WT/REG332/1  
 
10 March  2022 
(21-2076) Page: 1/82 
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION  
ASSOCIATION AGREEMENT BETWEEN THE EUROPEAN UNION 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 
European Union 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 
Maria  Donner  Abreu (tel: +41 22 739 5244). Any statistical questions  arising from this 
report may be addressed to Rowena Cabos (tel: +41 22 739 5185).   WT/REG332/1  
 
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  Table of C ontents  
Page 
1  TRADE ENVIRONMENT  ................................ ................................ ................................ . 5 
1.1  Merchandise trade  ................................ ................................ ................................ ........  5 
1.1.1   Use of preferences  ................................ ................................ ................................ ..... 7 
1.2  Trade in services and investment  ................................ ................................ ...................  8 
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT  ................................ .....................  12 
2.1  Background information  ................................ ................................ ..............................  12 
3  PROVISIONS ON TRADE IN GOODS  ................................ ................................ ............  15 
3.1  Import duties and charges, and quantitative restrictions  ................................ .................  15 
3.1.1   General provisions  ................................ ................................ ................................ ... 15 
3.1.2   Liberalization of trade and tariff lines  ................................ ................................ .........  15 
3.1.3   Liberalization schedule  ................................ ................................ .............................  18 
3.1.3.1   European Union  ................................ ................................ ................................ .... 18 
3.1.3.2   Central American countries  ................................ ................................ ....................  19 
3.1.4   Tariff rate quotas  ................................ ................................ ................................ ..... 22 
3.2  Rules of origin  ................................ ................................ ................................ ............  22 
3.3  Export duties and charges, and quantitative restrictions  ................................ ..................  24 
3.4  Regulatory provisions on trade in goods  ................................ ................................ ........  24 
3.4.1   Standards  ................................ ................................ ................................ ...............  24 
3.4.1.1   Sanitary and phytosanitary measures  ................................ ................................ ...... 24 
3.4.1.2   Technical barriers to trade  ................................ ................................ .....................  26 
3.4.2   Safeguard mechanisms  ................................ ................................ ............................  27 
3.4.2.1   Global safeguards  ................................ ................................ ................................ . 27 
3.4.2.2   Bilateral safeguards ................................ ................................ ...............................  27 
3.4.3   Anti-dumping and countervailing measures  ................................ ................................ . 28 
3.4.4   Subsidies and state -aid ................................ ................................ ............................  29 
3.4.5  Customs -related procedures and trade facilitation  ................................ ........................  30 
3.5  Sector -specific provisions on trade in goods  ................................ ................................ ... 32 
3.5.1   Trade in bananas  ................................ ................................ ................................ ..... 32 
4  PROVISIONS ON TRADE IN SERVICES  ................................ ................................ ........  33 
4.1  Scope and definitions  ................................ ................................ ................................ .. 33 
4.2  Denial of benefits  ................................ ................................ ................................ ....... 33 
4.3  General provisions on trade in services  ................................ ................................ .........  34 
4.3.1   Market access  ................................ ................................ ................................ .........  34 
4.3.2   National treatment and MFN ................................ ................................ ......................  34 
4.3.3   Commercial presence  ................................ ................................ ...............................  34 
4.3.4   Senior Managers and Boards of Directors  ................................ ................................ .... 34 
4.3.5   Movement of natural persons  ................................ ................................ ....................  34 
4.4  Liberalization commitments  ................................ ................................ .........................  35 WT/REG332/1  
 
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  4.4.1   European Union  ................................ ................................ ................................ ....... 36 
4.4.2   Central American countries  ................................ ................................ .......................  40 
4.4.2.1   Costa Rica  ................................ ................................ ................................ ............  40 
4.4.2.2   El Salvador ................................ ................................ ................................ ...........  42 
4.4.2.3   Guatemala  ................................ ................................ ................................ ...........  45 
4.4.2.4   Honduras  ................................ ................................ ................................ .............  48 
4.4.2.5   Nicaragua  ................................ ................................ ................................ ............  50 
4.4.2.6   Panam a ................................ ................................ ................................ ...............  53 
4.5  Regulatory provisions  ................................ ................................ ................................ .. 56 
4.5.1   Domestic regulation  ................................ ................................ ................................ . 56 
4.5.2   Recognition  ................................ ................................ ................................ .............  56 
4.5.3   Subsidies  ................................ ................................ ................................ ................  56 
4.5.4   Safeguard s ................................ ................................ ................................ .............  56 
4.5.5   Other  ................................ ................................ ................................ .....................  56 
4.5.5.1   Investment, including in non -services  ................................ ................................ ...... 56 
4.5.5.2   Transparency  ................................ ................................ ................................ ....... 56 
4.6  Sector specific provisions on trade in services  ................................ ................................  57 
4.6.1   Computer services  ................................ ................................ ................................ ... 57 
4.6.2   Courier services  ................................ ................................ ................................ ....... 57 
4.6.3   Telecommunications  ................................ ................................ ................................ . 57 
4.6.4   Financial services  ................................ ................................ ................................ ..... 57 
4.6.5   International maritime services  ................................ ................................ .................  58 
5  GENERAL PROVISIONS OF THE AGREEMENT  ................................ ..............................  58 
5.1  Transparency  ................................ ................................ ................................ .............  58 
5.2  Current payments and capital movements  ................................ ................................ ..... 58 
5.3  Exceptions  ................................ ................................ ................................ .................  59 
5.3.1   General exceptions  ................................ ................................ ................................ .. 59 
5.3.2   Security exceptions  ................................ ................................ ................................ .. 59 
5.3.3   Balance -of-payments  ................................ ................................ ...............................  59 
5.3.4   Taxation  ................................ ................................ ................................ .................  59 
5.4  Accession and withdrawal  ................................ ................................ ............................  59 
5.5  Institutional framework  ................................ ................................ ...............................  59 
5.6  Dispute settlement  ................................ ................................ ................................ ..... 60 
5.7  Relationship with other agreements concluded by the Parties  ................................ ...........  61 
5.8  Government procurement  ................................ ................................ ............................  65 
5.9  Intellectual property rights  ................................ ................................ ..........................  66 
5.10  Competition  ................................ ................................ ................................ .............  68 
5.11  State -owned enterprises and designated monopolies  ................................ ....................  69 
5.12  Environment  ................................ ................................ ................................ ............  69 
5.13  Labour  ................................ ................................ ................................ ....................  70 WT/REG332/1  
 
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  5.14  Electronic commerce  ................................ ................................ ................................ . 70 
5.15  Small and medium -sized enterprises  ................................ ................................ ...........  70 
ANNEX 1  ................................ ................................ ................................ ........................  71 
ANNEX 2  ................................ ................................ ................................ ........................  80 
ANNEX 3  ................................ ................................ ................................ ........................  82 
 
  WT/REG332/1  
 
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  Key Facts  
 
Parties to the Agreement:  Costa Rica, El Salvador, 
Guatemala, Honduras, Nicaragua, 
Panama and the European Union  
 
Date of Signature:    29 June 2012  
 
Date of Entry into Force:  Application  of trade provisions   
 
 1 August 2013 for EU, Honduras, 
 Nicaragua and Panama  
     
 1 October 2013 for Costa 
 Rica and El Salvador  
     
 1 December 2013 for 
 Guatemala  
 
Date of Notification:   26 February 2013  
 
Full implementation:   1 January 2027  
 
 
1  TRADE ENVIRONMENT1 
1.1  Merchandise trade  
1.1.  In 2020, the collective GDP of the Central American Parties totalled Euro 221.7 billion and that 
of the European Union ((EU) Euro 13,301.2 billion.  
1.2.  In 2019, world trade rankings place the EU as 2nd largest importer and exporter (excluding 
intra-EU trade); collectively, Central American countries are the 25th largest importer and the 35th 
largest exporter. In 2018 imports of all the Parties were dominated by manufacturing - around 73% 
for the EU; for Central American countries, it represented between 74% (Costa Rica) and 65% (El 
Salvador and Panama) of imports. Manufacturing also accounted for the majority of EU exports 
(79%) and that of four Central American countries – 78% for Panama, 76% for El Salvador, 59% 
for Honduras and 56% for Costa Rica. Agricultural products were the major exports of Guatemala 
and Nicaragua, at 52% and 47% respectively. In 2019, EU figures place Central America as its 41st 
largest export market an d its 43rd largest supplier of imports. In turn, the EU ranked between 2nd 
and 6th largest export market for the Central American countries and between 2nd and 7th largest for 
origin of imports.  
1.3.  Chart 1.1 presents the trends in global and intra -Party merc handise trade between 2010 and 
2019. Over the period, the overall balance of EU global trade has fluctuated, with a small trade 
deficit recorded in 2018 -2019. Central American countries experienced a trade deficit throughout 
the period. Figures on bilatera l trade differ according to whether data for the Central American 
countries or the EU are used.2 In the former case, the figures show a constant trade deficit with the 
EU; EU data however also show a trade deficit for the EU with Central America except fo r 2015 and 
2019.  
 
1 Statistics from Comtrade (ranking and trade) on the basis of EU(28) (member States in 2019) , 
Eurostat and Instituto Nacional de Estadística y Censos (INEC) for Panama , and World Trade Profile (2021). 
GDP data, sourced from the World Bank, are given in current prices.  Exchange rates are sourced from the 
International Financial Statistics (IFS).  
2 Discrepancy might be due to differences in the collection and processing of trade data . WT/REG332/1  
 
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  Chart 1.1 EU-Central America: Merchandise bilateral and global trade, 2010 -2019  
 
Note:  Mirror data used for Honduras bilateral trade with EU for 2013.  
Source:  For EU, Eurostat. For Central America countries, UNSD Comtrade, except Panama (INEC) and 
Honduras 2013 global trade (Global Trade Atlas).  
 
1.4.  Chart 1.2 shows the commodity structure of trade between the EU and Central American 
countries, as well as of their global trade in the periods 2010 -2012 (inner circle) and 2017 -2019 
(outer circle) on the basis of Harmonized System (HS). While vegetable  product s maintained a stable 
share of Central America's global exports of 22% during the two periods, the EU's imports of 
vegetable  product s from Central American countries grew from 40% in 2010 -2012 to 51%in 2017 -
2019. Fruits (pineapple, bananas, cocoa etc. ) are one of EU's main  imports from C entral America, 
accounting for almost one-third of total imports in 2017 -2019 from Central America . In turn, more 
than half of imports of Central American countries from the EU consisted of chemicals and machinery 
– the same top two EU export sectors during the two periods (accounting for respectively 50% and 
52% during 2010 -12 and 2017 -2019).   
0510152025303540
05001,0001,5002,0002,500
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019A. EU 2010 -2019
(Euro Billions)
Imports from Central America (Right Axis)
Exports to Central America (Right Axis)
Total Imports
Total Exports
0510152025303540
020406080100120140160180200
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019B. Central America 2010 -2019 
(Euro Billions)
Imports from EU (Right Axis)
Exports to EU (Right Axis)
Total Imports
Total ExportsWT/REG332/1  
 
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  Chart 1.2 EU-Central America: Product composition of merchandise trade (by HS 
Section), annual average 2010 -2012 (inner circle) and 2017 -2019 (outer circle)  
 
Source:  Based on data from Eurostat, INEC and the UNSD, Comtrade database.  
 
1.1.1   Use of preferences  
1.5.  In recent years the European Union has start publishing information on the use of preferences 
under its regional trade agreements (RTAs) on the basis of "preference utilisation rates" (PURs). The 
PUR is defined as the ratio of preferential exports to preference eligible imports (or respectively 
exports), while eligibility is determined by comparing the applied MFN and preferential tariffs. 
Imports are considered only where a potential preference exists, i.e. where the applied preferential 
tariff is lower than the normally applied MFN tariff. The EU notes however that comparability betwee n 
the PUR on EU imports and exports is limited, given the different data sources.3 
 
3 PUR on imports is  based on data from Eurostat  and PUR on exports on data obtained by EU 
Delegations from national customs administrations and on partner countries'  tariffs included in th e Market 
Access Database , being therefore by definition non-harmonised. The European Commission's DG Trade  applies 
a number of validation rules to assess u sability of the data for the calculations on PURs on EU exports . See 
Trade Statistical Guide , August 2021, European Commission's DG Trade , 
https://trade.ec.europa.eu/doclib/d ocs/2013/may/tradoc_151348.pdf   
29 
25 9 6 6 25 24 
28 
8 7 7 25 CA's imports from EU (%)30
218663021 
25 
9 7 6 32EU's global imports (%)
19 
19 
12 7 7 37 16
15
12
8840CA's global imports (%)40
3973
38
51
9129414EU's imports from CA (%)
27 
15 
15 7 7 -29 26 
16 
16 6 6 31 EU's global exports (%)
CRI22 
13 
13 11 6 35 22
16
13 6934CA's global exports (%)
2010 -12: Euro 24 billion
2017 -19: Euro 34 billion2010 -12: Euro 6 billion
2017 -19: Euro 6 billion2010 -12: Euro 1,685 billion
2017 -19: Euro 1,966 billion
2010 -12: Euro 1,531 billion
2017 -19: Euro 1,958 billion2010 -12: Euro 3 billion
2017 -19: Euro 5 billion2010 -12: Euro 50 billion
2017 -19: Euro 67 billion
Animal or vegetable 
fats and oilsVegetable products
ChemicalsMineralsPrepared foodsTextiles
OtherLive animalsVehicles
MachineryBase metalsOpticalWT/REG332/1  
 
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  1.6.  Chart 1.3 illustrates the average PUR on imports from all Central American countries. Costa 
Rica makes the highest use of preferences on exports to the EU and Panama the le ast. In terms of 
EU exports, the highest use of preferences are recorded in the markets of Costa Rica and Honduras, 
and the lowest in Nicaragua.  
Chart 1.3 EU-Central America: PURs on imports and exports, avera ge 2016 -2020  
 
Note:  Data for EU(27) (excluding the United Kingdom).  
 PURs definition in accordance with the European Commission methodology.  
Source:  European Commission, DG Trade.  
 
1.2  Trade in services and investment  
1.7.  In 2019 the EU was the world's top expor ter and importer of commercial services (excluding 
intra-EU trade) while collectively Central America ranked 23rd for exports and 33rd for imports.  
1.8.  Chart 1.4 depicts the EU's global trade in commercial services during 2010 -2019. In 2019, the 
EU's global exports amounted to EUR 1,039 billion while its global imports were EUR 922 billion. 
Throughout this period the EU has been a net exporter of services  to the world with other business 
services and transport accounting for the largest categories of traded services. Chart 1.5 shows a 
mixed picture in terms of bilateral trade with Central America Parties collectively, with the EU being 
a net exporter of se rvices in 2010 -2011, 2013 -2014, 2016 and 2019, but running a services trade 
deficit in the other years. When individual countries are considered, the EU has run a services trade 
deficit with Panama since 2012, while with other countries it has generally be en a net exporter 
(except for four years as regards Costa Rica and one vis-à-vis Guatemala).  
CRI, 96%
SLV, 89%
GTM, 95%
HND, 91%
NIC, 91%
PAN, 76%PAN, 52%NIC, 21%
HND, 54%GTM, 35%SLV, 35%CRI, 54%PURs on 
Imports into EUPURs on 
Exports from EUWT/REG332/1  
 
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  Chart 1.4 EU: Trade in commercial services with Extra -EU, 2010 -2019  
 
Source:  EU authorities (2010 -2012) and Eurost at (2013 -2019) based on BPM6.  
 
Chart 1.5 EU: Total trade in services with Central America (2010 -2019)  
 
Source:  EU authorities (2010 -2012) and Eurostat (2013 -2019).  
Manufacturing services on physical inputs 
owned by others
Maintenance & repair services, n.i.e.
Transport services
Travel servicesInsurance and pension services
Financial services
Charges for the use of 
intellectual property n.i.e.Telecom, computer and information 
services
Other business servicesConstruction services
Personal, cultural and 
recreational services02004006008001,0001,200
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019A. EU imports 
(Euro Billion)
02004006008001,0001,200
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019B. EU exports 
(Euro Billion)
0.00.51.01.52.02.53.03.54.04.55.0
Exp Imp Exp Imp Exp Imp Exp Imp Exp Imp Exp Imp Exp Imp Exp Imp Exp Imp Exp Imp
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Euro Billion
Costa Rica El Salvador Guatemala Honduras Nicaragua PanamaWT/REG332/1  
 
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  1.9.  Chart 1.6 shows global trade in commercial services for Central America collectively for the 
period 2010 -2020. Throughout the period Central America was a net exporter of services, with trade 
peaking in 2019 - Euro 31 billion for exports and 16 billion for imports. In 2019, travel servic es 
accounted for the largest category of exported services (35%) and transport as the largest imported 
category (39%).  
Chart 1.6 Central America: Trade in commercial services with world, 2010 -2020  
 
Note:  No imports for Manufacturing services on physical inputs owned by others (2010 -2020).  
Source:  WTO Statistics Database based on BPM6. Exchange rates are sourced from the IFS.  
 
1.10.   Chart 1.7 shows EU's foreign direct investment (FDI) with the world (2010 -2018) and  with 
Central America (partial data for 2013 -2015). As regards the world, FDI flows peaked in 2015 but 
have thereafter been declining. Overall FDI stocks were stable in 2010 -2018, and throughout the 
period the EU has been a global net source of FDI. As reg ards bilateral FDI, limited figures show a 
significant increase in stocks and flows in 2014 and 2015, with the EU remaining a net source of 
FDI. Chart 1.8 shows that Central America has remained a net recipient of FDI stocks and flows from 
the world over t he period 2010 -2019. Flows increased steadily until 2015, before declining 
somewhat.  
Manufacturing services on physical inputs 
owned by others
Transport services
Travel servicesInsurance and pension services
Financial services
Charges for the use of intellectual 
property n.i.e.Telecom, computer and information 
services
Other business servicesConstruction services
Maintenance & repair services, n.i.e.
Personal, cultural and recreational 
services05101520253035
2010 2012 2014 2016 2018 2020A. Central America imports from world
(Euro Billion)
05101520253035
2010 2012 2014 2016 2018 2020B. Central America exports to world
(Euro Billion)WT/REG332/1  
 
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  Chart 1.7 EU: FDI stock and flow with Central America and extra -EU 
 
Source:  Eurostat (global FDI stock and flow for 2016 -2018), EU authorities for the rest of the data.  
 
Chart 1.8 Central America: FDI stock and flow with world, 2010 -2019  
 
Source:  UNCTAD. Exchange rates are sourced from the IFS.  
  
