The European Union and six Central American countries — Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama –on Friday signed a comprehensive Association Agreement which also includes an ambitious trade component.

The signing ceremony took place on the occasion of the Meeting of Presidents of SICA (Central American Integration System) in Honduras.

The EU was represented by Trade Commissioner Karel De Gucht and by the European External Action Service Managing Director for the Americas, Christian Leffler. The six Central American countries were represented by their respective Ministers of Foreign Affairs and Ministers for Trade in the presence of the six Presidents.

The agreement consists of three pillars: political dialogue, cooperation and trade. The provisions related to the free trade area will enter into force at the end of this year, beginning of next year at the latest; whereas the Agreement as a whole will enter into force as soon as it is ratified by all parties.

De Gucht said that “in the current economic situation it is vital for European businesses to count on a stable and predictable business and investment environment. The region-to-region trade deal will help to establish major business opportunities for both sides. European exporters will save around EUR 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.”

Source: RTT News