Narayan AmmachchiThe European Union (EU) pledged to invest 46 billion euros (US$50 billion) in Latin America and the Caribbean over the next four years in an apparent bid to diversify its supply chains away from China.
The announcement was made at the recent EU-CELAC summit, the first of its kind since 2015.
What was the outcome of the 2023 EU- #CELAC summit?https://t.co/eYRI2FZB1d
@fjavilopez @jordi_canyas @hermanntertsch @androulakisnick @HerbertDorfmann @beatamk— European Parliamentary Research Service (@EP_ThinkTank) July 28, 2023
The funding will be provided by the EU through the Global Gateway Investment Agenda, a new program created to support equitable and sustainable development in allied nations worldwide.
To assist the region in lowering its dependency on fossil fuels, the EU will fund energy efficiency initiatives in addition to renewable energy projects like wind and solar farms.
Furthermore, private European corporations will be encouraged to invest in Latin America’s digital infrastructure, such as broadband internet and telecommunications networks.
The summit’s resolution also talks about financial assistance in education, healthcare and social protection, but the text does not provide any specifics.
Europe has yet to make progress towards a free trade agreement with Mercosur, the biggest trade block in South America.
There has also been no word from European officials on when the EU would ratify the FTAs agreed to with Brazil, Argentina, Paraguay and Uruguay in 2019.
The EU’s investment is also seen as a way to counter China’s growing influence in the region.
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