The high demands for quality standards, traceability and safety constitute a barrier to making the most out of the Agreement.
In the view of representatives from the Nicaraguan export sector, it has not been possible to make the most out of the association agreement with the European Union in its first two years, due to, among other things, unfavorable international prices, as has been the case of products such as sugar, coffee , cocoa, oil and alcohol.
The Council of Ministers of Economic Integration of Central America has until November to ratify the tax refund mechanisms governing the import of European goods.
The entire Central American region must have the same system of tax refunds on Import Customs Duties (DAI) from August 1, 2015, as established by the Association Agreement (AA) between Central America and the European Union (EU).
The website for the "Business Intelligence System of the Association Agreement between Central America and the European Union" summarizes the regulatory framework, procedures, market information and other topics of interest to exporting SMEs.
The Ministry of Economy of El Salvador has put online a "Business Intelligence System of the Association Agreement between Central America and the European Union", a website which aims to present the content and the benefits of the Association Agreement in a format which is simple and accessible, so that Central American exporters and importers can receive this information and maximize opportunities.
To date the Trade Pillar Committee has not yet been formed with representatives of each of the Central American countries, despite the entry into force of the Association Agreement on January 1st 2014.
Central America has not managed to harmonize and standardize regional interests in order to make use of the Agreement with the European Union. Nearly six months after its entry into force, they have not institutionalized mechanisms to comply with even short term commitments related to regional trade, such as the harmonization of trade regulations, customs administration and trade policy. This failure has consequences.
The Association of European Banana Producers has proposed extending the community production model until 2020 in order to face competition from Central America.
From a statement issued by the Costa Rican Foreign Trade Promotion Office:
European banana producers seek to strengthen position in light of Latin American exports
The Association of European Banana Producers (APEB) has advocated maintaining Community production , its acres and producer income until 2020, and notes that "they will take the necessary measures to counter the agreements of the European Union (EU) and Latin American countries that ignore the state of food security and the environment. "
European business people have criticised errors made by customs officials in implementing the terms of the Association Agreement.
After three months of the entry into force of the Association Agreement between Central America and the European Union, a lack of knowledge on the part of customs authorities has complicated the implementation of the trade agreement, as explained by the Chambers of Commerce and Industry of Spain (CAMACOES) Italy (Camcig) and Germany.
The elimination of tariffs on agricultural products and flexible rules of origin for products such as tuna, textiles and plastics are part of the changes incorporated in the Agreement.
The Minister of Economy, Sergio de la Torre said that in the next few years Guatemala's exports to Europe could be doubled, as has happened with the other trade agreements that the Central American nation has signed.
The Council of the European Union has approved Guatemala's application to the trade pillar of the Association Agreement with Central America.
From a press release by the Government of Panama:
The Council of the European Union met today at its headquarters in Brussels, Belgium, and confirmed the implementation of the Trade pillar of the Association Agreement between this institution and Guatemala starting December 1st.
Technical assistance and training will be provided for the public institutions who will be involved in the implementation of the agreement.
"AA-Integration Project" will take place in a period of 80 months with a $11.6 million investment, of which $9.1 million will be provided by the European Union and the rest by the Guatemalan government.
The project will be implemented by the Ministry of Foreign Affairs in Guatemala.
Small and medium enterprises in the region, especially in the food sector, have great opportunities to export to the European market.
This was explained by Ingrid Figueroa, director of the Regional Center for the Promotion of MSMEs (Cenpromype), an agency of the Central American Integration System (SICA).
Aspects such as quality, standards, certifications and seals of approval are elements that European consumers evaluate before acquiring goods that are produced in the region, therefore this must be made known to the producers. "For a small company that has not met the requirements of the European market it can be a complex issue," she said.
In order to export food to the EU companies must establish efficient processes for traceability, product withdrawal and recovery.
This was explained Valentin Diaz, a specialist from the European Union in Nicaragua who gave a workshop entitled "Trainer of trainers in traceability, withdrawal and recall of products, aimed at the food industry."
The trade agreement between Guatemala and the European Union will enter into force provisionally on 1 December, authorities announced.
An article in Reuters reports that "Guatemalan exporters today welcomed the entry into force, on 1 December, of the trade pillar of the Association Agreement (AA) with the European Union (EU), a region with whom the country hopes to double product sales within five years."
The entry into force of the FTA with the European Union opens up opportunities for Colombia products such as lemons, Tahiti, papaya, cantaloupe and watermelons.
From an article by the Costa Rican Trade Promotion Office (PROCOMER):
With the entry into force of the FTA between the EU and Colombia, as of August 2013, the Colombian are looking to to venture much further into markets such as the German one, because one of the signs of the growing deamand in Europe is that 46% of imports which arrived at Frankfurt airport, which weighed 98,600 in 2012, were for fruit and vegetables.
Nicaragua is able to sell 10,163 metric tons duty free to the EU.
Altogether, the Central America's total export quota adds up to 150,000 tons.
Mario Salaverria, president of the Sugar Association of El Salvador said the decision to sell the sugar was due to "uncertainty about the problem they had with Italy and that delivery times won't allow them to make the most of this access."