La Jornada: Europe wakes up to the strategic economic value of LA

Mexico has become a point of great attraction for Europe, since in the context of the signing of the Modernized Global Agreement with it, a greater flow of capital is anticipated, said Nuria Vilanova, president of the Business Council Alliance for Ibero-America (Ceapi).

In the presentation of the next Ceapi Congress, which will be held from May 25 to 27, the board stressed that Europe is awakening to the strategic value of Latin America and seeks to strengthen its economic collaboration.

Vilanova explained that the current geopolitical situation has driven this European shift: Germany, whose main energy source was Russia and its largest market was China, faces the drop in its sales in Asia and the cessation of Russian gas supplies. “Europe has understood what Spain has known for a long time: our natural ally is Latin America,” he noted.

In this context, the renewal of the trade agreement between the European Union and Mexico, together with the recent agreement with Mercosur, seeks to consolidate Europe as a strategic partner in the region, ensuring access to essential raw materials and expanding the flow of investments. Vilanova pointed out that European interest is not limited to trade: “we will experience a very significant growth in investments, especially in this part of the Atlantic.”

He noted that an analysis by the organization shows that in the past 15 years, Spain’s investment in Mexico has multiplied by three and for every company that leaves, five new firms enter the country.

He noted that a Ceapi study revealed the existence of the “trampoline effect” strategy, through which Mexican companies set up subsidiaries in Spain to expand towards Europe, Africa and Asia.

Currently, 118 national companies have generated 776 branches in other international markets from Spain. This dynamic has given rise to the concept of “multiberamericans”, firms that grow with one foot in Latin America and the other in Europe.

The president of Ceapi anticipated that the investment data that will be presented in September will show the way in which capitals from countries such as Germany and the Middle East and other regions are using Spain as a platform to enter Latin America, thus consolidating economic ties between both continents.