Can Spain’s charm offensive win over Latin America?
Spain’s strong affinity for Latin America is driven by the region’s abundant mineral resources crucial for Europe’s green and digital initiatives. However, Latin America’s unpredictable politics and inconsistent track record in sustainable resource management pose challenges.
During its Council presidency, Spain aims to leverage its cultural and linguistic ties, along with the European Commission’s new strategy for Latin America and the Caribbean, to capitalize on this potential. Prime Minister Pedro Sánchez emphasized the importance of strengthening open strategic autonomy and completing agreements with Chile, Mexico, and Mercosur.
Negotiations with Mercosur, comprising Brazil, Argentina, Uruguay, and Paraguay, have presented a rare “window of opportunity.” Yet, the question of whether free trade is still wise in an era of deglobalization and great-power rivalry looms over the EU. While protectionist powers like France advocate for strategic autonomy, proponents of free trade, including Sweden, continue to make their case.
Spain’s approach of “open strategic autonomy,” coined by the European Commission, signifies an economically liberal stance. The progress Spain achieves in trade-related matters, especially with Latin America, will indicate whether this approach represents a viable compromise or a contradiction.
According to Spain’s perspective, forging new agreements with Mercosur and other Latin American countries would open new markets while reducing the EU’s reliance on China for essential raw materials needed for green and digital transitions. The concept of “strategic autonomy” necessitates maintaining openness, as protectionism is unrealistic given the lack of necessary raw materials.
The COVID-19 pandemic and Russia’s aggression against Ukraine exposed the risks of depending on a single country for crucial goods. Partnering with Latin America is now seen as a prudent move, though interest from the region has yet to be reciprocated fully, with Brazil seemingly aligned with Russia and Latin America already courted by China and the United States.
EU Commission President Ursula von der Leyen called for a Mercosur deal during her recent tour of Latin America. Negotiators are working behind the scenes to revitalize the relationship, aiming for a summit between the EU and the Community of Latin American and Caribbean States in July to invigorate talks that have stretched over two decades.
Spain’s vision may clash with the EU’s commitment to sustainable trade in future agreements. Ensuring sustainability in the Mercosur pact has been a significant challenge, and it will likely become a hurdle as Spain seeks to strengthen trade relations. Striking a balance between trade expansion and environmental concerns, particularly regarding deforestation in the Amazon, remains complicated.
Spain also aims to conclude negotiations on the Critical Raw Materials Act, diversifying the EU’s supply away from China. Establishing partnerships with resource-rich countries like Chile, Argentina, and Brazil is part of the plan. Sustainability is a crucial aspect of these partnerships, differentiating the EU from China by ensuring mutual benefits and promoting local processing of raw materials.
Determining whether to impose strict green requirements from the outset or assist countries in developing sustainability and labor standards poses a key question. While some advocate for the latter approach, critics express skepticism about the EU’s overall approach to Latin America and its environmental commitments.
Spain’s leadership in the EU will require deft navigation of these complexities as Latin America is courted by the US and China, who impose fewer demands. To enhance EU-Latin America relations, the EU must transcend traditional policies and prioritize sustainable trade to meet the changing dynamics and aspirations of the region.
