(EU) and the Common Market of the South (MERCOSUR)? - FDCL
(EU) and the Common Market of the South (MERCOSUR)? - FDCL
(EU) and the Common Market of the South (MERCOSUR)? - FDCL
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88<br />
which also speaks out against <strong>the</strong> European agricultural subsidies, 248 as well as <strong>the</strong><br />
“trade <strong>and</strong> investment barriers” imposed by <strong>MERCOSUR</strong>.<br />
The Ibero-Amerika Verein, toge<strong>the</strong>r with <strong>the</strong> BDI, founded in 1994 <strong>the</strong> Lateinamerika-Initiative<br />
der deutschen Wirtschaft (LAI-Latin America Initiative <strong>of</strong> <strong>the</strong> German<br />
Enterprises) in cooperation with <strong>the</strong> Deutschen Industrie- und H<strong>and</strong>elskammertag<br />
(DIHK employers’ umbrella organization), 249 which advocates a broad FTA between<br />
<strong>the</strong> <strong>EU</strong> <strong>and</strong> <strong>MERCOSUR</strong>. In this sense <strong>the</strong> “Declaration <strong>of</strong> Frankfurt” <strong>of</strong> <strong>the</strong> Lateinamerika-Konferenz<br />
der Deutschen Wirtschaft from May 14-15, 2003 dem<strong>and</strong>ed <strong>the</strong><br />
following:<br />
“The Latin American countries will be explicitly encouraged in <strong>the</strong>ir efforts to<br />
promote structural reforms, privatizations, deregulation, liberalization <strong>and</strong> democratization.<br />
The creation <strong>and</strong> consolidation <strong>of</strong> a reliable juridical framework<br />
is <strong>of</strong> particular importance. [...}<br />
The German enterprises once again call on <strong>the</strong> <strong>EU</strong>-Commission to speed up<br />
<strong>the</strong> negotiations <strong>of</strong> <strong>the</strong> planned agreement with <strong>MERCOSUR</strong>. In order to succeed<br />
in <strong>the</strong> negotiations, a more flexible position is needed in <strong>the</strong> area <strong>of</strong> <strong>EU</strong><br />
agricultural policy.” 250<br />
On <strong>the</strong> side <strong>of</strong> European governments Spain is <strong>the</strong> first-ranking advocate <strong>of</strong><br />
<strong>the</strong> planned agreement, <strong>and</strong> <strong>the</strong> treatment <strong>of</strong> foreign investment is <strong>the</strong> central issue<br />
here:<br />
“None <strong>of</strong> <strong>the</strong> <strong>EU</strong> countries with substantial investment in <strong>MERCOSUR</strong> want to<br />
cede terrain. Among those, e.g., in Argentina, Spain comes in first place (39%)<br />
followed by <strong>the</strong> U.S. (28%), France (7%), Canada (6%) <strong>and</strong> Italy (5%). Around<br />
<strong>the</strong> turn <strong>of</strong> <strong>the</strong> year [2001/2002, <strong>the</strong> author] <strong>the</strong> Spanish government besieged<br />
<strong>the</strong> Casa Rosada (seat <strong>of</strong> government) in Buenos Aires, in order to be able<br />
to transfer pr<strong>of</strong>its from Spanish companies in Argentina to Spain in foreign<br />
currency <strong>and</strong> not in devaluated Pesos. In July 2002 <strong>the</strong> Spanish members<br />
<strong>of</strong> <strong>the</strong> European People’s Party (EEP with parliamentarians from <strong>the</strong> German<br />
CDU/CSU <strong>and</strong> <strong>the</strong> Austrian ÖVP, among o<strong>the</strong>rs) succeeded in persuading <strong>the</strong><br />
248 Peter Rösler, vice-director <strong>of</strong> <strong>the</strong> Ibero-Amerika Verein, speaks <strong>of</strong> “oversubsidized agriculture” in some<br />
industrial countries. See: Rösler, Peter: “Freih<strong>and</strong>el <strong>EU</strong>-<strong>MERCOSUR</strong> und FTAA bedroht”, http://www.iberoamerikaverein.de.<br />
249 http://www.mebf.bdi-online.de/reddot/lai.htm.<br />
250 Own translation <strong>of</strong> <strong>the</strong> following original text: “Die lateinamerikanischen Länder werden in ihrem Bestreben,<br />
Strukturreformen, Privatisierungen, Deregulierung, Liberalisierung und Demokratisierung weiterhin zügig<br />
voranzutreiben, ausdrücklich ermuntert. Von besonderer Bedeutung ist die Schaffung bzw. Konsolidierung<br />
verlässlicher rechtlicher Rahmenbedingungen. [...]Die deutsche Wirtschaft fordert die <strong>EU</strong>-Kommission erneut<br />
auf, die Verh<strong>and</strong>lungen des geplanten Abkommens mit den Ländern des <strong>MERCOSUR</strong> zu beschleunigen. Für<br />
einen Verh<strong>and</strong>lungserfolg mit dem <strong>MERCOSUR</strong> ist mehr Flexibilität in der <strong>EU</strong>-Agrarpolitik notwendig.” Taken from:<br />
http://www.lateinamerika-konferenz.de.