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The EU is continuing negotiations for bilateral trade liberalising agreements between the EU and non-EU countries, including Latin America and Ukraine. A stock taking exercise took place at the Lima Summit in May for EU and Latin America and Caribbean countries, notably on talks for a Free Trade Agreement (FTA) with the Andean Community and Central America. The EU Commission also released plans to step up cooperation with countries covered by EU Neighbourhood Policy.
At the fifth EU Latin America and Carribean (LAC) Summit held in Lima in May, EU and LAC leaders debated key themes for the bio-regional agenda, including the environment, climate change, energy, biofuels and sustainable development, in a bid to strengthen cooperation in these areas. They also took stock of progress of negotiations for Free Trade Agreements (FTAs) with the two Latin American regional organisations, the Andean Community (Bolivia, Columbia, Ecuador, Peru) and Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama (observer)).
The EU and Central American leaders made further progress in mid-April in the third round of talks for an Association Agreement, which includes an FTA, which covers agriculture, including biofuels. They aim to conclude the negotiations by 2009. Little progress has however been made in the negotiations for a FTA with Mercosur countries, led by Brazil, since 2004 when both sides agreed that the offers on the table were insufficient, especially on agriculture. The EU offer included a sharp increase in the cereal import quotas as well as a 1Mt rise in the bioethanol import quota, which would affect the EU grain sector. But both sides now agree that concluding the FTA will be very difficult before an outcome to the world trade liberalising talks is known.
EURO-MPS
Euro-MPs meanwhile called in April for the FTA talks with Central America and Mercosur countries to be concluded as soon as possible and for a Euro-Latin American Global Interregional Partnership Agreement to be completed by 2012. They also called for joint initiatives to be drawn up on climate change, biofuels, biodiversity and the world food crisis, and for the Commission to encourage the development of environmental policies in LAC countries. The EU is the second economic partner for LAC, with bilateral trade reaching EUR160bn annually. EU imports from Latin America, worth 91 924M in 2007, were mainly energy and agricultural products, including soyabean and maize, notably from Brazil.
EU Neighbourhood Policy
In addition, the Commission has released a progress report as well as plans to strengthen relations with countries covered by the EU Neighbourhood Policy (ENP). These include Ukraine, Egypt, Tunisia, Morocco, Israel, Jordan, Lebanon, Moldova. Negotiations with Ukraine on a New Enhanced Agreement, which includes a deep and comprehensive Free Trade Area, have already been launched. The FTA is expected to have a positive impact on Ukraine's grain sector. Negotiations are also continuing with Egypt, Israel, Morocco and Tunisia on liberalising trade in agricultural products. Major tariff reform in 2007 was undertaken in Egypt, an importer of EU cereals, bringing down the weighted import tariff for a range of manufactured products and raw materials to 7%. Eygpt is also preparing a law on food safety and started to work towards the establishment of a single food safety body. Avian flu nevertheless remains a serious challenge in Eygpt.
The Commission meanwhile released concrete proposals for a Mediterranean Union in May, which includes member states and non-EU Mediterranean coastal states. The proposals aim to step up cooperation, in preparation for the Euro-Mediterranean Summit in July. | |
