At present, the Eurasian Economic Union (EAEU) is actively seeking to enhance its cooperation with Latin America and the Caribbean (LAC). The article examines the economic ties and specific features of mutually beneficial cooperation between the EAEU and the LAC, highlighting its most distinctive forms and mechanisms and assessing the future potential of such collaboration.
The Eurasian Economic Union is now striving to integrate into the global economy as an independent regional economic hub, and with that in mind is actively developing transregional cooperation, including the LAC, to enhance the role of Latin American at a time when the polycentric world is just taking shape. Memoranda of understanding, bilateral and multilateral agreements and other arrangements serve as interaction mechanisms.
At this early stage of trade and economic cooperation, the leading role is attributed to the “soft law” norms, as those that are non-legally binding or of lesser legal force than traditional law norms, but which have a certain practical impact and generally serve to exchange experience and information on regional economic integration and research and development (R&D).
Practice shows that both Latin America and the EAEU have a keen interest in and ambition for cooperation. Although the EAEU does not prioritise Latin America as a partner, and mutual trade indicators are relatively low, this region may become a key player in the long run. And the significant potential for the development of cooperation between the EAEU and Latin America, driven by the stead-fast strengthening of transregional ties
and the enhancement of negotiations, is the testament to this claim.
At this early stage of trade and economic cooperation, the leading role is attributed to the “soft law” norms, as those that are non-legally binding or of lesser legal force than traditional law norms, but which have a certain practical impact and generally serve to exchange experience and information on regional economic integration and research and development (R&D).
Practice shows that both Latin America and the EAEU have a keen interest in and ambition for cooperation. Although the EAEU does not prioritise Latin America as a partner, and mutual trade indicators are relatively low, this region may become a key player in the long run. And the significant potential for the development of cooperation between the EAEU and Latin America, driven by the stead-fast strengthening of transregional ties
and the enhancement of negotiations, is the testament to this claim.
EAEU-Latin America relations started off with Chile, when the Eurasian Economic Commission (EEC) and the Republic of Chile signed the Memorandum of Understanding (MoU, 2015). According to its provisions, “This Memorandum is not an international agreement, does not create any rights and obligations regulated by international law and does not impose any financial obligations on the Parties.” At the moment of signing the Memorandum, the share of the EAEU trade turnover with Chile was 0.13%.
The Memorandum covers a number of areas of cooperation: economic integration; technical regulation; standardization; sanitary and phytosanitary measures; finance; transport; energy; antimonopoly regulation. Cooperation in the field of industry, aimed at enhancing interaction, the competitiveness of industrial estates, innovation and investment activity, is given a great deal of attention.
The Memorandum also envisages support in the fields of customs regulation and intellectual property. In line with the document, the annual meetings of the Joint Commission are the mechanism of its implementation. That same year, a similar Memorandum was concluded between the EEC and the Republic of Peru. At that time, the share of EAEU-Peru trade turnover was 0.13%, similarly to that with Chile, but the figure has since declined significantly — as of 2019, it amounted to 0.08%.
Unlike the Memorandum of Understanding with Chile, the Memorandum of Understanding between the EEC and the Republic of Peru focuses more on trade and economic cooperation, including trade policy, financial markets, public procurement, innovation and other economic sectors of mutual interest.
The Memorandum envisages cooperation within the framework of a Joint Working Group on Cooperation between the EEC and the Republic of Peru. Another country that has shown interest in developing bilateral cooperation with the EAEU is the Republic of Ecuador. In November 2017, the EEC and the Ministry of Foreign Trade of the Republic of Ecuador signed the Memorandum of Understanding and Trade Cooperation. At that time, the share of EAEU-Ecuador trade turnover stood at 0.26%.
The objectives of the Memorandum included promoting comprehensive cooperation through facilitating and accelerating the exchange of in-formation, strengthening of cooperation in trade and economic sphere. The Memorandum also sets out pro-visions for the establishment of contacts between the companies of the Eurasian Economic Union Member States and the Republic of Ecuador particularly small and medium sized enterprises and associations of producers. It is also worth noting that the areas of cooperation outlined in the Memorandum include agriculture, fisheries and aquaculture.
