Latin America: - CELAC: Europe losing out to Chinese conquista

China's growing economic presence in Latin America comes at Europe's expense. European leaders are trying to make up lost ground at this year's annual EU-Latin America Summit in Chile. 

A battle for access to Latin America's markets is being waged between Europe and Asia. German companies, too, are increasingly exposed to Asian competition. That is why German Chancellor Angela Merkel is set to seek closer ties with her Latin American counterparts at the summit between the EU and the Community of Latin American and Caribbean States (CELAC) in the Chilean capital Santiago this weekend (26-27.01.2013).

"The most important Latin American countries have very dynamic trade with the countries of the Pacific Rim and China," said Günther Maihold, deputy director of the German Institute for International and Security Affairs, who currently teaches at the Humboldt Institute in Mexico City. "The Europeans need to consider how to position themselves," Maihold told DW. "More is expected of them than just free trade agreements."

According to the UN Conference on Trade and Development (UNCTAD), China increased its direct investment in Latin America and the Caribbean from $621 million in 2001 to nearly $44 billion in 2010 (including investment in the Caribbean offshore financial centers).

By comparison, German direct investment in the region grew over the same period from $4 billion to $50 billion.

Oliver Parche, coordinator of the German industry's Latin America Initiative, does not see the growing competition between Asia and Europe as a huge problem. "We cannot catch up with the Asian countries," he says, "but we will certainly improve our position in the coming years."
Read more: Europe losing out to Chinese conquista | Americas | DW.DE | 26.01.2013