WT/REG422/1  
12 July 2023 
(23-1309) Page: 1/82 
Committee on Regional Trade Agreements    
 
FACTUAL  PRESENTATION  
ASSOCIATION AGREEMENT BETWEEN THE UNITED KINGDOM AND CENTRAL AMERICA  
(COSTA RICA, EL SALVADOR, GUATEMALA, HONDURAS, NICARAGUA AND PANAMA),  
(GOODS AND SERVICES)  
Report by the Secretariat  
This report, prepared for the consideration of the Association Agreement between the 
United Kingdom and Central America (Costa Rica, El Salvador, Guatemala, Honduras, 
Nicaragua and Panama), has been drawn up by the WTO Secretariat on its own 
responsibility  and in full consultation with the Parties. The factual presentation 
reproduces as closely as possible the terminology used in the Agreement and in the 
comments provided and does not imply official endorsement or acceptance by the 
Secretariat of such termi nology. The report has been drawn up in accordance with the 
rules and procedures contained in the Decision for a Transparency Mechanism for 
Regional Trade Agreements (WT/L/671) and thus does not imply any value judgement 
by the Secretariat regarding the co ntents of the Agreement.  
 
Any technical questions arising from this report may be addressed to Rohini Acharya 
(tel: +41 22 739 5874). Any statistical questions arising from this report may be 
addressed to Rowena Cabos (tel: +41 22 739 5185) or Pamela Bayon a (tel: +41 22  
739 5529.  
  WT/REG422/1  
 
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  Table of Contents  
 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 5 
1.1   Merchandise trade  ................................ ................................ ................................ ..... 5 
1.2   Trade in services and investment  ................................ ................................ .................  7 
2   CHARACTERISTIC ELEMENTS OF THE AGREEMENT  ................................ ....................  10 
2.1   Background information  ................................ ................................ ............................  10 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ ...........  14 
3.1   Import duties and charges, and quantitative restrictions  ................................ ................  14 
3.1.1   General provisions  ................................ ................................ ................................ . 14 
3.1.2   Liberalization of trade an d tariff lines  ................................ ................................ ........  15 
3.1.3   Liberalization schedules  ................................ ................................ ..........................  15 
3.1.3.1    The United Kingdom  ................................ ................................ ............................  15 
3.1.3.2    Central America  ................................ ................................ ................................ .. 17 
3.1.4   Tariff rate quotas  ................................ ................................ ................................ ... 24 
3.2   Rules of origin  ................................ ................................ ................................ ..........  25 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................  27 
3.4   Regulatory provisions on trade in goods  ................................ ................................ ....... 27 
3.4.1   Standards  ................................ ................................ ................................ .............  28 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ .... 28 
3.4.1.2    Technical barriers to trade  ................................ ................................ ....................  29 
3.4.2   Safeguard mechanisms  ................................ ................................ ...........................  30 
3.4.2.1    Global safeguards  ................................ ................................ ...............................  30 
3.4.2.2    Bilateral safeguards  ................................ ................................ .............................  30 
3.4.2.3    Specific safeguards for agriculture  ................................ ................................ .........  31 
3.4.3   Anti-dumping and countervailing measures  ................................ ...............................  31 
3.5   Subsidies and state -aid ................................ ................................ .............................  32 
3.5.1   Customs -related procedures and trade facilitation ................................ .......................  32 
3.5.2   Other regulations  ................................ ................................ ................................ ... 34 
3.6   Sector -specific provisions on trade in goods  ................................ ................................ . 34 
3.6.1   Agriculture  ................................ ................................ ................................ ............  34 
4   PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  ................................ .........  34 
4.1   Scope and definitions  ................................ ................................ ................................  34 
4.2   Denial of benefits  ................................ ................................ ................................ ..... 35 
4.3   General provisions on trade in services and investment  ................................ ..................  35 
4.3.1   Market access  ................................ ................................ ................................ ....... 35 
4.3.2   National and MFN treatment  ................................ ................................ ....................  35 
4.3.3   Commercial presence  ................................ ................................ .............................  36 
4.3.4   Performance requirements  ................................ ................................ ......................  36 
4.3.5   Senior Managers and Boards of Directors  ................................ ................................ .. 36 
4.3.6   Movement of natural persons  ................................ ................................ ..................  36 WT/REG422/1  
 
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  4.4   Liberalization commitments  ................................ ................................ ........................  37 
4.4.1   The United Kingdom  ................................ ................................ ...............................  37 
4.4.1.1    MFN and horizontal commitments  ................................ ................................ ..........  38 
4.4.1.2    Sector specific commitments  ................................ ................................ ................  38 
4.4.2   Central American Republics  ................................ ................................ .....................  41 
4.4.2.1    Costa Rica  ................................ ................................ ................................ ..........  41 
4.4.2.2    El Salvador  ................................ ................................ ................................ ........  44 
4.4.2.3    Guatemala  ................................ ................................ ................................ .........  47 
4.4.2.4    Honduras  ................................ ................................ ................................ ...........  49 
4.4.2.5    Nicaragua  ................................ ................................ ................................ ..........  52 
4.4.2.6    Panama  ................................ ................................ ................................ .............  54 
4.4.3   Other investment related provisions  ................................ ................................ .........  57 
4.5   Regulatory provisions  ................................ ................................ ................................  57 
4.5.1   Domestic regulation  ................................ ................................ ...............................  57 
4.5.2   Mutual Recognition  ................................ ................................ ................................  58 
4.5.3   Subsidies  ................................ ................................ ................................ ..............  58 
4.5.4   Safeguards  ................................ ................................ ................................ ...........  58 
4.5.5   Other  ................................ ................................ ................................ ...................  58 
4.5.5.1    Cooperation  ................................ ................................ ................................ ....... 58 
4.5.5.2    Transparency and disclosure of confidential information  ................................ ............  58 
4.6   Sector specific provisions on trade in services  ................................ ...............................  58 
4.6.1   Computer services  ................................ ................................ ................................ . 58 
4.6.2   Courier services  ................................ ................................ ................................ ..... 58 
4.6.3   Telecommunication services  ................................ ................................ ....................  59 
4.6.4   Financial services  ................................ ................................ ................................ ... 59 
4.6.5   International maritime services  ................................ ................................ ................  60 
5   GENERAL PROVISIONS OF THE AGREEMENT  ................................ .............................  60 
5.1   Transparency  ................................ ................................ ................................ ...........  60 
5.2   Current payments and capital movements  ................................ ................................ .... 60 
5.3   Exceptions  ................................ ................................ ................................ ...............  61 
5.3.1   General exceptions  ................................ ................................ ................................  61 
5.3.2   Security exceptions  ................................ ................................ ................................  61 
5.3.3   Balance -of-payments safeguards  ................................ ................................ .............  61 
5.3.4   Taxation  ................................ ................................ ................................ ...............  61 
5.4   Accession and withdrawal  ................................ ................................ ..........................  61 
5.5   Institutional framework  ................................ ................................ .............................  62 
5.6   Dispute settlement  ................................ ................................ ................................ ... 62 
5.7   Relationship with other agreements concluded by the parties  ................................ ..........  63 
5.8   Government procurement  ................................ ................................ ..........................  67 
5.9   Intellectual property rights  ................................ ................................ .........................  67 WT/REG422/1  
 
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  5.10   Competition  ................................ ................................ ................................ ...........  69 
5.11   State -owned enterprises and designated monopolies  ................................ ...................  69 
5.12   Environment and labour  ................................ ................................ ...........................  70 
5.13   Electronic commerce  ................................ ................................ ...............................  71 
5.14   Small and medium -sized enterprises  ................................ ................................ .........  71 
ANNEX 1  ................................ ................................ ................................ ........................  72 
ANNEX 2  ................................ ................................ ................................ ........................  81 
 
  WT/REG422/1  
 
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Key Facts  
 
Parties to the Agreement:  Costa Rica, El Salvador, 
Guatemala, Honduras, Nicaragua, 
Panama and the United Kingdom  
 
Date of Signature:    18 July 2019  
 
Date of Entry into Force:  1 January 2021  
 
Date of Notification:   31 December 2020  
 
Full implementation:   1 January 2027  
 
 The Factual Presentation describes the Agreement establishing an Association between the 
United Kingdom of Great Britain and Northern Ireland (the UK) and Central America1 (hereinafter 
referred to as "the Agreement"), which was concluded by the Parties and entered into force on 
1 January  2021. As the Agreement preserves most of the commitments between the Parties under 
the Agreement establishing an Association between the European Union and its Member States on 
the one hand, and Central America on the other (hereinafter referred to as "the EU -Central America 
Agreement") , the factual presentation also refers, like the Agreement, to the EU -Central America 
Agreement.  
 
1  TRADE ENVIRONMENT  
1.1.  Key indicators on the size and share of merchandise trade of the Parties are provided in 
Table  1.1. The UK is a significantly larger economy than the Central American Parties with GDP at 
USD 3,187 billion in 2021, compared to the largest Central American economy, Guatemala, whose 
GDP was USD 85.7 billion. The trade to GDP ratios of  the Parties are relatively similar, ranging from 
22.8 for Guatemala, 28.9 for the UK to 47.9 for Nicaragua.  
1.1  Merchandise  trade  
1.2.  In terms of merchandise trade, the UK ranked 6th and 10th respectively in world imports and 
exports. Among the Central American P arties Honduras ranked 22nd and 23rd in global imports and 
exports, while Nicaragua ranked 79th and 85th in the world for imports and exports.  
Table 1.1 The United Kingdom and Central America Republics: Merchandi se Trade 
Profiles 2021  
Member  Merchandise trade - 2021  Rank in world 
tradea – 2021  GDP 
USD 
billion 
(2021)  Trade  
(% GDP, 
2019 -
2021)  Exports 
USD 
billion  
% world 
exports  
Imports 
USD 
billion  
% world 
imports  
Exports  
Imports  
Central America          
Costa Rica  15.5 0.07 20.8 0.09 56 55 64.2 33.2 
El Salvador  6.6 0.03 15.1 0.07 84 63 28.0 38.4 
Guatemala  13.8 0.06 26.7 0.12 50 49 85.7 22.8 
Honduras  10.2 0.05 15.1 0.07 23 22 28.2 37.1 
Nicaragua  6.5 0.03 9.8 0.04 85 79 14.3 47.9 
Panama  13.2 0.06 20.6 0.09 62 57 63.6 39.3 
United Kingdom  468.2  2.10 693.8  3.07 10 6 3,187  28.9 
a  excluding intra -EU trade.  
Source:  WTO Secretariat Trade Profiles (as reported on November 2022).  
 
1 Central America refers to Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama.  WT/REG422/1  
 
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  1.3.  Trade between Central America (as a group) and the UK during 2018-2020 is shown in 
Chart  1.1. In their global trade, both the Central American Republics and the UK had an overall trade 
deficit during this period. Figures on bilateral trade show a growing trade deficit with Central 
America.  
Chart 1.1 Bilateral and global merchandise trade between Central America (CA) and the 
United Kingdom 2018 -2020  
 
Note:  Panama data from Comtrade does not include ecozone data (national data was used); more accurate 
data was retrieved from: https://www.inec.gob.pa/COMERCIO_EXT/  
Source:  UK and Central American authorities ; UNSD, Comtrade database.  
 
1.4.  Chart 1.2 shows the commodity structure of trade between the UK and Central American 
countries, as well as of their global trade in the period 2018 -2020 on the basis of product categories 
of the Harmonized System (HS). Vegetable s form the majority of Central America's global exports 
(22%) as well as the UK's imports from Central America (67%), followed by prepared foods. In turn, 
around two -thirds of Central American imports from the UK consisted of chemicals, vehicles and 
machin ery – the same top three UK global export sectors.  
0.00.10.20.30.40.50.6
01020304050607080
2018 2019 2020B.  Central America
(USD Billion)
Imports from United Kingdom (Right Axis)
Exports to United Kingdom (Right Axis)
Total Imports
Total Exports0100200300400500600700800
0.00.10.20.30.40.50.60.70.8
2018 2019 2020A. United Kingdom 
(USD Billion)
Imports from Central America (Right Axis)
Exports to Central America (Right Axis)
Total Imports
Total ExportsWT/REG422/1  
 
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  Chart 1.2 UK-Central America: Product composition of merchandise trade (by HS 
Section), annual average 2018 -2020  
 
Note:  Exchange rates from GBP to USD: 0.7495 ( 2018), 0.7834 (2019) and 0.7800 (2020) . 
Source:  UK authorities; UNSD, Comtrade database (other Central America except Panama) and Instituto 
Nacional de Estadística y Censos (Panama).  
 
1.2  Trade in services and investment  
1.5.  Key indicators on trade in services of  the Parties are provided in Table 1.2. While the UK was 
ranked 4th and 3rd largest global importer and exporter of services, the global rankings of the Central 
American economies range from 56th and 39th for imports and exports for Costa Rica to 79th and 85th 
for Nicaragua.  
Table 1.2 The United Kingdom and Central America Republics: Trade in Services Profiles 
2021  
Party  Trade in Services – 2021  Rank in world tradea - 2021  Exports 
USD 
billion  
% world 
exports  
Imports 
USD 
billion  
% world 
imports  
Exports  
Imports  
Central America        
Costa Rica  9 0.15 4.7 0.08 39 56 
El Salvador  3 0.05 2.1 0.04 64 80 
WT/REG422/1  
 
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  Party  Trade in Services – 2021  Rank in world tradea - 2021  Exports 
USD 
billion  
% world 
exports  
Imports 
USD 
billion  
% world 
imports  
Exports  
Imports  
Guatemala  2.8 0.05 4.1 0.07 68 62 
Honduras  2.5 0.04 2.6 0.05 72 75 
Nicaragua  6.5 0.03 9.8 0.04 85 79 
Panama  10.7 0.18 4.2 0.08 31 61 
United Kingdom  415.1  6.92 238.6  4.31 3 4 
a  excluding intra -EU trade.  
Source:  WTO Secretariat Trade Profiles (as reported on November 2022).  
1.6.  Charts 1.3 and 1.4 show the Parties' global trade in commercial services from 2011 -2020. In 
2020, global imports by the UK were led by other business services, travel and financial services 
while global exports were dominated by other business services, financial services and 
telecommunications, computer, and information services.  
Chart 1.3: UK: Trade in commercial services with world, 2011 -2020  
 
Note:  Exchange rates from GBP to USD: 0.7495 (2018), 0.7834 (2019) and 0.7800 (2020).  
Source:  WTOStat (2011 -2017) and UK authorities (2018 -2020).  
1.7.  Chart 1.4 shows that for Central America, global im ports in commercial services were led by 
transport services, other business services, and financial services, while global exports were largely 
comprised of transport services, other business services, and travel services.  
1.8.  In terms of bilateral trade in c ommercial services, Chart 1.5 shows the UK's exports and imports 
to Central America. The main import sources and export destinations during this period were Costa 
Rica, Panama and Nicaragua.  
WT/REG422/1  
 
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  Chart 1.4: Central America: Trade in commercial services with wo rld, 2011 -2020  
 
Note:  Data for 2020 has been consolidated from data submissions by the Parties and available data from 
WTO Stat. Discrepancies for 2020 may remain due the completeness of available data at the time of 
reporting. For Nicaragua, data for exports (credits) and imports (debits) in 2020 are preliminary.  
Source:  Costa Rican authorities (2018 -2020), Dirección de Análisis Económico  con datos del Banco de 
Guatem ala (2018 -2019); Instituto Nacional de Estadística y Censos (Panama) (2018 -2019); and WTO 
Stat (years 2011 -2017 and El Salvador (2018 -2020), Guatemala (2020), Honduras (2018 -2020), and 
Panama (2020)).  
Chart 1.5: UK: Bilateral trade in commercial services w ith Central America, 2018 -2020  
 
Note:  Exchange rates from GBP to USD: 0.7495 (2018), 0.7834 (2019) and 0.7800 (2020) . No 
disaggregated data available by BPM6 services categories; no bilateral trade data f or Central 
America available; no bilateral time se ries data available from WTO Stat.  
Source:  UK authorities.  
 
1.9.  Tables 1.3 and 1.4 show inward and outward foreign direct investment stock and flows for the 
United Kingdom and Central America for 2018 -2020 in millions of US dollars. Central American 
WT/REG422/1  
 
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  bilateral FDI data is only available for Costa Rica which shows inward  stocks of USD1,263 million 
and USD 1,321 respectively in 2018 and 2019; inward FDI flows show divestment of USD8.2 million 
and USD 12.5 million in 2018 and 2020, and investment of USD 8.2 million in 2019 by the UK. Data 
for Guatemala is only available in net values and could not be further disaggregated. The figures 
show that the UK has been a net recipient of global FDI during this period and a net investor in 
Central America.  
Table 1.3: United Kingdom: Foreign direct investment (USD Million), 2018 -2020  
FDI World  
Outward  Inward  
2018  2019  2020  2018  2019  2020  
Stock  1,938,720  2,102,915  2,129,381  2,098,491  2,094,001  2,473,286  
Flows  82,958  11,861  -69,665  87,872  53,703  43,742  
Central America  
 Outward  Inward  
 2018  2019  2020  2018  2019  2020  
Stock  632 899 718 1,729  1,367  1,550  
Flows  1 80 -49 87 -8 91 
Source:  UK authorities.  
Table 1.4: Central America: Foreign direct investment (USD Million), 2018 -2020  
 FDI World  
Outward  Inward  
2018  2019  2020  2018  2019  2020  
Costa Rica  Stock  3,219  3,446  3,570  39,393  43,564  46,112  
Flows  53 117 87 2,336  2,748  1,710.8  
El Salvador  Stock  3 4 4 9,666  9,981  10,159  
Flows  -0 0 -1 826 636 280 
Honduras  Stock  2,506  2,477  2,495  15,981  16,479  16,898  
Flows  66 3 49 961 498 419 
Nicaragua*  Stock  .. .. .. .. .. .. 
Flows  75.1 59.1 39.5 837.6  503.0  182.3  
Panama  Stock  5,254  5,590  5,552  53,311  57,374  57,981  
Flows  -163 -634 -39 5,080  4,320  607 
 
Guatemala ** World  United Kingdom  
2018  2019  2020  2018  2019  2020  
Total FDI  993.9  998.2  728.3  -12.1 6.9 -13.6 
Note:  No rounding up for exact figures submitted by Parties.  
.. Not available  
* Data are preliminary.  
** Data only available until September; no available breakdown of inflows and outflows. For Nicaragua, 
FDI inflows are recorded as liabilities in the Bala nce of Payments (investment by non -residents in the 
country) and outflows as assets (investment by Nicaraguan residents abroad).  
Source:  UK authorities; Banco Central de Costa Rica, FMI Encuesta coordinada de inversión extranjera 
directa; Dirección de Aná lisis Económico con datos del Banco de Guatemala; Instituto Nacional de 
Estadística y Censos (Panama) for FDI flows (2018 -2019); UNCTAD Stat for El Salvador, Honduras 
global FDI data and Panama global data for FDI flows (2020) and Stock (2018 -2020) . 
2  CHARAC TERISTIC ELEMENTS OF THE AGREEMENT  
2.1  Background information  
2.1.  UK-Central America trade relations were previously governed by the EU -Central America 
Association  Agreement.2 Following the withdrawal of the UK from the EU, as of 1 January 2021 the 
EU-Central America Association Agreement  no longer applies to the UK. The UK -Central America 
 
2 The Trade pillar of the EU-Central America Association Agreement  has been applied since 1 August 
2013 by the EU, Honduras, Nicaragua and Panama; 1 October 2013 by Costa Rica and El Salvador; and 1 
December 2013 by Guatemala. Following the accession of Croatia to the EU on 1 July 2013, the Parties signed 
a Protocol for extending the Agreement to Croatia on 26 November 2020; as of January 2022, the Protocol was 
not yet in force. More information on the EU -Central America Agreement" is in the WTO documents series 
WT/REG332.  WT/REG422/1  
 
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  Association  Agreement (hereinafter "the Agreement" or the incorporated Agreement) was sign ed on 
18 July 2019 and entered into force on 1 January 2021. It was notified to the WTO on 31 December 
2020, under Article  XXIV:7(a) of the GATT 1994 for its goods aspects, and Article V of the GATS for 
its services aspects.  The text of the Agreement, toge ther with its annexes, is available on the Parties' 
official websites:  
The UK : https://www.gov.uk/government/pub lications/agreement -establishing -an-association -
between -the-uk-and-central -america -ms-no322019  
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/fil
e/823557/MS_32.2019_Agreement_establishing_an_association_between_the_UK_and_Central_A
merica.pdf  
 
Central America : 
 
Costa Rica:   https://www.comex.go.cr/tratados/reino -unido/  
El Salvador: https://infotrade.minec.gob.sv/uk/  
Guatemala: https://mineco.gob.gt/Reino -Unido  
Honduras:  https://sde.gob.hn/2020/09/18/reino -unido/  
Nicaragua:  https://www.mific.gob.ni/Inicio/Comercio/Comercio -Exterior/Tratados -
Comerciales/Acuerdo -de-Asociaci%C3%B3n -CA-Reino -Unido   
Panama:  https://mici.gob.pa/onci -acuerdos -regionales -reino-unido -e-irlanda -del-norte -y- 
 centroamerica/   
 
2.2.  The Agreement has ten Articles and one Annex. It, nevertheless, incorporates by reference, in 
Article  3, the provisions of the EU -Central America Agreement  which form part of the Agreement, 
mutatis mutandis . Modifications to the incorpora ted EU -Central America Agreement are in the Annex 
to the Agreement. The Agreement is also complemented by  six Joint Declarations. Boxes 2.1 and 
2.2 below summarize the structure of the Agreement and the structure of the incorporated 
Agreement.   
Box 2.1 Structure of the Agreement  
UK-Central America 
Agreement  Title/description  
Preamble   
Article 1  Objectives  
Article 2  Definition s and interpretation  
Article 3  Incorporation of the EU -Central America Agreement  
Article 4  References to European Union Law  
Article 5  References to the Euro  
Article 6  Territorial Application  
Article 7  Continuation of Time Periods  
Article 8  Further Provisions in relation to the Association Council and Association 
Committee  
Article 9  Integral Parts of this Agreement  
Article 10  Entry into Force  
Annex   
  
Joint Declarations  
Mutatis Mutandis  
rules of origin  
trade and competition  
the civil society dialogue forum  
technical barriers to trade  WT/REG422/1  
 
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  UK-Central America 
Agreement  Title/description  
movement certificate EUR.1 forms  
Source:  WTO Secretariat based on the Agreement.  
Box 2.2 Structure of the Incorporated Agreement (EU -Central America Agreement)  
EU-Central 
America 
Agreement  Title/description  Modifications  through the Annex  
Preamble   References to EU -Central American 
Agreements/Arrangements/and Strategic 
Partnership  
Part I  General and Institutional 
Provisions   Article 2(e); 4 (1); 9(1); 10  
Part II  Political Dialogue  Article 23  
Part III  Cooperation  Articles 25( j); 26(g-i), 28(3),  35(3); 43(3); 49(3); 
56(2)(a); 68 (2)(c); 76 (1)(a) and (b)  
Part IV  Trade   
 Title II  Trade in Goods  Articles 83 (3); 104 (2)(b)(ii); 104 (3); 109; 111(1), 
111(4); and 140(f)  
 Title III  Establishment, Trade in 
Services and Electronic 
Commerce  Footnote to Article 160(e)  
 Title VI  Intellectual Property  Articles 244 (1); 245; 246 (2); 246 (4); 247(1); 
248(1); and 252  
 Title VII  Trade and Competition  Article 277 (2)(a) 
 Title IX  Regional Economic Integration  Articles 305  (1) and 306 (2)  
Part V  Final Provisions  Articles 352(1); 353; 359 (1); 359(2); and 360 
Annexes    
Annex I  Elimination of Customs Duties  Elimination of customs duties: Appendices 1 and 2 
(adjustments of the rates and volumes of TRQs)  
Annex II  Concerning the definition of the 
concept of "originating products" 
and methods of administrative co -
operation  Footnote s to Articles 3, 35; Article 3 (11)(c), 3(a), 
4(2), 4(3), 11(1), 11(2), 12(1), 16(4), 17(2), 28(3), 
29(1), 34; 35; Appendix 2 A  
Annex III  Mutual Administrative Assistance in 
Customs Matters  Articles 14 (1)(c) and 14 (2) 
Annex VI  Competent Authorities  Part A  (Competent authorities of the United Kingdom)  
Annex VII  Requirements and provisions for 
approval of establishments for 
products of animal origin  Article 2(d)  
Annex VIII  Guidelines for conducting 
verifications   
Annex IX  Contact Points and Websites  Part A (contact points), Part B (fee free websites)  
Annex X  Lists of Commitments on 
Establishment  Section A paragraph 1 ; commitment 6E.b); footnote 
to commitment 7B.a); commitment 16B; 17B; 17E .d) 
Annex XI  Lists of Commitments on Cross -
Border Supply of Services  Section A; paragraph 1; Commitment 1E.b); 11B; 
12B; 12E .d) 
Annex XII  Reservations on Key Personnel and 
Graduate Trainees of the EU Party  Section A paragraph 1  WT/REG422/1  
 
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  EU-Central 
America 
Agreement  Title/description  Modifications  through the Annex  
Annex XVI  Government Procurement  Appendix I 
Annex XVII  List of names to be applied for 
protection as geographical 
indications in the territory of the 
Parties  List of names to be applied for protection as 
geographical indications in the territory of the Parties  
 
Annex XVIII  Protected geo graphical indications  Part A  
 
Joint 
Declarations   Modifications to Joint Declarations  
 - of Costa Rica and the European Union to Chapter 1 
of Title II (Trade in Goods) of the Agreement  29(e); paragraphs (a) and (b)  
 - on Article 88 of Chapter 1 of Title II (Trade in 
Goods)  29(f) 
 - on EU Party's customs unions  the Joint Declaration is not applicable  
 - concerning the Principality of Andorra  paragraph 1  
 - concerning the Republic of San Marino  paragraph 1  
 - Names that have been applied for registration as 
geographical indications in a Republic of a CA Party  The Joint Declaration is not applicable  
   
Source:  WTO Secretariat based on the EU -Central America Agreement and the Agreement.  
2.3.  In the Preamble  and Article 1 , the Parties recognize that the EU -Central America Agreement 
ceased to apply to the United Kingdom when it ceased to be a Member State of the European Union 
and indicate a  desire for the rights and obligations of the EU -Central Ameri ca Agreement to continue 
to apply. They also affirm the objectives in Articles 2, 24, and 78 of the EU -Central America 
Agreement (as modified by the Agreement). Moreover, they agree to preserve the preferential 
conditions of trade between them set out in t he EU -Central America Agreement and to provide a 
platform for further trade liberalisation between them.  
2.4.  Article 2 establishes definitions and their interpretation. Article 3 incorporates the provisions of 
the EU -Central America Agreement by reference as modified  by the Annex to the Agreement.3 The 
incorporated Articles and provisions are made part of the Agreement mutatis mutandis4, subject to 
its provisions.  
2.5.  While Articles 4 and 5 address references to, respectively, EU law and the Euro, Article 6 (on 
territorial application) states that the Agreement applies, in respect of the UK, to the United Kingdom 
and the territories for whose international relations it is responsible, and to the extent that, and 
under the conditions applied by the EU -Central Amer ica Agreement.5 However, the Sovereign Base 
Areas of Akrotiri and Dhekelia in Cyprus are excluded from the coverage of the Agreement. In respect 
of Central America, the Agreement applies to their territories (Costa Rica, El Salvador, Guatemala, 
Honduras, Nicaragua, and Panama), in accordance with their respective domestic legislation and 
international law.  
2.6.  The Parties agree that unless the Agreement provides otherwise: (a) if a period in the EU -
Central America Agreement has not yet ended, the remainder of that period shall be incorporated in 
 
3 "Incorporated Agreement" means the EU -Central America Agreement. An "incorporated Article" means 
an Article of the Incorporated Agreement, as modified and incorporated into the Agreement). (Article 2)  
4 "Mutatis mutandis " means with the technical changes  necessary to apply the EU -Central America 
Agreement as if it had been concluded between the UK and Central America, taking into account the object and 
purpose of the Agreement.  
5 In respect of the UK, the territories to which the EU -Central America Agreem ent applied, are (a) the 
Crown Dependencies (Isle of Man, Jersey, Guernsey), to which, broadly, provisions relating to trade in goods 
and customs apply; and (b) Gibraltar, to which, broadly, provisions not relating to trade in goods or customs 
apply.  WT/REG422/1  
 
- 14 - 
 
  the Agreement; and (b) if a period in the EU -Central America Agreement has ended, any ongoing 
right or obligation in the EU -Central America Agreement shall apply between the Parties and that 
period shall not be incorpor ated into the Agreement (Article 7). Nevertheless, a reference in the 
Incorporated Agreement to a period relating to a procedure or other administrative matter (such as 
a review, committee procedure or notification) shall not be affected.  
2.7.  Article 8 clarifi es that, upon entry into force of the Agreement, any decisions adopted by the 
Association Council or Association Committee established by the EU -Central America Agreement 
before signature of the Agreement shall, to the extent those decisions relate to the Parties to the 
Agreement, be deemed to have been adopted, mutatis mutandis , and subject to the provisions of 
the Agreement, by the Association Council or Association Committee established under the 
incorporated Articles 4 and 7, respectively.  
2.8.  Article 9 se ts out the integral parts of the Agreement and Article 10 sets out arrangements for 
entry into force and provisional application.  
2.9.  Incorporated Article 77 establishes a free trade area under Article XXIV of the GATT 1994 and 
Article V of the GATS.  
3  PROVISIO NS ON TRADE IN GOODS  
3.1.  Incorporated Part IV, Title II covers trade in goods, while other incorporated Parts and Titles 
contain horizontal provisions that are also applicable to trade in goods. Incorporated Annex I, as 
modified by the Annex to the Agreement ( No 17) sets out the tariff commitments of the Parties 
under the Agreement.  
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.2.  General provisions on trade in goods in incorporated Title II of Part IV of the EU -Central America 
Agreem ent are made part of the Agreement. National treatment on trade in goods in terms of 
Article  III of the GATT 1994 - which is incorporated into the Agreement - applies as per incorporated 
Article 85.  
3.3.  Except as otherwise provided for in the Incorporated Agre ement or in accordance with Article  XI 
of GATT 1994 - which is incorporated into the Agreement - import restrictions on any good of the 
other Party are prohibited (incorporated Article 86). Fees and other charges imposed in connection 
with importation and exportation are in accordance with Article VIII of the GATT 1994 (incorporated 
Article 87) and shall not be imposed for consular services (incorporated Article 118.1.h).  
3.4.  In accordance with the incorporated Joint Declaration of Costa Rica and the European Union to 
Chapter 1 of Title II (Trade in Goods) of the Incorporated Agreement , as modified, Costa Rica 
committed to review its internal taxes on alcoholic beverages under HS 22.03 within one year from 
the Agreement's entry into force.6 
3.5.  On trade b etween the Parties goods are valued in accordance with the WTO Agreement on the 
Implementation of Article VII of the GATT 1994 (incorporated Article 121).  
3.6.  A Sub -Committee on Market Access for Goods is established to, inter alia , monitor the correct 
applica tion and administration of incorporated Chapter 1 of Title II, Part IV (on national treatment 
and market access for goods) (incorporated Article 91).  
 
