Strasbourg, 18/05/2010 (Agence Europe) - On Tuesday 18 May, on the sidelines of the 6th EU-Latin America and the Caribbean summit in Madrid, the EU and Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama) reached agreement on a free trade treaty as part of their new association agreement, negotiations for which were begun in 2007. In a joint press release, Central American and EU trade ministers “express their full satisfaction with the outcome, which will result in an ambitious, comprehensive and balanced trade pillar of the Association Agreement”.
Central America is a market of 35 million people. In 2008, the EU had a trade surplus of €8 billion. The free trade agreement provides for the full liberalisation (100% market opening) of European and Central American markets for industrial products. European motor vehicles will be given free access to the Central American market for a period of 10 years. The agreement also provides for better access for EU services companies in the Central American region and guarantees a better environment for investment in all the key sectors in the Central American region. In agriculture, the agreement will see customs duties on bananas reduced to €75 per tonne over a 10-year period (until 2020); some €50 million is expected to be saved. The agreement also provides for an import quota of Central American beef of 10,000 tonnes (7,000 in so-called boneless cuts); savings of €20 million in terms of duties and €42 million in terms of market prices are expected. There will also be an import quota of 20,000 tonnes of Central American rice, increasing by 5% annually. This quota is valued at €8 million in terms of saved duties and at about €8 million in terms of the market price. (E.H./transl.rt)