EU/CENTRAL AMERICA : EU SIGNS ASSOCIATION AGREEMENT WITH SIX C AMERICAN STATES.

• Position: Brief article

The European Union and Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama) signed an association agreement, on 29 June, consisting of three pillars: political dialogue, cooperation and trade. The trade part of the agreement will not enter into force before the end of the year or the beginning of 2013 at the latest, once the legislative procedure between the Council and the European Parliament has been concluded.

"The region-to-region trade deal will help to establish major business opportunities for both sides," Trade Commissioner Karel De Gucht said. "European exporters will save around 90 million on customs per year and European service providers, such as telecoms and transport, will get greater market access," he explained.

Once the agreement enters into force, the six Central American states will liberalise 69% of their existing trade in manufactured and agricultural goods and fisheries products with the EU, according to...