The provisions within the Memorandum stipulate that cooperation with the purpose of implementation of this Memorandum will be carried out in the framework of the Joint Committee and Working Groups on Cooperation between the Eurasian Economic Commission and the Ministry of Foreign Trade of the Republic of Ecuador. The document clearly emphasises the engagement of the Parties in the area of business and institutional cooperation.
In 2018, the EEC and the Government of the Republic of Cuba signed the Memorandum of Understanding, while the share of trade turnover was 0.06%. Unlike the above-mentioned Memoranda of Understanding, this document covers such areas of co-operation as consumer protection; information and communication technologies and digital economy; and labour migration. The implementation of bilateral cooperation under the Memorandum is carried out through the mechanism of the Joint Commission. In December 2020, the Supreme Eurasian Economic Council granted Cuba Observer State status at the Eurasian Economic Union, thus enabling Cuba to attend (by invitation) meetings of the EAEU bodies and participate in the discussions of issues on the agenda (yet without the right to vote).
Moreover, this status entitles the country to receive non-confidential documents adopted by the bodies of the Union. As of 2023, EAEU-Cuba trade turnover amounted to $290 mln, and the cooperation between the Parties embraced 34 areas, including trade; banking; finance; biotechnology; agriculture; information and communication technologies. Besides the above-mentioned documents, the EAEU’s international legal framework includes arrangements with third parties on cooperation in specific areas. In particular, in 2019, the EEC and the Government Secretariat for Agro-Industry of the Ministry of Production and Labour of the Argentine Republic signed the Memorandum of Understanding on Cooperation in the Field of Agro-Industry.
As of 2018, the EAEU-Argentina share of trade turnover was 0.19%. The Memorandum identifies the most relevant areas of agricultural cooperation as technology transfer; research and innovation; agricultural biosafety and biotechnology. In order to increase the practical significance of cooperation, the Parties intend to hold meetings at the level of Heads (Deputy Heads) of the organisations and institutions in the sphere of agro-industrial complex.
But with all that said, cooperation between Latin America and the EAEU is not limited to the above-mentioned areas. For instance, during the COVID-19 pandemic, Argentina became one of the first Latin American countries to register the Russian vaccine “Sputnik V,” and in 2021, launched its production in its own country. At present, Latin American integration groupings and UN Specialised Agencies are also showing interest in cooperation with the EAEU.
A number of documents on cooperation have al-ready been signed at this level: Memorandum of Understanding between the Eurasian Economic Commission and the Andean Community General Secretariat (2017); Memorandum of Understanding between the Eurasian Economic Commission and the Latin American Economic System (2018); Memorandum of Understanding between the Eurasian Economic Commission and the Southern Common Market on Cooperation on Trade and Economic Issues (2018); Memorandum of Understanding between the Eurasian Economic Commission and the United Nations Economic Commission for Latin America and the Caribbean (2018); Declaration of Partnership be-tween the Eurasian Economic Commission and the States Par-ties to the Pacific Alliance Frame-work Agreement (2019); Memorandum of Understanding between the Eurasian Economic Commission and the Secretariat for Central American Economic Integration (2021).
Such an extensive agenda, which not only includes strictly trade is-sues, but also the development of the agro-industrial complex, information and communication technologies and the digital economy, consumer protection and labour migration, enables the Parties to better understand each other and seek mutual interests.
The Memoranda of Understanding between the EEC and the LAC, as a legal form of bilateral cooperation in the “soft law,” are aimed at fostering trade and economic cooperation, mutual exchange of information and interaction between business communities, and that is their distinctive feature.
At the same time, the provisions of each of the Memoranda differ in terms of specific areas of cooperation, such as:
Alongside bilateral cooperation, the EAEU engages in multilateral cooperation with Latin America within the framework of the United Nations Economic Commission for Latin America and the Caribbean (ECLAC).