05101520253035404550
2013 2014 2015FDI stock with Central America
(Euro Billion ) 
Outward Inward
0.00.51.01.52.02.53.03.5
2013 2014 2015FDI flow with Central America
(Euro Billion) 
Outward Inward
01,0002,0003,0004,0005,0006,0007,0008,0009,000
2010 2011 2012 2013 2014 2015 2016 2017 2018FDI stock with extra -EU
(Euro Billion )
Outward Inward
-200-1000100200300400500600700800900
2013 2014 2015 2016 2017 2018FDI flow with extra -EU
(Euro Billion ) 
Outward Inward
020406080100120140160
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019FDI stock with world
(Euro Billion ) 
Outward
Inward
-2024681012
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019FDI flow with world
(Euro Billion) 
Outward
InwardWT/REG332/1  
 
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  2  CHARACTERISTIC ELEMENTS OF THE AG REEMENT  
2.1  Background information  
2.1.  The Agreement establishing an Association between the European Union and its Member 
States, on the one hand, and Central America on the other (hereafter the "Agreement") was signed 
on 29 June 2012 by Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama 
(hereafter referred to as "Central America") and the European Union. The Trade Pillar of the 
Association Agreement (Part IV) - with the exception of Article 2714 - has been applied since  1 
August 2013 for the EU, Honduras, Nicaragua and Panama; since 1 October 2013 for Costa Rica and 
El Salvador; and since 1 December 2013 for Guatemala. Following the accession of Croatia to the 
EU on 1 July 2013, the Parties negotiated a Protocol for extending the Agreement to Croatia, signed 
on 26 November 2020; as of January 2022 , the Protocol was not yet in force.  Followi ng the 
withdrawal of the United Kingdom from the EU, as of 1 January 2021 the Agreement applies between 
the EU  and the Central American Parties.  
2.2.  The Agreement was notified to the WTO jointly by its Parties on 27 February 2013, under 
Article  XXIV:7(a) of t he GATT 1994 for its goods aspects, and Article V of the GATS for its services 
aspects. An updated notification with the respective dates of entry into force of the Trade Pillar was 
circulated on 21 March 2021 (WT/REG332/N/1/Add.1 -S/C/N/680/Add.1).  
• The text of the Agreement is available at:  
https://eur -lex.europa.eu/legal -content/EN/ALL/?uri=CELEX:22012A1215(01)  
https://www.comex.go.cr/tratados/aacue/  
http://infotrade.minec.gob.sv/ue/  
https://www.mineco.gob.gt/node/538   
https://sde.gob.hn/wp -content/uploads/2017/08/01 -Acuerdo -1.pdf 
https://www.mific.gob.ni/Comercio -Exterior/Negociaciones -Comerciales/Acuerdos -Comerciales -
Internacionales -Vigentes/Uni%C3%B3n -
Europea?folderId=371&view=gridview&pageSize=2147483647   
https://mici.gob.pa/tratados -comerciales -vigentes/acuerdo -de-asociacion -entre-centroamerica -y-
la-union -europea -ada 
 
• The text of the Protocol is available a t: 
https://eur -lex.europa.eu/legal -
content/EN/TXT/?uri=uriserv%3AOJ.L_.2021.039.01.0001.01.ENG&toc=OJ%3AL%3A2021%3A03
9%3AFULL  
 
2.3.  The Agreement is comprehensive and goes well beyond trade related issues. Box 2.1 provides 
the structure of the Agreement; a detailed table of contents is provided for Part IV on Trade. Many 
of the trade issues of Part IV are complemented with pr ovisions on cooperation among the Parties 
specified in the Agreement's Part III.  
Box 2.1 European Union -Central America Association Agreement  
 
Preamble  
Part I  General and Institutional Provisions (Articles 1 -11) 
Part II  Political Dialogue (Articles 12 -23) 
Part III  Cooperation (Articles 24 -76) 
Part IV  Trade (Articles 77 -351)  
  Title I  Initial Provisions (Articles 77 -79) 
  Title II  Trade in Goods (Articles 80 -158)  
   Chapter 1  National Treatment and Market Access for Goods  
 
4 Article 271 , which deals with criminal sanctions in case of infringement of intellectual property rights,  
is not applicable pending the ratification of the Agreement by all Parties . However, domestic provisions apply . WT/REG332/1  
 
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     Chapter 2  Trade Remedies  
   Chapter 3  Customs and Trade Facilitation  
   Chapter 4  Technical Barriers to Trade  
   Chapter 5  Sanitary and Phytosanitary Measures  
   Chapter 6  Exceptions Related to Goods  
  Title III Establishment, Trade in Services and Electronic Commerce (Articles 159 -203)  
   Chapter 1  General Provisions  
   Chapter 2  Establishment  
   Chapter 3  Cross -Border Supply of Services  
   Chapter 4  Temporary Presence of Natural Persons For Business Purposes  
   Chapter 5  Regulatory Framework  
   Chapter 6  Electronic Commerce  
   Chapter 7  Exceptions  
  Title IV  Current Payments and Capital Movements (Articles 204 -208)  
  Title V  Government Procurement (Articles 209 -227)  
  Title VI  Intellectual Property (Articles 228 -276)  
   Chapter 1  Objectives and Principles  
   Chapter 2  Standards Concerning Intellectual Property Rights  
   Chapter 3  Enforcement of Intellectual Property Rights  
   Chapter 4  Institutional Provisions  
  Title VII  Trade and Competition (Articles 277 -283)  
  Title VIII  Trade and Sustainable Development (Articles 284 -302)  
  Title IX  Regional Economic Integration (Articles 303 -307)  
  Title X  Dispute Settlement (Articles 308 -328)  
   Chapter 1  Objective and Scope  
   Chapter 2  Consultations  
   Chapter 3  Dispute Settlement Procedures  
   Chapter 4  General Provisions  
  Title XI  Mediation Mechanism for Non -Tariff Measures (Articles 329 -337)  
   Chapter 1  Scope  
   Chapter 2  Procedure Under the Me diation Mechanism  
   Chapter 3  Implementation  
   Chapter 4  General Provisions  
  Title XII  Transparency and Administrative Procedures (Articles 338 -) 
  Tittle XIII  Specific Tasks in Trade Matters of the Bodies Established under this Agreement 
(Articles 345 -348)  
  Title XIV  Exceptions (Articles 349 -351)  
Part V  Final Provisions (Articles 352 -363)  
Annexes   
Annex I  Elimination of Customs Duties  
Annex II  Concerning the definition of the concept of “originating products” and methods of 
administrative co -operation  
Annex III  Mutual Administrative Assistance in Customs Matters  
Annex IV  Special Provisions on Administrative Co -operation  
Annex V  Management of Administrative Errors  WT/REG332/1  
 
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  Annex VI  Competent Authorities  
Annex VII  Requirements and provisions for approval of establishments for products of animal origin  
Annex VIII  Guidelines for conducting verifications  
Annex IX  Contact Points and Web -Sites  
Annex X  Lists of Commitments on Establishment  
Annex XI  Lists of Commitments on Cross -Border Supply of Services  
Annex XII  Reservations on Key Personnel and Graduate Trainees of the EU Party  
Annex XIII  Lists of Commitments of the Republics of the CA Party on Key Personnel and Graduate 
Trainees  
Annex XIV  Lists of Commitments of the Republics of the CA Party on Business Service Sellers  
Annex XV  Enquiry Points  
Annex XVI  Government Procurement  
Annex XVII  List of names to be applied for protection as geographical indications in the territory of the 
Parties  
Annex XVIII  Protected geographical indications  
Annex XIX  List of products referred to in paragraph 4 of Article 306  
Annex XX  List of Central American Technical Regulations (RTCA) in the process of harmonisation  
Annex XXI  Sub-Committees  
Declarations  
 Joint Declarations  
 - of Costa Rica and the European Union to Chapter 1 of Title II (Trade in Goods) of the Agreement  
 - on Article 88 of Chapter 1 of Title II (Trade in Goods)  
 - on EU Party's customs unions  
 - concerning the Principality of Andorra  
 - concerning the Re public of San Marino  
 - concerning derogations  
 - concerning the revision of the rules of origin contained in Annex II  
 - concerning the revision of the rules of origin applicable to products of Chapters 61 and 62 of the HS  
 - concerning temporal use of additional non -originating materials for products of Chapters 61 and 62 of the 
HS 
 - Names that have been applied for registration as geographical indications in a Republic of a CA Party  
 Unilateral Declarations  
Declaration of the EU Party on data protection of certain regulated products  
El Salvador´s Unilateral Declaration on Articl e 290 “Trade in Fish Products” of Title VIII (Trade and Sustainable 
Development) of Part IV of this Agreement  
Protocol on Cultural Cooperation  
 
2.4.  In Article 77 the Parties indicate the establishment of a free trade area consistent with GATT 
Article XXIV and GATS Article V. They also reaffirm their rights and obligations with respect to each 
other under the WTO Agreement in force at the time of the Agreement's finalization . 
2.5.  The Central American Parties have agreed in Article 11 of the Protocol for ext ending the 
Agreement to Croatia  "not to make any claim, request or referral nor to modify or withdraw any 
concession pursuant to GATT 1994 Articles XXIV.6 and XXVIII or GATS Article XXI in relation to the 
accession of Croatia to the European Union".  
2.6.  Article 358 provides for a possible broadening of the Agreement upon mutual agreement by 
the Parties.  As of January 2022 , no development has taken place.   WT/REG332/1  
 
- 15 - 
 
  2.7.  For ease of reference, in this document the reference to a "Title" under the Agreement is to be 
understood as a title under Part IV. Whenever other Parts are of relevance these would be specifically 
named.  
3  PROVISIONS ON TRADE IN GOODS  
3.1  Import duties and ch arges, and quantitative restrictions  
3.1.1   General provisions  
3.1.  The Agreement foresees the elimination of customs duties in accordance with the Parties' 
Schedules over a transition period lasting a maximum of 15 years (Article 83 Sections A and B of 
Annex I). The first reduction took place at entry into force for each Party in 2013; thereafter, 
instalments are effective on 1 January, with the last one in 2027. There are in total three Schedules 
– EU, Central American countries excluding Panama, and Panama.  
3.2.  Tariffs are reduced from the base rate specified in the Parties' schedules – generally the MFN 
rates of 20075 (using Harmonized System (HS) 2007). Article 84 prohibits increasing, or adopting 
new, import duties on originating products, unless (i) it had been prev iously unilaterally reduced, 
and up to levels not higher that those specified under the liberalization programme; (ii) authorized 
following a WTO dispute; or (iii) in the case of excluded goods in order to align to a common external 
tariff.  
3.3.  If an MFN rate is lower than the preferential rate, it shall be applied instead of the preferential 
rate. 
3.4.  National treatment on trade in goods in terms of GATT Article III - which is incorporated into 
the Agreement - applies as per Article 85.  
3.5.  Except as otherwise provid ed for in the Agreement 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 (Article 86). Fees and other charges imposed in connection with importation  and 
exportation are in accordance with Article VIII of the GATT 1994 (Article 87). Fees and charges shall 
not be imposed for consular services (Article 118.1.h).  
3.6.  In accordance with the Joint Declaration of Costa Rica and the European Union to Chapter 1 of  
Title II (Trade in Goods) of this Agreement , Costa Rica committed to review its internal taxes on 
carbonated and alcoholic beverages under HS 22.02 and 22.03 within one year from the Agreement's 
entry into force; a grace period of four years was set for a  similar review for alcoholic beverages 
classified under HS 22.04 -22.08.  While t he tax on carbonated soft drinks (HS 22.02 ) has been  
modified in May 2012,6 as of January 2022  no change occurred in relation to alcoholic  beverages 
under H S 22.03  and 22.04 -22.08.  
3.7.  In accordance with the Joint Declaration on EU Party's customs unions , the Central American 
countries have been invited to enter into negotiations with States having a customs union with the 
EU – at that point in time, this concerned Turkey. As of January 2022 , no such negotiations had 
been launched . 
3.8.  On trade between the Pa rties goods are valued in accordance with the WTO Agreement on 
Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 (Article 121).  
3.9.  A Sub -Committee on Market Access for Goods is established as per Article 91.  
3.1.2   Liberalization of t rade and tariff lines  
3.10.   Tariffs are eliminated or reduced in accordance with the Parties' schedules of liberalization 
contained in Annex I, on the basis of 18 categories, of which six are common to both Parties.  
 
5 For El Salvador, MFN rates of 2008.  
6 Law 9036 of 11 May 2012, which amended Article 6 of Law 5792 . WT/REG332/1  
 
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  3.11.   The EU has a single liberalization schedule f or all Central American countries. In 2013, the 
EU's applied MFN tariff comprised 9,306 lines at the eight -digit level, of which 972 lines were non -ad 
valorem  (specific, compound, mixed or other).  
3.12.   Table 3.1 shows the tariff elimination commitments by the EU under the Agreement. Prior to 
its entry into force, 28.7% of EU's tariff lines were duty -free on an MFN basis, accounting for between 
66% (Pa nama) to 94% (Honduras) of imports from Central American countries during 2010 -12. 
Following entry into force, an additional 62.6% of the tariff became duty -free. Tariff elimination will 
be completed in 2022, with an additional 0.7% of tariff lines becomin g duty -free. Upon full 
implementation, a total of 465 tariff lines, corresponding to 5% of the tariff, will remain dutiable. 
These lines accounted for a negligible amount of imports from Costa Rica, Honduras and Nicaragua; 
1% of imports from Panama; 2% of imports from El Salvador and 4% of imports from Guatemala 
during 2010 -2012.  
Table 3.1 EU: Tariff elimination commitments under the Agreement and corresponding 
average trade  
Duty 
phase -
out 
period  No. 
of 
lines  % of 
total 
lines 
in 
EU's 
tariff 
sche -
dule EU's imports from Central America (2010 -2012)  
Value (Euro million)  % Imports  CRI 
SLV 
GTM 
HND 
NIC 
PAN 
CRI 
SLV 
GTM 
HND 
NIC 
PAN 
2013  
(MFN)  2,675  28.7 4,936  160 248 624 137 229 90 88 81 94 92 66 
2013 5,823  62.6 303 17 47 35 11 62 6 9 15 5 8 18 
2015 57 0.6 0 0 1 0 0 1 0 0 0 0 0 0 
2017 18 0.2 0 0 0 0 0 0 0 0 0 0 0 0 
2019 204 2.2 0 0 0 0 0 0 0 0 0 0 0 0 
2022 64 0.7 230 0 1 3 0 52 4 0 0 0 0 15 
Remain  
dutiable  465a 5.0 2 5 11 0 0 3 0 2 4 0 0 1 
TOTAL  9,306  100 5,471  181 308 662 149 347 100 100 100 100 100 100 
a Including seven tariff lines subject to the entry price system.  
Note:  353 tariff lines in the excluded category reflect the MFN 2013 rate. This process is in accordance 
with the methodology applied by the Secretariat across all Factual Presentations where it aims to 
assess the margins of preference with respect to MFN duties.  
 Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2012 nomenclatur e.  
Source:  WTO estimates based on data provided by the EU authorities and the WTO -IDB. 
 
3.13.   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 encompa ss a common schedule (with 
a few exceptions) for the original CACM members and a schedule for Panama. In 2013, except for 
nine tariff lines for Panama, all Central America's applied MFN tariffs were ad valorem . 
3.14.   Table 3.2 shows the tariff elimination commitments by each of the Central American countries 
towards the EU. Reflecting the largely harmonized CET for the five original CACM members, prior to 
the entry into force o f the Agreement around 48% of their tariff lines were already duty -free on an 
MFN basis (ranging from 46.4% for Nicaragua to 48.7% for Costa Rica); the corresponding figure 
for Panama was 34.8%. In terms of bilateral trade, MFN duty -free lines represented 37.2% of 
imports into Panama from the EU, 61% of imports into El Salvador, 64.1% into Guatemala and 
around 73% of imports into Costa Rica, Honduras and Nicaragua.  
3.15.   Catching up with the liberalization of its CACM partners, Panama liberalized a further 22.2%  
of the tariff upon the Agreement's entry into force, while for the original CACM members the WT/REG332/1  
 
- 17 - 
 
  corresponding figures were below 10% of lines. Following such liberalization, around two -thirds of 
imports from the EU by all CACM members were duty -free.  
3.16.   Upon f ull implementation in 2027, Costa Rica and Guatemala will have 4% of lines remaining 
dutiable, Honduras 4.1%, Nicaragua 4.9%, Panama 4.95% and El Salvador 5.1%. Dutiable lines 
would account for less than 1.5% of imports during 2010 -12 from the EU by Costa Rica, El Salvador, 
Guatemala and Panama, 2.2% of imports by Nicaragua and 2.7% of imports by Honduras.  
Table 3.2 Central America: Tariff elimination commitments under the Agreement and 
corresponding average tr ade 
Duty phase -
out 
period  No of 
lines  % of 
total 
lines in 
tariff 
schedule  Value of 
imports 
from EU  
(2010 -
2012) a 
Euro 
million  % of 
total 
imports 
from 
from  
EU 
(2010 -
2012)  No of 
lines  % of 
total 
lines in 
tariff 
schedule  Value 
of 
imports 
from 
EU  
(2010 -
2012)a 
Euro 
million  % of 
total 
imports 
fro 
EU 
(2010 -
2012)  
  COSTA RICA  EL SALVADOR  
2013 (MFN)  3,195  48.7 1,166.0  73.7 3,452  47.8 278.5  61.0 
2013 119 1.8 21.2 1.3 601 8.3 97.1 21.3 
2017 461 7.0 110.3  7.0 - - - - 
2018 2 0.0 14.6 0.9 - - - - 
2019 2 0.0 0.2 0.0 2 0.0 0.0 0.0 
2022 2,263  34.5 165.3  10.5 2,487  34.5 55.1 12.1 
2025 195 3.0 68.1 4.3 252 3.5 17.1 3.7 
2027 61 0.9 17.4 1.1 55 0.8 3.6 0.8 
Remain dutiable  263 4.0 18.0 1.1 366 5.1 5.4 1.2 
TOTAL  6,561  100.0  1,581.0  100.0  7,215  100.0  456.9  100.0  
 GUATEMALA  HONDURAS  
2013 (MFN)  3,095  47.2 503.6  64.1 3,088  47.1 233.0  72.7 
2013 119 1.8 11.7 1.5 121 1.8 3.7 1.2 
2017 474 7.2 105.1  13.4 454 6.9 19.3 6.0 
2018 2 0.0 5.5 0.7 2 0.0 1.2 0.4 
2019 2 0.0 0.0 0.0 2 0.0 0.0 0.0 
2022 2,348  35.8 108.6  13.8 2,370  36.1 39.5 12.3 
2025 197 3.0 33.4 4.2 194 3.0 8.0 2.5 
2027 61 0.9 8.8 1.1 62 0.9 7.5 2.3 
Remain dutiable  263 4.0 9.2 1.2 268 4.1 8.5 2.7 
TOTAL  6,561  100.00  785.9  100.00  6,561  100.0  320.7  100.0  
 NICARAGUA  PANAMA  
2013 (MFN)  3,565 46.4 122.7  73.5 3,123  34.8 233.0  37.2 
2013 169 2.2 2.4 1.4 1,986  22.1 208.8  33.3 
2015 1 0.0 0.0 0.0 3 0.0 0.0 0.0 
2017 481 6.3 8.6 5.2 352 3.9 28.1 4.5 
2018 2 0.0 0.7 0.4 1 0.0 0.0 0.00 
2019 2 0.0 0.0 0.0 2 0.0 - - 
2021 - - - - 1 0.0 0.0 0.0 
2022 2,750  35.8 17.0 10.2 2,623  29.2 92.1 14.7 
2023 - - - - 2 0.0 0.0 0.0 
2025 265 3.4 10.0 6.0 286 3.2 26.7 4.3 
2027 69 0.9 1.8 1.1 155 1.73 28.5 4.6 
Remain dutiable  379 4.9 3.7 2.2 444 4.95 9.4 1.5 
TOTAL  7,683  100.0  166.9  100.0  8,978  100.0  626.7  100.0  
a For Costa Rica, Nicaragua and Panama, import coverage is from HS chapters 1 -97. 
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on HS 2007 nomenclature (CRI, GTM, HND), HS 2012 (PAN) and HS 2017 (SLV and NIC).  
Source:  WTO estimates based on data provided by the Parties and the WTO -IDB. WT/REG332/1  
 
- 18 - 
 
  3.1.3   Liberalization schedule  
3.1.3.1   European Union  
3.17.   Chart 3.1 shows the EU's tariff liberalization by HS section. Products of four HS Sections – 
both agricultural and industrial7 - will remain subject to duties following the Agreement's full 
implementat ion. Lines liberalized between entry into force and 2022 cover all HS Sections except X 
and XXI, already fully free on an MFN basis in 2013. Products remaining dutiable are generally 
subject to alternate rate of duties with no preference on the specific ra te, while in some instances 
the ad valorem  part has been eliminated.  
Chart 3.1 EU: Average of dutiable rates, by HS Section  
 
Note:  Tariff lines subject to in -quota rates are excluded in the computation; for the calculation of 
averages, specific duties are excluded, and the ad valorem  parts of alternate rates are included .  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates ba sed on data provided by the EU authorities.  
 
