1.   Respect for democratic principles and fundamental human rights, as laid down in the Universal Declaration of Human Rights, as well as for the principle of the rule of law, underpins the internal and international policies of the Parties and constitutes an essential element of this Agreement.

2.   The Parties confirm their commitment to the promotion of sustainable development and to contribute to reaching the Millennium Development Goals.

3.   The Parties reaffirm their attachment to the principles of good governance and the fight against corruption.

1.   The Parties confirm their joint objective of strengthening their relations by developing their political dialogue and reinforcing their cooperation.

2.   The Parties likewise reaffirm their decision to strengthen cooperation on trade, on investments, and on economic relations.

3.   The Parties confirm their joint objective of working towards creating conditions under which, building on the outcome of the Doha Work Programme, which the Parties have committed themselves to complete by the end of 2004, a feasible and mutually beneficial Association Agreement, including a Free Trade Agreement, could be negotiated between them.

4.   Implementation of this Agreement should help to create these conditions by striving for political and social stability, deepening the regional integration process and reducing poverty within a sustainable development framework in Central America.

5.   This Agreement governs the political dialogue and cooperation between the Parties and contains the necessary institutional arrangements for its application. No provision of this Agreement shall define the position of the Parties in ongoing or future bilateral or multilateral trade negotiations.

6.   The Parties undertake to assess progress periodically, taking account of progress achieved before the entry into force of the Agreement.

1.   The Parties agree to reinforce their regular political dialogue on the basis of the principles set out in the Joint Declarations of the San Jose Dialogue process, in particular the Declarations of San Jose (28/29 September 1984), Florence (21 March 1996) and Madrid (18 May 2002).

2.   The Parties agree that political dialogue shall cover all aspects of mutual interest and any other international issue. It shall prepare the way for new initiatives for pursuing common goals and establishing common ground in areas such as regional integration, poverty reduction and social cohesion, sustainable development, regional security and stability, conflict prevention and resolution, human rights, democracy, good governance, migration, and the fight against corruption, counter-terrorism, drugs, and small arms and light weapons. It shall also provide a basis for initiatives to be taken and support efforts to develop initiatives, including cooperation, and actions throughout the Latin American region.

3.   The Parties agree that a strengthened political dialogue shall enable a broad exchange of information and shall provide a forum for joint initiatives at international level.

1.   The Parties agree that the cooperation provided for in the 1993 Framework Cooperation Agreement shall be strengthened and extended to other areas. It shall focus on the following objectives:

2.   The Parties agree that cooperation shall take account of cross-cutting aspects relating to economic and social development, including issues such as gender, respect for indigenous peoples and other Central American ethnic groups, natural disaster prevention and response, environmental conservation and protection, biodiversity, cultural diversity, research and technological development. Regional integration shall also be considered as a cross-cutting theme and in that regard cooperation actions at national level should be compatible with the process of regional integration.

3.   The Parties agree that measures aimed at contributing to regional integration in Central America and strengthening inter-regional relations between the Parties shall be encouraged.

1.   The Parties agree that cooperation in this field shall promote and sustain a comprehensive peace policy which encourages dialogue among democratic nations in the face of present challenges including the prevention and resolution of conflicts, peace restoration and justice in the context of human rights. This policy shall be based on the principle of ownership and shall focus primarily on developing regional, sub-regional and national capacities. In order to prevent conflicts, and as required, it shall ensure equal political, economic, social and cultural opportunity for all segments of society, reinforce democratic legitimacy, promote social cohesion and the effective management of public affairs, establish effective mechanisms for peaceful conciliation of interests of different groups, and encourage an active and organized civil society, in particular making use of existing regional institutions.

2.   Cooperation activities may include, as appropriate, among others, support for country specific mediation, negotiation and reconciliation processes, efforts developed to help children, women and elder people and for actions in the fight against anti-personnel mines.

3.   The Parties shall also cooperate in the field of prevention and combat of illegal traffic of small arms and light weapons with the aim of developing, among others, coordination in actions to strengthen legal, institutional and police cooperation, as well as the collection and destruction of illicit small arms and light weapons in civilian hands.