Considerable potential for the development of the R&D component of the EAEU’s “soft power” within the export of the Russian vaccine “Sputnik V” to Latin America also merits attention. As is well known, today unfriendly countries use their monopoly over the key hubs of the global monetary and financial system for political ends.
Hence, the EAEU and the LAC ought to work together to shape a new global monetary and financial system, including by using modern digital tools, to get rid of the dollar hegemony, further strengthen ties between countries and increase mutual trade turnover. As of 2023, the share of Latin American countries in the EAEU trade turnover is still relatively low — not more than 3%, although the potential for cooperation is tremendous.
But despite the small trade turnover, stable relations between the EAEU and the LAC are already apparent, and now, given the geopolitical changes in the world, there are ample opportunities for their development. Thus, the goal of increasing trade volumes may well be set for the present time. Yet, one should bear in mind the geographic factor, which can be greatly mitigated by addressing strategic trade and logistics challenges and developing logistical export-import routes.
All these facts mentioned suggest that there are real prospects for cooperation between the Eurasian Economic Union and Latin American countries.
The Memorandum covers a number of areas of cooperation: economic integration; technical regulation; standardization; sanitary and phytosanitary measures; finance; transport; energy; antimonopoly regulation. Cooperation in the field of industry, aimed at enhancing interaction, the competitiveness of industrial estates, innovation and investment activity, is given a great deal of attention.
The Memorandum also envisages support in the fields of customs regulation and intellectual property. In line with the document, the annual meetings of the Joint Commission are the mechanism of its implementation. That same year, a similar Memorandum was concluded between the EEC and the Republic of Peru. At that time, the share of EAEU-Peru trade turnover was 0.13%, similarly to that with Chile, but the figure has since declined significantly — as of 2019, it amounted to 0.08%.
Unlike the Memorandum of Understanding with Chile, the Memorandum of Understanding between the EEC and the Republic of Peru focuses more on trade and economic cooperation, including trade policy, financial markets, public procurement, innovation and other economic sectors of mutual interest.
The Memorandum envisages cooperation within the framework of a Joint Working Group on Cooperation between the EEC and the Republic of Peru. Another country that has shown interest in developing bilateral cooperation with the EAEU is the Republic of Ecuador. In November 2017, the EEC and the Ministry of Foreign Trade of the Republic of Ecuador signed the Memorandum of Understanding and Trade Cooperation. At that time, the share of EAEU-Ecuador trade turnover stood at 0.26%.
The objectives of the Memorandum included promoting comprehensive cooperation through facilitating and accelerating the exchange of in-formation, strengthening of cooperation in trade and economic sphere. The Memorandum also sets out pro-visions for the establishment of contacts between the companies of the Eurasian Economic Union Member States and the Republic of Ecuador particularly small and medium sized enterprises and associations of producers. It is also worth noting that the areas of cooperation outlined in the Memorandum include agriculture, fisheries and aquaculture.
The provisions within the Memorandum stipulate that cooperation with the purpose of implementation of this Memorandum will be carried out in the framework of the Joint Committee and Working Groups on Cooperation between the Eurasian Economic Commission and the Ministry of Foreign Trade of the Republic of Ecuador. The document clearly emphasises the engagement of the Parties in the area of business and institutional cooperation.
In 2018, the EEC and the Government of the Republic of Cuba signed the Memorandum of Understanding, while the share of trade turnover was 0.06%. Unlike the above-mentioned Memoranda of Understanding, this document covers such areas of co-operation as consumer protection; information and communication technologies and digital economy; and labour migration. The implementation of bilateral cooperation under the Memorandum is carried out through the mechanism of the Joint Commission. In December 2020, the Supreme Eurasian Economic Council granted Cuba Observer State status at the Eurasian Economic Union, thus enabling Cuba to attend (by invitation) meetings of the EAEU bodies and participate in the discussions of issues on the agenda (yet without the right to vote).