6 Costa Rica indicates that this review was completed following legal reforms for alcoholic beverages, 
and approved in Law 10337, “Law to eliminate a tax on the sale of imported beer."  WT/REG422/1  
 
- 15 - 
 
  3.1.2   Liberalization of trade and tariff lines  
3.7.  The Agreement incorporates the relevant provisions of the EU -Central America Agreement on 
the liberalization of trade, including the commitments in incorporated Annex I, as modified by the 
Annex to the Agreement, in particular with respect to the resizing of TRQ commitments.  
3.8.  The Agreement foresees the elimination of c ustoms duties in accordance with the Parties' 
Schedules over a maximum period of 15 years from 2013 when the incorporated Agreement entered 
into force (incorporated Article 83 Sections A and B of incorporated Annex I). The first reduction 
took place at the  entry into force of the Incorporated Agreement in 2013; thereafter, instalments 
are effective on 1 January, with the last one in 2027.  
3.9.  Tariffs are reduced from the base rate specified in the Parties' schedules – generally the MFN 
rates of 20077 (using H armonized System (HS) 2007). Incorporated Article 84 prohibits increasing, 
or adopting new, import duties on originating goods , unless (i) they had been previously unilaterally 
reduced, and up to levels not higher that those established  under the liberaliz ation programme; (ii) 
authorized following a WTO dispute; or (iii) in the case of excluded goods in order to align to a 
common external tariff.  
3.10.  If an MFN rate is lower than the preferential rate, it shall be applied instead of the preferential 
rate. 
3.1.3   Libera lization schedules  
3.11.  Tariffs are eliminated or reduced in accordance with the Parties' schedules of liberalization in 
incorporated Annex I, on the basis of 18 categories, of which six are common to both Parties.  
3.1.3.1   The United Kingdom  
3.12.  The commitments made by th e UK correspond to those by the EU in its single liberalization 
schedule for all Central American countries attached to the incorporated Agreement. Adjustments 
have been made to the quantities and values of in -quota rates in incorporated Appendix 2 to Anne x I 
(see section 3.2.3 below).  
3.13.  In 2021, the UK's applied MFN tariff comprised 9,494 lines at the eight -digit level, of which 
881 lines were non -ad valorem  (specific, compound, mixed or other). Table  3.1 shows tariff 
elimination commitments by the UK under  the Agreement. Prior to its entry into force, 47% of the 
UK's tariff lines were duty -free on an MFN basis, accounting for between 6% (Costa Rica) to 66% 
(El Salvador) of imports from Central American countries between 2018 -2020. Under the Agreement, 
an ad ditional 47.8% of tariff lines became duty -free in 2021 for imports from Central American 
Parties. Tariff elimination was completed in 2022, with an additional 0.4% of tariff lines becoming 
duty-free. Following full implementation, a total of 463 tariff li nes, corresponding to 4.9% of the 
tariff, remain dutiable. The lines remaining dutiable accounted for 48% of imports from Panama, 
43% of imports from Costa Rica, 22% of imports from El Salvador, 17% of imports from Nicaragua, 
14% of imports from Guatemala and 1% of imports from Honduras between 2018 -2020.  
Table 3.1 United Kingdom: Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty 
phase -
out 
period  No. 
of 
lines  % of 
total 
lines in 
UK's 
tariff 
schedule  UK's imports from Central America (2018 -2020)  
Value (USD million)  Percentage of Imports (%)  CRI 
SLV 
GTM 
HND 
NIC 
PAN 
CRI 
SLV 
GTM 
HND 
NIC 
PAN 
2021 
(MFN)  4,462  47.0 19 11 53 50 37 7 6 66 47 31 60 20 
2021 4,534  47.8 163 2 43 110 14 12 51 12 39 68 23 32 
 
7 For El Salvador, MFN rates of 2008.  WT/REG422/1  
 
- 16 - 
 
  Duty 
phase -
out 
period  No. 
of 
lines  % of 
total 
lines in 
UK's 
tariff 
schedule  UK's imports from Central America (2018 -2020)  
Value (USD million)  Percentage of Imports (%)  CRI 
SLV 
GTM 
HND 
NIC 
PAN 
CRI 
SLV 
GTM 
HND 
NIC 
PAN 
2022 35 0.4 0 0 0 0 0 0 0 0 0 0 0 0 
Remain  
dutiable  463 4.9 140 4 16 1 10 18 43 22 14 1 17 48 
Total 9,494  100 322 16 112 161 61 38 100 100 100 100 100 100 
Note:  Tariff lines subject to in -quota rates are excluded from the computations.  
 Based on the HS 2017 nomenclature.  
 Imports coverage is from HS chapters 1 -97. 
 The imports values were reported in GBP and converted into USD using the exchange rates of 
0.7495 (2018), 0.7834 (2019) and 0.7800 (2020).  
Source:  WTO estimates based on data provided by the UK authorities and the WTO -IDB. 
 
3.14.  Table 3.2 shows the UK's tariff liberalization by HS section. Products in four HS Sections – 
both agricu ltural and industrial8 - remain subject to duties following the Agreement's full 
implementation. Lines liberalized between entry into force and 2022 cover all HS Sections except X 
and XXI, already fully free on an MFN basis in 2021.  
Table 3.2 United Kingdom: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN  
average %  Number of 
lines  Duty -free 
lines under 
the MFN 
2021  Number of duty -
free lines under 
the Agreement  Remain 
dutiable  Avg. Final 
Tariff 
(Dutiable)  
2021  2022  
I 8.9  956   109  634 6 207 12.1 
II 4.4  554   213  225  116 10.1 
III 4.8  129   30  98 1   
IV 12.9  869   119  605 28 117 * 
V 0.4  231   202  29    
VI 2.7  1,226   550  653  23 7.6 
VII 3.7  301   86  215    
VIII 1.4  130   73  57    
IX 1.1  235   189  46    
X 0.0  195   195      
XI 7.0  1,149   243  906    
XII 7.3  106   17  89    
XIII 2.0  234   162  72    
XIV 0.5  58   47  11    
XV 0.6  955   804  151    
XVI 0.7  1,338   981  357    
XVII 3.7  286   121  165    
XVIII 0.6  299   218  81    
XIX 1.4  22   7  15    
XX 1.4  214   89  125    
XXI 0.0  7   7      
Total  3.8  9,494   4,462  4,534  35 454 10.7 
* Tariff lines remaining dutiable subject to specific rates only.   
Note:  Based on the HS 2017 nomenclature.  
 Tariff lines subject to in -quota rates are excluded from the computations. For the calculation of 
averages, specific rates are excluded, and the ad valorem  part of alternate rates are included.  
 For tariff lines subject to seasonal duti es9, the average rate for the entire year is used for the 
calculation. Products classified beyond the HS 8 -digit level are counted as one and their tariff rates 
are averaged at the 8 -digit level.  
Source:  WTO estimates based on data provided by the UK au thorities and the WTO -IDB. 
 
8 But only agricultural products when the definition of the WTO Agreement on Agriculture is used.  
9 Tariff lines 0302.41.00, 0302.43.90, 0302.44.00, 0303.51.00, 0303.53.90, 0303.54.10, 0303.89.40, 
0304.59.50, 0304.99.23, 0702.00.00, 0708.10.00, 0805.10.22, 0805.10.24, 0805.10.28, 0808.10.80, 
0808.30.90, 0809.29.00 and 0809.40.05 are subject to MFN seasonal duties.  WT/REG422/1  
 
- 17 - 
 
  3.15.  Chart 3.1 shows average ad valorem  rates remaining dutiable by HS Chapter applied by the 
UK on imports from Central American countries at the end of the implementation period. For the 
calculation of preferential rates for lines e xcluded from liberalization, the MFN rate is used. 
Preferential and MFN average tariffs are equivalent in Chapters 2, 29, 35 and 38, whereas the 
preferential average is lower in Chapter 8 showing additional preferences are provided by the 
Agreement. In Cha pter 7, average preferential rates appear higher than the MFN rate; this is because 
under the Agreement the ad valorem part of lines subject to mixed rates of duty are eliminated and 
the lines subject to preferential duties are not included in the calculat ion. In Chapters 17, 19, and 
20 average preferential rates are subject to only specific tariffs. The highest number of lines 
remaining dutiable - 144 - is found in Chapter 2; in contrast, in Chapter 22 only two lines remain 
dutiable. Average preferential t ariff rates range from zero to 12% (HS Chapter 2).  
Chart 3.1 The United Kingdom: Average of dutiable rates and number of dutiable lines, 
by HS Chapter  
 
*  Tariff lines subject to non -ad valorem  duties.  
Note:  For the calculation of averages, specific rates are excluded, and the ad valorem parts of alternate 
rates are included.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the UK authorities.  
 
3.1.3.2   Central America  
3.16.  The MFN rates of the original members of the Central American Common Market (CACM) - 
Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua – are mainly those of the CACM's 
common external tariff (CET); Panama, which joined the CACM later, has a larger  number of 
exceptions to the CET. As a result, liberalization commitments encompass a common schedule (with 
a few exceptions) for the original CACM members and a separate schedule for Panama. In 2021, 
except for 28 tariff lines for Panama, all Central Amer ica's applied MFN tariffs were ad valorem . 
3.17.  Tables 3.3 -3.8 show tariff elimination commitments by each Central American country 
towards the UK. Reflecting the largely harmonized CET for the five original CACM members, in 2021 
WT/REG422/1  
 
- 18 - 
 
  around 48% of their tariff line s were already duty -free on an MFN basis (ranging from 46.5% for 
Nicaragua to 49.4% for Guatemala); the corresponding figure for Panama was 45.5%. The MFN 
duty-free lines represented 64.7% of imports into Panama from the UK, 31.7% of imports into 
El Salvad or, 68.8% into Guatemala, 62.8% into Honduras, 60.8% into Nicaragua and 88.1% for 
Costa Rica. Catching up with the liberalization of its CACM partners, Panama liberalized a further 
17.1% of the tariff for imports from the UK in 2021 and 27.8% in 2022, whil e for the original CACM 
members the corresponding figures were below 10% of lines. Following such liberalization, around 
two-thirds of imports from the UK by all CACM members are duty -free.  
3.18.  Upon full implementation in 2027, Costa Rica and Guatemala will h ave 4% of lines remaining 
dutiable, Honduras 4.1%, Nicaragua 5.2%, Panama and El Salvador 4.8%. These dutiable lines 
accounted for 0.7% of imports during 2018 -2020 from the UK by Costa Rica, Honduras, Guatemala, 
0.9% by Panama, and 1.9% of imports by El Sa lvador.  
Table 3.3: Costa Rica  
Tariff elimination commitments under the Agreement and corresponding average trade  
Duty phase -out period  Tariff lines in Costa Rica's tariff 
schedule  Costa Rica's imports from the UK 
(2018 -2020)  
Number  % Value (USD 
million)  % 
2021 (MFN)  - - - - 
2021 3,807  57.6 104.6  88.1 
2022 2,276  34.5 8.4 7.1 
2025 196 3.0 4.1 3.5 
2027 61 0.9 0.7 0.6 
Remain dutiable  265 4.0 0.8 0.7 
Total 6,605  100.0  118.7  100.0  
Note:  Based on the HS 2007 nomenclature.  
Source:  WTO estimates based on data provided by the Costa Rican authorities and the WTO -IDB. 
Table 3.4: Nicaragua  
Tariff elimination commitments under the Agreement and corresponding average trade  
Duty phase -out period  Tariff lines in Nicaragua's tariff 
schedule  Nicaragua's imports from the UK  
(2018 -2020)  
Number  % Value (USD 
million)  % 
2021 (MFN)  3,611  46.5 6.9 60.8 
2021 666 8.6 2.2 19.6 
2022 2,737  35.2 1.1 9.5 
2025 279 3.6 1.1 9.5 
2027 72 0.9 0.1 0.5 
Remain dutiable  404 5.2 0.0 0.1 
Total 7,769  100.0  11.4 100.0  
Note:  Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the Nicaragua authorities.  
Table 3.5: Honduras  
Tariff elimination commitments under the Agreement and corresponding average trade  
Duty phase -out period  Tariff lines in Honduras' tariff schedule  Honduras' imports from the UK  
(2018 -2020)  
Number  % Value  
(USD million)  % 
2021 (MFN)  3,475  48.0 15.4 62.8 
2021 613 8.5 4.6 18.9 
2022 2,536  35.0 2.4 9.6 
2025 251 3.5 1.5 6.3 
2027 64 0.9 0.5 1.9 
Remain dutiable  299 4.1 0.1 0.4 
Total 7,238  100.0  24.5 100.0  
Note:  Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the Honduras authorities.  WT/REG422/1  
 
- 19 - 
 
  Table 3.6: Guatemala  
Tariff elimination commitments under the Agreement and corresponding average trade  
Duty phase -out period  Tariff lines in Guatemala's tariff schedule  Guatemala's imports from 
the UK  (2018 -2020)  
Number  % Value  
(USD million)  % 
2021 (MFN)  3,573  49.4 41.2 68.8 
2021 614 8.5 12.4 20.7 
2022 2,440  33.7 4.0 6.8 
2025 254 3.5 1.4 2.4 
2027 64 0.9 0.4 0.7 
Remain dutiable  293 4.0 0.4 0.6 
Total 7,238  100.0  59.9 100.0  
Note:  Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the Guatemala authorities.  
Table 3.7: El Salvador  
Tariff elimination commitments under the Agreement and corresponding average trade  
Duty phase -out period  Tariff lines in El Salvador's tariff schedule  El Salvador's imports from 
the UK  (2018 -2020)  
Number  % Value  
(USD million)  % 
2021 (MFN)  3,450  47.4 12.3 31.7 
2021 625 8.6 11.5 29.6 
2022 2,531  34.8 12.2 31.5 
2025 260 3.6 1.6 4.2 
2027 58 0.8 0.4 1.0 
Remain dutiable  347 4.8 0.7 1.9 
Total 7,271  100.0  38.7 100.0  
Note:  Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the El Salvador authorities.  
Table 3.8: Panama  
Tariff elimination commitments under the Agreement and corresponding average trade  
Duty phase -out period  Tariff lines in Panama's tariff schedule  Panama's imports from the UK  
(2018 -2020)  
Number  % Value  
(USD million)  % 
2021 (MFN)  4,265  45.5 43.2 64.7 
2021 1,605  17.1 16.9 25.4 
2022 2,607  27.8 1.6 2.4 
2023 1 0.0 - - 
2025 288 3.1 2.3 3.5 
2027 151 1.6 2.1 3.1 
Remain dutiable  453 4.8 0.6 0.9 
Total 9,370  100.0  66.7 100.0  
Note:  Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the Panama authorities, WTO -IDB and Instituto Nacional 
de Estadística y Censo  (INEC).  
 
3.19.  Tables 3.9 -3.14 show Central America's tariff liberalization by HS section. A number of 
agricultural products in HS Sections I -IV will remain dutiable in all six Central American countries 
Party to the Agreement  following its full  implementation. The average final dutiable rat e will vary 
from 10.4% (Section III) to 51.4% (Section I)  in Costa Rica ; 11.9% (Section III) to 26.5% (Section 
I) in Nicaragua; between 10.7% (Section III) and 24.2% (Section I) in Honduras; 11.9% (Section WT/REG422/1  
 
- 20 - 
 
  III) to 15.5% (Section II) in Guatemala; 8% (Secti on V) to 29.5% (Section I) in El Salvador; and 
2.5% (Section XI) to 45.5% (Section I) in Panama .  
Table 3.9 Costa Rica: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 2021  Lines  under the Agreement  Remain 
Dutiable  Avg. 
Dutiable 
Tariff  Avg. Tariff 
(%) No. of 
lines  Duty 
free 
lines  Duty Free  2021  
2022  
2025  
2027  
I 21.1 302  88 117 13 3 81 51.4 
II 9.5 374  163 174  1 36 20.5 
III 8.9 54  11 7   36 10.4 
IV 13.9 276  60 85 1 18 112 19.1 
V 3.4 178  123 49 5 1   
VI 2.8 974  809 131 31 3   
VII 5.1 338  173 121 39 5   
VIII 8.8 108  33 75     
IX 8.8 140  26 114     
X 5.6 300  159 111 28 2   
XI 9.9 920  363 557     
XII 13.0 64  13 43  8   
XIII 7.0 178  88 79 7 4   
XIV 7.5 54  18 36     
XV 3.9 699  488 147 53 11   
XVI 3.0 979  821 143 12 3   
XVII 6.0 236  162 74     
XVIII 4.7 238  168 70     
XIX 15.0 21   21     
XX 11.0 163  41 113 7 2   
XXI 8.2 9   9     
Total 6.8 6,605  0 3,807  2,276  196 61 265 28.0 
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2007 nomenclature.  
Source:  WTO estimates based on data provided by the Costa Rican authorities and the WTO -IDB. 
Table 3.10 Nicaragua: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 2021  Lines  under the Agreement  Remain 
Dutiable  Avg. 
Dutiable 
Tariff  Avg. 
Tariff 
(%) No. of 
lines  Duty 
free 
lines  Duty Free  
2021  2022  2025  2027  
I 14.9 553 48 53 255 51 3 143 26.5 
II 9.6 490 160 69 216  1 44 19.8 
III 9.9 86 9 5 10   62 11.9 
IV 12.9 377 44 38 117 1 22 155 18.0 
V 2.6 199 126 7 59 6 1   
VI 2.1 1,253  979 46 145 75 8   
VII 4.5 371 159 34 139 35 4   
VIII 8.2 112 22 14 76     
IX 7.4 176 46  130     
X 5.1 318 164 8 115 29 2   
XI 9.6 936 121 249 566     
XII 12.7 66 3 10 45  8   
XIII 6.7 188 82 7 87 7 5   
XIV 6.9 54 15 3 36     WT/REG422/1  
 
- 21 - 
 
  HS 
Section  MFN 2021  Lines  under the Agreement  Remain 
Dutiable  Avg. 
Dutiable 
Tariff  Avg. 
Tariff 
(%) No. of 
lines  Duty 
free 
lines  Duty Free  
2021  2022  2025  2027  
XV 2.9 722 491 19 145 55 12   
XVI 2.2 1,033  842 20 156 12 3   
XVII 5.9 343 92 45 206     
XVIII 3.7 244 159 16 69     
XIX 15.0 21   21     
XX 10.2 218 49 23 135 8 3   
XXI 7.8 9   9     
Total 6.2 7,769  3,611  666 2,737  279 72 404 20.3 
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the Nicaragua authorities.  
 
Table 3.11 Honduras: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 2021  Lines  under the Agreement  Remain 
Dutiable  Avg. 
Dutiable 
Tariff  Avg. 
Tariff 
(%) No. of 
lines  Duty 
free 
lines  Duty Free  
2021  2022  2025  2027  
I 13.6 508 48 50 252 52 3 103 24.2 
II 9.1 431 151 57 182  1 40 17.9 
III 8.4 58 9 4 7   38 10.7 
IV 12.4 302 37 29 99 1 18 118 16.3 
V 2.6 187 119 7 55 5 1   
VI 1.8 1,189  961 38 130 55 5   
VII 4.3 344 156 30 122 31 5   
VIII 8.3 108 19 14 75     
IX 7.9 172 44  128     
X 5.1 295 150 7 108 28 2   
XI 9.6 928 118 247 563     
XII 12.8 64 3 10 43  8   
XIII 6.5 184 82 6 84 7 5   
XIV 6.9 54 15 3 36     
XV 3.1 708 478 18 148 53 11   
XVI 2.1 1,008  828 19 146 12 3   
XVII 5.5 246 75 35 136     
XVIII 3.9 235 150 16 69     
XIX 15.0 21   21     
XX 10.6 187 32 23 123 7 2   
XXI 7.8 9   9     
Total 6.0 7,238  3,475  613 2,536  251 64 299 18.5 
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the Honduras authorities.  
 
Table 3.12 Guatemala: Tarif f elimination under the Agreement, by HS Section  
HS 
Section  MFN 2021  Lines  under the Agreement  Remain 
Dutiable  Avg. 
Dutiable 
Tariff  Avg. 
Tariff 
(%) No. of 
lines  Duty 
free 
lines  Duty Free  
2021  2022  2025  2027  
I 11.4 508 48 50 252 52 3 103 13.3 WT/REG422/1  
 
- 22 - 
 
  HS 
Section  MFN 2021  Lines  under the Agreement  Remain 
Dutiable  Avg. 
Dutiable 
Tariff  Avg. 
Tariff 
(%) No. of 
lines  Duty 
free 
lines  Duty Free  
2021  2022  2025  2027  
II 8.8 431 152 56 182  1 40 15.5 
III 7.6 58 19 3 4   32 11.9 
IV 12.5 302 37 28 100 1 18 118 15.0 
V 2.6 187 119 15 47 5 1   
VI 1.9 1,189  933 53 143 55 5   
VII 4.3 344 156 27 122 34 5   
VIII 8.3 108 19 14 75     
IX 7.9 172 44  128     
X 5.1 295 150 7 108 28 2   
XI 9.6 928 120 247 561     
XII 12.8 64 3 10 43  8   
XIII 6.5 184 82 6 84 7 5   
XIV 6.9 54 15 3 36     
XV 3.0 708 483 14 147 53 11   
XVI 2.1 1,008  824 22 147 12 3   
XVII 2.4 246 187 24 35     
XVIII 3.9 235 150 16 69     
XIX 15.0 21   21     
XX 10.6 187 32 19 127 7 2   
XXI 7.8 9   9     
Total  5.7 7,238  3,573  614 2,440  254 64 293 14.1 
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the Guatemala authorities.  
 
Table 3.13 El Salvador: Ta riff elimination under the Agreement, by HS Section  
HS 
Section  MFN 2021  Lines  under the Agreement  Remain 
Dutiable  Avg. 
Dutiable 
Tariff  Avg. 
Tariff 
(%) No. of 
lines  Duty 
free 
lines  Duty Free  
2021  2022  2025  2027  
I 15.1 508 48 50 253 51 3 103 29.5 
II 9.0 431 152 56 182  1 40 17.8 
III 7.5 58 19 3 4   32 11.7 
IV 16.2 302 36 28 100 1 16 121 23.1 
V 2.5 187 119 7 54 5  2 8.0 
VI 1.9 1,189  937 53 146 48 5   
VII 4.3 344 156 28 121 35 4   
VIII 8.3 108 19 14 75     
IX 7.4 172 45  127     
X 5.1 295 150 7 108 28 2   
XI 9.6 928 119 247 562     
XII 12.8 64 3 10 43  8   
XIII 6.5 184 82 6 84 7 5   
XIV 6.9 54 15 3 36     
XV 3.2 708 470 14 149 66 9   
XVI 2.1 1,008  824 21 148 12 3   
XVII 8.6 279 74 43 113   49 1.0 
XVIII 3.9 235 150 16 69     
XIX 30.0 21   21     WT/REG422/1  
 
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  HS 
Section  MFN 2021  Lines  under the Agreement  Remain 
Dutiable  Avg. 
Dutiable 
Tariff  Avg. 
Tariff 
(%) No. of 
lines  Duty 
free 
lines  Duty Free  
2021  2022  2025  2027  
XX 10.6 187 32 19 127 7 2   
XXI 7.8 9   9     
Total  6.4 7,271  3,450  625 2,531  260 58 347 20.1 
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the El Salvador authorities.  
Table 3.14 Panama: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 2021  Lines  under the Agreement  
Remain 
Dutiable  
Avg. 
Dutiable 
Tariff  Avg. Tariff 
(%) No. of 
lines  Duty 
free 
lines  Duty Free  2021  
2022  
2023  
2025  
2027  
I 20.6 605 61 86 247  51 8 152 45.5 
II 10.7 493 173 107 176    37 37.4 
III 10.6 72 16 11 6    39 14.1 
IV 13.5 590 82 101 121  1 61 224 15.9 
V 4.7 208 131 35 34 1 4 3   
VI 1.8 1,419  1,049  180 128  55 7   
VII 3.9 425 218 87 112  7 1   
VIII 9.2 141 16 37 88      
IX 6.8 208 77 46 85      
X 8.4 480 156 131 125  64 4   
XI 5.8 1,221  573 161 486    1 2.5 
XII 9.8 177 5 18 114   40   
XIII 8.1 272 87 38 129  9 9   
XIV 8.1 67 15 14 38      
XV 5.2 954 496 211 176  67 4   
XVI 2.5 1,145  799 176 146  12 12   
XVII 4.1 277 150 44 83      
XVIII 5.0 276 137 65 74      
XIX 14.6 25   25      
XX 10.8 306 23 54 209  18 2   
XXI 7.2 9 1 3 5      
Total  6.8 9,370  4,265  1,605  2,607  1 288 151 453 27.4 
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the Panama authorities and the WTO -IDB.  
 
3.20.  Chart 3.2 shows by HS Chapter average tariff rates (MFN  and preferential) for lines remaining 
dutiable once implementation is completed by the Central American countries. While for a number 
of Central American Parties the average preferential rate is equivalent to the average MFN rate for 
products remaining du tiable, for a few, mainly Costa Rica, Honduras and El Salvador, and for Chapter 
21 for Guatemala, average preferential rates are lower than MFN rates in several Chapters showing 
that additional preferences are provided in these Chapters.  WT/REG422/1  
 
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  Chart 3.2 Central America: Average of dutiable rates, by HS Chapter  
 
Based on the HS 2007 (Costa Rica) and HS 2017 nomenclatures (rest of the Central American countries).  
Source:  WTO estimates based on data provided by Parties' authorities and the WTO -IDB. 
3.1.4   Tariff rate quotas  
3.21.  Some of the Parties' market access commitments take the form of tariff rate quotas (TRQs) 
(incorporated Appendixes 1 and 2 of Annex I, as modified). The quota quantities have been adjusted 
0%10%20%30%40%50%60%
247910111215161718192021222324Tariff rate
HS ChapterCosta Rica
Preferential=MFN Preferential MFN0%10%20%30%40%50%60%
247910111215161718192021222324252787Tariff rateHundreds
HS ChapterEl Salvador
0%5%10%15%20%25%30%35%
247910111215161718192021222324Tariff rateHundreds
HS ChapterGuatemala
0%10%20%30%40%50%60%
247910111215161718192021222324Tariff rateHundreds
HS ChapterNicaragua0%5%10%15%20%25%30%35%40%
247910111215161718192021222324Tariff rateHundreds
HS ChapterHonduras
0%10%20%30%40%50%60%70%80%
247891011121516171819202122232462Tariff rateHundreds
HS ChapterPanamaWT/REG422/1  
 
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  from those in the EU -Central America Agreement to adapt to t he size and levels of bilateral trade 
between the Parties10.  
3.22.  Both Parties provide each other TRQs for certain agricultural products. They are administered 
in accordance with their respective internal regulations. Imports under TRQs are subject to the 
presentation of an export certificate issued by the relevant competent authority. Central America 
grants the UK TRQs for cured hams and streaky bacon; powdered milk; cheese; and prepared or 
preserved swine meat. The UK grants Central America TRQs for garlic, m anioc starch, sweet corn, 
mushrooms, rice, beef, sugar and goods with high sugar content, and bulk rum. The TRQs are 
generally regional11 while for beef, sugar and rum there is an additional  country -specific allocation.  
3.23.  The treatment provided by the UK to  imports of bananas from the Republics of the Central 
America Party is sui generis. It is unchanged as compared with the treatment provided by the EU 
under the EU -Central America Agreement.12 
3.24.  In addition to the TRQ commitments additional commitments are made in the form of origin 
quotas.13 Annex 2 to the Factual Presentation provides additional detail on TRQs under the 
Agreement.  
3.2  Rules of origin  
3.25.  The Agreement incorporates, with some modifications, the provisions of the EU -Central 
America A greement on the definition of "originating products" and methods of administrative 
cooperation (Annex II to the Incorporated Agreement).  
3.26.  Appendix 1 to the incorporated Annex II contains introductory notes to the incorporated Annex 
II, and  Appendix 2 to incorporated Annex II lists the working or processing required on non -
originat ing materials in order for the manufactured product to obtain originating status  for the 
purposes of preferential treatment under the Agreement . Appendix 2A  to incorporated Annex I I, as 
modified,  adjusts the annual origin quota quantities in the EU -Central America Agreement to take 
into account the different size of bilateral trade between the UK and the Central American Republics. 
Appendix 3  to incorporated Annex II  reproduces spec imens of movement certificate EUR.1 and 
application for a movement certificate EUR.1.14 Appendix 4 to incorporated Annex II contains  
provisions for issuing  the Invoice declaration15. Appendices 5 and 6, incorporated without 
modifications, clarify the appli cable period of time for the presentation of an invoice declaration or 
reimbursement of tariffs, and details of invoice declarations and proof of origin exemptions  
respectively .  
3.27.  The Agreement incorporates, with some adjustments, the Joint Declarations con cerning the 
Principality of Andorra  and the Republic of San Marino. There are no changes to Joint Declarations 
concerning derogations, regarding the revision of the rules of origin in the incorporated Annex II, as 
modified, the revision of the rules of ori gin applicable to products of Chapters 61 and 62 of the 
Harmonized System  (HS); and concerning temporal use of additional non -originating materials for 
products of HS Chapters 61 and 62. Moreover, there is a new Joint Declaration regarding a trilateral 
approach to the  rules of origin  and one on forms for EUR.1 movement certificates . 
3.28.  A product is "originating"  in the United Kingdom or in Central America  (Article  2 of 
incorporated Annex II ) when:  
 
10 See Annex 2 to this Factual Presentation for a summary of the Parties' commitments.  
11 The distribution of the regional TRQs is agreed by Central America Parties.  
12 See below, secti on 3.6.1 on special treatment on bananas.  
13 See below, section 3.3 on rules of origin.  
14 A new Joint Declaration on the Movement Certificate EUR.1 forms is attached to the Agreement. The 
Parties acknowledge that if a Movement Certificate EUR.1 varies sligh tly, such as in wording or the placement 
of footnotes, from the specimen contained in Appendix 3 to Annex II to the Incorporated Agreement, it may be 
accepted if: (a) the variations do not modify the information required in each box; and (b) the competent 
public authorities of the Parties have provided each other the varied specimen of the certificate.  
15 Only the Spanish and English version are incorporated into the Agreement.  WT/REG422/1  
 
