LAC balks at EU Deportation Law; Fears Slump in Remittances

Latin American countries are protesting over the EU Returns Directive - a tough new immigration law applicable to the bloc of nations. The Directive, which comes into effect in 2010, takes a harder stance against illegal immigration in the whole bloc, allegedly in order to standardise the law. Its provisions include a "return home" or "be deported" order for illegal migrants to the EU. A large number of such immigrants from war-torn Columbia or impoverished Andean nations flock to Europe, and this brings up a debate for human rights. Latin America has raised the issue, as much for human rights reasons as economic considerations.

The region is a large receiver of remittances from the EU; for some nations it is a sizeable chunk of their GDP, and equals more than foreign investments or development aid. Trade blocs in the region have spoken out sharply against it - the Andean Community bloc has warned that it would end trade talks with the EU if the latter pushes ahead on the Directive. The Andean Community consists of Ecuador, Columbia, Peru and Bolivia, with Argentina, Brazil, Paraguay and Uruguay as associate members. Venezuela's Hugo Chavez has threatened to cut off oil exports to the EU, though it is a fairly small amount of 400,000 barrels a day.

With the large amount of money from remittances that hangs in the balance, it remains to be seen whether the EU will bow to pressure from the LAC. Says Leon Isaacs, CEO, Developing Market Associates, "Latin American communities make up a large part of the migrant stock and therefore, a large part of the remittances market in Spain and Portugal, as well as having a significant presence in many other western European countries. If the laws are introduced and if they are enforced then it would have an impact on money transfer businesses. However, these are two big 'ifs' and there is still some way to go on this issue."

Manuel Orozco, Remittances and Development Program, Inter-American Dialogue, views the move as unlikely to work in the long term, "The directive is a harsh unilateral provision that undermines the complexities of migration and existing international relations between Europe and the rest of the world. At a time of greater global European integration, the directive contradicts with realities dealing with family unification, European population decline, reliance on low cost foreign labor, trade and investment. As such and without any other provisions, the directive will increase the challenges of internatinal labor mobility and may endanger the economic ties among migrants, host and home countries, which have significantly contributed to business and economic growth for everyone."