Past Event

EU – CELAC Economic Forum – Channels for a joint future

On 11 October Bruegel together with GIGA and Real Instituto Elcano will organise a conference on relations between the EU and the Community of Latin American and Caribbean States.

Date: October 11, 2017, 8:30 am Topic: Global Economics & Governance

VIDEO & AUDIO RECORDINGS

Summary

Welcome Remarks and Keynote Speech 

Paola Amadei, Bert Hoffmann, Emilio Lamo de Espinosa, and Guntram Wolff expressed pleasure in joining forces for the forum, welcomed participants and wished fruitful discussions, and put forward some reflections. They pointed out the high intensity of EU-CELAC connections, not only in terms of trade and investment, but also from a broader historical and geopolitical perspective. Thus, in consideration of the changing global environment, there are solid foundations and profound incentives to work more closely together.
Edita Hrdá was thankful for the organization of the event, and followed with a keynote speech, which listed recent developments in EU-CELAC relations, and evaluated possible avenues for increased cooperation.
About investment, it was highlighted the importance of providing legal certainty for investors, which suggests that bi-regional cooperation should also focus on a more stable, transparent and predictable regulatory framework. Supporting economic growth was also pointed out in many different aspects (e.g., investment in infrastructure and logistics). However, growth alone was deemed not enough to maintain social gains and reduce inequalities. Therefore, cooperation should also aim at social cohesion.
Moreover, since Latin America is the most urbanized region in the world, it was suggested that there is scope for further collaboration on sharing knowledge and experiences on the topic. A final look was also given at the influence of the US and China, given the growing importance of the latter and the steps back from trade agreements of the former. In particular, this was seen as a good opportunity to think about the future of EU-CELAC relations.
Finally, the discussion stressed once more that relations between countries and regions are ultimately based on relations between people, so it is indeed important to approach local communities in other countries, for example in the US and Canada.

The Geopolitical Channel 

This session pointed out that CELAC countries face an external sector trap, as they are mostly commodity exporters and manufacturing importers. The implicit problems, given high import elasticity to income, are the imbalances that would be created by more openness, which would be difficult to reverse by devaluation because of the quite inelastic nature of CELAC exports; historically, trends have been reversed via economic contractions. Therefore, there is a need for CELAC countries to find new exports and markets. This move would mitigate negative effects of trade, and provide more flexibility to adapt to new trends of commerce.
This is also why it is important to compensate, in trade agreements, more openness with more commodity exports, which is indeed a delicate point in the negotiations between the EU and MERCOSUR. Another possible solution would be to direct investment towards new businesses. More openness might also hurt existing manufacturing industries in CELAC, especially in terms of labor. This suggests that collaboration might also focus on education system that would build skills and competences to be competitive at the global level.
In general, a need to specify incentives and directions for trade and investment was highlighted, especially considering the current window of opportunity for the EU and CELAC to strengthen their partnership and make a stronger case for multilateralism at the global level. Finally, the discussion also identified various topical issues, including, among others:
• Brexit, which would affect EU-CELAC relations, especially those with English-speaking Caribbean countries;
• the emergence of China as an investor in CELAC. However, it was noted that China’s investments are different from those of the EU, which are more sophisticated and mainly brought by private businesses;
• higher political determination, which is necessary to set better incentives for investors

The People Channel 

In the spirit of cooperation, this session was held in Spanish, and recognized that migration matters for the EU, especially for its labour force. Thus, a long-term plan to foster integration is needed, as it is becoming more difficult to cope with the increasing discontent at the social and political levels. Given the structural nature of this phenomenon, international policy was deemed more capable of producing results. This in turn should focus on new rules and mechanisms in agreements between origin and destination countries, keeping in mind that most migrants are not refugees, are coming to stay, and seek rights and opportunities.
From the side of origin countries, the discussion pointed out the importance of a correct balance between brain drain and remittances, and that policy tools should create the right incentives for circular migration. In particular, considering the transfer of knowledge, the traditional model of scholarships and return might not be appropriate anymore, as there are high risks of people staying abroad, or not being able to enter the labour market, especially in sectors not as well developed as in the host country. Therefore, there is a need to better foster circularity of flows, for example through transnational networks of research institutes and post-graduate programs, as well as promoting development and opening migration offices locally.
The discussion stressed that the ultimate goal should be the integration of migrants in labour markets and social life, in a way that population can see the benefits. To do so and make migration a two-way street, more dialogue is advisable to share best practices and expertise, as well as a more organized legislation. Finally, it was highlighted that migration also concerns North America and intra-CELAC integration, implying that efforts should be made in different directions.

