Latin America

Baroness Hooper Excerpts

Thursday 7th December 2023 Lords Chamber

Moved by

[Baroness Hooper]

That this House takes note of the United Kingdom’s relationship with the countries of Latin America, and the political trends and economic developments in those countries.

[Baroness Hooper (Con)]

My Lords, recent developments in the 20 countries of Latin America have drawn more media attention to the region than it normally enjoys in this country, so it is a happy circumstance that, having tried for a balloted debate for the last two years, I was finally able to secure this wide-ranging debate on a Conservative day. I am especially pleased that my noble friend Lord Ahmad will reply on behalf of the Government since, in spite of his wide portfolio of duties in the FCDO, which do not include Latin America, he has nevertheless been very recently in South America. I declare my interests—all non-pecuniary—as a past president and current vice-president of Canning House; as a past chairman and current vice-chairman of the All-Party Parliamentary Group on Latin America; and as trade envoy to Costa Rica, Panama and the Dominican Republic.

In this troubled world, and post Brexit, we need more friends. It has always seemed to me that the historic links between the United Kingdom and Latin America are not sufficiently recognised or emphasised in this country. The independence movements 200 years ago, when our then Foreign Secretary George Canning

“called the New World into existence, to redress the balance of the Old”,—[Official Report, Commons, 12/12/1826; col. 397.]

may not always be remembered here, and our children may not be taught about it, but it is well remembered throughout Latin America. There is tremendous good will and respect for the United Kingdom as a result. I believe that to be the best foundation for a good future relationship. I hope today’s debate will help to raise awareness and demonstrate new opportunities to improve on our current links and relationships, and do so in such a way as always to recognise the particular attributes of Latin America, such as its rich biodiversity; ensure that environmental concerns and climate change are taken into account, including Latin Americans’ role in that respect; and ensure that human rights and, indeed, the rights of indigenous people are safeguarded.

Why is Latin America an important region of the world, particularly for us? It is not just because, with a combined population of over 600 million people, it represents a huge market with a young and dynamic population, or because we share democratic values, although that is important when we work together in multinational organisations, as well as bilaterally. It is very much because, to the gold and silver which attracted Europeans to the New World in the first place, there have been added rich deposits of oil and gas, of copper, lithium and cobalt—the very commodities needed to enable us to reach net zero and look forward to living in a cleaner world. Many other renewable initiatives are taking place throughout the region; green hydrogen, in particular, is being developed, especially in Chile.

On the Motion, and looking at our trade relationships, it is sad to consider that this large and important region represents only 2% of UK imports and 2.5% of our exports, but that gives us huge opportunities to do more in investment and infrastructure projects, especially water and sewage treatment, but also in green finance and financial services generally, and, indeed, in the education sector, particularly in tech. Those are of great importance in looking forwards. The Department for Business and Trade is working hard at it, our embassies throughout the region are doing a terrific job and I really believe that the future looks bright.

Brazil is clearly the biggest economy. It plays a leading role as a BRIC country and is about to assume the presidency of the G20. Mexico is the second-biggest economy. Interestingly, not only do we have a variety of exports to Mexico but we can see a lot of Mexican investment in the United Kingdom. Anybody who sees the wagons of CEMEX, the concrete company, going around our construction sites will realise what an important role that plays.

The CPTPP, which we have just joined—indeed, the first day in Committee on that Bill is taking place even now in the Moses Room—includes Mexico, Peru and Chile, which have been Pacific Rim members of it from the start. They supported our application. One of the next applicant countries is Costa Rica—a stable country that is already a member of the OECD and is one of the countries I focus on as a trade envoy. I hope the Minister will be able to reassure me that the UK will give its support to Costa Rica’s application when it comes up.

Perhaps at this point it is appropriate to raise the issue of visas. I apologise to my noble friend because I did not give him advance warning of this. There is a great lack of consistency in the way visas are dealt with. It seems very odd that on the one hand we are trying to attract visits and trading opportunities, and on the other we are making them more and more difficult. Again, I revert to education, as this is something that applies to students, researchers and other such people—as well as leading politicians, in some cases. I hope that the British Government will try to iron out some of these problems, of which I am sure that they are well aware, as soon as possible.

As well as our trading relationship, political change has been very much in the air. The “pink wave”, which last year saw President Lula da Silva returned to the presidency in Brazil, is now overshadowed by very recent election results. For example, in Ecuador we now have Daniel Noboa—at age 35 the youngest President in the Americas, younger even than President Trudeau of Canada—who has the difficult task of building a constructive relationship with the National Assembly, a fractured body without a stable governing coalition, and with only the remaining 16 months of his predecessor’s term in office in which to achieve it. Argentina has recently elected Javier Milei, a self-proclaimed right-wing libertarian, reflecting an electorate desperate to have something done about 140% inflation and 40% poverty. Milei takes over this Sunday, and I am told that, so far, the population is hopeful and willing to accept the necessary hardships to come, and his appointments of his ministerial team have met with general approval.

In Peru we have seen six Presidents in five years—I think that just about beats us—but next year elections are due in El Salvador in February, in Mexico in June and in Venezuela in October. In the meantime, we have the distraction of the referendum called by President Maduro over the annexation of part of Guyana. That is a very vexed question that has existed for some time, but nevertheless the UK has a special interest here since Guyana is of course a member of the Commonwealth.

When we look at Latin America, it has to be recognised that there are problems, with violence, drug trafficking and gang warfare spreading to what were considered to be peaceful countries, such as Ecuador. Mineral exploitation of the commodities that I talked about earlier, which is so important for the net-zero figures and so on, should not be at the cost of human rights, especially those of indigenous people.

The last time we had a major debate on Latin America, as opposed to the several short debates we have had about specific countries on specific issues, was in 2010. That debate, led by the late Viscount Montgomery of Alamein, was the one in which the noble Lord, Lord Liddle, made his maiden speech, so I am delighted that he is joining us again today. I certainly hope it will not be as long again before we have the next general debate.

There are lots of facts, figures and statistics that could be quoted in this context. I have chosen not to do so, but I thank the House of Lords Library for its excellent briefing, which contains many of them. I point to the launch of the Canning House LatAm Outlook, published on Tuesday this week, which presents a comprehensive look ahead at the next five years and gives all the necessary facts and figures. I have been able only to touch on many of the important issues, but I know that others will both broaden the debate and add more detail.

No country can do it alone. We live in an interdependent world, because of trade and security, and a world in which there is much conflict, so we certainly need friends. I believe that in Latin American countries we will find good and enduring friendships and relationships. I beg to move.