These meetings form part of a new European vision of its relations with LAC, characterised first of all by a shift in the European Union's policy toward reciprocal trade agreements, which was evident in the nineties with the realisation of Economic Partnership Agreements (EPA's) with Mexico, Chile and more recently with MERCOSUR. This new vision was driven by the need to create a counterbalance to the influence exercised by the United States within the hemisphere and by its possible consolidation through the establishment of the Free Trade Area of the Americas (FTAA).

The new approach involves a change in the balance of relations between the European Union and the countries of Latin America and the Caribbean, as a result of a long term coordination movement toward building relations in the framework of profound partnerships implemented through EPA's. The latest additions to this process are proposals to sign such agreements with Central America and the Andean Community announced during the Madrid Summit, with which virtually all of Latin America would have signed or would be in the process of entering into EPA's with the EU.

It is with this in mind that the 3rd EU-LAC Summit is seeking to strengthen the development of relations between both regions and to establish itself as one of the most important forums at the international level in the economic sphere, in the political arena and also in the area of co-operation.

Furthermore, the meeting takes place at a decisive moment in the region's trade agenda. The failure of the WTO's Ministerial Meeting in Cancun has placed added pressure on bilateral and regional negotiations. These pressures have already been felt in the FTAA negotiations, weakening them considerably and transforming the agreement into what is referred to by some as a "light FTAA".

Without a doubt, the progress of the development agenda proposed in Doha will hold a key place in the dialogue of the 3rd European Union - Latin America and the Caribbean Summit. Beyond the good intentions expressed in Madrid, the solidity of the commitments made at this Summit could provide a decisive impetus toward multilateral negotiations. For the Greater Caribbean and Latin America in general, this could serve as an opportunity not only to promote their trade agenda, but also for economic co-operation in supporting their liberalisation efforts. For its part, the European Union could consolidate its position as an interlocutor with developing countries in different negotiating fronts.

Revitalising the multilateral process, consolidating co-operation relations, together with political dialogue, are guaranteed as essential ingredients for the third meeting between the EU and Latin America. It is in this context that it has become crucial for our region to take the initiative with a positive agenda that would incorporate the region's development objectives in the framework of what the EU has called a "strategic partnership".

Juan Carlos Martínez-Piva is Trade Advisor of the Association of Caribbean States. The views expressed are not necessarily the official views of the ACS. Feedback can be sent to mail@acs-aec.org

January 27, 2004