The Technological Channel 

The main subject of the dialog was the discussion of challenges we face in the digital world and solutions we can offer. Connectivity, cybersecurity, privacy issues were covered. To cope with the challenges imposed by the digital world, one needs, first of all, to get the description of landscape situation of the Latin American region.
We have recently seen a substantial growth in the mobile broadband average, where Costa Rica is the leader. But while mobile telephony revolution took place and there was a significant rise in the number of the Internet users, 53% of Latin American people do not use Internet and 66% of households do not have Internet connection. Therefore the effective use of the Internet is instrumental as despite the reduction in prices it is still not fully accessible and ICT services are not universally available. When it comes to cybersecurity issues, Brazil is the most impacted country in Latin America. This brings our attention to the fact that regulatory and legal measures are not harmonized. All Latin American countries have privacy or data protection framework, not all of them consider new services and technologies.
Clearly measures are needed. We should support the growth of technology and ensure that we benefit from it. To achieve this target, we need to take the following steps, to mention a few:
– close the digital divide in Latin American countries, which is a work in progress,
– apply appropriate public policies,
– construct a new reasonable taxation scheme,
– cooperate internationally with unions, governments and companies,
– achieve higher transparency in data usage both by individuals and governments,
– make technology more democratic,
– shift a focus of trade agreements to the whole ecosystem rather than just Telecom regulation.

Event Report

Research_Report_EU_CELAC_where_do_we_stand

EVENT MATERIALS

Presentation by Maryleana Méndez Jiménez

Presentation by Levy Yeyati

Schedule

Oct 11, 2017

8:30-9:00

Check-in and welcome coffee

9:00-9:30

Welcome remarks

Paola Amadei, Executive Director, EU-LAC Foundation

Bert Hoffmann, Head of Berlin Office, GIGA

Emilio Lamo de Espinosa, President, Elcano

Guntram B. Wolff, Director

9:30-10:00

Session I. - Keynote speech

Chair: Guntram B. Wolff, Director

Edita Hrdá, Managing Director Americas, European External Action Service (EEAS)

10:00-11:30

Session II. GEOPOLITICAL Channel: EU- CELAC trade and investment relations in a changing and multipolar world

Chair: Bert Hoffmann, Head of Berlin Office, GIGA

Keynote:

Eduardo Levy Yeyati, Dean, Universidad Torcuato Di Tella (UTDT) School of Government and Coordinating Director of the Argentina 2030 Program of the Presidency of the Nation

Panel:

Paulo Carreño King, Director General, PROMEXICO

Gonzalo Gutiérrez, Ambassador of Peru to the Kingdom of Belgium, Grand-Duchy of Luxembourg and to the EU

Mario Pezzini, Director, OECD Development Centre and Special Advisor to the OECD Secretary-General on Development

Everton Vargas, Ambassador of Brazil to the EU

11:30-11:45

Coffee break

11:45-13:15

Session III. PEOPLE Channel: Diaspora and migration as a path for knowledge transfer

Chair: Paola Amadei, Executive Director, EU-LAC Foundation

Keynote:

Ramón Jáuregui, Member of the European Parliament

Panel:

Luicy Pedroza, Research Fellow and Speaker Research Team, GIGA Institute of Latin American Studies

Mario Soares, Member of the European Economic and Social Committee - EESC

Dylan Vernon, Ambassador of Belize to the EU

13:00-14:00

Lunch

14:00-15:30

Session IV. TECHNOLOGY Channel: The challenges of the digital world- Security, privacy and public finance