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  a. it is wholly obtained 16 in the UK or Central America; or  
b. it is obtained in the UK or in Central America  incorporating materials which have not been 
wholly obtained there but  that have undergone sufficient working or processing in the 
Parties  there . The product -specific requireme nts rules of origin in Appendix 2 to  the 
incorporated Annex II require either a change in tariff classification (CTC), thresholds for 
the maximum value of non -originating materials, or specific processing in a Party. 
Appendix 2A to incorporated Annex II, a s modified, lists alternative, less strict rules of 
origin for certain products from the Central America Parties; in most cases  these are 
subject to annual quotas.  
3.29.  A CTC at the heading level is the most common requirement. Thresholds for the maximum 
value -added content of non -originating material are generally 40%, though they range from 10% 
to 50%.  
3.30.  Bilateral cumulation between the Parties is permitted.  Additionally , under extended 
cumulation of origin materials originating in Bolivia, Colombia, Ecuador, Peru  and Venezuela  are 
considered as materials originating in Central America when further processed or incorporated into 
a product obtained there , as long as the working or processing in the Parties goes beyond insufficient 
operations  referred to in Article 6 , the applied rules of origin are identical to those if the product was 
exported to the EU, and there are adequate administrative cooperation procedures permitting 
verification of origin ; at the request of a Republic of the CA Party or the United Kingdom, materials 
originating in Mexico, South America or the Caribbean countries shall be considered as originating 
in CA or the United Kingdom respectively, when processed or incorporated into a product obtained 
there .17 In accord ance with two incorporated Joint Declarations, as modified, all products originating 
in the Republic of San Marino and products of HS Chapters 25 to 97 originating in the Principality of 
Andorra shall  be considered as originating in the UK if the products meet the conditions of the new 
Article 3a.5 (b) of Annex II to the Incorporated Agreement.  
3.31.  Article 3a in Annex II, which is a new provision to the UK -Central America Association 
Agreement, provides for extended cumulation of origin . Materials originating in the EU18 shall be 
considered as originating in the UK or Central America when incorporated into a product obtained 
there without needing to have undergone sufficient working or processing, provided that they have 
undergone working or processing going beyond that r eferred to in Article 6  of the incorporated Annex 
II. Without prejudice to the provisions of Article 2.1 of the incorporated Annex II , working or 
processing in the EU shall be considered as having been carried out in the UK when the materials 
obtained unde rgo subsequent working or processing in the UK which goes beyond the operations 
referred to in Article 6  of the incorporated Annex II . Cumulation of this type will apply provided that: 
(a) the countries involved in the acquisition of originating status and the country of destination have 
arrangements on administrative cooperation which ensure the correct implementation of this Article, 
and (b) materials and products have acquired originating status in application of the same rules of 
origin as pro vided for in the incorporated Annex II.  
3.32.  The absorption principle applies; thus, no account is taken of non -originating materials 
incorporated in another product which has acquired originating status (Article 5.1 of incorporated 
Annex II).  
3.33.  A de minimis/ tolerance rule (Article 5.2 of the incorporated Annex II) considers the good to 
be originating if the value of non -originating materials does not exceed 10% of the ex -works price 
of the product, provided none of the thresholds are exceeded. However, this does not apply to:  
 
16 Wholly obtained is defined in Article 4 of the incorporated Annex II, as modif ied. 
17 Sufficient working or processing is not required as long as processing in Central America and the EU 
goes beyond insufficient operations; the materials originate in Mexico, South America or the Caribbean apply 
identical rules of origin to materials exported to the EU or Central America; and the Republics of Central 
America, the EU and other countries concerned have administrative cooperation procedures to ensure full 
implementation of paragraph 3 and of certification and validation of originating sta tus (paragraph 3.9 of 
Article  3). 
18 Products originating in Ceuta and Melilla are not considered to be products originating in the EU. The 
term "European Union" (EU) used in the Annex II to the Incorporated Agreement does not cover Ceuta and 
Melilla.  WT/REG422/1  
 
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  a. textiles of HS Chapters 50 to 63  for which Appendix 1 to the Incorporated Annex II shall 
apply , for which the tolerance generally sets a non -complying threshold in terms of a 
maximum weight of 10% of all basic textile materials used , and 
b. wholly obtained products – though it applies in cases where wholly obtained materials are 
used in the manufacture of a product.  
3.34.  Article 6 of Annex II incorporated describes the insufficient working or processing operations.  
3.35.  Outward processing is authorized (Ar ticle 11.3 -11.8 of incorporated Annex II), provided the 
total added value acquired outside the Parties does not exceed 10% of the ex -works price of the 
final product for which originating status is claimed. This does not apply to products  which do not 
fulfil the conditions in Appendix 2 to the incorporated Annex 2, to textiles and clothing  materials of  
HS Chapters 50 -63, nor to products that have acquired originating status through the tolerance rule. 
Processing outside the Parties must be on goods exported  from the Parties, which are wholly 
obtained or have been processed beyond insufficient operations  under  Article 6,  in a Party.  
3.36.  Transit through non -parties is authorized provided the product remains under the surveillance 
of the customs authorities in the country of transit  when in temporary warehousing , and that it does 
not undergo operations other than unloading, reloading, or any other operation to preserve it in 
good condition (Article 12.1 of the incorporated Annex II, as modified19). Evidence of these 
requirements must be supplied to the customs authorities of the importing country.  
3.37.  Duty drawback is authorized.  
3.38.  A Sub -Committee on Customs, Trade Facilitation and Rules of Origin is established to, 
inter alia, monitor the correct appli cation and administration of incorporated Chapter 3 of Title II, 
Part IV (on customs and trade -related procedures) and of incorporated Annex II (incorporated 
Article  123).  
3.39.  In a new Joint Declaration, the Parties recognise that a trilateral approach to rul es of origin 
involving the EU, is the preferred outcome in trading arrangements between the Parties and the EU. 
This approach would replicate the coverage of existing trade flows and allow for continued 
recognition of originating content from either Party and from the EU in exports to each other, as per 
the intention of the EU -Central America Agreement. In this regard, the Parties understand that any 
bilateral arrangement between the Parties represents a first step towards this outcome. In the event 
of an a greement between the UK and the EU, the Parties approve taking the necessary steps, as a 
matter of urgency, to update Annex II of the Incorporated Agreement to reflect a trilateral approach 
to rules of origin, involving the EU.  According to the Parties, th is has not yet occurred.  
3.3  Export duties and charges, and quantitative restrictions  
3.40.  Except as otherwise provided for in the Agreement, or in accordance with Article XI of GATT 
1994, the Parties may not adopt or maintain any restriction on the export of any g ood destined for 
the territory of the other Party as otherwise provided for in the Agreement (incorporated Article  86).  
3.41.  Duties and charges imposed in connection with the exportation of goods to the other Party 
are prohibited except otherwise provided for in the Agreement (incorporated Article 88).  
3.42.  The Joint Declaration on Article 88 of Chapter 1 of Title II (Trade in Goods)  allows Costa Rica 
and Guatemala to continue to apply export duties (Guatemala on coffee and Costa Rica on bananas, 
coffee and live cat tle). 
3.4  Regulatory provisions on trade in goods  
3.43.  Some of the regulatory provisions detailed below are dealt with in the incorporated Agreement 
under a two -track approach: disciplines are spelled -out in Title II of the incorporated Part IV, Title 
 
19 Consignments that are transported thro ugh the EU may undergo operations including unloading, 
reloading, splitting, storing, labelling, marking or any operation designed to preserve them in good condition 
provided they remain under the surveillance of the customs authorities in the EU Member St ate. WT/REG422/1  
 
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  II (on trade in goods), while Title IX of the incorporated Part IV deals with regional economic 
integration in the areas of customs procedures, technical barriers to trade (TBT) and sanitary and 
phytosanitary measures (SPS) with respect to the free circulation of goods , which is particularly 
relevant within Central America (incorporated Article 303).  
3.44.  The commitments on regional integration assumed by a Central American Party under the 
incorporated Title  IX are carved -out from the Agreement's dispute settlement procedur es. 
3.4.1   Standards  
3.45.  Chapters 4 and 5 of Part IV, Title II, of the EU -Central America Agreement cover technical 
barriers to trade (TBT) and sanitary and phytosanitary measures (SPS), respectively. The 
corresponding provisions are incorporated into the Agreement b y reference.  
3.4.1.1   Sanitary and phytosanitary measures  
3.46.  The Agreement incorporates, and replicates, with minor modifications, the provisions of the 
EU-Central America Agreement on Sanitary and Phytosanitary  measures (SPS) (incorporated Part 
IV, Title II, Chapter 5). It reaffirms the Parties' rights and obligations under the WTO SPS Agreement 
(incorporated Article 141). It also deals with cooperation on animal welfare matters  (Article 142.3)  
3.47.  Neither harmonization nor mutual recognition among the Parties are made ma ndatory under 
the Agreement. These principles are however applied by each Party as described below.  
3.48.  Incorporated Article 147, and incorporated Annex VII to the EU -Central America Agreement 
establish the requirements and provision for approval  of establishm ents for products of animal origin.  
Requirements and procedures for the approval of establishments are specified in accordance with 
the Parties' regulations. Upon request by the exporting Party, imports of specifically authorised 
establishments shall: (a) take place without prior inspection of the establishment provided the 
approval was in conformity with the requirements of incorporated Annex VII to the EU -Central 
America Agreement; and (b) be allowed within 40 working days from the receipt of the request 
accompanied by appropriate sanitary guarantees. The importing Party will regularly submit a record 
of rejected requests for approval of establishments and the non -conformities identified. Moreover, 
fees imposed shall be no higher than the actual cost of th e service and be equitable with any fees 
charged on like domestic products.  
3.49.  A Party is authorized to carry out verifications of all or part of the other party 's authorities 
control systems  (incorporated Article 148 and  with guidelines in  incorporated Annex VIII )), including 
its structure, organisation and powers, as well as the sanitary guarantees regarding compliance with 
the importing Party's requirements. Verifications should be designed to check the effectiveness of 
the controls of th e auditee. On -the-spot inspection of listed establishments is also authorized. A 60 
working day notice shall be given prior to a verification visit  to the exporting Party, except in 
emergencies or if the Parties concerned agree differently. The expenses of  such verification shall be 
borne by the Party carrying out the verification.  
3.50.  Disciplines for the determination of pest - or disease -free areas, which are more detailed than 
under the SPS Agreement call for close cooperation between the Parties on determini ng such areas; 
require a Party to explain the reasons for rejecting a determination; clarify that the importing Party 
shall be given access to inspection, testing or relevant procedures; and confirm the Parties' 
recognition of the "principle of compartment alisation" and of "pest -free production places and sites" 
(incorporated Article 149).  
3.51.  Notification  and consultation  requirements  (incorporated  in Article 152 ) require  that serious 
or significant risks be notified within three working days. A Party may req uest that consultations be 
held as soon as possible when it has serious concerns with an identified risk.  
3.52.  In cases of serious risk to human, animal or plant life or health, incorporated Article 153 
authorizes the importing Party to take necessary  emergency  protective measures, to be notified no 
later than one working day after the adoption of the measure  and upon request, consultations shall 
take place.  Upon request of either party these consultation s shall be held within 15 working days of 
the notification  (Article 153.3).  WT/REG422/1  
 
- 29 - 
 
  3.53.  Cooperation and technical assistance are provided for, and priority areas are identified 
(Part III, incorporated Article 62). Special and differential provisions  (incorporated Article 155) 
authorize a Central American Party to directly co nsult with the UK when it identifies a particular 
problem related to a proposed measure that may affect its trade.  
3.54.  A Sub -Committee on Sanitary and Phytosanitary Matters  (incorporated Article 156)  is 
established to, inter alia , monitor the correct applicati on and administration of the incorporated 
Chapter 5 of Title II, Part IV (on Sanitary and Phytosanitary Measures ), as in Annex XXI (Sub -
Committees ) The Committee may address any matter related to the rights and obligations of the 
SPS Chapter.  In case an SPS measure is challenged by the other Party (incorporated Article 157), 
technical consultations may be requested and shall take place in the SPS Subcommittee . Unless the 
Parties agree otherwise these consultations will  replace those  foreseen under the inc orporated 
Agreement's dispute settlement mechanism.  
3.55.  There are SPS provision s incorporated into Provisions on Regional Integration ( Part IV, Title 
IX). The aim of Article 306  is to p romote conditions to allow goods subject to sanitary and 
phytosanitary measures  to move freely within the parties, promote harmonisation  and endeavour to 
ensure mutual recognitions of verifications carried out by both parties.  UK products listed in 
incorporated Annex XIX to the EU -Central America Agreement benefit from a simplif ied SPS 
procedure. Moreover, the importing Party should not be required to grant more favourable treatment 
to products imported from the exporting Party than the treatment given by the exporting Party in 
its intra -regional trade, in the case of Central Ame rica. The circulation of UK products in Central 
American countries is contingent on the level of harmonization. When harmonized regional import 
requirements exist, the Central American countries will ensure that products originating in the UK 
which have be en legally placed on the market of one Central American Republic, can also be 
marketed in the other Central American Republics, provided that they provide an equivalent level of 
protection of the various legitimate interests involved (principle of mutual r ecognition). Incorporated 
Annex XX to the EU -Central American Agreement contains the list of Central American technical 
regulations that are in the process of harmonisation , this includes  foods and beverages . Central 
American countries will also continue work towards harmonization and developing regional standards 
within the framework of their regional integration process . 
3.4.1.2   Technical barriers to trade  
3.56.  The Agreement incorporates, and replicates, without modification, the provisions of the EU -
Central  America Agreement on technical barriers to trade (incorporated Part IV, Title II, Chapter 4). 
It reaffirms the Parties' rights and obligations under the WTO TBT Agreement (incorporated 
Article  126).  
3.57.  Neither harmonization nor mutual recognition among the Parties are mandatory under the 
incorporated Agreement, though they apply within each Party, as described below.  
3.58.  A number of provisions build on those in the WTO TBT Agreement. These include stronger 
language encouraging regional integration of technical regulations ( incorporated  Art 129(b) and 
standards (incorporated Art 130(d)), coupled with collaboration and cooperation efforts between the 
Parties towards that aim. The Agreement aims to ensure that market surveillance by the competent 
authorities is ind ependent, with a view to avoiding conflicts of interest (incorporated Article 136). 
Incorporated Article 137 allows the other Party to make a representation if it considers fees for 
conformity assessment to be excessive. The anticipated processing period f or any mandatory 
conformity assessment shall be reasonable and equitable for imported and domestic goods. Special 
and differential treatment (incorporated Article 132) is more specific than under the WTO TBT 
Agreement to ensure that legislative measures do  not restrict voluntary agreements between the 
Parties' conformity assessment bodies and promote the participation of such bodies in these 
agreements.  
3.59.  Technical assistance and cooperation activities on TBT -related issues are listed in incorporated 
Article  57 of incorporated Part III.  
3.60.  As regards the interface of TBT provisions with provisions on regional cooperation 
(incorporated Part IV, Title IX), the circulation of UK products in Central American countries is 
contingent on the level of harmonization (in corporated Article 305). Where harmonized regional WT/REG422/1  
 
- 30 - 
 
  import requirements exist, the Central American Republics will ensure that products originating in 
the UK which have been legally placed on the market of one Central American Republic, can also be 
marketed  in the other Central American Republic, provided they provide equivalent protection of the 
various legitimate interests involved (principle of mutual recognition).  
3.61.  Transparency provisions incorporate some recommendations of the WTO TBT Committee, in 
particular to allow at least 60 days following notification to provide comments in writing and to give 
appropriate consideration to reasonable requests for extending the comment period. In addition, 
prior to the WTO notification, a Party is to give appropriate  consideration to the other Party's views 
where the process for developing a regulation or conformity assessment procedure is open to public 
consultation; on request it shall provide written responses (incorporated Article 135(c)).  
3.62.  A Sub -Committee on Techn ical Barriers to Trade is established to, inter alia , monitor the 
correct application and administration of the incorporated Chapter 4 of Title II, Part IV (on technical 
barriers to trade)  
3.63.  In a new Joint Declaration on technical barriers to trade the UK a ffirms its intent, in accordance 
with legislation and published guidance, to continue to accept for a limited period certain goods that 
meet EU regulatory requirements on the UK market without the need for reassessment or re -
marking20. In the event of an a greement between the UK and the EU, and subject to the terms of 
any such agreement, the Parties will consult through the Association Committee on the application 
by the UK to the Central American Republics of relevant benefits on technical regulations and 
conformity assessment, within the framework of Part IV, Title IX of the Incorporated Agreement.  
3.4.2   Safeguard mechanisms  
3.64.  The Agreement incorporates, and replicates, with minor modifications21, the provisions on 
safeguard disciplines in Articles 99 -116 of the EU-Central America Agreement .  
3.65.  The Parties are to ensure that proceedings for the application of safeguard measures are 
consistent, impartial and reasonable, and are carried out by a competent investigating authority. 
Determinations derived from such inves tigations shall be subject to review by judicial or 
administrative tribunals to the extent provided by domestic legislation. Concomitant application of 
global and bilateral safeguard measures on the same product is not permitted (incorporated 
Article  100).  
3.4.2.1   Global safeguards22 
3.66.  The Parties retain their rights and obligations on safeguard provisions under Article XIX of the 
GATT 1994, the WTO Safeguards Agreement, Article 5 of the WTO Agreement on Agriculture and 
the WTO Agreement on rules of origin (incorporated Article 101). Add itional transparency is 
foreseen; upon request from the other Party, the Party initiating an investigation or intending to 
take safeguard measures  shall provide immediately ad hoc written notification of all pertinent 
information.  
3.67.  The Agreement's dispute s ettlement mechanism does not apply to provisions referring to WTO  
rights and obligations  in the relevant sub -section  (incorporated Article  103).  
3.4.2.2   Bilateral safeguards  
3.68.  Under Articles 104 -116, a Party may impose a safeguard measure where  if, as a result of 
tariff reduction/elimination, a product originating in another Party  is being  imported  into its territory  
in such increased quantities (in absolute terms or  relative to domestic production ) and under such 
 
20 The UK will notify the Central American Republics when an end to the time period is determined.  
21 The provisions of the EU -Central America Agreement concerning "outermost Regions" is not 
incorporated (Article 109 of the EU -Central America Agreement) . Additionally, paragraphs 1 and 4 of Article 
111 have been amended.  
22 The Agreement refers to “multilateral safeguards”.  WT/REG422/1  
 
- 31 - 
 
  conditions as to constitute a subs tantial cause or threat  of serious injury to domestic producers of 
like or directly competitive products .23 
3.69.  Bilateral safeguard measures may only consist of either a  suspension of a further reduction 
of the product's tariff or of an increase in the product's tariff to a level not exceeding the lesser of 
its MFN tariff applied at that time or on the day immediately preceding the Agreement's entry into 
force; bilateral safeguards cannot be applied within the limits o f preferential  duty free tariff rate 
quotas  (incorporated Article 104).  
3.70.  A bilateral safeguard measure can only be applied to the extent, and for such time, as may 
be necessary to prevent or remedy the situat ion described above. It may involve the application of 
a provisional measure. In that case and as  in the WTO, it can be applied for a maximum of 200 days 
and any paid amounts are to be automatically refunded in case of negative results of the 
investigation . It can be applied for  a maximum duration of two years, subject to an extension of two 
years, provided its total period of application - including any provisional/extended application - does 
not exceed four years. Both periods are half of what is authoriz ed by the WTO. It cannot be applied 
beyond the expiration of the transition period24, except with the consent of the other Party. A 
bilateral safeguard measure is to be accompanied by compensatory measures and in the absence of 
agreement, retaliation is po ssible. A new bilateral safeguard can only be applied on imports of the 
same product previously subject to a measure  only after a period of time equal to half that during 
its application has elapsed. Upon termination of the bilateral safeguard measure, the  tariff shall be 
the rate that would have been in effect for the good, according to the Schedule of that Party.  The 
disciplines applicable to bilateral safeguards are, generally, in line with those of the WTO Agreement 
on Safeguards.  
3.71.  The Incorporated Agree ment authorizes Guatemala, in case of a fiscal emergency, to increase 
temporarily and automatically the customs duties applied for certain petroleum goods. The customs 
duty shall not be greater than that applied to all countries during the emergency period  that justifies 
the tariff increase (paragraph 3 of Section B of the incorporated Annex I).  
3.4.2.3   Specific safeguards for agriculture  
3.72.  The Parties retain their rights and obligations on special safeguard mechanisms for agricultural 
products under the Article 5 of  the WTO Agreement on Agriculture (incorporated Article  101).  
3.4.3   Anti-dumping and countervailing measures  
3.73.  The Agreement incorporates, and replicates, without modifications, the provisions of the EU -
Central America Agreement on anti -dumping and countervailing measures (incorporated Part IV, 
Title II, Chapter  2, Section A). The Parties retain their rights and obligations under the WTO 
Agreements on Anti -Dumping and Subsidies and Countervailing Measures ("AD and SCM 
Agreement"). They shall ensure that in cases wh ere anti -dumping or countervailing measures can 
be imposed on a regional and national basis, they are not applied simultaneously (incorporated 
Article  92). 
3.74.  The Agreement also provides for the following (incorporated Articles  93-97):  
a. the Parties' domestic legislation will remain harmonised and compatible with WTO 
provisions;  
b. immediately after the imposition of provisional measures, it is desirable  that the Parties 
ensure complete and meaningful disclosure in writing of all essential facts and 
considerations which form the basis for the decision to apply measures, without prejudice 
 
23 For products which were already  fully liberalized  before entry into force of the Incorporated 
Agreement  following tariff preferenc es granted before the Incorporated Agreement's entry into force, the "UK 
shall examine with special care whether increased imports result from the reduction or elimination of customs 
duties under the Incorporated Agreement."  
24 "Transition period" means 10 years from the Incorporated Agreement's entry into force (20 13); for 
goods having a tariff elimination schedule of 10 years or more, it means the good's relevant tariff elimination 
period plus three years.  WT/REG422/1  
 
- 32 - 
 
  to Articles 6.5 and 12.4 of the AD and SCM Agreements. Disclosures  shall be provided to 
interested parties with sufficient time to defend their in terests.  
c. Upon request, opportunity shall be given for interested parties  to express their views 
during anti -dumping and countervailing investigations ; 
d. the Parties may decide not to apply anti -dumping or countervailing measures if , on the 
basis of informati on made available during an investigation, it is clearly concluded these 
are not in the public interest;  
e. application of a duty that is less than the corresponding margin of dumping or  
countervailable  subsid ies is desirable  if adequate to remove the injury to the domestic 
industry;  
f. when demonstrating the causal link between dumped imports and the injury to domestic 
industry, the investigating authorities shall separate and distinguish the injurious effects 
of all known factors from those o f the dumped or sub sidized imports; and  
g. when imports from more than one Central American Republic are simultaneously subject 
to anti -dumping or countervailing duty investigations, the UK investigating authority is to 
examine  with special care  the appropriateness of a cumulat ive assessment of the effects 
of the imports from any of these Parties , in light of the conditions of competition between 
the imported products and the conditions of competition between the imported products 
and the like domestic  product . 
3.75.  The Agreement's d ispute settlement mechanism does not apply to anti -dumping and 
countervailing measures (incorporated Article 98).  
3.5  Subsidies and state -aid 
3.76.  The Agreement incorporates, and therefore replicates, without modification, the provisions of 
the EU -Central America Agreement on subsidies.  
3.77.  The Agreement partially prohibits subsidies on the export of agricultural goods (incorporated 
Article 89). This has been overtaken by the general WTO prohibition, agreed at the 2013 WTO 
Ministerial Conference.  
3.78.  Incorporated A rticle 344, which covers subsidies as defined in  the WTO Agreement on 
Agriculture, establishes transparency for subsidies which fulfils the conditions in Article 1.1 of the 
SCM Agreement and is specific within the meaning of Article  2. The Parties are to report every two 
years, to the other Party  on the legal basis, form, amount or budget and where possible, the recipient 
of the subsidy. The report is deemed to have been provided if the relevant information is made 
available by the Parties or on their behal f on a publicly accessible website. Progress on 
implementation of Article  344 will be periodically reviewed by the Association Committee.  
3.79.  The Parties' rights to apply trade remedies or to take dispute settlement or other appropriate 
action against a subsi dy granted by the other Party in accordance with the relevant WTO provisions 
are not affected by incorporated Article 344.  
3.80.  The Incorporated Agreement's dispute settlement mechanism does not apply to incorporated 
Article 344.  
3.5.1   Customs -related procedures and trade facilitation  
3.81.  The Agreement incorporates, and replicates, without modification, the provisions of the EU -
Central America Agreement on customs and trade facilitation  (Incorporated Chapter 3, Title II) . 
3.82.  The Parties recognise the importanc e of customs and trade facilitation matters. They agree to 
base their trade and customs legislations and procedures, inter alia , upon international instruments 
and standards; the protection and facilitation of trade through effective enforcement of and 
compliance with legal requirements, which shall be reasonable, non -discriminatory and fraud WT/REG422/1  
 
- 33 - 
 
  preventing; the application of modern customs techniques, including risk assessment, simplified 
procedures for entry and release of goods, post release controls, and c ompany audit methods; a 
system of binding rulings on customs matters, notably on tariff classification and rules of origin;  the 
progressive development of systems to facilitate the electronic exchange of data; rules ensuring that 
only proportionate and non -discriminatory penalties be imposed, the application of which shall not 
unduly delay the release of goods; and the calculation of reasonable fees and charges. The Parties 
agree to eliminate any requirement for the mandatory use of pre -shipment inspections  or their 
equivalent (incorporated Article 118).   
3.83.   Best endeavour provisions call for the Parties' customs legislation , provisions and procedures  
draw on the Revised Kyoto Convention on the Simplification and Harmonization of Customs 
Procedures. The use of  customs brokers is authorized without prejudice to the Parties' position in 
multilateral fora provided they ensure that the corresponding legislation is based on transparent and 
proportionate rules; if their use is compulsory, legal persons may operate wi th their own in -house 
customs brokers licensed by the competent authority for this purpose (incorporated Article 118.4). 
Transit provisions mirror the more extensive obligations under the WTO Trade Facilitation Agreement 
(TFA) and provide for the implement ation of regional transit arrangements with a view to reducing 
trade barriers. Incorporated Article 120 ensures public availability of information on legislation, 
procedures, fees and charges  and administrative notices  A consultation mechanism between the 
authorities and the business community is established and a reasonable time period is provided for 
between the publication of new or amended legislation, procedures and fees or charges and their 
entry into force. Customs valuation rules will be governed by the WTO Agreement on Implementation 
of Article V II of the  General Agreement on Tariffs and Trade 1994  (Article 121). The Parties agree 
to use risk management systems to focus on inspection activities on high -risk goods a nd facilitate 
clearance and movement of low -risk goods ( Incorporated Article 122). The Parties agree to establish 
a Sub -Committee on Customs, Trade Facilitation and Rules of Origin, in accordance with  
Incorporated Article 348 and as set out in Incorporated  Annex XXI ( Incorporated Article 123).  
Technical assistance measures are foreseen for the implementation of incorporated customs and 
trade facilitation related provisions  of Incorporated Chapter 3 . 
3.84.  Preferential treatment is granted upon presentation of a p roof of origin, either a Movement 
Certificate or an invoice declaration25 (incorporated Article 14 of Annex II), both valid for 12 months. 
The Movement Certificate EUR.1 shall be issued by the competent authority of the exporting Party . 
The Invoice Declara tion may be issued by an approved exporter or by any exporter making a 
consignment consisting of originating products whose value does not exceed EUR 6, 000 (Appendix  6 
to Incorporated Annex II) . The customs authorities can grant the status of "approved exporter" to 
any frequent exporter subject to conditions they consider appropriate and withdraw it at any  time. 
3.85.  Verification of the proof of origin is to be conducted by the competent authority of the 
exporting Party. The timeframe for such verif ication is 10 months.  If The Incorporated Agreement 
provides for the possibility of carrying out inspection  of the exporter's accounting records,  or any 
other check considered appropriate related to origin . In the case of fraud by the exporter, the Parties  
can impose penalties. Disputes resulting from the verification procedures that cannot be resolved 
between the customs authorities of the Parties, will be submitted to the Sub -Committee on Customs, 
Trade Facilitation and Rules of Origin; the Parties may al so have recourse to the Agreement's dispute 
settlement mechanism (incorporated Articles 31 -33 of incorporated Annex II).  
3.86.  Administrative cooperation arrangements are provided for by Title V of incorporated Annex II 
while incorporated Annexes III and IV have  provisions on mutual administrative assistance in 
customs matters and special provisions on administrative cooperation, respectively.  
3.87.  As regards the interface of customs -related provisions on trade in goods and in connection 
with regional economic integra tion, incorporated Article 304 provides for: (a) the customs authority 
of the Republic of the CA Party of first entry shall grant  a reimbursement of  customs duties paid 
when goods are exported into another R epublic of the CA Party ; (b) encouragement to the  Parties 
to implement a mechanism for terminating the redundant collection of customs duties on originating 
goods; (c) use of a single administrative document or electronic equivalent  to establish customs 
 
25 Appendix 3 of incorporated Annex II contains spe cimens of the movement certificate EUR.1 and the 
application form, and Appendix 4 contains the standard text of an invoice declaration.  WT/REG422/1  
 
- 34 - 
 
  declarations at import and export ; and (d) regional  harmonization of customs legislation, procedures 
and customs -related requirements at import applicable to originating products.  
3.88.  Under Annex III to the Incorporated Agreement, the Parties shall assist each other, in the 
areas within their competence, to en sure the correct application of customs legislation, in particular 
by preventing, investigating and combating breaches of customs legislation. Assistance to recover 
duties, taxes or fines is not covered by Annex III to the Incorporated Agreement. Special p rovisions 
on administrative co -operation, incorporated without modification, are also contained in Annex IV to 
the Incorporated Agreement.  
3.5.2   Other regulations  
3.89.  There are no additional regulations on trade in goods in the Agreement.  
3.6  Sector -specific provisions on trade in goods  
3.6.1    Agriculture  
3.90.  The Agreement incorporates, and replicates, without modification, the provisions of the EU -
Central America Agreement establishing special preferential treatment for bananas imported from 
any Central American Party (Appendix 3 to Annex I to the Incorporated  Agreement). This special 
treatment (stabilisation mechanism) expired on 1 January 2020 (before the Agreement entered into 
force).26  
3.91.  Incorporated Article 90 refers to technical cooperation assistance measures to enhance trade 
in fisheries, aquaculture, ar tisanal goods and organic products between the Parties, which are 
established under the incorporated Articles 59, 60 and 61 of incorporated Title VI (Economic and 
trade development) of Part III.  
4  PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  
4.1.  The Agreement  incorporates, and replicates, with minor modifications, the provisions of the 
EU-Central America Agreement on establishment, trade in services and electronic commerce 
(incorporated Part IV, Title III). The Parties' commitments and reservations are annexed  to the 
Agreement.  
4.1  Scope and definitions  
4.2.  The incorporated Agreement, while reaffirming the Parties' commitments under the WTO 
Agreements, lays down the necessary provisions for the progressive liberalisation of establishment 
and trade in services (incorpor ated Article 159). While Chapter 2 of incorporated Title III of Part IV 
contains disciplines on "establishment"27, Chapter 3 covers "cross -border supply of services"28 while 
Chapter 4 contains disciplines and commitments on the "temporary presence of natur al persons for 
business purposes".29 
4.3.  Disciplines apply to measures taken by a Party at central, regional, or local levels of 
government and to non -governmental bodies in the exercise of powers delegated by central, 
regional, or local governments or authorities (incorporated Article 160(b)). R egulations on 
establishment related to economic activities carried out, and measures related to services supplied, 
in the exercise of governmental authority are not covered by the Agreement. Furthermore, 
disciplines on the supply of services under mode 4 s hall not apply to measures affecting natural 
 
26 From the date of expiry of the above clause, special preferential treatment is established for bananas 
imported from any Central American Party.  
27 Under the Agreement, "establishment" refers to the constitution, acquisition or maintenance of a 
juridical person, or the creation of maintenance of a branch or representative official within the territory of a 
Party for the p urpose of performing an economic activity. It is therefore not specifically limited to the delivery 
of services, but includes services supplied under commercial presence (mode 3 under the GATS definition) as 
listed under incorporated Annex X to the EU -Central America Agreement, as modified.  
28 Under the Agreement, "cross -border supply of services" means the supply of a service under modes 1 
and 2, under the GATS definition.  
29 Consequently, Chapter 3 covers the supply of services under mode 4, under the GATS  definition.  WT/REG422/1  
 
- 35 - 
 
  persons seeking access to the employment market of a Party, regarding citizenship, residence or 
employment on a permanent basis.  
4.4.  The disciplines on "establishment" apply for economic activities for which the Par ties have 
commitments (incorporated Annex X to the EU -Central American Agreement, as modified).30  
4.5.  The disciplines on "cross -border supply in services" do not apply to audio -visual services; 
national and inland waterway cabotage transport, and national and  international air transport 
services other than aircraft repair and maintenance services during which a aircraft is withdrawn 
from services, the selling and marketing of air transport services, computer reservation system 
(CRS) services, and other ancilla ry services that facilitate the operation of air carriers (incorporated 
Annex XI to the EU -Central America Agreement, as modified).  
4.2  Denial of benefits  
4.6.  The Agreement fully incorporates the provisions on denial of benefits in the Incorporated 
Agreement. Deni al of benefits is dealt with through the definition of a Party's "juridical person" in 
incorporated Article 160. A juridical person which has only its registered office or central 
administration within the territory of a Party will be considered as a "Part y juridical person" if it is 
engaged in substantive business operations within the territory of a Party. Failing that, a Party may 
deny the benefits of the incorporated Part IV, Title III to that juridical person.31 
4.3  General provisions on trade in services and investment  
4.7.  The Agreement incorporates, mutatis  mutandis , the EU -Central America Agreement's general 
provisions on establishment and cross -border supply of services that are summarized below but 
which should be also read in conjunction with incorporated  Annexes X and XI to the EU -Central 
America Agreement, as modified.  
4.3.1   Market access  
4.8.  Incorporated Articles 164 (establishment) and 170 (cross -border supply of services) on market 
access prohibit market access limitations like under GATS Article  XVI.2 for ser vice suppliers, as well 
as establishments and investors of the other Party, mutatis mutandis . The terms, limitations and 
conditions applying to this commitment are included in incorporated Annexes X (mode 3) and XI 
(modes 1 and 2) to the EU -Central America  Agreement.  
4.3.2   National and MFN treatment  
4.9.  For sectors with commitments under incorporated Annexes X and XI to the EU -Central America 
Agreement, a Party shall grant national treatment for all services, service suppliers, establishments 
and investors of the oth er Party (incorporated Article 165 and 171). The terms, limitations and 
conditions applying to this commitment are also included in incorporated Annexes X and XI to the 
EU-Central America Agreement.  
4.10.  The Incorporated Agreement does not require the Parties t o compensate for any inherent 
competitive disadvantages, which result from the foreign character of the relevant investors.  
4.11.  The Incorporated Agreement has neither an MFN provision nor any specific rule granting 
automatic extension to third parties of benef its granted to a Party to the Agreement. Furthermore, 
the Parties remain free to be party to international investment agreements providing for preferential 
treatment (incorporated Article 167) without extending these to their partners under the Agreement. 
 
