The government has announced that it will not ratify the trade agreement until the conflict caused by the tariff of 5% added to textiles and footwear coming from the Colon Free Zone is resolved.
Meliton Arrocha, Minister of Commerce and Industry of Panama, announced that the measure has already been communicated to the Colombian government, to whom there was was a call made for dialogue under international trade rules in order to resolve the existing trade disputes.
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.
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.
The Association Agreement with the EU was approved with no negative votes by the Salvadoran Legislative Assembly.
From a press release from the Legislative Assembly of El Salvador:
The Legislative Assembly of El Salvador in plenary session, affirmed on Thursday with 82 votes, the Association Agreement between Central America and the European Union (AA), which will enter into force on August 1.
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.
If Salvadoran Congress has not approved the Association Agreement with the European Union before July 15, the country will lose the benefit of exporting sugar to Europe duty free.
This was stated by the Association of Sugarcane Growers of El Salvador (Procaña), who demanded that the Salvadoran Congress ratify the agreement soon. "Of this amount, El Salvador is entitled to a share of 24,391 tonnes while Guatemala can export 65,000, Nicaragua 21,681, and Honduras and Costa Rica can export 19,464 each," noted an article in Elsalvador.com.
In order to complete the accession process, the Industrial Property Law must be published in the Official Journal, as well as the registration of 114 European GIs.
In addition to ratifying the trade agreement with the European Union, Congress also passed the Industrial Property Law. Stella Zervoudaki, EU ambassador in Guatemala, congratulated the members for having reviewed and given approval to the agreement which "is of paramount importance to Guatemala".
Guatemala is to ask the European Union for a postponement of the entry into force of the Association Agreement with the block.
According to Maria Luisa Flores, Deputy Minister of Foreign Trade, the Guatemalan Congress has not yet approved the industrial property law which certifies the 114 geographical indications required for the AA. "We are going to launch a supporting diplomatic offensive against the European Union, so that they can give the country a chance to enter belatedly," he added.
Congress has until today to approve the amendments to the Industrial Property Act, necessary for the entry into force of the Association Agreement with the EU.
According to Stella Zervoudaki, European ambassador in Guatemala, the adoption of this law requires a 60-day period, plus two for the publication period, so that any interested party can submit their opposition, therefore even if Guatemala ratifies the agreement, scheduled for July 15, the country can not make use of the Association Agreement.
To complete the integration process the Costa Rican Congress must ratify the FTA with Colombia and the framework agreement of the Pacific Alliance.
"... President Laura Chinchilla yesterday began a race against time, as she wants by the end of her term, to make Costa Rica's integration into the trade bloc a reality", reported Nacion.com.
The president received approval for the country to start the process of joining the economic forum.
The Association Agreement between Central America and the European Union will enter into force on August 1 for countries which ratify it before July 15.
From a press release from the Ministry of Foreign Trade of Costa Rica (COMEX):
Today, the deputies in charge of foreign trade of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama met in San Jose, where they held a video conference with the Director General of the Directorate General for Trade of the European Commission, Joao Aguiar Machado, who served as Chief Negotiator for the European Central America Association Agreement (CAAA). During the meeting they discussed the progress of the registration of geographical indications in the legislative process and approval of the Agreement.
Those countries who have not ratified the Association Agreement with the European Union are at risk of losing markets compared to other Central American nations.
In an interview in Siglo21.com.gt by Celso Solano, with the ambassador to the European Union in Guatemala, Stella Zervoudaki, the official explained that there will not be any sanctions if Guatemala fails to ratify the agreement on or before May 15, but the country faces other threats.
In the absence of ratification of the Agreement, the agricultural sector sees its 2013 and 2014 harvests in danger, as European buyers are already negotiating with other Central American countries.
Alvaro Saenz, president of the National Chamber of Agriculture and Agribusiness (CNAA), said the delay in the approval of the CAAA compromises the sector since on June 15 Europe will announce which countries will enter into the first block of the trade agreement to set export quotas.
Lack of ratification of the Association Agreement by most Central American countries, has raised questions about the time of its entry into force.
An article in 7dias.com.do reports that "Representatives from the Central American countries and the European Union (EU) will define on May 15, the day when the Association Agreement will enter into force, diplomatic sources said today."
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