tit íí M M I« 1* Ut» üÜ iro ¡ - K> EUROPEAN UNIVERSITY INSTITUTE DEPARTMENT OF LAW ! THE EC’s ASSOCIATION POLICY TOWARDS LATIN AMERICA THE ENVISAGED POLITICAL AND ECONOMIC ASSOCIATION BETWEEN CHILE AND THE EUROPEAN COMMUNITY By Sergio F. Toro Mendoza Dissertation submitted for the LL. M. in International, Comparative and European Law at the European University Institute 1997-1998 Supervisor: Professor Renaud Dehousse Florence, 28 September 1998 I I European University Institute © 3 0001 0033 3598 3 EUROPEAN UNIVERSITY INSTITUTE DEPARTMENT OF LAW THE EC's ASSOCIATION POLICY TOWARDS LATIN AMERICA THE ENVISAGED POLITICAL AND ECONOMIC ASSOCIATION BETWEEN CHILE AND TIIE EUROPEAN COMMUNITY By Sergio F. Toro Mendoza Dissertation submitted for the LL. M. in International, Comparative and European Law at the European University Institute 1997-1998 Supervisor: Professor Renaud Dehousse LAW EC yu9 T0V S^ , Florence, 28 September 1998 *'SUO 6 C.J ! Hf ri !îîï?tî t î^r! ;? rr r « fr fîr5 fï *?F¡ TABLE OF CONTENTS Abbreviations Introduction PART I 1. ON THE ASSOCIATION CONCEPT.................................................... 10 1.1 ORIGINS.....................................................................................................................................................10 1. /. 1 Part IVEC Treaty..............................................................................................................................10 1.1.2 Art. 238 EC Treaty...............................................................................................................................12 1.2 LEGAL BASIS AND LEGAL CATEGORIES......................................................................................14 1.3 ASSOCIATION AGREEMENTS EVOLUTION..................................................................................18 1.3.1 First Generation ..................................................................................................................................18 1.3.2 Second Generation .............................................................................................................................19 1.3.3 !Third Generation ................................................................................................................................21 2. THIRD GENERATION ASSOCIATION AGREEMENTS: CAUSES AND GENESIS.................................................................................................. 22 2.1 LEGAL RESPONSE TO REGIONAL INSTABILITY.........................................................................22 2.2 EUROPEAN AGREEMENTS (EAs)......................................................................................................25 2 3 EURO-MEDITERRANEAN AGREEMENTS (EMAs).........................................................................31 3. CONTENT OF THE THIRD GENERATION ASSOCIATION AGREEMENT.................................................................................................. 38 3.1 POLITICAL OBJECTIVES....................................................................................................................... 38 3.1.1 European Agreements .........................................................................................................................39 3.1.2 Euro-Mediterranean Agreements. ......................................................................................................39 3.2 COMMERCIAL OBJECTIVES...............................................................................................................40 3.2.1 Trade in Gcxxis. .....................................................................................................................................43 3.2.1.1 European Agreements.......................................................................................................................43 3.2.1.2 Euro-Mediterranean Agreements.......................................................................................................48 3.2.2 Trade in Services ..................................................................................................................................52 3.2.2.1 European Agreements...................................................................................................................... 52 3.2.2.2 Euro-Mediterranean Agreements......................................................................................................55 3.3 DEVELOPMENT COOPERATION OBJECTIVES.............................................................................57 3.3.1 Development Coojxtration Content ................................................................................................... 58 3.3.2 Implementation .....................................................................................................................................60 2 PART II 4. LATIN AMERICA AS A CASE OF STUDY........................................64 5. THE LA’S QUEST FOR AN ECONOMIC GROWTH MODEL......69 5.1 THREE STAGES IN THE QUEST....................................................................................................... 70 5.1.1 Economic Commission for Latin America Structuralism (1945-mid 1960s) ................................70 5.1.2 A Transitional Period (mid 1960s-1974) ........................................................................................ 72 5.1.3 LA Liberalisation Process and the Debt Crisis (1974-1982)....................................................... 73 5.1.4 An Appraisal ........................................................................................................................................76 5.2 CHILE: SPECIFICITY BASED ON ITS ROLE AS PIONEER AND LEADER?...........................77 5.2.1 Chile 1: Vie Pioneer Economic Reform Programme (1974-1982) ................................................ 77 5.2.2 CHILE 11: Consolidating the Model, Reaping the Yields, and Globalising the Economy. .......81 5.2.3 An Appraisal .......................................................................................................................................84 6. EU-LATIN AMERICAN RELATIONS: FOUR STAGES..................86 6.1 FISRT STAGE: 1964-1976 A DEVELOPING AWARNESS...............................................................87 6.2 SECOND STAGE: 1976-1990 DEEPENING THE TIES...................................................................89 6.3 THIRD STAGE: 1990-1995 CONSOLIDATION PERIOD.................................................................92 6 4 FOURTH STAGE: 1995 - THE BIRTH OF THE ASSOCIATION POLICY...................................93 7. THE EC ASSOCIATION POLICY TOWARDS CHILE....................98 7.1 GENESIS.......................................................................................................................................................98 7.2 AN AI. YSIS OF T! Di FRAMEWORK COOPERATE )N AGREEMENT OF 1996 ....................................... 100 7.2.1 Legal Basis...................................................................................................................................... joo 7.2.2 Mixtiy in ECA...................................................................................................................................¡01 7.3 FCA CONTENT IN 11H1 LIGI IT OF TF IE CONTENTS OF 11 IE 11IIRD GENERATION ASSOCIATION Ag r e e m e n t s.......................................................................................................................................................... 103 7.3.1 Political Objectives........................................................................................................................ jos 7.3.1.1 Democratic Clause............................................................................................................................104 7.3.1.1.1 Background................................................................................................................................ ]04 7.3.1.1.2 Democratic Clause and Foreign Policy: Little Room for Both Concepts? ................................... 105 7.3.1.1.3 EC Competence for Negotiating the Democratic Clause .............................................................108 7.3.1.2 The Political Dialogue....................................................................................................................... 111 7.3.1.2.1 Background................................................................................................................................HI 7.3.1.2.2 Political Dialogue between Chile and the EU............................................................................. 113 7.3.2 Commercial Objectives...................................................................................................................j j $ 7.3.3 Development Cooperation Objectives ..........................................................................................\ ¡8 7.3.3.1 Preliminary Clarifications................................................................................................................. 118 7.3.3 .2 The Background at the EC Level..................................................................................................... 119 7.3.3.3 The Legal Basis................................................................................................................................120 7.3.3.4 EC Competence for Negotiating Development Cooperation ...............................................................123