Euro-Americas Forward

Following an eight-year hiatus, the 2023 EU-CELAC Summit of Heads of State and Government revitalized a conversation that was dormant and established a consistent periodicity for high-level dialogue. In addition, the Summit concluded in an ambitious and comprehensive 41-point joint declaration. Institutionalized follow-up mechanisms will be crucial to ensuring that shared commitments are met.

In 2021, investment from the European Union accounted for 36 percent of total foreign direct investment (FDI) to Latin America and the Caribbean, surpassing the United States (34 percent) as the largest investor in the region. Combined, LAC countries are the EU’s fifth largest trading partner. The European Union has established trade agreements with several countries and subregional blocs, including Cariforum, the Central America group, Chile, Colombia, Ecuador, Mexico, and Peru.

The 2008 European Union, Latin America, and the Caribbean Summit in Lima established climate change as a priority area for EU-LAC cooperation. LAC is poised to play a pivotal role in the green energy transition due to its critical mineral endowments, including large shares of the world’s lithium (60 percent) and copper (40 percent). The European Investment Bank (EIB) has allocated €13.4 billion worth of investment to LAC, with a transversal focus on climate action.

Closing the digital infrastructure gap has been identified as one of the key levers to unlock higher productivity and more dynamic and inclusive economic growth in Latin America and the Caribbean. EU-LAC cooperation on digital transformation includes initiatives such as the European Union-Latin America and Caribbean Digital Alliance and the Building the Europe Link to Latin America and the Caribbean (BELLA), a submarine fiber optic cable connecting the two regions.