3.18.   The average ad valorem  rates remaining dutiable by HS Chapter applied by the EU to imports 
from Central American countries at the end of the implementation period are shown in Chart 3.2. 
These are agricultural and industrial products, subject either to specific or alternate rates; some 
products in HS Chapters 7 and 8 are also subject to the entry price system. Products of Chapt er 7, 
18, 19 and 20 benefit from preferences, with the ad valorem  parts of alternate rates being 
eliminated. The Chart shows in Chapter 7 a preferential rate higher than the MFN rate; from the five 
lines subject to alternate rates at the Agreement's entry into force, tariffs would only apply to one 
line by the end of implementation.8 No preferential treatment is granted in Chapters 2, 29, 35 and 
38. The highest number of lines remaining dutiable - 145 - is found in Chapter 2; in contrast, in 
Chapter 22 onl y two lines remain dutiable.  
 
7 But only agricultural products when the definition of the WTO Agreement on Agriculture  is used.  
8 In addition, one line will remain subject to the entry pr ice system; the ad valorem  part of the alternate 
rates applying to another three lines were eliminated.  
0%10%20%30%40%50%60%70%80%90%100%
I II III IV V VI VII VIII IX X XI XII XIII XIV XV XVI XVII XVIII XIX XX XXI Total% tariff lines
HS Section
Free MFN, 2013 Free EIF, 2013 Free 2015-2022 Remain Dutiable Avg. MFN tariff (%)WT/REG332/1  
 
- 19 - 
 
  Chart 3.2 EU: Average of dutiable rates and number of dutiable lines, by HS Chapter  
 
a Subject to non -ad valorem  duties.  
b One product subject to entry prices, others subject to TRQs.  
c Subject to entry prices.  
Note:  For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by the EU authorities.  
 
3.1.3.2   Central American countries  
3.19.   Chart 3.3 shows Central America's tariff liberalization by  HS section. A number of agricultural 
products of HS Sections I -IV will remain dutiable in all of the six Central American Parties following 
the Agreement's full implementation. As regards all these sections/Parties, the average final dutiable 
rate will va ry from 10.4% (Section III in Honduras) to 52.7% (Section I in Costa Rica). In addition, 
68 tariff lines in HS Sections V, VII, XIII, XV -XVI will remain subject to duties in El Salvador (average 
final dutiable rates between 1.4% and 10.3%) and one line in HS Section XI in Panama (at 2.5%).  
020406080100120140160
0%2%4%6%8%10%12%14%16%18%20%
2 4a 7b 8c 10a 11a 16 17 18a 19a 20a 21a 22a 23a 29 35 38No. lines TariffHundreds
HS Chapter
Preferential tariff MFN tariff Number of linesWT/REG332/1  
 
- 20 - 
 
  Chart 3.3 Central America: Tariff elimination under the Agreement, by HS Section   
 
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on t he HS 2007 (CRI, GTM, HND), HS 2012 (PAN) and HS 2017 (SLV, NIC) nomenclatures.  
Source:  WTO estimates based on data provided by Parties' authorities.  
0510152025
0%20%40%60%80%100%
IIIIII IV VVIVIIVIII IX XXIXIIXIII XIV XVXVIXVIIXVIII XIX XXXXITotal
Average MFN (%)% tariff  lines
HS SectionCosta Rica
Free MFN, 2013 Free EIF, 2013 Free 2014-2027 Remain dutiable Avg. MFN tariff (%)010203040
0%20%40%60%80%100%
IIIIII IV VVIVIIVIII IX XXIXIIXIII XIV XVXVIXVIIXVIII XIX XXXXITotal
Average MFN (%)% tariff  lines
HS SectionEl Salvador
05101520
0%20%40%60%80%100%
IIIIII IV VVIVIIVIII IX XXIXIIXIII XIV XVXVIXVIIXVIII XIX XXXXITotal
Average MFN (%)% tariff  lines
HS SectionGuatemala
051015
0%20%40%60%80%100%
IIIIII IV VVIVIIVIII IX XXIXIIXIII XIV XVXVIXVIIXVIII XIX XXXXITotal
Average MFN (%)% tariff  lines
HS SectionHonduras
0510152025
0%20%40%60%80%100%
IIIIII IV VVIVIIVIII IX XXIXIIXIII XIV XVXVIXVIIXVIII XIX XXXXITotal
Average MFN (%)% tariff  lines
HS SectionPanama05101520
0%20%40%60%80%100%
IIIIII IV VVIVIIVIII IX XXIXIIXIII XIV XVXVIXVIIXVIII XIX XXXXITotal
Average MFN (%)% tariff  linesNicaraguaWT/REG332/1  
 
- 21 - 
 
  Chart 3.4 Central America: Average of dutiable rates, by HS Chapter  
 
Based on the HS 2007 (CRI, GTM, HND), HS 2012 (SLV, PAN) and HS 2017 (SLV, NIC) nomenclatures.  
Source:  WTO estimates based on data provided by Parties' authorities and the WTO -IDB. 
3.20.   Chart 3.4 above presents the lines remaining dutiable by Chapter in Central American 
countries, covering a total of 26 Chapters. In all Parties preferences are not granted for products of 
0%10%20%30%40%50%60%
247910111215161718192021222324Tariff rate
HS ChapterCosta Rica
Preferential=MFN Preferential MFN0%10%20%30%40%50%60%
24791011121516171819202122232425273970728587Tariff 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%
247910111215161718192021222324Tariff rateHundreds
HS ChapterHonduras
0%10%20%30%40%50%60%
247891011121516171819202122232462Tariff rateHundreds
HS ChapterPanamaWT/REG332/1  
 
- 22 - 
 
  seven  Chapters – coffee and tea,  cereals, oil seeds, preparations of meat or fish, cocoa, food residues 
and tobacco (Chapters 09, 10, 12, 16, 18, 23 and 24). Products of nine chapters - fruits and nuts, 
salt, mineral fuels and oils, plastics, articles of apparel, glass and glassware, iro n and steel, electrical 
machinery and vehicles (Chapters 8, 25, 27, 39, 62, 70, 72, 85 and 87) remain dutiable only in one 
Central America country. For the other 10 Chapters, some preferential treatment is in place.  
3.1.4   Tariff rate quotas  
3.21.   Both Parties provide d each other tariff -rate quotas (TRQs) for certain agricultural products 
(Parties' Appendixes to Annex I). TRQs are administered by each Party in accordance with their 
respective internal regulations. Imports under TRQs are subject to the presentation of a n export 
certificate issued by the relevant competent authority. Annex 2 to this document provides additional 
detail on TRQs under the Agreement.  
3.22.   The EU grants Central America TRQs for garlic, manioc starch, sweet corn, mushrooms, rice, 
beef, sugar and goo ds with high sugar content, and bulk rum (Appendix 2 to Annex I). TRQs are 
generally regional9 while for beef, sugar and rum some country -specific allocation is provided for. 
Recent data from the EU10 shows full utilization by Central America of the sugar  and bulk rum quota 
(both of which exclude Panama), and recent modest utilization of the manioc starch quota  (2% in 
2019, 18% in 2018)  while the rest of the quotas had not been utilized.  
3.23.   Central America grants the EU TRQs for cured hams and streaky bacon;  powdered milk; whey; 
cheese; and prepared or preserved swine meat (Appendix 1 to Annex I). Recent data shows stable 
utilization levels, except for a drop for cured hams and streaky bacon in Panama. There is significant 
use of milk powder quotas in Guatema la, Honduras and Panama, as well as cheese in Costa Rica 
and Panama , despite important fluctuations from year to year in the utili zation rate . The use of 
quotas among the different CA countries is uneven, both by type of product, by year and by 
country.11 
3.24.   The treatment provided by the EU to imports of bananas from the Republics of the CA Party 
is sui generis  - see Section 3.5.1.  
3.2  Rules of origin  
3.25.   The rules of origin are set out in Annex II to the Agreement. A product is "originating" 
(Article  2) when:  
a. it is wholly obtained in the EU or in Central America; or  
b. it is obtained in the EU or in Central America incorporating materials which have not 
been wholly obtained there but have undergone sufficient working or processing in the 
Parties. In accordance with prod uct-specific requirements found in Appendix 2 to Annex 
II. These include criteria requiring either a change in tariff classification (CTC), a 
maximum value of non -originating materials, or that specific processing takes place in 
a Party. Appendix 2A to Ann ex II lists alternative, less strict rules of origin for certain 
products to the benefit of Central America Parties; in most cases these are subject to 
annual quotas.  
3.26.   CTC at the heading level is the most commonly used requirement. Thresholds for the 
maximu m value -added content of non -originating material are generally set at 40%, though 10% 
until 50% also apply.  
3.27.   The Agreement provides for bilateral cumulation between the Parties and diagonal cumulation 
between Central America and Bolivia, Colombia, Ecuador  and Peru, under the conditions specified in 
Article 3:4, in particular that the working or processing in the Parties goes beyond insufficient 
 
9 The distribution of the regional TRQs is agreed by Central America Parties .  
10 Minutes of the meeting of the Sub -committee on Market Access of 10 -11 and 15 June 2021, 
https://trade.ec.europa.eu/doclib/docs/2021/july/tradoc_159698.pdf . Central America reports differences in 
the figures, but confirms that sugar and bulk rum quotas are the ones that are mostly used.  
11 Ibid. WT/REG332/1  
 
- 23 - 
 
  operations.12 In accordance with two Joint Declarations, all products originating in the Republic of 
San Marino and product s of HS Chapters 25 to 97 originating in the Principality of Andorra shall be 
considered as originating in the  EU.   
3.28.   The absorption principle applies under the Agreement; thus, no account is taken of 
non-originating materials incorporated in another produc t which has acquired originating status 
(Article 5:1).  
3.29.   A de minimis/ tolerance rule (Article 5:2) applies so that the good is considered originating if 
the value of non -originating materials do not exceed 10% of the ex -works price of the product, 
provided n one of the percentage thresholds are exceeded. However, this does not apply to:  
a. textiles of HS Chapters 50 to 63, for which the tolerance generally sets a non -complying 
threshold in terms of a maximum weight of 10% of all basic textile materials used 
(Appe ndix 1); nor  
b. wholly obtained products – thought it applies in cases where wholly obtained materials 
are used in the manufacture of a product.  
3.30.   Insufficient working or processing operations are described in Article 6 of Annex II.  
3.31.   Outward -processing is autho rized (Article 11:3 -8), 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 provision does not apply to textiles and clothing of Chapters 5 0-
63 nor to products that have acquired originating status through the use of the tolerance rule.  The 
processing outside the Parties must be done on goods exported from the Parties, which are wholly 
obtained or have been processed beyond insufficient opera tions in a Party.  
3.32.   Transit through non -parties is authorized provided the product remains under the surveillance 
of the customs authorities in the country of transit or warehousing and it does not undergo 
operations other than unloading, reloading, or any o ther operation to preserve it in good condition 
(Article 12:1). Evidence of direct transport has to be supplied  to the customs authorities of the 
importing country.  
3.33.   Duty drawback is authorized.  
3.34.   A Sub -Committee on Customs, Trade Facilitation and Rules of Or igin is established in 
Article  123. 
3.35.   A number of Joint Declarations are related to rules of origin as referred to in 
paragraph  3.27.   above ; one pro viding for possible derogations to the rules of origin for the 
development of existing, or the creation of new, industries in a Central American Party;13 one 
providing for a revision of the rules of origin upon request of either Party; one providing for th e 
extension to Central American Parties of any relaxation of the EU's rules of origin applicable to 
products of HS Chapters 61 and 62 under its GSP regime for LDCs; and one concerning temporal 
use by the Central American Parties of additional non -originati ng materials for products of HS 
Chapters 61 and 62. Decisions under any of these declarations are taken by the Association 
Committee.  As of January 2022, no  requests have been made in any of these issues.    
Box 3.1 Rules of Origin at a Glance  
• Product -specific rules:  
o CTC, generally a change of heading  
o Values -added at 40% (or 10% - 50% in few cases)  
o Processing operation requirements in fewer cases  
• Bilateral and diagonal cumulation.  
• Absorption principle.  
 
12 Following the withdrawal of the United Kingdom from the EU, cumulation with the UK is no more 
possible.  A possible extension of dia gonal cumulation to Venezuela is being discussed in the relevant 
Committee.   
13 The derogations could only apply to the Appendices to Annex II.  WT/REG332/1  
 
- 24 - 
 
  • Tolerance rules.  
• Outward -processing authorized.  
• Territoriality provisions.  
 
3.3  Export duties and charges, and quantitative restrictions   
3.36.   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 good desti ned to 
the territory of the other Party as otherwise provided for in the Agreement (Article 86).  
3.37.   Duties and charges imposed in connection with the exportation of goods to the other Party 
are prohibited except otherwise provided for in the Agreement (Article 88).   
3.38.   The Joint Declaration on Article 88 of Chapter 1 of Title II (Trade in Goods)  establishes that  
Costa Rica and Guatemala may continue to apply export d uties ( Guatemala on coffee  and Costa Rica 
on bananas, coffee and live cattle ). Guatemala has since eliminated these export duties, while they 
are still in force for Costa Rica. The necessity of maintaining these measures will be examined by 
the Parties, at the latest, ten years after the entry into force of the Agreemen t. Other Parti es do not 
apply export duties.   
3.4  Regulatory provisions on trade in goods  
3.39.   Some of the provisions detailed below are dealt with in the Agreement under a two -track 
approach: disciplines are spelled -out in Title II on trade in goods, while Title IX deals with r egional 
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 within each 
of the Parties (Article 303).  
3.40.   Article 307 (Implement ation) provides a follow -up for the regional integration interface with 
the disciplines on customs procedures, SPS and TBT that comprises the following:  
a. yearly progress reports and working programs by the Central American Parties on 
compliance with the req uirements of Articles 304, 305 and 306 that benefitted from 
grace periods, until these are fully implemented (see paragraphs 3.51. , 3.57.  , 
3.81.  below ). These have been submitted as required ; 
b. the Parties are to consider the inclusion of further areas to Title IX by July 2018 . As of 
January 2022 , that has not been the case ; and 
c. commitments on regional integration assumed by a Central American Party under 
Title IX are carved -out from the Agreement's dispute settlement procedure s. 
3.4.1   Standards  
3.4.1.1   Sanitary and phytosanitary measures  
3.41.   Chapter 5 of Title II covers SPS and reaffirms the Parties' rights and obligations under the 
WTO SPS Agreement (Article 141). It also deals with cooperation on animal welfare matters.  
3.42.   Neither harmonization n or mutual recognition among the Parties are made mandatory under 
the Agreement. These principles are however applied by each Party, as described in 
paragraphs  3.51. , 3.57.  below . 
3.43.   Article 147 and Annex VII provide for the establishment of a list of approved establishments 
for products of animal origin which benefit from trade  facilitation measures. In detail:  
a. requirements and procedures for the approval of establishments are specified  in 
accordance with Parties' regulations ;  WT/REG332/1  
 
- 25 - 
 
  b. upon request of the exporting Party, imports of their specifically authorised 
establishment:  
i. shall ta ke place without prior inspection of the establishment  provided the 
approval was in conformity with the requirements and provisions of Annex VII ; 
ii. shall be allowed within 40 working days from the receipt of the request 
accompanied by appropriate sanitary gu arantees;  
c. the importing Party will regularly submit a record of rejected requests for approval of 
establishments and the non -conformities identified;  
d. fees imposed for the procedures on imported products  shall be no higher than the 
actual cost of the servi ce and be equitable in relation to any fees charged on like 
domestic products.  
3.44.   A Party is authorized to verify the control system of the other Party's competent authority 
approving the establishments (Article 148 and 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 the 
auditee. On -the-spot inspection of list ed establishments is also authorized. A 60 working days' notice 
shall be given prior to a verification visit to the exporting Party, except in emergency cases or if the 
Parties concerned agree differently. The expenses of such verification shall be borne b y the Party 
carrying out the verification.  
3.45.   Disciplines for the determination of pest - or disease -free areas are included in Article 149; 
they are more detailed than under the SPS Agreement. They call for close cooperation between the 
Parties on determining  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 compartmental isation" and of 
"pest-free production places and sites".  
3.46.   Transparency provisions (Article 152) build upon those of the SPS Agreement and specify that 
serious or significant risks shall be notified within three working days. A Party may request 
consultatio ns be held as soon as possible when it has serious concerns with an identified risk.  
3.47.   In cases of serious risk to human, animal or plant life or health, Article 153 authorizes the 
importing Party to take necessary protective measures. Notification shall tak e place no later than 
one working day after the adoption of the measure; upon request, consultations shall take place.  
3.48.   Cooperation and technical assistance are provided for, and priority areas are identified 
(Part III, Article 62). Special and differential  (S&D) provisions (Article 155) authorize a Central 
American Party to directly consult with the EU when it identifies a particular problem related to a 
proposed measure that may affect its trade.  
3.49.   The SPS Sub -committee, established under Article 150, may de velop provisions on inter alia  
equivalence. As of January 2022 , that has not been the case.   
3.50.   In case that an SPS measure is challenged by the other party (Dispute settlement, Article 
157),, technical consultations may be requested and shall take place in t he SPS Sub -committee; 
unless the Parties agree otherwise these will replace the consultations foreseen under the 
Agreement's dispute settlement mechanism.  
3.51.   As regards the interface of SPS provisions on Titles II and IX, Article 306 provides for:  
a. free circu lation in the EU for imports from Central Americas once these have been 
lawfully put on the EU market;  WT/REG332/1  
 
