This chapter covers a new stage in EU policy towards Mercosur and Latin America. This stage started with a new framework of policies within which agreements between the European Union and Latin American countries, including the Mercosur countries, were made. By explaining EU-Mercosur agreements within the general context of EU-LA relations it is possible to bring some clarity to the EU level of engagement with Mercosur in relative terms so it is neither over nor underestimated. In doing so it will show how EU-Mercosur relations were the most important ones within the EU-LA framework. As has been established before, the level of engagement will be explained by discussing two aspects of it, “ambition” and “commitment”. This chapter shows that there is a medium level of “ambition” and a high level of “commitment” which helps to explain the outcome of a medium level of engagement.
In relation to this stage, in the literature it has been accepted that, in 1990, the EU’s means of dealing with Latin America changed (Aldecoa Luzarraga 1995; Bizzozero 1995; Laporte Galli 1996; Birochi 1999). Detailed explanations for this have not yet been offered. Some indicate that these changes were due to wider changes in the international arena. With the end of Cold War, the EU was given a chance to develop a global vision and a space in which to do it (Aldecoa Luzarraga 1995; Birochi 1999). The internal changes in the European Union, especially its increased integration, have also been mentioned in this regard (Aldecoa Luzarraga 1995).