Brussels, 30/09/2013 (Agence Europe) - The trade section of the association agreement concluded with the six countries of Central America will be applicable with Costa Rica and El Salvador as from 1 October.
The free trade agreement provided for as part of the association agreement signed in June 2012 between the EU and Central America (Costa Rica, Guatemala, Honduras, Nicaragua, Panama and El Salvador) is now applicable with five countries. After entering into force with Honduras, Nicaragua and Panama on 1 August, it enters into force with Costa Rica and El Salvador on 1 October. Procedures enabling its provisional implementation in Guatemala will soon be completed.
The trade section of the association agreement between the EU and Central America provides for the reciprocal opening of markets for goods and services, investment and public procurement.
The agreement has a system of consultation at different levels (especially that of civil society), enabling a dialogue on specific trade issues under the different chapters of the agreement. It also has a mechanism for settling trade disputes, and contains arrangements on the protection of human rights and respect for social and environmental standards.
Its benefits will be more tangible for the countries of Central America given their relative size - their GDP representing less than 1% of European GDP. Once the agreement has come into force in the whole region, the Central American countries, which mainly export agricultural and fish products (coffee, bananas, pineapples, sugar and seafood products) to the EU and some industrial products (electronic chips and medical and optical instruments), are expected record annual growth of over €2.5 billion.
The EU, which largely exports pharmaceutical products, cars and machinery to the Central American market, is Central America's second most important trade partner. In 2012, trade in goods between the two regions reached €14 billion, including €8.7 billion with Costa Rica, €1.4 billion with Honduras, €1.3 billion with Guatemala, €1.2 billion with Panama, €0.8 billion with El Salvador and €0.4 billion with Nicaragua.
The association agreement with Central America aims to strengthen economic integration between the six countries of the region taking account of sustainable development. While it also contains a political dialogue and a cooperation section, only its trade section is provisionally applied - while awaiting the end of the ratification procedure by the 28 EU member states. (EH/transl.fl)