1.   The Parties agree that the objective of cooperation in this field shall be to strengthen modernization and professionalisation of public administration in Central American countries, including supporting the process of decentralization and organizational changes resulting from the process of Central American integration. In general, the aim shall be to improve organizational efficiency, to ensure transparent management of public resources and accountability, as well as to improve the legal and institutional framework based, among others, on best practices of the Parties and taking advantage of the experience gained through the development of policies and instruments in the European Union.

2.   This cooperation may include, among other things, programmes aimed at building capacities for policy design and implementation in all areas of mutual interest, inter alia, public service delivery, budget composition and execution, prevention of and fight against corruption and reinforcing judiciary systems.

1.   The Parties agree that cooperation in this field shall reinforce the process of regional integration within the Central American region, in particular the development and implementation of its common market.

2.   Cooperation shall support the development and strengthening of common institutions in the Central American region and shall promote closer cooperation between the institutions concerned.

3.   Cooperation shall also promote the development of common policies and the harmonization of the legal framework, only and exclusively to the extent that they are covered by the Central American integration instruments and as agreed by the Parties, including sectorial policies in areas such as trade, customs, energy, transport, communications, environment and competition, as well as the coordination of macroeconomic policies in areas such as monetary policy, fiscal policy and public finance.

4.   More specifically, it may include, among others through the provision of trade related technical assistance:

1.   The Parties agree that cooperation in trade shall promote the integration of the countries of Central America into the world economy. It shall also aim to foster, through the provision of trade related technical assistance, the development and diversification of intra-regional trade as well as trade with the European Union to the highest possible degree.

2.   The Parties agree to implement an integrated trade cooperation agenda to best tap the opportunities that trade implies, broadening the productive base that will benefit from trade, including the development of mechanisms to face the challenges of greater market competition, and building those skills, instruments and techniques required to accelerate the enjoyment of all benefits of trade.

3.   In order to implement the cooperation agenda, and to maximize the opportunities of bilateral, regional, or multi-lateral trade negotiations and agreements, the Parties agree to strengthen regional technical capacity building.

1.   The Parties agree to strengthen their cooperation in the field of services, in conformity with the rules of the General Agreement on Trade in Services (GATS), reflecting the increasing importance of services for the development and diversification of their economies. Increased cooperation shall be aimed at improving the competitiveness of the Central American services sector in a manner consistent with sustainable development.

2.   The Parties shall identify the services sectors on which cooperation will centre. Activities shall be geared, among other things, to the regulatory environment with due regard to domestic legislation, as well as to access to sources of capital and technology.

1.   The Parties agree that cooperation in this field shall be aimed at developing measures related to customs and trade facilitation and promote the exchange of information concerning the customs systems of the Parties, in order to facilitate trade between the Parties.

2.   As agreed by the Parties, cooperation may include, among others:

3.   Consideration may be given, within the institutional framework established by this Agreement, to the conclusion of a Mutual Assistance Protocol on customs matters.

1.   The Parties agree that cooperation on standards, technical regulations and on conformity assessments is a key objective for the development of trade in particular with regard to intra-regional trade.

2.   As agreed by the Parties, cooperation shall promote:

3.   In practice, cooperation shall:

1.   The Parties agree that industrial cooperation shall promote the modernisation and restructuring of Central American industry and individual sectors, as well as industrial cooperation between economic operators, with the objective of strengthening the private sector under conditions which promote environmental protection.

2.   Industrial cooperation initiatives shall reflect the priorities determined by the Parties. They shall take into account the regional aspects of industrial development, promoting trans-national partnerships where relevant. Initiatives shall seek in particular to establish a suitable framework for improving management know-how and promoting transparency as regards markets and conditions for business undertakings.

1.   The Parties agree to mutual cooperation in agriculture in order to promote sustainable agriculture, agricultural and rural development, forestry, sustainable social and economic development and food security for the countries of Central America.

2.   The cooperation shall focus on promoting capacity-building, infrastructure and technology transfer, addressing matters such as:

1.   The Parties agree that their joint objective will be to foster cooperation in the field of energy, in key sectors such as hydroelectricity, electricity, oil and gas, renewable energy, energy saving technology, rural electrification and regional integration of energy markets, among others as identified by the Parties, and in compliance with domestic legislation.

