guang ( 1995 ), 犣犺狅狀犵犵狌狅犱犲狑犪犻犼犻犪狅狕犺犲狀犵犮犲 ( 犆犺犻狀犪狊犳狅狉犲犻犵狀狆狅犾犻犮犻犲狊 ), Beijing: ShijieZhishiChubanshe ( WorldAffairsPress ) . 4 05 犆犺犪狆狋犲狉14 犜狉犻犾犪狋犲狉犪犾犚犲犾犪狋犻狅狀狊犫犲狋狑犲犲狀犆犺犻狀犪 , 狋犺犲犈犝犪狀犱  犔犪狋犻狀犃犿犲狉犻犮犪牶犔犻狋狋犾犲犈狓狆犲狉犻犲狀犮犲 , 犅狌狋犅犻犵犘狅狋犲狀狋犻犪犾 +#,-.)/0 1.犐狀狋狉狅犱狌犮狋犻狅狀 Inrecentyears , ourchallengeshavebecomeglobalandthedestiniesof nationshavebecomedeeplyinterconnected.Nomatterwhereintheworldwe live , wearetouchedbythesuccessesandfailuresoftodaysglobalorder. Nevertheless , responsestoglobalproblemsremainverydifferent , notonlyasa resultofcompetinginterests , butalso — andlargely — becauseculturaldifference isthelensthroughwhichweseetheseglobalchallenges.Culturaldiversityisnot necessarilyasource ofconflict.Crossculturalencountersoften bring about creativechange.Iseemorechancesforissuebasedandflexiblecoalitionsamong developingandemergingcountriesthanthesomewhatideologicalNorthSouth confrontationsofthepast.Collaborationacrossbordersisgrowingprimarilyin thearea of business and economic activity.Collaborative networks for innovation , productionanddistributionareemergingasthesinglemostpowerful shaperoftheglobaleconomy. Trustis an essentialcurrency ofsocialcollaboration.Our successin addressingtheglobalchallengesofeconomicprosperity , politicalrelationsand socialpeaceisafunctionofthedegreeoftrustthatnationsandculturesareable tosustaininternationally.Dialoguecandemystify , beittherealimpactof bioethanolproductioninBrazilontheenvironmentorfoodsecurityorthereal impactoftheEuropeancommonagriculturalpolicyonglobaltrade.Dialogue thusbuildsknowledgeoftheunfamiliar , andseeksoutareasofcommonground  Theviewsexpressedinthisarticlearethoseoftheauthorandshouldnotinanywaybeconsidered toexpressanofficialpositionoftheCounciloftheEuropeanUnionoranyofitsofficers. 4 06 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation anchoredinavisionofacommonfuturegroundedinidealsofequalityand respect. Wehavelittleexperienceoftriangularcooperationand , attheprojectlevel , whatwehaveisnotencouraging.However , thisisnoreasonnottoconsiderits potential — quitethecontrary.Trilateralcooperation , notablyonglobalissues , ispossiblewhenpartnershavetheweight , butalsothewillingnessandthe meanstoacttogether.Weightneednottobeamatterofsheersize ; itcanalso haveamoraldimensionthatwinsothersover.Trilateralcooperation makes sensewhenothersregardthepromotionofissuesorvaluesbycoreactorsas persuasiveor , usuallyatprojectlevel , whentrilateralcooperation makesit possibletoreducepoliticalorrealcoststhroughtheuseofthecomparative advantagesofeachactor. Suchcooperationcantakeplaceatvariouslevelsandwithvaryingscopeand intensity:from exchangesofviews , dialogue , experiencesharingand best practicestosectoraldialogue , internationalcoordination , jointpromotionand , finally , jointeffortsonnormsettingorcreatingagloballyrepresentative , active andefficientinternationalinstitutionalarchitecturewithmorelegitimacy.The venuesareUNforumsinNew York , GenevaandVienna , butinternational conferencesandmissionsarealsoimportant. As Henry Kissingerpointed out , the “ very unsettled nature ofthe internationalsystemgeneratesauniqueopportunityforcreativediplomacy.The alternativetoanewinternationalorderischaos ” .Chinasroleiscrucial , asare thoseofotherpartnersontheirwaytobecomingmajorpowers.Thepastdecade hasseenadeclineinthepowerofnationstates , butwithoutbeingreplacedby sufficientlyeffectiveglobalgovernance.Insomeareas , therecognition of “ commonbutdifferentialresponsibilitiesandrespectivecapabilities ” isinitselfa promisingstartforconstructingcommoninterestsamongpartnerswithdifferent potentials.There is clear interestin the establishment of multilateral developmentnorms , goals , proceduresandpoliciessuchasthe Millennium DevelopmentGoals , theOECDsDevelopmentAssistanceCommittee ( DAC ) or theParis Agenda whichincreasesbeneficiarycountries “ ownership ” andthe harmonisationofdonorpolicies.Earlierdominanceby Westerncountriesin framingthesediscussionshasbeenerodedandrisingnewpartnersareplayingan activeroleinpolicies , trade , aidandinvestment.Thus , morefundsarenow available , aswellasgreaterdiversityofaidsources. 2.犜狉犲狀犱狊犪狀犱犗狆狆狅狉狋狌狀犻狋犻犲狊犻狀犛狅狌狋犺犛狅狌狋犺犆狅狅狆犲狉犪狋犻狅狀 China , LatinAmericaandtheEUalreadyhavesomeelaboratebilateraland TrilateralRelationsbetweenChina , theEUandLatinAmerica:LittleExperience , ButBigPotential 4 07 biregionalformsofcooperation , andtheyhaveproventheirinterestinshaping theworld.Recently , political , economicandfinancialrelationsbetweenChina andtheLatinAmericanCountries ( LAC ) havebeenconsiderablyreinforced. Theoutreachofallthreebeyondtheirimmediateneighbourhoodandthe advancesinSouthSouthrelationsandcooperation , beiteconomicorpolitical , arepromising basesfor moretrilateralcooperation.Valuableexperiencecan comefrom outreachprogrammesofthe OECD / DAC , the WorldBankand regionaldevelopmentbanks , orevenfromtheEUorcountryinitiatives , suchas thoseoftheUKandGermany.Dialogueonprogrammeorientedapproachesin thedonorcommunityshouldpreparetheterrainforconcretetrilateralprojects. Accordingtothe United NationsConferenceon Tradeand Development ( UNCTAD2008 , 2009 ), SouthSouthFDIhasreached12percentofglobal FDI , andthecorrespondingfigurefortradeis20percent.As UNCTAD Secretary GeneralSupachaiPanitchpakdipointedoutinhisspeechinearly February2009totheExpertMeetingonInternationalCooperation , SouthSouth Cooperation and Regional Integration: “ SouthSouth cooperation holds significantpotentialforincreasedtradeandinvestmentflows , therebysupporting industrializationandstrengtheningtheservicessector.Inrecentyears , the renewedinterestamongdevelopingcountriesinmutualcooperationhasledtoan increasingnumberofbilateralandregionalagreementsamongthemintheareas oftrade , investmentsandfinance , butalsohealth , educationandculture. ” Thistrendhasbeendrivenbythestronggrowthintradeflowsbetween developingcountries.Since1995 , SouthSouthtradehasgrownfasterthanany othertradeflows , averaging13percentperyear , comparedtotheglobal averagegrowthrateof9percent , and10percentfortradeamongdeveloped countries.Theamountinvaluetermsisequallyimpressive.Forexample , SouthSouthmerchandisetradein2007amountedtoUSD2.4trillion , or20per centof worldtrade.The1990salsosaw atakeoffin FDIflowsfrom transnationalcooperation ( TNC ) intheSouth , withtheshareofSouthSouth FDIintotalflowsgrowingfrom5percentinthe1990sto12percentin2006. But , astheSecretary Generalalsounderlined , SouthSouthisnotasimple substituteforNorthSouth ( UNCTAD2009 ) . SincethetraditionalNorthSouthcooperationiscomplementedbygreater SouthSouthcooperation , thisopensspacefortrilateralcooperation.Thetrends towardsamultipolarworldanddiversificationofrelationsaretwosidesofthe samecoin. “ Emerging ” donorsarebynomeansnewintheaidbusiness:China , theArabcountriesandtheEasternblochavebeenactiveoverthepast50years , 4 08 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation ashavevariousLatin American ( LA ) partners , suchasBrazil , Mexico , Chile andVenezuela.Theirlargenewcushionsofforeignreservesandtheirexpertise helpmanypeople. Theend ofthe bipolar worldcan , with someexceptions , leadtoless ideologicaland moreissuebasedinterests , whichcanbe more “ negotiable ” ( Phillips2008 ; Schmitzand Messner2008 ) .Trilateralcooperationbetween LatinAmericaandtheEUexistedinthe1980s , whenLatinAmericancountries invitedtheEuropeanCommunitytocooperateinendingthecivilwarsinCentral Americawhichwerefosterednotonlybyscandaloussocialinjusticebutalsoby thetwosuperpowers , neitherofwhichcouldwithdraw withoutlosingface. PreciselythefactthatneitherLatin Americancountriesnorthe European countriescouldbeseenasa militarythreatallowedthem toreach peace agreementsandtorebuildthedisruptedsocieties. Someremarksongeneralconditions , methodsandproceduresfortrilateral cooperationonthe EU side.Asa preliminary observation , itshould be mentionedthatintheEU , atthetechnicallevel , thereisanunofficialdistinction betweentrilateralandtriangularcooperation. “ Trilateral ” meansjointfunding , forexample , bytheEUand Mexico , ofaprojectinCentralAmerica.This happensrarely. “ Triangular ” meansthattheEUusesandfunds , forexample , Chileanwaterexpertsor — andwhynotinthefuture — Cubanhealthexpertsina projectin , forexample , Zimbabwe , totakeadvantageoftheparticularaccess , expertiseandreducedcostsofnonEUexperts.Thisshouldalsohelptopromote endogenousregionalsolutions. 3.犉犻犲犾犱狊狅犳犆狅狅狆犲狉犪狋犻狅狀 3.1 Cooperationon GlobalInstitutionalArchitecture , MultilateralNorms , Actions , ProceduresandObjectives Ratherthanaworldinwhichoneortwosuperpowerstakeunilateraldecisions , theEU , ChinaandLatinAmericaprefer , inmyview , an “ interpolar ” system ( Grevi 2009 ) wherestrongplayerscooperateandpossiblyreachdecisionswiththehighestand broadestpossibleinternationallegitimacytoaddressglobalissuesandchallenges , orto preventandtacklecrises.Asglobalisationshrinksdistancesandissuesbecome increasinglyinterconnected , thecomparativeadvantageofaneffectiveUNsystem becomesmoreevident.Interpolarityislikelytobealessconflictualschemethan thebipolarpast , notleastduetoeconomicinterdependence , butittakespolitical will to support strong , more representative and efficient international institutions , capableof “ globalgovernance ”( GrevianddeVasconcelos2009 ; TrilateralRelationsbetweenChina , theEUandLatinAmerica:LittleExperience , ButBigPotential 4 09 MGI2008 ; Phillips2008 ) .Withoutreforms , theseinstitutionswillnot ( re ) gain thelegitimacytheyneedtoact.Theycanfunctionefficientlyonlyifthereisa minimumofcommonvaluesandaims. Alookattheinternationalweightandengagementofmajorpartnersis encouraging.TheEU27commandoneeighthofthevotesintheUnitedNations GeneralAssembly ( UNGA ), theEUandLACtogetheronethird.EU member statesusuallyvoteunanimously ( 97percentsince1998 / 99 ), provide39percent oftheUNsregularbudget , andtheEUplusmemberstatesare , together , by farthelargestdonorofdevelopmentassistance , with55percent.EU member statesarelikewisethelargestfinancialcontributorto UN peacekeeping , missionswithsome40percentin2007.Theythereforeprovidehalfthebudget ofUNfundsandprogrammes ( GowanandBrantner2008 ) . Inmyview , thereisnodoubtthatweneedcomprehensivereformandrevitalisation oftheUNsystemandoftheinternationalfinancialarchitecture.Thisisnecessaryto reinforcetheirdemocraticnature , transparency , accountabilityandefficiency , andtheir representativeness , whichmustcorrespondtotodaysworld , nottothatof1945.Ialso considervetorightsasoutdated , andIregretnonconstructivebehaviourincertain “ reformed ” institutions.Ontheotherhand , achangeinvotingrightsisnoguarantee ofgreaterefficiency , asillustratedbytheWTOorthenewCouncilonHumanRights. Chinahasalsotakenanactiveroleindealingwithfinancialcriseselsewhere , beitin1997ortoday.Itspresenceininternationalorganisationsorinternational nongovernmentorganisations ( INGOs ) hasincreasedsince1977from21to50 internationalorganisationsandfrom 71tosome1 , 300INGOs.Brazilhas fosteredcoalitionsforcooperationwithinLatinAmericaandbeyond.TheUnion ofSouthAmericanNations ( UNASURUnióndeNacionesSuramericanas ), the creationofaSouthAmericanDefenceCouncilandtheIndiaBrazilSouthAfrica DialogueForum ( IBSA ), allcanhaveabeneficialimpactonregionalsecurity. IBSAiscertainlyahighlyasymmetricalandheterogeneousscheme , butoffers particularpotentialasaninitiativebetweenregionalmiddlerangepowerswith multiethnicandmulticulturalsocieties , andexperienceofdialogue , bargaining and peacefulconflictresolution.Brazilisreaching outto otherlusophone ( Portuguesespeaking ) countriesandtheCaribbeanwithitsbestpractices , for example , withregardtoHIV / AIDS.Mexicoisnotonlyaleadingeconomyin LatinAmericaanda memberofthe North American Free Trade Association ( NAFTA ), butalsooftheOECD , anobserverattheCouncilofEurope , the largestLACcontributortotheUNbudgetandpartnertosome40freetrade agreements ( FTA ) aroundtheworld.Mexicohastakenmanyinitiativesandis theauthorofimportantresolutionsandconventions , promotedandadopted — 4 10 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation oftenwith EU support — in UN forums.Itscooperationisfocusedonits neighbourhood , notably CentralAmericandevelopmentviaitsPlan Puebla Panama.Various LAC countries haveregularly participatedininternational peacekeepingmissions.ChilecontributestotheEUcrisismanagementmission in Bosnia and Herzegovina , and offersjointregionalactions within the frameworkoftherecentEUChileAssociationforDevelopmentandInnovation. Withthesecountries , thereisanimpressiveconvergenceofpositionsandvisions whichshouldnotbeoverlookedalongsideconflictualtradeissues.BothChileand Mexicohavesomeexperiencewithtrilateralcooperationwithmajordonorssuch asJapan , Canada , EU memberstates , theInterAmericanDevelopmentBank ( IADB ), theFoodandAgricultureOrganisation ( FAO ) andtheUnitedNations DevelopmentProgramme ( UNDP ) .Thereisalsogrowingcoordinationbetween thetworiftsofthePacific , asinthe AsianPacificEconomicCooperation ( APEC ) orthe Arco Pacifico schemes , which wererecentlyreinforced. Venezuelahasobtained considerableregionalgratitudeasaresultofits preferentialdeliveriesofoil , promotionofgreaterfinancialindependencefor LAC countries from international financial institutions and trilateral humanitarianandsocialmissionstogetherwithCuba.Weshouldprofitfrom thesenumerousexperiencesontheground , forexample , withregardtopoverty reductionand socialcohesion , but wecould alsotake upthe numerous commitmentsinourEULatinAmericanagreements , whichoftensuggestthe possibilityoftrilateralcooperation. 3.2 LabourandHumanRights Multilateralismlacarteisonlyasecondbestsolution.Internationalnorms are , in manycases , preferabletobilateralagreements , sincetheyreflecta broaderrangeofinterests.Thisisnotmerelya matterofsoftpowerand “ bleeding hearts ” . Weareconvincedthat moreeconomicdevelopmentand broaderproductrangesleadtomoreattentionbeingpaidtobroadlyaccepted norms — inourownnationalorregionalinterest. ThisiswhytheEUpromotescoreUNorInternationalLabourOrganization ( ILO ) conventionsonhumanandlabourrightsandrequeststheirratificationand effectiveimplementationasabasisforitsunilateralschemeofgeneralised preferencesforlessadvancedcountries.Iseeacommoninterestin working towardsconventionsonminimumlabourandsocialstandards.NotonlyPortugal andMexicobutalso , morerecently , Chinaislosingcompetitivenessandthus jobstootherevenmore “ lowcost ” countries.Thisisinthelongterminterestof TrilateralRelationsbetweenChina , theEUandLatinAmerica:LittleExperience , ButBigPotential 4 11 usall:themoreregionssuchasAfricaandLatinAmericabecomemarketsfor Chineseproducts , themoreChinawillhaveaninterestinfutureconsumerswith themeanstopurchase. Weallwanttosell , soweshouldcooperateinfosteringsuchsocialdevelop ments.DuringoneofhisvisitstoEurope , ChinesePrimeMinisterWenJiabao recalledAdam Smiths 犜犺犲狅狉狔狅犳 犕狅狉犪犾犛犲狀狋犻犿犲狀狋狊 , underliningthatifthe fruitsofeconomicdevelopmentarenotsharedbyall , thatis “ morallyunsound ” andathreattostability.Hence , China , LatinAmericaandtheEUcancooperate inexchangesofexperiencesonreinforcingsocialcohesion , andinalargersense , sustainabledevelopment. Likesomeothercountries , notablyintheG77 , Chinahasbeenparticularlyaware oftheissueofsovereignty , stronglydefendingnoninterferenceandrefrainingfrom givingothergovernments moralsermons.Stressingstatesovereigntyand non interferenceininternalaffairsis , inourview , notsufficient , however ; theEUstrongly promotesthe notion that people have the right and governments have the “ responsibilitytoprotect ”( R2P ), adoptedatthe2005UNSummit , tosomeextent puttingpeopleatthesamelevelasstates. Peopleexpecttobeprotectedandtheimmunityofstatesmenintheexercise oftheirfunctionsshouldnotbepervertedintoimpunityinthenameofnon interferenceincaseoftheheinouscrimesforwhichR2Pwasconceived.Inthe Pinochetcase , forexample , theBritishHighCourtstressedthiswiththesimple statementthat “ itisnotamongastatesmansfunctionstotorturehiscitizens ” . TheEUbelievesinthe “ narrowbutdeep ” conceptofR2P:fourcrimesandthree pillars.Thepreventivedimensionandassistancetostatestobuildtheircapacity toensuretheirownresponsibilitytoprotectarecrucial.Thisconceptdoesnot encroachonnationalsovereigntysinceitisinrealityaboutprevention , notabout intervention.R2P would makethe UN SecurityCouncilsuseofChapterVII moredifficult.Thus , theEUconsidersacceptanceoftheprincipleofR2Pasa meansofenhancingconflictprevention. MostLACcountriesbelieveintheideaformulatedintheEuropeanSecurity Strategy ( 12December2003 ) that “ thebestprotectionforoursecurityisaworld ofwellgoverneddemocraticstates ” . “ Spreadinggoodgovernance , supporting socialand politicalreform , dealing with corruption and abuseofpower , establishingtheruleoflawandprotectinghumanrightsarethebestmeansof strengtheningtheinternationalorder. ” Thebackgroundforthisphilosophyisof coursetheEUsownrecenthistory. Chinasredefinedviewofinternationalrelationshasreaffirmedsomefamiliar positions , butalsoexpressesawillingnesstoengageinconstructiveengagement 4 12 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation withregardtoglobalgovernanceinthe managementof “ Weltinnenpolitik ” ( globaldomesticpolicy ) .Withrisingstrengthcomerisingresponsibilities , but thereverseisalsotrue.WeallhaveaninterestinparticipatinginUNpeace keepingmissionsorfightinginsecurity — forexample , intheseasaroundthe HornofAfrica.ItisencouragingthatAsianstatesarenow moreoutspokenin theircriticismsofandengagementinsuchsituationsas Myanmar.Chinahas comearoundtotheviewthatallshouldencourageprogresstowardsdemocracy , lestitbecomeadangertosecurityandstabilityintheregion. Withregardtothenew Human Rights Council ( HRC ) or UN anti corruptionconventions , nooneshouldbeallowedto makeadeclamatoryand acclamatorymockeryofwhatwasmeanttobeaconstructivelearningprocessof bestpractices.RecentbadexperiencespointtotheHRCaspossiblyafailing institution.SimilardeplorabletrendswereseenintheThirdCommitteeofthe UNGA , andalltooobviousattacksoncountryresolutions.Thereareother , moreencouragingexamples , however:theEU welcomedtheAssociationof SouthEastAsian Nations ( ASEAN ) fortheestablishmentoftheTermsof Referenceforthe new Intergovernmental Commission on Human Rights ( AICHR ) on20July2009 , whichisagoodbasisfromwhichfuturepartnership couldevolve. Also , thepeopleoftheworldwillnotunderstandifsomecountriesobstruct progresswithregardtothe UN Conventionagainstcorruption.Corruption distortsthecriteriabywhichpublicpoliciesarechosen , andtherebyundermines theefficiency , efficacyandtransparencyofthosepolicies.Corruptionisequally perniciousamongindividualcitizens , weakeningthebasictrustthatisatthecore of mostconceptions ofrobust , highquality democracy.Politicalcorruption mattersmoreindemocraciesthaninotherregimetypesbecauseiterodestwo basicpillarsofdemocraticregimes:theequalityofcitizensandtheopennessof decisionmaking.Butthoughcorruptionexistseverywhere , itseffectsaremore dramaticthepooreracountryis.Wemustcooperateonthefullimplementation oftheUNConventionagainstTransnationalOrganizedCrimeandsupplementary protocolsonthefightagainstorganisedcrimeandthe UN Conventionagainst Corruption. Otherareasforcooperationshouldbementioned , notasashoppinglistbut becausetheyhaveobviouspotentialfortrilateralormultilateralcooperation. Clearly , therehasrecentlybeenatrendawayfrom multilateralsolutionsand agreementsandtheinfluenceoftheEUhasdecreasedasanormsettingpower. ThegeneralcarrotbasedapproachoftheEUasasoftpowershouldalsobe underlined , withitsoffersofassistanceandrespectforthesovereigntyof TrilateralRelationsbetweenChina , theEUandLatinAmerica:LittleExperience , ButBigPotential 4 13 recipientcountriesthroughtheprincipleof “ ownership ” andnegotiatedfunds , programmesandprojects. Thereisinsufficientspacehereforadiscussionoftheconsiderablepotential fortrilateralcooperationonthebasisoftheelaboratebilateral , sectoraland policydialoguesexistingorbeingestablishedbilaterallybetweenthe EU and China ( 24sectoraldialoguessofar ), orinthestrategicpartnershipsbetweenthe EUandBrazilandtheEUandMexicoandtheirjointactionplans , aswellasthe Associationfor DevelopmentandInnovation with Chile , reinforceddialogues withArgentinaandVenezuela , anddialoguesinwhichtheEUistakingthelead withregardtohumanrightsornonproliferationofweaponsofmassdestruction ( WMD ) togetherwithnumerousothercountries.Someareasarebetterdealt withbilaterally , butothers — includingcohesionpolicy , issuesof megacity management , urbanruralrelations , civilaviation , sanitaryandphytosanitary issues , theenvironment , energyandinformationtechnology — clearlyhavemore trilateralorevenmultilateralpotential. 