Speeches, Interviews

EU-LAC Business Summit - Opening Remarks by Martin Bartenstein, Austrian Federal Minister of Economics and Labour, President of the EU Council of Ministers

Dear Mr. Minister Sergio García de Alba Zepeda,

Dear Mr. President Valentín Díez Morodo,

Dear Mr. President Christoph Leitl,

Ladies and Gentlemen,

Señoras y Señores,

Senhoras e Senhores!

• It is my pleasure to welcome you all to the city of Vienna - and to this picturesque Belvedere Palace. This place reflects the uniqueness of our Business Conference today.
• For the very first time, Austria has the great honour to host a Summit of EU and Latin American as well as Caribbean Heads of State and Government in a non-Hispanic country. On this occasion, the Austrian EU-Presidency has taken the initiative to set up the 1st EU-LAC Business Summit - bringing together more than 400 business leaders and decision-makers from all parts of the EU, Latin America, and the Caribbean.
• 40 top-class speakers from both regions, as well as editors of international business magazines and newspapers will discuss and analyse the most dynamic business sectors. Their aim is to make the two regions more accessible to you. This forum shall act as a kick-off platform for fostering the business and trade relations between our two regions.
• Two days ago, we also held a similar matchmaking event for the SME's here in Vienna.
• Let's have a short glance at the current status of our relations: In 2005, the volume of EU-trade with Latin America and the Caribbean increased by nearly 13% to almost 126 billion Euros compared to the year before. The LAC-region holds 5.6% of the total EU-trade volume. This rather modest figure reveals an enormous potential for boosting trade flows in both ways.
• EU-FDI into the LAC region reached an estimated stock of 287 billion Euros by 2004 (2000-stock: 176.5 billion Euros). Our aim must also be to strengthen the flow of investment in both directions as this forms a solid base for further economic development.
• A strong tailwind for tapping the full potential comes from the current macroeconomic performance of the LAC-region: After severe economic/financial crises Latin America and the Caribbean can - according to latest forecasts - expect another year of strong economic growth: Around 4.6% after a satisfying rate of 4.5% last year.
• At the same time, inflation rate will come down to around 5.4% - the lowest in more than two decades. This solid economic development should be the basis for raising long-term growth and improve the overall business climate.
• On the other side of the Atlantic, the EU is working hard to generate more economic growth. In order to keep our well known competitiveness as other regions in the world are catching up fast the EU has successfully re-launched the Lisbon Process. According to the most recent forecast, the EU can expect a GDP-growth of 2.3% this year.
• The European Business community has excellent expertise to offer. Especially in the fields of infrastructure, new technologies, tourism and services - to name only a few. At the same time, the EU is an interesting market with growing demand for goods and services. But also for Latin American companies to set up business here in Austria – an excellent gateway to growing Central and Eastern Europe - and here in the EU.
• However, we have to ensure, that our economies overcome mental barriers, enhance existing relations, and build new ones where they do not yet exist.
• We should be aware of the fact that the LAC-nations and the EU are standing back-to-back, looking towards emerging Asia. I encourage you to hold on for a second, turn around, and realize how close we actually are: We share stages of common history and we have common cultural backgrounds. And there are Latin American and Caribbean countries where a big part of the population has European roots. This is one out of many reasons why there would be great demand for products and services of any kind in both directions.
• Our aim should be doubling EU trade volume with the LAC-region over the next years. This is a necessary precondition as we want to build a bridge for more exchange on economic, technological, social, and cultural levels.
• However, a closer link between the EU and regionally integrated country-groupings (Mercosur, Central America, Andean Community, Cariforum) would, without any doubt, support our ambition to build a stable economic alliance between the EU and the LAC-Region.
• With Chile and Mexico, the EU has already successfully implemented bilateral agreements. The Caribbean States and the EU are currently negotiating an Economic Partnership Agreement which shall be implemented in 2008.
• As the EU is the largest trading partner for Mercosur we are hoping to reactivate negotiations on an Association Agreement as soon as possible. The kick-off for an Agreement including a Free Trade Arrangement with the EU and Central America is supposed to take place today. With the Andean Community there is a firm commitment from the European side to enhance the economic framework.
• All these existing and future arrangements are and will be complementary to the WTO-provisions. To reach and implement substantial and comprehensive regional agreements between the EU and LAC we rely on a solid multilateral base, which can further be improved by a successful conclusion of the pending Doha Development Agenda.
• For the DDA to succeed, we need a balanced ambition in all areas of the negotiations and a proportionate contribution from all players in the talks. We have to ensure that the round unlocks the door to development across the full range of economic activity - agriculture, goods and services.
• Multilateral agreements, negotiated in the WTO´s democratic forum, will bring benefits for all participating countries - therefore including the poorest - that bilateral deals cannot provide.
• Without sufficient ambition across the board - including in liberalization of trade in services and strengthening world trade rules - we will not have the ingredients needed to reach a balanced deal, sellable to all constituencies. But without realism we will be in danger of aiming too high and missing our end deal altogether.
• At this point, political engagement by all governments is needed. Austria/ the EU are ready to make its contribution to a substantial final deal.
• Here and today, your personal engagement is needed to make the best out of this forum. Use all the networking-possibilities for your own and your countries' success.
• Therefore, I cordially invite you to bridge the two worlds - the EU and Latin America & the Caribbean - through business and culture in the future.Enjoy your stay here in Austria. Thank you.