Brussels, 29/06/2012 (Agence Europe) - With the signing of the association agreement between the EU and Central America, the way is now clear for free trade between the two by the start of 2013.
On Friday 29 June, Trade Commissioner Karel De Gucht, on behalf of the EU, and the trade ministers of the Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama) signed a comprehensive association agreement which includes an ambitious trade strand.
The EU-Central America association, initialled in March 2011, includes political dialogue, improved cooperation and a trade agreement providing for liberalisation of trade in goods, services and investment. The provisions on free trade will come into force at the end of this year or the start of 2013 at the latest, with the agreement as a whole following as soon as it is ratified by all parties.
“The region-to-region trade deal will help to establish major business opportunities for both sides. European exporters will save around €90 million on customs per year and European service providers, such as for telecoms and transport, will get greater market access. At the same time, this deal should have a positive spill-over effect on Central America's overall economic integration process and contribute to the stability of the region”, said De Gucht. Doubts linger, however, over how the free-trade agreement will fare against social and environmental criteria (see EUROPE 10581). (EH/transl.rt)