Critical minerals could provide the basis for deeper integration in Latin America and the Caribbean, former European Union foreign policy chief Josep Borrell said at the World in Progress Barcelona forum, organised by Grupo Prisa.
Borrell argued that the region’s lack of an explicit integration strategy leaves it operating under rules set by others. He warned that Latin America could fall into another extractive cycle because 70% of its mineral resources, many of them essential to the energy transition, are exported without being refined.
Drawing a comparison with the European integration process built around coal and steel, Borrell said Latin American countries could use their shared resources—including critical minerals, water, food and renewable energy—as a starting point. Political integration, he suggested, could follow economic cooperation.
He also called for a closer relationship between Europe and the region. Only 9% of Latin American and Caribbean exports currently go to European countries, according to figures cited at the forum. Borrell proposed removing tariffs on products made in any Latin American country and creating a wider free-trade area between the two regions.
Latin America and the Caribbean, with more than 660 million inhabitants, holds around 40% of the world’s biodiversity, as well as major water, food and mineral reserves. However, the region’s economy is growing at about 2%, while inequality and weak institutions remain significant obstacles.
José Manuel Salazar-Xirinachs, executive secretary of the Economic Commission for Latin America and the Caribbean, agreed that strong institutions are essential for turning these resources into development. He said the region is marked by polarisation both among countries and within them, while maintaining close ties with the United States and expanding commercial relations with China.
The Economic Commission’s recent report, “Breaks and Opportunities: Proposals for Latin America and the Caribbean to Prosper in the New Geopolitical Era”, recommends avoiding rigid alignments and maximising room for manoeuvre. Salazar-Xirinachs also urged governments to separate questions of values, security and economic interests when shaping foreign policy.
He stressed that development strategies need to extend beyond electoral cycles. Citing Costa Rica and the Dominican Republic, he said institutional continuity can allow national strategies to survive changes in government.
The discussion also addressed the European Union-Mercosur agreement, which entered into force in April after almost three decades of negotiations and opened a market of 700 million people. Brazilian trade expert Víctor do Prado said the agreement was already producing positive effects, although Brazilian sectors such as steel and meat faced export barriers.
Borrell acknowledged that new obstacles had emerged on both sides after the agreement was reached. He nevertheless argued that the process should be expanded across the region, with tariff-free access to Europe for products made anywhere in Latin America. Although such an arrangement would create sector-specific difficulties, he said it would send a powerful political message.
Sources: El País Internacional.