Separate meetings were held between the leaders or ministers of the EU and those of the Andean Community, Central America, Chile, MERCOSUR and Mexico. In addition the 2nd Spain-Caricom Summit meeting was held.

Europe seems intent on following a "stages" approach to its relations with the different sub-regions. Stage 1 is the negotiation and implementation of a political and cooperation agreement. Stage 2 advances this to an Association Agreement, which provides the framework for Stage 3, negotiation of a free trade agreement (FTA).

Central America and the Andean Community had both hoped to launch free trade negotiations with the EU at Madrid. But Europe limited its commitment to a political and cooperation agreement that would lay the basis for the negotiation of Association Agreement, including an FTA, in 2004. The EU also tied this to the completion of the Doha (WTO) Work Programme for a new round of trade liberalization talks.

Mercosur (the Southern Cone Common Market) has been at Stage 1 since 1995, when it signed a Framework Cooperation Agreement with the EU. But further progress has been stalled by the Brazilian and Argentine financial crises of 1998 and 2002 respectively. Madrid produced little more than a commitment for a ministerial level meeting later in 2002.

Chile's Cooperation Agreement with the EU dates back to 1996 and Madrid confirmed the conclusion of its Association Agreement and its arrival at Stage 2. This may have been the most tangible single achievement at the EU-LAC Summit of 2002.

Mexico reached Stage 2 in 2000, when its Association Agreement with the EU came into force. Trade liberalization between Mexico and the EU is already under way, and bilateral trade grew by 28.6 percent in the first 18 months of the Agreement.

Caricom and the Dominican Republic have their own special arrangements with the EU under the Cotonou accord with the ACP countries. Negotiations on a free trade agreement, known as Regional Economic Partnership Agreement (REPA), are due to start later this year.

The EU's long-term objective is to place its trade relationships with all of Latin American and the Caribbean on the basis of reciprocal free trade within a WTO-regulated multilateral system. Completion of the Doha Work Programme figures prominently in all the Summit Declarations and can be seen as one of the not-so-hidden agendas of the event.

Given the Cotonou accord, Caricom's main interest at Madrid was the Summit meeting with Spain, which is interested in developing its relations with the non-Hispanic Caribbean. Spain has confirmed its intention to pursue membership in the Caribbean Development Bank (CDB). A Spain-Caricom Joint Commission was also established, which will hold its first meeting later this year.

Spanish language training is one obvious area of cooperation. The ACS-CDB-OECS language training project, signed at the recent CDB Annual Meeting, could be both a model and a basis for expanded Spanish language training in the Anglophone Caribbean. The pilot project will benefit the member countries of the Organisation of East Caribbean States (O.E.C.S.) and is aimed at teachers, officials and the private sector.

Professor Norman Girvan is Secretary General 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.

(ends)

May 27, 2002