The European Union plans to invest its capital in sectors of the Latin American economy, such as "green energy," with the aim of countering Chinese influence in the region, Euronews has reported.
The Chairperson of the European Commission, Ursula von der Leyen, announced that the EU will provide investments of €45 billion during a meeting of business representatives from both sides of the Atlantic and ahead of the EU-Latin America Brussels Summit. The EU intends to invest its capital in specific sectors, including "green energy," as part of its efforts to counter Chinese influence in the region. Another reason for this investment is that Europe requires resources, and South America holds 85% of the world's lithium reserves, among other rare resources.
"Today, we want to discuss how we can further connect our people and businesses, reduce risks, strengthen and diversify our supply chains, and modernize our economy in a way that reduces inequality and benefits everyone. All of this is achievable if an agreement between the EU and Mercosur is concluded and implemented. We aim to resolve any remaining disagreements as soon as possible," Von der Leyen stated.
The Mercosur bloc includes Brazil, whose President has shown readiness to lead his country in working towards the ratification of a trade deal with the EU. He also responded to the EU's demand for an additional document with high environmental criteria to halt deforestation in the Amazon basin. Luiz Inácio Lula da Silva considers such a requirement unreasonable, as it would harm the local population.
Lula da Silva stated:
"Everyone knows that Brazil will contribute to solving the climate issue. We have committed to ending deforestation in the Amazon by 2030. But in the current debates, we urge the European Commission to understand that the 50 million inhabitants of the South American Amazon need decent and dignified conditions for their survival."
In its pursuit of trade and economic cooperation with Latin America, the European Union considers not only environmental concerns but also the interests of its agriculture. Countries like France and Austria are concerned about their markets being flooded with cheap, low-quality Latin American products.
Comments (0)