The European Union Revamps Investment Agenda with Central America

By Mayora IP

The High Representative and the European Commission adopted on June 7, 2023, a Joint Communication setting out a New Agenda for Relations between the EU and Latin America and the Caribbean. Launched ahead of the EU-CELAC Summit held in Brussels on 17 and 18 July, 2023, the Communication aims to recalibrate and renew bi-regional relations, proposing a stronger and modernised strategic partnership, boosting trade and investment.

Related to investment, a press release by the European Commission stated that the EU will continue to work with LAC partners to help create the conditions for sustainable investment, including by jointly addressing the impact of European Green Deal legislation, and the support of open, stable, and predictable legal frameworks.

Under the Investment Agenda of the EU’s Global Gateway investment strategy, European investments will be mobilised for, amongst others, renewable energy and green hydrogen, critical raw materials, decarbonisation, and transport infrastructure projects, 5G and last-kilometre connectivity, digitalisation for public services, sustainable forest management, health manufacturing, education and skills and sustainable finance. 

Some examples of projects include:

-Costa Rica: The EU and will help with the electrification of public transport. Conversion of urban bus fleet to electric: 40 public e-vehicles contributing to a reduction of 5000 CO2 ktons per year.

-Panama: the EU supports a joint project on universal access to energy.

-Panama: EU-LAC digital cooperation activities are underway such as the creation of a regional Copernicus centre for disaster risk reduction, climate change, land and marine monitoring.

-LAC-Health Resilience initiative, supporting the development of local medicines and vaccine manufacturing and health systems resilience, including regulatory frameworks.

Specifically related to Guatemala, the EU and Guatemala are working to boost economic activity between both parties, trying to insentisy commercial exchange since the existence of the Association Agreement with Central America. The European Union is currently the 5th destination for Guatemala's exports, through regional integration and free trade and business cooperation agreements with Europe.