EU agrees central America trade deal

Agreement to be signed with six countries after tense negotiations.

The European Union and six central American countries have made a breakthrough in trade negotiations and are expected to sign a trade agreement at a summit in Madrid tomorrow (19 May), according to the European Commission.

Karel De Gucht, the European commissioner for trade, and trade ministers from Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama finalised negotiations on the trade component of an Association Agreement this morning.

In a statement, the ministers expressed their “full satisfaction” with the deal, “which will result in an ambitious, comprehensive and balanced trade pillar of the Association Agreement”.

Officials described the talks as “difficult” and “complex”, and they dragged on late into the night on Saturday and Sunday. Quotas and tariffs for cheese, bananas, textiles and milk powder were among the most contentious issues. A previous round of talks collapsed earlier this month when the two sides failed to reach agreement. 

The EU is holding a series of bilateral and regional summits with Latin America and the Caribbean in Madrid until Thursday, with the main summit involving all countries of the region scheduled to take place today.

Also during the summit, the EU will re-launch trade talks with Mercosur – Argentina, Brazil, Paraguay and Uruguay – that were suspended in 2004.

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