Directorate-General for Trade

Central America

For the last decade the EU's share in Central American trade has remained largely stable at around 10%. Historically the bulk of Central America's trade is with the USA and Latin America, and it is only recently that the region has actively sought to widen its export markets in Europe and elsewhere. Central American exports to the EU are dominated by agricultural products, especially coffee, bananas and other fruits, which together accounted for 36% of exports to the EU in 2007. The most important exports from the EU to Central America are machinery, chemicals, ships, boats, vehicles and fuels.

All the countries of the Central American region benefit from the GSP+ system as part of the EU's Generalised System of Preferences.

The new Association Agreement

At the EU-Latin America and Caribbean summit in 2004, the EU and the Central American region agreed to negotiate a new Association Agreement. Like the existing Political Dialogue and Cooperation Agreement, this new agreement would aim at reinforcing the political and economic stability of the Central American countries, fostering sustainable development and deepening their process of regional integration. This closer economic integration between the countries of the Central American region is important for attracting investment to the region and helping local businesses develop the strength in their regional market to compete internationally. Negotiations on this new Association Agreement were launched in 2007.

Trade Related Technical Assistance (TRTA)

The EU’s central economic policy objective for Central America is to strengthen the process of regional integration between the region's countries themselves. In practical terms this means the creation of a customs union in Central America. The EU has fostered this process through its trade-related technical assistance in the region.