- 26 - 
 
  b. transit facilitation measures for EU products which have entered a Central American 
Party until its final destination where a SPS inspection may be condu cted. EU products 
listed in Annex XIX benefit from a simplified SPS procedure as from July 2018.14 
c. an importing Party should not be required to grant a more favourable treatment to 
products imported from the exporting Party than the treatment given by the exporting 
Party in its intra -regional trade.  
3.4.1.2   Technical barriers to trade  
3.52.   Chapter 4, Title II covers TBT; it reaffirms the Parties' rights and obligations under the WTO 
TBT Agreement (Article 126), which is incorporated into the Agreement.  
3.53.   Neither harm onization nor mutual recognition among the Parties are made mandatory under 
the Agreement, though they apply within each Party, as described in paragraph 3.57.   below .  
3.54.   The following provisions are additional to those in the TBT Agreement:  
a. stronger language encouraging regional integration of technical regulations (Art 129(b)  
and standards  (Art 1 30(d), coupled with collaboration and cooperation efforts between 
the P arties towards that aim (Article 134). This includes potential  trade -facilitating 
initiatives on TBT issues;  
b. ensure that market surveillance is carried out by the competent authorities in an 
independent manner, with a view to avoid conflicts of interest ( Article 136);  
c. as regards fees for conformity assessment, Article 137 allows the other Party to make 
a representation if it considers them to be excessive;  
d. the anticipated processing period for any mandatory conformity assessment is 
reasonable and equitable  for imported and domestic goods;  
e. disciplines limiting what may be requested in terms or marking and labelling 
(Article  138);  
f. identification of a number of technical assistance and cooperation activities on TBT -
related issues, listed in Article 57 of Part  III; 
g. S&D treatment (Article 132) is more specific than under the TBT Agreement. In 
particular it requests that legislative measures do not restrict the conclusion of voluntary 
agreements between conformity assessment bodies located in the Parties and prom ote 
the participation of such bodies in these agreements.  
3.55.   Transparency provisions incorporate some recommendations of the WTO TBT Committee, in 
particular to allow at least sixty days following the notification to provide comments in writing and 
to give a ppropriate consideration to reasonable requests for extending the comment period. In 
addition, prior to the WTO notification process, a Party is to give appropriate consideration to the 
other Party's views where the process for developing a regulation or c onformity assessment 
procedure is open to public consultation; on request it shall provide written responses to the 
comments made (Article 135(c) ). 
3.56.   A Sub -Committee on TBT is established under Article 139.  
3.57.   As regards the interface of TBT provisions on Title s II and IX, Article 305 provides for:  
 
14 By July 2015 for whey, heat treated dairy products, dairy based ice creams, milk powder, evaporated 
concentrate d milk, gelatine, canned quail eggs, cork, genetic materials (semen, embryos and ova); and by 
July 2018 for cheeses, butter and dairy spreads, dairy blends (ice cream bases), pet food, fish feed, apples, 
heat treated/powdered egg products, heat -treated/smo ked/cured pork meat products.   WT/REG332/1  
 
- 27 - 
 
  a. free circulation in the EU for imports from Central American countries once these have 
been lawfully put on the EU market. Accordingly, mutual recognition at the EU level 
applies; however, products of Central America will still be subject to a conformity 
assessment procedure in one of the EU Member States;  
b. circulation in Central American countries is contingent on the level of harmonization:  
i. when harmonized regional import requirements exist, the procedures are those 
of item a. above. This applies similarly in cases where a registration is required; 
further, registration by group or family of products shall be accepted;  
ii. the Central American Parties agreed to adopt by July 2018 23 regional technical 
regulations and conformity assessment procedures (RTCAs) for products listed in 
Annex XX (foods and beverages, drugs and related products, standardization 
measures for textiles and footwear, agricultural inputs). As of January 2022 , this 
exercise was close to conclusion.15 For the products covered by such harmonised 
regulations, procedures for imports from the EU are as described in item b.i. 
above;  
iii. a work program will be established to deal with products not yet harmonised in 
the CA Par ty and not included in Annex XX. Central American countries have also 
committed to continue work towards harmonization and developing regional 
standards.  As of January 2022 , no such work program has been developed.  
3.4.2   Safeguard mechanisms  
3.58.   Safeguard disciplines are spelled out in Articles 99 -116 of the Agreement.  
3.59.   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 auth ority. 
Determinations derived from such investigations shall be subject to review by judicial or 
administrative tribunals to the extent provided by domestic legislation.  
3.60.   Concomitant application of global and bilateral safeguard measures on the same produc t is 
not permitted (Article 100 of the Agreement).  
3.4.2.1   Global  safeguards16 
3.61.   The Parties retain their rights and obligations with respect to all safeguard provisions under 
the WTO Agreements (Article 101). Additional transparency is foreseen; upon request from t he other 
Party, the Party taking safeguard action shall provide immediately ad hoc written notification of all 
pertinent information.  
3.62.   The Agreement's dispute settlement mechanism does not apply to global safeguards 
(Article  103).  
3.4.2.2   Bilateral safeguards  
3.63.   Bilateral safeguards are addressed in Articles 104 -116 of the Agreement . A safeguard measure 
may be imposed on an originating product where, as a result of its tariff reduction/elimination, it is 
imported in such increased quantities (in absolute or relative te rms) and under such conditions as 
to cause or threaten to cause:  
 
15 Central American Parties have reported that 21 out of the 23 RTCAs we re in force throughout the 
region, with the exception that for Panama  five we re still pending approval . Harmonization was still pending on 
RTCAs on  registration of technical grade active ingredients, formulated synthetic pesticides as well as  
prohibition and restriction of pesticides . Parties indicate that harmonization was pending due to different 
technical criteria among competent authorities . 
16 The Agreement refers to "multilateral safeguards ". WT/REG332/1  
 
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  a. serious injury to the domestic industry;17 or 
b. serious deterioration in the economic situation of one or several of the Union's 
outermost regions (Guadeloupe, French Guiana, Martinique, Mayott e, Réunion and Saint 
Martin (France), the Canary Islands (Spain) and the Azores and Madeira (Portugal)).  
3.64.   The initiation of proceedings, investigations, imposition of measures , notification  and 
publication, including timeframes , are regulated ; transparency is generally increased as compared 
to the relevant WTO Agreements.  
3.65.   The following disciplines apply as regards a bilateral safeguard measure:  
a. form: suspension of a further reduction of the product's tariff ; 
b. or of an increase in the product's tariff to a le vel not exceeding the lesser of its MFN 
tariff applied at that time or on the day immediately preceding the Agreement's entry 
into force. Safeguards cannot be applied on the in -quota tariff rate;  
c. condition: can only be applied to the extent, and for such t ime, as may be necessary to 
prevent or remedy the situation described in paragraph 3.63.   above ; 
d. may also involve the application of a p rovisional measure. 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;  
e. has 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 authorized by the WTO;  
f. cannot be applied beyond the expiration of the transition period, except with the consent 
of the other Party. "Transition period" means 10 years from the Agreement's entry into 
force; for goods having a tariff elimination schedul e of 10 years or more, it means the 
good's relevant tariff elimination period plus three years;  
g. is to be accompanied by compensatory measures; in the absence of agreement, 
retaliation is possible;  
h. a new safeguard measure can only be applied on imports of the same product only after 
a period of time equal to half of that during which the safeguard measure had been 
applied has elapsed;  
i. upon termination of the bilateral safeguard measure, the tariff shall be the rate that 
would have been in effect for the goo d, according to the Schedule of that Party.  
3.66.   The disciplines applicable to bilateral safeguards  are, generally , in line with those of the WTO's 
Agreement on Safeguards.  
3.67.   The Agreement 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 Annex  I). 
3.4.3   Anti-dumping and countervailing measures  
3.68.   The Parties retain their rights and obligations under the WTO Agreements on Anti -Dumping 
and Subsidies and Countervailing Measures ("AD and SCM Agreement"). Moreover, they shall ensure 
 
17 For products already free under other preferential schemes before the Agreement 's entry into force , 
the "EU Party shall examine with special care  whether increased imports result from the reduction or 
elimination  of customs duties under th e Agreement. " WT/REG332/1  
 
- 29 - 
 
  that in case where anti-dumping or countervailing measures  can be imposed on a regional and 
national basis, those  measures are not applied simultaneously (Article  92). 
3.69.   The Agreement also provides for the following (Articles  93-97):  
a. the Parties commit that their domestic legislati on will remain harmonised and fully 
compatible with the WTO legislation;  
b. as regards transparency, immediately after any imposition of provisional measures, all 
essential facts and considerations which form the basis for the decision to apply 
measures are t o be provided to interested parties , with out prejudice to  Articles 6.5 and 
12.4 of the AD and SCM Agreement. Upon request , opportunity shall be given for 
interested Parties to be heard;  
c. the Parties may decide not to apply anti-dumping or countervailing measures if it is 
clearly concluded these are not in the public interest;  
d. encouraging the application of a duty that is less than the corresponding margin of 
dumping or subsidy if adequate to remove the injury to the domestic industry;  
e. when demonstrating the causal link between the dumped imports and the injury to the 
domestic industry, the investigating authorities shall separate and distinguish the 
injurious effects of all known factors fr om those on the dumped or subsidized imports; 
and 
f. when imports from more than one Republic of CA Party are simultaneously subject to 
anti-dumping or countervailing duty investigations, the EU investigating authority is to 
examine the appropriateness of mak ing a cumulative assessment of the effects of the 
imports from any of these Parties.  
3.70.   The Agreement's dispute settlement mechanism does not apply to anti -dumping and 
countervailing measures (Article 98).  
3.4.4   Subsidies and state -aid 
3.71.   The Agreement contains a part ial prohibition of subsidies on the export of agricultural goods 
(Article 89). These disciplines have however been overtaken by the corresponding general WTO 
prohibition, agreed at the 2013 Bali Ministerial Conference.  
3.72.   Article 344 establishes additional tr ansparency measures for subsidies "which fulfils the 
conditions set out in Article 1.1 of the SCM Agreement and is specific within the meaning of Article  2 
of the latter. This provision covers subsidies as defined in the Agriculture Agreement". In particul ar, 
the Parties are to provide each other biennial reports 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 behalf on a publicly accessible 
website. Progress on implementation of this Article will be periodically reviewed by the Association 
Committee.  Reports have regularly been made even if the two -year periodicity has not necessary 
been strictly ad hered to.18  
3.73.   The Parties' rights to apply trade remedies or to take dispute settlement or other appropriate 
action against a subsidy granted by the other Party in accordance with the relevant WTO provisions 
are not affected by Article 344.  
3.74.   The Agreement's  dispute settlement mechanism does not apply to Article 344.  
 
18 The reporting is usually done in the context of meetings of the Association Committee  (see Section 
5.5). Reference is made to public ly available information on subsidies and State -aid, and a summary of the 
progress over the previous two years is presented. Public minutes of the Committee (and technical sub -
committees) are published by the European Commission.  WT/REG332/1  
 
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  3.4.5   Customs -related procedures and trade facilitation  
3.75.   Customs procedures and trade facilitation are dealt with in Chapter 3 of Title II; procedures 
related to origin are addressed in Annex II to the Agreement. The main provisions are summarized 
in Table 3.3. 
3.76.   Under Chapter 3 the Parties commit to establish efficient, transparent and simplified 
procedu res. 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 the legal requirement, whic h shall be reasonable, non -
discriminatory and fraud preventing; the application of modern customs techniques, including risk 
assessment, simplified procedures for entry and release of goods, post release controls, and 
company audit methods; the progressive  development of systems to facilitate the electronic 
exchange of data; rules ensuring that only proportionate and non -discriminatory penalties be 
imposed and that the application of which shall not unduly delay the release of goods; the calculation 
of reas onable fees and charges. The Parties agree to eliminate any requirement for the mandatory 
use of pre -shipment inspections or their equivalent (Article 118).  
3.77.    The following disciplines may be highlighted : 
a. best endeavour provisions call for the Parties' cust oms legislation to draw on the Revised 
Kyoto Convention on the Simplification and Harmonization of Customs Procedures;  
b. the use of customs brokers is authorized  without prejudice to the Parties' position in 
multilateral forum . The Parties shall however ensu re that the corresponding legislation 
is based on transparent and proportionate rules; if their use is compulsory, legal persons 
may operate with their own in -house customs brokers licensed by the competent 
authority for this purpose (Article 118:4);  
c. transit provisions are in conformity with the more extensive obligations under the WTO 
Trade Facilitation Agreement ( TFA). They provide for the implementation of regional 
transit arrangements with a view to reducing trade barriers . As of January 2022 , Central 
American Parties have concluded  numerous transit arrangement s;19 
d. Article 120, entitled "Relations with the Business Community", contains provisions on 
transparency (making available legislation, fees and charges), etc. Going beyond the 
TFA which calls for best endeavours, it provides for the establishment of a consultat ion 
mechanism among authorities and the business community; and for a reasonable time 
period between the publication of new or amended legislation, procedures and fees or 
charges and their entry into force; and  
e. technical assistance measures are foreseen fo r the implementation of Chapter 3.  
3.78.   Preferential treatment is granted upon presentation of a proof of origin, either a Movement 
Certificate or an invoice declaration20 (Article 14 of Annex II). Both documents are valid for 12 
months. A movement certificate EUR.1 will be issued by the competent authority of the exporting 
Party, while an "invoice declaration" can be made by an approved exporter or by any exporter with 
a shipment consisting of originating products whose value does not exceed EUR 6,000. The cust oms 
authorities can grant the status of "approved exporter" to any frequent exporter subject to conditions 
they consider appropriate; and withdraw it at any time.  
3.79.   The Parties commit to cooperate in the verification of the good's origin, including the 
authe nticity of the movement certificate EUR.1 and the invoice declarations (Articles 29 -30 of 
Annex  II). The verification of the proof of origin and investigation process is to be conducted by the 
customs authority of the exporting Party, which has the right t o call for any evidence and to carry 
 
19 Transit arrangements with respect to land, maritime, SPS -related issues, and land transit of relie f-
related transport ation.  
20 Appendix 3 of Annex II contains specimens of the movement certificate EUR.1 and the application 
form and Appendix 4 the standard text in all applying linguistic versions of an invoice declaration.  This 
requirement is waived for p rivate packages and travellers' personal items worth less than EUR 500 and 
EUR 1,200 respectively .  WT/REG332/1  
 
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  out any inspection of the exporter's accounting records or any other check considered appropriate 
under the procedures of its domestic legislation. The timeframe for such verification is 10 months .   
The Agreement does not provide for the possibility of carrying out inspection visits ; these are 
however possible if so authorized under domestic legislation.  
3.80.   In the case of fraud by the exporter, the Parties can impose penalties. In case a dispute 
resulting from the verifica tion procedures cannot be resolved between the customs authorities of 
the Parties, the Parties will submit it to the Sub -Committee on Customs, Trade Facilitation and Rules 
of Origin; the Parties may also have recourse to the Agreement's dispute settlement mechanism. 
The legislation of the importing country will apply to any dispute between the importer and the 
customs authorities of the importing country (Articles 31 -33 of Annex II).  
3.81.   Title V of Annex II describes a series of arrangements between the Parties  for administrative 
cooperation. Annexes III and IV have provisions relating to mutual administrative assistance in 
customs matters and to special provisions on administrative co -operation, respectively.  
3.82.   As regards the interface of customs -related provisio ns on Titles II and IX, Article 304 provides 
for: 
a. reimbursement, as from July 2015, of any redundant collection of customs duties paid 
in a Central American Party beyond the duty due on the first entry point;  
b. the Parties are encouraged to implement a mecha nism for terminating the redundant 
collection of customs duties of originating goods . Central American Parties indicate that 
no progress has been achieved in this respect. In the European Union  imported goods 
cleared by customs are released for free circul ation and can be moved within the Union 
without being subject to the measures laid out in Art 304.2 ; 
c. use of a single administrative document or electronic equivalent  - from the  Agreement's 
entry into force in the EU and on 7 May 2019 in Central America ;21 and 
d. regional harmonization of customs legislation, procedures and customs -related 
requirements at import applicable to originating products – at entry in force in the EU 
and by July 2018 in Central America.22  
Table 3.3 Summary of Customs procedures  
Subject  Agreement's Provisions  
Origin -related  
Proof of origin  Certificate EUR -1 issued by issuing body of the exporting Party  
Invoice declaration  
Declaration of Origin  Self-issued by an approved exporter or an exporter of a 
consignment of a value not exceeding EUR 6,0000 . Prescribed 
format in Appendix 4 of Annex II.  
Valid for at least 12 months from its date of issuance.  
Certificate of Origin  Prescribed format in Appendix 3 to Annex II  
Valid for 12 months from date of issuance.  
Approved exporters  Yes. Self -declaration.  
Waiving of proof of origin  Imports of private packages under EUR 500  
Travellers' personal items under EUR 1,200.  
Verification procedures  By the exporting Party authorities.  
Inspection of the exporter's accounting records or any other 
checks.  
Timeframe of 10 months.  
On-site verification  Not foreseen in the Agreement but may be authorized under 
domestic legislation   
Trade facilitation  
Advance ruling provisions  Article 118:1(e)  
 
21 The original date foreseen for Central America  was 2016.  
22 Central American Parties indicate that the customs code  as wel l as legislation regarding  origin of 
goods ; mutual assistance and technical cooperation between tax ation and customs administrations ; 
international land customs transit regime ; and a  manual o n customs procedures  are common to the region.  WT/REG332/1  
 
- 32 - 
 
  Subject  Agreement's Provisions  
Risk management provisions  Article 122.  
Release of goods provisions  Article 118:1(d) and 118:3(b)  
Both  
Review and appeal, Penalties provisions  TF: Articles 118:3(c) and 118:1(g) (TF); Origin: Articles 31 -32 
Source:  Part IV, Title II, Chapter 3 and Annex II to the Agreement.  
 
3.5  Sector -specific provisions on trade in goods  
3.5.1    Trade in bananas  
3.83.   Appendix 3 to Annex I of the Agreement includes a special treatment by the EU for bananas 
imported from any Central America Party up to the first day of 2020; this appl ies to "fresh Bananas, 
excluding plantains" (HS (2017) 0803.90.10 ).23 The treatment, further developed in the EU 
Regulation No. 20/2013,24, 25  involves : 
a. preferential tariffs on bananas , progressively reduced to EUR 75/metric tonne (MT) in 
2020 (see Table 3.4); and  
b. a "stabilisation clause" which triggers an investigation if imports of bananas  originating 
in Central America, and listed under category "ST" in the tariff elimination schedule, 
reach the maximum import volume set in the Annex of the Regulation . Once this trigger 
is reached during a calendar year, the EU Party may either:  
i. temporarily  suspend the preferential tariff during a maximum of three months, 
not going beyond the end of the calendar year. In such case, the new tariff shall 
be the lesser of the base rate or the MFN tariff and the EU shall immediately enter 
into consultations with  the Central American Party(ies) to analyse and evaluate 
the situation on the basis of available factual data. Any such measure cannot be 
applied simultaneously with a bilateral safeguard measure on bananas; or   
ii. determine that such suspension is not approp riate. In 2019, the exports of 
Nicaragua and Guatemala exceeded their trigger volumes; the European 
Commission concluded however that a temporary suspension was not 
appropriate, as "the share of imports from these countries in the overall imports 
of banana s was very small at the moment the respective thresholds were 
exceeded."26  
3.84.   As from 1 January 2020, with the expiration of the stabilisation mechanism, only normal 
safeguard provisions may be applied.  
3.85.   The Agreement foresaw that Parties were to examine in 2019 the possible improvement of 
tariff liberalisation for bananas. Following the examination, the tariffs were maintained at the level 
of EUR75/MT.27 Additional information can be found in Annex 3 to this document . 
 
