Brussels, 30/03/2012 (Agence Europe) - With its inclusion of a free-trade agreement, the association agreement between the EU and Central America (Costa Rica, Guatemala, Honduras, Nicaragua, Panama and El Salvador) which is in the process of being ratified will, in the view of the European Commission, Central American governments and European Parliament rapporteurs, certainly boost economic development and stability in the region.
“This agreement provides an excellent opportunity to promote economic diversification and to enhance social cohesion. We have provided a balanced response to an economic and social challenge which offers great opportunities for both parties”, said Pablo Zalba (EPP) at a hearing this week on the EU-Central America association agreement on which he is the international trade committee's rapporteur. Ministers and ambassadors from the Central American countries who attended the debates highlighted the advantages of the agreement for both the region's economic development and political stability which has long depended on the export of fruit and vegetables, a model which no longer works. Honduran Deputy Trade Minister Melvin Redondo said the association agreement would not solve all the region's problems but it would allow them to be addressed, taking the lead from the EU. In the view of José Ignacio Salafranca (EPP, Spain), the foreign affairs committee rapporteur, the EU-Central America association agreement will lead to a “more mature relationship” between the two regions. Trade Commissioner Karel De Gucht called on Parliament to swiftly give its assent to an agreement that will make the EU and Central America equal partners to the benefit of their respective peoples.
The EU-Central America association agreement which was initialled in March 2011 includes a political dialogue, increased cooperation and a trade agreement which makes provision for the liberalisation of trade in goods, services and investment. Doubts have been raised, however, over resistance to the free-trade deal as a result of the social and environmental criteria (see EUROPE 10581). (EH/transl.rt)