2.   Cooperation may include, among others, the following:

1.   The Parties agree that cooperation in this field shall focus on restructuring and modernizing transport and related infrastructure systems, improving the movement of passengers and goods and providing better access to urban, air, maritime, rail and road transport markets by refining the management of transport from the operational and administrative points of view and by promoting high operating standards.

2.   Cooperation may include the following:

1.   The Parties agree that information technology and communications are key sectors in a modern society and are of vital importance to economic and social development and the smooth transition to the information society. Cooperation in this field shall contribute to the reduction of the digital divide and development of human resources.

2.   Cooperation in this area shall aim to promote:

1.   The Parties agree to promote, within the scope of their respective competences, an attractive and stable reciprocal investment climate.

2.   Cooperation may include:

1.   The Parties agree that cooperation shall aim to promote the exchange of information on respective macroeconomic trends and policies, as well as the sharing of experiences in the coordination of macroeconomic policies in the context of a common market.

2.   The Parties shall also aim to deepen the dialogue between their authorities on macroeconomic matters and, as agreed by the Parties, may include areas such as monetary policy, fiscal policy, public finance, and macroeconomic stabilization and external debt.

1.   The Parties agree that the main objective shall be to develop better statistical methods and programmes including gathering and dissemination of statistics, aimed at generating indicators with enhanced comparability between the Parties, thus enabling the Parties to use each other's statistics on trade in goods and services and, more generally, any field covered by this Agreement, for which statistics can be drawn up.

2.   This cooperation could include, among others: technical exchanges between statistical institutes in Central America and in European Union Member States and Eurostat; development of improved, and where relevant, consistent methods of data collection, analysis and interpretation; and organization of seminars, working groups or statistical training programmes.

1.   The Parties agree to cooperate on the protection in the processing of personal data and other data, with a view to promoting the highest international standards.

2.   The Parties also agree to cooperate on the protection of personal data in order to improve the level of protection and to work towards the free movement of personal data between the Parties, with due regard to domestic legislation of the Parties.

1.   The Parties agree that cooperation in science and technology shall be carried out in their mutual interest and in compliance with their policies, and shall aim to:

2.   The Parties agree to promote and strengthen scientific research, technological development and innovation processes, involving higher-education institutions, research centres; productive sectors, especially small and medium-sized enterprises shall be encouraged on both sides.

3.   The Parties agree to foster scientific and technological cooperation among universities, research institutes and productive sectors of both regions, including scholarships, student and specialists exchange programmes.

4.   The Parties agree to strengthen the links of cooperation between scientific, technological and innovation entities for the promotion, dissemination and transfer of technology.

1.   The Parties agree that cooperation in this field shall aim to determine how to improve education and vocational training. To this end, access by young people, women, senior citizens, indigenous peoples and other Central American ethnic groups, to education, including technical courses, higher education and vocational training, shall receive special attention, as shall achieving the Millennium Development Goals in this context.

2.   The Parties agree to cooperate more closely on education and vocational training and promote cooperation between universities and between businesses in order to develop the level of expertise of senior staff.

3.   The Parties also agree to pay special attention to decentralized operations and programmes (ALFA, ALBAN, URB-AL, etc.), forging permanent links between specialized bodies in both Parties, which will encourage the pooling and exchange of experience and technical resources. In this context, cooperation may also support actions and programmes of education and training to address the specific needs of the Central American countries.

4.   The Parties will promote education of the indigenous peoples, also in their own languages.

1.   The Parties agree that cooperation in this field shall promote the protection of the environment in pursuit of sustainable development. In this connection, the relationship between poverty and the environment and the environmental impact of economic activities are considered important. Cooperation should also promote effective participation in international environmental agreements in areas such as climate change, biodiversity, desertification and chemicals management.

2.   Cooperation may focus among others on:

1.   The Parties agree that cooperation in this sphere, cultural ties and contacts between cultural agents in both regions shall be expanded.

2.   The objective shall be to promote cultural cooperation between the Parties, taking into account and favouring synergies with bilateral schemes of the Member States of the European Union.

3.   Cooperation shall take place in accordance with the relevant national copyright provisions and international agreements.