23 The Agreement, n egotiated on the basis of HS 2007, refers to 0803.00.19.  
24 Regulation (EU) No 20/2013 of the European Parliament and of the Council of 15 January 2013 
implementing the bilateral safeguard clause and the stabilisation mechanism for bananas of the Agreement 
establishing an Association between the European Union and its Member States, on the one hand, and Central 
America on the other, OJ L 17, 19.1.2013, p. 13.  
25 The Regulation also establishes a prior surveillance mechanism for imports from Central American 
countries  applying to bananas but also any other product (Article 6).  
26 2020 Report on Implementation of EU Trade Agreements, 1 January 2019 - 31 December 2019 , 
Section 3.2.2. Report from the Commission to the European Parliament, the Council, the European Economic 
and Social Committee and the Committee of the Regions on implementation of Free Trade Agreements, 
November 2020, see https://op.europa.eu/en/publication -detail/ -/publication/64413019 -1f15-11eb-b57e-
01aa75ed71a1 . 
27 "After considering all relevant factors, including the stability of the EU market , it was concluded that 
tariffs for fresh bananas from Central American countries … should be maintained at their current level of 
EUR75/tonne", Ibid. WT/REG332/1  
 
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  Table 3.4 EU: MFN and preferential tariff for imports of bananas from Central American 
countries under the Agreement  
TL MFNa 
(EUR/MT)  Preferential tariff  
(EUR/MT)  
2013  2021  2013  2014  2015  2016  2017  2018  2019  2020  2021  2022  
0803.90.10  132 114 124 117 110 103 96 89 82 75 75 75 
a  The MFN rate for bananas has been reduced from EUR 132/MT to EUR 114/MT in 2019.  
Source:  Appendix 3 to Annex I to the Agreement and WTO TAO.  
 
4  PROVISIONS ON TRADE IN SERVICES  
4.1  Scope and definitions  
4.1.  Trade in services is governed by Title III. Chapter 1 contains general provisions, Chapter 2 
relates to establishment (GATS mode 3), Chapter 3 to cross -border supply of services (GATS 
modes  1 and 2), Chapter 4 to temporary presence of natural persons for business p urposes (mode  4) 
and Chapter 5 contains provisions on the applicable regulatory framework including for five specific 
service sectors – computer, courier, telecommunications, financial and international maritime 
transport services (Sections B -F). 
4.2.  Disciplines apply at central, regional, or local levels of governments and to non -governmental 
bodies in the exercise of powers delegated by central, regional, or local governments or authorities 
(Article 160(b)). The trade in services Chapter's definition s generally follow those under the GATS.  
4.3.  As in the GATS, services supplied in the exercise of governmental authority; government 
procurement; subsidies and grants; as well as measures affecting citizenship, nationality, residence 
and permanent employment a re carved out from the Agreement (Article 159).  
4.4.  Diverging from the GATS, the following are excluded from the Agreement's coverage:  
a. mode 3 disciplines do not apply to mining, manufacturing and processing of nuclear 
materials nor to the production of or trad e in arms, munitions and war material; and  
b. modes 1 and 2 disciplines do not apply to audio -visual services nor to national and 
inland waterway cabotage.28 
4.5.  The Agreement's scope for air transport services is wider than under the GATS, with the 
additional su b-sector of other ancillary services that facilitate the operation of air carriers also being 
covered.29 As under the GATS, air traffic rights are carved out.  
4.6.  Coverage of investments is similar to that under the GATS – namely it only applies to 
establishment under mode 3. Protection of investment however only benefits from national 
treatment provisions.  
4.7.  A Protocol on Cultural Cooperation is annexed to the Agreement. It sets up the framework 
within which the Parties shall cooperate for facilitatin g exchanges regarding cultural activities, goods 
and services, including inter alia  in the audiovisual sector. The Protocol is carved -out from the 
Agreement's dispute settlement (as per footnote 1015).  
4.2  Denial of benefits  
4.8.  In accordance with the normal pract ice of the EU's regional trade agreements, denial of benefits 
is dealt with through the definition of a Party's "juridical person" in Article 160. A juridical person 
which has only its registered office or central administration within the territory of a P arty will only 
 
28 Covering in essence transportation of passengers or goods between a port or point located in a Central 
America Party or in an EU member State and another port or point located in the territory of that same country.  
29 As per the Agreement's classification: g roundhandling services including catering , storage and 
warehouse services , freight transport agency se rvices , rental of aircraft with crew  and a irport management . WT/REG332/1  
 
- 34 - 
 
  be considered as a "Party juridical person" if it is engaged in substantive business operations within 
the territory of a Party.30 Failing that, a Party may deny the benefits of Title III to that juridical 
person.  
4.9.  For shipping companies esta blished 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.  
4.3  General provisions on trade in services  
4.3.1   Market access  
4.10.   Articles 164 and 170 on market access prohibits similar market access limitations as under 
GATS Article  XVI.2 with respect to service suppliers, as well as establishment and investors of the 
other Party, mutatis mutandis . Terms, limitations an d conditions applying to this commitment are 
included in Annex X (for mode 3) and XI (modes 1 and 2).  
4.3.2   National treatment and MFN  
4.11.   For sectors with commitments under Annexes X and XI, a Party shall grant national treatment 
for all services, service suppliers , establishments and investors of the other Party (Article 165 and 
171). Terms, limitations and conditions applying to this commitment are also included in Annexes X 
and XI.  
4.12.   The Agreement makes clear that the Parties are not required to compensate for any inherent 
competitive disadvantages, which result from the foreign character of the relevant investors.  
4.13.   The Agreement contains neither an MFN provision nor any specific rule granting automatic 
extension to third parties of benefits granted to a Party to the  Agreement. It further clarifies that 
the Parties remain free to be party to international investment agreements providing for 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 Parties' schedules 
(Costa  Rica, El Salvador, Guatemala, Nicaragua), as explained in paragraph 4.39.  below .  
4.3.3   Commercial  presence  
4.14.   Chapter 2 of the Agreement relates to establishment, which is broadly equivalent to mode 3 
– commercial presence in GATS.  
4.3.4   Senior Managers and Boards of Directors  
4.15.   ...The Agreement does not contain specific provisions on requirements related to boa rds of 
directors. Managers (defined 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 or from sto ckholders of the business or their equivalent) are 
included as part of the category of "intra -corporate transfers" in Chapter 4. When the national 
treatment obligation applies, commitments and limitations in this regard are included in the Parties' 
schedul es in Annexes X or XI . 
4.3.5   Movement of natural persons  
4.16.   Chapter 4 of Title III builds on the respective GATS Annex. Disciplines and liberalization 
commitments – on the basis of a positive list – cover the temporary entry and stay of the following 
five categorie s of natural persons (defined in Article 173):  
 
30 A footnote clarifies that the " EU understands that the concept of 'effective and continuous link ' with 
the economy of a Member State enshrined in Article 54 of the Treaty on the Functioning of the European Union 
(TFEU) is equivalent to the concept of 'substantive business operations ' provided in Article V, paragraph 6, of 
the GATS. " WT/REG332/1  
 
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  a. key personnel (Article 174, consisting of intra -corporate transfers (ICTs) and business 
visitors) as well as graduate trainees, in accordance with commitments and limitations 
in Annexes XII (EU) and XIII (Cent ral American Parties);  
b. business services sellers (Article 175):  
i. for the EU, their movement is liberalized for all sectors listed in Annexes X and XI 
subject to reservations listed therein;  
ii. for the Central American Parties, liberalization commitments and l imitations are 
listed in Annex XIV. Not all sectors for which there are commitments in modes 1 -
3 also have commitments under mode 4; and  
c. for contractual services suppliers and independent professionals (Article 176), the GATS 
commitments apply.  
4.17.   Reservations listed in the Annexes may be of a horizontal nature or sector -specific; they 
include numeric quotas, economic needs tests and discrimi natory limitations.  
4.18.   Table 4.1 below summarizes the categories and lengths of stay for the presence of natural 
persons under the Agreement and the GATS.  
Table 4.1 Comparison of categories and length of stay for  temporary presence of natural 
persons under the Agreement and the GATS  
Category  Maximum length of stay  
Agreement  GATS  
EU 
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  The same as under the GATS  As specified in the EU 
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:  Agreement's Articles 174 -176 and Annexes XII -XIV; the EU Draft Consolidated GATS Schedule of 
Specific Commitments (S/C/W/273 and its Suppl.1, hereafter "EU's Draft GATS Schedule"), which 
does not cover the result of the 2007 and further EU enlargements; and Central American GATS 
Schedules of commitments.  
 
4.19.   Compared to the GATS, mode 4 under the Agreement benefits from two main improvemen ts: 
the addition of commitments for the new category of graduate trainees – not provided for under the 
Parties' GATS schedules; and the scope and depth of sectoral commitments undertaken by Central 
American Parties.  
4.4  Liberalization commitments  
4.20.   The Agreemen t uses a positive list approach for the liberalization of trade in services. 
Liberalization commitments are specified in the Parties' Lists of Commitments on Establishment – 
Annex X – and on Cross -Border Supply of Services - Annex XI. Reservations and limi tations for WT/REG332/1  
 
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  modes 1 -3 are also specified in these Annexes (Article 166 and 172). Commitments are either 
horizontal or sectoral.  
4.21.   This Section summarizes the Parties commitments31 while also relating them to those under 
the GATS. For each Party, two tables accompany a summary of their liberalization commitments, as 
follows:32 
a. horizontal reservations are presented in the first table; and  
b. sectoral liberalization is listed in the second table. The comparisons provided in such 
tables reflect commitments in the A greement and the GATS in modes 1 -3, and exclude 
those under mode 4 and horizontal reservations ; 
c. 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 Pa rties have restricted 
their commitments to privately -funded services only (hereafter, "public service 
limitation"); that was however not always listed as a horizontal reservation. The scope 
of "public utilities" vary according to Parties.  
4.22.   Further, the Part ies introductory notes to Annexes X and XI clarify that issues related to 
qualification requirements, such as diplomas, need not to be listed but still apply to the Parties' 
services suppliers, while those referring to subsidies are not listed as they are carved out from the 
Agreement.  
4.4.1   European Union  
4.23.   European Union horizontal reservations are presented in Table 4.2, while sectoral liberalization 
(modes 1 -3) is presented in Table 4.3.  
4.24.   Overall, the horizontal reservations under the Agreement provide for a more liberal services 
regime as compared to the GATS, as follows:  
a. real estate reservations only apply to the acquisition of land and of real estate by foreign 
investors; GATS limitations regarding rental or lease have been lifted;  
b. exchange regime reservations have been lifted;  
c. a number of EU member States have lifted investment reservations in the GATS (e.g. 
Cyprus, Portugal);  
d. liberalization for legal entities a pply, e.g. in mode 3 for Hungary, Poland and Slovenia, 
and mode 4 limitations are lifted.  
4.25.   The GATS limitation on subsidiaries requiring an effective and continuous link with the 
economy of one of the Member States has been dealt with under "definitions" i n Title III.  
Table 4.2 European Union: Horizontal reservations, Annexes X and XI  
Subject  GATS  Agreement  
Real estate purchases  Modes 1 -3 E, CBSS  
Public utilities  Mode 3  E 
Legal entities (types of establishment)  Mode 3  E 
 
31 Based on the GATS  Services Sectoral Classification, document MTN.GNS/W/120.  In cases where t he 
Parties have classified sectors differently from the GATS  classification , the general approach taken was to 
allocate these in accordance with the GATS classification - e.g. the in the case of Agreement -specific sector 
"Services auxiliary to all modes of transport". However, the Agreement -specific sector "Energy services" is 
presented as a separate sector  in the tables , and the GATS "Pipeline transport services" has been split with 
"Pipeline transport of fuels" under "Energy services", while "Pipeline Tran sport of goods other than fuel" is 
under "Transport services".  
32 The source for the tables are the Parties GATS Schedule of Specific Commitments and the 
Agreement's Annexes X and XI . WT/REG332/1  
 
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  Subject  GATS  Agreement  
 a. Limitations on branches, agencies and 
representative offices  Mode 3  E 
 b. Limitations on subsidiaries  Mode 3  E 
 c. Limitations additional to a. and b.  Modes 3 and 4  E 
Investment  Mode 3  E 
Geographical zones  None E 
Subsidies  Modes 3 and 4  Not applicable  
Exchange regime  Modes 1, 2, 4  None 
Industrial, commercial or artisanal activities  Mode 3  E 
Recognition of diplomas  Mode 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:  EU Schedules in Annexes X and XI to the Agreement and EU Draft GATS Schedule.  
Table 4.3 EU: Comparison between the GATS and Agreement specific commitments 
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  Partial  Improved  Partial  Partial  
D. Real  Estate  Services  Partial  Improved  Partial  Full 
E. Rental/Leasing  Services  without  Operators  Partial  Improved  Partial  Partial  
F. Other  Business  Services  Partial  Improved  Partial  Partial  
2. Communication services      
A. Postal  services  --- Improved  Fulla Full 
B. Courier  services  Partial  Improved  Fulla Full 
C. Telecommunication  services  Partial  Improved  Partial  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      
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  --- Improved  Partial  Partial  
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  Improved  Partial  Partial  
B. Banking  and other  financial  services  Partial  Improved  Partial  Partial  
8. Health related and social services      
A. Hospital services  Partial  Improved  Partial  Partial  
B. Other Human Health Services  Partial  Improved  Partial  Partial  
C. Social Services  Partial  Improved  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  Partial  Improved  Partial  Partial  
C. Tourist  guides  services  Partial  Improved  Partial  Full WT/REG332/1  
 
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  Sectors / Sub -sectors  GATS  FTA 
Compared to 
GATS  Trade in 
services  Establishment  
D. Other  --- Same  --- --- 
10. Recreational and cultural and sporting services     
A. Entertainment  services  Partial  Improved  Partial  Partial  
B. News agency services  Partial  Improved  Full Partial  
C. Libraries, archives, museums and other cultural 
services  Partial  Improved  Partial  Partial  
D. Sporting and other recreational services  Partial  Improved  Partial  Partial  
E. Other  --- Improved  Partial  Partial  
11. Transport services      
A. Maritime Transport Services  Partial  Improved  Partial  Partial  
B. Internal Waterways Transport  Partial  Improved  Partial  Partial  
C. Air  Transport  Services  Partial  Improved  Partial  Partial  
D. Space  Transport  ---  --- --- 
E. Rail  Transport  Services  Partial  Improved  Partial  Partial  
F. Road  Transport  Services  Partial  Improved  Partial  Partial  
G. Pipeline Transport of goods other than fuel  Partial  Improved  Partial  Partial  
H. Services auxiliary to all modes of Transport  Partial  Improved  Partial  Partial  
I. Other  Transport  Services  Partial  Improved  Partial  Partial  
12. Other services not included elsewhere  Partial  Improved  Partial  Partial  
13. Energy services (Separate sector under the Agreement but not in MTN.GNS/W/120)  
A. Services Incidental to Mining  Partial  Improved  Full Full 
B. Pipeline Transportation of fuels  Partial  Improved  Partial  Partial  
C. Storage and warehouse services of fuels 
transported through pipelines  Partial  Improved  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  Improved  Partial  Partial  
E. Retailing Services of motor fuel  Partial  Improved  Partial  Partial  
F. Retail sales of fuel oil, bottled gas, coal and 
wood and retailing services of electricity, (non -
bottled) gas, steam and hot water  Partial  Improved  Partial  Partial  
G. Services incidental to energy distribution  Partial  Improved  Partial  Partia l 
a Individual licenses may be required.  
Notes:  Horizontal reservations and Mode 4 commitments/limitations not included.  
Definitions:  Excluded: Sector/sub -sector excluded from the Agreement's coverage.  
  Full: Commitments not subject any sector -specific limitation, and all sub -sectors covered . 
   Improved: Overall improved commitments under the Agreement compared to those under 
 the GATS.  
  Lower: Overall lower commitments under the Agreement compared to t hose under the GATS.  
  Partial: Commitments subject to one or more sector -specific limitation , or not all sub -sectors 
covered.  
  Same :  Commitments under the Agreement are the same as under the GATS.  
   Similar: Similar liberalization possibly, in individu al cases, with limited improvements and/or 
 limited additional reservations. The assessment is based on a broad perspective taking into 
 consideration both sectoral coverage and the level of specific commitments.   
  ---: No commitment.  
Source:  As table ab ove. 
 
4.26.   Sectors/sub -sectors that are fully liberalized are computer and related services, all 
construction and related engineering services, franchising and services incidental to mining.  
4.27.   On business services, full coverage is provided for research and deve lopment (R&D) services; 
for publicly funded R&D services except that exclusive rights and authorizations can only be granted 
to nationals and juridical persons of the EU Member States. Full liberalization of establishment for 
real estate agents is provided  for but rights and/or restrictions on natural and juridical persons 
purchasing real estate are not affected. Most sub -sectors of rental/leasing services without operators 
are liberalized; that of telecommunication equipment is fully free while liberalizat ion of other sub -
sectors is improved compared to the GATS. Some other business services have been liberalized 
under the Agreement as regards establishment, while restrictions apply under the GATS (e.g. 
advisory and consulting services related to fishing) w hile full liberalization occurs in others (e.g. on 
packaging services).  WT/REG332/1  
 
- 39 - 
 
  4.28.   Full liberalization under the Agreement is provided for some postal (for which there are no 
commitments under the GATS) and courier services including handling of written communication s, 
parcels, packages and express delivery services. However, individual licences imposing particular 
universal services obligations and/or financial contribution to a compensation fund may be required. 
On telecommunication services, both the coverage and t he liberalization have been improved; 
limitations for those services covered by the GATS have been removed and new commitments are 
undertaken on satellite broadcast transmission services. Audiovisual services, unbound under the 
GATS, are carved out of the Agreement.  
4.29.   Liberalization of distribution services is improved compared to the GATS. Save horizontal 
reservations, all sub -sectors are covered and many mode 3 limitations in the GATS have been 
removed. Cross -border supply of services remains however subject to some limitations in particular 
as regards mode 1.  
4.30.   Liberalization under the Agreement as regards education services is similar to that under the 
GATS: it covers only privately funded education services, and numerous limitations apply on all 
modes  of supply.  
4.31.   All environmental services are covered under both the GATS and the Agreement. Under the 
Agreement establishment and mode 2 have been fully liberalized on all sub -sectors; mode 1 has 
been liberalized only with respect to consulting services.  
4.32.   The EU's GATS commitments on financial services, and hence also those under the Agreement, 
were undertaken on the basis of the Understanding on Commitments in Financial Services (hereafter 
the "Understanding"). On financial services, the coverage and depth o f the EU's commitments under 
the Agreement is enlarged as compared to the GATS while certain limitations remain. In addition to 
the specific reservations of individual EU Member States, the EU as a whole reserves the right to 
adopt or maintain any measure requiring a financial institution, other than a branch, when 
establishing in an EU Member State, to adopt a specific legal form, on a non -discriminatory basis. 
Moreover, the EU Council directive 85/611 of 20 December 1985, on the coordination of laws, 
regulations and administrative provisions relating to undertakings for collective investment in 
transferable securities, is applicable.  
4.33.   Health and social services commitments only cover privately funded services (as in the GATS), 
while also improving 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 
almost no limitations are kept for mode 2. As for mode 3 under the Agreement, participation  by 
private operators in the health and social network is subject to concessions provided under the 
domestic laws of the EU Member States and an economic needs test may apply. Also under mode 3 
ambulance services are liberalized except in Austria and Slove nia. 
4.34.    On tourism and travel related services modes 1 -3 have been further liberalized in additional 
EU Member States compared to the GATS. Mode 2 is, in particular, fully liberalized in all sub -sectors; 
that is also the case for mode 3 on tourist guide serv ices.  
4.35.   Under recreational and cultural and sporting services, recreation park and beach services are 
fully liberalized; that is also the case for news agency services with exception of establishment in 
France, which caps foreign participation at 20% and re quires reciprocity for the establishment of 
press agencies. There is no exclusion for gambling.  
4.36.   On transport services, partial commitments are made under the GATS and the Agreement, 
however with divergent coverage. Under the Agreement, maritime transport o nly covers passenger 
and freight transport excluding cabotage: in modes 1 -2, the only restriction is an authorisation for 
feedering services in certain EU member States while certain GATS mode 3 limitations have also 
been lifted. Internal waterways transpo rt remains subject to certain limitations under modes 1 -3 but 
liberalization is improved as compared to the GATS. Mode 1 for rail and road transport 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 are fully free under the Agreement; sub -sectors 
covered by the Agreement but not the GATS are partially liberalized, in many instances on the basis 
of reciprocity. Many services auxiliary to all modes of tra nsport (listed as a full sector in Annexes X 
and XI) are fully free for modes 1 -2, but have a number of limitations in mode 3.  WT/REG332/1  
 
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  4.37.   The EU lists under a separate sector 13 energy services, as presented in the table above. 
Services incidental to mining, restric ted for mode 3 under the GATS, have been 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 countries  
4.38.   The GATS commitments of Central American countr ies are limited. Given the wider scope of 
the Agreement as compared to the GATS, these countries have listed a number of new horizontal 
reservations in their Annexes X and XI. The scope and depth of their commitments under the 
Agreement significantly incre ases liberalization in favour of EU suppliers.  
4.39.   Four Central American Parties - Costa Rica, El Salvador, Guatemala, Nicaragua - have a 
common reservation specifying that market access for non -services is unbound. That reservation is 
however mitigated by an  MFN commitment to extend to the other Party33 any more favourable 
treatment granted under another international agreement, from the latter's date of entry into force 
(hereafter, the market access MFN clause). As of January 2022 , this clause has not been invoked by 
any Party.  
4.40.   On 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 respective 
domestic market (hereafter, the "incorporation reservation").  
4.41.   Certain Central American Parties had listed in their GATS Schedules a number of restrictions 
concerning taxation. These horizontal  measures are not included in their Annexes X and XI, in 
particular given the exceptions authorized under Article 350 for taxation measures (see 
Section  5.3.4).  
4.4.2.1   Costa Rica  
4.42.   Costa Rica's horizontal reservations listed in Annexes X and XI are summarized in Table 4.4. 
The same GATS limitation regarding foreign investment in coastal areas is included in the 
Agreement. Other reservations include limitations on domestic 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, Annexes X and XI  
Subject  GATS  Agreement  
(1) Branches, agencies and representatives  None E 
(2) Branches  None E 
(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.  
 
