Interregional co-operation in the North-South dialogue : Latin America and the European Community

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EUROPEAN POLICY UNIT

E U I W O R K I N G P AP E R No. 88/349 IfjTER-REGIONAL CO-OPERATION

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IN TUfrfcORTH-SOlTH DIALOGUE

and the European Community

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M a s s im o PANEBIANCO

BADIA FIESOLANA, SAN DOMENICO (F I)

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(c) Massimo Panebianco Printed in Italy in June 1988 European University Institute

Badia Fiesolana 1-50016 San Domenico (Fi)

Italy © The Author(s). European University Institute. produced by the EUI Library in 2020. Available Open Access on Cadmus, European University Institute

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The European Policy Unit at the European University Institute was created to further three main goals. First, to continue the development of the European University Institute as a forum for critical discussion of key items on the Community agenda. Second, to enhance the documentation available to scholars of European affairs. Third, to sponsor individual research projects on topics of current interest to the European Communities. Both as in-depth background studies and as policy analyses in their own right, these projects should prove valuable to Community policy-making.

This paper by Prof. Massimo Panebianco of the University of Salerno is the outcome of a conference on the 'Structure and Dimensions of European Community Policy1, organised by the European Policy Unit on 11-13 June 1987 in

cooperation with the Europa Instituut of the

Rijksuniversiteit te Leiden and the Institut fur Integrationsforschung at the Universitat Hamburg and with the financial support of the European Commission.

Further information about the work of the European Policy Unit can be obtained from the Director, at the

European University Institute in Florence.

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Introduction

The process of transformation which the international structure has undergone over the last few decades at different levels - global, regional and local - has provoked forms of maladjustment or instability which even today can only be eliminated slowly and with great difficulty.

In the international political structure the three 'universal' values - western world, socialist world and non- aligned third world countries - co-exist and compete with a reality that is subjected to regional (sub- and inter regional) values linked to paths of political and cultural 'identity' which are unlikely to be recognized as 'global' values and which are opposed by distinct political-juridical manifestations (Panamericanism and Latin-Americanism, Europeanism, Africanism, Islamism, Arabism, Hinduism, Asiati.cism, etc.). In the same way, in the international economic structure the summa divisio of the world economy into industrialized countries and developing countries, with relative sub-divisions and graded classifications (newly industrialized countries, countries with a relatively lower level of economic development), stands up with some difficulty to a more detailed analytical comparison with the plurality of international economic areas of a regional, sub-regional and inter-regional character.

Furthermore, the international identity of Latin America in strictly juridical terms of international law and international political-economic organization law is posed as a 'variously-dimensioned' identity. Latin America claims

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complete autonomy of status, eluding the East-West dilemma, the western hemisphere 'triangle' (Europe-USA-Latin America) and the ’orthodox' third world; more precisely it claims global autonomy founded on a plurality of ‘partial capacities'. This phenomenon has difficulty in reconciling a plurality of values that are emerging or have arisen in the present international structure in which none of them can assume an omnivalent or dominating force for regional or local autonomies. Consequently, each international member claims full and unlimited autonomy in adhering to or resisting the rules or the prevailing conduct in the different political communities of international society.

In a similar context the presence of 'inter-regional systems' becomes legal, the connotations of which are more easily found in the international economic structure, since developing countries have devoted their maximum diplomatic- political efforts to it, also in the seats of international organizations.

The privileged status attained by these countries in the seats of international economic organizations (UNO, GATT, UNCTAD, UNIDO, etc.) has led to recognition of themselves inter se as developing areas and erqa omnes as entitled to 'generalized preferences' (commercial and for social- economic development).

From a juridical point of view, the so-called North- South and South-South dialogue is subjected to the provisions of the prevailing 'regional areas' and 'inter regional relations'. More precise and detailed regimes are encountered in the 'sub-regional sectors', the frequency and intensity of which are multiplied owing to the proliferation

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of medium-small states of 'post-colonial origin’, and of trans-national and trans-border relationships - often of ancient standing.

Latin America also eludes the separate North-South- South-South régime with which the comparative analysis of community features and international inter-state integration deals (comparative community law or comparative international integration law). Having said this, let us examine the present function and the possible integration process relations between the European Community and Latin America.

