EU, C(entral) America reach first-ever free trade deal

[pampango]

Source: Channel News Asia

Central American countries and the European Union (EU) reached agreement on Tuesday on the first ever free trade deal between the two regions, they announced in a joint statement. It said the deal between the 27-nation EU and the Central American nations of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama followed "an intensive negotiation process".

It is the first ever deal of its kind between the 27-nation bloc and Central America. Salvadorean chief of cabinet Alexander Segovia said the EU's "flexibility" led to the deal. "There was a show of flexibility by the European Union and with that we managed to get to an agreement," El Salvador television quoted him as saying from Madrid.

The deal follows agreement on Monday between the EU and the four-nation South American trading bloc Mercosur to resume talks aimed at reaching a free trade agreement, despite opposition from a number of European nations. "We have decided to restart the talks to reach an agreement that is ambitious and balanced," Spanish Prime Minister Jose Luis Rodriguez Zapatero told a news conference late on Monday.

The EU and Mercosur, which is made up of Argentina, Brazil, Uruguay and Paraguay, began free trade talks in 1999 but they stalled in 2004 due to disagreement over tariffs and subsidies paid to European farmers. A free trade deal between the EU and Mercosur has been a key goal of Spain, which enjoys close ties with its former colonies in Latin America.

Read more: http://www.channelnewsasia.com/stories/afp_world_business/view/1057431/1/.html

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"the first ever free trade deal between the two regions" - The EU and Mexico have had trade deal since 2000. Perhaps they don't consider Mexico to be "Central America".

Venezuela is still not a member of Mercosur since a right-wing party (Colorado) in Paraguay is holding up parliamentary approval of Venezuela's membership. Interesting that the socialist government in Spain is pushing so hard for closer economic ties with Latin America.

[dipsydoodle]

1. Thanks for posting

:thumbsup:

It was inevitable that France would try to block this. France is the main beneficiary of the EU's Common Agricultural Policy, which pays billions of euros each year in subsidies for food production.

[Lucky Luciano]

2. Mexico is not considered central America. C America is guatemal to panama.