Leaders of the European Union are seeking to reboot relations with Latin America as they host their counterparts from the region, in a competition for influence and trade links against Russia and China.

“We want to discuss today how to further connect our people, how to further connect our businesses, how to de-risk, how to strengthen and diversify our supply chains and how to modernize our economies in ways that reduce inequalities and benefit all,” Ursula von der Leyen, the head of the European Commission, told reporters Monday as she welcomed Brazilian President Luiz Inacio Lula da Silva.

The EU sees the two-day summit with Latin American and Caribbean leaders as a chance to overhaul the bloc’s ties with the sub-continent. Europe is seeking stronger support for Ukraine in its efforts to counter the Russian invasion, reduce China’s sway, and ensure access to critical raw materials for its digital and green transition.

The EU’s efforts have however been hampered by wrangling over a possible statement to mark the end of the summit. The EU wants a section condemning “the ongoing war against Ukraine,” deploring “in the strongest terms the aggression by the Russian Federation” and demanding “its complete and unconditional withdrawal,” according to a draft seen by Bloomberg.

Latin American and Caribbean countries, however, currently prefer to “express concern” about the war, and support efforts for an immediate cessation of hostilities, the draft shows.

The EU and the Mercosur countries — Argentina, Brazil, Uruguay and Paraguay — have been in talks to try to clinch a trade accord for more than 20 years. But the Latin American countries have balked at the EU’s Green Deal, and rules to reduce CO2 emissions that include strict conditions to gain access to the European market.

Von der Leyen said all the objectives she set out are “within reach if we get the Mercosur-EU agreement across the finishing line.” She added that the EU “will invest strongly in Latin America and the Caribbean.”

Lula told reporters his country wants to share its “intense economic activity” with EU and Mercosur partners. “And more importantly, we want to deepen with the European Union the discussion — not only about industrial development and economic growth — but we want to deeply discuss the climate question,” he added.

Author: Lyubov Pronina, Joao Lima and Jorge Valero