3.3 CooperationwithintheWTOandBenefitsBeyondIt Inaglobalisedworld , thereareadvantagesinnormswhicharesharedas globallyaspossible , as wellasin accepted procedures , beyond bilateral arrangements.Wecannotlimitourselvestorepeateddeclarationsaimedatsaving orrevitalisingtheDohaprocess , suchas “ confirmingourwillingnesstoreachan ambitious , comprehensiveandbalancedagreementthatfulfilsthedevelopment objectivesofthe Round andsignificantlyfosterstradeflowsin agriculture , industrialgoodsand servicesamong and between developed and developing countries , aswellaspromoteseffectivetraderules ” .Thisisnotaneasytask.It isclearfromtheDohaprocessthatnoonecanclaimtoknowautomaticallywhat bestservesdevelopingcountries.Inthepast , theEU wasrightlycriticisedfor itsagriculturalsubsidies — however , thishasbeendramaticallyrectified.Brazil , too , becameawarethatitscallforcompleteliberalisationofagriculturaltrade wasseenasathreatbylessefficientagriproducingcountries. China withits ( too ) strongly exportoriented economy must become interestedin — somewouldsay , itisdependenton — behaviourandrulesleading tomorepredictabilityinrelations.Agreednormsandproceduresaremeanttodo justthat.ThisisonereasonwhytheEU , whoseopenmarkethasbeenalarge contributortoChinasexportledgrowth , wasastrongsupporterofChinas accessiontothe WTOinlate2001 , followedbyabroadEUChinastrategic partnershipin2004andin2007bynegotiationsonanappropriateframework 4 14 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation agreement. AsformerTradeCommissionerPeter Mandelsonsaid , theEU expects tangibleresultsintheform of marketaccess , enforcementofintellectual propertyrights ( IPR ), consumersafetyandsoon.Probablynoothercountry hasgainedmorefromglobalisationthanChina.Nationalstandardswhichdiffer significantlyfrominternationalonescausehighcompliancecostsanddelays. EasingaccesstotheChinesemarketisanobjectivetheEUshareswithkey developingoremergingcountries. Idonotsharetheworriessometimesexpressedaboutimpendingcatastrophe withregardtoclearlyshiftingcentresofgravityintheworldeconomy.Itakea moreoptimistic , cooperativeview.Apparently , inChinese , thesignfor “ crisis ” isalsothesignfor “ opportunity ” .Economicactivitiestosomeextentmoving awayfromEuropeandtheUSandevenLatinAmericashouldnotbeseenmerely asaonewayprocess.First , weretainlongacquiredtechnologicalcapabilities. Second , suchmovescanalsogenerateincomeforEuropeanenterprises , directly orthroughlicencefees.Third , generaldevelopmentandknowhowgeneratedin Asiaand Latin Americacreateconsiderable demandforcertain European industries , suchasrenewableenergytechnology , transportandsoforth , and providegroundsforresearch , whichcanbecomemorecooperative.Also , itis simplistictoseethegrowingChinesepresenceonbothEUandLatinAmerican marketsasathreat , mainlyduetocheaplabour.Itshouldbeseenasawakeup callforthose who havesofarfailedto elaborate nationalandregional developmentandreformstrategies.Chinahasapointinstressingthatitslow pricedexportproductscanbepurchasedbythepoorinLatinAmerican , butitis alsotruethattoallowthepoortobuyanythingtheyneedjobs , whichcanbe endangeredbysuchlowpriceimports.Ontheotherhand , forLACthereare risksofbeingstuckinthelowvaluerawmaterialexportcorner ( TheEconomist 2005:43 ; OECD2006 ; IABD2006 ; Buck2006 ; deFreitasBarbosa2007 ) . 1 Chinahasconfirmeditsinterestinprotectingintellectualpropertyrights ( IPR ) andincontrollingproductsafety.Theirresponsiblebehaviourofsome producersthreatensChinesecompaniesjustasmuchasanyothers.Underan agreementof2006 , theEUpassesoninformationaboutdangerousgoodstothe Chineseauthorities. We should welcomethefactthat , despite growing problems , cooperationhasimprovedrapidly.Suchcooperationcouldbeextended tootherpartners.Itshouldalsobeaddedthat , duetoitsrapiddevelopment , Chinaisalsobecomingthevictimofunfairorcriminalproductionelsewhere.In April2009 , forthefirsttimeaGermancourtprotectedaChinesefirmagainst counterfeitingbyaGermanfirm ( althoughitshouldalsobenotedthatitsowner TrilateralRelationsbetweenChina , theEUandLatinAmerica:LittleExperience , ButBigPotential 4 15 wasaChineseexpatriate ) . Thereisclearlyacommoninterestinworkingoutamutuallyagreedand balancedapproachtotheenforcementofintellectualpropertyrights , whichcan providethebasisforthepromotionofinnovationandtheestablishmentofan objective dialogue on the common challenges of fighting piracy and counterfeiting.On30January2009 , theEUandChinasignedanactionplanon customscooperationintackling piracy and counterfeiting , as wellasan agreementondrugprecursors. The Chinese agreement to discuss opening service markets , the MERCOSURChilebusinessseminarontheadvantagesoftriangulationin May 2009 , theEUChinaBiodiversityProgrammeandsimilarcommitmentswithinthe frameworkoftheEULACsummitprocessarepromisingstepsinotherareas. Anotherimportantaspectisthefactthatweallmaybenefitinthelongterm fromChineseinvestmentinAfghanistan , PakistanandIran , wherethebuilding ofroads , mines , transportandinfrastructure , althoughcertainlydoneinChinas own interest , also contributes to economic development there and to interdependence , bothofwhicharealwaysgoodbasesformorestability. Asalready mentioned , multilateralism àlacarteisonlyasecondbest solution , withthedangerofclashingregulatorypolicies.Takeinvestment:the moreChinawishestoinvestabroad , includingtomakethebestofitshugedollar reservesinturbulenttimes , the moreitislikelytodevelopaninterestin agreeingoninternationalstandards , rulesorcodesofconduct.Addingtoa growinginternational “ spaghettibowl ” inthisarea , Chinahasbeenacommitted signatoryofbilateralinvestmenttreaties.Sincethe1980s , about120havebeen signed , mostlywithseriousreservations.Inthisway , ofcourse , thereisarisk thatdevelopingcountrieswillseetheirregulatoryautonomyfurtherreduced , and somequestionwhetherChinaisactinginaccordancewithitsrhetoriconmutual beneficialSouthSouthcooperation ( Berger2008:1822 ) .Ontheotherhand , in thisrespect , theindustrialisedcountriesarenotabovereproach:EU member statesjealouslytrytodefendtheirindividualinvestmentprotectionagreements againstanEUwideharmonisedapproach.Furthermore , industrialisedcountries alsokeeptheireconomiesclosedtoChineseorLatinAmericaninvestment , under thealltooeasyprofessionof “ vitalnationalinterests ” oreven “ economic patriotism ” . 3.4 犈犱狌犮犪狋犻狅狀犪狀犱犐狀狀狅狏犪狋犻狅狀 Highereducationis both a publicresponsibility and a publicasset. Investmentintheeconomycreatesjobs , incomes , progressandaddedvalue. 4 16 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation Investmentinthehighereducationofthebestbrainsinoursocietiesandin internationalscientificandeducationalexchangealsohelpstoachievethis.But suchinvestmenthasadditionallongterm value:itfosters understanding , friendshipandsolidarityamongequals.It makesacriticalcontributionto genuineandsolidpartnerships. Internationalcomparativeanalysessincethe1970sshowthatoneofthe majorfactorsexplainingwhysomecountriesinEastandSouthEastAsia , in contrasttothefairlyslowprogressinLatinAmerica , havebeenabletoleapfrog othersindevelopmenttermswastheirmassiveinvestmentinhumancapital , combinedwithfocussedindustrialpolicies ( Karlssonetal.1994 ) .Chinais alreadyoneofthemajorspendersonR & Dandhas — likeBrazil — reachedvery highlevelsintermsofcontributionstosciencepublications.InChinaeachyear therearehalfamillionnewpostgraduatesinscience , medicineandengineering ; inLatinAmerica , ontheotherhand , thepreferredcareerisstillthatoflawyer ornotary ( SchmitzandMessner2008:28 ) .OnlyBrazil , ChileandCubaallocate morethan0.5percentofGDPtoscienceandtechnology ( EuropeanParliament 2008:27 ), comparedtotheaverageof2.4percentintheOECDand2percent intheEUandChina , whichaspiresto2.5percentin2020.Meanwhile , studies showthatoften such effortsarestillaccompanied by unequalaccessto education — asituationfamiliarin mostsocieties ( Grevi2009:19 ) .Beijing recentlyemphasisedsocialinvestmentasessentialtoChinaseconomicstability andgrowth , withhealthandeducationatthetopofthelist. VariousLACcountrieshavemadeconsiderableeffortstoimproveaccessto education , andpromotingeducation , R & D andexchangesofstudentsand professorsareapriorityamongthecommitmentsmadeattheEULACsummits. AsthefirstEULACsummitin1999in Riostressed ,“ thereisnobetter investmentthandevelopinghumanresources , whichisbothacommitmentto socialjusticeandarequirementforlongtermeconomicgrowth ”( EU Council 1999 ) .TheEUandLACplantoestablishaCommonSpaceforhighereducation by2015. IntheirJointActionPlan ( JAP ), BrazilandtheEUarecommittedtothe building ofa peoplecentred , nondiscriminatory and developmentoriented informationsociety , envisagedbytheWorldSummitontheInformationSociety ( WSIS ), aswellastheestablishmentofmultilateral , transparentanddemocratic multistakeholdermechanismsforthegovernanceoftheglobalinternet.All countriesrecognisetheimportanceofandcouldbenefitfromcooperationwith regardtoinformation and communicationtechnologies ( ICTs ), which are TrilateralRelationsbetweenChina , theEUandLatinAmerica:LittleExperience , ButBigPotential 4 17 essentialforfosteringinnovation , competitiveness and economic growth , creatingjobsandincreasingtheefficiencyofthepublicsector.Moreover , ICTs haveafundamentalroleinpromotingdigitalinclusionandimprovingsocial cohesion , increasingthequalityoflifeandreducingpoverty.Itisessentialforall countriestoworkinclosecoordinationinallrelevantinternationalforumsin ordertofacilitatethefullimplementationofWSISoutcomes.Itwouldalsobe worthlaunchingpublictendersforthejointselectionandfundingofR & D projects , assuggestedintheEUBrazilJAP. Besidespurelylanguagedriven cooperation programmes , the EU can developtrilateralfutureactionswithintheframeworkofitswellestablishedand largescale academic exchange and R & D framework programmes. The “ Euraxess ” link , meanttoprovideanetworkingtoolforEuropeanresearchers livingabroad , hasrecentlybeenextendedtoChina ( afterUSAandJapan ) and canhelptofostermorethanbilateralcontactsandcooperation. 