Trade negotiators from Central American countries and the European Union met on 3 February 2010 for a three-day informal meeting at which they agreed on a work plan for the conclusion of an Association Agreement in May. The seventh round of negotiations took place in Brussels on 22 and 26 February 2010 with Panama as an observer and officially announced its intention to participate in the negotiations. A month later, trade negotiators held a new round of technical talks in Brussels. Negotiations were concluded in May 2010 at the Latin America-Caribbean and European Union Summit in Madrid, Spain. Central America and the European Union discussed how to proceed with the agreement at the XVI meeting of the Joint Commission held in Brussels on 8 February 2011. On the 22nd. In March 2011, Central America and the European Union initialled the agreement after its legal review. On 25 October 2011, the European Commission reviewed and approved the agreement, thus completing the first phase of the signature procedure. In the next phase, the Council of the European Union, for its part, will examine the agreement and approve its signature. Documents containing information about the contract and a summary of the trade agreement between the United Kingdom and Central America.
In 1993, the European Union and Central America signed a framework cooperation agreement. This Agreement entered into force on 1 March 1999. At the EU-Latin America Summit in May 2002, the EU and six Central American countries – Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama – agreed to negotiate a new political dialogue and cooperation agreement, which was signed on 15 May 2002. It was signed in Rome in December 2003. Article 359 of the Agreement provides for the accession of new members. The main objective of the EU`s trade policy for Central America is to increase bilateral trade and thus strengthen the process of regional integration between the countries of the region. In practice, this means the creation of a customs union and economic integration in Central America. The EU has supported this process through its trade agreement and trade-related technical cooperation programmes. The Committee on Trade and Sustainable Development shall meet during the first year following the entry into force of the Agreement and, if necessary thereafter, to monitor the implementation of Title VIII (Trade and Sustainable Development), including cooperation activities under Title VI of Part III (Economic and Trade Development) of the Agreement. The decisions and recommendations of the Committee shall be adopted by mutual agreement between the Parties and made available to the public, unless the Committee decides otherwise. The Central American countries covered by this agreement are: The Association Agreement between Central America and the European Union entered into force for Costa Rica and El Salvador on 1 October 2013. Two months later, on 1 December 2013, the agreement for Guatemala entered into force.
The European Union and Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama) signed an Association Agreement at the meeting of the Presidents of the Central American Integration System in Tegucigalpa(Honduras) on 29 June 2012. On 6 April 2009, the EU issued a statement informing of the temporary interruption of negotiations on an EU-Central America Association Agreement. A few days later, on 24 April 2009, the EU and Central America agreed to resume negotiations on an agreement. This new agreement aims to promote sustainable development and deepen the process of regional integration. This closer economic integration between the countries of the Central American region is important to attract investment to the region and help local companies develop the strength of their regional market to compete internationally. Croatia joined the European Union on 1 July 2013 and the parties to the agreement are therefore currently negotiating its accession to the Central America-EU Association Agreement. EU exports to Central America increased by 8.9% in 2019. The increase was led by exports of mineral oil, machinery and equipment, and chemicals, which increased 69%, 11.9% and 9.2%, respectively. The first meeting of the Trade and Sustainable Development Board of the Central America-European Union Association Agreement was held in Managua, Nicaragua, from 18 to 19 November 2014.
The last meeting of the Association Committee and Sub-Committees was held in Antigua, Guatemala, from 18 to 27 June 2019. The EU and the Central American countries reaffirmed their objective of concluding an Association Agreement with a free trade area at the EU-Latin America Summit in Guadalajara (Mexico) in May 2004 and at the EU-Central America Ministerial Meeting held in Luxembourg in May 2005, at which Ministers welcomed the launch of a joint assessment of regional economic integration and the creation of a joint working group ad hoc in January 2005. The objective of concluding a Comprehensive Association Agreement was reaffirmed at the EU-Central America Summit in Vienna in May 2006. Negotiations on the Association Agreement started in Brussels on 28 June 2007. The first round took place from 22 to 26 October 2007 in San José, Costa Rica. On 25 and 29 February 2008, Central America and the EU concluded the second round of negotiations in Brussels, Belgium. The third round of negotiations was held in El Salvador on 14 April 2008. The fourth cycle took place in Brussels on 14 and 18 July 2008. On 6 and 10 October 2008, the Länder concluded the fifth round of negotiations. The sixth round of negotiations took place on 26 and 30 January 2009 in Brussels, Belgium.
The EU and the Central American region concluded a new Association Agreement on 29 June 2012. The Association Agreement is based on three complementary and equally important pillars, namely political dialogue, cooperation and trade, which are mutually reinforcing and have their impact. They are the right tools to support economic growth, democracy and political stability in Central America. On 21 May and 1 July 2013, the National Assembly of Costa Rica approved the Association Agreement between Central America and the EU in the first and second debates respectively. Unless otherwise specified, the term “EU” means, for all specified years, the current European Union of 27 Member States. According to EUROSTAT`s date, trade flows between the EU and Central America amounted to €12 billion in 2019. The EU`s trade balance with Central America shows a surplus of €0.4 billion in 2019 (the previous year there was a surplus of €0.1 billion). The EU and Central America exchange their respective statistics each year to produce a joint analysis, as Eurostat data tend to overestimate EU exports to Central America given the importance of the Panamanian Free Trade Zone (the second largest in the world). .