I am very glad to be in Argentina today. Indeed, we share deep, historical and cultural ties. We are long-standing friends. We share the same values. First of all, I want to congratulate you on this important anniversary of 40 years now during which you have built a vibrant democracy.
Argentina knows better than anyone how vital it is to protect hard-won political rights and freedoms. We want to thank you for having expressed your unwavering support to Ukraine from the very beginning, also in view of the precious values of the international law and the UN Charter that have been violated by Russia's war of aggression. We know that the impact of Russia's war of aggression goes well beyond Ukraine's border. It affects the global economy, the energy markets, the food security, interest rates. But as I said, it is also a severe threat to the principles of international law and the UN Charter. Here, we thank you for your steadfast support. As like-minded partners, we need to stand together to protect the international order.
We do not only share the same values, we are also trusted economic partners. Our regions are partners of choice. And we think it is time to take this partnership to the next level. Last week, the European Union put on the table our Latin America strategy. It is a new agenda to strengthen relations between Europe and Latin America and the Caribbean, and to join forces to tackle global challenges. You know them: It is climate change, digitalisation, reliable supply chains that we need, economic resilience that is necessary, but also strengthening our institutions and defending the rules-based order. The Latin America strategy is also coming with substantial new investments – we spoke about it. The European Union is indeed already the top investor in the region. And I am very glad to tell you that we will step up further.
For that, we have Global Gateway, that is our investment plan for infrastructure abroad. Through Global Gateway, the European Union will invest EUR 10 billion in Latin America and the Caribbean. This will be complemented by additional contributions from the Member States bilaterally and of course by private sector investment. Global Gateway creates a conducive environment for private investments from across Europe in Latina America and the Caribbean, and specifically here in Argentina.
So today, we discussed how to take our economic partnership forward. Indeed, the first topic we engaged on was thriving trade relations between Argentina and the European Union. The European Union is sharing around 40% of foreign direct investment here in Argentina. And we think we can go much further. And here comes the EU-Mercosur agreement into play.
The role of the Mercosur agreement is to unleash untapped potential. It will help to further integrate and strengthen our value chains. We want to bring regulatory predictability to make more investments flow. We want to help our industries to innovate together and stay competitive globally. And we will also support your aim to create a more resilient economy. That would make our partnership even stronger. So indeed, I hope we can get the EU-Mercosur agreement across the finishing line. We have exchanged a first letter. We are waiting for a response. And we are very much looking forward to working as hard as possible so that we conclude this agreement, a win-win agreement. For that, we encourage our staff to work as fast and as hard as possible so that we really make progress on that topic.
The second topic, indeed, is critical raw materials. We have just signed the Memorandum of Understanding on critical raw materials. This is a great step forward, and we will both benefit from it. I think it is important to see that, for example on lithium, we will help develop value chains that definitely go beyond extraction. Because we think it is so important that the added value in the processing value chain stays locally and in the region, so here. Because then this creates good jobs and business opportunities right here in Argentina. Lithium plays a big role because it is essential to power clean technologies. It is basically everywhere: it is in batteries; it is in wind turbines. And as the whole world is embarking on these clean technologies to fight climate change, the demand for lithium will grow significantly, not only in Latin America but across the whole world. And this is the opportunity for Argentina to develop this sector with the value chains. I will give you a figure from Europe: The European demand for lithium will – that is what we expect – be 12 times greater by 2030 than it is today because of the factors I was mentioning. So the MoU we have just signed but also the EU-Mercosur agreement will make crucial investment flows possible. Investments in high-quality, sustainable infrastructure that can give a significant boost to the economy.
Indeed, the next topic that we have been discussing was the green transformation that we are undergoing, and here with view on energy. Argentina has immense potential for renewable energy – solar but also wind power for green hydrogen, for example. You are on your way to become a regional hub for renewables, with the support of Global Gateway. And I think this is good news for both of us because it will accelerate your clean energy transition, it will create jobs here in Argentina. And of course, it is also of high interest for the European Union, as we need a reliable clean energy supplier.
So let us conclude by saying that our partnership is strong and trusted. I am very much looking forward to seeing you in Brussels, hopefully soon at the EU-CELAC Summit. And I look forward to the work that we have ahead of us.
Thank you very much.