3.5 犆狅狅狆犲狉犪狋犻狅狀犅犪狊犲犱狅狀犪犅狉狅犪犱犲狉犆狅狀犮犲狆狋狅犳犛犲犮狌狉犻狋狔 Securityclearlyconcernsmorethanmilitaryandborderissues.LiketheEU andLatinAmerica , Chinahasadoptedanenlargedconceptofsecurity , involving threatssuch as drugs and transnational organised crime , terrorism and pandemics.Itshould bepossibletocooperateonthesenew threatsand challenges , evenifitisdifficultwithregardtoclassicmilitaryissues. ApromisingtrendinLatinAmericaisitswillingnessandcapacitytoaddress itsownsecurityissues , withoutreferring necessarilytothe Organization of AmericanStates ( OAS ) .Thisnewapproachhasalreadyshowngoodresultsin crisispreventionandmanagement.TherecentlycreatedSouthAmericanDefence Council ( CDS ) isnotaclassicoperationalmilitaryalliancealongthelinesofthe North American Treaty Organisation ( NATO ), butrathera “ method ” of confidencebuilding , safeguardingpeaceandassertingtheprimacyofcivilianover militarypowerintheregion , as wellasreinforcingcooperation on defence policies.TheCDSwillnothaveanoperationalmandate , butmayfacilitatejoint militarytrainingandcouldsendcombinedunitstoparticipateindealingwith regionalemergencies. TheEUandLAChaveincommonthatnobodycanseriouslyconsiderthema militarythreat.TogetherwithChina , however , bothshareawillingnessand capacitiesforpeacekeeping , crisispreventionandpostcrisismanagement.It mightalsobeworthmentioningherethatthegenderperspectiveisparticularly importantforsuccessinthisarea.WecanbuildonexperienceasinHaitibefore theearthquake , andengagetheinternationalcommunityinabroaderdialogueon 4 18 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation improvingresourcesandpracticesin UN peacebuildingactivities.Thereisno needtostressthatfightingterrorismanditsfundingisachallengeweallshare. Weallhaveaninterestin morestabilityandinpreventingtheemergenceof breedinggroundsforterrorism , whichalsoaffectChineseinterests.Cooperation interms ofinternationalefforts , strategies and recommendations should thereforebesteppedup. Another aspect of security cooperation is disaster prevention and management.TheEUhasjustadoptedastrategyforsupportingdisasterrisk reductionindevelopingcountries , whichistobeintegratedinitsdevelopment policiesandthepromotionofdialogueandconcreteaction withallinterested parties.Thedramain Haitioffersnotonlyalongterm opportunity , but represents an obligation for international cooperation beyond ideological considerationsandnationalinterests.Referenceshouldalsobe madeinthis connection to Global Climate Change Action ( GCCA ) and the Global EnvironmentFacility ( GEF ) .Cooperationintherunuptoandintheagreement onthesecondGlobalPlatformonDisasterRiskReduction ( DRR ) inJune2009 wasveryimportant. 4.犜狉犻犾犪狋犲狉犪犾犆狅狅狆犲狉犪狋犻狅狀犻狀犇犲狏犲犾狅狆犿犲狀狋犪狀犱犛犲犮狌狉犻狋狔 — 犃犳狉犻犮犪 TheEU hasaninterestinengagingandconsulting withboth Chinaand LatinAmerica , aswellasinpromotingdevelopmentinareastowhichtheyhave betteraccessorparticularexperienceandadvantages:insomeAfricancountries , forexample.Thegrowingnumberofhighlevelvisitshasunderlinedthis.The traditionaldonorrecipient , charitybasedapproachisoutdated.IntheEUBrazil JAP , both willjoinforcestoimprove progresstowardsthe Millennium DevelopmentGoal ( MDG ) priorities , andhavestressedtheroleoftriangular cooperation.Indeed , theEU , astheworldslargestgrantdonor , andourLatin Americanpartners , asincreasinglyengagedactors , shouldcombinetheirefforts withChinatobringdevelopmentskillsandprosperitytodevelopingcountries. Thisalso meansthatChinaand majorLatin Americancountries mayhaveto shoulderanincreasingaidbill. Accordingto UN data reportedin EU internaldocuments , Chinas engagementin Africaisconsiderable.Itisnow thecontinentsthirdlargest tradingpartner , with ( 2006figures ) over800Chinesecompaniesinvesting , some 500jointventures , 80 , 000Chineseworkers , thecancellationofdebtsworth morethan1billionUSdollarsowedby31Africancountries , theabolitionof tariffsonnumerousgoodsfromtheleastdevelopedcountries , 18 , 000scholarshipsfor 50countriesand16 , 000medicalpersonneltreating240millionpatientsin47countries. TrilateralRelationsbetweenChina , theEUandLatinAmerica:LittleExperience , ButBigPotential 4 19 Since1999 , Chinahassuccessivelydispatchedover7 , 000peacekeepers , comprising militaryobservers , militaryengineersandcivilpolicetotakepartin21peace keepingmissionsacrosstheworld , morethantherestofthe UN Security Councilspermanentfivememberscombined.Currently , Chinaisthethirteenth largestcontributorofpeacekeepingtroops.MostoftheChinesepeacekeepers weredeployedonallsevenongoingUNAfricanmissions. Chinahasgainedexperienceasapeacekeeperandapeacekeepingtrainer ; it isnolongerpurelyaparticipant , butalsoanactiveorganiser , like , forexample , BrazilinHaiti.Pursuingnationalinterestsisabsolutelylegitimate.Inthepast , Chinasengagementwasviewedwithsuspicioninsomequarters ; someactions weresaidtoundermineeffortstoimprovedemocracy , liberty , humanrights , socialandenvironmentalstandards , transparencyoraccountabilityandgood governance.Unlikethe EUsassistance , Chinese aidistied to Chinese companiesandlabour — which seemsto copy a Western approach rightly criticisedsomedecadesago.EUassistanceisthusmoreopentotrilateralaction. CommissionerLouisMichelhasexplicitlywelcomedChinassupportforAfrica. Recipientcountries — butalsoEurope — benefitmoreifanagendaislaiddown whichunderlinescomplementarity , comparativeadvantageandsynergy , evenif approaches maysometimescompete with each other.No onebenefitsfrom adversecompetitioninthisrespect.Sometimes , internationalrulesandpractices inaidmanagementwereestablishedwithoutChinabeinginvitedorparticipating. Nobodycanbeaskedtocomplywithrulesiftheyhavenotbeendiscussedwith them.Thismustberemedied.Thus , dialogueisthefirststep.Butweneedto gobeyondstatementsofgoodintentions.Wefirstneedtoassesseachothers strategiesandapproaches 狊犻狀犲犻狉犪犲狋狊狋狌犱犻狅 .Thenwemustadvance , building experienceandtrustintrilateralrelations.Trilateralcooperationinaregion mustbeacornerstoneofstrategicpartnershipinandonglobalaffairs. AbasishasbeenlaidforthisintermsofEULACorbilateralstrategic partnershipsandjointactionplans , orintheEUChinadialogueon Africas peace , stabilityandsustainabledevelopment.Wecanstartbycooperatingin areasthatarerelativelyuncontroversialintermsofvaluesandobjectives , such aspublicsectorsupport , infrastructureorhealth , notablyinAfrica.Wealready havesomecommonbasesformore , asChineseandBrazilianrepresentativesare attimesinvolvedintheworkingoutofEUprojectsin WestAfrica.Wealso shareinitiativesonresponsibletrade , suchastheForestLawandenvironmental governance , or the Extractive Industries Transparency Initiative.It is regrettablethatAfricancountrieshavesofarshownlittleinterestintriangular cooperation.Ofcourse , itiseasierforsomeleadersnottocommittocooperation 4 20 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation whichmighthavepoliticalandsocialramificationswhichwouldnotsuitthem. 5.犆狅狀犮犾狌犱犻狀犵犜犲犮犺狀犻犮犪犾犪狀犱犃犱犿犻狀犻狊狋狉犪狋犻狏犲犆狅犿犿犲狀狋狊 Fortriangularcooperationbasedonconcreteprojects , wealsoneedpolitical guidancebeyondpurelycommercialinterests.Chinahasrecentlytakensuch stepsamongitsministries , butitsstateownedenterprisesshouldfollowsuit. Corporatesocialresponsibilityisgaininggroundandshouldbepromotedinthese timesofcrisis. Donorcoordinationandsimplificationofproceduresisessentialtoavoid wasteandtheoverloadofbeneficiariesadministrations.TheParisDeclarationof the OECDDAC , the Accra Agenda and the “ European consensus for development ” help.National “ ownership ” mustberespectedbutalsodemanded. Thegoalistoactinconcert , creatinglocallyownedsolutionsfordevelopment , onvariouslevels. Inplanningandimplementingpossibletriangularcooperation , wemustall beawarethatournationalandregionaldecisionmakingsystemsinvolveelements ofdecentralisation , localpoliticalautonomy , liberalelementsinthebusiness sector — andsometimesproblemsofoverarchingcontrol — bothinChinaandthe EU.WhentalkingabouttheEU , weshouldmentiontheEuropeanInvestment Bank ( EIB ), withitslargecapacities , butalsospecificandindependentrules. Triangularcooperationcomplicatescoordination , and maycausehigher transactioncosts.Heretheremaybeaproblem withtheoverlycomplexEU internaldecisionmakingandaccountability process , created withthebest intentionsoftransparencybutoftencriticisedasslowandinflexible.Whereas VenezuelasPresidentChavezliterallycanpullachequeoutofhispocketwhen accompanyingPresident Moralesto meetpeasantsinBolivia , theEuropean Commissionmustsubmitprojectsofacertainsizeforapprovalbymemberstates andsometimes bythe European Parliament , negotiateacceptance bythe beneficiarycountrywithinitsownprogramme , thenlaunchEUwidetenders , obtainsignaturesfromvariousDirectorateGeneralsandlevelswithinCOMand otherthingsbesides. ThecurrentcrisisillustratestheEUsweaknesses.Intrilateralcooperation , therefore , itwouldbewisetotakethemintoaccount , butalsototrytodeal withthem , includingstructuralproblemswhichdonotaffectonlyemerging powers , such associalcohesion , sustainabledevelopment , infrastructure , administrativeculturesandtheenvironment.Reducingexpenditureonsuch fieldsinneedofreformcanbedangerousinthelongterm.Trilateralcooperation isanopportunityforlearning. TrilateralRelationsbetweenChina , theEUandLatinAmerica:LittleExperience , ButBigPotential 4 21 Lastbutcertainlynotleast , wemustalsopromotepeopletopeoplecontacts andculturalexchangestofacilitatetriangularinitiatives.Frommyexperiencein EULAC relations I must stress how much we both benefitfrom the interparliamentary meetingsandconsultationsbetweenourcivilsocietiesas valuableforumsforbetterunderstanding , promotingbiregionalinitiatives , with closercontactswithourconstituents , andconsolidatingourdemocraticbases. AsthereportoftheSecretary Generaltothe UNGAin2005underlined: “ States...cannotdothejobalone ...Weneedanactivecivilsocietyanda dynamicprivatesector.Itisplainthatthegoalsoutlined here willnotbe achievedwithouttheirfullengagement. ” Finally , asKissingerrecommended ,“ weallmustlearntooperatewiththe attainableandbepreparedtopursueendsbytheaccumulationofnuance ” . Kissingeralsostressedthatmoralandotherobjectivesmustbeinharmonywith ourcapacitiesforaction.Unrealisticexpectationsundermineaction.Inpoliticsit isnotenoughtobe “ right ”— inanycase , itisoftenhighlycolouredideologically. Onealsoneedsthecapacitytopushthroughwhatoneconsiders “ right ” andto seizethemoment , notgettingboggeddownindetails. Notes 1.FormoreontheCaribbean , seeErikson ( 2009 ) andECLAC ( 2008 ) . References Bader , Julia ( 2008 ), 犐狀狀犲狀狆狅犾犻狋犻狊犮犺犲狉 犠犪狀犱犲犾 狌狀犱 狊犲犻狀犲 犃狌狊狑犻狉犽狌狀犵犲狀 犪狌犳 犱犻犲 犃狌狊狊犲狀狆狅犾犻狋犻犽 犆犺犻狀犪狊 , Bonn:DeutschesInstitutfür Entwicklungspolitik ( DIE ), DiscussionPaper , 4 / 2008. Berger , Axel ( 2008 ), 犆犺犻狀犪犪狀犱犌犾狅犫犪犾犌狅狏犲狉狀犪狀犮犲狅犳犉狅狉犲犻犵狀犇犻狉犲犮狋犐狀狏犲狊狋犿犲狀狋 , Bonn: DeutschesInstitutfürEntwicklungspolitik ( DIE ), DiscussionPaper , 10 / 2008. Buck , Karl ( 2007 ), 犆犺犻狀犪狊犈狀犵犪犵犲犿犲狀狋犻狀犔犪狋犻狀犃犿犲狉犻犮犪犪狀犱狋犺犲犆犪狉犻犫犫犲犪狀 — 犈狓狆犲犮狋犪狋犻狅狀狊 犪狀犱犅犪犱犇狉犲犪犿狊 . ( Paperprovidedonrequest:buck.karl @ gmail.com ) ECLAC / CEPAL ( 2008 ), 犈犮狅狀狅犿犻犮犪狀犱 犜狉犪犱犲犚犲犾犪狋犻狅狀狊犫犲狋狑犲犲狀 犔犃 犪狀犱 犃狊犻犪犘犪犮犻犳犻犮 , Harbin:SecondChinaLABusinessSummit , 2021October. Economist ( 2005 ), 犅狉犪狕犻犾犪狀犱犆犺犻狀犪 — 犉犪犾犾犻狀犵犗狌狋狅犳犔狅狏犲 , 6August , 43. Erikson , Daniel ( 2009 ), ChinaintheCaribbean — The New BigBrother , in: 犑犪犿犲狊狋狅狑狀 犉狅狌狀犱犪狋犻狅狀犆犺犻狀犪犅狉犻犲犳 , 9 , 25December. EuropeanCommission ( 2007 ), 犆狅狌狀狋狉狔犛狋狉犪狋犲犵狔犘犪狆犲狉犆犺犻狀犪 2007  2013 . EuropeanCouncil ( 1999 ), 犈犝犔犃犆犛狌犿犿犻狋1999犻狀犚犻狅 , EUCouncildocument9798 / 99. EuropeanCouncil ( 2009 ), 犑狅犻狀狋犛狋犪狋犲犿犲狀狋狅犳狋犺犲 12 狋犺犈犝犆犺犻狀犪犛狌犿犿犻狋 , EU Council document16845 / 09. EuropeanParliament ( 2008 ), 犜犺犲犈犳犳犲犮狋犻狏犲狀犲狊狊狅犳犈犝犇犲狏犲犾狅狆犿犲狀狋犆狅狅狆犲狉犪狋犻狅狀狑犻狋犺犔犃 — 4 22 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation 犃狊狊犲狊狊犿犲狀狋犪狀犱 犘犲狉狊狆犲犮狋犻狏犲狊 , DG ExternalPolicies , online:http: // www.europarl. europa.eu / activities / committees / studies.do ? language=EN. deFreitasBarbosa , Alexandre ( 2007 ), 犜犺犲犚犻狊犲狅犳犆犺犻狀犪 , 犐狋狊犐犿狆犪犮狋狅狀犔犃犪狀犱狋犺犲犕犪犻狀 犆犺犪犾犾犲狀犵犲狊犉犪犮犲犱犫狔狋犺犲犚犲犵犻狅狀狊犔犪犫狅狌狉犕狅狏犲犿犲狀狋 , SaoPaolo:InstitutoObservatorio Social. Gowan , RichardandFranziskaBrantner ( 2008 ), 犃犌犾狅犫犪犾犉狅狉犮犲犳狅狉犎狌犿犪狀犚犻犵犺狋狊 ? — 犃狀 犃狌犱犻狋狅犳犈狌狉狅狆犲犪狀犘狅狑犲狉犪狋狋犺犲犝犖 , EuropeanCouncilonForeignRelations , Policy Paper , September. Grevi , Giovanni ( 2009 ), 犜犺犲犐狀狋犲狉狆狅犾犪狉犠狅狉犾犱 , Paris:EUInstituteforSecurityStudies , OccasionalPaper , June. Grevi , Giovanniand Alvarode Vasconcelos ( eds. ),( 2009 ), 犘犪狉狋狀犲狉狊犺犻狆狊犳狅狉犈犳犳犲犮狋犻狏犲 犕狌犾狋犻犾犪狋犲狉犪犾犻狊犿 — 犈犝犚犲犾犪狋犻狅狀狊狑犻狋犺 犆犺犻狀犪 , 犐狀犱犻犪犪狀犱 犅狉犪狕犻犾 , EU Institutefor SecurityStudiesISS , ChaillotPaper109 , May. InterAmericanDevelopmentBankIABD ( 2006 ), 犜犺犲犈犿犲狉犵犲狀犮犲狅犳犆犺犻狀犪 — 犗狆狆狅狉狋狌狀犻狋犻犲狊 犪狀犱犆犺犪犾犾犲狀犵犲狊犳狅狉犔犃犆 . Karlsson , W. , J.OlofssonandJ.Wirmark ( 1994 ), LAandEastAsia — ComparingRegional Development , in:Bert Edstroem ( ed. ), 犆狌狉狉犲狀狋 犇犲狏犲犾狅狆犿犲狀狋犻狀 犃狊犻犪犘犪犮犻犳犻犮 , Stockholm:UniversityCentreforPacificStudies. MGI ( Managing GlobalInsecurity ) ( 2008 ), 犃 犘犾犪狀 犳狅狉 犃犮狋犻狅狀 — 犃 犖犲狑 犈狉犪 狅犳 犐狀狋犲狉狀犪狋犻狅狀犪犾犆狅狅狆犲狉犪狋犻狅狀犳狅狉犪犆犺犪狀犵犲犱犠狅狉犾犱牶2009 , 2010犪狀犱犫犲狔狅狀犱 , NewYork: NewYorkUniversity. OECDDevelopmentCentre ( 2006 ), 犃狀犵犲犾狅狉 犇犲狏犻犾 ? 犆犺犻狀犪狊犜狉犪犱犲犐犿狆犪犮狋狅狀 犔犃 犈犿犲狉犵犻狀犵犕犪狉犽犲狋狊 , WorkingPaper252 , June. OkanoHeijmans , MaaikeandFransPaulvanderPutten ( 2009 ), 犆犺犻狀犪狊犚犻狊犲犪狀犱狋犺犲 犆犺犪狀犵犻狀犵犚狌犾犲狊狅犳狋犺犲犌犪犿犲犻狀狋犺犲犐狀狋犲狉狀犪狋犻狅狀犪犾犗狉犱犲狉 , Brussels:CentreforEuropean PolicyStudiesCEPS , CEPSCommentary , 6July. Pei , Minxin ( 2006 ), TheDarkSideofChinasRise , in: 犉狅狉犲犻犵狀犘狅犾犻犮狔 , 153 , 3240. Phillips , L.M. ( 2008 ), 犐狀狋犲狉狀犪狋犻狅狀犪犾犚犲犾犪狋犻狅狀狊犻狀2030 — 犜犺犲犜狉犪狀狊犳狅狉犿犪狋犻狏犲犘狅狑犲狉狅犳 犔犪狉犵犲犇犲狏犲犾狅狆犻狀犵犆狅狌狀狋狉犻犲狊 , Bonn:DeutschesInstitutfürEntwicklungspolitik ( DIE ), DiscussionPaper , 3 / 2008. Schmitz , HubertandDirkMessner ( eds. )( 2008 ), 犘狅狅狉犪狀犱犘狅狑犲狉犳狌犾 — 犜犺犲犚犻狊犲狅犳犆犺犻狀犪 犪狀犱 犐狀犱犻犪 犪狀犱 狋犺犲 犐犿狆犾犻犮犪狋犻狅狀狊 犳狅狉 犈狌狉狅狆犲 , Bonn: Deutsches Institut für Entwicklungspolitik ( DIE ), DiscussionPaper13 / 2008. ShanghaiInstituteforInternationalStudiesandFriedrichEbertStiftung ( SIIS / FES )( 2008 ), 犘狉狅犮犲犲犱犻狀犵狊狅犳狋犺犲6狋犺犛犺犪狀犵犺犪犻犠狅狉犽狊犺狅狆狅狀犌犾狅犫犪犾犌狅狏犲狉狀犪狀犮犲 , 狅狀犆犺犻狀犪犈狌狉狅狆犲 犃犳狉犻犮犪犆狅狅狆犲狉犪狋犻狅狀 , Shanghai , 1415March. UNCTAD ( 2008 ), 犛狅狌狋犺犛狅狌狋犺犆狅狅狆犲狉犪狋犻狅狀犪狀犱 犚犲犵犻狅狀犪犾犐狀狋犲犵狉犪狋犻狅狀 — 犠犺犲狉犲 犠犲犛狋犪狀犱 犪狀犱犉狌狋狌狉犲犇犻狉犲犮狋犻狅狀狊 , Doc.TD / B / C.II / MEM.2 / 2 , 26November. UNCTAD ( 2009 ), 犛狆犲犲犮犺狅犳狋犺犲犛犲犮狉犲狋犪狉狔犌犲狀犲狉犪犾狅犳 犝犖犆犜犃犇 犗狆犲狀犻狀犵狋犺犲犈狓狆犲狉狋 犕犲犲狋犻狀犵狅狀犐狀狋犲狉狀犪狋犻狅狀犪犾犆狅狅狆犲狉犪狋犻狅狀犻狀犌犲狀犲狏犪 , 45February. 4 23 犆犺犪狆狋犲狉15 犆犺犻狀犪 , 狋犺犲犈犝犪狀犱犔犪狋犻狀犃犿犲狉犻犮犪牶犜狉犻犾犪狋犲狉犪犾犚犲犾犪狋犻狅狀狊 犪狀犱犛犮狅狆犲犳狅狉犕狌犾狋犻犾犪狋犲狉犪犾犻狊犿 1#,/*- 23,4)$#."#43 1.犃犛狔狊狋犲犿犻犮犆狉犻狊犻狊牶犜犺犲犆犪狊犲犳狅狉犜狉犻犾犪狋犲狉犪犾犆狅狅狆犲狉犪狋犻狅狀 Thecurrentglobalcrisishasbroughthomewithunprecedentedandpainful forcethatthereisapotentialdownsidetoglobalisation.Amiddramaticsignsof recession , losttrade and creditsqueeze , theinternationalrecession has underscoredtheimportanceofcoordinationanddialogueindealingwithatruly systemicphenomenon.Theriskofeachcountrygoingitsownwayandtryingto dealinisolationwitheconomichardship , blinkeredbynarrowselfinterest , has beenclearforalltoseeasprotectionismraisesitshead.Thisexplainsrecent moves , unprecedented in their scale , towardsinternational cooperation in mattersoffinance , currencyandtrade , asshowcasedduringtheG20Summitsin 2009and2010. Butthepersistenceofmajorstumblingblocksontheroadtorecovery , stemmingfromdivergentperceptionsofthenatureanddepthofthecrisis , points totheneedforevengreaterandmoreagilecollaboration.Thesummoningbythe PresidentoftheGeneralAssemblyofaUNConferenceonthecrisisinJune2009 demonstratedarecognitionthatamoreholisticandintegratedoutlookisrequired ifthemultipleandinterconnectedchallengesfacingtheplanetaretobedealt withsuccessfully. Multilateralismisnodoubtacrucialpartoftheanswer , asthe world communitystrivestoovercomescepticismabouttheusefulnessofinternational institutionsatalllevels.Thecumbersomenatureofmultilateraldecisionmaking reinforcesahealthysenseofurgencyaboutaddressingglobalchallenges.While nosubstituteforglobalinstitutions , oneislefttoponderwhetherenhancing mechanismsfordialogueandchannelsofcooperationbetweenfarflungpartsof 4 24 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation theworldisnotpartoftheanswerifglobalisationistoretainitspromise. Itiswithinthiscontextthatproposalsforenhancedtrilateralrelationsare gainingcurrency.Thisnotionencouragescountriesandregionstotakethelead in workingtogetheracrossa widerangeofcommonintereststhatgenerate mutually reinforcing benefits.Ideally , this would be achieved through institutionalarrangementsthatforgelinks between countriesand regions geographicallyorhistoricallydistant. InthecaseofLatinAmerica , theEuropeanUnionandChinathisisstillan ambitiousconceptinthemaking.Asofnow , therearefewconcreteexampleson offer.Outsidethetraditionaltranscontinentalimperialregimesofthepast , this concepthasbecomeconceivableonlyinthecontextofglobalisationasunderstood fromthelatetwentiethcenturyonwards.Itisonlythegrowinginterdependence betweenthemostfarflungcornersoftheworldundertheaegisofglobalflows ofcapital , technology and knowledgethat have madethis notion truly meaningfulandpotentiallyoperational.Thebestpathforwardwouldseemtobe toworkupthroughpreexistingtwowayrelationshipssoastoidentifypointsof symmetryandconvergencethatwouldhelpconnectthethreepoles. 2.犔犪狋犻狀犃犿犲狉犻犮犪 , 狋犺犲犆犪狉犻犫犫犲犪狀犪狀犱狋犺犲犈狌狉狅狆犲犪狀犝狀犻狅狀牶犆狅犾狅狀犻犪犾犘犪狊狋犪狀犱 犘狉犲狊犲狀狋犱犪狔犃犾犾犻犪狀犮犲 InthecaseofLatinAmericaandEurope , tiesarelongstandinganddate backtoEuropeancolonisationoftheAmericasintheearlysixteenthcentury , havingsurvivedthestrainsimposedbytheindependencestrugglesoftheearly nineteenthcentury.Overrecentdecades , asLatin Americanand European integrationhaveadvancedoneithersideoftheAtlantic , aseriesofbiregional dialogueandcooperationmechanismshaveevolved. ThemostsignificantandfarreachingoftheseistheLatin Americaand CaribbeanEuropeanUnionHeadsofStateandGovernmentSummitprocess , or EULAC.Setupin1999 , itmeetseverytwoyearsinaccordancewithaflexible formatthataccommodatesthe various politicaland economic arrangements within Latin America. These include the Southern Common Market ( MERCOSUR ), the Rio Group , 1 the Andean Community ( CAN ), the Caribbean Community ( CARICOM ) andthe Central AmericanIntegration System ( SICA ) .Fromalargenumberofprioritiesfirstestablishedin1999 , the latestSummit , inLima ( 2008 ), decidedtonarrowthefocustotwocentral overarchingthemes:first , reducing poverty , inequality and exclusion ; and second , sustainabledevelopment , whichencapsulatestheenvironment , climate changeandenergy.Onthe whole , thedialoguehassoughttoemphasise China , theEUandLatinAmerica:TrilateralRelationsandScopeforMultilateralism 4 25 cooperationprojects , exchangeprogrammes , capacitybuildinganddialogueon globalagendaissues.SpainandPortugalhavetraditionallytakenaleadinmost cooperationprojects , beitthroughtheIberianAmericansummitmechanismor byplayingaparticularlyactiveroleintheEULACdialogue. Theresultshave , onthewhole , beenmodest , duetothelackofaclear focusandconflictingpriorities.Ontrade , thedifficultiesinvolvedinconcluding anassociationagreementbetweentheEU and MERCOSURorthe Andean Communityreflectprotectionistpressuresonbothsides.Projectsinthefieldof technical and technological cooperation have been fragmented , with understandablylittle measurableimpactintermsofpromotingsustainable developmentinLatin America.Thishasbeenunderscoreddramaticallyand painfullyinthebitterdisputeovermigrationcontrolsinvolvingLatinAmerican nationalslivinginEurope.Anotherboneofcontention , especiallyasregards Brazil , istheissueofEUrestrictionsonbiofuelimports.Giventhedivergent viewsontheseandothermajorissues , thisgenerallackofcoherenceandsenseof focuswasvery muchinevidenceduringtheLimaSummit.Thepictureis aggravatedbytheEUsgrowingprioritisationofcooperationwithCentraland EasternEurope.ThishasledSpainandPortugal , giventheirhistoricallycloser linkstotheregion , tobankrolltheIberoAmericansummitprocess , whichtends toconcentrateonculturalandtechnicalcooperation. 