30 They do not apply to mining, manufacturing and processing of nuclear materials; production of or 
trade in arms, munitions and war material; audio -visual services; national and inland waterway cabotage 
transport; and national and internationa l air transport services other than aircraft repair and maintenance 
services during which a aircraft is withdrawn from services, the selling and marketing of air transport services, 
computer reservation system (CRS) services, and other ancillary services t hat facilitate the operation of air 
carriers (incorporated Annex X to the EU -Central America Agreement, as modified).  
31 With respect to shipping companies established outside a Party and controlled by nationals of a Party, 
benefits are extended if their vessels are registered in the Parties in accordance with their respective legislation 
and carry the flag of that Party.  WT/REG422/1  
 
- 36 - 
 
  Some exceptions have been listed as commitments in the Parties' schedules (Costa  Rica, El Salvador, 
Guatemala, Nicaragua), as detailed below.  
4.3.3   Commercial presence  
4.12.  Chapter 2 of incorporated Part IV, Title III relates to establishment, which is broadly 
equiv alent to GATS mode 3 (commercial presence) under terms, limitations and conditions in 
incorporated Annex X to the EU -Central America Agreement.  
4.3.4   Performance requirements  
4.13.  There are no specific provisions on performance requirements.  
4.3.5   Senior Managers and Board s of Directors  
4.14.  There are no specific provisions on requirements for boards of directors. "Managers"32 are 
part of the category of "intra -corporate transfers" in Chapter 4. Commitments and limitations on 
national treatment obligations are in the Parties' schedules (incorporated Annexes X and XI to the 
EU-Central America Agreement).  
4.3.6   Movement of natural pers ons 
4.15.  The Agreement incorporates, and replicates, without modification, the provisions of the EU -
Central America Agreement on the temporary presence of natural persons for business purposes 
(incorporated Part IV, Title III, Chapter 4). The incorporated Annex  XII to the EU -Central America 
Agreement, as modified, lists the UK's reservations on key personnel and graduate trainees, while 
incorporated Annexes XIII and XIV (unmodified) to the EU -Central America Agreement lists 
respectively the commitments of the Re publics of Central America on key personnel and graduate 
trainees; and on business service sellers.  
4.16.  Chapter 4 of incorporated Part IV, Title III builds on the respective GATS Annex. Disciplines 
and liberalization commitments, on the basis of a positive lis t, cover the temporary entry and stay 
of the following categories of natural persons (incorporated Article 173):  
a. Key personnel (incorporated Article 174, consisting of intra -corporate transfers (ICTs) and 
business visitors) and graduate trainees, in accordance with Annexes XII (UK) and XIII 
(Central American Parties);  
b. Business services sellers (incorporated Article 175). The UK liberalizes temporary presence 
of natural persons for business purposes for all sectors listed in Annexes X and XI, subject 
to reservations listed therein, while Annex XIV lists the commitments and limitations of 
the Central American Parties; and 
c. for contractual services suppliers and independent professionals (incorporated Article 
176), the GATS commitments apply.  
4.17.  Reservations listed in the Annexes may be of a horizontal nature or sector -specific; they 
include numerical quotas, economic needs  tests and discriminatory limitations.  
4.18.  Compared to the GATS, there are two main improvements to mode 4 under the Agreement: 
the addition of commitments for a new category of graduate trainees; and the scope and depth of 
sectoral commitments undertaken by C entral American Parties (see Table 4.1).  
 
32 "Managers" are defined, under the Agreement, as persons employed in a senior position within a 
juridical person, who primarily direct the management of the establishment, receiving general supervision or 
direction principally from the board of directors o r from stockholders of the business or their equivalent.  WT/REG422/1  
 
- 37 - 
 
  Table 4.1 Temporary presence of natural persons under the Agreement and the GATS  
Category  Maximum length of stay  
Agreement  GATS  
UK 
Key personnel  
▪ ICTs  
▪ Business visitors  
▪ Graduate trainees   
3 years  
90 days in any 12 months  
1 year   
As per member States and EU 
laws and regulations  
None 
Business services sellers  90 days in any 12 months  90 days in any 12 months (in 
general)  
Contractual services suppliers 
Independent professionals  Same as under the GATS  As specified in the UK 
schedule  
Central American Parties  
ICTs & Graduate trainees  
 
 
Business visitors  1 year renewable up to maximum duration 
authorized in domestic legislation  
 
90 days in any 12 months  No commitment  
Business services sellers  90 days in any 12 months  No commitment  
Contractual services suppliers 
Independent professionals  The same as under the GATS  No commitment  
Source:  Incorporated Agreement Articles 174 -176 and incorporated Annexes XII, XIII, and XIV, as modified; 
the UK Consolidated GATS Schedule of Specific Commitments (S/C/W/380 and corrigendum); and 
Central American Republics individual GATS Schedules of commitments.  
 
4.4  Liberalization commitments  
4.19.  The Agreement incorporates, and replicates, mutatis  mutandis  with some modifications, 
liberalization commitments and reservations in the Parties' Lists of Commitments on Establishment 
(Annex X to the Incorporated Agreement, as modified), and Cross -Border Supply of Servi ces (Annex 
XI to the Incorporated Agreement, as modified). The Agreement uses a positive list approach for 
the liberalization of trade in services. Commitments are either horizontal or sectoral.  
4.20.  The sections below compare broadly the Parties' liberalizatio n commitments under the 
Agreement and the GATS, by sectors and sub -sectors. Improvements over existing GATS 
commitments include a reduction in market access and/or national treatment limitations, a 
relaxation of the form of establishment under mode  3, and/ or additional commitments and/or 
improved sectoral coverage. Mode 4 commitments and limitations are, to a large extent, also 
excluded from the tables. The following sections are to be read in conjunction with the Party's 
reservations and respective modific ations in the Agreement.  
4.21.  In a number of sectors of a public utility and/or social service nature (education, health, 
recreational, in some cases also environment and transport), the Parties have restricted their 
commitments to privately funded services on ly (hereafter, "public service limitation") which was not 
always listed as a horizontal reservation. The scope of "public utilities" vary according to Parties.  
4.22.  Further, the Parties introductory notes to incorporated Annexes X and XI, as modified, to 
clarify that issues related to qualification requirements, such as diplomas, need not to be listed but 
still apply to the Parties' services suppliers. Subsidies are not covered by the Agreement.  
4.4.1   The United Kingdom  
4.23.  The Agreement incorporates, and replicates, mutatis mutandis  with some modifications33, 
specific commitments on establishment and cross -border supply of services under the EU -Central 
America Agreement.  
 
33 In particular, commitments relating to specific countries which are not part of the Agreement (EU27) 
are not incorporated into the Agreement. Sector -specific modifications relate to rental/leasing services without 
operators; telecommunications services; internal waterways transport; services auxiliary to internal waterways 
transport; and rental of aircraft with crew.  WT/REG422/1  
 
- 38 - 
 
  4.4.1.1   MFN and horizontal commitments  
4.24.  UK horizontal reservations are presented in Table 4.2.  
Table 4.2 The United Kingdom: Horizontal reservations  
Subject  GATS  Agreement  
Public utilities  Mode 3  E 
Legal entities (types of establishment)  Mode 3  E 
 a. Limitations on branches, agencies and 
representative offices  Mode 3  E 
 b. Limitations on subsidiaries  Mode 3  E34 
Subsidies  Modes 3 and 4  Not applicable  
Categories of natural persons covered under Mode 4  See section 4.3.5  
CBSS  Cross border supply of services.  
E Establishment.  
Source:  UK Schedules in Annexes X and XI to the Incorporated Agreement, as modified and UK GATS 
Schedule.  
 
4.4.1.2   Sector specific commitments  
4.25.  UK sectoral liberalization (modes 1 through 3) is presented in Table 4.3.  All sectoral 
liberalization is subject to the horizontal reservations set out in Table 4.2.  
4.26.  Under the Agreement the UK incorporates, mutatis  mutandis , its national list of reservatio ns 
as well as applicable EU sector -specific reservations except for modifications with respect to 
establishment, for rental/leasing services without operators, telecommunication services, internal 
waterways transport, services auxiliary to internal waterwa ys transport, and rental of aircraft with 
crew; and,  with respect to cross -border supply of services, for rental/leasing services without 
operators, internal waterways transport, services auxiliary to internal waterways transport, and 
rental of aircraft wi th crew. Most of the modifications replace or remove references to the EU or its 
Member States by the UK for incorporated reservations on rental/leasing services without operators; 
internal waterways transport; and air transport services. On establishment,  the UK reserves its rights 
to maintain public participation in certain telecommunication operators in the future, while clarifying 
that this is not a market access limitation. Finally, commitments relating to specific (EU27) countries 
which are not part o f the Agreement are not incorporated.  
Table 4.3 UK: Comparison of specific commitments in the GATS and the Incorporated 
Agreement 
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in 
services  Establishment  
1. Business services       
A. Professional  Services  Partial  Similar  Partial  Partial  
B. Computer  and Related  Services  Full Same  Full Full 
C. Research  and Development  Services  Partial  Improved  Partial  Partial  
D. Real  Estate  Services  Full Same  Full Full 
E. Rental/Leasing  Services  without  Operators  Partial  Same  Partial (R)  Partial (R)  
F. Other  Business  Services  Partial  Similar  Partial  Partial  
2. Communication services       
A. Postal  services  --- New Fulla Full 
B. Courier  services  --- New Fulla Full 
C. Telecommunication  services  Partial  Improved  Partial (M)  Partial  
D. Audiovisual services  --- Same  Excluded  Excluded  
E. Other  --- Same  --- --- 
3. Construction and related engineering services  
A. General  construction  work for buildings  Partial  Improved  Full Full 
B. General  construction  work for civil engineering  Partial  Improved  Full Full 
C. Installation  and assembly  work  Partial  Improved  Full Full 
D. Building  completion  and finishing  work  Partial  Improved  Full Full 
E. Other  Partial  Improved  Full Full 
4. Distribution services       
 
34 Incorporated with modifications Article 160(e) of the EU -Central America Agreemen t. WT/REG422/1  
 
- 39 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in 
services  Establishment  
A. Commission  agents'  services  Partial  Improved  Partial  Full 
B. Wholesale  trade  services  Partial  Improved  Partial  Partial  
C. Retailing  services  Partial  Improved  Partial  Partial  
D. Franchising  Partial  Improved  Full Full 
E. Other  --- Same  --- --- 
5. Education services       
A. Primary education services  Partial  Similar  Partial  Partial  
B. Secondary education services  Partial  Similar  Partial  Partial  
C. Higher education services  Partial  Similar  Partial  Partial  
D. Adult education  Partial  Similar  Partial  Partial  
E. Other education services  --- Same  --- --- 
6. Environmental services       
A. Sewage services  Partial  Improved  Partial  Full 
B. Refuse disposal services  Partial  Improved  Partial  Full 
C. Sanitation and similar services  Partial  Improved  Partial  Full 
D. Other  Partial  Improved  Partial  Full 
7. Financial services       
A. All insurance  and insurance -related  services  Partial  Similar  Partial  Partial  
B. Banking  and other  financial  services  Partial  Improved  Partial  Partial  
8. Health related and social services       
A. Hospital services  Partial  Similar  Partial  Partial  
B. Other Human Health Services  --- Improved  Partial  Partial  
C. Social Services  Partial  Similar  Partial  Partial  
D. Other  --- Same  --- --- 
9. Tourism and travel related services       
A. Hotels  and restaurants (including catering)  Partial  Improved  Partial  Partial  
B. Travel  agencies  and tour operators  services  Full Same  Full Full 
C. Tourist  guides  services  Full Same  Full Full 
D. Other  --- Same  --- --- 
10. Recreational and cultural and sporting services      
A. Entertainment  services  Partial  Similar  Partial  Partial  
B. News agency services  Full Same  Full Full 
C. Libraries, archives, museums and other cultural 
services  --- Same  --- --- 
D. Sporting and other recreational services  Partial  Similar  Partial  Partial  
E. Other  --- New Partial  Partial  
11. Transport services       
A. Maritime Transport Services  --- New Partial  Partial  
B. Internal Waterways Transport  --- New Partial (R)  Partial (R)  
C. Air  Transport  Services  Partial  Improved  Partial (R)  Partial (R)  
D. Space  Transport  --- Same  --- --- 
E. Rail  Transport  Services  Partial  Improved  Partial  Partial  
F. Road  Transport  Services  Partial  Similar  Partial  Partial  
G. Pipeline Transport of goods other than fuel  --- New Partial  Partial  
H. Services auxiliary to all modes of Transport  Partial  Similar  Partial  Partial  
I. Other  Transport  Services  Partial  Improved  Partial  Partial  
12. Other services not included elsewhere  --- Same  --- --- 
13. Energy services (Separate sector under the Agreement but not in MTN.GNS/W/120)  
A. Services Incidental to Mining    
Full Full 
B. Pipeline Transportation of fuels    
Partial  Partial  
C. Storage and warehouse services of fuels 
transported through pipelines    
Partial  Partial  
D. Wholesale trade services of solid, liquid and 
gaseous fuels and related products and wholesale 
trade services of electricity, steam and hot water    
Partial  Partial  
E. Retailing Services of motor fuel    
Partial  Partial  
F. Retail sales of fuel oil, bo ttled gas, coal and 
wood and retailing services of electricity, (non -
bottled) gas, steam and hot water    
Partial  Partial  
G. Services incidental to energy distribution    
Partial  Partial  
A Individual licenses may be required.  
M: Modifications in the Agreement to incorporated EU and UK schedules in the EU -Central America FTA.  
R: Technical modifications to replace or remove references to the EU or the EU Member States.  
E: Technical modifications.  
Full: No market access or national treatment limitation(s), for modes 1 -3. 
Partial:  Some market access or national treatment limitation(s) for modes 1 -3. WT/REG422/1  
 
- 40 - 
 
  -- No specific commitment (under GATS), or full reservation (under the Agreement).  
New:  New commitments (full or partial, with or without limitations) which can, in most cases, be seen as 
"improved".  
Improved: Overall improved commitments under the Agreement compared to those under the GATS.  
Similar:  Similar commitments; though possibly, in individual cases, with limited improveme nts and/or limited 
additional reservations. The assessment is broad taking into consideration both sectoral coverage 
and the level of specific commitments.  
Same:  Commitments are the same as under the GATS.  
Excluded: Sector or subsector excluded from covera ge. 
Note:  Horizontal reservations and Mode 4 commitments/limitations not included.  
Source:  The United Kingdom's modifications to the incorporated EU schedules annexed to the Agreement; 
European Union schedules annexed to the EU -Central American Agreement , and United Kingdom 
GATS Specific Commitments.  
 
4.27.  The sectors/sub -sectors that are fully liberalized are computer and related services, all 
construction and related engineering services, franchising, and services incidental to mining.  
4.28.  In business services,  full coverage is provided for research and development (R&D) services 
and for publicly funded R&D services, except that exclusive rights and authorization can only be 
granted to nationals and juridical persons of the UK. Establishment by real estate agent s is fully 
liberalized but rights and/or restrictions for natural and juridical persons purchasing real estate are 
not affected. Most sub -sectors in rental/leasing services without operators are liberalized; that of 
telecommunication equipment is fully committed while liberalization of other sub -sectors is improved 
compared to the GATS. Some other business services have been liberalized under the Agreement as 
regards establishment, compared to restrictions under the GATS (e.g. advisory and consulting 
servic es related to fishing) while others are fully liberalized (e.g. packaging services).  
4.29.  Some postal (for which there are no GATS commitments) and courier services including 
handling of written communications, parcels, packages and express delivery services ar e fully 
liberalized under the Agreement. However, individual licences requiring universal services 
obligations and/or financial contributions to a compensation fund may be required. In 
telecommunication services, coverage ha s been improved; new commitments  are taken on satellite 
broadcast transmission services. Audiovisual services, unbound under the GATS, are carved out of 
the Agreement.  
4.30.  The liberalization of distribution services is improved compared to the GATS. Save horizontal 
reservations, all sub -sectors are covered and many mode 3 GATS limitations are removed. Cross -
border supply of services remains, however, subject to some limitations in particular for mode 1.  
4.31.  Education services commitments under the Agreement are similar to those in the GATS 
coveri ng only privately funded education services, with numerous limitations for all modes of supply.  
4.32.  All environmental services are covered under both the GATS and the Agreement. Under the 
Agreement establishment and mode 2 are fully liberalized for all sub -sectors; for consulting services 
only mode 1 is liberalized.  
4.33.  The UK's GATS commitments in financial services, and also those under the Agreement, are 
based on the Understanding on Commitments in Financial Services (hereafter the "Understanding"). 
In financia l services, the coverage and depth of the UK's commitments under the Agreement is 
enlarged as compared to the GATS while certain limitations remain.  
4.34.  Health and social services commitments only cover privately funded services (as in the GATS), 
while also i mproving coverage and specific commitments. Mode 1 remains largely unbound for 
hospital services and other residential health facilities and social services, as under the GATS, while 
there are almost no limitations for mode 2. For mode 3 under the Agreemen t, participation by private 
operators in the health and social network is subject to concessions provided under UK domestic 
laws and an economic needs test may apply. Also, under mode 3 ambulance services are liberalized.  
4.35.   In tourism and travel related ser vices modes 1 -3 have been liberalized. Mode 2 is, in 
particular, fully liberalized for all sub -sectors as is the case for mode 3 for tourist guide services.  WT/REG422/1  
 
- 41 - 
 
  4.36.  Under recreational and cultural and sporting services, recreation park and beach services are 
fully liberalized as are news agency services.  
4.37.  In transport services, coverage differs in the partial commitments under the GATS and the 
Agreement. Under the Agreement, maritime transport only covers passenger and freight transport 
excluding cabotage: for modes 1 -2, the only restriction is an authorisa tion for feedering services 
while certain GATS mode 3 limitations have also been lifted. Internal waterways transport remains 
subject to certain limitations under modes 1 -3 but liberalization is improved as compared to the 
GATS. Mode 1 for rail and road tr ansport is unbound under the Agreement while mode 2, which is 
largely unbound under the GATS, is fully liberalized. Selling and marketing of air transport services 
is free under the Agreement; sub -sectors covered by the Agreement but not the GATS are parti ally 
liberalized, in many instances based on reciprocity. Many services auxiliary to all modes of transport 
(listed as a full sector in Annexes X and XI) are committed for modes 1 -2 but with mode 3 limitations.  
4.38.  The UK lists under a separate sector 13 ener gy services. Services incidental to mining, 
restricted for mode 3 under the GATS, are fully liberalized. For all other sub -sectors, a number of 
restrictions apply for modes 1 and 3, while mode 2 has generally been liberalized.  
4.4.2   Central American Republics  
4.39.  Under the Agreement the Central American Republics incorporate,  mutatis mutandis and 
without modifications, their respective national lists of reservations as well as sector -specific 
reservations in "establishment" and "cross -border supply of services" (Ann exes X and XI to the 
Incorporated Agreement).  
4.40.  The GATS commitments of Central American countries are limited. Given the wider scope of 
the Agreement as compared to the GATS, they have listed a number of new horizontal reservations 
in the Annexes X and XI to the Incorporated Agreement. The scope and de pth of their commitments 
under the Incorporated Agreement significantly increases liberalization in favour of UK suppliers.  
4.41.  Costa Rica, El Salvador, Guatemala, and Nicaragua have a common reservation specifying 
that market access for non -services is unbou nd. It is however mitigated by an MFN commitment to 
extend to the other Party35 any more favourable treatment granted under another international 
agreement, from the latter's date of entry into force (market access MFN clause).  
4.42.  In financial services, all Central American countries except Panama reserve the right to adopt 
or maintain measures requiring the domestic incorporation of foreign financial services suppliers, 
other than those seeking to operate as banks or insurance companies within each respectiv e 
domestic market (incorporation reservation).  
4.43.  Certain Central American Parties list in the GATS a number of taxation restrictions. These 
horizontal measures are not included in Annexes X and XI to the Incorporated Agreement, but there 
is a general taxatio n exception under the Agreement (incorporated Article 350).  
4.4.2.1   Costa Rica  
4.4.2.1.1   MFN and horizontal commitments  
4.44.  Costa Rica's horizontal reservations in Annexes X and XI to the Incorporated Agreement are 
summarized in Table 4.4 Erreur  ! Source du re nvoi introuvable. . The GATS limitation on foreign i
nvestment in coastal areas is included in the Incorporated Agreement. Other reservations include 
limitations on domesti c sale of goods produced in free zones, State ownership (or concessions) of 
natural resources; exemptions for public utilities/services, and nationality requirements for senior 
management and boards of directors.  
Table 4.4 Costa Rica: Horizontal reservations  
Subject  GATS  Agreement  
(1) Branches, agencies and representatives  None E 
(2) Branches  None E 
 
35 The commitment applies to the other Party but not among Central American countries.  WT/REG422/1  
 
- 42 - 
 
  Subject  GATS  Agreement  
(3) Coastal area  Mode 3  E 
(4) Free zones  None E 
(5/1) Natural resources – State -owned or concessions  None E & CBSS  
(6/2) Transport infrastructure – State -owned or concessions  None E & CBSS  
(7/3) Public utilities – public monopoly or exclusive rights  None E & CBSS  
(8/4) Professional services  Dealt elsewhere  E & CBSS  
(9/5) Minority Affairs and Native Groups / Social Services  None E & CBSS  
(10/6) Standstill for local governmentsa None E & CBSS  
(11) Senior management and board of directors  None E 
(12) Market access for non -services: unbound, MFN clause  Not applicable  E 
a Without prejudice to Costa Rica's commitments in Government procurement (Title V).  
CBSS  Cross -border supply of services.  
E Establishment.  
Note:  In brackets, the number of the horizontal reservation in Annexes X and XI, respectively.  
Source:  Costa Rica's  GATS Draft Consolidated Schedule of Specific Commitments (S/DCS/W/CRI) and its 
Schedules annexed to the Agreement.  
 
4.4.2.1.2   Sector specific commitments  
4.45.  Table 4.5 compares sector specific commitments under both the GATS and the Agreement 
(modes 1 -3, horizontal res ervations excluded).  
Table 4.5 Costa Rica: Comparison of specific commitments in the GATS and the 
Incorporated Agreement  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in 
services  Establishment  
1. Business services      
A. Professional  Services  Partial  Improved  Partial  Partial  
B. Computer  and Related  Services  Partial  Improved  Full Full 
C. Research  and Development  Services  --- New Partial  Partial  
D. Real  Estate  Services  --- New Full Full 
E. Rental/Leasing  Services  without  Operators  Partial  Improved  Partial  Partial  
F. Other  Business  Services  --- New Partial  Partial  
2. Communication services      
A. Postal  services  --- Same  --- --- 
B. Courier  services  --- New Partial  Partial  
C. Telecommunication  services  --- New Partial  Partial  
D. Audiovisual services  --- Same  Excluded  Excluded  
E. Other  --- Same  --- --- 
3. Construction and related engineering services      
All sub -sectors A -E --- New Full Full 
4. Distribution services      
A. Commission  agents'  services  --- New Partial  Partial  
B. Wholesale  trade  services  --- New Partial  Partial  
C. Retailing  services  --- New Partial  Partial  
D. Franchising  --- New Full Full 
E. Other  --- Same  --- --- 
5. Education servicesa     
A. Primary education services  Partial  Improved  Full Full 
B. Secondary education services  Partial  Improved  Full Full 
C. Higher education services  Partial  Improved  Partial  ---  
D. Adult education  --- New Full Full 
E. Other education services  --- New Full Full 
6. Environmental services      
All sub -sectors A -D --- New Partial  Partial  
7. Financial services      
A. All insurance  and insurance -related  services  --- New Partial  Partial  
B. Banking  and other  financial  services  Partial  Improved  Partial  Partial  
8. Health related and social servicesa     
A. Hospital services  Partial  Improved  Partial  Full 
B. Other Human Health Services  --- New Partial  Full 
C. Social Services  --- Same  --- --- 
D. Other  --- Same   --- --- WT/REG422/1  
 
- 43 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in 
services  Establishment  
9. Tourism and travel related services      
A. Hotels  and restaurants (including catering)  Partial  Improved  Partial  Partial  
B. Travel  agencies  and tour operators  services  Partial  Improved  Full Partial  
C. Tourist  guides  services  Partial  Improved  Partial  Partial  
D. Other  Partial  Lower  --- --- 
10. Recreational and cultural and sporting services     
A. Entertainment  services  --- New Partial  Full 
B. News agency services  --- New Partial  Partial  
C. Libraries, archives, museums and other cultural 
services  --- New Partial  Partial  
D. Sporting and other recreational services  Partial  Improved  Partial  Partial  
E. Other  --- Improved  Partial  Partial  
11. Transport services      
A. Maritime Transport Services  --- New Partial  Partial  
B. Internal Waterways Transport  --- New Partial  --- 
C. Air  Transport  Services  --- New Partial  Partial  
D. Space  Transport  --- Same  --- --- 
E. Rail  Transport  Services  --- New Partial  Partial  
F. Road  Transport  Services  --- New Partial  Partial  
G. Pipeline Transport of goods other than fuel  --- Same  --- --- 
H. Services auxiliary to all modes of Transport  --- New Partial  Partial  
I. Other  Transport  Services  --- New Partial  Partial  
12. Other services not included elsewhere  --- New Partial  Partial  
13. Energy services  
All sub -sectors A -G --- New Partial  Partial  
a Only privately -funded services.  
Note:  Horizontal reservations and Mode 4 commitments/limitations not included.  
 Definitions in accordance with those of Table 4.3.  
Source:  As table above.  
 
4.46.  The sectors/sub -sectors that are fully liberalized are computer and related services, real 
estate services, all construction and related engineering services; franchising; privately funded 
education services except for higher educ ation; and privately funded hospital services and other 
human health services.  
4.47.  In business services, there are partial GATS commitments for medical and dental services, 
and computer and related services. Under the Agreement, professional services are cover ed 
extensively, with liberalization normally limited by nationality requirements for mode 1 but fully 
liberalized for mode  2. That is also the case for medical and dental services, with liberalization 
improved given that under GATS mode 1 is unbound. Liber alization of mode 3 varies, but it is free 
for example for architectural and veterinary services. For R&D services, only R&D in natural science 
is not fully liberalized. Under the GATS, rental car services are free for mode 2 and unbound for 
other modes; u nder the Agreement they are free for all three modes. Coverage is also extended to 
other types of rental/leasing services without operators, with some reservations.  
4.48.  In courier services, modes 1 -3 are free except what is reserved for the State and its 
enterprises.  
4.49.  Modes 1 and 3 in education services, which are unbound under the GATS, are liberalized 
except for higher education. As in the GATS, these only apply to privately funded services. Health 
and social services commitments also only apply to privately funded services, and commitments in 
the Agreement are improved for mode 3; modes 1 -2 commitments are similar to the GATS. 
Environmental services are unbound for mode 1 except for consulting services, and fully liberalized 
for mode 2.  
4.50.  For financial services , commitments are undertaken in insurances services – for which there 
are no GATS commitments. In banking services, improvements include mode 2 full liberalization of 
advisory and other auxiliary services (excluding intermediation), for which there are no GATS 
commitments.  WT/REG422/1  
 
- 44 - 
 
  4.51.  GATS commitments for other tourist sector/computer reservation services are not included in 
the Agreement. In recreational and cultural and sporting services, the GATS commitments on rental 
of tourist boats are not included in the Agreem ent but all sporting services are fully liberalized.  
4.52.  For all types of transport services, passenger and freight services have been partially 
liberalized. Services auxiliary to all modes of transport and pipeline transportation of fuels are also 
partially liberalized. In air transport services, repair of aircraft, ground handling etc. remains subject 
to restrictions; airport management is exempted under the public utilities reservation; and sales and 
marketing and computer reservation systems are free. The public utilities reservation also applies 
to ports and railways, as well as pushing and towing services.  
4.4.2.2   El Salvador  
4.4.2.2.1   MFN and horizontal commitments  
4.53.  GATS -wide restrictions on foreign investment (e.g., local presence, maximum transfer of 
benefits) are lifted.36 More targeted limitations are however listed under the Incorporated Agreement 
(Table 4.6 Erreur  ! Source du renvoi introuvable. ). Foreign in vestment including rural ownership o
f land is subject to reciprocity, except for land used for industrial plants. The incorporated 
Agreement's reservations on small -scale trade and percentage of national personnel and their wages 
match those in the GATS. T he cooperatives reservation requires that at least 75% of the personnel 
be Salvadorian nationals  (the threshold for this in general is of 90%) . 
Table 4.6 El Salvador: Horizontal reservations, incorporated Annexes X and XI, as 
modified  
Subject  GATS  Agreement  
(1/1) National resources – State -owned or concessions  Wider for E  E & CBSS  
(2) Rural land ownership on the basis of reciprocity  Wider for E  E 
(3) Foreign ownership of enterprises on the basis of reciprocity  Wider for E  E 
(4) Small -scale trade reserved to nationals and CA nationals  Mode 4  E 
(5) Cooperatives  Wider for E  E 
(6) Personnel  Mode 4  E 
(7/2) Minority Affairs  None E & CBSS  
(8/3) Social services for public purposes  None E & CBSS  
(9/4) Public companies or public utility services in the exercise of 
governmental authority  None E & CBSS  
(10/5) Local governments exempted from commitmentsa None E & CBSS  
(11/6) Concession, license, etc  None E & CBSS  
(12) Juridical persons  Wider for E  E 
(13/7) Public utilities – public monopoly or exclusive rights  None E & CBSS  
(14) Non -discriminatory nature of Article 164  
Not applicable  E 
(15) Market access for non -services: unbound, MFN clause  E 
(-/8) Non -discriminatory nature of Article 170  CBSS  
a Without prejudice to El Salvador's commitments in Government procurement.  
CBSS  Cross -border supply of services.  
E Establishment.  
Note:  In brackets, the number of the horizontal reservation in Annexes X and XI to the Incorporated 
Agreement, respectively.  
Source:  El Salvador's GATS Draft Consolidated Schedule of Specific Commitments (S/DCS/W/SLV) and its 
Schedules annexed to the incorpora ted Agreement.  
 