4.   This cooperation may cover all cultural fields, including, among others, the following areas:

1.   The Parties agree to cooperate in the health sector with the aim of supporting sectorial reforms that make health service delivery pro-poor and equitable as well as in promoting fair financing mechanisms that improve access to health care and nutritional security for the poor.

2.   The Parties agree that primary prevention also requires involving other sectors such as education and water and sanitation. In this regard, the Parties aim to strengthen and develop partnerships beyond the health sector to achieve the Millennium Development Goals, such as the fight against AIDS, malaria, tuberculosis and other epidemics. Partnerships with civil society, NGOs and the private sector are also needed to address sexual health and rights in a gender sensitive approach and to work with young people to prevent sexually transmitted diseases and unwanted pregnancies, provided that these objectives do not contravene the legal framework and cultural sensitivity of the countries.

1.   The Parties agree to cooperate in fostering the participation of the social partners in a dialogue on living and working conditions, social protection and integration into society. Particular account shall be taken of the need to avoid discrimination in the treatment of nationals of either Party residing legally in the territories of the other Party.

2.   The Parties acknowledge the importance of social development, which must go hand in hand with economic development and agree to give priority to employment, housing and human settlements in accordance with their respective policies and constitutional provisions, as well as the promotion of the fundamental principles and rights at work identified by the International Labour Organization's conventions, the so-called Core Labour Standards.

3.   The Parties may cooperate in any area of mutual interest in the above fields.

4.   Where appropriate, and in accordance with their respective procedures, the Parties may conduct this dialogue in coordination with the European Economic and Social Committee and its Central American counterpart, respectively.

1.   The Parties recognize the role and potential contribution of civil society in the cooperation process and agree to promote effective dialogue with civil society.

2.   Subject to the legal and administrative provisions of each Party, civil society may:

1.   The Parties agree that cooperation in this field shall contribute to promote the establishment of organizations for indigenous peoples and other Central American ethnic groups as well as strengthening the existing ones, in the context of promoting the goals of poverty eradication, sustainable management of natural resources, respect for human rights, democracy and cultural diversity.

2.   In addition to taking systematic account of the situation of indigenous peoples and other Central American ethnic groups at all levels of development cooperation, the Parties shall integrate their particular situation in the development of policies and strengthen the capacity of their organizations in order to increase the positive effects of development cooperation on these groups, in accordance with national and international obligations of the Parties.

1.   The Parties agree that cooperation in support of uprooted peoples and demobilized combatants shall help to meet their essential requirements from the time humanitarian aid ceases to the adoption of a longer-term solution to resolve their status.

2.   This cooperation may include, among others, the following activities:

1.   On the basis of the principle of co-responsibility, the Parties agree that cooperation in this field shall aim to coordinate and increase joint efforts to prevent and reduce the production, trafficking and consumption of illicit drugs. The Parties also agree to endeavour to combat crime relating to this traffic, among others, through the intermediary of international organizations and bodies. Without prejudice to other cooperation mechanisms, the Parties agree that the Coordination and Cooperation Mechanism on Drugs between the European Union and Latin America and the Caribbean shall also be used for this purpose.

2.   The Parties shall cooperate in this area to implement in particular:

1.   The Parties agree to cooperate in preventing the use of their financial systems for laundering proceeds arising from criminal activities in general and drug trafficking in particular.

2.   This cooperation shall include administrative and technical assistance aimed at the development and implementation of regulations and the efficient functioning of suitable standards and mechanisms. In particular, cooperation shall allow exchanges of relevant information and the adoption of appropriate standards to combat money laundering comparable to those adopted by the European Community and the international bodies active in this area, such as the Financial Action Task Force (FATF), and the United Nations. Cooperation at regional level shall be encouraged.

1.   The Parties reaffirm the importance of joint management of migration flows between their territories. With a view to strengthening cooperation, the Parties shall establish a comprehensive dialogue on all migration-related issues, including illegal migration, smuggling and trafficking of human beings, and refugee flows. Migration concerns should be included in the national strategies for economic and social development of the countries of origin, transit and destination of migrants.