2 Noneofthishasdetracted fromincreased European directinvestmentintheregion , probablyits most consistentandlastingcontributionto Latin Americandevelopment , although ironicallythisisalsoincreasinglyanirritantinthefaceofrisingeconomic nationalisminsomeLatinAmericancountries. 3.犔犪狋犻狀犃犿犲狉犻犮犪 , 狋犺犲犆犪狉犻犫犫犲犪狀犪狀犱犆犺犻狀犪牶犌狉狅狑犻狀犵犘犪犻狀狊 InthecaseofLatinAmericaandChina , historydoesnotcastsolonga shadow.Onlyrecentlyhavetiesgainedgreaterweight , astheresultofgrowing economicandcommerciallinks.Tradehasinfactjumpedquitedramaticallywith mostcountriesoftheregion , accompaniedbytheestablishmentofdiplomatic relationswithalmostallcountries.IncontrasttoLatinAmericaEUrelations , thereisnocomparableinstitutionaliseddialoguemechanismbetweenChinaand LatinAmerica ; however , theMacauForum , forexample , bringstogetherChina andPortuguesespeakingcountriesinthreecontinents.Existingmechanismsare largelybilateralandfocusedonspecificlinks , whicharestilllargelytradeand investmentdriven.Aswithmostcountriesandgroupings , theRioGrouphasa regulardialoguemechanismwithChina , whichnormallymeetsatthemarginsof majorforums.Whileitservesasausefulopportunityforgeneralexchangeson 4 26 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation politicalandcooperationissues , ithasnotprovidedameaningfulplatformfor effectivepartnering.Chinaand Latin Americastillspeaklargelythrough bilateralvoices. 4.犜狉犻犾犪狋犲狉犪犾犆狅狅狆犲狉犪狋犻狅狀牶犠狅狉犽犻狀犘狉狅犵狉犲狊狊 Understandably , nomatureinstitutionalframeworkfortrilateralexchange hasyetbeenestablished.Anadditionaldifficultyhastodowiththeenormous heterogeneitywithinLatinAmericaitself , assuggestedbythemultiplicityof regionalforumsspeaking on behalfoftheir disparate membercountries. Differentcountries and subregions have achieved varyinglevels ofsocial , economicandtechnologicalprogress , makingitnearlyimpossibleto moulda uniformandcoherentsetofbiregionalstrategiesandpoliciesfocusingoncommon prioritiesandobjectives.LatinAmericaisatamuchearlierstageofintegration andcommonpolicydevelopmentthantheEU.Theregionhasnotachieveda comparabledegreeofcohesiveandstructuredinternalpolicycoordinationthat caterstoissuesofasymmetryandthebalancedgrowthrequiredtoforgeatruly integratedmarketandforeignpolicy.Thisisclearlyvisible , forexample , inthe slowpacedprogressofbringingtogetherthevarioussubregionalintegration dynamicsmentionedabove. Whileaninstitutionalframeworkfortrilateralrelationsstillliesinthe future , thereisalreadyampleroomforcooperationonprojectsthatseekto exploitspecificcomplementaritiesbetweenmultipleoverseaspartners.Brazilhas takenaleadhere , havingacquiredextensiveexperienceinawiderangeoffields. ThishasincreasinglytakentheformofmarryingBraziliantechnicalexpertiseand technologicalknowhow with developedcountry resources with a view to promotingjointcooperation projectsindevelopingcountries.Whilestilla relativelynovelexperiment , successfulpartnershipshavebeentestedinthefields oftropicalagriculture , governmentmodernisation , institutionbuildinginsocial policy , alternativefuelsanddiseaseeradication.ThemainpartnersareinEurope andtheUSA , thebeneficiariesnormallyinLatinAmericaandAfrica. ThereareasyetnosuchsignificantprojectsinvolvingChina , theEUand LatinAmerica.Thisshouldnotholdthemback , giventhatboththeEUand Chinaareknowntobekeenondevelopingjointpartnershipsoverseas , especially in Africa , while Brazilalready boastsextensiveexperienceincooperation projects.LatinAmericashouldalsoaffordopportunitiesgivenBrazilsevenmore wideranginghistoryofprovidingtechnicalandinstitutionalhelptoalmostall countriesinSouthandCentralAmericaandincreasinglyintheCaribbeanas well.ThestrongpresenceofEuropean , BrazilianandmoreandmoreChinese China , theEUandLatinAmerica:TrilateralRelationsandScopeforMultilateralism 4 27 enterprisesinbothAfricaandLatinAmericashouldhelpopenavenuesforjoint work.ThisisencouragedbythefactthatEuropeancountriesaswellasChina are , orareconsidering , joiningasassociate membersthe majorfinancefor developmentinstrumentsin Latin America , such as the InterAmerican Development Bank ( IADB ), the Central American Bank for Economic IntegrationandtheAndeanDevelopmentCorporation ( CorporaciónAndinade Fomento , CAF ) . Therearesomeobviousopportunitiestoemploybiregionalmechanismsas springboards for threeway collaboration. The EU maintains Strategic PartnershipswithallBRICcountries.Oneusefullineforjointactionwouldbeto identifythematiccoincidencescuttingacrossStrategicPartnerships.Thisis underscoredbythefactthattheStrategicPartnershipActionPlanrecognises Brazilsrole — presumablythesameappliestoChina — asaglobalplayerandsets outproposalsforcooperationandconsultationonaseriesofglobalagendas , includingtriangularcooperationbenefitingdevelopingcountries. Afewareasforjointactioncometomindimmediately.Thefirstareais scienceand technology , more particularlyin aerospace , Brazilenjoys a flourishingpartnership withChina , which wasenhancedduringthevisitof PresidentLuladaSilvatoBeijinginMay2009.Itcentresonsatelliteimagery , especiallyusefulforenvironmentalandweathermonitoringinLatinAmericaand China.AsimilarpartnershipexistswithFrance. A second area with enormous potentialis biofuels.Brazils 30year experiencein developing clean and competitively priced ethanoland , more recently , biodiesel offers a truly exceptional opportunity for trilateral cooperationinacriticalfieldthatshouldbedeveloped.BothChinaandtheEU arealreadyinactivedialoguewithBrazilonbiofuels.TheInternationalForum on Ethanol , whichfosterscollaborative workincertification , technological developmentanddevelopingproduction , offersavaluablelocusfortrilateral projects.BrazilspartnershipwiththeUSinthisfieldmightprovideavaluable model.Signedin2007 , thisagreementprovidesforBrazilianexpertiseinethanol productiontoencourageethanolproductionin Latin Americanand African countriesintheexpectationofreceivingfavouredaccesstothe US marketby beingexemptedfromthe54centtariffcurrentlyappliedtoBrazilianethanol imports. 5.犃犔犪狋犻狀犃犿犲狉犻犮犪狀犘犲狉狊狆犲犮狋犻狏犲牶犐狀狋犲犵狉犪狋犻狅狀 Brazilianexperienceintrilateralcooperationofferspointersbuthardlyaroad mapfortheconstructionoftrilateralrelations withthe EU and China.As 4 28 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation previouslymentioned , widediscrepanciesintechnicalandtechnologicaladvance withinLatinAmerica — asinotherdevelopingcontinents — considerablyrestricts thescopeforwideranging , ambitiousinitiativesofthisnature. ThishashelpedfuelabroadlyheldperceptionofLatinAmericaaslargelya recipientofforeignaidandabeneficiaryofdevelopedcountrycooperation , with littletoofferinitsownright.Inotherwords , itisseenasapassiveobserverof theongoingrestructuringoftrade , financialandtechnologicalflowsthatgoesby thenameof “ globalisation ” .ThisissomethingBrazilwishestoseechangeasit endeavourstouseintegrationasthebasisfortheregionjoiningmoreeffectively andintelligentlyinthe worldeconomy.It mightthereforedeal withthe questions:WhatistherelevanceoftheEUandChinaforLatinAmerica ? Or , in otherwords , howshouldLatinAmericareacttothechallengesofglobalisation andhowdoesBrazilseeitsroleinthis ? FromaLatinAmericanperspective , themainchallengeistoavoidbeing suckedintowhatmostLatinAmericanswouldcall “ neocolonialism ” revisited , wherebytheregioncontinuestosupplyrawmaterialstodevelopedeconomiesin exchangeforvalueaddedproductsandservices.Escapingthistraphasalways beenacentralplankofLatin Americaneconomicthinking.Underlyingthis perceptionisastronglyheldsenseofalonghistoryofexpropriationofthe regionsnaturalresourcesatthehandsofpowerfullocalelitesoperatingatthe behestofforeigninterests.Itisthereforeunderstandablethatpublicopinionin someofthesecountriesiseasilyledtointerpretinstarktermsattemptsby foreignenterprisesandgovernmentstoensurelongterm accesstolocalraw materials.Theelectioninrecentyearsofleftwinggovernmentsthroughoutthe regiongoessomewaytowardsexplaininggrowingeconomic , especiallyenergy , nationalism.Itexpressestheunderlyingaspirationtoensurethattheregions richesgenerateprosperitybackhomeandforall , notjustafavouredfew. Thissenseofnotwantingtobesomeones “ backyard ”, eithereconomically orstrategically , hastakenonnew meaningandforceastheworldcomesunder thefullforceoftheglobalisationrevolution.Itisunderstoodthatthenew competitiveglobal marketisopening up novelopportunitiesto developthe regionsnaturalendowmentsandsignificantconsumer marketsina manner whichwillfostersustainablegrowth.Brazilhasbeenattheforefrontofefforts todeveloptheintegratedregionaleconomyrequiredifLatin Americanisto overcomethestructurallimitationsthathavehistoricallyheldtheregionback. This means using the promise of global markets to invest heavily in infrastructuralinvestmentsintransport , communicationsandenergythatwill China , theEUandLatinAmerica:TrilateralRelationsandScopeforMultilateralism 4 29 mouldaneconomicpowerhouseabletocompeteglobally. 6.