4.4.2.2.2   Sector specific commitments  
4.54.  The scope and depth of El Salvador's commitments under the Agreement significantly 
increases liberalization for UK suppliers. Table 4.7 Erreur  ! Source du renvoi i
ntrouvable. compares sector specific commitments under the GATS and the Incorporated 
Agreement (modes 1 -3, horizontal reservations excluded).  
 
36 The GATS taxation reservation is not replicated; this may be covered by the incorporated Article 350.  WT/REG422/1  
 
- 45 - 
 
  Table 4.7 El Sal vador: Comparison between the GATS and the Incorporated Agreement 
specific commitments, as modified  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in 
services  Establishment  
1. Business services      
A. Professional  Services  Partial  Improved  Partial  Partial  
B. Computer  and Related  Services  Partial  Improved  Full Full 
C. Research  and Development  Services  --- New Full Full 
D. Real  Estate  Services  --- New Full Full 
E. Rental/Leasing  Services  without  Operators  Partial  Improved  Full Full 
F. Other  Business  Services  Partial  Improved  Partial  Partial  
2. Communication services      
A. Postal  services  --- Same  --- --- 
B. Courier  services  --- New Full Full 
C. Telecommunication  services  Partial  Improved  Full Full 
D. Audiovisual services  --- Same  Excluded  Excluded  
E. Other  --- Same  --- --- 
3. Construction and related engineering services      
All sub -sectors A -E --- New Partial  Partial  
4. Distribution services      
Sub-sectors A -B-C-D --- New Full Full 
E. Other  --- Same  --- --- 
5. Education services      
Sub-sectors A -B-C-D --- New Partial  Partial  
E. Other education services  --- New  --- Full 
6. Environmental services      
Sub-sectors A -B-C --- New Partial  Partial  
D. Other  Partial  Improved  Partial  Partial  
7. Financial services      
A. All insurance  and insurance -related  services  --- New Partial  Partial  
B. Banking  and other  financial  services  Partial  Improved  Partial  Partial  
8. Health related and social services      
All sub -sectors A -D --- Same  --- --- 
9. Tourism and travel related services      
Sub-sectors A -B-C Partial  Improved  Full Full 
D. Other  --- Same  --- --- 
10. Recreational and cultural and sporting services  
A. Entertainment  services  --- New Partial  Partial  
B. News agency services  --- New Full Full 
C. Libraries, archives, museums and other cultural 
services  --- New Full Full 
D. Sporting and other recreational services  --- New Full Full 
E. Other  --- New Full Full 
11. Transport services      
A. Maritime Transport Services  --- New Partial  Partial  
B. Internal Waterways Transport  --- New Partial  Partial  
C. Air Transport  Services  Partial  Improved  Partial  Partial  
D. Space  Transport  --- Same  --- --- 
E. Rail  Transport  Services  --- New Partial  Partial  
F. Road  Transport  Services  --- New Partial  Partial  
G. Pipeline Transport of goods other than fuel --- New Partial  Partial  
H. Services auxiliary to all modes of Transport  --- New Partial  Partial  
I. Other  Transport  Services  --- New Partial  Partial  
12. Other services not included elsewhere   New Partial  Partial  
13. Energy services  
A. Services Incidental to Mining  --- New Partial  ---  
B. Pipeline Transportation of fuels  --- New Full Full 
C. Storage and warehouse services of fuels transported 
through pipelines  --- New Full Full 
D. Wholesale trade services of solid, liquid and gaseous 
fuels and related products and wholesale trade services 
of electricity, steam and hot water  --- New Full Full 
E. Retailing Services of motor fuel  --- New Full Full 
F. Retail sales of fuel oil, bottled gas, coal and wood 
and retailing services of electricity, (non -bottled) gas, 
steam and hot water  --- New Full Full WT/REG422/1  
 
- 46 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in 
services  Establishment  
G. Services incidental to energy distribution  --- New Partial  Partial  
Note:  Horizontal reservations  and Mode 4 commitments/limitations not included.  
 Definitions in accordance with those of Table 4.3.  
Source:  As table above.  
 
4.55.  The sectors/sub -sectors that are fully liberalized are computer and related services; R&D; real 
estate services; rental/leasing without operators; courier services; distribution services; tourism 
services sectors except "other"; various privately funded recreational, cultural and sporting services 
excluding audiovisual services, and various energy services. Telecommu nications services are fully 
liberalized – save for broadcasting that is carved out from the Agreement. Only health -related and 
social services sector remain completely closed to service suppliers from the United Kingdom.  
4.56.  The coverage of business services is largely improved compared with the GATS (only partial 
commitments in computer services) in particular on scope. Mode 2 is generally free for committed 
sectors; the depth of liberalization of modes 1 and 3 is more variable. All other business services 
are liberalized, with a few restrictions (e.g., local content for advertising, authorisation for 
investigation and security services).  
4.57.  In construction and related engineering services, only mode 2 has been liberalized; modes 1 
and 3 reservations include part nership with a domestic enterprise and local presence requirements.  
4.58.  Except for other education services, all of the education services sector is liberalized, save for 
a nationality requirement for the teaching of national history and the Constitution. Oth er education 
services are free for mode 3 but El Salvador undertakes no commitment in modes 1 and 2. There 
are no commitments in the sector in the GATS.  
4.59.  Under the Agreement, all of environmental services - largely uncommitted under the GATS – 
are fully lib eralized for mode 2. Mode 1 liberalization only applies to consulting services, while for 
establishment a concession or permit may be required for the supply of such services.  
4.60.  In the case of financial services, commitments are undertaken in insurances ser vices – for 
which there are no GATS commitments - with mode 1 opened up for certain non -life insurance 
services and mode 2 fully liberalized. A branch office of a foreign insurance company may be opened 
within one year from the Agreement's entry into force . The 75% equity requirement for Salvadoran 
and Central American natural persons in the GATS is reduced to 50% for banks but maintained at 
75% for insurance. The coverage of banking services is extended to all sub -sectors, subject to 
limitations for mode 3  and with modes 1 and 2 covering solely the provision and transfer of financial 
information, financial data processing and advisory and other auxiliary services (excluding 
intermediation). Services classified under "other" in the GATS Schedule have been in tegrated into 
the two sub -sectors in the Agreement.  
4.61.  In entertainment services, a number of limitations (nationality and performance 
requirements) apply for modes 1 and 3, with mode 2 being free. All the remaining privately funded 
recreational, cultural and  sporting services are free.  
4.62.  Passenger and freight transport services are fully liberalized for maritime transport. For other 
sub-sectors, liberalization of passenger and freight transportation is only partial – generally free for 
modes 1 and 2 but with mo de 3 limitations (concession or licence) for internal waterways and rail 
transport. Liberalization in covered air transport services is improved e.g. full liberalization of 
computer reservation systems. In road transport services, passenger transportation remains subject 
to nationality requirements, concessions and an economic needs test, and mode 3 is unbound for 
freight transportation by UK companies. In air transport services, aircraft repair requires a reciprocal 
concession/license, airport management i s free for mode 2 but unbound for modes 1 and 3; sales 
and marketing and computer reservation systems are free. Partial liberalization commitments are 
made in services auxiliary to all modes of transport and pipeline transport services.  WT/REG422/1  
 
- 47 - 
 
  4.4.2.3   Guatemala  
4.4.2.3.1   MFN and h orizontal commitments  
4.63.  Compared to the GATS, there are a number of new horizontal reservations on ownership of 
land in urban, coastal and border areas. The GATS thresholds on the percentage of national 
personnel and their wages (90% and 85%, respectively) m ay be decreased under certain specific 
circumstances (Table 4.8).37 
Table 4.8 Guatemala: Horizontal reservations  
Subject  GATS  Agreement  
(1/2) Minority Affairs  None E & CBSS  
(2) Land ownership on coastal area and urban zones  None E 
(3) Land ownership on border area  None E 
(4) Legal entities – minimum capital  None E 
(5/1) Personnel  Mode 4  E & CBSS  
(6) Senior managers and board of directors exempted from 
limitation referred to above  None E 
(7) Market access for non -services: unbound, MFN clause  Not applicable  E 
(8/3) Public utilities – public monopoly or exclusive rights  None E & CBSS  
CBSS  Cross -border supply of services.  
E Establishment.  
Note:  In brackets, the order of the horizontal reservation in Annexes X and XI, respectively.  
Source:  Guatemala's GATS Draft Consolidated Schedule of Specific Commitments (S/DCS/W/GTM) and its 
Schedules annexed to the Agreement.  
 
4.4.2.3.2   Sector specific commitments  
4.64.  The scope and depth of Guatemala's commitments under the Agreement significantly 
increases liberalization for UK suppliers (Table 4.9).  
Table 4.9 Guatemala: Comparison of specific commitments in the GATS and the 
Incorporated Agreement  
Sectors / Sub -sectors  GATS  FTA 
Compared to 
GATS  Trade in 
services  Establishment  
1. Business services      
A. Professional  Services  --- New Partial  Partial  
B. Computer  and Related  Services  Partial  Improved  Full Full 
C. Research  and Development  Services  --- New Full Full 
D. Real  Estate  Services  --- New Full Full 
E. Rental/Leasing  Services  without  Operators  --- New Full Full 
F. Other  Business  Services  --- New Partial  Partial  
2. Communication services      
A. Postal  services  --- New Full Full 
B. Courier  services  --- New Full Full 
C. Telecommunication  services  Partial  Improved  Partial  Partial  
D. Audiovisual services  --- Same  Excluded  Excluded  
E. Other  --- Same  --- --- 
3. Construction and related engineering 
services      
All sub -sectors A -E --- New Full Full 
4. Distribution services      
A. Commission  agents'  services  --- New Full Full 
B. Wholesale  trade  services  --- New Partial  Full 
C. Retailing  services  --- New Full Full 
D. Franchising  --- New Full Full 
E. Other  --- Same  --- --- 
5. Education services      
Sub-sectors A -B-C-D --- New Full Full 
 
37 Authorised by the Executive Branch, for work in agriculture,  livestock, welfare or cultural character 
institutions; or in the case of Central American origin.  WT/REG422/1  
 
- 48 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared to 
GATS  Trade in 
services  Establishment  
E. Other education services  --- New Partial  --- 
6. Environmental services      
Sub-sectors A -B-C --- New Partial  Full 
D. Other  --- New Partial  Partial  
7. Financial services      
A. All insurance  and insurance -related  services  Partial  Improved  Partial  Partial  
B. Banking  and other  financial  services  Partial  Improved  Partial  Partial  
8. Health related and social services      
A. Hospital services  --- New Full Full 
B. Other human health services  --- New Partial  Full 
C. Social services  --- New Partial  --- 
D. Other  --- Same  --- --- 
9. Tourism and travel related services      
A. Hotels  and restaurants (including catering)  Partial  Improved  Full Full 
B. Travel  agencies  and tour operators  services  --- New Full Full 
C. Tourist  guides  services  --- New Partial  Partial  
D. Other  Partial  Lower  --- --- 
10. Recreational and cultural and sporting services  
A. Entertainment  services  --- New Partial  Full 
B. News agency services  --- New Full Full 
C. Libraries, archives, museums and other cultural 
services  --- New Full Full 
D. Sporting and other recreational services  --- New Full Full 
E. Other  --- New Partial  Full 
11. Transport services      
A. Maritime Transport Services  --- New Partial  Partial  
B. Internal Waterways Transport  --- New Partial  Partial  
C. Air  Transport  Services  Partial  Improved  Full Full 
D. Space  Transport  --- Same  --- --- 
E. Rail  Transport  Services  --- New Partial  Full 
F. Road  Transport  Services  --- New Partial  Full 
G. Pipeline Transport of goods other than fuel --- New Full Full 
H. Services auxiliary to all modes of Transport  --- New Partial  Full 
I. Other  Transport  Services  --- New Partial  Partial  
12. Other services not included elsewhere  --- New Partial  Partial  
13. Energy services  
Sub-sectors A -B-C-D-E and G  --- New Full Full 
F. Retail sales of fuel oil, bottled gas, coal and 
wood and retailing services of electricity, (non -
bottled) gas, steam and hot water  --- New Partial  Full 
Note:  Horizontal reservations and Mode 4 commitments/limitations not included.  
 Definitions in acc ordance with those of Table 4.3.  
Source:  As table above.  
 
4.65.  The sectors/sub -sectors that are fully liberalized are computer and related services; R&D; real 
estate services; rental/leasing without operators; postal and courier services; all construction and 
related engineering services; commission agents services; retail services except for electricity, gas, 
steam and hot water; franchising; all privately -funded hospital services and education services 
except "other"; hotels and restaurants; travel agencies and tour operators; privately -funded news 
agencies, libraries, archives, museums and other cultural services, sporting and other recreational 
services excluding audio -visual (carved -out from the Agreement); air transport services; pipeline 
transport of goods other than fuel; and energy services.  
4.66.  Business services are largely liberalized under the Agreement. In professional services, 
modes  1 and 2 are generally fully liberalized except for legal services (nationality requirements for 
admissio n to the Bar, notaries and auditing services) and midwife services which is unbound for 
mode 1. Establishment nevertheless generally requires a partnership/association with nationals. In 
other business services mode 1 is unbound for a limited number of sub -sectors (e.g., placement, 
and investigation), there are no commitments in the supply of aerial photographic services as well 
as official translation and interpretation; modes 2 and 3 are fully liberalized.  
4.67.  Guatemala is the only Central American country th at fully liberalizes postal services. 
Telecommunication services are also largely liberalized but may require registration and reciprocity.  WT/REG422/1  
 
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  4.68.  Under the Agreement, all environmental services – for which there are no commitments under 
the GATS – are fully libe ralized for mode 2, with mode 1 liberalization only applying to consulting 
services. Establishment is fully liberalized except for other environmental and ancillary services.  
4.69.  For financial services, mode 1 -2 commitments are extended beyond reinsurance (on ly sub -
sector with GATS commitments) to cover certain non -life insurance services and services auxiliary 
to insurance. No reservation applies to establishment except for the incorporation reservation. The 
coverage of banking services is extended to cover a ll sub -sectors, with modes 1 and 2 unbound for 
5 out of the 12 sub -sectors.  
4.70.  Health and social services commitments only apply to privately funded services, with hospital 
services fully liberalized. Other sub -sectors - ambulance, residential health faciliti es and social 
services, are free for mode 2 and unbound for mode 1, while mode 3 is free for the first two.  
4.71.  Two tourism sub -sectors have been fully liberalized. GATS commitments in modes 2 and 3 for 
the operation of marina services are not incorporated int o the Agreement. In entertainment services, 
the only limitation concerns an authorization for hiring foreign suppliers.  
4.72.  Passenger and freight transport services are fully liberalized for rail, road and maritime 
transport, except for national cabotage. Push ing and towing services remain closed for maritime and 
internal waterways transport services but liberalized for rail transport services. For other sub -sectors 
mode 1 is sometimes unbound, while modes 2 and 3 are in general free. Air transport services are  
free except mode  1 for ground handling services other than catering.  
4.73.  All energy services are free except for retailing services for electricity, gas, steam and hot 
water for which mode 1 is unbound.  
4.4.2.4   Honduras  
4.4.2.4.1   MFN and horizontal commitments  
4.74.  Compared to the GATS, the horizontal reservation regarding land ownership has been made 
more flexible as it authorizes investors of the UK to own/lease land in such areas for tourism or other 
economic or social development reasons, subject to government authorization. Lim itations on 
personnel are less restrictive: GATS thresholds on the maximum percentage of foreign personnel 
and their wages (10% and 15%, respectively) may be increased (or decreased) under certain specific 
circumstances,38 with senior management being exem pted from these ceilings. GATS requirements 
that senior management speak Spanish, as well as those linking foreign establishment to capacity -
building of Honduran nationals and limiting foreigners in labour unions are lifted. Further, Honduras 
grants the UK  an MFN clause for the treatment of its nationals under its labour regulations (" Código  
de Trabajo "). Compared to the GATS, small -scale trade is opened up to UK nationals that are 
naturalized citizens of Honduras on the basis of reciprocity (Table 4.10) .  
Table 4.10 Honduras: Horizontal reservations  
Subject  GATS  Agreement  
(1) Personnel  Mode 4  E  
(2) Ownership/lease of State/common land and of land on 
coastal and border areas  Mode 3  E 
(3) Small -scale trade opened up to naturalized citizens on the 
basis of reciprocity  Mode 3  E 
(4) Cooperatives – prior authorization required on the basis of 
reciprocity and a legal representative in Honduras  None E 
(5) Local presence  None E 
(6/1) Social services for public purposes  None E & CBSS  
(7/2) Public utilities – public monopoly or exclusive rights  None E & CBSS  
(8/3) Market access for non-services: unbound, MFN clause  Not applicable  E & CBSS  
CBSS  Cross -border supply of services.  
 
38 Authori zed by the Executive authority.  WT/REG422/1  
 
- 50 - 
 
  E Establishment.  
Note:  In brackets , the order of the horizontal reservation in Annexes X and XI, respectively.  
Source:  Honduras' GATS Draft Consolidated Schedule of Specific Commitments (S/DCS/W/HND/Rev.1 and its 
Schedules annexed to the Agreement.  
 
4.4.2.4.2   Sector specific commitments  
4.75.  The scope  and depth of Honduras's commitments under the Incorporated Agreement 
significantly increases liberalization for UK suppliers ( Table 4.11 ). 
Table 4.11 Honduras: Comparison of specific commitments in the GATS and t he 
Incorporated Agreement  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in 
services  Establishment  
1. Business services      
A. Professional  Services  --- New Partial  Partial  
B. Computer  and Related  Services  Partial  Improved  Full Full 
C. Research  and Development  Services  --- New Full Full 
D. Real  Estate  Services  --- New Full Full 
E. Rental/Leasing  Services  without  Operators  --- New Full Full 
F. Other  Business  Services  Partial  Improved  Partial  Partial  
2. Communication services      
A. Postal  services  --- Same  --- --- 
B. Courier  services  --- New Full Full 
C. Telecommunication  services  Partial  Improved  Partial  Partial  
D. Audiovisual services  --- Same  Excluded  Excluded  
E. Other  --- Same  --- --- 
3. Construction and related engineering services      
All sub -sectors A -E --- New Partial  Partial  
4. Distribution services      
Sub-sectors A -D --- New Full Full 
E. Other  --- Same  --- --- 
5. Education services      
Sub-sectors A -D --- New Partial  Partial  
E. Other education services  --- Same  --- --- 
6. Environmental services      
All sub -sectors A -D --- New Partial  Partial  
7. Financial services      
A. All insurance  and insurance -related  services  Partial  Improved  Partial  Partial  
B. Banking  and other  financial  services  Partial  Improved  Partial  Partial  
8. Health related and social services      
Sub-sectors A -C --- New Full Full 
D. Other  --- Same  --- --- 
9. Tourism and travel related services      
A. Hotels  and restaurants (including catering)  Full Same  Full Full 
B. Travel  agencies  and tour operators  services  Partial  Improved  Full Full 
C. Tourist  guides  services  --- New Full Full 
D. Other  --- Same  --- --- 
10. Recreational and cultural and sporting services  
A. Entertainment  services  --- New Partial  Full 
B. News agency services  --- New Partial  Partial  
C. Libraries, archives, museums and other cultural 
services  --- New Full Full 
D. Sporting and other recreational services  --- New Full Full 
E. Other  --- New Partial  Partial  
11. Transport services      
A. Maritime Transport Services  --- New Partial  Partial  
B. Internal Waterways Transport  --- New Partial  Partial  
C. Air Transport  Services  Partial  Improved  Full Full 
D. Space  Transport  --- Same  --- --- 
E. Rail  Transport  Services  --- New Partial  Partial  
F. Road  Transport  Services  Partial  Improved  Partial  Partial  
G. Pipeline Transport of goods other than fuel --- New Partial  Partial  
H. Services auxiliary to all modes of Transport  --- New Partial  Partial  WT/REG422/1  
 
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  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in 
services  Establishment  
I. Other  Transport  Services  --- New Partial  Partial  
12. Other services not included elsewhere  --- New Partial  Partial  
13. Energy services  
A. Services Incidental to Mining  --- New Full Full 
B. Pipeline Transportation of fuels  --- New Full Full 
C. Storage and warehouse services of fuels transported 
through pipelines  --- New Full Partial  
D. Wholesale trade services of solid, liquid and gaseous 
fuels and related products and wholesale trade services 
of electricity, steam and hot water  --- New Partial  Partial  
E. Retailing Services of motor fuel  --- New Full Partial  
F. Retail sales of fuel oil, bottled gas, coal and wood 
and retailing services of electricity, (non -bottled) gas, 
steam and hot water  --- New Partial  Partial  
G. Services incidental to energy distribution  --- New Full Partial  
Note:  Horizontal reservations and Mode 4 commitments/limitations not included.  
 Definitions in accordance with those of Table 4.3.  
Source:  As table above.  
 
4.76.  The sectors/sub -sectors that are fully liberalized are computer and related services; R&D; real 
estate services; re ntal/leasing without operators; courier services; distribution services except 
"other"; privately funded health services and social services except "other"; tourism services except 
"other"; libraries and sporting services; air transport services; services incidental to mining; and 
pipeline transportation of fuels.  
4.77.  Business services are largely liberalized under the Agreement; in some instances, modes 1 
and 3 remain subject to residency requirements and in a fewer cases to nationality requirements. 
In other business services, investigation services remain unbound, advertising and security services 
are subject to restrictions while other sub -sectors are fully liberalized.  
4.78.  A sector -wide limitation applies to telecommunication services allowing any modification of 
State participation in the national telecommunication enterprise (HONDUTEL), its affiliates or 
subsidiaries. Further, foreign governments cannot participate directly or indirectly in the provision 
of public telecommunications and there is a need for com mercial presence. Satellite broadcasting is 
opened up for modes 1 -2 and mode 3 subject to reciprocity.  
4.79.  In construction and related engineering services, only mode 2 has been liberalized; mode 1 
is unbound and mode 3 remains subject to numerous establishmen t requirements.  
4.80.  Environmental services are reserved for municipalities, with the exception of "other" (noise 
and vibration abatement, protection of biodiversity etc) - fully liberalized for mode 2, but with 
mode  1 liberalization only applying to consultin g services. Establishment is fully liberalized except 
for "other environmental and ancillary services".  
4.81.  Sector -wide financial services limitations allow Honduras to take any measures on the supply 
of services by savings and loan cooperatives and to require incorporation in Honduras of foreign 
financial service suppliers other than banks or insurers. Despite remaining subject to various other 
limitations for modes 1 -3, liberalization is improved compared to the GATS in particular for sub -
sectoral cove rage/liberalization commitments for mode 2 and economic needs tests and performance 
and senior management requirements are lifted.  
4.82.  The liberalization of transport services is significantly increased in terms of coverage and 
depth of commitments. For exampl e, GATS commitments on road transport services are limited to 
rental of vehicles; under the Agreement, the whole sector is covered, with modes 1 -2 free subject 
to reciprocity and to preferential treatment for domestic suppliers on selected routes; mode 3 i s 
subject to various requirements.  WT/REG422/1  
 
- 52 - 
 
  4.83.  Modes 1 and 2 in energy services are generally free, except for mode 1 for the wholesale of 
petroleum products and retail of electricity, gas, steam power; establishment is subject to 
requirements, in particular incorpora tion under Honduran law.  
4.4.2.5   Nicaragua  
4.4.2.5.1   MFN and horizontal commitments  
4.84.  The GATS economic needs test for approval of FDI is lifted under the Incorporated Agreement. 
A number of other horizontal limitations, not included in the GATS, are listed in both incorporated 
Annexes; they may result from the Incorporated Agreement's wider scope and coverage. For 
example, Nicaragua has reserved its rights to take any measure with respect to coastal lands, 
islands, and riverbanks in its possession ( Table 4.12 ). 
Table 4.12 Nicaragua: Horizontal reservations  
Subject  GATS  Agreement  
(1/-) Personnel  Mode 4  E  
(2/-) Free -zones – preferential treatment for all investors  None E 
(3/-) Sale of heritage goods – preferential treatment to the Sate  None E 
(4/-) Local presence  None E 
(5/-) MSMEs  None E 
(6/-) SOEs  None E 
(7/-) Government enterprises – control and senior management  None E 
(8/-) Ownership of costal land & islands  None E 
(9/-) Costal land & islands ownership/investment - Local presence  None E 
(10/1) Minority Affairs  None E & CBSS  
(11/2) Public utilities – public monopoly or exclusive rights  None E & CBSS  
(12/3) Social services for public purposes  None E & CBSS  
(13/3) Market access for non -services: unbound, MFN clause  None E & CBSS  
(-/4) Supply of professional services  Mode 4  CBSS  
(-/5) MFN reservation as regards the Central American Economic 
Integration Subsystem  MFN  CBSS  
CBSS  Cross -border supply of services.  
E Establishment.  
MSMEs  Micro, Small and Medium Enterprises.  
Note:  In brackets, the order of the horizontal reservation in Annexes X and XI, respectively.  
Source:  Nicaragua's GATS Draft Consolidated Schedule of Specific Commitments (S/DCS/W/NIC and its 
Schedules annexed to the Incorporated Agreement.  
 
4.4.2.5.2   Sector specific comm itments  
4.85.  The scope and depth of Nicaragua's commitments under the Agreement significantly increases 
liberalization for UK suppliers ( Table 4.13 ). 
Table 4.13 Nicaragua: Comparison of specific commitments in the GATS  and the 
Incorporated Agreement  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in 
services  Establishment  
1. Business services      
A. Professional  Services  --- New Partial  Partial  
B. Computer  and Related  Services  Partial  Improved  Full Full 
C. Research  and Development  Services  Partial  Improved  Partial  Partial  
D. Real  Estate  Services  --- New Full Partial  
E. Rental/Leasing  Services  without  operators  --- New Full Full 
F. Other  Business  Services  Partial  Improved  Partial  Partial  WT/REG422/1  
 
- 53 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in 
services  Establishment  
2. Communication services      
A. Postal  services  --- Same  --- --- 
B. Courier  services  --- New Partial  Partial  
C. Telecommunication  services  Partial  Improved  Partial  Partial  
D. Audiovisual services  Partial  Same  Excluded  Excluded  
E. Other  --- Same  --- --- 
3. Construction and related engineering services      
All sub -sectors A -E --- New Partial  Partial  
4. Distribution services      
Sub-sectors A -D --- New Full Full 
E. Other  --- Same  --- --- 
5. Education services      
All sub -sectors A -E --- New Partial  --- 
6. Environmental services      
A. Sewage services  --- Same  --- --- 
B. Refuse disposal services  --- New Partial  --- 
C. Sanitation and similar services  --- New Partial  --- 
D. Other  --- New Partial  Partial  
7. Financial services      
A. All insurance  and insurance -related  services  Partial  Improved  Partial  Partial  
B. Banking  and other  financial  services  Partial  Improved  Partial  Partial  
8. Health related and social services      
Sub-sectors A -C --- New Partial  --- 
D. Other  --- Same  --- --- 
9. Tourism and travel related services      
A. Hotels  and restaurants (including catering)  Partial  Lower  Full Partial  
B. Travel  agencies  and tour operators  services  Partial  Lower  Full Partial  
C. Tourist  guides  services  Full Lower  Full Partial  
D. Other  ---  --- --- 
10. Recreational and cultural and sporting services  
A. Entertainment  services  --- New Partial  Partial  
B. News agency services  --- New Full --- 
C. Libraries, archives, museums and other cultural 
services  --- New Full Full 
D. Sporting and other recreational services  --- New Full Full 
E. Other  --- New Partial  Partial  
11. Transport services   New   
A. Maritime Transport Services  --- New Partial  Partial  
B. Internal Waterways Transport  --- New Partial  Partial  
C. Air Transport  Services  Partial  Improved  Partial  Partial  
D. Space  Transport  --- Same  --- --- 
E. Rail  Transport  Services  Partial  Improved  Partial  Partial  
F. Road  Transport  Services  --- New Partial  Partial  
G. Pipeline Transport of goods other than fuel --- New Partial  Partial  
H. Services auxiliary to all modes of Transport  --- New Partial  Partial  
I. Other  Transport  Services  --- New Partial  Partial  
12. Other services not included elsewhere  --- New Partial  Partial  
13. Energy services  
A. Services Incidental to Mining  Partial  Improved  Partial  Partial  
B. Pipeline Transportation of fuels  --- New Partial  Partial  
C. Storage and warehouse services of fuels transported 
through pipelines  --- New Partial  Full 
D. Wholesale trade services of solid, liquid and gaseous 
fuels and related products and wholesale trade services 
of electricity, steam and hot water  --- New Full Full 
E. Retailing Services of motor fuel  --- New Full Full 
F. Retail sales of fuel oil, bottled gas, coal and wood 
and retailing services of electricity, (non -bottled) gas, 
steam and hot water  --- New Full Full 
G. Services incidental to energy distribution  Partial  Lower  --- --- 
Note:  Horizontal reservations a nd Mode 4 commitments/limitations not included.  
 Definitions in accordance with those of Table 4.3.  
Source:  As table above.  WT/REG422/1  
 
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  4.86.  The sectors/sub -sectors that are fully liberalized are computer and related services; 
rental/leasing without operators; distribution services except "other"; libraries and sporting services; 
and certain energy services.  
4.87.  Business services are largely liberalized under the Agreement. In professional services, in 
some instances mode 1 requires association with a local firm. Li beralization of mode 3 is subject to 
reciprocity. The only limitation on R&D is a requirement for a legal representative in Nicaragua for 
the entire duration of R&D in the natural sciences. In other business services, security and scientific 
and technical consulting services remain unbound; UK suppliers of investigation services require 
authorization, which is also required for translation and interpretations services – and granted on 
the basis of reciprocity as regards conditions and requirements. Credit r eporting, duplicating and 
telecommunications consulting services are unbound while other sub -sectors are fully liberalized.  
4.88.  In courier services, the only limitation applying to non -State -reserved services is the 
commercial presence requirement and full jur isdiction of Nicaraguan law. An MFN clause provides 
that any future liberalization in favour of domestic or foreign suppliers deriving from a modification 
of legislation shall be automatically extended to UK suppliers; as of January 2022, there have been 
no legal reforms in the courier services sector. A sector -wide limitation on telecommunication 
services requires a concession for the supply of such services that may be granted to foreign legal 
persons that have a commercial presence in and are fully subje ct to Nicaraguan law.  
4.89.  In construction and related engineering services, only mode 2 has been liberalized; mode 1 
is unbound and mode 3 remains subject to numerous establishment requirements. Somewhat 
similarly mode 2 is liberalized and modes 1 and 3 are un bound for privately funded educational 
services and health and social services.  
4.90.  Environmental services remain largely uncommitted with the exception of "other services" 
(noise and vibration abatement, protection of biodiversity etc) - fully liberalized for  mode 2, but with 
mode 1 liberalization only applying to consulting services. Establishment for these sub -sectors is 
fully liberalized with the exception of "other environmental and ancillary services".  
4.91.  Sector -wide financial services limitations allow Nic aragua to provide (partially or fully) 
preferential treatment to SOEs established with a public interest purpose and require incorporation 
in Nicaragua of foreign financial service suppliers other than banks or insurers. Despite remaining 
subject to variou s other limitations for modes 1 -3, liberalization is improved compared to the GATS 
in particular through sub -sectoral coverage/liberalization commitments for mode 2 and the lifting of 
the general economic needs test.  
4.92.  Tourism services are more restricted th an under the GATS, as their supply requires 
incorporation under Nicaraguan law and commercial presence, which are not specified in the GATS. 
Further, tourist guides must be Nicaraguan nationals under the Agreement but not under the GATS.  
4.93.  Despite numerous limitations under the Agreement in transport services, commitments are 
improved as compared to the GATS (limited to air and rail transport services). In particular 
limitations apply to passenger and cargo transportation, which may require reciprocity, majo rity 
equity and effective control by Nicaraguans, etc. In air transport services commitments are more 
limited than under the GATS for rental of aircraft with crew.  
4.94.  In energy services, there is partial liberalization with mode 1 unbound and mode 2 free, wh ile 
some limitations may apply for mode 3.  
4.4.2.6   Panama  
4.4.2.6.1   MFN and horizontal commitments  
4.95.  The Incorporated Agreement maintains the GATS horizontal limitation on the acquisition of 
land by non -Panamanians in border areas and adds a limitation on land acquisition by  foreign 
governments (except for an embassy). Other horizontal limitations in  Table 4.14 , are also included 
in the Incorporated Agreement. In particular, Panama reserves the right to adopt or maintain any 
measure in relation to the Panama Canal Authority ( PCA), including that a member of its board of 
directors be a Panamanian national. Also new is a horizontal reservation allowing local presence or WT/REG422/1  
 
- 55 - 
 
  financial guarantee requirements necessary to ensure compliance with domestic law and private 
contractual obli gations. The GATS limitation on the percentage of foreign personnel has been lifted.  
Table 4.14 Panama: Horizontal reservations  
Subject  GATS  Agreement  
(1/-) Public utilities – public monopoly or exclusive rights  Market access  E  
(2/2) Panama Canal  None E & CBSS  
(3/-) SOEs  None E 
(4/1) Social services for public purposes  None E & CBSS  
(5/4) Minority Affairs  None E & CBSS  
(6/-) Ownership of land  None E 
(-/3) Local presence  None CBTS  
CBSS  Cross -border supply of services.  
E Establishment.  
MSMEs  Micro, Small and Medium Enterprises.  
Note:  In brackets, the order of the horizontal reservation in Annexes X and XI, respectively.  
Source:  Panama's GATS Draft Consolidated Schedule of Specific Comm itments (S/DCS/W/PAN and its 
Schedules annexed to the Incorporated Agreement.  
 
