EU Trade policy in Latin America

Thomas LE VAILLANTEuropean CommissionDG TRADE - Relations with Latin America

Topics

1.Trade and investment flows2. Regionalism in Latin America

3. State of play

4. Architecture of FTAs

Share of world trade in goods 2004-2016

World market shares (%)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Shareofworldtradeingoods,2004-2016

EU

USA

China

Japan

LatinAmerica

Intra-LA trade included Source: WTO, EUROSTAT

Share of trade in Latin America 1992-2016

0%

10%

20%

30%

40%

50%

60%

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

ShareoftradeinLatinAmerica

EU28

USA

Japan

China

LatinAmerica

* Intra Latin America trade included** Latin American Countries: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Peru, Paraguay, El Salvador, Uruguay, Venezuela.

Source: IMF DoTS

EU export patterns…to the World

Machinery,transport41.8%

Chemicals16.3%

Manufacturesbymaterial12.7%

Manufacturesmisc.10.1%

Mineralfuels6.4%

Otros12.7%

…to Latin America

Machinery,transport48.2%

Chemicals19.7%

Manufacturesbymaterial12.1%

Manufacturemisc.7.4%

Mineralfuels5.2%

Others7.4%

(food2%)

Source: EUROSTAT

EU import patterns…from the World …from Latin America

Machinery,transport29.5%

Fuels,minerals25.4%Manufactures

misc.13.5%

Manufacturesbymaterial10.5%

Others21%

Agri food25.6%

Rawmaterials,inedible(except

fuel.)21.5%

Machinery,transport14.5%

Fuel,minerals12.6%

Manufactures(all)11%

Others14.8%

Source: EUROSTAT

Latin America - EU

Source: EUROSTAT

Trade openness

#51

#81

#54

6 CA: 57 to 86

#21 #94 #66

#112#110

#85#136

* ETI looks at four dimensions:

ü Market accessü Border administrationü Transport and communications infrastructureü Business environment

score > 4.0score <= 4.0

#107

Topics

1. Trade and investment flows

2.Regionalism in Latin America

3. State of play

4. Architecture of FTAs

Latin American Regional Integration

Mexico and Chile

Central American integration –SICA and SIECA

"The EU will promote Central American integration"

Pacific Alliance

Topics

1. Trade and investment flows

2. Regionalism in Latin America

3.State of play

4. Architecture of FTAs

EU Trade Policy in Latin AmericaOverview Trade agreements

Trade agreements currently in force:Mexico AA 2000Chile AA 2002Caribbean EPA 2009Peru & Colombia Trade Ag. 2013+ Ecuador (same Ag.) 2017Central America AA 2013

Trade negotiations on-going:Mercosur AA negotiations (Argentina, Brasil, 2000 – 2004Paraguay, Uruguay) 2010 – 2014

2016 –

Mexico Modernisation Chile Modernisation

No trade negotiations:Cuba Bolivia Venezuela

…but different regional approach:

Central America6 countries: Costa Rica, Guatemala,Honduras, Nicaragua, Panama, El Salvador.

2010: negotiations on a three pillar region-to-region Association Agreement completed,entry into force 2013.

Regional approach▪ A common text and a single schedule of commitments in goods.

▪ Strong regional integration dimension.

Colombia, Peru, Ecuador2008: negotiations of three pillar region-to-region Association Agreement with Andeancommunity (CAN, 4 countries) fail.

2010: EU – Colombia / Peru TradeAgreement concluded, entry into force 2013

EU and Ecuador conclude negotiations in2014 and Ecuador accedes on 1.1.2017.

Multi-party approach

▪ Common text but separate schedules ofcommitments for trade in goods.

▪ Accession clause included – regionalcomponent is preserved.

…and bilateral:

Mexico2016: Start of the modernization ofthe existing agreement (2000) inparallel to TTIP negotiations

2018: Agreement in principles

Chile2002: Association Agreement.

2017: Modernisation of theAgreement.

No regional approachNorth American context (Mexico).

Dialogue with Pacific Alliance.

Topics

1. Trade and investment flows

2. Regionalism in Latin America

3. State of play

4.Architecture of FTAs

Objectives • Enforce, expand and modernize bilateral Agreements:

§ Mexico and Chile

§ Colombia and Peru (Ecuador)

§ Mercosur

§ CARIFORUM

§ Central America

§ Trade in goods and Services: § call against protectionism

§ Enforcement of commitments

§ Investment and Services: importance of legal security, stable framework

The Trade provisions aimed at establishing a business friendly environment to stimulate the economic links by:

§ Improving the access to the markets

§ Facilitating Trade relations by removing trade barriers

§ Establishing a level playing field to avoid unlawful competition

§ Supporting regional integration process (when regional)

§ Ensuring that the trade flow supports a sustainable development of the partners

§ Establishing a dispute settlement mechanism

Trade in goods• Market Access

• Agriculture• Industrial and fish product

• Trade Remedies• Trade Facilitation• TBT• SPS

Trade in Services• Cross border supply• Temporary presence of

natural persons• Regulatory framework• Digital trade• Investment

Horizontal • Capital Movement• Regional Integration• Government procurement• IPR

Issues• Competition• Dispute Settlement• Trade and Sustainable

Development

Thank you!