IPDAL publishes a report by the Economic Commission for Latin America and the Caribbean (ECLAC), the European Union and the EU-LAC Foundation on the bi-regional relationship.

The changes that the world has experienced in recent years have brought new social, economic, institutional and digital demands and challenges, opening space to rethink cooperation between members of the Community of Latin American and Caribbean States (CELAC) and the European Union.

Two major changes are notable in this new scenario, the first refers to Brexit and the second to the policies adopted by the new North American government, starting in 2017.

The impact of these changes affects each region differently and, in an increasingly globalized economic system, characterized by multilateral relations and cooperation, it is essential to analyze the world scenario to talk about perspectives for the development of Latin America and the Caribbean.

Even with the turbulent global scenario, according to the CEPAL report, there are signs of accelerated growth in the region. The world economy, in 2017, grew 3.2%, the highest growth rate since the 2008 crisis and recovery has been observed in both industrialized countries and developing economies.

In general, for both the European Union and Latin America, the prospects for trade growth are favorable and the increase in internal and external demand has favored the increase in Latin American GDP. In the first quarter of 2018, this economic growth was supported by private consumption and investment, with the protagonists being Panama, Granada, Nicaragua, Paraguay, Honduras and the Dominican Republic, economies that showed greater dynamism.

On the other hand, the European Union economy has also grown above expectations and in the third quarter of 2017 reached a value above 0.7%, suggesting a continuous and lasting trend. Currently, all European Union economies are entering their fifth year of recovery and a positive growth rate is expected for all member countries.

The European Union remains Latin America and the Caribbean’s third largest trading partner, representing around 14% of the region’s imports. In 2017, trade between Latin America and the Caribbean and the European Union reached 231 billion dollars, 9% more than the previous year.