Subtitle
Study
Volume, number, page
65 p.
Year of Publication
2012
Organization Name
European Parliament
Publisher
European Parliament
City
Brussels
Country of Publication
Belgium
Full Date
March 2012
ISBN or ISSN
978-92-823-3677-9
Category
Official Documents
Theme
BILATERAL RELATIONS UE - LAC
Subregion - European Union
Country - European Union
BIREGIONAL RELATIONS UE - LAC
Agreements
Summits
Association Agreeements
BIREGIONAL DIALOGUES UE-LAC
Government
Business
Keyword(s)
Central America
European Union
Free Trade Agreements
Central American Common Market
Association Agreement
Regional Integration
Caribbean
GSP
Tariffs
Tariff barrier
CAFTA
Foreign trade policy
SICA
CACM
CARIFORUM
FTA
GATT
Commercial policy
Agricultural trade
Imports
Exports
Bilateral trade agreements
Free trade areas
Trade Blocs
Interregional trade
Common markets
Human Rights
Intellectual property
Abstract
The EU Central America Association Agreement is an example of the successful completion of a region-to-region agreement and therefore in line with the EU’s aim of promoting regional integration in other regions through trade and association agreements.
For the EU, economic welfare gains and employment effects from the trade chapter of the Agreement are because of the relative small size of the Central American market expected to be negligible. However, EU exporters will benefit from lower tariffs on manufactured goods especially in automobiles. For the Central American countries (CA), there is the potential of significant gains, but these are not evenly spread. The fact that
CA exporters already benefited from zero tariffs on almost all exports to the EU under the extended Generalised System of Preferences (GSP+) means that there are relatively few sectors that will have enhanced access with the exception of bananas, raw cane sugar and shrimps. Above all, the Agreement will provide legally secure access to the EU market. The Agreement also tackles cross border services and establishment, technical
barriers to trade (TBT), sanitary and phytosanitary (SPS) issues as well as trade remedies in the shape of anti-dumping, countervailing duties or multilateral safeguards. The provisions on intellectual property rights include Geographic Indications (GIs). The trade chapter furthermore contains a human rights clause which stipulates that the parties must ensure that human rights are respected within their jurisdiction. Furthermore there
are provisions on sustainable development.
For the EU, economic welfare gains and employment effects from the trade chapter of the Agreement are because of the relative small size of the Central American market expected to be negligible. However, EU exporters will benefit from lower tariffs on manufactured goods especially in automobiles. For the Central American countries (CA), there is the potential of significant gains, but these are not evenly spread. The fact that
CA exporters already benefited from zero tariffs on almost all exports to the EU under the extended Generalised System of Preferences (GSP+) means that there are relatively few sectors that will have enhanced access with the exception of bananas, raw cane sugar and shrimps. Above all, the Agreement will provide legally secure access to the EU market. The Agreement also tackles cross border services and establishment, technical
barriers to trade (TBT), sanitary and phytosanitary (SPS) issues as well as trade remedies in the shape of anti-dumping, countervailing duties or multilateral safeguards. The provisions on intellectual property rights include Geographic Indications (GIs). The trade chapter furthermore contains a human rights clause which stipulates that the parties must ensure that human rights are respected within their jurisdiction. Furthermore there
are provisions on sustainable development.
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