Moreover, this status entitles the country to receive non-confidential documents adopted by the bodies of the Union. As of 2023, EAEU-Cuba trade turnover amounted to $290 mln, and the cooperation between the Parties embraced 34 areas, including trade; banking; finance; biotechnology; agriculture; information and communication technologies. Besides the above-mentioned documents, the EAEU’s international legal framework includes arrangements with third parties on cooperation in specific areas. In particular, in 2019, the EEC and the Government Secretariat for Agro-Industry of the Ministry of Production and Labour of the Argentine Republic signed the Memorandum of Understanding on Cooperation in the Field of Agro-Industry.
As of 2018, the EAEU-Argentina share of trade turnover was 0.19%. The Memorandum identifies the most relevant areas of agricultural cooperation as technology transfer; research and innovation; agricultural biosafety and biotechnology. In order to increase the practical significance of cooperation, the Parties intend to hold meetings at the level of Heads (Deputy Heads) of the organisations and institutions in the sphere of agro-industrial complex.
But with all that said, cooperation between Latin America and the EAEU is not limited to the above-mentioned areas. For instance, during the COVID-19 pandemic, Argentina became one of the first Latin American countries to register the Russian vaccine “Sputnik V,” and in 2021, launched its production in its own country. At present, Latin American integration groupings and UN Specialised Agencies are also showing interest in cooperation with the EAEU.
A number of documents on cooperation have al-ready been signed at this level: Memorandum of Understanding between the Eurasian Economic Commission and the Andean Community General Secretariat (2017); Memorandum of Understanding between the Eurasian Economic Commission and the Latin American Economic System (2018); Memorandum of Understanding between the Eurasian Economic Commission and the Southern Common Market on Cooperation on Trade and Economic Issues (2018); Memorandum of Understanding between the Eurasian Economic Commission and the United Nations Economic Commission for Latin America and the Caribbean (2018); Declaration of Partnership be-tween the Eurasian Economic Commission and the States Par-ties to the Pacific Alliance Frame-work Agreement (2019); Memorandum of Understanding between the Eurasian Economic Commission and the Secretariat for Central American Economic Integration (2021).
Such an extensive agenda, which not only includes strictly trade is-sues, but also the development of the agro-industrial complex, information and communication technologies and the digital economy, consumer protection and labour migration, enables the Parties to better understand each other and seek mutual interests.
The Memoranda of Understanding between the EEC and the LAC, as a legal form of bilateral cooperation in the “soft law,” are aimed at fostering trade and economic cooperation, mutual exchange of information and interaction between business communities, and that is their distinctive feature.
At the same time, the provisions of each of the Memoranda differ in terms of specific areas of cooperation, such as:
- industry;
- agriculture, fisheries and aquaculture;
- information and communication technologies and digital economy;
- and agro-industrial complex.
Alongside bilateral cooperation, the EAEU engages in multilateral cooperation with Latin America within the framework of the United Nations Economic Commission for Latin America and the Caribbean (ECLAC).
Considerable potential for the development of the R&D component of the EAEU’s “soft power” within the export of the Russian vaccine “Sputnik V” to Latin America also merits attention. As is well known, today unfriendly countries use their monopoly over the key hubs of the global monetary and financial system for political ends.
Hence, the EAEU and the LAC ought to work together to shape a new global monetary and financial system, including by using modern digital tools, to get rid of the dollar hegemony, further strengthen ties between countries and increase mutual trade turnover. As of 2023, the share of Latin American countries in the EAEU trade turnover is still relatively low — not more than 3%, although the potential for cooperation is tremendous.
But despite the small trade turnover, stable relations between the EAEU and the LAC are already apparent, and now, given the geopolitical changes in the world, there are ample opportunities for their development. Thus, the goal of increasing trade volumes may well be set for the present time. Yet, one should bear in mind the geographic factor, which can be greatly mitigated by addressing strategic trade and logistics challenges and developing logistical export-import routes.
All these facts mentioned suggest that there are real prospects for cooperation between the Eurasian Economic Union and Latin American countries.