The current status of the EU’s relations with Latin America presents good and less promising news for the Global Shippers Alliance. Spain’s presidency of the European Council, which began on July 1, 2023, is affected by domestic political issues and elections, delaying the setting of the regional agenda in Latin America. Uncertainties arise for shippers worldwide as Madrid postpones its priorities until September, when a new government is expected to take office. Despite the delays, the European Commission’s efforts to strengthen ties with Latin America through Association and Trade Agreements and enhanced political dialogue are positive developments. These agreements may open up new business opportunities to facilitate trade, liberalize markets, and encourage fair competition. The successful EU-CELAC summit also signals a renewed appreciation for Latin America, fostering potentially beneficial trade relations. However, defensive EU regulations like the Carbon Border Adjustment Mechanism, Corporate Sustainability Due Diligence Directive, and Deforestation Regulation raise concerns for shippers. These regulations could increase costs for Latin American exporters to the EU, impacting trade and logistics operations between the regions. Balancing environmental objectives with trade facilitation is crucial for sustainable partnerships. The EU’s increasing interest in Latin America as an alternative source for critical raw materials, reducing dependency on China and Russia, is positive news for shippers. The Global Shippers Alliance advocates for a positive evolution of regulations, markets, and practices to foster successful and fruitful partnerships between the EU and Latin America. Achieving fair competition, lower barriers, and sustainable practices will benefit all international trade and logistics stakeholders.
Further reading:
- New Agenda to strengthen EU’s partnership with Latin America and the Caribbean
https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3045?mc_cid=c0a4e82110&mc_eid=e07ffed6af
- ‘The New Wave of Defensive Trade Policy Measures in the European Union: Design, Structure, and Trade Effects’ By Fredrik Erixon, Director at ECIPE, Oscar Guinea, Senior Economist at ECIPE, Philipp Lamprecht, Senior Economist at ECIPE, Vanika Sharma, Researcher at ECIPE and Renata Zilli Montero, Research Assistant at ECIPE
