The Council of the European Union has approved Costa Rica's entry into the Association Agreement between Central America and the European Union.
From a press release by the Ministry of Foreign Trade (Comex):
The European Union Council today unanimously approved Costa Rica's entry into the Association Agreement between Central America and the European Union (CAAA).
The Trade Policy Committee of the Council of the European Union has recommended the entry into force of the agreement with Costa Rica on 1st of October.
From a press release by the Ministry of Foreign Trade (Comex):
The Trade Policy Committee of the Council of the European Union, composed of the appropriate Ministries of the Member States agreed today to recommend the entry into force for Costa Rica of the Association Agreement between Central America and the European Union (CAAA). The decision is an important step towards achieving the enforcement of this agreement from October 1.
Cheese Producers in Costa Rica and El Salvador opposed the registration of the Italian brands Provolone Valpadana , Fontina, Gorgonzola and Parmigiano Reggiano.
The Association Agreement with the European Union (AA) will not come into force on August 1 for Costa Rica and El Salvador, but on October 1, as long there is a resolution to the conflict caused by Costa Rican and Salvadoran dairy producers who expressed their opposition to the registration of geographical origin of Italian cheeses.
The Costa Rican Congress has finally approved the Association Agreement between Central America and the European Union, which will take effect on August 1.
From a press release issued by the Ministry of Foreign Trade of Costa Rica (COMEX):
The Legislature has approved on its second reading the Association Agreement between Central America and the European Union (CAAA), which seeks to boost trade relations between Central America and the old continent, by improving the business climate, creating new opportunities for trade, investment and employment and strengthening institutions in the region.
The establishment of a new tax at Costa Rican boarders on people and goods has halted approval of the Association Agreement with the European Union.
A new tax of $5 per person passing the through border posts and $25 for each bill of goods moved through customs, has been rejected by congressmen who oppose the approval speed of the association agreement (AACUE by its initials in Spanish).
Costa Rica will benefit from additional export quotas, SGP-Plus consolidation and greater regional economic integration.
This is the summary of the benefits of signing the Association Agreement with the European Union according to Foreign Trade Minister Anabel Gonzalez.
Regarding quotas, Nacion.com reports that there will be an additional 19,500 tons of sugar per year, and that other sectors such as beef, textiles and rice will also get extra export quotas.
Panama's accession will be formalized in late June and will accelerate the elimination of tariffs and facilitate regional trade.
In Costa Rica and other Central American countries there are expectations over Panama's accession to the Central American Economic Integration Secretariat, which will be signed in Tegucigalpa on June 29, and the regional benefits it will bring.
Between 2 and 5 years will pass until the Association Agreement with Europe enters into force, but Costa Rican exporters are already studying how to compete in that market.
Being more and more competitive seems to be the basic recipe to effectively compete in the EU’s 500 million person market.
Costa Rican businessmen are already seeking the necessary tools to achieve this indispensable increase in competitiveness: advice and training in how to export to Europe, business networking and adapting their goods to Europe’s demands and preferences.
The region must now define how to distribute the import and export quotas negotiated with the European Union.
Central America obtained a regional sugar export quota of 162.000 metric tons, and a meat quota of 9.500 metric tons.
“Rice got a tariff-free quota of 20.000 metric tons”, reported Laprensalibre.co.cr. “As for banana, there will be a gradual tariff reduction down to €75 per ton in 2020.