33 In accordance with Article 16, t he commitment is undertaken vis-à-vis the other Party but not among 
Central American countries.  WT/REG332/1  
 
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  4.43.   Table 4.5 compares commitments under both Agreements  (modes 1 -3, horizontal 
reservations excluded).  
Table 4.5 Costa Rica: Comparison between the GATS and Agreement commitments  
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   --- --- 
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  WT/REG332/1  
 
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  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in 
services  Establishment  
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.  
 
4.44.   Sectors/sub -sectors fully liberalized are computer and related services, real estate services, 
all construction and related engineering services; franchising; privately -funded education services 
except for higher education; and pr ivately -funded hospital services and other human health services.  
4.45.   On business services, GATS partial commitments were made in respect of medical and dental 
services, and computer and related services. Under the Agreement, professional services are 
extensiv ely covered, with liberalization normally limited by nationality requirements in 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 . Liberaliz ation of mode 3 varies, but it is fully 
free for example for architectural and veterinary services. In the sector of R&D, only R&D in natural 
science is not fully liberalized.  Under the GATS, rental cars services were free on mode 2 and 
unbound in other mo des; under the Agreement they are fully free on modes 1 -3. Besides , coverage 
is extended to other types of rental/leasing services without operators , with some reservations.  
4.46.   On courier services, modes 1 -3 are free except what is reserved for the State and its 
enterprises.  
4.47.   As regards education, modes 1 and 3, 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 pr ivately -funded services, and commitments in the 
Agreement are improved in terms of mode 3; modes 1 -2 commitments are similar to the GATS. 
Environmental services are unbound for mode 1 except for consulting service, and fully liberalized 
for mode 2 . 
4.48.   In the case of financial services, commitments are undertaken on 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 interme diation), for which there are 
no GATS commitments.  
4.49.   GATS commitments under other tourist sector /computer reservation services are not included 
in the Agreement. On recreational and cultural and sporting services, the GATS commitments on 
rental of tourist b oats are not included in the Agreement but all sporting services are fully liberalized.  
4.50.   On all types of transport services, passenger and freight services have been partially 
liberalized. Partial liberalization has also occurred on services auxiliary to al l modes of transport and 
pipeline transport ation of fuels . On 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 a nd computer reservation systems are fully free. The public 
utilities reservation also applies to ports and railways, as well as pushing and towing services.  
4.4.2.2   El Salvador  
4.51.   GATS wide restrictions on foreign investment (e.g. local presence, maximum transfer of gains) 
have been lifted.34 A series of more focused limitations are however listed under the Agreement, as 
indicated in Table 4.6. Foreign investment including in rural  ownership of land is subject to a 
reciprocity requirement, except for land used for industrial plants. The Agreement's reservations on 
small -scale trade and percentage of national personnel and their wages match those under the 
 
34 GATS taxation reservation is not replicated; this may be covered by Article 350.  WT/REG332/1  
 
- 43 - 
 
  GATS. The cooperatives rese rvation requires that at least 75% of the personnel be Salvadorian 
nationals (the general threshold is 90%).  
Table 4.6 El Salvador: Horizontal reservations, Annexes X and XI  
Subject  GATS  Agreement  
(1/1) National resources – State -owned or concessions  Wider on E  E & CBSS  
(2) Rural land ownership on the basis of reciprocity  Wider on E  E 
(3) Foreign ownership of enterprises on the basis of reciprocity  Wider on E  E 
(4) Small -scale trade reserved to nationals and CA nationals  Mode 4  E 
(5) Cooperatives  Wider on 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 on 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 (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:  El Salvador's GATS Draft Consolidat ed Schedule of Specific Commitments (S/DCS/W/SLV) and its 
Schedules annexed to the Agreement.  
4.52.   The scope and depth of El Salvador's commitments under the Agreement significantly 
increases liberalization in favour of EU suppliers. Table 4.7 compares commitments under the GATS 
and the Agreement (modes 1 -3, horizontal reservations excluded).  
Table 4.7 El Salvador: Comparison be tween the GATS and Agreement commitments  
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  WT/REG332/1  
 
- 44 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in 
services  Establishment  
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 
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.  
4.53.   Sectors/sub -sectors fully liberalized are computer and related services; R&D; real estate 
services; rental/leasing without operators; courier services; all distribution services; all tourism 
services sectors except "other"; various privately -funded recreat ional, cultural and sporting services 
excluding audiovisual services , and various energy services . Telecommunications services are fully 
liberalized – save for broadcasting that is carved out from the Agreement. Conversely, only health -
related and social s ervices sector remain completely closed to service suppliers from the European 
Union.  
4.54.   Coverage of business services is largely improved as compared with the GATS (only partial 
commitments in computer services) in particular in terms of scope. Mode 2 is gen erally free in 
committed sectors; the depth of liberalization of modes 1 and 3 is more variable. All other business 
services are liberalized, with few restrictions maintained (e.g. local content for advertising, 
authorisation for investigation and security  services).  
4.55.   In construction and related engineering services, only mode 2 has been liberalized; modes 1 
and 3 reservations include partnership with a domestic enterprise and local presence requirements.   
4.56.   Except for other education services, all of the educ ation services sector is liberalized, save for 
a nationality requirement for the teaching of national history and the Constitution. Other education 
services is free for mode 3 but El Salvador undertakes no commitment in modes 1 and 2. There are 
not commitm ents in the sector in the GATS.  WT/REG332/1  
 
- 45 - 
 
  4.57.   Under the Agreement, all of environmental services - largely uncommitted under the GATS – 
is fully liberalized for mode 2. Mode 1 liberalization only applies to consulting services, while for 
establishment a concession or pe rmit may be required for the supply of such services.  
4.58.   In the case of financial services, commitments are undertaken on insurances services – for 
which there are no GATS commitments - with mode 1 opened up to 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 GATS 75% equity of Salvadoran and 
Central American natural persons is reduced to 50% for banks but maintained at 75% for insurance 
enterprises. The coverage of banking services is extended to cover all sub -sectors, subject to 
limitations in 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 integrated into 
the two sub -sectors in the Agreement.  
4.59.   On entertainment services, a number of limitations (nationality and  performance 
requirements) apply with respect to modes 1 and 3, mode 2 being fully free. All the remaining 
privately funded recreational, cultural and sporting services are free.  
4.60.   Passenger and freight transport services have been fully liberalized  on marit ime transport . 
For other sub -sectors, liberalization of passenger and freight transportation is only partial  – generally 
free for modes 1 and 2 but with limitations (concession or licence) for mode 3 on internal waterways  
and rail transport. On covered air  transport services, liberalization has been improved e.g. with full 
liberalization of computer reservation systems. On 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 EU companies. On air transport services, the repair of aircraft 
requires a concession/license granted on the basis of reciprocity, airport management is free for 
mode 2 but unbound for modes 1 and 3; sales  and marketing and computer reservation systems 
are fully free. Partial liberalization has also occurred in services auxiliary to all modes of transport 
and pipeline transport services.  
4.4.2.3   Guatemala  
4.61.   Compared to the GATS, a number of new horizontal reservation s have been listed regarding 
ownership of land in urban, coastal and border areas. The GATS thresholds on percentage of national 
personnel and their wages (90% and 85%, respectively) may be decreased under certain specific 
circumstances.35 Horizontal reser vations under the Agreement are indicated in Table 4.8.36 
Table 4.8 Guatemala: Horizontal reservations, Annexes X and XI  
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.  
 
35 Authorised by the Executive Branch, for work in agriculture, livestock, welfare institutions or cultural 
characte r; or in the case of Central American origin.  
36 Ibid., footnote 22.  WT/REG332/1  
 
- 46 - 
 
  4.62.   The scope and depth of Guatemala's commitments under the Agreement significantly 
increases liberalization in favour of EU suppliers. Table 4.9 compares commitments under both 
Agreements (modes 1 -3, horizontal reservations excluded).  
Table 4.9 Guatemala: Comparison between the GATS and Agreement commitments  
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 
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 WT/REG332/1  
 
- 47 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in 
services  Establishment  
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.  
4.63.   Sectors/sub -sectors 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 service s 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.  
4.64.   Business services are largely li beralized under the Agreement. In professional services, 
modes  1 and 2 are generally fully liberalized except for legal services (admission to the Bar subject 
to nationality requirements, notaries and auditing services remain restricted to nationals) and 
midwives 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), ther e are no commitments in the supply 
of aerial photographic services as well as official translation and interpretation; modes 2 and 3 are 
fully liberalized.  
4.65.   Guatemala is the only Central American country that fully liberalizes postal services. 
Telecommunica tion services are also largely liberalized but may require registration and reciprocity.  
4.66.   Under the Agreement, all environmental services – for which there are no commitments under 
the GATS – is fully liberalized for mode 2, with mode 1 liberalization only applying to consulting 
services. Establishment is fully liberalized with the exception of other environmental and ancillary 
services.  
4.67.   In the case of financial services, modes 1 -2 commitments are extended beyond reinsurance 
(only sub -sector with GATS commi tments) to cover certain non -life insurance services and services 
auxiliary to insurance. Beyond the incorporation reservation, no other reservation applies on 
establishment. The coverage of banking services is extended to cover all sub -sectors, with modes  1 
and 2 unbound for 5 out of the 12 sub -sectors.  
4.68.   Health and social services commitments only apply to privately funded services, with hospital 
services fully liberalized. Other sub -sectors - ambulance, residential health facilities  and social 
services) ar e free for mode 2 and unbound for mode 1 , while mode 3 is free for the former two . 
4.69.   Two tourism sub -sectors have been fully liberalized. GATS commitments in modes 2 and 3 for 
the operation of marina services are not incorporated into the Agreement. On enter tainment 
services, the only limitation concerns an authorization for hiring foreign suppliers.  
4.70.   Passenger and freight transport services have been fully liberalized  on rail, road and maritime 
transport , except for national cabotage. Pushing and towing servi ces 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  is 
fully free with the exception of mode  1 for groundhandling services other than catering.  
4.71.   All energy services are fully free except for retailing services for electricity, gas, steam and 
hot water for which mode 1 is unbound.  WT/REG332/1  
 
- 48 - 
 
  4.4.2.4   Honduras  
4.72.   Compared to the GATS, the horizontal reser vation regarding land ownership has been made 
more flexible as it authorizes investors of the EU Party to own/lease land in such areas for tourism 
or other economic or social development reasons, subject to government authorization. Limitations 
on personne l have been made 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,37 with senior management being exempted from  these ceilings. 
GATS requirements that senior management speak Spanish, as well as those linking foreign 
establishment to capacity -building of nationals of Honduras, and limiting foreigners in labour unions 
have been lifted. Further, Honduras grants the E U an MFN clause for the treatment of its nationals 
in terms of its working regulations ("Codigo de Trabajo"). Compared to the GATS, small -scale trade 
has been opened up to Europeans that are naturalized citizens of Honduras on the basis of reciprocity 
with their country of origin. Horizontal reservations under the Agreement are indicated in Table 
4.10.38  
Table 4.10 Honduras: Horizontal reservations, Annexes X and XI  
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.  
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.  
 
4.73.   The scope and depth of Honduras's com mitments under the Agreement significantly increases 
liberalization in favour of EU suppliers. Table 4.11 compares commitments under both Agreements 
(modes 1 -3, horizon tal reservations excluded).  
Table 4.11 Honduras: Comparison between the GATS and Agreement commitments  
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  --- --- 
 
37 Authorised by the Executive authority; the ceiling may be increased by 10% each during a five -year 
period; the ceiling may also be decreased up to forbidding foreign work.  
38 Ibid., footn ote 22.  WT/REG332/1  
 
- 49 - 
 
  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in 
services  Establishment  
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  
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.  
4.74.   Sectors/sub -sectors fully liberalized are computer and related services; R&D; real estate 
services; rental/leasing w ithout 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.  WT/REG332/1  
 
- 50 - 
 
  4.75.   Business services are largely liberalized under the Agreement; in some instances modes 1 
and 3 remain subject to residency requirements and in 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.  
4.76.   A sector -wide limitation applies to telecommunication services allowing any modification on 
State particip ation 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 commercial presence.  Satellite broadcasting is 
opened up in modes 1 -2 and mode 3 subject to reciprocity.  
4.77.   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.  
4.78.   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 consulting services. Estab lishment is fully liberalized with the 
exception of "other environmental and ancillary services".  
4.79.   Sector -wide financial services limitations allow Honduras to take any measures with respect 
to 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 in modes 1 -3, liberalization is improved as compared to the GATS in 
particular regarding sub -sectoral coverage/liberalization commitments in mode 2 and the lifting of 
economic needs tests as well as performance and senior management requirements.  
4.80.   Liberalization of transport services is significantly increased in terms of coverage and depth 
of commitme nts. For example, GATS commitments on road transport services were limited to rental 
of vehicles; under the Agreement, the whole sector is covered, with modes 1 -2 fully free subject to 
reciprocity requirements and to preferential treatment for domestic sup pliers on selected routes; 
mode 3 is subject to various requirements.  
4.81.   Modes 1 and 2 in energy services are generally free, except for mode 1 as regards wholesale 
of petroleum products and retail of electricity, gas, steam power; establishment is subject to  
requirements, in particular incorporation under Honduran law.  
4.4.2.5   Nicaragua  
4.82.   The GATS economic needs test for approval of FDI has been lifted under the Agreement. A 
number of other horizontal limitations, not included in the GATS, are listed in both Annexes; t hey 
may result from the 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. 
Horizontal reservations under the Agreement are liste d in Table 4.12.39 
Table 4.12 Nicaragua: Horizontal reservations, Annexes X and XI  
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  
 
39 Ibid., footnote 22.  WT/REG332/1  
 
- 51 - 
 
  Subject  GATS  Agreement  
(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 Agreement.  
 
4.83.   The scope and depth of Nicaragua's commitments under the Agreement significantly increases 
liberalization in favour of EU suppliers. Table 4.13 compares commitments under both Agreements 
(modes 1 -3, horizontal reservations excluded).  
Table 4.13 Nicaragua: Comparison between the GATS and Agreement commitments  
Sectors / Sub -sector s 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  
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 WT/REG332/1  
 
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  Sectors / Sub -sector s GATS  FTA 
Compared 
to GATS  Trade in 
services  Establishment  
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.  
4.84.   Sectors/sub -sectors fully liberalized are computer and related services; rental/leasing without 
operators; distribution services except "other"; libraries and sporting services; and certain energy 
services.  
4.85.   Business services are largely liberalized under the Agreement. On professional services, in 
some instances mode 1 requires association with a local firm and  liberalization of mode 3 is subject 
to reciprocity in the EU Member State whose national the foreign supplier is. The only limitation on 
R&D concerns the requirement for a legal representative in Nicaragua for the entire duration of R&D 
on natural science . In other business services, security and scientific and technical consulting 
services remain unbound; EU suppliers of investigation services require an authorization, which is 
also required for translation and interpretations services – and granted on th e basis of reciprocity as 
regards conditions and requirements. Credit reporting, duplicating and telecommunications 
consulting services are unbound while other sub -sectors are fully liberalized.  
4.86.   In courier services, the only limitations applying to non -State-reserved services are the 
commercial presence requirement and full jurisdiction 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 auto matically extended to EU suppliers ; as of January 2022 , no legal reforms 
were made 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 subject to the law of Nicaragua.  
4.87.   In construction and related engineering services, only mode 2 has been liberalized; mode 1 
is unbound and mode 3 remain subject to numerous establishment requi rements. A somewhat 
similar situation - mode 2 liberalized and modes 1 and 3 unbound - occurs with privately -funded 
educational services and health and social services.  
4.88.   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 WT/REG332/1  
 
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  mode 1 liberalization only applying to consulting services. Establishment for these sub -sectors is 
fully liberalized with the exception of "other env ironmental and ancillary services".  
4.89.   Sector -wide financial services limitations allow Nicaragua to provide (partially or fully) 
preferential treatment to SOEs established with a public interest purpose and require incorporation 
in Nicaragua of foreign fina ncial service suppliers other than banks or insurers. Despite remaining 
subject to various other limitations for modes 1 -3, liberalization is improved as compared to the 
GATS in particular regarding sub -sectoral coverage/liberalization commitments for mode  2 and the 
lifting of the general economic needs test.  
4.90.   Tourism services are more restricted than under the GATS, as the supply of such services 
requires incorporation under Nicaraguan law and commercial presence, none of which are specified 
under the GATS.  Further, the requirement that tourist guides be of Nicaraguan nationality is specified 
under the Agreement but not under the GATS.  
4.91.   Despite the numerous limitations under the Agreement applying to transport services, 
commitments are improved as compared t o the GATS (limited to air and rail transport services). In 
particular limitations apply to passenger and cargo transportation, which may require reciprocity, 
majority 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 .  
4.92.   In energy services, in general partial liberalization occurs with mode 1 being unbound and 
mode 2 free, while some limitations may apply for mode 3.  
4.4.2.6   Panama  
4.93.   The Agreement maintains the  GATS horizontal limitation on the acquisition of land by 
non-Panamanians in border areas and adds a limitation regarding land acquisition by foreign 
governments (except for an embassy). Other horizontal limitations, as listed in Table 4.14,40 are 
also included in the Agreement. In particular, Panama reserves the right to adopt or maintain any 
measure in relation to the Panama Canal Authority (PCA), including that a membe r of its board of 
directors be a Panamanian national. Also new is the horizontal reservation allowing local presence 
or financial guarantee requirements necessary to ensure compliance with domestic law and private 
contractual obligations. The GATS threshol d on percentage of foreign personnel has been lifted.  
Table 4.14 Panama: Horizontal reservations, Annexes X and XI  
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 Commitments (S/DCS/W/PAN and its 
Schedules annexed to the Agreement.  
 