4.4.2.6.2   Sector specific commitments  
4.96.  The Incorporated Agreement expands significantly Panama's GATS specific commitments both 
in terms of scope and depth for UK suppliers ( Table 4.15 ). 
Table 4.15 Panama: Comparison of specific commitments in the GATS and the 
Incorporated Agreement  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in 
services  Establishment  
1. Business services      
A. Professional  Services  Partial  Improved  Partial  Partial  
B. Computer  and Related  Services  Partial  Improved  Full Full 
C. Research  and Development  Services  --- New Full Full 
D. Real  Estate  Services  --- New Full Partial  
E. Rental/Leasing  Services  without Operators  Partial  Improved  Full Full 
F. Other  Business  Services  Partial  Improved  Partial  Partial  
2. Communication services      
A. Postal  services  --- Same  --- --- 
B. Courier  services  --- New Full Full 
C. Telecommunication  services  Partial  Improved  Partial  Partial  
D. Audiovisual services  Partial  Lower  Excluded  Excluded  
E. Other  --- Same  --- --- 
3. Construction and related engineering services  
All sub -sectors A -E Partial  Improved  Partial  Full 
4. Distribution services      
A. Commission  agents'  services  Full Same  Full Full 
B. Wholesale  trade  services  Full Same  Full Full 
C. Retailing  services  --- New Full Partial  
D. Franchising  Partial  Improved  Partial  Partial  
E. Other  --- Same  --- --- 
5. Education services      
A. Primary education services  Partial  Improved  Full Full 
B. Secondary education services  Partial  Improved  Full Full 
C. Higher education services  Partial  Improved  Full Full 
D. Adult education  --- New Full Full 
E. Other education services  --- Same  --- --- 
6. Environmental services      
Sub-sectors A -B-C --- New Partial  Full 
D. Other  Partial  Improved  Partial  Partial  
7. Financial services      
A. All insurance  and insurance -related  services  Partial  Improved  Partial  Partial  
B. Banking  and other  financial  services  Partial  Improved  Full Full WT/REG422/1  
 
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  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in 
services  Establishment  
8. Health related and social services      
A. Hospital services  Partial  Same  Partial  Full 
B. Other Human Health Services  --- New Partial  Full 
C. Social Services  --- Same  --- --- 
D. Other  --- Same  --- --- 
9. Tourism and travel related services      
A. Hotels  and restaurants (including catering)  Partial  Improved  Full Full 
B. Travel  agencies  and tour operators  services  Partial  Improved  Full Partial  
C. Tourist  guides  services  --- New Full Full 
D. Other  --- Same  --- --- 
10. Recreational and cultural and sporting services  
A. Entertainment  services  Partial  Improved  Partial  Partial  
B. News agency services  --- New Full Partial  
C. Libraries, archives, museums and other 
cultural services  --- New Partial  --- 
D. Sporting and other recreational services  --- New Full Full 
E. Other  --- New Partial  Partial  
11. Transport services      
A. Maritime Transport Servicesa,b --- New Partial  Partial  
B. Internal Waterways Transport --- New Full Full 
C. Air  Transport  Servicesc Partial  Improved  Partial  Partial  
D. Space  Transport  --- Same  --- --- 
E. Rail Transport  Servicesa --- New Full Full 
F. Road  Transport  Services  --- New Partial  Partial  
G. Pipeline  Transport of goods other than fuel --- New Full Full 
H. Services auxiliary to all modes of Transport  --- New Partial  Partial  
I. Other  Transport  Services  --- New Partial  Partial  
12. Other services not included elsewhere  --- New Partial  Partial  
13. Energy services  
A. Services Incidental to Mining  --- New Full Full 
B. Pipeline Transportation of fuels  --- New Full Full 
C. Storage and warehouse services of fuels 
transported through pipelines  --- Same  --- --- 
D. Wholesale trade services of solid, liquid and 
gaseous fuels and related products and 
wholesale trade services of electricity, steam 
and hot water  Full Same  Full Full 
E. Retailing Services of motor fuel  --- New Full Partial  
F. Retail sales of fuel oil, bottled gas, coal and 
wood and retailing services of electricity, (non -
bottled) gas, steam and hot water  --- New Full Partial  
G. Services incidental to energy distribution  --- New Partial  Partial  
Note:  Horizontal reservations and Mode 4 commitments/limitations not included.  
 Definitions in accordance with those of Table 4.3.  
a Contrary to other Central American countries, the public utilities horizontal reservation has not been 
reflected in the sector -specific comm itments except for a footnote. For the sake of comparison, the 
relevant horizontal reservation has thus been incorporated in this table.  
b Cabotage excluded for passenger and freight maritime transport services  
c  On air transport services, Panama's commit ments are included in business services sector 
(subsectors Rental/Leasing Services without Operator and Other Business Services) and in transport 
services sector (subsector Services auxiliary to All Modes of Transport).  
Source:  As table above.  
 
4.97.  The sectors/sub -sectors that are fully liberalized are computer and related services; R&D; 
rental/leasing without operators; courier services; commission agents and wholesale trade services; 
privately funded education services except "oth er"; banking and other financial services; hotels and 
restaurants and tourist guide services; sporting and other recreational services;  internal waterways 
transport and rail transport services; services incidental to mining; pipeline transportation of fuel s 
and other goods; and wholesale trade services of energy.  
4.98.  Under the Agreement, Panama expands the coverage and depth of its commitments in 
business services, in particular by  undertaking commitments in all professional services with mode  2 WT/REG422/1  
 
- 57 - 
 
  fully free, and  modes 1 and 3 requiring a licence for the supply of some services (e.g. engineering, 
veterinary). In other business services, only security services, printing and publishing and official 
translation and interpretation are not fully free.  
4.99.  In construction and related engineering services, and privately funded hospital services and 
other human health services, there are no mode 1 commitments while modes 2 and 3 are liberalized.  
4.100.   In distribution services, Panama is the only Central American Pa rty where franchising is not 
fully liberalized, since it is limited to citizens of Panama. Retail services are subject to a number of 
mode 3 restrictions.  
4.101.   In financial services, commitments are undertaken on all types of insurance, though some 
restriction s apply – insurance companies require authorization to operate in Panama, 
nationality/residence requirements and domestic equity requirements of a minimum of 49%. 
Banking and other financial services are fully liberalized.  
4.102.   Under the Agreement, Panama's GA TS commitments in hotels are improved to also cover 
restaurants and all the sub -sectors of travel agencies, tour operators and tourist guide services. The 
only limitation on tourism restricts travel agency services to nationals.  
4.103.   Transport services are lar gely uncommitted under the GATS. Under the Agreement, there 
are commitments for almost all transport services though for many the horizontal reservation on 
public utilities applies – e.g., use of port services and pushing and towing services. Commitments i n 
air transport services go beyond the Agreement's scope – e.g., it fully liberalizes airport management 
for modes 2 and 3 – and improves GATS commitments by fully liberalizing sales and marketing of 
air transport services and computer reservation systems,  for which there are no GATS commitments.  
4.4.3   Other investment related provisions  
4.104.   Chapter 2 of incorporated Part IV, Title III relates to establishment. While it covers services 
supplied under mode 3 (commercial presence), it may also cover investment -related aspects that 
go beyond trade in services. Incorporated Annex X to the EU -Central America Agreement includes 
non-services sectors (agriculture, hunting and forestry; fishing and aquaculture; mining and 
quarrying and manufacturing). Moreover, Costa Rica adds  to these sectors the production, 
transmission and distribution on own account of electricity, gas, steam and hot water. While 
reservations include measures such as nationality or residency requirements, or time -bound licence 
requirements, incorporated Ann ex X also binds, free of any reservation, establishment for the 
manufacture of certain goods, such as foods and beverage, tobacco products, and textiles  
4.105.   Chapter 2 further clarifies that the Parties remain free to be party to international investment 
agreem ents providing preferential treatment (Article 167) without extending these to its partners 
under the Agreement. Some exceptions to this non -MFN clause have been listed as commitments in 
the Parties' schedules (Costa  Rica, El Salvador, Guatemala, Nicaragua ). Incorporated Article 167 
also specifies that nothing in the Agreement shall be subject, directly or indirectly, to investor -to-
State dispute settlement procedures established in any of these agreements  
4.106.   A rendezvous clause provides for a review of the le gal framework and environment for 
investments, as well as the flow of investment between them at regular intervals (incorporated 
Article 168).  According to the Parties no reviews have taken place.  
4.5  Regulatory provisions  
4.5.1   Domestic regulation  
4.107.   The Agreement in corporates, and replicates, without modification, the provisions of the EU -
Central America Agreement on domestic regulation. Domestic regulation in the sense of GATS Article 
VI in incorporated Article 179 ("Procedures", in Chapter 5 of Part IV, Title III o f the Incorporated 
Agreement) mirrors those of the GATS, with the exception of the GATS built -in agenda for the 
development of further disciplines in this area.  WT/REG422/1  
 
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  4.5.2   Mutual Recognition  
4.108.   The Agreement incorporates, and replicates, without modification, the provis ions of the EU -
Central America Agreement on mutual recognition. It encourages the joint development of 
recommendations on mutual recognition by relevant professional bodies or competent authorities to 
the Association Committee. These recommendations would then be reviewed by the Committee to 
determine whether the Parties' competent authorities should be encouraged to negotiate an 
agreement on mutual recognition of requirements, qualifications, licences and other  regulations with 
a view to implementing that recommendation. Any such agreement shall conform to the relevant 
WTO provisions and in particular GATS Article VII.  
4.5.3   Subsidies  
4.109.   The provisions of incorporated Part IV, Title III shall not apply to subsidies granted by the 
Parties (incorporated Article 159.3) . Under Title XII (Transparency and Administrative Procedures), 
the Parties may, upon request, exchange information on matters related to subsidies in services 
(incorporated Article 344).  
4.5.4   Safeguards  
4.110.   Incorporated Article 349 allows the Parties to adopt or m aintain temporary restrictive 
measures on trade in services which should however be avoided. Any such measures shall be in 
accordance with the provisions of the WTO and of the international Monetary Fund. Any such 
balance -of-payments measures shall be prom ptly notified to the other Party. If consultations are 
requested, they shall take place in the Association Committee.  
4.5.5   Other  
4.5.5.1   Cooperation  
4.111.   The Parties agree to promote mutual cooperation and technical assistance initiatives on 
issues related to establishment , trade in services, and e -commerce identified under Title VI of 
Part III of the EU -Central America Agreement  
4.5.5.2   Transparency  and disclosure of confidential information  
4.112.   The Agreement incorporates, and replicates, without modification, the provisions of the EU -
Central America on transparency and disclosure of confidential information. A Party shall promptly 
reply to all requests by the other Party for specific information on any of its measures of general 
application or international agreements which pertain to  or affect issues under Part IV, Title III of 
the Incorporated Agreement (incorporated Article 178). Each Party shall designate an enquiry point. 
The Parties remain free not to disclose confidential information.  
4.6  Sector specific provisions on trade in servi ces 
4.6.1   Computer services  
4.113.   The Agreement incorporates, and replicates, without modification, the understanding in the 
EU-Central America Agreement on computer services. To the extent that there are commitments on 
trade in computer services the Parties agree to a common understanding of the coverage of CPC 84 
(the UN code for describing computer and related services).  
4.6.2   Courier services  
4.114.   The Agreement incorporates, and replicates, without modification, the provisions in Section 
C, Part IV, Title III of the Incorporated Agreement on courier services, as far as there are 
commitments by the Parties. Incorporated Article 182 requests the Parti es to introduce or maintain 
appropriate measures for the prevention of anti -competitive practices in the courier sector. 
Incorporated Article 183 requires that licensing criteria, timeframe for the application's analysis and 
the terms and conditions of lic ences be made publicly available, that the reasons for denying a 
licence be made known to the applicant upon request, and that a right to recourse is guaranteed. WT/REG422/1  
 
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  Under incorporated Article 184 the Parties agree that their regulatory bodies shall be indepen dent 
from any supplier of courier services and be impartial for all market participants.  
4.6.3   Telecommunication services39 
4.115.   The Agreement incorporates, and replicates, without modification, additional provisions in 
Section D, Part IV, Title III of the Incorporated Agreement on telecommunications services. As in 
the GATS, broadcasting of radio and television programmes - covering both wireless and wired 
(cable) – are excluded from the Chapter's scope. It sets out the principles of the regulatory 
framewor k for public telecommunications services, other than broadcasting, in accordance with 
Chapters 2, 3 and 4 of Part IV, Title III of the Incorporated Agreement, which include voice telephone 
services, packet -switched data transmission services, circuit -switched data transmission services, 
telex services, telegraph services, facsimile services, private leased circuit services and mobile and 
personal communications services and systems.  
4.116.   Incorporated Articles 185 -193 build upon the GATS and its Annex on Telecomm unications 
as well as the WTO Reference Paper, to whose regulatory principles only the UK, El Salvador and 
Guatemala have committed. Overall, the provisions of Section D extend the Reference Paper's 
disciplines to the other four Central American Parties. T hat includes committing them, in particular, 
to new disciplines on interconnection; prevention of anti -competitive practices of major suppliers of 
public telecommunications networks and services; ensuring that enterprises have access to Parties' 
regulatory  bodies in order to resolve disputes with other enterprises; allocation and use of scarce 
resources; and universal service. The disciplines on interconnection mirror those of the GATS 
Reference Paper. While suppliers of commercial mobile services and rural  telecommunications 
services are not subject to these disciplines40, the Parties are free to do so for suppliers of commercial 
mobile services.  
4.117.   Under incorporated Article 193 disputes between telecommunications suppliers on 
safeguards and interconnection ( incorporated Articles 188 and 189), binding decisions shall be 
issued  to resolve the dispute in the shortest possible time frame  by the  relevant regulatory authority, 
at the request of either supplier and, in accordance with the procedures established in t he respective 
legislation.  
4.6.4   Financial services  
4.118.   The Agreement incorporates, and replicates, without modification, the provisions of the EU -
Central America Agreement on financial services.  
4.119.   The disciplines and definitions on financial services in Section E of Part IV, Title III, Chapter 
5 of the Incorporated Agreement build upon those of the GATS and its Annex on Financial Services. 
In particular, it extends to Central American Parties, some of the provisions included in the Uruguay 
Round GATS Understanding (ap plying to the UK but not the Central American Parties) including for 
new financial services and data processing of financial information.  
4.120.   The new provisions extend prudential carve -outs to the maintenance of the safety, 
soundness, integrity or financial re sponsibility of financial services suppliers (incorporated Article 
195:1(b)). Improved transparency is foreseen for best endeavour measures to be adopted on 
requirements associated with applications for suppling a service. A best endeavour clause also invi tes 
the Parties to use internationally agreed standards for regulation and supervision in the financial 
services sector, to address the fight against money laundering or other assets, terrorism financing, 
as well as tax evasion and tax avoidance.  
 
39 Under the incorporated Agreement, "telecommunications services" mean all services consisting of the 
transmission a nd reception of electro -magnetic signals through telecommunications networks and do not cover 
the economic activity consisting of the provision of content which requires telecommunications networks or 
services for its transport.  
40 Paragraphs 3, 4 and 5, do  not apply with respect to suppliers of commercial mobile services, nor rural 
telecommunications services suppliers. For greater certainty, nothing in this Article shall be construed to 
preclude a Party from imposing the requirements set out in this Articl e on suppliers of commercial mobile 
services (footnote 2 to incorporated Article 189).  WT/REG422/1  
 
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  4.121.   The list  of specific exceptions to financial services (incorporated Article 199) are also in line 
with those in the GATS and its Annex on Financial Services.41  
4.6.5   International maritime services  
4.122.   The Agreement incorporates, and replicates, without modification, the p rovisions of the EU -
Central America Agreement on international maritime transport services.  
4.123.   Section F of Part IV, Title III, Chapter 5 of the Incorporated Agreement sets out the scope, 
definitions and principles regardin g the respective Annexes of commitme nts (incorporated 
Article  200).  
4.124.   The Agreement builds on GATS provisions for international maritime services. For instance, 
it provides unrestricted access to international maritime markets and trade routes on a commercial 
and non -discriminatory basis. It also grants national treatment to ships flying the flag, or operated 
by service suppliers, of the other Party for access to ports (including infrastructure and auxiliary 
services), fees and charges, customs facilities, and the assignment of berths and faci lities for loading 
and unloading. New cargo -sharing arrangements in future bilateral agreements with third parties 
are prohibited while existing arrangements are to be terminated within a reasonable period of time. 
Measures that are discriminatory and whic h constitute a disguised restriction on trade, subject to 
commitments and limitations in the respective Annexes are also prohibited. The right of 
establishment for the other Party's service suppliers is provided for in incorporated Article  165. Non -
discrim ination shall also be ensured as regards the offer on port services.  
5  GENERAL PROVISIONS OF THE AGREEMENT  
5.1  Transparency  
5.1.  The Agreement incorporates, and replicates, the specific provisions of the EU -Central America 
Agreement on transparency on publication, co ntact points and exchange of information, 
administrative proceedings and review and appeal mechanisms; and transparency in subsidies. With 
the exception of the latter, they largely replicate WTO provisions. The Incorporated Agreement also 
establishes speci fic transparency requirements in a number of Titles or Chapters.  
5.2  Current payments and capital movements  
5.2.  The Agreement incorporates, and replicates, without modification, the provisions of the EU -
Central America Agreement on current payments and capital mov ements. The Parties shall aim to 
liberalize current payments and capital movements between them (incorporated Article 204) and 
permit all payments and transfers on the current account in accordance with Articles of the IMF 
(incorporated Article 205). They shall also allow or ensure the free movement of capital relating to 
FDI in accordance with the provisions of Part IV, Title III of the Incorporated Agreement, as well as 
the liquidation and repatriation of these investments and of any profit stemming there from 
(incorporated Article 206). Time -bound restrictions are however possible when payments and capital 
movements cause or threaten to cause serious difficulties for the operation of exchange rate or 
monetary policy. These restrictions can be applied for o ne year; under extremely exceptional 
circumstances they can be reintroduced following coordination with the other Party.  
5.3.  Incorporated Article 349 allows the Parties to adopt or maintain temporary restrictive measures 
on current payments; these should howev er be avoided. Any such measures shall be in accordance 
with the provisions of the WTO and of the IMF. Any such balance -of-payments measures shall be 
promptly notified to the other Party  and a time schedule for their removal must be presented as 
soon as po ssible . If consultations are requested, they shall take place in the Association Committee.  
5.4.  The Parties agree to consult each other with a view  to facilitating the movement of capital 
between them in order to promote the objective of the Agreement (incorp orated Article 208).  
 
41 Article XIV(c)(i) and Annex on Financial Services list exceptions for prudential reasons; monetary, 
credit and exchange rate policies; and for prevention of deceptive and fraudulent practices. These exceptions 
are with respect to different Chapters, including Chapters 9, 11, 13 and 14.  WT/REG422/1  
 
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  5.3  Exceptions  
5.5.  The Agreement incorporates, and replicates, without modification, the provisions of the EU -
Central America Agreement on exceptions. Incorporated Article 350 contains a number of exceptions 
related to taxation measures, while incorporated Article 357 contai ns a security exception. In 
addition, incorporated Articles 195 contain exceptions related to financial services, in particular 
measures maintained or introduced for prudential reasons.  
5.3.1   General exceptions  
5.6.  Incorporated Article 158 makes Article XX of the GATT 1994 part of the Agreement. The Parties 
also confirm GATT XX(b) 's applicability to environmental measures necessary to protect human, 
animal, or plant life or he alth and GATT XX(g) 's applicability to me asure  relating to the conservation 
of living and non -living exhaustible natural resources.  It provide s for an information/examination 
mechanism to be activated upon request in cases of export restrictions imposed on short supply 
grounds. Exceptions applyin g to trade in services equivalent to those under GATS Article XIV are 
included in incorporated Article 203.  
5.3.2   Security exceptions  
5.7.  Incorporated Article 357 contains security exceptions modelled on Articles XXI of the GATT and 
XIV bis of the GATS. Further, it carves out from the Incorporated Agreement government 
procurement indispensable for national security or for national defence purposes and makes clear 
that a Party is free to decide on budgetary priorities  
5.3.3   Balance -of-payments safeguards  
5.8.  Incorporated Articl e 349 allows the Parties to adopt or maintain temporary restrictive measures 
(which should be avoided) on trade in goods. Any such measures shall be in accordance with WTO 
and International Monetary Fund provisions. The measures shall be promptly notified to the other 
Party. If consultations are requested, they shall take place in the Association Committee.  
5.3.4   Taxation  
5.9.  The Parties may distinguish between taxpayers who are not in the same situation, in particular 
with regard to their place of residence or wher e their capital is invested. Measures aimed at 
preventing the avoidance or evasion of taxes in the context of agreements to avoid double taxation, 
other tax arrangements or domestic tax law may be taken by a Party. Moreover, the rights and 
obligations of t he Parties under any tax agreement remain reserved. In the event of any 
inconsistency between the provisions on trade of the Incorporated Agreement and any such 
agreement, the latter shall prevail to the extent of the inconsistency (Incorporated Article 35 0). 
5.4  Accession and withdrawal  
5.10.  Accessions to the Agreement may take place in the context of accession to the Central 
American integration process. The Association Committee is to be informed of a request for 
accession. The Parties shall exchange relevant inf ormation and take into account views provided 
(incorporated Article 359). The effect of any such accession shall be examined in the Association 
Committee, which shall decide on any necessary adjustment or transition measures.  
5.11.  Article 10 (paragraph 4) clar ifies that a Party may terminate the application of the Agreement 
(or provisions of it), by written notice, with termination taking effect on the first day of the second 
month following the date of the notification.  WT/REG422/1  
 
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  5.5  Institutional framework  
5.12.  The Agreement in corporates, and replicates, with minor modifications42, the institutional 
framework of the EU -Central America Agreement. Article 8 introduces further provisions in relation 
to the Association Council and Association Committee, to ensure that the Agreement operates 
properly  and the incorporation mutatis mutandis  of applicable decisions taken before the signature 
of the Agreement by the Association Council or Association Committee under  the EU -Central America 
Agreement . 
5.13.  The Agreement's institutional framework is in incorporated Part I, Title II. Its governing body 
is the Association Council which is assisted by the Association Committee (incorporated Article 7). 
The Association Committee is responsible for the general imp lementation of the Agreement; 
Decisions and recommendations are taken by mutual agreement between the Parties; consensus is 
required among the Central American Parties. If empowered by the Association Council, the 
Association Committee can take decisions o n its behalf. The Association Committee meets at least 
once a year in sessions dealing with Part  IV of the Incorporated Agreement (incorporated Article 
346). Other Sub -Committees established under the Agreement have been referred to elsewhere in 
this Factu al Presentation.  
5.6  Dispute settlement  
5.14.  The Agreement incorporates, and replicates, without modification, the provisions of the EU -
Central America Agreement on dispute settlement under Title X, concerning the interpretation or 
application of Part IV (on trade)  of the Incorporated Agreement. In addition , there is a mediation 
mechanism for non -tariff measures under Title XI of Part IV of the Incorporated Agreement.  
5.15.  Disputes may concern the interpretation or application of the provisions on trade, except as 
other wise expressly provided (incorporated Article 309.1). Non -violation complaints are not covered. 
Dispute settlement cannot be invoked for matters related to anti -dumping and countervailing 
measures; multilateral/global safeguards; final decisions issued by a national or regional competent 
authority regarding the registration or protection of a geographical indication; trade and competition; 
trade and sustainable development; commitments on regional integration assumed by a Central 
American Party; transparenc y in subsidies; and the Protocol on Cultural Cooperation.  
5.16.  Consultations and panel procedures may be initiated by or brought against a single or more 
Central American Party(ies), depending on if the alleged violation is similar in all relevant legal and 
factual aspects.  The Parties may agree that the  Panel suspend s its work for a period not exceeding 
12 months.43 In addition, termination of proceedings is possible at any time if the Parties find a 
mutually satisfactory solution to the dispute (incorporated A rticle 324).  
5.17.  Forum shopping is provided for in incorporated Article 326, with the forum deemed to have 
been selected upon the request to establish a Panel under the Incorporated Agreement, or, upon 
the establishment of the Panel in the WTO.   
5.18.  The Panel ruli ng shall be issued within 120 days from its establishment (60 days in cases of 
urgency) or extended to 150 days (unless exceptional circumstances apply) (incorporated Article 
313). Panel recommendations shall be implemented without undue delay although a r easonable 
period of time may be granted, either by mutual agreement or by determination of the Panel. In 
case of disagreement between the disputing Parties regarding the implementation of the ruling, the 
original Panel shall rule on the matter and notify i ts ruling within 45 days of the submission of the 
written request by the complaining Party (incorporated Article 316).  
 
