Regional Trade With EU Opens

By Adam Williams
Tico Times Staff | awilliams@ticotimes.net

Central America and the European Union (EU) are officially free-trade partners. On Tuesday, the six countries of Central America and the 27-member EU bloc signed a free-trade and cooperation agreement in Madrid, Spain that will slash tariffs on key items such as bananas, milk, automobiles, textiles, rice and sugar.

In Agreement: European and Central American leaders signed an historic agreement between their two trade blocs that left both sides feeling optimistic.

JuanJo Martin | EFE

If the agreement is ratified by Costa Rica’s Legislative Assembly, it will be the country’s eighth free-trade deal, with number nine – the agreement with China – also awaiting the legislature’s approval.

“This is one of the first achievements of this government,” said Costa Rican President Laura Chinchilla via video conference from Madrid on Tuesday. “ Costa Rica now has access to the biggest markets in the world, including Europe, the U.S. and China.”

The final round of negotiations in Madrid centered on setting satisfactory trading quantities for sugar, cheese, powdered milk, textiles, beef and bananas, as well as assuring the geographic origin of specific products. During the previous round of talks in Guatemala during the first week of May, disagreements over quotas for these products stalled negotiations. The talks began in mid-2007.

READ FULL ARTICLE