Spain’s Socialists and Democrats (S&D) member Ramon Jauregui has stated that US President Donald Trump’s administration will be an “excellent” opportunity for the European Union (EU) to improve its relationship with Latin America.
Federica Mogherini is the chairwoman of the European Parliament’s Latin American delegation (DLAT). She sent a letter to the foreign policy chief of the EU. In the letter, she argued that the EU should use the chance of Trump’s likely nationalist/protectionist approach to foreign policy to create a “firm” policy in the region.
Jauregui represents the Socialist Workers’ Party (PSQE). He said that the EU would be in a good position to take advantage and fill the vacuum by strengthening the political/commercial/development/social pillars of the EU’s Strategic Association with both Latin America and the Caribbean regions.
The Spanish politician encouraged the EU to end its association agreement talks with 4 of the Mercosur nations. They include Argentina, Brazil, Paraguay, and Uruguay. He also argued that it should modernize the whole agreement with Mexico and begin the reform process of the group’s Chile agreement.
He stated that Brussels should end the ratification process of various association agreements with 6 Central American nations. That includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. Then they’ll be fully implemented instead of being in the current provisional state.
The Spanish politician also promoted EU having relations with the nation of Cuba. It was boosted recently. However, he argued that it should be quickly advanced. The MEP also stated that the EU should totally support the peace process of Columbia. He also argued that the EU should boost is apresence in the South American country.
The protectionist rhetoric by President Trump could have a major effect on various developing countries that survive on money from the US. During the campaign season last year the Republican nominee supported an America-first and pro-growth economic strategy.
The policies including tax cuts and boosted infrastructure spending should stimulate the US economy. However, many economic experts believe that these protectionist trade policies could damage global growth and especially in emerging markets. That would include many countries in the Americas.
Trump has already decided to revisit and possibly withdraw from the North American Free Trade Agreement (NAFTA). This would have a big effect on Mexico in particular. It exports one-quarter of its gross domestic product to the US.
Investors are also worried about the original withdrawal/re-negotiation of various trade agreements could cause other nations to pass tariffs on US goods as a reaction. That would, in turn, result in a trade war.
Trump announced that he would sign an executive order that would re-negotiate NAFTA, which involves the US, Canada, and Mexico. He promised to eliminate the trade agreement during last year’s presidential campaign.
Trump also signed an executive order for the US to leave the Trans-Pacific Partnership (TPP). The trade agreement includes about a dozen Pacific Rim nations. However, the move hasn’t been ratified by the US Congress yet. Trump wishes to negotiate various trade deals with those nations.