犃犌犾狅犫犪犾犖犲狑犇犲犪犾 ? However , thepresentcrisishasalsoreinforcedasenseofthevulnerability ofdevelopingcountrieswithregardtoglobalisationtakingplaceinaccordance witheconomicandfinancialrulesnotoftheirmakingandfrequentlyweighted againstthem.Thisisnottosaythatglobalisationshouldbereignedinor , much less , reversed.Quitethecontrary , mostofLatin Americaopposestrade protectionismasananswertothedownsideofglobalisation. Thefinancialcollapsehasputinstarkterms whatclimatechange had alreadymadeclear:globalgovernanceinitspresentformatisunsustainable.The inabilityofoldcoalitionsthat , traditionally , decided mostissuestoprovide leadershipandcredibleguidancehasbeenhighlightedbythefranticsearchfora replacementforthe G8 oreventhe UN Security Council.Butemerging markets — thatcontributedlittletothepresentcrisisortoglobalwarming — have becomecentraltoanysolutiontothesequestions , giventheirgrowingroleinthe worldeconomy.Atthesametime , theircitizensaretheimmediatevictimsof bothcrises.Thisexplainsthegrowingclamourforanewglobalcompactthat redistributesresponsibilitiesmoreequitably.Underlyingthesedevelopmentsis therealisationthatthecontemporaryworldisfundamentallyunbalanced:onthe onehand , richcountriesdesiretoretainwhatisclearlyanunsustainableliving standard , while , ontheotherhand , emerginganddevelopingnationsaspireto higherlevelsofprosperity.Thishighlycomplexandsometimesperversesocial , technological and economic interconnectivity — which we loosely call globalisation — hasacceleratedwiththegrowthoftheemergingeconomies.Given theirincorporation underextremelycompetitiveconditionsintothe global divisionoflabour , thesecountriesareachievinglevelsofproductivity — and thereforeofconsumption — thataregraduallyclosingthegap withdeveloped regions.Theresultisgrowingpressureontheglobalsupplyoffood , mineraland energyresources , ontheonehand , andthe migrationofjobs , peopleand investmentsfrom NorthtoSouth , ontheotherhand.Thedownsideofthis phenomenonissplashed overnewspaperheadlines:foodriots , backlashes againstforeignworkersandbruisingcompetitionforaccesstoincreasinglyscarce resources , temporarilyhaltedduetothepresentdownturn. Undersuchchallengingcircumstances , leadersandentrepreneursinemergingand developingregionshavebeguntoaskanumberofpointedquestions: ( 1 ) Willrichcountriesacceptgloballysanctionedsolutionsthatinvolve 4 30 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation alteringtheglobalbalanceofpower ? ( 2 ) Willthey , forexample , supportsupranationalsupervisionoftheir financialmarketsand , inthecaseoftheUSA , avoidabusingthestatusofthe dollarasaninternationalreservecurrency ? Onlyinthiswaywillitbepossibleto avoidthe massivefinancialimbalancesthat madefor massivespeculative bubbles.This would allow , complementarily , thecontainmentofequally monumentalgrowthinexportsfromdevelopingcountriesaspartofastrategyto amasscurrencyreservestoprotectthemselvesagainstunpredictableassetand currencyfluctuations. ( 3 ) WilldevelopedcountriesloosentheirstrangleholdovertheBretton Woods institutions , whileatthesametimemakingavailabletoboththeIMFandtheWorld Banktheresourcesnecessarytofinancetheemergencyandlongtermrequirementsof poorregions ? Onlythuswillincreasinglycomplexandriskyfinancialproductsin mature markets be discouragedinfavouroffosteringinvestmentin highreturn developingmarkets , wheregrowthismosturgentlyneeded. ( 4 ) Willtheyagreetocovertheretoolingcostsrequiredforemerging countriestochangeovertolow carbontechnologiesandthusboosttheir populationsprosperity withoutdamagingtheglobalenvironment ? Inother words , areindustrialisedcountries — whichlaunchedglobalwarmingovertwo centuriesago — readytopaythegreaterpartofthebillforrenovatingtheworlds environmentunfriendlyenergygrid ? ( 5 ) Finally , aretheypreparedtodoawaywithprotectionistpolicieslargely responsiblefor making agriculturalproductionin many African countries unprofitable ? Otherwise , theseregionswillremainindefinitelysubjecttothe whimsofmarketpricesanddonorgenerosity.Willtheyremoveimporttariffson ethanolgrownindevelopingcountriesandthusallowclean , renewableandcheap energy sourcesto come on stream with the added bonus ofgenerating employmentinpoordevelopingregions ? Theanswertothesequestionswilldeterminethelikelihoodofusmoving awayfromaproductionsystemthatissowastefulandyetcondemnsmillionsthe worldovertosubhumanlivingconditions.Asolutionmustbefound , insum , to theproblemofhowtodistributemoreequitablytheinevitablecostsofreversing economicandenvironmentaldegradationthataffectseveryone. 7.犐狀狀狅狏犪狋犻狏犲犆狅犪犾犻狋犻狅狀狊 Atatimewhenanewsharingofresponsibilitiesandobligationsiscalled for , multilateralinstitutionshaveneverbeen morenecessary.However , they China , theEUandLatinAmerica:TrilateralRelationsandScopeforMultilateralism 4 31 haveneverbeensodeficientandsoincapableinofferingleadershipandguidance. Weliveamidstnewandgrowingthreats , suchasglobalwarming , international terrorism , intrastateviolenceandnowfinancialcollapse.Butoldchallenges suchasdisarmament , widespreadhungerandpovertyremainunanswered.What isworse , manyoftheseproblemsaremutuallyreinforcing.Armstrafficking , forexample , drainsresourcesfromthefightagainsthungerinpoorcountries , whileatthe same time stoking civil wars that aggravate poverty and deforestation. Whatmodicum ofprogresshasbeenachievedon manyoftheseissuesis oftencentredinareasin whichspecificcoalitionsoflikemindeddeveloping countrieshavebeenabletoworktogetheraroundsharplyhonedagendaswith clearcutgoals.An “ axisofgood ” isevolving. Themostnotableoftheseisdoubtlessthe G20atthe World Trade Organization ( WTO ) . Representing 22 per cent of world agricultural production , over70 percentoffarmersand60 percentoftheplanets population , itsarrivalonthescenehasensured , attheveryleast , thatno further WTOtradedistortingagreementswillbefoistedonfarmersinLatin America , AfricaandAsia. Piecemealreviewofintellectualpropertyprotectionclauseshasalsobeen achieved , underpressurefrom developingcountries , many withnascentdrug industries.AsaresultofadecisionbytheWTOin2001ontheAgreementon TradeRelated AspectsofIntellectualProperty Rights ( TRIPS ) on Public Health , patentrightsandtheaccruingprofitsofpharmaceuticalsnolonger automaticallytrumppublicwelfarepolicyandgeneralaccesstocheapgeneric drugs , asinthecaseofantiretroviralsinAIDStreatments.Furthermore , rich countriesagreedtohelpfundgenericdrugsprogrammesinpoorcountries.Here againisapolicytoempowerdevelopingcountriestohelpthemselves. Nowhereistheneedforareviewofthegroundrulesgoverninginternational relationsmoreobviousthanindevelopmentfinancing.Atpresent , abattleis beingwagedfortheheartandsouloftheBretton Woodsinstitutions , as developingcountries demand accessto adequatefunding forinfrastructural investmentsrequiredforlongterm growth andjobcreation.Theendto hereditaryclaimsonthetoppostattheIMF , whichgoestoEuropeans , andat the World Bank , whichgoesto Americans , isafirstandnecessarystepin ensuringthatemergingeconomieshaveagreatersayindecisionmakingand thereforeagreaterwillingnesstocontributehumanand materialresourcesto helpmaketheseinstitutionsworkeffectively. AsharedcommitmenttoopenandsoundgovernmentisbehindtheIndia , 4 32 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation BrazilandSouthAfricaDialogueForum ( IBSA ) .Itencouragescooperationona widerangeoftrade , security , scienceandtechnologyissuesbetweencountries withleadershipcredentialsintheirregions , whichhappentobethethreelargest democraciesinthedevelopingworld.IBSAhassetupafundwithintheUnited NationsDevelopmentProgrammetoidentifyandfinancegood practicesin education , healthandbasicsanitationprojectsinpoorcountriesineachregion. TheBRICs — Brazil , Russia , IndiaandChina — constituteafurtherexample ofmajoremergingeconomies workingtogethertoencouragereview ofthe buildingblocks oftheinternationalsystem as we know it.Theirjoint communiquéleading up to the G20 Summitin London last April was instrumentalinmovingaheadthedebateonaBrettonWoodsII. South American integration provides a regional platform for global negotiationson manyoftheissues mentionedabove.Furthermore , trade , financingandinfrastructureinitiativeswhichareunderwaytoovercomeregional socialandeconomicdisparities , alsoofferausefulsoundingboardforinnovative proposalsontheglobalstage. ThepoliticalgroundworkformuchofthishasbeenencouragedbytheSouth AmericaArabCountriesSummit ( Brasilia , 2005 ; Doha , 2009 ), andtheSouth AmericaAfricaSummit ( Abuja , 2006 ) .Thesearethefirstlargeinternational meetingsinrecentmemoryoutsidetheregularscheduleoftheUnitedNations aimedatjoininglargeblocksofdevelopingcountries.Bysettinguptransatlantic partnerships , spanning majorgeographical , culturalandpoliticalpoles , these initiatives have helpedtoreinforceasense ofcommon purposeandforged commitment. Cooperationprogrammesrangefromimprovementsinmanioccultivationin theislandnationofSoToméandPrincipetosettingupapharmaceuticalplant forAidsdrugsin Mozambique.Bytakingpartindevelopmentschemesand technicalcooperation projectsaimed atcapacity building , Brazilseeksto contributeto the New Partnership for Africas Development ( NEPAD ) . “ Africanownership ”, as Africansproudlycallit , takestheform ofspecific commitments on questions of administrative transparency and democratic practices , humanrightsprotectionandpriorityinvestmentineducationand health. These undertakings and attendant oversight schemes offer an encouragingframeworkforattractingmuchneededinternationalcooperationand longtermforeigninvestment. Thisprocessofdomesticreformismatchedattheregionallevelbythe creationoftheAfricanUnion ( AU ) whichreplacedthelonglivedOrganization ofAfricanUnity.Theinstitutionalchangesinvolvedreflectanewwillingnesson China , theEUandLatinAmerica:TrilateralRelationsandScopeforMultilateralism 4 33 thepartofmuchofAfricasleadershiptoactinconcerttooutlaw military adventurisminthecontinent.TheAUhasprovidedsupport , directlyorviasub regionalsecurity and cooperation arrangements , to peacekeeping and peace buildingmissions.Brazilhasbeenactivelyengaged , inparticularthroughthe CommunityofPortuguese Language Countries ( CPLP ), inthecontinents effortstomeettherequirementsofpostconflictreconstructionandreconciliation inAngola , GuineaBissau , SoToméandPríncipe , andtheDemocraticRepublic ofthe Congo , where Braziltook partinthe2003 peacekeeping mission coordinatedbytheEuropeanUnion. Brazilsdeterminationtoshowthatsecurityanddevelopmentmustgohand inhandisbestdisplayedin Haiti.Theinternationalcommunityfacesthe challengeofputtinginplaceanambitiousmixofeconomic , socialandsecurity policiestohelpthecountrytograduallyedgebackfromendemicinstability. BrazilsdecisiontoacceptthechallengeofleadingthemilitaryarmoftheUN mandatedstabilisingmissiontoHaiti ( MINUSTAH ) wasmotivatedbyadesire tohelpdevelopandapplyintegratedpoliciestodealwiththe multipronged challenges besetting countries underthe threat of becoming failed states. Therefore , Brazillobbiedstronglyforeconomicandsocialgoalstotakecentre stageinthepeaceoperationsinEastTimorandGuineaBissau. Possiblythemostinnovativeandpotentiallyfarreachingofthesecoalitions istheInternationalActionPlanagainstHungerandExtremePoverty , launched byBrazil , ChileandFrancein2004.AnonsectarianfusionoftheDavosand PortoAlegreagendas , 3 itoffersaframeworkforcivilsocietytoengagemore directly in raising the resources necessary to achieve the Millennium DevelopmentGoals.Oneofitsmostmeaningfuloutcomessofarhasbeenthe settingupoftheInternationalDrugPurchaseFacility ( UNITAID ), bringing togetherdonorsfromallcontinentstohelpfinancethefightagainstAidsand “ poorpeoplesdiseases ”, suchasmalariaandtuberculosis. 8.犜狉犻犾犪狋犲狉犪犾犕狌犾狋犻犾犪狋犲狉犪犾犻狊犿牶犅狉犪狕犻犾狊犆狅狀狋狉犻犫狌狋犻狅狀 Theseinitiativescollectivelyform whatonemightcalla “ coalitionofthe willing ” amongcountriesoftheGlobalSouthactingascatalystsforreformof globalgovernance.Suchadhocpartnershipscanserveasnecessarybuilding blocksingraduallybuildingconsensusamongdevelopingcountriesforchangeon apparentlyintractableissueshavingtodowithsustainablegrowthandpoverty eradication.Thisisnottosaythatthereisnoroomforcooperationwithadvanced economies.Quitethecontrary , thepresentglobalcrisishasunderscoredthatlong lastingsolutionstothechallengeofgrowinginterdependencearepossibleonlywithina 4 34 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation multilateralframework.Butalltoooften , theconstraintsoflargenumbersand overwhelmingshortterm prioritiescanderailgoodfaithattemptsatreconciling positions.Byproposingnegotiatedchangetounsustainableandoutdatedmodelsand structures , thesecoalitionscanreachovertheNorthSouthdivideandhelpmusterthe requiredconsensusforachievingmultilateralbreakthroughs. Trilateraldialogueandcooperationprojectscanplayameaningfulrolein generatingpracticalresults , aswellashelpingtobuildupgoodwill.Onmanyof theissues mentionedabove , whichtouchoncriticalchallengesfacingthe internationalcommunity , thereisampleroomforjointaction , giventhatboth ChinaandtheEuropeanUnionarekeenactorsinallofthesetheatres.Butan effectivetrilateralforumrequiresameasurabledegreeofpoliticalconvergence. ThisexistsbetweenLatinAmericaandtheEUonculturalandhumanrights issues , forexample , butislimitedontrade , asshown bydifficultiesin negotiatingbiregionaltradeagreements.Ontheotherhand , thereissignificant agreementbetween Latin Americaand China ontradeand environmental matters , butnotnecessarilyonothers. Ratherthanaimingforabsolutelycoincidentpositions , effortsshouldgo intoopeninguproomforgradualconvergence.Someforums , whilenotstrictly trilateral , mayhelpingeneratingtheinstitutionalbackdropforcommonaction andcloserties.ThisisthecasewithregardtotheForumforEastAsianand LatinAmericanCooperation ( FEALAC ) .Similarly , theRioGroupboastsan institutionaliseddialoguewithbothChinaandtheEU , providingausefulstaging groundforthreewayexchanges.Equally , IBSA , bringingtogetherIndia , Brazil andSouthAfrica , isanexampleofhowtofostertrilateralactivities , giventhe sponsorshipofpovertyalleviationmeasuresincountriesinAfrica , LatinAmerica andSouthEastAsia. Allofferopportunitiesforspilloverinto bilateralagendas , which are especiallyimportantformanyLatinAmericancountrieswithlimitedscopefor activeinitiativesfarbeyondtheirimmediateneighbourhood. Ontheenvironment , forexample , thereareobviousopportunitiesfor developingsuch partnerships.In biofuels , Brazil wishestoseeits modelof sugarcanebasedethanolusedtopromotesustainableagricultureindeveloping countriesandto help us movetoagloballowcarboneconomy.Giventhat China , ontheonehand , wishestoreduceitsoildependency , whiletheEuropean Commissionrecentlysetaunilateralgoalofreducinggreenhousegasemissions by20percentby2020 , thereisampleroomforjointworkonclean , cheapand sustainablealternativefuels.Ontheotherhand , Brazilsmodelfordeforestation controlhasbeeninternationallyacclaimed , asindicatedby Norways USD 1 China , theEUandLatinAmerica:TrilateralRelationsandScopeforMultilateralism 4 35 billionpledgeoveratenyearperiodtotheAmazonFund , setupbytheBrazilian governmenttoprovideincentivesforsustainablemanagementoftropicalforests. HopefullythiscouldhelpbreakthelogjamintheCopenhagenConference , as Brazilshowsone wayfordevelopingcountriestoengageconstructivelyin preservingtheenvironment , giventherightfinancialandinstitutionalbacking. Brazilsalreadymentionedaerospacecooperationonsatellitemonitoring with bothFranceandChinacouldbeapowerfulcomplementtotheseefforts. OntheMonterreyagenda , itistobehopedthatthejointpositionadopted bytheBRICsonreformoftheBrettonWoodsinstitutionswillhelptoovercome Europeanresistancetospeedierchange.Ontheotherhand , LatinAmerican , EU and Chinesesupportduringthe London G20 Summitfor morestringent internationaloversightoffinancialinstitutionsshouldequallyhelpbringtheUSA onboardonthiscontentiousissue. Ontradeissues , LatinAmerican , ChineseandEUsupportfortheproposalonthe tabletoconcludetheDohaRoundcanbeinstrumentalinbringingroundtheUSAand India , whichweredirectlyresponsibleforthefailuretoclinchadealin2008. Ultimately , only byfindingcommon groundfor mutuallysustainable developmentitwillbepossibletorebalanceglobalgrowthinamannerthatis trulysustainable , toavoidassetbubblesandtoallowalltobenefitfromthe prosperitythatglobalisationcanmultiply.Asglobalisationandinterdependence steadilyandinexorablyadvance , thechallengeoffindingcreativeandinnovative opportunitiesfordialogueandpartnershipsthatbridgegeography , cultureand historyhasbecomeanimperativeofthehighestorderjoiningLatinAmerica , ChinaandtheEuropeanUnion. Notes 1.TheRioGroupwasbornin1986asaforumforLatinAmericanandCaribbeandialogueon majorregionalquestionsaffectingregionalsecurityanddevelopment. 2.TheIberianprocesscouldclaimuntilquiterecentlytobetheonlyLatinAmericanand CaribbeanforuminwhichCubahadaseat.ThischangedinDecember2008 , whenCuba joinedtheRioGroup. 3.TheWorldSocialForum , knownasthePortoAlegreForum , wassetupasacounterpoint totheWorldEconomicForum , heldyearlyatDavos.Commonlyassociatedwiththeanti globalisationmovement , thePortoAlegreForumbringstogetherNGOsandothercivil societyactorstodiscussissuesrelatedtoglobalgovernance. 4 36 犃犫狅狌狋狋犺犲犆狅狀狋狉犻犫狌狋狅狉狊 作者简介 WelberBarral , SecretaryofInternationalTrade , BrazilianMinistryofDevelop ment , IndustryandForeignTrade ( MDIC ), Brasilia 韦尔贝尔 · 巴拉尔 , 巴西发展 、 工业和贸易部国际贸易秘书 , 巴西利亚 Arno Behrens , Research Fellow , Centre for European Policy Studies ( CEPS ), Brussels 阿诺 · 贝伦斯 , 欧洲政策研究中心研究员 , 布鲁塞尔 KarlBuck , FormerHeadofRelationswithLatinAmericaandCaribbean , EU CouncilofMinisters , Brussels 卡尔 · 巴克 , 欧盟部长理事会拉美与加勒比关系部前主任 , 布鲁塞尔 CarlosCarvalloSpalding , EconomicAdvisor , MERCOSURSecretariat , Monte video 卡洛斯 · 卡瓦罗 · 斯伯丁 , 南方共同市场秘书处经济顾问 , 蒙特维多 MarcelFortunaBiato , Ambassador , ForeignPolicyAdvisorGrouptothePresi dent , Brasilia 马塞尔 · 福尔图纳 · 比亚托 , 巴西总统外交政策顾问组成员 、 大使 , 巴西利亚 JiangShixue , ProfessorandDeputyDirector , InstituteofEuropeanStudies , ChineseAcademyofSocialSciences , Beijing 江时学 , 中国社会科学院欧洲研究所副所长 、 教授 , 北京 BirteKlemm , ResearchFellow , FriedrichEbertStiftung , OfficeforInternation alCooperation , Shanghai AbouttheContributors ( ) 4 37 克敏 , 弗里德里希 · 艾伯特基金会国际合作办公室研究员 , 上海 LuGuozheng , FormerDiplomattoSpanishspeakingcountriesandChiefEditor ofthejournal 犆犺犻狀犪狊犐狀狋犲狉狀犪狋犻狅狀犪犾犜狉犪犱犲 , MinistryofCommerce , Beijing 卢国正 , 中国前驻西语国家外交官 ,《 中国国际贸易 》 主编 , 中国商务部 , 北京 GüntherMaihold , DeputyDirector , GermanInstituteforInternationalandSecu rityAffairs ( SWP ) andProfessorattheInstituteforLatin AmericaStudies , FreeUniversityofBerlin , Berlin 甘瑟 · 麦霍尔德 , 德国国际与安全事务研究所副所长 、 柏林自由大学拉美研究所 教授 , 柏林 NiuHaibin , ResearchFellowandAssistantDirector , InstituteforInternational StrategicStudies , ShanghaiInstitutesforInternationalStudies , Shanghai 牛海彬 , 中国上海国际问题研究院国际战略研究所所长助理 、 助理研究员 , 上海 GustavoRibeiro , DirectorofRulesandCompetitivenessinForeignTrade ( DE NOC ) SecretariatofForeignTrade ( SECEX ), Brasilia 古斯塔沃 · 里贝罗 , 巴西对外贸易秘书处对外贸易规则与竞争部主任 , 巴西利亚 ErikaRuizSandoval , VisitingProfessorandResearcher , DivisionofInternation alStudies , CentrodeInvestigaciónyDocenciaEconómicas ( CIDE ), MexicoCity 艾丽卡 · 鲁伊兹 · 桑多瓦尔 , 经济研究和教学中心国际研究部研究员和访问教 授 , 墨西哥城 JoséAntonioSanahuja , ProfessorofInternationalRelationsandHeadoftheDe partmentofDevelopmentCooperation , ComplutenseInstituteofInternational Studies ( ICEI ), Madrid 何塞 · 安东尼奥 · 萨纳乌哈 , 孔普鲁德赛国际关系研究所发展合作部主任 、 国际 关系教授 , 马德里 MaríaCristinaSilvaParejas , SeniorExpertforRegionalIntegrationProcesses / EuropeanLatinAmericanandCaribbeanRelations , LatinAmericanCentrefor RelationswithEurope , Santiago 玛丽亚 · 克里斯蒂娜 · 西瓦 · 帕雷哈斯 , 拉美对欧关系研究中心欧拉关系和地区 一体化进程的资深研究员 , 圣地亚哥 Sun Hongbo , Research Fellow , InstituteofLatin AmericanStudies , Chinese 4 38 China , theEUandLatinAmerica:CurrentIssuesandFutureCooperation AcademyofSocialSciences , Beijing 孙洪波 , 中国社会科学院拉丁美洲研究所助理研究员 , 北京 YuHongyuan , AssociateProfessorandDeputyDirector , CentreofInternational OrganizationsandLaws , ShanghaiInstitutesforInternationalStudies , Shanghai 于宏源 , 中国上海国际问题研究院国际组织与国际法中心副主任 、 副研究员 , 上海