By Guillermo Fernandez de Soto
Secretary General of the Andean Community
Lima, December 2003

The 21^st century has been baptized by international observers as the European rebirth age, in recognition of the spiral path followed by history. They base their prediction on several solid arguments, and a pragmatic attitude of the subregion should focus on studying the steady evolution of this trend as one of the priorities of its foreign affairs policy. 

I am convinced that the reasons why the Andean Community should seek to consolidate in the coming years a solid and lasting alliance with the European Union, go beyond simple strategic movements dictated by global economy or geopolitical aspects. Both regions are united by indissoluble historical ties, through which they share a legacy of respect to the principles of democracy, human rights, public freedom and social cohesion. The joint reaffirmation of these principles could be the cornerstone for working together towards the creation of a more balanced world which we are ethically obliged to build in this century. 

In reply to this common objective, in October, in Quito, the two regions successfully completed the negotiations for a new Political Dialogue and Cooperation Agreement, which will be signed on this 15th of December, in Italy. The quick agreement reached by both parties on the different aspects comprising the text of the Agreement, has once again evidenced the firm willingness to take a qualitative step forward in their relationship. 

In fact, I must state that this new Agreement represents a step forward of great significance since it involves a well-structured dialogue in several fronts and increases cooperation in new areas which are of vital importance for the Andean subregion, such as peace and security, social and political stability, democratic governance, trade cooperation and migrations. 

This Agreement stands out as a sound foundation for starting the negotiations of the respective association agreement, to be started in 2004, which involves a free trade area. 

The commitment to start these negotiations was suggested by Commissioner Chris Patten during the last meeting between the Andean Community and the European Troika, which was held within the framework of the United Nations General Asssembly in September 2003. This fourth generation agreement is particularly urgent at a time in which the benefits generated from the tariff preferences granted to the Andean countries through SGP Droga, in recognition of the principle of joint responsibility in fighting against the worldwide problem of illegal drugs, could be impaired, and the implementation of the work schedule agreed in Doha may probably not be completed within the established terms. Furthermore, it represents a good opportunity to make a radical change in the current development model of the Andean countries, as an essential condition to overcome exclusion and inequalities, which are the core of the subregion’s governance problems. 

We must not forget, in this context, the challenge that the Andean Community member countries are facing in order to recover their presence in one of the most important markets of the 21st century, which now represents 12% of their exports, while in 1990 their international sales reached around 20% share in the world economy. 

I believe that the dimension of the relationship presently reached between the two regions represents a recognition of the new strategic direction of the Andean Community, which, based on the development of a multidimensional agenda approved by the Heads of State in Quirama, enables the consolidation of strongly identified interests with the European Union that has passed on a common history to us. Similarly, it shows the effectiveness of the Andean integration process as an instrument to achieve the international inclusion of our countries in different platforms. 

This qualitative step forward in the relationship between the Andean Community and the European Union will certainly require dealing in greater depth with the topic of subregional integration. The Andean countries are obliged to continue with this task.