On 24 May 2018, the Permanent Secretariat of the Latin American and Caribbean Economic System (SELA), Ambassador Javier Paulinich, and the Minister for Integration and Macroeconomics of the Eurasian Economic Union (EEU), Ms. Tatiana Valovaya, signed a Memorandum of Understanding in order to promote inter-institutional cooperation between the two regions. This document was signed during the Intercontinental Dialogue on Economic Cooperation between the EEU and countries of Latin America and the Caribbean, held at the headquarters of the Eurasian Economic Commission (EEC) with the participation of Latin American ambassadors accredited to Russia.

It should be noted that the EEU is a supranational organization of the economic area of Eurasia, comprising Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia.

The main objective of the EEU is to develop a single market through the free movement of goods, capital, services and persons. The EEU is seen as an energy power. In 2018, it produced 20.2% of natural gas and 14.5% of oil and natural gas condensate in the world, with the bloc being the largest global producer of these raw materials. The EEU also produces 4.9% of the world’s electrical energy and 6.9% of carbon, which makes it the third and fourth world producer, respectively. In Kazakhstan, energy is the main economic sector. The country has about 4 billion tons of proven recoverable oil reserves and 2 thousand cubic kilometres of gas reserves. Kazakhstan is the 17th largest exporter of oil in the world and the 23rd exporter of natural gas. Russia has the largest reserves of natural gas in the world.

In this connection, there is a large space for improving cooperation relations between Latin America and the Caribbean and the EEU, as well as for enhancing trade relations and incentives between both regions, because they contain valuable know-how in the production and exploitation of natural resources and thus can draw on the best practices and promote the exchange of technology.

The Memorandum of Understanding between SELA and the CEE was signed on the basis of the competitive advantages and similarities of each region. The document is based on issues of regional integration and inclusive economic growth. The agreement reinforced the desire to share best practices on economic integration, intra-regional trade, development of labour market, growth of competitiveness, improvement of regulatory framework, consumer protection and development of a methodology to assess the progress of regional integration processes. It should be noted in particular that that this Memorandum contributes to the achievement of the Sustainable Development Goals (Transforming our world: The 2030 Agenda for Sustainable Development), adopted by Resolution 70/1  of the United Nations General Assembly, adopted on 25 September 2015.

The EEU and SELA recognized the potential of an alliance between them to leverage inter-regional trade in goods and services. In order to move towards the development of such potential and the materialization of such mutually convenient alliance, SELA included in its Work Programme for the year 2019 a space aimed at strengthening cooperation ties to promote the best opportunities in both regions.