Association Agreement between the EU and Central America

 

SUMMARY OF:

Agreement establishing an Association between the EU and Central America

Decision 2012/734/EU — signing, on behalf of the EU, the Agreement establishing an Association between the EU and Central America

Decision No 5/2014 of the EU-Central America Association Council — on the geographical indications to be included in Annex XVIII of the Agreement

Regulation (EU) No 20/2013 — implementing the bilateral safeguard clause and the stabilisation mechanism for bananas of the Agreement establishing an Association between the EU and Central America

WHAT IS THE AIM OF THE AGREEMENT, DECISIONS AND REGULATION?

The aims of the agreement include to:

• strengthen and consolidate the relations between the parties through an association based on three interdependent and fundamental parts;
• develop a privileged political partnership based on values, principles and common objectives, in particular the respect for and the promotion of democracy and human rights, sustainable development, good governance and the rule of law;
• enhance bi-regional cooperation between the EU and Central America in all areas of common interest;
• expand and diversify the parties’ bi-regional trade relation in conformity with the World Trade Organisation (WTO) agreement and this agreement;
• strengthen and deepen regional integration in areas of common interest;
• reinforce good neighbourly relations and the principle of peaceful resolution of disputes;
• maintain and develop the level of good governance, social, labour and environmental standards;
• foster increased trade and investment among the parties.

The Council decision concludes the agreement on behalf of the EU.

Decision No 5/2014 establishes the geographical indications of products originating from the 2 parties.

The regulation creates safeguard mechanisms to prevent serious harm to the EU banana-growing sector in the EU’s outermost regions.

KEY POINTS

The agreement consists of three strands:

1. Political dialogue

The objectives of the political dialogue between the 2 parties are to:

• establish a privileged political partnership;
• defend common values, principles and objectives by promoting them at international level, in particular at the United Nations (UN);
• strengthen the UN as the core of the multilateral system, in order to enable it to tackle global challenges effectively;
• enable a broad exchange of views, positions and information leading to joint initiatives at international level;
• cooperate in the field of foreign and security policy, with the objective of coordinating their positions and taking joint initiatives of mutual interest in the relevant international forums.

Such dialogue can cover all aspects of mutual interest at international or regional level, however, a number of specific issues are mentioned including:

• disarmament;
• the fight against terrorism;
• migration;
• the environment.

2. Cooperation

The agreement gives priority to cooperation aimed at achieving the following objectives:

• strengthening peace and security;
• reinforcing democratic institutions, good governance and full applicability of the rule of law, gender equality, all forms of non-discrimination, cultural diversity, pluralism, promotion and respect for human rights, fundamental freedoms, transparency and citizen participation;
• contributing to social cohesion;
• promoting economic growth with a view to furthering sustainable development;
• deepening the process of regional integration in Central America;
• reinforcing production and management capacities and enhancing competitiveness.

3. Trade

The objectives of this strand include:

• expanding and diversifying trade in goods;
• facilitating trade in goods;
• liberalising trade in services, in conformity with Article V of the General Agreement on Trade in Services (GATS);
• promoting economic regional integration in the area of customs procedures, technical regulations and sanitary and phytosanitary measures;
• developing a climate conducive to increased investment;
• the effective, reciprocal and gradual opening of government procurement markets;
• adequately and effectively protecting intellectual property rights;
• promoting free and undistorted competition in the economic and trade relations;
• establishing an effective, fair and predictable dispute-settlement mechanism;
• promoting international trade and investment between the parties.

The agreement includes a number of measures to achieve these objectives, in particular it:

• provides substantially improved market access for EU exports to Central America through:
  • eliminating tariffs on manufactured goods, fisheries and agriculture;
  • addressing obstacles to trade in goods;
  • improving market access to government procurement, services and investment;
• establishes a level playing field through common rules in areas such as:
  • intellectual property and geographical indications;
  • competition and state aid;
  • dispute settlement;
• reinforces regional integration by introducing measures such as:
  • a single administrative document for customs declarations;
  • a single import duty for the region;
• sets out an agreement for sustainable development designed to:
  • further economic development through trade;
  • address the interrelation between trade and social and environmental policies;
  • encourage and promote trade and marketing schemes based on sustainability criteria.

WHEN DID THE AGREEMENT, DECISIONS AND REGULATION ENTER INTO FORCE?

• The trade part of the agreement has provisionally applied since:
  • 1 August 2013 with Honduras, Nicaragua and Panama;
  • 1 October 2013 with Costa Rica and El Salvador; and
  • 1 December 2013 with Guatemala.
• The Council decision entered into force on 25 June 2012, the regulation on 22 January 2013 and Decision No 5/2014 on 5 August 2015.

BACKGROUND

For more information, see:

• Central America (European Commission).

MAIN DOCUMENTS

Council Decision 2012/734/EU of 25 June 2012 on the signing, on behalf of the European Union, of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other, and the provisional application of Part IV thereof concerning trade matters (OJ L 346, 15.12.2012, pp. 1-2)

Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (OJ L 346, 15.12.2012, pp. 3-2621)

Decision No 5/2014 of the EU-Central America Association Council of 7 November 2014 on the geographical indications to be included in Annex XVIII of the Agreement [2015/1219] (OJ L 196, 24.7.2015, pp. 59-66)

Regulation (EU) No 20/2013 of the European Parliament and of the Council of 15 January 2013 implementing the bilateral safeguard clause and the stabilisation mechanism for bananas of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (OJ L 17, 19.1.2013, pp. 13-24)

Successive amendments to Regulation (EU) No 20/2013 have been incorporated into the original act. This consolidated version is of documentary value only.

RELATED DOCUMENTS

Notice concerning the provisional application of Part IV (trade matters) of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (Guatemala) (OJ L 315, 26.11.2013, p. 1)

Notice concerning the provisional application of Part IV (trade matters) of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (Costa Rica) (OJ L 257, 28.9.2013, p. 1)

Notice concerning the provisional application of Part IV (trade matters) of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (El Salvador) (OJ L 257, 28.9.2013, p. 1)

Notice concerning the provisional application of Part IV (trade matters) of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (Nicaragua) (OJ L 204, 31.7.2013, p. 1)

Notice concerning the provisional application of Part IV (trade matters) of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (Panama) (OJ L 204, 31.7.2013, p. 1)

Notice concerning the provisional application of Part IV (trade matters) of the Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (Honduras) (OJ L 204, 31.7.2013, p. 1)

last update 02.10.2019