42 For instance, the maximum time between two meetings of the Association Council at ministerial level 
goes from two years to four years,  and the establishment of an Association Parliamentary Committee is left up 
to the Parties. Unlike under the EU -Central America Agreement, the Agreement does not establish a Joint 
Consultative Committee as a consultative body of the Association Council.  
43 The terms of reference of the Panel shall lapse if the Panel procedure had been suspended for more 
than twelve months (without prejudice to the complaining Party's right to request consultations and the 
establishment of a Panel on the same matter at a lat er stage), unless the suspension is the result of attempts 
in good faith at reaching a mutually satisfactory solution pursuant to Article 324 of the Incorporated Agreement 
(incorporated Article 327.3).  WT/REG422/1  
 
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  5.19.  Failure to comply with the Panel ruling opens the door to compensation to be mutually agreed. 
Should no compensatory agreement be found, the affected Party may suspend obligations 
temporarily  until compliance is restored, or the dispute is otherwise settled. The UK shall endeavour 
to exercise appropriate moderation in suspending benefits, taking into consideration, the likely 
impact on the economy and level of development of the Party complained against, and opt for 
measures conducive to bringing the Party complained against into compliance, and least likely to 
adversely affect the attainment of the objectives of the Incorporated Agreement.  
5.20.  The level of suspension of obligations may be challenged by the Party complained against by 
submitting a written request to the original Panel to rule on the matter.  The original Panel will issue 
its report within 30 days of the date of the submission of the written request  (or 45 days where the 
original Panel, or some of its members are unable to reconvene ). Panel rulings may not be appealed.  
5.21.  The Mediation Mechanism for Non -tariff Measures, which applies in cases where these 
measures advers ely affect trade between the Parties under Part IV of the Incorporated Agreement, 
applies bilaterally between the UK, and each of the Central American Parties. It is confidential and 
does not apply to matters arising under the rules on trade and sustainabl e development, regional 
economic integration, integration process of the Central American Parties, matters in which dispute 
settlement procedures have been excluded, and provisions of an institutional nature. The Mediation 
Mechanism provides for the select ion of a Mediator and for the implementation of a mutually agreed 
solution. The procedure shall normally be completed within 60 days from the date of the appointment 
of the Mediator. It may be discontinued at any stage by mutual agreement between the Parti es. It 
does not exclude recourse to the dispute settlement mechanism.  
5.7  Relationship with other agreements concluded by the parties  
5.22.  The Agreement is based on the EU -Central America Agreement and, as indicated above, it 
incorporates most of its provisions. In addition, in the Preamble of the Incorporated Agreement and 
in incorporated Article 77, the Parties affirm their rights and obligations with respect to each other 
under the WTO Agreement and other agreements to which they are party.  
5.23.  Table 5. 1 below shows the Parties' RTAs in force, notified and non -notified, other than the 
Agreement.  
Table 5.1 The United Kingdom and Central America: Participation in other RTAs (notified 
and non -notified in force), as  of as of 23 May 2023   
RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year  WTO Provision  
UNITED KINGDOM  
United Kingdom – Iceland, Liechtenstein 
and Norway  01-Dec-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
 
United Kingdom – Mexico  01-Jun-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Serbia  20-May-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Albania  03-May-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Jordan  01-May-21 Goods  2021 GATT Art. XXIV  
United Kingdom - Ghana  05-Mar-21 Goods  2021 GATT Art. XXIV  
EU – United Kingdom  01-Jan-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
United Kingdom - Cameroon  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Canada  01-Jan-21 
01-Apr-21 Goods  
Services  2020 
2021 GATT Art. XXIV  
GATS Art. V  
United Kingdom - CARIFORUM States  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Chile 01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom – Colombia, Ecuador 
and Peru  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Côte d'Ivoire  01-Jan-21 Goods  2020 GATT Art. XXIV  WT/REG422/1  
 
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  RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year  WTO Provision  
United Kingdom - Eastern and Southern 
Africa States  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Egypt  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Faroe Islands  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Georgia  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Israel  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Japan  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Kenya  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Kosovob 01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Lebanon  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Morocco  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - North Macedonia  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Pacific States  01-Jan-21 Goods  2020 GATT Art. XXIV  
• United Kingdom - Pacific States - 
Accession of Samoa  01-Jan-21 Goods  2020 GATT Art. XXIV  
• United Kingdom - Pacific States - 
Accession of Solomon Islands  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Palestine  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Republic of Korea  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Republic of Moldova  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - SACU and Mozambique  01-Jan-21 Goods  2021 GATT Art. XXIV  
United Kingdom – Singapore  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Switzerland - 
Liechtenstein  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Tunisia  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Türkiye  01-Jan-21 Goods  2020 GATT Art. XXIV  
United Kingdom - Ukraine  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
United Kingdom - Viet Nam  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
CENTRAL AMERICA - COLLECTIVELY  
Republic of Korea - Central America  
(all CACM Member States, except 
Guatemala)  01-Oct-19c Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
EFTA - Central America  
(Costa Rica and Panama)  19-Aug-14d Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
EU – Central America  
(all CACM Member States)  01-Aug-13e Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
Mexico - Central America  
(all CACM Member States, except 
Panama)  01-Sep-12f Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
Dominican Republic - Central America - 
United States Free Trade Agreement 
(CAFTA -DR) 
(all CACM Member States, except 
Panama)  01-Mar-06g Goods & 
Services  2006 GATT Art. XXIV & GATS Art. V  
Panama - Central America  11-Apr-03h Goods & 
Services  2005 GATT Art. XXIV & GATS Art. V  
Chile - Central America  
(all CACM Member states, except Panama)  15-Feb-02i Goods & 
Services  2002 GATT Art. XXIV & GATS Art. V  
Dominican Republic - Central America  
(all CACM Member States, except 
Panama)  04-Oct-01j Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Central American Common Market 
(CACM)  04-Jun-61 Goods  1961 GATT Art. XXIV  
• CACM - Accession of Panama  06-May-13 Goods  2017 GATT Art. XXIV  WT/REG422/1  
 
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  RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year  WTO Provision  
Treaty on Investment and Trade in  
Services (TICS)  
(El Salvador, Guatemala and Honduras)  20-07-08k Services   Not notified   
COSTA RICA  
Costa Rica - Colombia  01-Aug-16 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Costa Rica - Singapore  01-Jul-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
Costa Rica - Peru 01-Jun-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
China - Costa Rica  01-Aug-11 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Canada - Costa Rica  01-Nov-02 Goods  2003 GATT Art. XXIV  
Costa Rica - Bolivarian Republic of 
Venezuela  
[LAIA, AAP.A25 TM 26]  09-Jul-86 Goods  2020 Enabling Clause - Changes to LAIA 
TM 80  
CARICOM - Costa Rica  15-Nov-05 Goods  Not notified  
EL SALVADOR  
El Salvador - Ecuador  16-Nov-17 Goods  2018 Enabling Clause  
El Salvador - Cuba 01-Aug-12 Goods  2013 Enabling Clause  
Colombia - Northern Triangle (El 
Salvador, Guatemala, Honduras)  01-Feb-10 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
GUATEMALA  
Ecuador - Guatemala  
[LAIA, AAP.A25 TM 42]  19-Feb-13 Goods  2020 Enabling Clause - Changes to 
LAIA TM 80  
Colombia - Northern Triangle (El 
Salvador, Guatemala, Honduras)  12-Nov-09 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Guatemala - Chinese Taipei  01-Jul-06 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
Guatemala – Cuba 
[LAIA, AAP.A25 TM 36]  12-Apr-00 Goods  2020 Enabling Clause - Changes to 
LAIA TM 80  
Mexico – Guatemala  
[LAIA, AAP.A25 TM 37]  05-Dec-00 Goods  
 
Services  2020  Enabling Clause - Changes to 
LAIA TM 80  
Not notified  
Guatemala - Bolivarian Republic of 
Venezuela  
[LAIA, AAP.A25 TM 23]  06-Feb-86 Goods  2020 Enabling Clause - Changes to 
LAIA TM 80  
Belize - Guatemala  04-Apr-10 Goods  Not notified  
HONDURAS  
Peru - Honduras  01-Jan-17 Goods & 
Services  2018 GATT Art. XXIV & GATS Art. V  
Canada - Honduras  01-Oct-14 Goods & 
Services  2015 GATT Art. XXIV & GATS Art. V  
Colombia - Northern Triangle (El 
Salvador, Guatemala, Honduras)  27-Mar-10 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Honduras - Chinese Taipei  15-Jul-08 Goods & 
Services  2010 GATT Art. XXIV & GATS Art. V  
Honduras - Bolivarian Republic of 
Venezuela  
[LAIA, AAP.A25 TM 16]  14-May-86 Goods  2020 Enabling Clause - Changes to LAIA 
TM 80  
NICARAGUA  
Ecuador - Nicaragua  
[LAIA, AAP.A25 TM 45]  19-Nov-17 Goods  2022 Enabling Clause - Changes to LAIA 
TM 80  
Cuba – Nicaragua  
[LAIA, AAP.A25 TM 44]  09-Oct-14 Goods  2022 Enabling Clause - Changes to LAIA 
TM 80  
Plurinational State of Bolivia, Cuba, 
Nicaragua and Bolivarian Republic of 
Venezuela  
[LAIA, AAP.CE 70]  30-Jan-14 Goods  2020 Enabling Clause - Changes to LAIA 
TM 80  
Nicaragua - Bolivarian Republic of 
Venezuela  
[LAIA, AAP.A25 TM 25]  26-Feb-92 Goods  2020 Enabling Clause - Changes to LAIA 
TM 80  
Global System of Trade Preferences 
among Developing Countries (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  WT/REG422/1  
 
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  RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year  WTO Provision  
Colombia – Nicaragua  
[LAIA, AAP.A25 TM 6]  02-Sep-85 Goods  2020 Enabling Clause - Changes to LAIA 
TM 80  
PANAMA  
Mexico - Panama  01-Jul-15 Goods & 
Services  2016 GATT Art. XXIV & GATS Art. V  
Canada - Panama  01-Apr-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
United States - Panama  31-Oct-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Panama - Peru 01-May-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Panama – Cuba 
[LAIA, AAP.CE 71]  20-Aug-09 Goods  2020 Enabling Clause - Changes to LAIA 
TM 80  
Panama - Chile 07-Mar-08 Goods & 
Services  2008 GATT Art. XXIV & GATS Art. V  
Panama - Singapore  24-Jul-06 Goods & 
Services  2007 GATT Art. XXIV & GATS Art. V  
Panama - Chinese Taipei  01-Jan-04 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
Colombia – Panama  
[LAIA, AAP.A25 TM 29]  01-Jan-95 Goods  2020 Enabling Clause - Changes to LAIA 
TM 80  
Panama - Dominican Republic  08-Jun-87 Goods  2016 Enabling Clause  
Panama - Israel  01-Jan-20 Goods & 
Services  Not notified  
Panama - Trinidad and Tobago  04-Jul-16 Goods  Not notified  
LAIA - Accession of Panama  03-May-12 Goods  Not notified  
a Dates of the first entry into force/provisional application for at least one of the Parties.  
b Reference to Kosovo in this table shall be understood to be in the context of the United Nations 
Security Council resolution 1244 (1999).   
c Dates of entry into force: Honduras, Nicaragua: 01 Oct 19; Costa Rica: 01 Nov 19; El Salvador: 01 
Jan 20; Panama: 01 Mar 21.  
d Dates of entry into force: Costa Rica, Panama and Norway: 19 Aug 14; Costa Rica, Panama, 
Liechtenstein and Switzerland: 29 Aug 14; Costa Rica, P anama and Iceland: 5 Sept 14.  
e Dates of entry into force: EU, Honduras, Nicaragua and Panama: 1 Aug 13; Costa Rica and El 
Salvador: 1 Oct 13; Guatemala: 1 Dec 13.  
f Dates of entry into force: El Salvador, Nicaragua: 01 Sep 12; Honduras: 01 Jan 13; Costa R ica: 01 
Jul 13; Guatemala: 01 Sept 13.  
g  Dates of entry into force: El Salvador, the United States: 01 Mar 06; Honduras, Nicaragua: 01 Apr 
06; Guatemala: 01 Jul 06; the Dominican Republic: 01 Mar 07; Costa Rica: 01 Jan 09.  
h The bilateral Protocols to the  Free Trade Agreement between Panama and Central America have 
been notified to the WTO separately. Dates of entry in force: El Salvador: 11 Apr 03; Costa Rica: 23 
Nov 08; Honduras: 09 Jan 09; Guatemala: 20 Jun 09; Nicaragua: 21 Nov 09.  
i  The bilateral Pro tocols to the Free Trade Agreement between Chile and Central America have been 
notified to the WTO separately. Dates of entry in force: Costa Rica: 15 Feb 02; El Salvador: 01 Jun 
02; Honduras: 19 Jul 08; Guatemala: 23 Mar 10; Nicaragua: 19 Oct 12.  
j Dates of entry into force: El Salvador: 4 Oct 01; Guatemala: 15 Oct 01; Honduras: 19 Dec 01; Costa 
Rica: 7 Mar 02; Nicaragua: 3 Sep 02.  
k Date of entry into force of the Protocol that modifies the TICS. El Salvador, Honduras: 20 -Jul-08, 
Guatemala: 31 -Mar-10. 
Note: The LAIA reference is indicated in brackets for some RTAs notified as a change to LAIA's TM 80. 
Further details can be found at: http://aladi.org .  
Source:  WTO Secretariat. Further information including on dates of entry  into force/provisional application 
may be found in the WTO Database on RTAs: http://rtais.wto.org . WT/REG422/1  
 
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  5.8  Government procurement  
5.24.  The Agreement incorporates, and replicates, with some modifications44, the provisions of the 
EU-Central America Agreement on government procurement. The incorporated Annex XVI to the 
EU-Central America Agreement, contains the Parties' commitments on covered entities and 
thresholds.  
5.25.  Among the Parties, only the UK is a signatory to the WTO Government Procurement 
Agreement (GPA); Costa Rica and Panama are observers. The Parties' thresholds generally reflect 
those of the UK under the GPA and are SDR 130,000 for goods and services and SDR 5 million for 
construction services for Central Entities; the thresholds are higher for goods and services for sub -
central entities at SDR 355,00  (compared to SDR 200,000 under the GPA)  and SDR 5 million for 
construction services for sub -central entities. Thresholds for other entities range from SDR 200,000 
to SD R 400,000 for goods and services, and SDR 5 million (to SDR 7 million for Panama) for 
construction services.  
5.26.  Government procurement provisions, addressed in Part III, Title V of the Incorporated 
Agreement, are largely based on UK provisions under the WTO G PA, with some adjustments.  
5.27.  The scope of Part III, Title V of the Incorporated Agreement is defined in incorporated 
Article  210. It includes procurement by government entities (central, sub -central and others), listed 
in the Parties' Schedules included in Appendix 1 to the incorporated Annex XVI, of goods, services 
or any combination thereof.  
5.9  Intellectual property rights  
5.28.  The Agreement incorporates, and replicates, with some modifications45, the provisions of the 
EU-Central America Agreement on intellectual  property.  
5.29.  Part IV, Title VI of the Incorporated Agreement covers intellectual property, and ensure s 
adequate and effective implementation of international treaties  on intellectual property to which the  
Parties are party , including the  WTO Agreement on Tra de Related Aspects of Intellectual Property 
Rights (TRIPS).  
5.30.  MFN and national treatment are provided for in accordance with the relevant TRIPS provisions 
(incorporated Article 230). The Parties are free to establish their own regimes on the exhaustion of 
intellectual property rights, subject to the provisions of the TRIPS Agreement (incorporated 
Article  232).  
5.31.  Transfer of technology provisions (incorporated Article 231) allow the Parties to  take 
appropriate measures to prevent or control licensing practices  or conditions pertaining to intellectual 
property rights which may adversely affect the international transfer of technology and that 
constitute an abuse of intellectual property rights by right holders or of obvious asymmetries of 
information in the nego tiation of licences. The exchange of experiences and information on transfer 
of technology is encouraged; areas for such cooperation are identified in incorporated Article 55.  
5.32.  The protection granted under the Agreement to all types of intellectual proper ty rights, 
including any exceptions that might be provided for, mirror those of the TRIPS Agreement. However, 
some disciplines differ from TRIPS or are new, as summarized below.  
5.33.  On copyright and related rights  (incorporated Articles 233 -237), the Parties shall comply with 
a number of international treaties46. Authors' rights shall be  protected  for 70 years . (50 years under 
the TRIPS Agreement) . In terms of the collective management of rights, the Parties recognise the 
 
44 In Appendix I of Annex XVI to the Incorporated Agree ment, institutions relating to specific countries 
which are not part of the Agreement or to the EU shall not be incorporated into the Agreement.  
45 Annex XVII to the Incorporated Agreement is replaced.  
46 The International Convention for the Protection of P erformers, Producers of Phonograms and Broadcasting 
Organisations (Rome, 1961) (Rome Convention); the Berne Convention for the Protection of Literary and Artistic 
Works (1886, lastly amended in 1979) (Berne Convention); the World Intellectual Property Orga nisation 
Copyright Treaty (Geneva, 1996) (WCT); and  the World Intellectual Property Organisation Performances and 
Phonograms Treaty (Geneva, 1996) (WPPT).  WT/REG422/1  
 
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  importance  of the collecting societies, and the establishment of  arrangements between  them. The 
Agreement provides performers and producers of phonograms with a single equitable remuneration 
right for the broadcasting and communication to the public of their phonograms  published for 
commercial purposes. In the absence of an agreement between performers and producers of 
phonograms, the Parties may establish the conditions under which  such remuneration is to be shared 
between the two categories of right holders . 
5.34.  On trademarks (incorporated Articles 238 -241), disciplines address registration procedures, 
and the Agreement makes clear that the provision on well -known trademarks may apply to 
unregistered well known trademarks.  
5.35.  On geographical indications (GIs) (incorporated Articles 244 -250), the Parties shall maintain 
systems for the protection of GIs in their legislation . GIs listed in incorporated Annex XVII shall be 
processed according  to the applicable procedures of the UK, once such an application for protection 
has been submitted. Protected GIs are included in the Annex XVIII to the Incorporated Agreement, 
as modified47, in accordance with incorporated Articles 246 and 247. Following  successful 
examination, a dditional GIs  for wines, spirits, agricultural products and foodstuffs  shall be included  
in the incorporated Annex XVII I to the Incorporated Agreement, as modified48. The Agreement 's 
dispute settlement does not apply to the registration or protection of a GI (incorporated Article 250).  
5.36.  On industrial designs (incorporated Articles 251 -257), the Agreement is more specific on 
requirements for protection, rights conferred and invalidity  or refusal of registration. The duration 
of protection  shall be at least  10 years a s under the TRIPS Agreement , and may be renewed for one 
or more periods of five years each, up to the maximum term of protection established in each Party's 
legislation; if  unregistered designs are protected, the duration shall be at least three years. The 
Agreement makes clear that a design protected by a design right and registered in a Party may also 
be copyright -protected.  
5.37.  On patents,  under incorporated  Article 258 the Parties shall comply with the Budapest Treaty 
on the International Recognition of the Deposit of Micro -Organisms for the Purposes of Patent 
Procedure. A best endeavour clause invites the UK to comply with the Patent Law Treaty while 
Central American Partie s shall make reasonable efforts to ratify or accede to it. The Parties are to 
protect plant varieties by patents or by an effective sui generis system or by any combination thereof 
(incorporated Article 259) , mirroring  Article  27.3(b) of the TRIPS Agreemen t.49 Exceptions to plant 
breeders' exclusive rights are allowed.   
5.38.  The Agreement's dispute settlement does not apply to the registration or protection of a GI 
(incorporated Article 250).  Any claim against the protection of a geographical indication shall be 
brought before the available judicial instances established in accordance with the national legislation 
of each Party.  
5.39.  The provisions on enforcement of intellectual property rights (in corporated Article s 260-273), 
complement the TRIPS Agreement. Under the Incorporated Agreement, enforcement measures, 
procedures and remedies shall be fair, proportionate and equitable. The right to recourse to 
enforcement provisions is extended to federat ions and associations as well as exclusive licensees 
and other duly authorized licensees , and provisional measures for preserving relevant evidence  
about  any alleged infringement  are specified. P rovisional and p recautionary measures are authorized 
and both  provisional and precautionary measure shall be executed expeditiously. Corrective 
measures are further specified (incorporated Article 266) and there is a provision regarding 
 
47 The geographical indication (GI) for Irish Cream covers liqueur produced in the territory of Irelan d 
and Northern Ireland. This shall not be deemed to modify any existing rights in relation to such GIs protected 
in each of the Central American Republics. The same approach is taken for Irish whiskey/ Uisce Beathe 
Eireannach/Irish whisky/whiskey produced on the territory of Ireland and Northern Ireland. Other GIs, listed in 
Part A of Annex XVIII to the Incorporated Agreement, relating to specific countries which are not part of the 
Agreement shall not be incorporated into the Agreement.  
48 Annex XVII to the EU -Central America Agreement is replaced by a shorter list covering  coffee and 
cheese  for Nicaragua.  
49 The UK has implemented this obligation when it was a member state of the EU and has maintained 
them since. Costa Rica grants protectio n to plant varieties through a sui generis system, according to Law 
8631 Protection of Plan Varieties. F or El Salvador, protection is granted through patents under the Intellectual 
Property Law and for Guatemala under  Decree 57 -2000, Law of Industrial Prop erty. Honduras indicates the 
corresponding law is in force.  WT/REG422/1  
 
- 69 - 
 
  "presumption of ownership" in incorporated Article 270. The scope of border meas ures relating to 
the importation of counterfeit trademark and pirated copyright goods cover s their importation , 
exportation, re -exportation, entry into or exit from the customs territory and the placement under 
a suspensive procedure or placement under a f ree zone or a free warehouse of goods infringing 
trademarks , or copyrights . The rights and duties of importers under Section 4 of Part III of the TRIPS 
Agreement are accordingly extended to the exporter or the holder of the goods. Further, Parties 
shall pr ovide that their competent authorities may initiate border measures ex officio  in the cases of 
import, export and transit.  Article 272 limits the liabilities of services providers as currently foreseen 
in the Parties' national legislation.   
5.40.  A Sub -Committee  on Intellectual Property is established (incorporated Article 274).  
5.10  Competition  
5.41.  The Agreement incorporates, and replicates, with minor modifications, the provisions of the 
EU-Central America Agreement on trade and competition. The provisions in Part IV, T itle VII of the 
Incorporated Agreement (incorporated Articles 277 -283) require the Parties to adopt or maintain 
and enforce competition laws which effectively address anticompetitive practices, and to establish 
or maintain competition authorities designate d and appropriately equipped for the transparent and 
effective implementation of competition laws. Transition periods for the adoption of national 
competition laws and the designation of a competent authority (incorporated Article 279. 2 and 
279.3 ), and, in  the case of the Central American Economic Integration Subsystem, the adoption of 
common competition regulations and the designation of a Central American competition body 
(incorporated Article 279.2) had  lapsed before the entry into force of the Agreement .50 
5.42.  While under the Incorporated Agreement, there is no provision for the exchange of 
confidential information, the exchange of non -confidential information and enforcement cooperation 
is regulated in incorporated Article 281. Cooperation and technical assista nce are also foreseen 
(incorporated Article 52).  
5.43.  The Incorporated Agreement's dispute settlement mechanism does not apply to the provisions 
of the Incorporated Agreement on trade and competition (incorporated Article 283).  
5.44.  In a new Joint Declaration on tr ade and competition the Parties agree that a Central American 
Competition Regulation and a Central American Competition Body shall be established by the Central 
American Party. The content of such a Central American Competition Regulation or the form or 
powers of a Central American Competition Body are for the Central America Party to determine. 
According to the Central American Parties, a Technical Competition Group was formed to draft the 
Central American Competition Regulations, which gave rise to the Ce ntral American Competition 
Committee. With the creation of this Committee, the process of institutional consolidation and co -
operation and co -ordination in advocacy among the region's competition authorities began.51 
5.11  State -owned enterprises and designated monopolies  
5.45.  Incorporated Article 280 on "public enterprises and enterprises entrusted with special or 
exclusive rights including designated monopolies" provides that nothing in Part IV, Title VII of the 
Incorporated Agreement prevents a Party from designat ing or maintaining public enterprises, 
enterprises entrusted with special or exclusive rights or monopolies according to their respective 
national laws. Any such entity shall be subject to competition laws insofar as their application does 
not obstruct the  performance, in law or in fact, of the particular tasks assigned to them by a Party 
and shall ensure that no discrimination is exercised by such entities as regards the conditions under 
which goods or services are purchased or sold, both in terms of natur al or legal persons and of 
originating goods  from either of the Parties . 
 
50 As of January 2022, Guatemala had not yet adopted a competition law, while a Central American 
Regulation on Competition had been adopted in 2020 and is in force since 20 March 2021 (Resolution 441-
2020 (COMIECO -XCII), adopted on 10 December 2020).  
51 COMIECO Resolution No. 441 -2020 dated 10/12/2020, in which the Central American Competition 
Regulation was approved, establishing the Central American Competition Committee.  WT/REG422/1  
 
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  5.46.  The Parties reserve their rights and obligations relating to Title V (Go vernment Procurement  
of Part IV of this Agreement .  
5.47.  The Incorporated Agreement's dispute settlement mechanism d oes not apply to any of the 
provisions under  Incorporated Title VII  including for  public enterprises and enterprises entrusted 
with special or exclusive rights including designated monopolies (incorporated Article 283). 
5.12  Environment and labour  
5.48.  The Agreement  incorporates, and replicates, without modification, the provisions of the EU -
Central America Agreement on trade and sustainable development, which cover, inter alia, the right 
to regulate and the levels of domestic environmental and labour protection; mul tilateral 
environmental standards and agreements ; and multilateral labour standards  and agreements ; trade 
favouring sustainable development; trade in forest products; trade in fish products; and upholding 
levels of protection afforded in domestic environme ntal and labour laws.  
5.49.  Under incorporated Article 285, the Parties reaffirm their rights to set their own sustainable 
development priorities and to establish their own levels of domestic environmental and social 
protection, consistent with internationally recognized agreements on standards to which they are 
signatories, as listed in incorporated Articles 286 and 287. They shall strive to improve those laws 
and policies, provided they are not applied in a manner that would constitute a means of arbitrary 
or unjustifiable discrimination between them or a disguised restriction on international trade. The 
Parties stress that labour standards should never be invoked or otherwise used for protectionist 
trade purposes and that the comparative advant age of any Party should not be questioned. They 
also commit to consult and cooperate as appropriate, on trade -related labour issues of mutual 
interest.  Nothing in the Agreement shall prevent the adoption or enforcement by any Party of 
measures to implement  the agreements referred to in incorporated Article 287 , provided that such 
measures are not applied  in a manner which would constitute a means of arbitrary or unjustifiable 
discrimination between them or a disguised restriction on international trade.  
5.50.  The Incorporated Agreement contains provisions on upholding levels of environmental and 
labour protection; the need to take into account scientific information to establish appropriate 
measures of protection; the importance of reviews of sustainable impact ( incorporated Articles 291 -
293). Best endeavour provisions in incorporated Article 288 encourages the development of trade 
schemes and practices favouring sustainable development and invite the Parties to work together 
towards that aim.  
5.51.  Trade in fishery pr oducts is addressed by a three -pronged commitment (incorporated 
Article  290) to implement multilaterally agreed rules aimed at the conservation of fish stocks and 
sustainable trade in fishery resources, including under the FAO Agreement on Port State Measu res 
to Prevent, Deter and Eliminate Illegal, Unreported and Unregulated (IUU); to cooperate in 
preventing IUU fishing; and to exchange relevant scientific and non -confidential trade. In its 
Unilateral Declaration on the incorporated Article 290 "Trade in F ish Products" of Part IV, Title VIII  
(Trade and Sustainable Development) of the Incorporated Agreement , El Salvador subscribes to 
incorporated Article 290 without prejudice to its own legal status in regard to the United Nations 
Convention on the Law of th e Sea and Annexes.52 Under incorporated Article 289 on trade in forest 
products, the Parties commit to work together to improve forest law and enforcement and 
governance and to promote trade in legal and sustainable forest products.  
5.52.  Incorporated Articles 294 to 301, establish  institutional and monitoring mechanism s. They 
provide for a Civil Society Dialogue Forum  with balanced representation by environmental, economic 
and social stakeholders;  government consultations ; the potential intervention of the Board on Trade 
and Sustai nable Development ; and, if appropriate, the formation of a Panel of Experts w hich if 
convened, shall present an initial and a final report with recommendations to resolve the matter. 
Taking into consideration the final report, the Parties shall discuss app ropriate measures to be 
implemented including, where appropriate, cooperation to support the ir implementation. The Party 
to which the measures are addressed will then inform the Board of Trade and Sustainable 
Development about  its intentions concerning the  report including, where appropriate, through an 
action plan.  Under the Joint Declaration on the civil society dialogue forum attached to the 
Agreement, the Parties will continue to assess the operation of the Civil Society Dialogue Forum 
 
52 El Salvador has not rat ified the Convention.  WT/REG422/1  
 
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  through the Board  on Trade and Sustainable Development, in furtherance of their shared 
commitment to sustainable development .  
5.53.  The Agreement's dispute settlement mechanism does not apply to provisions on trade and 
sustainable development (incorporated Article 284:4).  
5.13  Electronic commerce  
5.54.  The Agreement incorporates, and replicates, without modification, the provisions of the EU -
Central America Agreement on Electronic commerce (e -commerce).  
5.55.  In the incorporated Agreement, the Parties, reaffirming their commitments under the WT O 
Agreements, lay down the necessary provisions for cooperation on electronic commerce 
(incorporated Article 159). The Agreement also prohibits the imposition of customs duties on 
deliveries by electronic means (incorporated Article 201). Moreover, the Par ties agree to maintain a 
dialogue and cooperate on regulatory issues arising from electronic commerce.  
5.14  Small and medium -sized enterprises  
5.56.  Micro, Small and Medium Enterprises (MSMEs) are addressed under incorporated Part III (on 
cooperation). Incorporated Article 70 recognizes their contribution to social cohesion and lists a 
number of cooperation actions.WT/REG422/1  
 
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 ANNEX 1  
INDICATORS OF TRADE LIBERALIZATION UNDER THE AGREEMENT  
1. The following tables present tariff liberalization under the Agreement. A comparison is made 
between these tariffs and the MFN tariffs that are applicable to these products. Tariff -related market 
access conditions for trade between the UK and Central American countries applicable at the entr y 
into force of the Agreement remained largely unchanged compared to the situation under the EU -
Central America Agreement, when the UK was still an EU Member State. The following tables should 
therefore be read bearing this in mind.  
The United Kingdom  
2. Table A1.1 shows tariff liberalization by the UK under the Agreement by total, agricultural and 
industrial products. Applied MFN rates in 2021 serve as a comparison.  
3. When the Agreement entered into force in 2021, the UK's share of duty -free tariff lines 
(overa ll) increased from 47% (MFN basis) to 94.8% for imports from Central America. The share 
rose from 18.8% to 81.1% for agricultural products and from 57.1% to 99.7% for industrial 
products. The average preferential tariff for imports from Central American Pa rties fell to 0.1% 
overall, from an average MFN rate of 3.8% giving Central American exports a relative margin of 
preference of 97.4%. For agricultural products, the average tariff decreased from 8.9% to 0.3%, 
and for industrial products from 2.5% to zero giving Central American exporters a relative margin 
of preference of 96.6% and 100% for agricultural and industrial products respectively. At the end of 
the transition period in 2022, Central American exporters faced zero duties on 95.1% of the UK's 
tariff lines (82.5% for agricultural products and 99.7% for industrial products).  
Table A1. 1 United Kingdom: Indicators of MFN tariff rates and preferential rates for 
bilateral imports  
Origin 
of 
goods  Year  ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff  Share 
of duty -
free 
tariff 
lines 
(%) Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 3.8 7.8 47.0 8.9 12.0 18.8 2.5 5.8 57.1 
CA 2021 0.1 10.7 94.8 0.3 11.8 81.1 0.0 7.6 99.7 
 2022 0.1 10.7 95.1 0.3 11.8 82.5 0.0 7.6 99.7 
Note:  Tariff lines subject to in -quota rates are excluded from the computation.   
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the UK authorities.  
 