1. The present function of regional integration

Firstly, it is necessary to reflect on the present function and the present state of integration in the European Community and Latin America, as a preliminary to the subject of economic relations and co-operation with Southern American countries and with those of the Andean area and Central America in particular. Emphasis should once again be placed on the importance of the present moment, characterized by the extension of the European Community to include Spain and Portugal, and the simultaneous re-establishment of pluralistic democracy and participation in all (or nearly all) Latin American countries. As far as the Community is concerned, extension to the Iberian countries has coincided with an institutional reform which will make their life more practical and incisive in the sector of new common policy (industrial, regional and social development, science and technology) and

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in political co-operation in the ambit of foreign relations and international life. I refer in this regard particularly to the recent Single European Act (signed in February of last year), a symbol and expression of the present stage of strengthening the European construction in its relations with the present-day world. Latin America has thus been converted into a priority region in terms of community and national intervention, directed towards the co-operation and development of countries bound to Europe by a plurality of traditional ties and current growing interests.

On Latin America's side the return to democracy coincides with the pursuit of more diversified relations with other regional, political and economic areas.

The context of relations with the European Community assumes a special function in this pursuit. The forthcoming celebration of the V Centenary of the discovery of the American continent will also constitute an important date for contributing to the definition of Latin-American autonomy, as the summit of its dual dialogue; ‘vertical’ with the North-American area and ‘transversal’ with the European Community area.

It will also be up to Latin America to give the general sense of its foreign policy and of its return to democracy as an irreversible option for community democracy between states that are well integrated in their own political and economically autonomous regional community.

2. The inter-regional dialogue

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The European Community-Latin America dialogue has developed up until now at various levels in areas of co operation which have become more numerous and widespread.

Firstly, in the early seventies a diplomatic dialogue was initiated due to Latin-America's preoccupation over the development of the Community area as an impenetrable economic region directed towards Euro-Africa.

This developed in the form of meetings between groups of accredited ambassadors in the Community - GRULA - and between those of the Community states - COREPER - together with the European Community Commission. This dialogue, known as GRULA-COREPER, recorded a stage of greater common co-ordination of Latin America's foreign economy policy in the presence of other states and in the universal and regional international tribunes (LAES, or Latin American Economic System, set up by the 1975 Panama agreement and administered by annual meetings of the Latin American Economic Council). Although this diplomatic dialogue has frequently been given to protests and has assumed vindictive tones, and despite interruptions caused by diverging opinions (as for example in the case of the interruption that occurred during the armed Falkland-Malvinas conflict in the South Atlantic), it has continued along its original, and from some aspects, elementary lines.

Secondly, a parliamentary dialogue has been developed in the ambit of meetings between the European Parliament in Strasbourg and the Latin-American Parliament, an organization which is not envisaged by any particular treaty and which is of an interparliamentary nature since it is

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made up of delegations from national parliaments of democratic nations of the South American subcontinent.

The dialogue, which takes place every two years, has a clearly 'symbolic' function and is not without political effect at times of interruptions in the diplomatic dialogue caused by temporary conflicts or by difficulties in making effective progress. The analysis of economic and political relations which have developed during various inter parliamentary sessions (seven to date) has been centred on the subject of Latin-American autonomy and the consequent aim to diversify into other relationships aside from those, considered predominant, with North America.

Thridly, a ministerial dialogue which, up until now, for the reasons previously mentioned, has failed to find a global meeting place (nor at the present time does a general agreement between the Community and LAES appear likely in the near future).

Despite all this, partial agreements have been reached between the Community and the smaller groups of Latin American countries. Agreements of this type appear to reach beyond the negative effects of North-South opposition (which up to date has prevented an agreement with LAES) and East- West opposition (which has alienated all capacity for Latin- American action in the ambit of the inter-American organization which links it with the USA).

These are the co-operation agreements with the Andean Group and with the Central America Group, both of which have recently been finalized and are of particular significance for the individual agreement areas.

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They are Co-operation pacts {which, as is known, are midway between commercial pacts - ex art. 113 EEC - and real association pacts - ex art. 238 EEC).

They are identical to others stipulated in the ambit of the Euro-Arabian dialogue (Tunisia, Algeria, Morocco, 25.4.76, Egypt, Jordan, Syria and Lebanon 18.11.77) and South-East Asiatic relations (agreement with ASEAN of 7th May 1970). However, they cannot be compared with agreements such as that of Lome, drawn up with ACP countries (third convention of 8th December 1984).