Chair: Angel Badillo, Senior Research Fellow, Real Instituto Elcano

Keynote:

Maryleana Méndez Jiménez, Senior Expert at ASIET

Panel:

Linda Corugedo Steneberg, Director, Policy Strategy and Outreach, European Commission, DG CONNECT

Gabriel Lopez, Regulatory Affairs Director, Microsoft

Enrique Medina Malo, Chief Policy Officer, Telefónica

Gonzalo de Castro, Senior Executive, Finance, CAF

15:30

End

Speakers

Paola Amadei

Executive Director, EU-LAC Foundation

Angel Badillo

Senior Research Fellow, Real Instituto Elcano

Paulo Carreño King

Director General, PROMEXICO

Linda Corugedo Steneberg

Director, Policy Strategy and Outreach, European Commission, DG CONNECT

Gonzalo de Castro

Senior Executive, Finance, CAF

Gonzalo Gutiérrez

Ambassador of Peru to the Kingdom of Belgium, Grand-Duchy of Luxembourg and to the EU

Bert Hoffmann

Head of Berlin Office, GIGA

Edita Hrdá

Managing Director Americas, European External Action Service (EEAS)

Ramón Jáuregui

Member of the European Parliament

Emilio Lamo de Espinosa

President, Elcano

Eduardo Levy Yeyati

Dean, Universidad Torcuato Di Tella (UTDT) School of Government and Coordinating Director of the Argentina 2030 Program of the Presidency of the Nation

Gabriel Lopez

Regulatory Affairs Director, Microsoft

Enrique Medina Malo

Chief Policy Officer, Telefónica

Maryleana Méndez Jiménez

Senior Expert at ASIET

Luicy Pedroza

Research Fellow and Speaker Research Team, GIGA Institute of Latin American Studies

Mario Pezzini

Director, OECD Development Centre and Special Advisor to the OECD Secretary-General on Development

Mario Soares

Member of the European Economic and Social Committee - EESC

Everton Vargas

Ambassador of Brazil to the EU

Dylan Vernon

Ambassador of Belize to the EU

Guntram B. Wolff

Director

Location & Contact

Bruegel, Rue de la Charité 33, 1210 Brussels

Matilda Sevon

matilda.sevon@bruegel.org

Read about event

Upcoming Event

Sep
3-4
08:30

Bruegel Annual Meetings 2018

The 2018 Annual Meetings will be held on 3-4 September and will feature sessions on European and global economic governance, as well as finance, energy and innovation.

Speakers: Maria Åsenius, Richard E. Baldwin, Carl Bildt, Maria Demertzis, Lowri Evans, Mariya Gabriel, Péter Kaderják, Joanne Kellermann, Jörg Kukies, Emmanuel Lagarrigue, Philippe Lespinard, Montserrat Mir Roca, Dominique Moïsi, Jean Pierre Mustier, Ana Palacio, Jean Pisani-Ferry, Lucrezia Reichlin, Norbert Röttgen, André Sapir, Jean-Claude Trichet, Johan Van Overtveldt, Martin Sandbu, Margrethe Vestager, Reinhilde Veugelers, Thomas Wieser, Guntram B. Wolff and Georg Zachmann Topic: Energy & Climate, European Macroeconomics & Governance, Finance & Financial Regulation, Global Economics & Governance, Innovation & Competition Policy Location: Brussels Comic Strip Museum, Rue des Sables 20, 1000 Brussels
Read about event More on this topic

Upcoming Event

Oct
3
09:00

International trade and the EU-Japan Economic Partnership Agreement

This event; jointly organised by Bruegel and the Graduate School of Economics, Kobe University, will discuss the EU-Japan trade deal and asses its impact.

Speakers: Marco Chirullo, Gabriel Felbermayr, François Godement, Hiroo Inoue, Sébastien Jean, Yoichi Matsubayashi, Tamotsu Nakamura, André Sapir, Cécile Toubeau, Agata Wierzbowska and Guntram B. Wolff Topic: Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels
Read about event

Upcoming Event

Oct
11-12
20:00

Policy responses for an EU-MENA shared future

In the third edition of the "Platform for Advanced & Emerging Economies Policy Dialogue" we will discuss trade flows and trade policy between Europe and MENA, integration of developing economies into global value chains, and regional energy relations.

