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Every official speech about the EU and Latin America should start by paying tribute to the excellent relationship. Indeed, this reflects the current situation and, what is more important, a relationship that has been continuously improving over the years. But we should not tempt us to be satisfied with what has already been achieved.

Only those who deal regularly with Latin America know how versatile this continent is. But this fact only seems clear to those who are already involved. As a consequence, chances are missed by companies of all sizes.

The states of Latin America have learned from the major crises of the past decades. This leaves most of them now in a better position than those countries that once taught them i.e. European countries. They benefit from the high commodity prices, as well as the formation of a well-funded and consuming middle class. Thus these markets offer opportunities for virtually every kind of product: from consumer goods to capital goods, financial products and various services.

In particular the raw material sector of these countries offers tremendous opportunities to European high-tech countries to invest. The mining industry in Latin America is one of the largest in the world. In addition to large corporations, hundreds of small and medium-sized enterprises (SME) have been successfully doing business in this branch for many years. But only few of the so-called "hidden champions" ―highly specialized manufacturers that are market leaders in the globalized world― take the step beyond a simple representation or logistics office. They do not move parts of their production to the consumer countries or drive forward technology developments with local partners.

What we need is strategic cooperation that covers the whole value chain: from exploration, mining, processing, and transport to mine closure and environmental obligations. Simultaneously, highly productive, resource-efficient technologies have to be ensured, know-how transferred and local actors involved closely in the search for new solutions. It is also important to find short-term models that create stronger attachments to the raw material suppliers through strategic partnerships, to ensure access to necessary material for high-tech manufacturers.

A very different but equally important sphere of ​​action is education. Traditionally, Latin America was oriented towards Europe due to the history of immigration, but today, Europe has lost its vanguard role when it comes to future issues. Students and scientists first look towards the United States, more and more to Asia, and decreasingly to Europe.

It is up to us, the countries of Europe, to show the young generations of Latin America how innovative the economy and society of the “Old Continent” are. Germany especially has a lot to offer, from its system of dual vocational education and training to its powerful research collaboration and model of globalized and innovative SMEs.

Europe must become more visible, offering role models for democracy, freedoms and the rule of law in which education is a factor of social integration and in which networks of companies, universities, public and private actors create an attractive environment for creativity, research and development. Therefore it has to look beyond its own burning issues and actively reach out to the Latin American countries.

Cornelia Sonnenberg is General Manager of the German-Chilean Chamber of Commerce and Industry (CAMCHAL) and member of the Global Council of DEinternational, the business center network of German Chambers worldwide.

December 22, 2011

Raquel de Caria Patrício, School of Social and Political Sciences, Bronze Contributor (15)

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If Europe has got a lot to offer to Latin American countries, nowadays the Latin American countries have got even more to offer to the European partners, which live their worst ever crisis. Latin American countries are conscious of their new value to Europe. So, it is difficult to conceive a partnership between them in which the Latin American countries get satisfied with an agricultural products export model, as it has been proved by the lack of satisfaction of those countries with the structure of the relations they have established with China. The process of de-industrialization through which those countries are going nowadays has worried Latin American leaders, who have already taken measures to avoid it. For example, the restrictions that the Brazilian Government has already imposed on the sale of large properties to foreigners, in 2010, followed this year by similar projects already presented to the Legislative, both in Argentina, and by the Uruguayan Executive. These leaders aren`t for sure interested in repeating the same model with the EU anymore. Their countries have done it during the colonial and post colonial eras. Today, Latin American countries like Brazil are interested in the European technology. But not at any price as it happened decades ago. Europe has got this advantage: European countries have got something that Latin American countries want to have and are willing to exchange. This is a good starting point, but for that Europe must leave behind the paternalistic development approach to Latin America and accept a new model based on horizontal exchange. That`s why all the arguments that I have tried to present in the comments made so far go into the same direction: the EU must make use of the Latin American needs and desires for technology, but those countries have nowadays a different kind of dependence; a dependence that somehow allows them to choose among different possible partners, and in this search the winner will be the partner that offer the Latin American countries better conditions in exchange. The best that the EU has to do is to make the Common Agricultural Policy more flexible, in order to put an end to the protectionism that hampers the Latin American exports of commodities to the European Union.

Tags: | EU | Latin American countries | dependence | technology |

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