Latin and Central America

The EU is a leading trading partner and source of development aid to Latin and Central America. Taking 20% of the region's exports, it has trade and economic cooperation agreements with several Latin and Central American countries and has instituted political dialogues to promote democracy, peace and economic development in Central and South America.

A "Global Agreement" for economic partnership and political coordination was signed with Mexico in December 1997, and an EU-Mexico free trade agreement is being negotiated.

In June 1999, the first Rio Summit brought together leaders from the EU, Latin America and the Caribbean for the creation of a new political dialogue, strengthening of economic and trade ties, and cooperation on cultural, education, and human rights issues within Latin America and the Caribbean.

Since its birth in the 1950s, the European Economic Community EEC (or "Common Market") has been developing relations with the rest of the world through a common policy on trade, development assistance and formal trade and cooperation agreements with individual countries or regional groups.

The creation of a customs union meant a common external tariff, and negotiations with partners outside the EEC. So the EU's responsibilities for external relations in the trade field date from its earliest years. From the first bilateral agreements drawn up in the 1960s covering textiles imports to the creation of the World Trade Organisation (WTO) in 1995, the EU has become a major force on the world economic stage. Supervised by the Member States, the Commission negotiates external trade issues for a Single Market of almost 400 million consumers representing one fifth of world trade.

The role of the European Union in providing assistance to developing countries has also expanded. The first European Development Fund was set up in 1960 to provide assistance to the developing countries of African, the Caribbean and the Pacific, many of which are former colonies or dependent territories of the Member States.

The EU began providing humanitarian aid to those in need around the world in the 1970s. Since 1993, under the Maastricht Treaty, it has been developing a common foreign and security policy (CSFP) to enable it to take joint action when the interests of the Union as a whole are at stake. Defence is becoming an important aspect of the CFSP as the EU seeks to promote and maintain stability around the world. As it deals with terror, international crime, drug trafficking, illegal immigration and global issues like the environment, the Union also works closely with other countries and international organisations.

The EU’s common trade policy operates at two levels. Firstly, within the World Trade Organisation (WTO), the European Union is actively involved in setting the rules for the multilateral system of global trade. Secondly, the EU negotiates its own bilateral trade agreements with countries or regional groups of countries.

Development assistance and cooperation, originally concentrated in Africa, was extended to Asia, Latin America and the southern and eastern Mediterranean countries in the mid-1970s. The underlying purpose is always to support sustainable growth and development in the partner countries, so that they have the resources to tackle and eradicate poverty. The Union has every interest in supporting its partners and encouraging them to be successful and prosperous.

The EU’s agreements with its partners around the globe cover not only trade and traditional financial and technical assistance but also economic and other reforms as well as support for infrastructure and health and education programmes. They also provide a framework for political dialogue and contain a clause which enables the Union to suspend or cancel trade or aid if the partner country violates human rights. Moreover, in 2003, the EU decided that all new agreements must include a clause in which its partners commit themselves to the non-proliferation of weapons of mass destruction.

The EU has to make sure that the different aspects of its external policies are consistent with each other and convey a clear overall message. To help achieve this, it appointed a High Representative for foreign and security policy in 1999. In June 2004, EU leaders agreed in principle to create the post of EU foreign minister.

For self preparation: relations between the EU and the CIS, relations between the EU and North American countries.