The Diplomat
The Minister of Foreign Affairs, José Manuel Albares, warned yesterday that Spain and the EU should promote and take advantage of the economic recovery capacity of Latin America, a region that, as a “major world producer” of raw and agricultural materials, could occupy “economic spaces seriously affected by the war in Ukraine”.
During his telematic intervention at the closing of the seventh edition of the Meeting of Multi-Latin companies organized by the Menéndez Pelayo International University (UIMP) in Santander, Albares warned that the COVID-19 pandemic has “disproportionately hit” Ibero-America and the war caused by Russia’s “illegal aggression” against Ukraine will further aggravate the situation and “result in an increase in poverty, food insecurity and an increase in inequalities”.
For this reason, he continued, it is necessary to act “urgently to mitigate the consequences of the pandemic and lay the foundations for a better future”, in a “very adverse context” characterized by “new interruptions in supply chains”, by an “increase in the prices of energy and fertilizers, fundamental for Latin America, and of food” and by a “slowdown in economic activity and increases in inflation”.
In spite of all this, the minister affirmed that “windows of opportunity” are opening up for Latin America in the current international situation. Latin America is “one of the world’s major producers of raw and agricultural materials” and, therefore, is in a position to “occupy economic spaces seriously affected by the war in Ukraine” and to benefit, therefore, from a “relief in the supply chains”, he declared. In any case, he warned, for this to happen, it is necessary to have “more private sector participation” and to establish “safe regulatory environments” and public policies that know how to encourage the economy. “Spain will be involved in all of this, so that Latin America is in a process of recovery,” Albares said.
According to the minister, the EU should look more towards Latin America, which is “by far the most Euro-compatible region on the planet”. In this sense, he warned, the EU agreement with Mercosur and the updating of the trade agreements with Chile and Mexico are “absolute priorities” because they represent a “spearhead” in the “strategic deepening of the EU” towards Latin America in a geopolitical context “as complicated” as the current one.
Spain is “the great supporter, within the European Union, of trade and association agreements with the region”, he said. For this reason, he said, one of the objectives of the Spanish Presidency of the Council of the EU, in the second half of 2023, will be to put Latin America on the European agenda and he himself will bring the subject of the agreements to the next meeting of the EU Foreign Affairs Council, to be held on Monday, July 18 in Brussels.
At the same event, Albares highlighted the importance of multi-Latin companies (companies born in Latin America but which have grown beyond their borders), which represent “one of the most outstanding success stories in recent years”. They are “emerging multinationals belonging to strong investors that have not stopped their activity during the pandemic, that are linked to Spain and the United States and that play a fundamental role in the progress of the region”, he added.
