In 2025, global trade faces disruption due to US tariffs. Latin America anticipates a 0.3-0.4% decrease in growth. Countries like Mexico and Colombia may experience greater impacts. Remittances are also under discussion in the US.
The last decade has been the worst for Latin American growth since 1950, due to multiple crises. These include the 2008 financial crisis, the 2015-2016 commodity price drop, and the COVID-19 pandemic. Latin America is more exposed to climate change impacts than countries that emitted CO2.
Water crises increase social tensions and reduce hope in Latin America. The region has significant potential in energy and is key for the energy transition with abundant metals and minerals. The relationship between the EU and Latin America is at an inflection point and needs strengthening.
US tariffs are shifting the global trade system. This makes the EU-Latin America relationship more crucial. Spain's role is central to this relationship. Latin America is the region most affected by climate change, and most countries have signed the Paris Agreement.
The transition to cleaner energy requires a difference in economic development. Integration has advanced in areas like air travel and telecommunications. However, trade and connectivity are still low. The EU-Mercosur agreement is expected to create the world's largest free trade area.
Spanish companies have increased their presence in Latin America over the last 30 years. The improvement of the average income in Latin America will also affect Europe. Barriers to investment include a lack of knowledge and the perception of uncertainty.
Andalusia can serve as a platform for investment, given its cultural similarities and proximity to Africa. A key meeting with Arab funds will be held in Seville in late June to discuss investment opportunities. Europe leads foreign investment in Latin America.