These agreements have a dual political and economic value and are formally distinguished on the basis of the diverse external character they have assumed.

They are economic co-operation agreements in the strictest sense:

The Cartagena agreement of 17.12.1983 between the EEC on one side and the Andean Group and its member countries; Bolivia, Columbia, Ecuador, Peru and Venezuela on the other (cf. European Community Official Journal, 8.6.84, No L 153).

This agreement establishes a special type of co operation (commercial, economic, financial and technical) and in particular aims to overcome legislative inflexibility in these countries on the question of foreign investment.

The Luxembourg agreement dated 12.11.85 between the EEC on the one side and countries of the General Treaty of Central-American Economic Integration

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{Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama) on the other (cf. European Community Official Journal, 14.11.85, No L 292).

By contrast, the following are programmatic agreements for political co-operation, which have been drawn up in a simplified form and respect the organization methods and political dialogue process between Europe and Central America, which aim to avoid various 'political risks' present in this area:

The joint communiqué (29.9.84) of the meeting of Ministers of the European Community and Central American countries (San José, Costa Rica).

Countries of the Contadora Group (Columbia, Mexico, Panama and Venezuela) took part in the meeting which was called to mediate in the political-military conflict that has arisen between Honduras and Nicaragua and to establish security in Central America.

The joint political communiqué issued by the Conference of Ministers at Luxembourg (12.11.85) on the political dialogue and economic co-operation between countries of the EEC, Spain and Portugal and countries of Central America and the Contadora group.

This agreement established inter-regional dialogue rights and decided on 'institutionalization' (to call meetings at regular intervals in such a way that they would not be an impediment as regards the competence of other international organizations to which these countries belong).

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3. Areas of co-operation

The areas of possible inter-regional co-operation between the European Community and Latin America should take into account the negative conditions that still exist at regional level and the positive conditions that have already developed at sub-regional level. The prospects of an inter regional dialogue at CEE-LAES level should bear in mind that the following negative and restrictive elements still remain:

limited autonomous action by the two partners due to the obligations each has to the United States in the ambit of the American States and NATO organization, with consequent transfer of the repercussions of the dual East-West and North-South conflict to the Euro-Latin America scenario;

preferential Community policy where ACP countries are concerned as opposed to the non-preferential policy adopted in the other continental and sub continental areas;

resistance by LAES to defining itself as the most valid interlocutor for strengthening the bonds of inter-regional co-operation and for the co ordination and convergence of the policy of sub regional economic integration organizations, in consideration of just and fair economic relations and as a contribution to a general policy of world peace. © The Author(s). European University Institute. produced by the EUI Library in 2020. Available Open Access on Cadmus, European University Institute Research Repository.

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Conversely, the present reality of sub-regional dialogues shows how all the conditions mentioned can be favourably contrasted by new positive and stimulating factors:

valid political-juridical tradition of community democracy as a characteristic element of the democratic process of European and Latin American states and its integration in the regional community of the states;

. - utilization of economic, industrial, financial, scientific and technical co-operation agreements for a wider reciprocal opening of both markets and special attention to joint investment development programmes in the specific sectors;

double level of agreements between EEC and groups of countries or complementary countries considered individually with states considered separately (see EEC agreements with Brazil, Mexico and Uruguay) from agreements with individually considered groups of countries;

parallelism of economic agreements with those of political co-operation, in consideration of the common objectives of internal democratic development, peace and international security, in accordance with the United Nations Charter.

X consider the area for co-operation which has been opened up in relations between both sides of the Atlantic to be very important. © The Author(s). European University Institute. produced by the EUI Library in 2020. Available Open Access on Cadmus, European University Institute Research

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It corresponds to the highly mediative (or intermediative) nature of the two European and Latin- American authors of the dialogue. The transversal dialogue is ideal for the development of the present already- identified areas of co-operation and presents an opening for new inter-regional prospects through agreements between state groups or associations of States (inter-community or inter-group agreements).

A favourable opinion can therefore be given on the contribution made by this kind of co-operation to political development, national democratic processes and higher processes of community democracy in the continental area of either side, each of which characterizes democracy in the latter half of the 20th century.

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