Address by Andean Community Secretary General, Guillermo Fernández de Soto, at the opening of the negotiation of a new Political Dialogue and Cooperation Agreement between the Andean Community and the European Union

Brussels, May 6, 2003

We are gathered today to start negotiating a new “Political Dialogue and Cooperation Agreement between the European Union and the Andean Community.” This instrument, as the Heads of State and of Government, meeting in Madrid on May 17, 2002, pointed out, is intended not only to deepen existing political, economic, social and cultural relations, but also to pave the way for the future signing of an “Association Agreement” encompassing a free trade area between the two regions.

Indissoluble historical ties link up the Andean and Community and Europe, which share a legacy of respect for the principles of democracy, economic well being, human rights, universal freedoms and social cohesion.

The key to working together to build a more balanced world in this new century may lie in the joint reaffirmation of these principles. This could be even truer at a time when international terrorism continues flaunt its presence on the world scene, threatening these universal values. Attempts today by our two regions to move ahead with a political and commercial dialogue are in keeping with the foundations of this common inheritance.

In order for this new instrument to substantially improve our nations’ standards of living and well being, the representatives and negotiators of both the European Union and the Andean Community must, without any doubt whatsoever, assume political responsibility for and a commitment to it at the highest-level.

The cooperation between our two regions has evolved in three major stages, to which I should now like to refer.

The first and more bilateral stage prioritized rural development, agriculture, health and education, among other things, based on each recipient country’s unique characteristics.

The international context that existed in the nineties allowed us to move to a new stage in our cooperation. The “third generation” agreement, for its part, not only made it possible to incorporate elements relating to our nations’ political and social development, but also addressed the advancement and consolidation of Andean integration for the first time.

The “Rome Declaration” of June 1996 ushered in the third and last stage, which has seen the establishment and development of a structured political dialogue. The creation of an institutionalized mechanism offered a shared long-term vision of relations between the two blocs.

The operation of that mechanism has resulted in the holding of several meetings at the level of Heads of State and of Government during the LAC - EU Summits of Rio de Janeiro in June 1999 and Madrid in May 2002.

Important meetings of Foreign Ministers have also taken place in Vilamoura, Santiago de Chile, New York and Athens, to follow-up and implement the agreements reached at the highest political level.

The special importance attributed to the control of illegal drug trafficking and related offenses in this context must be emphasized. Efforts in this area have enabled the Andean countries to enjoy special trade preferences since 1991 through the operation of the Generalized System of Preferences (Drug-related GSP).

A “specialized” dialogue was instituted on this issue and on the control of chemical precursors and technical assistance in this area, in recognition of the principles of shared responsibility and the comprehensive nature of the war against this scourge. The cited trade preferences system was renewed and broadened, as well.

The Drug-related GSP has proven to be an effective instrument for boosting an increase and diversification of Andean exports to the European market. It is essential to safeguard and keep it in place until such time as a free trade area is established between the two regions.

From this outlook, the new “Political Dialogue and Cooperation Agreement” would mark the beginning of what we could consider the fourth stage of a fruitful and promising strategic association between our two regions, aimed at giving stability and juridical security to relations between the two blocs. At the meeting recently held in Greece, the Andean countries stressed the significant accomplishments and advances of the Community, which will allow it to lay the groundwork for advancing regional integration.

Gentlemen,

The Andean Community is convinced that relations with the European Union and the negotiating of a “fourth generation” agreement must be a shared aim.

I am of the opinion that the negotiation of that agreement should be flexible enough to enable us to move ahead decisively in advancing the political dialogue, cooperation and the establishment of a free trade area.

I should like to conclude by stating that the Andean Community has decided, based on the accomplishments and progress of Andean integration, to undertake the formulation and implementation of a second generation of policies for executing a multidimensional Andean subregional integration agenda.

The Andean Council of Foreign Ministers, at its meeting of March 11, 2003, decided that the time had come to officially inform the WTO that the Andean Community operates as a Customs Union, in an act that will give their true weight to the advances that have been made over 33 years of integration.

The key elements of the new strategic agenda, as endorsed by the Foreign Ministers, are the preparation and execution of a social agenda, the advancement of a common foreign policy, the construction of a Common Market, sustainable development and South America’s physical integration.

Equally as important was the decision of the Foreign Ministers to step up negotiations with strategic partners from a unified Community position in order to assure it of an autonomous international presence that is conducive to the signing of agreements.

The General Secretariat will provide the Andean Council of Foreign Ministers with technical support for its negotiations. A strategic and executive unit will also be created to address the key elements of the multidimensional agenda.

The aim of broadening the political dialogue and cooperation between the European Union and the Andean Community through the signing of the new Agreement is consonant with the intended advancement of our integration.

Integration is the basic support for democratic government and the appropriate instrument for ensuring our nations’ comprehensive development.

Thank-you…