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Eu widening to the East: Must latin America be concerned?

  • International Trade
  • Published:
Intereconomics

Abstract

The pending widening of the European Union to the East has revived concerns in Latin America that its trade and foreign direct investment relations with the EU may suffer as a result. Trade patterns suggest, however, that Latin America's exports to the EU are complementary to the exports of Central and Eastern European countries and the new investment opportunities in Central and Eastern Europe appear to be inducing additional foreign direct investment, rather than causing its diversion.

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References

  1. U. Hiemenz et al.: Regional Integration in Europe and its Effects on Developing Countries, Kiel Studies 260, Tübingen 1994.

  2. J. P. Agarwal: Impact of ‘Europe Agreements’ on FDI in Developing Countries, in: International Journal of Social Economics, 1996, Vol. 23, Nos. 10/11, pp. 150–163.

  3. D. Piazolo: Trade Integration between Eastern and Western Europe: Policies Follow the Market, in: Journal of Economic integration, 1997, Vol. 12, No. 3, pp. 259–297.

  4. (Cf. R. J. Langhammer: Latin America's Competitive Position visà-vis Central and Eastern Europe. Comment on András Inotai, in: B. Fischer et al. (eds.): Latin America's Competitive Position in the Enlarged European Market, Baden-Baden 1994, pp. 285–294.); IRELA (Institute for European-Latin American Relations): Closer European Union Links with Eastern Europe: Implications for Latin America, Madrid 1997.

  5. cf. A. Jessen: Notes on the Possible Implications of EU Enlargement for Trade Flows between Europe and Latin America, presented at the Conference ‘Integration Processes in Central Europe and Latin America and Prospects for Inter-Regional Links’ of the Inter-American Development Bank, Budapest 1999 (preliminary draft).

  6. Taken together, these three countries accounted for about 75 per cent of Latin America's manufactured exports to the EU in the 1990s; OECD: Foreign Trade by Commodities, Paris 1999.

  7. cf. OECD: International Direct Investment Statistics Yearbook, Paris, various issues.

  8. Ibid. cf. OECD: International Direct Investment Statistics Yearbook, Paris, various issues.

  9. For details, see European Commission and UNCTAD: Investing in Asia's Dynamism. European Union Direct Investment in Asia, Luxembourg 1996.

  10. P. Nunnenkamp: Foreign Direct Investment in Latin America in the Era of Globalized Production, in: Transnational Corporations, 1997, Vol. 6, No. 1, pp. 51–81; P. Nunnenkamp: Lateinamerika nach der “verlorenen Dekade”: Eine Zwischenbilanz der Reformen, Kiel Discussion Papers 324, Institute of World Economics, Kiel 1998.

  11. IDB and IRELA (Inter-American Development Bank and Institute for European-Latin American Relations): Foreign Direct Investment in Latin America in the 1990s, Madrid 1996.

  12. IDB and IRELA: Foreign Direct Investment in Latin America: Perspectives of the Major Investors, Madrid 1998.

  13. UNCTAD: World Investment Report: Trends and Determinants, New York 1998, p. 261.

  14. J. P. Agarwal, op. cit. Impact of ‘Europe Agreements’ on FDI in Developing Countries, in: International Journal of Social Economics, 1996, Vol. 23, Nos. 10/11, pp. 150–163.

  15. UNCTAD: World Investment Report: Investment, Trade and International Poilicy Arrangements, New York 1996, p. 97.

  16. P. Nunnenkamp: Foreign Direct Investment…, op. cit. in Latin America in the Era of Globalized Production, in: Transnational Corporations, 1997, Vol. 6, No. 1, pp. 51–81

  17. IDB and IRELA: Foreign Direct Investment in Latin America: Perspectives…, op. cit. of the Major Investors, Madrid 1998.

  18. A. Jessen, op. cit. Notes on the Possible Implications of EU Enlargement for Trade Flows between Europe and Latin America, presented at the Conference ‘Integration Processes in Central Europe and Latin America and Prospects for Inter-Regional Links’ of the Inter-American Development Bank, Budapest 1999 (preliminary draft).

  19. Cf. IMF: Direction of Trade Statistics Yearbook, Washington D.C., various issues.

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  1. Institute of World Economics, Kiel, Germany

    Peter Nunnenkamp

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Nunnenkamp, P. Eu widening to the East: Must latin America be concerned?. Intereconomics 34, 170–176 (1999). https://doi.org/10.1007/BF02927844

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