4.94.   The Agreement expands significantly Panama's GATS specific commitments both in terms of 
scope and depth in favour of EU suppliers. Table 4.13 compares commitments under both 
Agreements (modes 1 -3, horizontal reservations excluded).  
 
40 Ibid., footnote 22.  WT/REG332/1  
 
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  Table 4.15 Panama: Comparison between the GATS and the Agreement commitments  
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 
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 --- New Partial  Partial  
B. Internal Waterways Transportc --- New Full Partial  
C. Air  Transport  Services  Partial  Improved  Partial  Partial  
D. Space  Transport  --- Same  --- --- 
E. Rail  Transport  Servicesa --- New Full Partial  
F. Road  Transport  Services  --- New Full 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 WT/REG332/1  
 
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  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Trade in 
services  Establishment  
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.  
Source:  As table above.  
4.95.   Sectors/sub -sectors 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 "other"; banking and other financial services; hotels and 
restaurants and tourist guide services; sporting and other recreationa l services; services incidental 
to mining; pipeline transportation of fuels and other goods ; and wholesale trade services of energy.  
4.96.   Under the Agreement, Panama expands the coverage and depth of its commitments on 
business services, in particular by undert aking commitments in all professional services with mode  2 
fully free, and modes 1 and 3 requiring a licence for the services supply of some sub -sectors (e.g. 
engineering, veterinary). In other business services, only security services, printing and publis hing 
and official translation and interpretation are not fully free.  
4.97.   In construction and related engineering services, as well as privately funded hospital services 
and other human health services, there are no commitments for mode 1 while modes 2 and 3 a re 
fully liberalized.  
4.98.   In distribution services, Panama is the only Central American Party where franchising is not 
fully liberalized, since it is limited to citizens of Panama. Retail services are subject to a number of 
restrictions related to mode 3.  
4.99.   In financial services, commitments are undertaken on all types of insurance, though some 
restrictions apply – insurance companies require an 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.  
4.100.   Under the Agreement, Panama's GATS commitments on hotels are improved to also cover 
restaurants and all the sub -sectors of travel agencies, tour operators and tourist guide services. The 
only limitation applying to the tourism sector is that only nationals can engage in travel agency 
services.  
4.101.   Transport services are largely uncommitted under the GATS. Under the Agreement, there 
are commitments for almost all transport services though for many the horizontal reservation on 
public utilities apply – e.g. use of port services and pushing and towing services. Commitments on 
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 commitments under 
the GATS.  WT/REG332/1  
 
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  4.5  Regulatory provisions  
4.5.1   Domestic regulation  
4.102.   Domestic regulation in the sense of GATS Article VI is addressed in Article 179 ("Procedures", 
in Chapter 5 of Title III). Its provisions mirror those of the GATS, with the exception of the GATS in -
built agenda for the development of further disciplines in this area.  
4.5.2   Recognition  
4.103.   The Agreement encourages the conclusion of mutual recognition agreements of 
requirements , qualifications, licences and other regulations in particular for professional services 
(Article 177 - Chapter 5 of Title III). The Association Committee is charged with reviewing the  
recommendations of professional bodies or authorities with a view to adopting mutual recognition 
agreements. Any such agreement shall conform to the relevant WTO provisions and in particular 
GATS Article VII.  As of January 2022, n o such agre ement has been concluded . 
4.5.3   Subsidies  
4.104.   Subsidies and grants are outside the scope of Title III.  
4.105.   Under Title XII (Transparency and Administrative Procedures), Parties may, upon request, 
exchange information on matters related to the topic of subsidies in servi ces (Article 344).  
4.5.4   Safeguards  
4.106.   The only safeguard provision on trade in services are those for balance -of-payments reasons 
(see Section 5.3.1).  
4.5.5   Other  
4.5.5.1   Investment , including in non -services  
4.107.   The Parties have also listed in their respective Annex X reservations  to commercial presence 
in non -services aspects of certain sectors (agriculture, hunting and forestry; fishing and aquaculture; 
mining and quarrying and manufacturing; Costa Rica adds to these sectors the production, 
transmission and distribution on own ac count of electricity, gas, steam and hot water). Reservations 
include measures such as  nationality or residency requirements, time -bound licence requirements, 
etc. At the same time, Schedule X also binds, free of any reservation, establishment for the 
manu facture of various goods, e.g. foods and beverage, tobacco products, textiles.  
4.108.   Beyond the non -MFN clause on investment agreements (see paragraph  4.13.  above ), 
4.13.  Article 167 also specifies that nothing in th e Agreement shall be subject, directly or indirectly, 
to investor -to-State dispute settlement procedures established  in any of these agreements.  
4.109.   A rendez -vous clause (Article 168) provides for a review of the legal framework and 
environment for investments, as well as the flow of investment between them no later than three 
years after the Agreement's entry into force, a nd at regular intervals thereafter.  Trade and 
investment issues are reviewed every year at the Association Committee meetings.   
4.5.5.2   Transparency  
4.110.   The Parties are to promptly reply to all requests by another Party for specific information on 
any of its measures of general application or international agreements which pertain to or affect 
issues under Title III (Article 178 - Chapter 5 of Title III); enquiry points are also to be designated. 
The Parties remain free not to disclose confidential information . WT/REG332/1  
 
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  4.6  Sector specific provisions on trade in services  
4.6.1    Computer services  
4.111.   Article 180 includes an understanding that further defines the scope of CPC 84, the United 
Nations code used for describing computer and related services.  
4.6.2   Courier services  
4.112.   Article 181 cla rifies that a licence requirement for courier services means an authorization 
to supply the service. It requires the Parties to have in place measures preventing anti -competitive 
practices by major suppliers of courier services.  
4.113.   Provisions of Article 183 and 184 require:  
a. that licensing criteria, timeframe for the application’s analysis and the terms and 
conditions of licences be made publicly available;  
b. that reasons for denying a licence be made known to the applicant upon request, and 
that a right to recourse is guaranteed; and  
c. the Parties' regulatory bodies shall be independent from any supplier of courier services 
and be impartial with respect to all market participants.  
4.6.3   Telecommunications  
4.114.   Section D of Chapter 5, Title III (Articles 185 -193) builds u pon the GATS and its Annex on 
Telecommunications as well as the WTO Reference Paper, to which only the EU, El Salvador and 
Guatemala have committed as regards its regulatory principles.  
4.115.   As in the GATS, broadcasting of radio and television programmes - covering both wireless 
and wired (cable) – are excluded from the Chapter's scope . 
4.116.   Overall, the provisions of Section D extend some of the Reference Paper's disciplines to the 
other four Central American Parties. That includes committing them, in particular, t o 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 othe r enterprises; allocation and use of scarce 
resources; and universal service. The disciplines on interconnection mirror those of the Reference 
Paper; suppliers of commercial mobile services and of rural telecommunications services are 
however not subject t o these disciplines. The Parties are however free to impose such 
interconnection on suppliers of commercial mobile services.  
4.117.   Article 193 provides that for disputes arising between telecommunications suppliers in 
connection with safeguards and interconnecti on (Articles 188 -189), the relevant regulatory authority 
shall, at the request of either supplier and , in accordance with the procedures established in their 
respective legislation, issue a binding decision to resolve the dispute in the shortest possible t ime 
frame.  
4.6.4   Financial services  
4.118.   Disciplines and definitions of Section E of Chapter 5, Title III (Articles 194 -199) on financial 
services builds upon those of the GATS and its Annex on Financial Services. In particular, it extends 
to Central American Parties , with modifications, some of the provisions included in the GATS 
Understanding signed off by the EU (but not by its Central American partners) during the Uruguay 
Round. These include disciplines regarding new financial services and data processing of fina ncial 
information.  
4.119.   New provisions include extending prudential carve -outs to the maintenance of the safety, 
soundness, integrity or financial responsibility of financial services suppliers (Article 195:1(b)). 
Improved transparency is also foreseen vis-à-vis measures to be adopted (best endeavour), WT/REG332/1  
 
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  requirements and timeframes associated with applications for suppling a service. A best endeavour 
clause invites Parties to use internationally agreed standards for regulation and supervision in the 
financial serv ices sector, the fight against money laundering or other assets, terrorism financing, 
and the fight against tax evasion and avoidance.  
4.120.   The list of specific exceptions to financial services (Article 199) generally reinforces 
exceptions already provided for  in other Chapter of this Title, in particular for services supplied in 
the exercise of governmental authority; they are also in line with exceptions under the GATS and its 
Annex on Financial Services.41  
4.6.5   International maritime services  
4.121.   Section F of Title III sets out the scope, definitions and principles regarding the respective 
Annexes (Article 200). The Parties have committed to various obligations that go beyond those under 
the GATS, as follows:  
a. providing unrestricted access to international maritime m arkets and trade routes on a 
commercial and non -discriminatory basis; and  
b. granting national treatment to ships flying the flag, or operated by service suppliers, of 
the other Party with regard to access to ports (including infrastructure and auxiliary 
services), fees and charges, customs facilities, and the assignment of berths and 
facilities for loading and unloading;42  
c. prohibition of new, and elimination of existing:  
i. cargo -sharing arrangements in future bilateral agreements with third countries; 
existin g arrangements are to be terminated within a reasonable period of time;  
ii. measures that are discriminatory and which constitute a disguised restriction on 
trade, subject to commitments and limitations in the respective Annexes;  
iii. as of January 2022, none of t hese measure s have  been eliminated ;  
d. the right of establishment for other Party's service suppliers as provided for in 
Article  165 (see paragraph 4.11.  above ); and 
e. non-discrimination as regards the offer on port services.  
5  GENERAL PROVISIONS OF THE AGREEMENT  
5.1  Transparency  
5.1.  The provisions of Title XII on Transparency and Administrative deal with publication, contact 
points and exchange of information, administrative proceedings and the existence of review and 
appeal; and transparency in subsidies (see Section 3.4.5); with exception of the latter, they are in 
line with those of the WTO.  
5.2  Current payments and capital movements  
5.2.  The Parties shall permit all payments and transfers on the current account in accordance with 
Articles of the IMF (Article 205). The Parties shall also allow or ensure the free movement of capital 
relating to FDI in accordance with the provisions of Title III, as well as the liquidati on and repatriation 
of these investments and of any profit stemming therefrom (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 
 
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 exc eptions 
are with respect to different Chapters, including Chapters 9, 11, 13 and 14.  
42 The supply of such services is not liberalized.  WT/REG332/1  
 
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  for one year; under extremely exceptional circumstances they can be reintroduced following 
coordination with the other Party.  
5.3  Exceptions  
5.3.1   General exceptions  
5.3.  General exceptions on trade in goods are deal t with in Article 158, which incorporates into the 
Agreement Article XX of the GATT 1994. Besides, the Parties confirm its applicability to 
environmental measures and provide for an "upon request" information/examination mechanism to 
be activated in cases of export restrictions imposed on short supply grounds.  
5.4.  Exceptions applying to trade in services equivalent to those under GATS Article XIV are included 
in Article 203.  
5.3.2   Security exceptions  
5.5.  Article 357 incorporates into the Agreement the security exception s modelled off Articles XXI 
of the GATT and XIV bis  of the GATS. Further, it carves out from the Agreement government 
procurement indispensable for national security or for national defence purposes and makes clear 
that a Party is free to decide on budgeta ry priorities.  
5.3.3   Balance -of-payments  
5.6.  Article 349 allows the Parties to adopt or maintain temporary restrictive measures on trade in 
goods and services and on current payments; these should however be avoided. Any such measures 
shall be in accordance with th e provisions of the WTO and of the international Monetary Fund.  
5.7.  Any such balance -of-payments 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  
5.8.  The followin g exceptions apply with respect to taxation (Article 350):  
a. Parties may distinguish taxpayers who are not in the same situation, in particular with 
regard to their place of residence or where their capital is invested;  
b. measures aimed at preventing the avoi dance or evasion of taxes in the context of 
agreements to avoid double taxation, other tax arrangements or domestic tax law; and  
c. rights and obligations of the Parties under any tax agreement. In the event of any 
inconsistency  between Part IV of the Agreem ent and any such agreement , that latter 
agreement shall prevail to the extent of the inconsistency.  
5.4  Accession and withdrawal  
5.9.  Accessions to the Agreement may take place in the context of accessions to either the European 
Union or the Central American integr ation process. The Association Committee is to be informed of 
a request for accession to these integration processes. The Parties shall exchange relevant 
information and take into account views provided in the context of such accession negotiations.  
5.10.   The e ffect of any such accession shall be examined in the Association Committee, which shall 
decide on any necessary adjustment or transition measures.  
5.5  Institutional framework  
5.11.   The Agreement's institutional framework is set in Title II. The Agreement's governing body is 
the Association Council, which shall meet at least once every two years at ministerial level. The 
Council is assisted by the Association Committee (Article 7), co mposed of the appropriate senior WT/REG332/1  
 
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  officials in accordance with the subject matter dealt with in each session. Their specific tasks related 
to the Trade Title are specified in Articles 345 and 346.  
5.12.   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 so empowered by the Council, the Committee can 
take decisions on its behalf. The Com mittee meets at least once a year; in sessions dealing with 
Part IV of the Agreement, it is composed of senior officials having responsibility for trade -related 
matters (Article 346).  
5.13.   Seven meetings of the Association Committee have been held since the Agr eement's entry 
into force, the latest of which in June 2021.  
5.14.   Numerous other Sub -Committees have also been established under the Agreement; these 
have been referred to elsewhere in this document.  
5.6  Dispute settlement  
5.15.   The Agreement's dispute settlement mechani sm for trade related matters is contained in 
Title X, while a mediation mechanism for non -tariff measures is established under Title XI (each 
divided in four Chapters).43 These mechanisms apply with respect to Part IV of the Agreement but 
not to disputes b etween the Central American Parties. Timeframes are provided for each step of the 
procedure.  
5.16.   Disputes may concern the interpretation or application of Part IV, except as otherwise 
expressly provided (Article 309.1). Non -violation complaints are not permitt ed.  
5.17.   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 ge ographical indication under Title IV;  Trade 
and Competition under Title VII ; Trade and Sustainable Development under Title VIII ; commitments 
on regional integration assumed by a Central American Party under Title IX ; transparency in 
subsidies; and the Protocol on Cultural Cooperation.  
5.18.   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.  
5.19.   Forum selection is provided for in Article 326, in particular paragraphs 3 -7, with the forum 
deemed to have been selected upon the request to  establish a Panel under the Agreement, or, under 
the WTO, upon the establishment of the Panel. The Panel is composed of three panellists.  
5.20.   The Panel ruling  shall be issued within 120 days from its establishment; this timeline may be 
reduced to 60 days in c ases of urgency or extended to 150 days (unless exceptional circumstances 
apply). The Panel shall inform the Parties in writing with a copy to the Association Committee of the 
reasons for the delay  (Article 313) .  
5.21.   The Parties may agree for a Panel to suspe nd its work for a period not exceeding 12 months. 
Termination of proceedings is possible at any time if the Parties find a mutually satisfactory solution 
to the dispute (Article 324).  In addition, the terms of reference of the Panel shall elapse if the Pan el 
procedure had been suspended for more than twelve months (without prejudice of the complaining 
Party's right to request consultations and subsequently request the establishment of a Panel on the 
same matter at a later stage), unless the suspension is th e result of attempts in good faith at 
reaching a mutually satisfactory solution pursuant to Article 324 (Article 327:3).  
5.22.   The dispute settlement mechanism does not provide the right to appeal the Panel ruling . 
 
