Brussels, 23/03/2011 (Agence Europe) - On Tuesday 22 March, representatives from the European Union and Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama) initialled a comprehensive association agreement. After more than three years of talks, the negotiations for this agreement were concluded in May 2010. Work on revising the legal texts has now been completed. The initialling will be followed by a formal process of translation, signature and ratification of this agreement, so that it can enter into force as soon as possible for all parties, explained the European Commission. The EU-Central America association agreement is based on a broad trade pillar. In a press release, EU Commissioner for Trade Karel De Gucht explained that this is an ambitious and comprehensive agreement “which will boost trade and investment between us, hence growth and jobs, and help Central America progress in its regional integration”.
Under the terms of the arrangement concluded in May 2010, the EU-Central America free trade agreement includes total liberalisation (100% opening up) of the European and Central American markets in industrial products and duty-free access for European cars to the Central American market over a 10-year period. The agreement also includes better access for European services companies to Central America and guarantees a better framework for investing in all key Central American sectors. In agriculture, the agreement aims to introduce duties on bananas to the tune of €75 per tonne. The reduction will apply over a 10-year period (up until 2020). Benefits in terms of savings on duties are estimated to be around €50 million. The agreement also includes a quota of Central American beef imports of 10,000 tonnes (7,000 tonnes without the carcass). Benefits of this measure are estimated to be worth €20 million in terms of customs duties savings and €42 million in terms of market prices. Finally, the agreement calls for a Central American rice import quota of 20,000 tonnes, which will increase by 5% every year. Benefits are estimated to be around €8 million in terms of customs duties savings and €8 million in terms of market prices.
EU exports of goods to Central America reached €4.5 billion in 2010, while its imports from countries in this region rose to €7.6 billion. (E.H./transl.fl)