The European Union's cooperation with Latin American countries has developed from the historical contacts and relationships that the EU's member have had with the different countries and regions of Latin America.  Today, the European Commission is actively involved in managing relations with almost all the countries of Latin America.  Since the majority of countries in Latin America are developing countries the Union's cooperation is therefore based on its development policy, and the Treaty articles relating to development.

In December 2006 the Development Cooperation Instrument (DCI) came into force.  This provides the legal framework for the EU's cooperation with countries from Asia and Latin America, as well as some countries of the Middle East and South Africa.  The DCI provides the orientation for the EU's cooperation with counties covered by the instrument, and identifies the process under which the planning of this cooperation takes place. In 2007 a new 7 year phase of cooperation begins under the DCI.  In preparation for this a planning process has been undertaken to programme the EU's cooperation with each country for the period 2007-2013.  This process is supposed to go through a number of stages, including an assessment of the implementation of past cooperation; an assessment of the political, economic and social situation of the country concerned leading to the identification of the countries' needs.