Speakers: Karim El Aynaoui and Guntram B. Wolff Location: Rome
Read article Download PDF More on this topic More by this author

External Publication

The impact of artificial intelligence on employment

Technological development, and in particular digitalisation, has major implications for labour markets. Assessing its impact will be crucial for developing policies that promote efficient labour markets for the benefit of workers, employers and societies as a whole.

By: Georgios Petropoulos Topic: Innovation & Competition Policy Date: July 31, 2018
Read article More on this topic More by this author

Opinion

Is Europe America’s Friend or Foe?

Since Donald Trump took office as US president, a new cottage industry in rational theories of his seemingly irrational behavior has developed. On one issue, however, no amount of theorizing has made sense of Trump: his treatment of America's oldest and most reliable ally.

By: Jean Pisani-Ferry Topic: Global Economics & Governance Date: July 30, 2018
Read article

Parliamentary Testimony

European Parliament

The role of independent expertise in legislative process

Testimony before the European Parliament Committee on the Internal Market and Consumer Protection (IMCO).

By: Zsolt Darvas and J. Scott Marcus Topic: European Macroeconomics & Governance, European Parliament, Testimonies Date: July 18, 2018
Read about event More on this topic

Past Event

Past Event

Should we revisit the patent system for pharmaceutical products?

Analysis of the legal issues with the current IP system for regulated market authorisations for pharmaceutical products, as well as its economic effects.

Speakers: Arno Hartmann, Christian Jervelund, Margaret K. Kyle, Roberto Romandini, Bruno van Pottelsberghe, Amaryllis Verhoeven and Reinhilde Veugelers Topic: Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: July 9, 2018
Read article More on this topic More by this author

Opinion

Ubu ou Machiavel?

L'administration Trump veut imposer une approche transactionnelle des relations économiques gouvernée par le rapport de force bilatéral en lieu et place du contrat multilatéral. Un défi d'une ampleur inédite pour l'Europe.

By: Jean Pisani-Ferry Topic: Global Economics & Governance Date: July 6, 2018
Read article More on this topic More by this author

Blog Post

US tariffs and China's holding of Treasuries

China has the biggest bilateral trade surplus vis-à-vis the US but is also a top holder of US government bonds. While China has started to counteract US trade tariffs, economists have been discussing the case of China acting on its holdings of US Treasuries. We review recent contributions.

By: Silvia Merler Topic: Global Economics & Governance Date: July 2, 2018
Read article

Blog Post

Trading invisibles: Exposure of countries to GDPR

This blog post identifies provisions of the EU’s General Data Protection Regulation (GDPR) that affect foreign companies, and discusses implications for trade in services with the EU. The authors provide a novel mapping of countries’ relative exposure to these regulations by a) measuring the digital maturity of their service exports to the EU; and b) the share of these exports in national GDP.

By: Sonali Chowdhry and Nicolas Moës Topic: European Macroeconomics & Governance, Global Economics & Governance Date: June 28, 2018
Read about event More on this topic

Past Event

Past Event

Trade war trinity: analysis of global consequences

Analysis of the long-term impact of the trade war and its three key players: EU, US, and China.

Speakers: Alicia García-Herrero, Ignasi Guardans and Carl B Hamilton Topic: Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: June 28, 2018
Read article More on this topic

Blog Post

China’s strategic investments in Europe: The case of maritime ports

The EU is currently working on a new framework for screening foreign direct investments (FDI). Maritime ports represent the cornerstone of the EU trade infrastructure, as 70% of goods crossing European borders travel by sea. This blog post seeks to inform this debate by looking at recent Chinese involvement in EU ports.

By: Shivali Pandya and Simone Tagliapietra Topic: Global Economics & Governance Date: June 27, 2018
Load more posts