The EU Celac Summit: A Delicate Balancing Act Over Trade, Environment and Democracy
Roughly a year earlier, as Spain readied to steer the rotating presidency of the European Council, Pedro Sánchez sat down with Charles Michel, the council president. He expressed a clear wish to seize the moment by arranging a summit between the European Union and the Latin American and Caribbean states gathered in Celac. After eight years without a top-level encounter, largely due to disagreements among American nations, the sense of urgency was unmistakable. Europe aimed to keep politically and economically close partners within reach and to slow the advance of rivals. A central goal was safeguarding resilient supply chains and value chains. Sánchez conveyed to Michel that the talks should occur in Brussels to emphasize European unity, and government sources indicated Michel agreed.
The summit was slated to begin over the upcoming Monday and Tuesday, 17 and 18 July. Moncloa framed it as a near personal commitment from the president. Yet several critical issues remained unsettled. First, some participating countries appeared to exhibit questionable or weak democratic practices, including Cuba, Nicaragua, and Venezuela. The European Parliament pressed for addressing human rights concerns tied to these nations at the gathering. Second, the economic agenda, which formed the centerpiece, did not unfold as smoothly as organizers had hoped, leaving many expectations unmet.
The EU free trade agreement with Mercosur, grouping Brazil, Argentina, Paraguay, and Uruguay, stood out as a pivotal case. If ratified, a historic accord long in negotiation for two decades would unlock duty-free exchanges of meat, fruit, vegetables, minerals, and a broad array of other goods.
When Luiz Inácio Lula da Silva assumed Brazil’s presidency after Jair Bolsonaro, Brussels welcomed the prospect of ratification as a long-blocked path due to anti-Amazon policies. The door reopened for progress in talks. Yet France raised concerns again, citing environmental standards and divergent rules between European farmers and Latin American producers on matters such as pesticide usage, food safety, and animal welfare. Emmanuel Macron, effectively, blocked ratification until an addendum, a side-letter with fresh requirements, was agreed upon.
One addendum would introduce sanctions for breaches of environmental rules. Moncloa sources suggested Spain opposed the sanctions plan, while Lula argued that signing an agreement based on penalties would undermine trust. France stayed firm as well, with Olivier Becht, the French trade policy minister, insisting that beef or other products from deforested lands could not enter the EU. The Spanish and French officials argued that EU limits on European producers should be balanced against the desire to import Latin American goods produced under different social and environmental conditions. A second sticking point involved mirror provisions obliging Latin American manufacturers to meet the same EU standards, a demand Paris would not concede easily.
Meanwhile, Spain sought to broker a path forward. Government sources said Madrid would not block progress on certain details and would press ahead with active diplomacy with Mercosur and related partners. Lula had met with Commission president Ursula von der Leyen, who presented a proposal carrying a strong Spanish imprint. Mercosur was expected to respond on whether to accept the side letter and move toward ratification. Brazilian officials indicated a decision would come within weeks, according to EFE.
300,000 million investment plan
The corridors of Brussels were set to buzz with bilateral talks in the coming days, though officials cautioned that the full picture might take longer to resolve. Spain held the presidency of the Council, and progress could be shaped by Argentina’s presidential election on October 22, 2023. A central milestone at the summit would be the business forum where investment projects across the region would be discussed. The Global Gateway plan, which aims to mobilize up to 300,000 million euros for investment, seeks to promote green development and digitalization in Africa and Latin America. Widely seen as Europe’s response to the New Silk Road, it strives to align South-South development with Western interests.
NGO representatives questioned the effectiveness of funneling funds mainly through the private sector. Several major Spanish companies with strong Latin American ties were expected to participate in the forum, including Telefónica, Iberdrola, Acciona, Balearia, Santander, BBVA, and Hispasat, according to government sources.
Commonwealth of Latin American and Caribbean States
CELAC counts members such as Antigua and Barbuda, Argentina, Bahamas, Barbados, Belize, Bolivia, Brazil, Colombia, Costa Rica, Cuba, Chile, Dominica, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, the Dominican Republic, Saint Kitts and Nevis, Saint Vincent and the Grenadines, Saint Lucia, Suriname, Trinidad and Tobago, Uruguay, and Venezuela.
Political tension for EU Celac summit
The presence of blocs with mixed democratic practices has been a major friction point, as has the potential participation of Ukrainian President Volodymyr Zelensky. Some regional partners worried that ties with Moscow could complicate the process. The idea of direct dialogue with Kyiv was floated to reassure skeptical nations while ensuring they stayed informed about the proposed peace plan. Cuban President Miguel Díaz-Canel confirmed attendance, while the Cuban government accused the EU of a lack of transparency and tactics seen as threatening the summit’s success. Moncloa officials said Nicaragua and Venezuela might send a representative, possibly a foreign minister rather than a head of state. The European Parliament condemned alleged interference by Nicolás Maduro in Venezuela’s 2024 elections, urging respect for democracy and fundamental freedoms in the summit’s final declaration. Moncloa signaled that such a declaration would likely be agreed by the participating states as written, leaving little room for independent modifications. [Citation: EU Celac context and political dynamics]”}{