28-29 June: EU-Latin America summit

Date: 01/07/1999

EU and Latin American leaders met for the first time in Rio de Janeiro to discuss ways of strengthening ties between the two continents and agree a set of common actions to combat drug trafficking, financial insecurity and environmental damage. In a 69-point declaration, the two sides committed themselves to work together to remove tariff barriers and boost cultural contacts between the blocs. They also condemned domestic laws, such as the US' infamous Helms-Burton legislation, which is aimed at punishing foreign firms doing business with Cuba.

HOWEVER, more important than these fine-sounding dec-larations were the series of bilateral negotiations which took place during the two-day meeting.

THE EU and the Mercosur group of countries held a separate summit on Monday in which the two blocs agreed to kick off free-trade talks in November.

Brazil, Argentina, Uruguay and Paraguay - the four countries which make up the world's third largest trade bloc - will be pleased that Union countries agreed to include agriculture within the scope of the free-trade talks, but disappointed that no date was set for completing the negotiations. Latin American countries had wanted to set a 2005 deadline for finishing for the talks. They will also be irked that the final declaration shied away from any mention of the goal of establishing a free-trade area, largely at the insistence of France.

IN A move which mirrors the compromise deal struck by EU member states last week, the two sides agreed to begin talks on tariffs in July 2001 and wrap them up after the next round of World Trade Organisation negotiations end.

BRAZILIAN President Fernando Henrique Cardoso said that the EU-Mercosur trade agreement would complement rather than compete with a planned Free Trade Agreement of the Americas. “All this has an obvious political objective. We are building a multipolar world.” he said. The US, which was not present at the meeting, said it welcomed moves towards greater liberalisation between the two continents.

Despite being one of the obvious stars of the summit, Cuban President Fidel Castro came in for a welter of criticism from European countries for his country's lack of democracy and poor human rights record.

IN ANOTHER bilateral meetings, Brazil reached a deal on preferential tariffs with the five countries of the Andean grouping, but Mercosur countries failed to agree rules for the trade in automobiles.

At the end of the summit, the 50 European and Latin American leaders agreed to meet again in Spain in 2002.