2.   Cooperation shall acknowledge that migration is a phenomenon and that different perspectives should be analysed and discussed in order to address this fact in accordance with relevant applicable international, Community, and national legislation. It will, in particular, focus on:

3.   In the framework of the cooperation to prevent and control illegal immigration, the Parties also agree to readmit their illegal migrants. To this end:

The Parties agree to conclude, upon request and as soon as possible, an agreement regulating specific obligations for Member States of the European Union and the Central American countries on readmission. This agreement will also address the issue of readmission of nationals of other countries and stateless persons.

For this purpose, the term ‘Parties’ shall mean the Community, any of its Member States and any Central American Country.

1.   With the aim of contributing to fulfilling the cooperation objectives set out in this Agreement, the Parties commit themselves to providing, within the limits of their capacities and through their own channels, the appropriate resources, including financial resources. In this context, the Parties shall approve, to the extent possible, a pluriannual programme and establish priorities, taking into consideration the needs and level of development of the Central American countries.

2.   The Parties shall take all appropriate measures to promote and facilitate the European Investment Bank's activities in Central America in accordance with its own procedures and financing criteria and with their laws and regulations, and without prejudice to the powers of their competent authorities.

3.   The Central American Countries shall grant facilities and guarantees to European Community experts and exoneration of taxes on imports for cooperation activities in accordance with the Framework Conventions signed between the European Community and each Central American Country.

1.   The Parties agree to retain the Joint Committee, established pursuant to the 1985 Central America-EC Cooperation Agreement and retained by the 1993 Framework Cooperation Agreement.

2.   The Joint Committee shall be responsible for the general implementation of the Agreement. It shall also discuss any question affecting economic relations between the Parties, including with individual Member Countries of Central America.

3.   The agendas for Joint Committee meetings shall be set by mutual agreement. The Committee shall itself establish provisions concerning the frequency and location of its meetings, chairmanship, and other issues that may arise, and shall, where necessary, set up sub-committees.

4.   A Joint Consultative Committee, consisting of representatives of the Consultative Committee of the Central American Integration System (CC-SICA) and the European Economic and Social Committee (EESC), shall be established in order to assist the Joint Committee to promote dialogue with economic and social organizations of civil society.

5.   The Parties encourage the European Parliament and the Central American Parliament (Parlacen) to establish an Inter-parliamentarian Committee, in the framework of this Agreement, in accordance with their constitutional laws.

1.   This Agreement shall enter into force on the first day of the month following that in which the Parties notify each other of completion of the procedures necessary for this purpose.

2.   Notifications shall be sent to the Secretary-General of the Council of the European Union, who shall be the depository of this Agreement.

3.   From the date of its entry into force in accordance with paragraph 1, this Agreement shall replace the Framework Cooperation Agreement of 1993.

1.   This Agreement shall be valid indefinitely. In this context, and as stated in Article 2(3) of this Agreement, the Parties recall the Madrid Declaration of 17 May 2002.

2.   Either Party may give written notice to the other of its intention to denounce this Agreement. Denunciation shall take effect six months after notification to the other Party.

1.   The Parties shall adopt any general or specific measures required for them to fulfil their obligations under this Agreement and shall ensure that they comply with the objectives laid down in this Agreement.

2.   If one of the Parties considers that the other Party has failed to fulfil an obligation under this Agreement it may take appropriate measures. Before doing so, it must supply the Joint Committee within 30 days with all the relevant information required for a thorough examination of the situation with a view to seeking a solution acceptable to the Parties.

In this selection of measures, priority must be given to those which least disturb the functioning of this Agreement. These measures shall be notified immediately to the Joint Committee and shall be the subject of consultations in the Committee if the other Party so requests.

3.   By way of derogation from paragraph 2, any Party may immediately take appropriate measures in accordance with international law in case of:

The other Party may ask that an urgent meeting be called to bring the Parties together within 15 days for a thorough examination of the situation with a view to seeking a solution acceptable to the Parties.

1.   The Parties may mutually agree to extend this Agreement with the aim of broadening and supplementing its scope in accordance with their respective legislation, by concluding agreements on specific sectors or activities in the light of the experience gained during its implementation.

2.   No opportunities for cooperation shall be ruled out in advance. The Parties may use the Joint Committee to explore practical possibilities for cooperation in their mutual interest.

3.   As regards the implementation of this Agreement, either Party may make suggestions designed to expand cooperation in all areas, taking into account the experience acquired during the implementation thereof.