Deal secures lithium
EU allowed to lift Chile’s “white gold”.
07/18/2023 9:59 p.m
The summit meeting of the EU and Latin American countries is moving forward with an important project: With an agreement, the Europeans are securing part of the large lithium deposits in Chile. On the other hand, there are still problems with another mega project.
The European Union has launched a raw materials agreement with Chile. EU Internal Market Commissioner Thierry Breton and Chilean Foreign Minister Alberto van Klaveren Stork signed a declaration of intent in Brussels on the fringes of the summit meeting with 33 Latin American countries. Above all, the Europeans hope to gain access to Chile’s extensive lithium deposits.
Lithium is also known as “white gold”. The raw material is used for batteries, for example for mobile phones and electric cars. With such agreements, the EU wants to make itself more independent of China, according to a strategy from March. However, lithium mining in the Atacama Desert in northern Chile is controversial. Environmentalists blame him for the sinking groundwater level.
The fronts remained hardened with regard to the planned free trade agreement between the EU and the Mercosur states of Brazil, Argentina, Uruguay and Paraguay. There will be “no breakthrough in the Mercosur agreement” at the Latin America summit, stated EU foreign policy chief Josep Borrell. But he hopes to reach an agreement by the end of the year.
Europeans call for conditions for farmers
The EU wants to create the largest free trade zone in the world with the four countries in South America, which German business in particular is hoping for. However, France, Austria and other countries are pushing for strict environmental regulations for South American farmers to protect their own farmers. Critics suspect protectionism behind it.
According to Borrell, the EU made a proposal at the summit on environmental issues, while the Latin American countries responded with a counter-proposal. Both should now form the basis for further negotiations.