4. Table A1.2 shows the market access opportunities in the UK for the top 25 exports of its 
Central America's partners, w hich in 2018 -2020 covered between 48 and 111 tariff lines, and 
accounted for between 50.6% and 87.5% of their global exports. Some of these products were 
already duty free on an MFN basis prior to the Agreement's entry into force - 49 for Costa Rica, 19 
for El Salvador, 10 for Guatemala, 11 for Honduras, 5 for Nicaragua and 22 for Panama. Under the 
Agreement none of the Central American countries' top 25 exports will have been liberalized 
completely: 3 products exported by El Salvador will remain dutiable, 6 for Costa Rica and Guatemala, 
9 for Nicaragua and Panama and 13 for Honduras . The 2021 MFN rates for these products ranged 
from 6.6% to 16.0%, while for 18 products specific rates applied.  WT/REG422/1  
 
- 73 - 
 
 Table A1. 2 United Kingdom: Market acce ss opportunities under the Agreement for Costa 
Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama top 25 exports to the 
world (2018 -2020)  
Access Conditions to UK's  import markets  
HS  
number  
Share in global  
exports (%)  MFN rate 2021  Duty -free 
under the 
Agreement  
Remain dutiable  
HS 
number  
Share in global 
exports (%)  MFN rate 2021  Duty -free 
under the 
Agreement  
Remain  dutiable  Avg (%)  
Duty free  
Dutiable  
2021  
2022  
Avg (%)  
Duty free  
Dutiable  
2021  
2022  
COSTA RICA  EL SALVADOR  
901839  12.5 0.0 1     610910  10.1 12.0  1 1   
901890  9.2 0.0 8     611030  3.9 12.0  3 3   
080390  9.1 16.0  2 1  1 170114  3.1 -  2   2 
080430  8.6 4.0  1 1   481810  2.7 0.0 2     
902139  4.4 0.0 2     610990  2.6 12.0  2 2   
210690  4.0 12.0  7 7   611596  2.6 12.0  3 3   
090111  2.7 0.0 1     610711  2.5 12.0  1 1   
901819  1.8 0.0 2     853221  2.3 0.0 1     
300490  1.3 0.0 1     611020  2.0 12.0  3 3   
300215  1.2 0.0 1     090111  2.0 0.0 1     
902190  1.1 0.0 2     392330  1.9 6.0  2 2   
401110  1.0 4.0  1 1   220299  1.9 6.3  6 3 3  
961900  1.0 0.0 8     300490  1.8 0.0 1     
151110  1.0 2.0 1 1 1   854430  1.8 1.8  1 1   
200899  1.0 16.8 2 23 22 1  160414  1.4 20.5  10 10   
854449  0.9 2.0 1 4 4   190590  1.4 6.6  7 5 1 1 
071410  0.8 0.0  1 1   271019  1.1 2.2 12 13 13   
900130  0.8 2.0  1 1   392321  1.1 6.0  1 1   
392690  0.8 5.8  3 3   271119  1.1 0.0 1     
081190  0.7 12.8  10 10   610343  1.1 12.0  1 1   
701090  0.7 0.0 17     621210  1.1 6.0  2 2   
210390  0.6 6.0 2 1 1   600632  1.0 8.0  1 1   
020230  0.6 12.0  3   3 600622  0.9 8.0  1 1   
200941  0.6 15.0  2 2   610463  0.9 12.0  1 1   
170114  0.6 -  2   2 481910  0.8 0.0 1     
Total  67.0  49 62 55 1 6 Total  53.1  19 61 54 4 3 
GUATEMALA  HONDURAS  
080390  7.4 16.0  2 1  1 090111  24.0 0.0 1     
090831  6.4 0.0 1     854430  8.0 1.8  1 1   
090111  5.9 0.0 1     080390  5.8 16.0  2 1  1 
151110  3.5 2.0 1 1 1   030617  5.4 12.0  5 5   
170199  3.1 -  2   2 151110  4.8 2.0 1 1 1   
170114  2.6 -  2   2 710812  2.3 0.0 1     
720260  2.1 0.0 1     080719  1.9 8.0  1 1   
300490  1.7 0.0 1     340119  1.8 0.0 1     
611020  1.7 12.0  3 3   151190  1.4 8.5  4 4   
271600  1.6 0.0 1     481910  1.3 0.0 1     
610610  1.6 12.0  1 1   240210  1.3 25.0  1 1   
610510  1.5 12.0  1 1   170113  1.1 -  2   2 
481910  1.2 0.0 1     230910  1.1 8.0 2 10 1  9 
080719  1.2 8.0  1 1   260800  1.1 0.0 1     
610520  1.1 12.0  2 2   610910  1.1 12.0  1 1   
220710  1.0 0.0  1 1   030611  1.1 12.0  2 2   
611030  0.9 12.0  3 3   190590  1.0 6.6  7 5 1 1 
080310  0.9 16.0  2 2   080430  0.8 4.0  1 1   
270900  0.9 0.0 2     711291  0.8 0.0 1     
600622  0.8 8.0  1 1   151321  0.8 6.7  3 3   
400122  0.8 0.0 1     070999  0.7 8.8  6 6   
340220  0.7 4.0  2 2   721041  0.7 0.0 1     
190590  0.7 6.6  7 5 1 1 240220  0.6 30.0  2 2   
610620  0.7 12.0  1 1   721420  0.6 0.0 1     
220299  0.6 6.3  6 3 3  870829  0.6 3.0  2 2   
Total  50.6  10 38 28 4 6 Total  70.2  11 51 37 1 13 WT/REG422/1  
 
- 74 - 
 
 Access Conditions to UK's  import markets  
HS  
number  
Share in global  
exports (%)  MFN rate 2021  Duty -free 
under the 
Agreement  
Remain dutiable  
HS 
number  
Share in global 
exports (%)  MFN rate 2021  Duty -free 
under the 
Agreement  
Remain  dutiable  Avg (%)  
Duty free  
Dutiable  
2021  
2022  
Avg (%)  
Duty free  
Dutiable  
2021  
2022  
NICARAGUA  PANAMA  
710812  10.0 0.0 1     260300  47.9 0.0 1     
854430  9.3 1.8  1 1   080390  10.2 16.0  2 1  1 
610910  8.7 12.0  1 1   230120  2.9 0.0 1     
090111  8.6 0.0 1     440349  2.7 0.0 3     
020230  5.3 12.0  3   3 720410  2.1 0.0 1     
240210  4.6 25.0  1 1   170113  2.0 -  2   2 
020130  3.8 12.0  1   1 151110  1.8 2.0 1 1 1   
610990  3.2 12.0  2 2   150420  1.6 10.0 1 1 1   
030617  3.0 12.0  5 5   300490  1.6 0.0 1     
620342  2.3 12.0  7 7   020230  1.6 12.0  3   3 
610610  2.2 12.0  1 1   220840  1.5 - 2 4 2  2 
120242  1.9 0.0 1     030616  1.4 15.0  2 2   
170113  1.9 -  2   2 090122  1.2 8.0  1 1   
071333  1.8 0.0 2     760200  1.2 0.0 3     
030611  1.2 12.0  2 2   030617  1.1 12.0  5 5   
040690  1.1 0.0  32 32   030289  0.9 11.0 1 8 8   
620520  1.0 12.0  1 1   080430  0.8 4.0  1 1   
170199  1.0 -  2   2 080711  0.8 8.0  1 1   
611030  1.0 12.0  3 3   740400  0.8 0.0 3     
040630  0.9 0.0  4 4   030219  0.7 8.0  1 1   
620343  0.9 12.0  5 5   020610  0.6 12.0 2 1   1 
610690  0.9 12.0  4 4   030232  0.6 20.0 1 1 1   
711319  0.8 2.0  1 1   761290  0.6 6.0  3 3   
080390  0.7 16.0  2 1  1 711291  0.5 0.0 1     
620791  0.6 12.0  1 1   090121  0.5 6.0  1 1   
Total  76.6  5 81 72 0 9 Total  87.5  22 38 29 0 9 
- contains specific duties  
Note:  Based on the HS 2017 nomenclature  
Source:  WTO estimates based on data provided by the UK authorities, UNSD -Comtrade database and 
Instituto Nacional de Estadística  y Censos  (Panama).  
Central American countries  
5. Tables A1.3 through A1.8 show tariff liberalization by the Central American Parties under the 
Agreement by total, agricultural and industrial products. Applied MFN rates in 2021, as well as for 
the most recent year available in WTO's IDB, serve as a compar ison. 
6. When the Agreement entered into force in 2021, Costa Rica's share of duty -free tariff lines 
(overall) increased from zero on an MFN basis to 57.6% for imports from the United Kingdom. The 
share rose from zero to 32% for agricultural products and from  zero to 62.2%% for industrial 
products. The average preferential tariff for imports from the United Kingdom fell to 1.7% overall, 
from an average MFN rate of 6.8% giving UK exporters a relative margin of preference of 75%. For 
agricultural products, the a verage tariff decreased from 14.1% to 8.1%, and for industrial products 
from 5.5% to 0.6% giving UK exporters a relative margin of preference of 42.6% and 89.1% 
respectively for agricultural and industrial products. At the end of the transition period in 2 027, UK 
exporters are expected to face zero duties on 96% of Costa Rica's tariff (73.7% for agricultural 
products and 100% for industrial products).  WT/REG422/1  
 
- 75 - 
 
 Table A1. 3 Costa Rica: Indicators of MFN tariff rates and preferential rates for imports 
from the UK  
Origin 
of 
goods  Year  ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 6.8 6.8 0.0 14.1 14.1 0.0 5.5 5.5 0.0 
UK 2021 1.7 4.0 57.6 8.1 12.0 32.0 0.6 1.5 62.2 
 2022 1.3 15.8 92.1 7.6 25.4 70.1 0.1 2.9 96.1 
 2023 1.2 15.4 92.1 7.5 25.2 70.1 0.1 2.0 96.1 
 2024 1.2 14.9 92.1 7.5 25.0 70.1 0.0 1.2 96.1 
 2025 1.1 23.2 95.1 7.4 26.1 71.5 0.0 2.1 99.3 
 2026 1.1 23.0 95.1 7.4 26.0 71.5 0.0 1.0 99.3 
 2027 1.1 28.0 96.0 7.4 28.0 73.7 0.0 0.0 100.0  
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2007 nomenclature.  
Source:  WTO estimates based on data provided by the Costa Rican authorities and the WTO -IDB. 
 
7. When the Agreement entered into force in 2021, Nicaragua's share of duty -free tariff lines 
(overall) increased from 46.5% on an MFN basis to 55.1% for imports from the United Kingdom. 
The share rose from 17.3% to 28.3% for agricultural products and from 53.5% to 61.5% for 
industrial products. The avera ge preferential tariff for imports from the United Kingdom fell to 1.7% 
overall, from an average MFN rate of 6.2% giving UK exporters a relative margin of preference of 
72.5%. For agricultural products, the average tariff decreased from 12.4% to 6.3%, and for 
industrial products from 4.8% to 0.6% giving UK exporters a relative margin of preference of 49.2% 
and 87.5% respectively for agricultural and industrial products. At the end of the transition period 
in 2027, UK exporters are expected to face zero duti es on 94.8% of Nicaragua's tariff (73.2% for 
agricultural products and 100% for industrial products).  
Table A1. 4 Nicaragua: Indicators of MFN tariff rates and preferential rates for imports 
from the UK  
Origin 
of 
goods  Year  ALL PR ODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 6.2 11.7 46.5 12.4 15.0 17.3 4.8 10.3 53.5 
UK 2021 1.7 3.8 55.1 6.3 8.8 28.3 0.6 1.6 61.5 
 2022 1.2 12.4 90.3 5.7 17.8 68.0 0.1 2.8 95.6 
 2023 1.2 11.9 90.3 5.6 17.6 68.0 0.1 1.9 95.6 
 2024 1.1 11.5 90.3 5.6 17.4 68.0 0.0 1.1 95.6 
 2025 1.1 17.6 93.9 5.5 19.2 71.4 0.0 2.0 99.3 
 2026 1.1 17.4 93.9 5.5 19.1 71.4 0.0 1.0 99.3 
 2027 1.1 20.3 94.8 5.4 20.3 73.2 0.0 0.0 100.0  
Note:  Tariff lines subject to in -quota rates are excluded in the computation .  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the Nicaragua authorities.  WT/REG422/1  
 
- 76 - 
 
 8. When the Agreement entered into force in 2021, Honduras' share of duty -free tariff lines 
(overall) increased from 48% on an MFN basis to 56.5% for imports from the United Kingdom. The 
share rose from 18.9% to 29.6% for agricultural products and from 54.4% to 62.4% for industrial 
products. The average preferential tariff for imports from the United Kingdom fell to 1.4%  overall, 
from an average MFN rate of 6% giving UK exporters a relative margin of preference of 76.7%. For 
agricultural products, the average tariff decreased from 11.6% to 8.1%, and for industrial products 
from 4.7% to 0.6 giving UK exporters a relative m argin of preference of 56% and 87.2% respectively 
for agricultural and industrial products. At the end of the transition period in 2027, UK exporters are 
expected to face zero duties on 95.9% of Honduras' tariff (77% for agricultural products and 100% 
for industrial products).  
Table A1. 5 Honduras: Indicators of MFN tariff rates and preferential rates for imports 
from the UK  
Origin 
of 
goods  Year  ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 6.0 11.5 48.0 11.6 14.3 18.9 4.7 10.4 54.4 
UK 2021 1.4 3.2 56.5 5.1 7.3 29.6 0.6 1.5 62.4 
 2022 0.9 10.6 91.5 4.5 15.6 71.2 0.1 2.7 96.0 
 2023 0.9 10.1 91.5 4.4 15.4 71.2 0.1 1.9 96.0 
 2024 0.8 9.7 91.5 4.4 15.2 71.2 0.0 1.1 96.0 
 2025 0.8 15.6 95.0 4.3 17.4 75.3 0.0 2.0 99.3 
 2026 0.8 15.4 95.0 4.3 17.3 75.3 0.0 1.0 99.3 
 2027 0.8 18.5 95.9 4.3 18.5 77.0 0.0 0.0 100.0  
Note:  Tariff lines subject to in -quota rates are excluded in the computation .  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the Honduras authorities.  
 
9. When the Agreement entered into force in 2021, Guatemala's share of duty -free tariff lines 
(overall) increased from 49.4% on an MFN basis to 57.8% for imports from the United Kingdom. 
The share rose from 19.7% to 30.3% for agricultural products and from 55.9% to 63.9%% for 
industrial products. The average preferential tariff for imports from the United Kingdom fell to 1.2% 
overall, from an average MFN rate of 5.7% giving UK exporters a rela tive margin of preference of 
78.9%. For agricultural products, the average tariff decreased from 10.6% to 4.1%, and for 
industrial products from 4.6% to 0.5% giving UK exporters a relative margin of preference of 61.3% 
and 89% respectively for agricultural  and industrial products. At the end of the transition period in 
2027, UK exporters are expected to face zero duties on 96% of Guatemala's tariff (77.4% for 
agricultural products and 100% for industrial products).  
Table A1. 6 Guate mala: Indicators of MFN tariff rates and preferential rates for imports 
from the UK  
Origin 
of goods  Year  ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 5.7 11.2 49.4 10.6 13.2 19.7 4.6 10.5 55.9 
UK 2021 1.2 2.8 57.8 4.1 5.9 30.3 0.5 1.5 63.9 
 2022 0.7 8.5 91.6 3.5 12.2 71.7 0.1 2.8 95.9 WT/REG422/1  
 
- 77 - 
 
 Origin 
of goods  Year  ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
 2023 0.7 8.0 91.6 3.4 12.0 71.7 0.1 2.0 95.9 
 2024 0.6 7.5 91.6 3.3 11.7 71.7 0.0 1.2 95.9 
 2025 0.6 12.0 95.1 3.2 13.4 75.8 0.0 2.0 99.3 
 2026 0.6 11.8 95.1 3.2 13.3 75.8 0.0 1.0 99.3 
 2027 0.6 14.1 96.0 3.2 14.1 77.4 0.0 0.0 100.0  
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the Guatemala authorities.  
 
10. When the Agreement entered into force in 2021, El Salvador's share of duty -free tariff lines 
(overall) increased from 47.4% on an MFN basis to 56% for imports from the United Kingdom. The 
share rose from 19.6% to 30.2% for agricultural produc ts and from 53.5% to 61.7% for industrial 
products. The average preferential tariff for imports from the United Kingdom fell to 1.6% overall, 
from an average MFN rate of 6.4% giving UK exporters a relative margin of preference of 75%. For 
agricultural prod ucts, the average tariff decreased from 13% to 6.2%, and for industrial products 
from 4.9% to 0.6% giving UK exporters a relative margin of preference of 52.3% and 87.8% 
respectively for agricultural and industrial products. At the end of the transition pe riod in 2027, UK 
exporters are expected to face zero duties on 95.2% of El Salvador's tariff (77.2% for agricultural 
products and 99.1% for industrial products).  
Table A1. 7 El Salvador: Indicators of MFN tariff rates and preferential rates for imports 
from the UK  
Origin 
of 
goods  Year  ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share 
of duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 6.4 12.1 47.4 13.0 16.2 19.6 4.9 10.6 53.5 
UK 2021 1.6 3.6 56.0 6.2 8.9 30.2 0.6 1.5 61.7 
 2022 1.1 12.0 90.9 5.6 19.7 71.7 0.1 2.4 95.0 
 2023 1.1 11.6 90.9 5.5 19.5 71.7 0.1 1.8 95.0 
 2024 1.0 11.1 90.9 5.4 19.2 71.7 0.1 1.1 95.0 
 2025 1.0 17.6 94.4 5.4 22.1 75.7 0.0 1.5 98.5 
 2026 1.0 17.4 94.4 5.4 22.0 75.7 0.0 1.1 98.5 
 2027 1.0 20.1 95.2 5.3 23.4 77.2 0.0 1.3 99.1 
Note:  Tariff lines subject to in -quota rates are excluded in the computation .  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the El Salvador authorities.  
 
11. When the Agreement entered into force in 2021, Panama's share of duty -free tariff lines 
(overall) increased from 45.5% on an MFN basis to 62.6% for imports from the United Kingdom. 
The share rose from 18.9% to 36.2% for agricultural products and from 51.7% to 68.8% for 
industrial products. The average preferential tariff for imports from the United Kingdom fell to 2% 
overall, from an average MFN rate of 6.8% giving UK exporters a relative margin of preference of 
70.6%. For agricultural product s, the average tariff decreased from 15.1% to 8%, and for industrial 
products from 4.9% to 0.6% giving UK exporters a relative margin of preference of 47% and 87.8% WT/REG422/1  
 
- 78 - 
 
 respectively for agricultural and industrial products. At the end of the transition period in 2027, UK 
exporters are expected to face zero duties on 95.2% of Panama's tariff (74.3% for agricultural 
products and 100% for industrial products).  
Table A1. 8 Panama: Indicators of MFN tariff rates and preferential rates for imports 
from the UK  
Origin 
of 
goods  Year  ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2021 6.8 12.6 45.5 15.1 18.6 18.9 4.9 10.3 51.7 
UK 2021 2.0 5.2 62.6 8.0 12.6 36.2 0.6 1.8 68.8 
 2022 1.5 16.0 90.5 7.5 23.0 67.4 0.2 3.6 95.8 
 2023 1.5 15.5 90.5 7.4 22.7 67.4 0.1 2.6 95.8 
 2024 1.4 15.0 90.5 7.3 22.4 67.4 0.1 1.6 95.8 
 2025 1.4 21.2 93.6 7.2 24.3 70.4 0.0 2.3 98.9 
 2026 1.3 20.9 93.6 7.1 24.0 70.4 0.0 1.2 98.9 
 2027 1.3 27.4 95.2 7.0 27.4 74.3 0.0 2.5 100.0  
Note:  Tariff lines subject to in -quota rates are excluded in the computation .  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by the Panama authorities and the WTO-IDB. 
 
12. Table A1.9 shows the market access opportunities in the individual Central American countries' 
markets for the top 25 exports of the UK, which in 2018 -2020 covered between 25 tariff lines, 
accounting for between 38.4% of UK's global exports. Most  products were already MFN duty free 
prior to the Agreement's entry into force. At the end of the implementation of the Agreement, only 
eight tariff lines will remain dutiable in in El Salvador relating to passenger motor vehicles and whose 
MFN tariff in 2 021 was 17.4% and 20.6%.  
Table A1. 9 Central America: Market access opportunities under the agreement for UK's 
top 25 exports to the world (2018 -2020)  
Access Conditions to Central America's  import markets  
HS  
number  
Share in global  
exports (%)  MFN rate 2021  Duty -free 
under the 
Agreement  
Remain 
dutiable  
HS 
number  
Share in global 
exports (%)  MFN rate 2021  Duty -free 
under the 
Agreement  
Remain  
dutiable  Avg (%)  
Duty 
free 
Dutiable  
2021  
2022  
Avg (%)  
Duty 
free 
Dutiable  
2021  
2022  
COSTA RICA  EL SALVADOR  
710813  5.6 6.0  1  1  710813  5.6 5.0  1  1  
270900  4.9 1.0  2 2   270900  4.9 0.0 2     
300490  3.2 3.5  6 6   300490  3.2 5.0  6 6   
880330  2.9 1.0  1 1   880330  2.9 0.0 1     
841112  2.6 1.0  1 1   841112  2.6 0.0 1     
870323  2.4 6.6  10 10   870323  2.4 20.6  16 4 12  
841191  2.1 1.0  1 1   841191  2.1 0.0 1     
870324  1.7 6.6  5 5   870324  1.7 22.1  8 2 6  
220830  1.3 12.5  2 2   220830  1.3 30.0  2 2   
271012  1.3 3.9  7 3 4  271012  1.3 2.9 3 4  4  
970110  1.3 8.0  2  2  970110  1.3 7.5  2  2  
870322  1.2 6.6  10 6 4  870322  1.2 17.4  16  12 4 
711319  1.0 15.0  1 1   711319  1.0 15.0  1 1   
271019  1.0 3.2  13 9 4  271019  1.0 2.3 8 5 1 4  
870332  0.7 6.6  10 6 4  870332  0.7 20.6  16  12 4 WT/REG422/1  
 
- 79 - 
 
 Access Conditions to Central America's  import markets  
HS  
number  
Share in global  
exports (%)  MFN rate 2021  Duty -free 
under the 
Agreement  
Remain 
dutiable  
HS 
number  
Share in global 
exports (%)  MFN rate 2021  Duty -free 
under the 
Agreement  
Remain  
dutiable  Avg (%)  
Duty 
free 
Dutiable  
2021  
2022  
Avg (%)  
Duty 
free 
Dutiable  
2021  
2022  
300220  0.6 1.0  1 1   300220  0.6 0.0 1     
870340  0.6 1.0  1 1   870340  0.6 30.0  1 1   
711021  0.6 1.0  1 1   711021  0.6 0.0 1     
300215  0.6 1.0  2 2   300215  0.6 0.0 1     
851762  0.6 1.0  1 1   851762  0.6 0.0 1     
382200  0.5 1.0  1 1   382200  0.5 0.0 1     
490199  0.5 1.0  1 1   490199  0.5 0.0 1     
870333  0.5 6.6  5 5   870333  0.5 22.1  8 2 6  
840890  0.4 1.0  1 1   840890  0.4 0.0 1     
870899  0.4 10.0  1 1   870899  0.4 1.0  1 1   
Total  38.4  0 87 68 19 0 Total  38.4  23 87 20 59 8 
GUATEMALA  HONDURAS  
710813  5.6 5.0  1  1  710813  5.6 5.0  1  1  
270900  4.9 0.0 2     270900  4.9 0.0 2     
300490  3.2 5.0  6 6   300490  3.2 2.5 3 3 3   
880330  2.9 0.0 1     880330  2.9 0.0 1     
841112  2.6 0.0 1     841112  2.6 0.0 1     
870323  2.4 0.0 10     870323  2.4 15.0  10 4 6  
841191  2.1 0.0 1     841191  2.1 0.0 1     
870324  1.7 0.0 5     870324  1.7 15.0  5 2 3  
220830  1.3 22.5  2 2   220830  1.3 10.0  2 2   
271012  1.3 2.9 3 4 3 1  271012  1.3 2.9 3 4  4  
970110  1.3 7.5  2  2  970110  1.3 7.5  2  2  
870322  1.2 0.0 10     870322  1.2 5.0  10  10  
711319  1.0 15.0  1 1   711319  1.0 15.0  1 1   
271019  1.0 2.3 8 5 3 2  271019  1.0 2.3 8 5 1 4  
870332  0.7 0.0 10     870332  0.7 5.0  10  10  
300220  0.6 0.0 1     300220  0.6 0.0 1     
870340  0.6 0.0 1     870340  0.6 0.0 1     
711021  0.6 0.0 1     711021  0.6 0.0 1     
300215  0.6 0.0 1     300215  0.6 0.0 1     
851762  0.6 0.0 1     851762  0.6 0.0 1     
382200  0.5 0.0 1     382200  0.5 0.0 1     
490199  0.5 0.0 1     490199  0.5 0.0 1     
870333  0.5 0.0 5     870333  0.5 15.0  5 2 3  
840890  0.4 0.0 1     840890  0.4 0.0 1     
870899  0.4 10.0  1 1   870899  0.4 5.0  1 1   
Total  38.4  64 22 16 6 0 Total  38.4  27 59 16 43 0 
NICARAGUA  PANAMA  
710813  5.6 5.0  1  1  710813  5.6 5.0  1 1   
270900  4.9 0.0 2     270900  4.9 0.0 2     
300490  3.2 2.5 3 3 3   300490  3.2 0.0 5     
880330  2.9 0.0 1     880330  2.9 0.0 1     
841112  2.6 0.0 1     841112  2.6 0.0 1     
870323  2.4 8.0  20 8 12  870323  2.4 0.0 6     
841191  2.1 0.0 1     841191  2.1 0.0 1     
870324  1.7 8.0  10 4 6  870324  1.7 0.0 6     
220830  1.3 7.5  2 2   220830  1.3 15.0  2 2   
271012  1.3 2.5 6 6  6  271012  1.3 0.0 12     
970110  1.3 7.5  2  2  970110  1.3 5.0 1 1  1  
870322  1.2 8.0  10  10  870322  1.2 0.0 6     
711319  1.0 15.0  1 1   711319  1.0 15.0  1 1   
271019  1.0 2.3 9 6 1 5  271019  1.0 8.2 4 10 7 3  
870332  0.7 9.0  30  30  870332  0.7 0.0 6     
300220  0.6 0.0 1     300220  0.6 0.0 1     
870340  0.6 5.0 2 2  2  870340  0.6 0.0 1     
711021  0.6 0.0 1     711021  0.6 0.0 1     WT/REG422/1  
 
- 80 - 
 
 Access Conditions to Central America's  import markets  
HS  
number  
Share in global  
exports (%)  MFN rate 2021  Duty -free 
under the 
Agreement  
Remain 
dutiable  
HS 
number  
Share in global 
exports (%)  MFN rate 2021  Duty -free 
under the 
Agreement  
Remain  
dutiable  Avg (%)  
Duty 
free 
Dutiable  
2021  
2022  
Avg (%)  
Duty 
free 
Dutiable  
2021  
2022  
300215  0.6 0.0 1     300215  0.6 0.0 1     
851762  0.6 0.0 1     851762  0.6 0.0 1     
382200  0.5 0.0 3     382200  0.5 0.0 1     
490199  0.5 0.0 1     490199  0.5 0.0 2     
870333  0.5 8.0  20 8 12  870333  0.5 0.0 6     
840890  0.4 0.0 1     840890  0.4 0.0 1     
870899  0.4 5.0  1 1   870899  0.4 2.5 1 1 1   
Total  38.4  34 114 28 86 0 Total  38.4  67 16 12 4 0 
Note:  Based on the HS 2017 nomenclature . Costa Rican data is originally based on HS 2007 nomenclature. 
The HS 2007 subheadings aligned to HS 2017 are: 271011 to 271012; 870390 to 870340; and 
300290 to 300215.  
Source:  WTO estimates based on data provide d by the Central American Parties, WTO -IDB and UK 
authorities.  
 WT/REG422/1  
 
- 81 - 
 
 ANNEX 2  
SUMMARY OF THE PARTIES' TARIFF RATE QUOTAS  
1. With respect to Appendices 1 and 2 to the incorporated Annex I to the EU -Central America 
Agreement, information on the import tariff -rate quota (TR Q) volumes and, where applicable, annual 
volume increases, are replaced by rates and volumes in the Annex to the Agreement, and in 
particular under point 17 (Modifications to Annex 1/elimination of customs duties).1  
Table A2. 1 TRQs within the Agreement  
Product (SAC 2007)  Quantity (MT)  
"2019 quota" and increase  Rate  
In-
quota  Out-of-quota  
Central America TRQs  
Cured hams and streaky bacon  
0210.11.00, 0210.12.00, 0210.19.00  159/year (joint),  
increased by 6/year  Free Cat. H:  
Free in 2027  
Powdered Milk  
0402.10.00, 0402.21.11, 0402.21.12, 
0402.21.21, 0402.21.22, 0402.29.00  CRI/SLV/NIC: 27/year, 1/year  
GTM/HND: 53/year, 2/year  
PAN: 67/year, 3/year  Free Cat. F 
MFN 
Cheese  
0406.20.90, 0406.30.00, 0406.90.10, 
0406.90.20, 0406.90.90  CRI: 42/year, 2/year  
SLV: 78/year, 3/year  
GTM/PAN: 80/year, 3/year  
HND: 67/year, 3/year  
NIC: 53/year, 2/year  Free Cat. F 
MFN 
Prepared or preserved swine meat  
1602.41.00, 1602.42.00, 1602.49.90  159/year (joint),  
increased by 6/year  Free Cat. H:  
Free in 2027  
UK TRQs  
Garlic  
0703 20 00  75/year  
No staging  Free Cat. F  
MFN 
Manioc starch  
1108 14 00  681/year  
No staging  Free Cat. F  
MFN 
6 Sweet corn  
0710 40 00, 0711 90 30,  
2001 90 30, 2004 90 10, 2005 80 00  294/year,  
increased by 16/year  Free Cat: J;  
0% (EIF) + 
specific rate 
at Base Rate  
Mushrooms  
0711 51 00,  
2003 10 20, and 2003 10 30  37/year  
No staging  Free Cat. J  
0% (EIF) + 
specific rate 
at Base Rate  
Beef 
0201 10 00, 0201 20 20, 0201 20 30,  
0201 20 50, 0201 20 90, 0201 30 00,  
0202 10 00, 0202 20 10, 0202 20 30,  
0202 20 50, 0202 20 90, 0202 30 10,  
0202 30 50, 0202 30 90  to NIC only: 67/year,  
increased by 3/year  
to Central America jointly: 
1,268/year,  
increased by 49/year  
Quantities in carcass weight 
equivalent  Free Cat. F  
MFN 
 
 
 
 
Sugar, including organic sugar, and goods 
with high sugar content  
 
i) 1701 11 10, 1701 11 90, 1701 91 00, 1701 
99 10, 1701 99 90, 1702 30 10,  
1702 30 51, 1702 30 59, 1702 30 91,  
1702 30 99, 1702 40 90, 1702 90 30,   
 
 
PAN: 1,929/year  
increased by 49/year  
Central America jointly, excluding 
PAN: 56,127/year,   
 
 
Free 
 
 
  
 
Cat. F  
MFN 
 
 
 
 
1 The TRQ volumes for 2019 shall be those stipulated under "2019 quota", and, for TRQs that increase 
over time, the volume for subsequent years shall be calculated in accordance with the "Yearly increase" figure. 
As the Agreement ente red into force in 2021, the applicable volume during the year the Agreement enters into 
force shall be calculated by combining the "2019 quota" and the "yearly increase" as applicable for each year 
after 2019 up until and including the year of entry into f orce. WT/REG422/1  
 
- 82 - 
 
 Product (SAC 2007)  Quantity (MT)  
"2019 quota" and increase  Rate  
In-
quota  Out-of-quota  
1702 90 50, 1702 90 71, 1702 90 75,  
1702 90 79, 1702 90 80, 1702 90 99  
 
ii) 1702 50 00, 1704 90 99, 1806 10 30, 1806 
10 90, 1806 20 95ex2,  
1806 90 90ex2, 1901 90 99, 2006 00 31,  
2006 00 38, 2007 91 10, 2007 99 20,  
2007 99 31, 2007 99 33, 2007 99 35, 2007 
99 39, 2009 11 11ex2, 2009 11 91,  
2009 19 11ex2, 2009 19 91,  
2009 29 11ex2, 2009 29 91,  
2009 39 11ex 2, 2009 39 51, 2009 39 91, 
2009 49 11ex2, 2009 49 91,  
2009 80 11ex2, 2009 80 35ex2,  
2009 80 61, 2009 80 86, 2009 90 11ex2,  
2009 90 21ex2, 2009 90 31, 2009 90 71, 
2009 90 94, 2101 12 98ex2,  
2101 20 98ex2, 2106 90 98ex2, 3302 10 29  
 increased by 1,427/year  
Quantities in raw sugar equivalent  
  
 
 
 
Free  
 
 
 
0% (EIF) + 
specific rate 
at Base Rate  
Rice 
1006 20 15, 1006 20 17, 1006 20 96,  
1006 20 98, 1006 30 25, 1006 30 27,  
1006 30 46, 1006 30 48, 1006 30 65,  
1006 30 67, 1006 30 96, 1006 30 98  
 Central America jointly: 
3,541/year,  
 increased by 136/year  Free Cat. F  
MFN 
Bulk rum  
2208 40 99  PAN: 177 hl /year  
 increased by 7 hl/year  
Central America jointly, excluding 
PAN: 1,199 hl/year,  
increased by 41 hl/year  
Quantities in pure alcohol 
equivalent   
 Free Cat. F  
MFN 
Source:  Appendices 1 and 2 to Annex I to the Incorporated Agreement . 
__________