43 Article 355 (Fulfilment of Obligations) establishes a mechanism for dealing with cases where a Party 
considers that another Party has failed to fulfil an obligation under th e Agreement ; it does not however apply 
to trade -related issues under Title IV (paragraph 6 of the Article).  WT/REG332/1  
 
- 61 - 
 
  5.23.   Detailed disciplines, including timeframes, reg ulate the implementation of the conclusions of 
the Panel ruling . Panel ruling recommendations shall be implemented without undue delay; a 
reasonable period of time may however be granted, either by mutual agreement or by determination 
of the Panel.  
5.24.   Disagre ement between the Parties regarding the implementation of measures shall be decided 
through recourse to the original Panel, which shall rule within 45 days from the request by the 
complaining Party (Article 316).  
5.25.   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 is authorized  to suspend obligations  
on a temporary basis arising from the Agreement's provisions, as presented in paragraphs 5.16.  - 
5.17.   above . Suspension of obligations shall b e applied only until compliance is restored or the 
dispute is otherwise settled.  The EU Party will endeavour to exercise appropriate moderation in 
suspending benefits , taking into consideration, among other factors, the likely impact on the 
economy and lev el 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 this Agreement. Retaliation may also be cha llenged; in that case, the  
original  Panel is to reconvene and issue its report within a maximum of 45 days.  
5.26.   The Mediation Mechanism for Non -tariff Measures under Title XI, which applies in cases where 
these measures adversely affect trade between the Parties under Part IV of this Agreement:  
a. applies bilaterally between the EU Party on one side, and each of the C entral American 
Parties on the other;  
b. is confidential;  
c. does not apply to matters arising under Title VIII on Trade and Sustainable 
Development; Title IX on Regional Economic Integration; Integration processes of the 
EU and Central American Parties; matters  in which dispute settlement procedures have 
been excluded; and provisions of an institutional nature;  
d. provides for the selection of a Mediator and for the implementation of a mutually agreed 
solution; timeframes are also provided for. The procedure shall normally be completed 
within 60 days from the date of the appointment of the Mediator;  
e. may be discontinued at any stage by mutual agreement between the Parties;  
f. does not exclude recourse to the dispute settlement mechanism.  
5.27.   As of January 2022, no  dispute s ettlement case been launched.   
5.7  Relationship with other agreements concluded by the Parties  
5.28.   Article 351 makes clear that Parties are not obliged to extend to each other any preferential 
regime they apply in the context of other RTAs they may be part to. Table 5.1 lists notified and non -
notified RTAs involving the parties that are currently in force.  
Table 5.1 EU-Central America: Participation in other RTAs (notified and non -notified in 
force), as of 14 Februa ry 2022  
RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provision  
EUROPEAN UNION  
EU - United Kingdom  01-Jan-21 Goods & 
Services  2021 GATT Art. XXIV & GATS Art. V  
EU - Viet Nam  01-Aug-20 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
EU - Singapore  21-Nov-19 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  WT/REG332/1  
 
- 62 - 
 
  RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provision  
EU - Japan  01-Feb-19 Goods & 
Services  2019 GATT Art. XXIV & GATS Art. V  
EU - Armenia  01-Jun-18 Services  2019 GATS Art. V  
EU - Canada  21-Sep-17 Goods & 
Services  2017 GATT Art. XXIV & GATS Art. V  
EU - Ghana  15-Dec-16 Goods  2017 GATT Art. XXIV  
EU - SADC  10-Oct-16 Goods  2017 GATT Art. XXIV  
EU - Côte d'Ivoire  03-Sep-16 Goods  2008 GATT Art. XXIV  
EU - Georgia  01-Sep-14 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
EU - Republic of Moldova  01-Sep-14 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
EU - Cameroon  04-Aug-14 Goods  2009 GATT Art. XXIV  
EU - Ukraine  23-Apr-14 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
EU - Colombia and Peru 01-Mar-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
• EU - Colombia and Peru - Accession of 
Ecuador  01-Jan-17 Goods & 
Services  2017 GATT Art. XXIV & GATS Art. V  
EU - Eastern and Southern Africa States  14-May-12 Goods  2012 GATT Art. XXIV  
• EU - Eastern and Southern Africa 
States - Accession of Comoros  07-Feb-19 Goods  2021 GATT Art. XXIV  
EU - Republic of Korea  01-Jul-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
EU - Serbia  01-Feb-10 
01-Sep-13 Goods  
Services  2010 
2013 GATT Art. XXIV 
GATS Art. V  
EU - Pacific States  20-Dec-09 Goods  2011 GATT Art. XXIV  
• EU - Pacific States - Accession of 
Solomon Islands  17-May-20 Goods  2020 GATT Art. XXIV  
• EU - Pacific States - Accession of 
Samoa  31-Dec-18 Goods  2020 GATT Art. XXIV  
EU - CARIFORUM States  29-Dec-08 Goods & 
Services  2008 GATT Art. XXIV & GATS Art. V  
EU - Bosnia and Herzegovina  01-Jul-08 
01-Jun-15 Goods  
Services  2008 
2016 GATT Art. XXIV  
GATS Art. V  
EU - Montenegro  01-Jan-08 
01-May-10 Goods  
Services  2008 
2010 GATT Art. XXIV  
GATS Art. V  
EU - Albania  01-Dec-06 
01-Apr-09 Goods  
Services  2007 
2009 GATT Art. XXIV  
GATS Art. V  
EU - Algeria  01-Sep-05 Goods  2006 GATT Art. XXIV  
EU - Egypt  01-Jun-04 Goods  2004 GATT Art. XXIV  
EU - Lebanon  01-Mar-03 Goods  2003 GATT Art. XXIV  
EU - Chile 01-Feb-03 
01-Mar-05 Goods  
Services  2004 
2005 GATT Art. XXIV  
GATS Art. V  
EU - Jordan  01-May-02 Goods  2002 GATT Art. XXIV  
EU - San Marino  01-Apr-02 Goods  2010 GATT Art. XXIV  
EU - North Macedonia  01-Jun-01 
01-Apr-04 Goods  
Services  2001 
2009 GATT Art. XXIV  
GATS Art. V  
EU - Mexico  01-Jul-00 
01-Oct-00 Goods  
Services  2000 
2002 GATT Art. XXIV  
GATS Art. V  
EU - Israel  01-Jun-00 Goods  2000 GATT Art. XXIV  
EU - Morocco  01-Mar-00 Goods  2000 GATT Art. XXIV  
EU - South Africa  01-Jan-00 Goods  2000 GATT Art. XXIV  
EU - Tunisia  01-Mar-98 Goods  1999 GATT Art. XXIV  
EU - Palestine  01-Jul-97 Goods  1997 GATT Art. XXIV  
EU - Faroe Islands  01-Jan-97 Goods  1997 GATT Art. XXIV  
EU - Turkey  01-Jan-96 Goods  1995 GATT Art. XXIV  
European Economic Area (EEA)  01-Jan-94 Services  1996 GATS Art. V  
EU - Andorra  01-Jul-91 Goods  1998 GATT Art. XXIV  
EU - Syria 01-Jul-77 Goods  1977 GATT Art. XXIV  
EU - Norway  01-Jul-73 Goods  1973 GATT Art. XXIV  WT/REG332/1  
 
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  RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provision  
EU - Iceland  01-Apr-73 Goods  1972 GATT Art. XXIV  
EU - Switzerland - Liechtenstein  01-Jan-73 Goods  1972 GATT Art. XXIV  
EU – Overseas Countries and Territories 
(OCT)  01-Jan-71 Goods  1970 GATT Art. XXIV  
EU - Kosovob 01-Apr-16 Goods  Not notified  
CENTRAL AMERICA - COLLECTIVELY  
United Kingdom - Central America  
(all CACM Member States)  01-Jan-21 Goods & 
Services  2020 GATT Art. XXIV & GATS Art. V  
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  
Mexico - Central America  
(all CACM Member States, except 
Panama)  01-Sep-12e 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-06f Goods & 
Services  2006 GATT Art. XXIV & GATS Art. V  
Panama - Central America  11-Apr-03g Goods & 
Services  2005 GATT Art. XXIV & GATS Art. V  
Chile - Central America  
(all CACM Member states, except Panama)  15-Feb-02h Goods & 
Services  2002 GATT Art. XXIV & GATS Art. V  
Dominican Republic - Central America  
(all CACM  Member States, except 
Panama)  04-Oct-01 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  
Treaty on Investment and Trade in  
Services (TICS)  
(El Salvador, Guatemala and Honduras)  20-07-08i 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  
El Salvador - Honduras - Chinese Taipei  01-Mar-08 Goods & 
Services  2010 GATT Art. XXIV & GATS Art. V  
Bolivarian Republic of Venezuela - El 
Salvador  
[LAIA, AAP.A25 TM 27]  09-Jul-86 Goods  2020 Enabling Clause - Changes to 
LAIA TM 80  
GUATEMALA  
Ecuador - Guatemala  
[LAIA, AAP.A25 TM 42]  19-Feb-13 Goods  2020 Enabling Clause - Changes to 
LAIA TM 80  WT/REG332/1  
 
- 64 - 
 
  RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provision  
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  
El Salvador - Honduras - Chinese Taipei  01-Mar-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 - Chinese Taipei  01-Jan-08 Goods & 
Services  2009 GATT Art. XXIV & GATS Art. V  
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  
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  WT/REG332/1  
 
- 65 - 
 
  RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provision  
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 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, Panama and Iceland: 5 Sept 14.  
e Dates of entry into force:  El Salvador, Nicaragua: 01 Sep 12; Honduras: 01 Jan 13; Costa Rica: 01 
Jul 13; Guatemala: 01 Sept 13.  
f  Dates of entry i nto 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.  
g The bilateral Protocols to the Free Trade Agreement between Panama and Central America h ave 
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.  
h  The bilateral Protocols to the Free Trade Agreement between Chile and Centr al 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.  
i 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 .  
 
5.8  Government procurement  
5.29.   Among the Parties, only the EU is a signatory to the WTO Government Procurement 
Agreement (GPA); Costa Rica and Panama have observer status in the Agreement. The thresholds 
by all the Parties generally reflect those by the EU under the GPA (Table 5.2).  
5.30.   Government procurement provisions,  addressed in Title V, are largely based on those of the 
WTO GPA  with some adaptations .  
5.31.   The scope of Title V is defined in Article 210; it includes procurement:  
a. by government entities (central, sub -central and others) listed in the Parties' Schedules 
included in Appendix 1 to Annex XVI (respectively in Sections A -E); 
b.  of goods, services or any combination thereof;  
c.  above the thresholds indicated in Table 5.2 below; and  
d. sectoral exclusions, either permanent or time -bound are specified in the respective 
Parties' Schedules and in Section F to the Schedules. Section F also includes general 
notes specific to each Party.  
Table 5.2 Government Procurement Thresholds (SDRs)a 
Party  Central Government 
Entities  Sub-central 
Government Entities  Other Entitiesd 
Goods 
(Sec. A), 
Services  
(Sec. D)  Construction 
services  
(Section E)  Goods 
(Sec. B), 
Services  
(Sec. D)  Construction 
services  
(Section E)  Goods (Sec. C),  
Services (Sec. D)  Construction 
services  
(Section E)  
EU 130,000  5,000,000  355,000  5,000,000  400,000  5,000,000  
CRI 130,000  5,000,000  355,000  5,000,000  List A: 200,000  
List B: 400,000  5,000,000  WT/REG332/1  
 
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  Party  Central Government 
Entities  Sub-central 
Government Entities  Other Entitiesd 
Goods 
(Sec. A), 
Services  
(Sec. D)  Construction 
services  
(Section E)  Goods 
(Sec. B), 
Services  
(Sec. D)  Construction 
services  
(Section E)  Goods (Sec. C),  
Services (Sec. D)  Construction 
services  
(Section E)  
SLV 130,000b 5,000,000b 355,000b 5,000,000b List A: 200,000  
List B: 400,000  5,000,000b 
GTMb 130,000  5,000,000  355,000  5,000,000  List A: 200,000  
List B: 400,000  5,000,000  
HNDc 130,000  5,000,000  355,000  5,000,000  List A: 200,000  
List B: 400,000  5,000,000  
NICb 130,000  5,000,000  355,000  5,000,000  List A: 200,000  
List B: 400,000  5,000,000  
PAN 130,000  5,000,000  355,000  5,000,000  List A: 200,000  
Lists B/C: 400,000  Lists A/B: 5,000,000  
List C: 7,000,000e 
Thresholds applied by most Parties to the WTO Government Procurement Agreement, including the EU  
WTO 130,000  5,000,000  200,000  5,000,000  400,000  5,000,000  
a In September 2021, 1 SDR=1.42 USD.  
b Higher thresholds were applied during the three -year period after the Agreement's entry into force.  
c Not opened on the first year of the Agreement's entry into force; higher thresholds were applied 
during the second and third years.  
d Two lists of "Other Entities" have been provided, each with a different threshold. Panama has three 
different lis ts. 
e Higher thresholds applied for the twelve -year period after the Agreement's entry into force.  
Source:  Appendix 1 to Annex XVI to the Agreement and WTO website.  
 
5.9  Intellectual property rights  
5.32.   Title VI of the Agreement covers intellectual property, buil ding upon the rights and obligations 
under the WTO Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) and 
other international treaties in the field of intellectual property.44  
5.33.   MFN and national treatment are provided for in accordance with the relevant TRIPS provisions 
(Article 230). The Parties are free to establish their own regime on the exhaustion of intellectual 
property rights, subject to the provisions of the TRIPS Agreeme nt (Article 232).  
5.34.   Transfer of technology provisions (Article 231) allow the Parties to adopt any appropriate 
measures necessary to prevent or control licensing practices which may adversely affect the 
international transfer of technology and that constitu te an abuse of intellectual property rights by 
right holders or of obvious asymmetries of information in the negotiation of licences. The exchange 
of experiences and information on transfer of technology is encouraged; areas for such cooperation 
are identi fied in Article 55 .   
5.35.   The protection granted under the Agreement to all types of intellectual property rights, 
including any exceptions that might be provided for, mirror those under the TRIPS Agreement. 
However, the following main disciplines differ from TRIPS or are new:  
a. on copyright (Articles 233 -237), authors' rights are applied for  70 years (50 years under 
the TRIPS Agreement). The Agreement also incorporates the WIPO Copyright Treaty 
and the WIPO Performances and Phonograms Treaty.  In terms of  collect ive 
management of rights , a best endeavour clause calls for arrangements to be established 
between collecting societies managing copyright . Finally, the Agreement provides 
performers and producers of phonograms with a remuneration right for the broadcastin g 
and communication to the public of their phonograms ; 
 
44 Some of these  international treaties are also listed in the TRIPS – e.g. Berne and Rome Conventions, 
etc. Others have been conclude d after the establishment of the WTO . WT/REG332/1  
 
- 67 - 
 
  b. on trademarks ( 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;   
c. all Parties are to have domestic legislation for protecting geographical indications (GIs, 
Articles 244 -250) upon the Agreement's entry into force.45, 46 Protected GIs are included 
in Annex XVIII to the Agreement, in accordance with Articles 246 and 247  and following 
a 2014 Decision of the Association Council.47 More GIs can be added to said Annex 
according to Article 247. Additional GIs will also be protected , as foreseen in Annex XVII 
and a joint declaration ,48 once the required procedure s would be completed . Some of 
the protection under the TRIPS Agreement for wines and spirit is also extended under 
the Agreement to other types of products. Rules also specify cases where the Parties 
can reject application for registration of a trademark which is pro tected on GI grounds 
and clarifies that, upon its registration, Parties cannot require a registration of users for 
the use of a GI;  
d. on industrial designs (Articles 251 -257), the Agreement is more specific on 
requirements for protection, rights conferred an d invalidity or refusal of registration. 
The duration of protection – 10 years as under the TRIPS Agreement – 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 unregi stered designs are protected, the 
duration shall be at least three years. The Agreement makes clear that a design 
protected by a right and registered in a Party may also be copyright -protected ;  
e. the Article on patents (Article 258) deals with international  agreements. The Parties 
commit to comply with Articles 2 -9 of the Budapest Treaty on the International 
Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure. A 
best endeavour clause invites the EU to comply with the Patent Law Treaty while Central 
American Parties shall make reasonable efforts  to ratify or accede to it ;  
f. plant varieties (Article 259) are to be protected; this obligation mirrors that of 
Article  27.3(b) of the TRIPS  Agreement.49 Parties have indicated this obligat ion has 
been implemented.50 Exceptions to plant breeders' exclusive rights are allowed .  
5.36.   The Agreement's dispute settlement does not apply to the registration or protection of a GI 
(Article 250).  
5.37.   Enforcement of intellectual property rights disciplines, con tained in Chapter 3 of Title VI 
(Article 260 -273), complement the TRIPS Agreement as follows:  
a. enforcement measures, procedures and remedies shall also be fair, proportionate  and 
equitable ; 
 
45 The EU  indicates that protection of GIs is established for wine, spirit drinks and aromatised wine  
products  in EU regulations 1308/2013  (notably Part II, Title II, Chapter I, Section 2 ), 2019/787 and 251/2014 , 
respectively . 
46 Implemented in C osta Rica  by Trademarks Law (7978) and Executive Decree 34756 -J-COMEX ; in El 
Salvador  by Law of Trademarks and O ther Distinctive Signs ; in Guatemala by the 2013 revised domestic 
legislation on intellectual property; in Honduras by  the Industrial Property Law ; in Nicaragua by Law No. 380 
"Trademarks and Other Distinctive Signs Law: Law No. 580 "Amendments and Additions to Law No. 380 " and 
Executive Decree 83 -200; and in  Panama by Law No.61 2012  on industrial property and other provisions .  
47 "Decision No 5/2014 of the EU -Central America Ass ociation Council of 7 November 2014 on the 
geographical indications to be included in Annex XVIII of the Agreement ", in https://eur -lex.europa.eu/legal -
content/EN/TXT/?u ri=CELEX%3A22015D1219 . It includes 115 products from the EU (including one product 
from the United Kingdom) and nine products from Central American countries.  
48 Annex XVII lists 54 products from Central American Parties that were being registered as GI in  the 
Party of origin prior to seeking protection in the territory of the EU Party.  
49 Under the TRIPS, Central American countries had until 1 January 2005 to meet these obligations.  
50 The EU has implemented this obligation through a number of instruments , including Council 
Regulation (EC) No 2100/94 of 27 July 1994 on Community plant variety rights , see 
https://ec.europa.eu/food/plants/plant -variety -property -rights/legislation_en . For El Salvador, protection is 
granted through patents under the Intellectual Propert y Law  and for Guatemala  under  Decree 57 -2000, Law of 
Industrial Property. Honduras indicates the corresponding law is in force.  WT/REG332/1  
 
- 68 - 
 
  b. the right to recourse to enforcement provisions is extended to exc lusive licensees and 
other duly authorized licensees;  
c. measures for preserving evidence are specified;  
d. precautionary measures are also authorized; both provisional and precautionary 
measures shall be executed expeditiously;  
e. corrective measure are further specified;  
f. a provision regarding "presumption of ownership" is included in Article 270;  
g. pending full ratification of the Agreement by all Parties , the provisions relating to 
criminal sanctions under Article 271  are not covered by the scope of application of th e 
Agreement ;  
h. the scope of border measures relating to the importation of counterfeit goods under the 
TRIPS Agreement has been extended to also cover their exportation, re -exportation, 
entry into or exit from the customs territory and the placement under a suspensive 
procedure, free zone or a free warehouse. 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 provide that their competent authoriti es 
may initiate border measures ex officio  in the cases of import, export and transit;  
i. limitations on the liability of service providers are  mentioned with a reference to 
applicable domestic law (Article 272).  
5.38.   A Sub -Committee on Intellectual Property is established (Article 274).  
5.10  Competition  
5.39.   Title VII (Trade and Competition, Articles 277 -283) requires the Parties to adopt or maintain 
and enforce competition laws which effectively address the anticompetitive practices , and to 
establish or maintain competit ion authorities designated and appropriately equipped for the 
transparent and effective implementation of the competition laws. It also establishes transition 
periods  in the following cases  (Article 279):  
a. three years - i.e. by Decemb er 2016 – for any Centr al American Party that did not have 
a national competition law to develop such law and/or designate a competition 
authority . As of January 2022, Guatemala had not yet adopted a competition law ; 
b. seven years for each Party to adopt a common competition regulation and for 
designating a Central American competition body . That applies  in particular to the  
Central American countries in the  context of the Central America n Economic Integration 
Subsystem . The Central American  Regulation on Competition was adopted in 2020 and 
is in force since 10 March 2021.51 
5.40.   There is no provision for the exchange of confidential information . The exchange of non -
confidential information  and enforcement cooperation  is regulated in Article 281. Cooperation and 
technical assistance are foreseen, details are provided in Article 52. Issues such as procedural 
fairness, access to tribunals, national consumer protection laws are also not dealt with in this Title.  
5.41.   The Agreement's dispute settlement mechanism does n ot apply to Title VII on Competition 
(Article 283).  
 
51 Resolu tion 441-2020 (COMIECO -XCII) , adop ted on 10 December 2020. See https://web -sieca.s3.ca -
central -1.amazonaws.com/direccion -juridica/COMIE CO/RESOLUCIONES/441 -2020/ANEXO%20441 -
2020%20%20 -REGLAMENTO%20COMPETENCIA%20COMIECO%2010122020.pdf . 
 WT/REG332/1  
 
- 69 - 
 
  5.11  State -owned enterprises and designated monopolies  
5.42.   Article 280 of Title VII contains provisions on "Public enterprises and enterprises entrusted 
with special or exclusive rights including designated monop olies". It provides that nothing in the 
Title prevents a Party from designating or maintaining public enterprises, enterprises entrusted with 
special or exclusive rights or monopolies according to their respective national laws. Any such entity:  
a. shall be s ubject 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;  
b. 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 natural or legal 
persons and of originating goods.  
5.43.   Nothing in the Title shall affect the Parties rights and obligations as they relate to government 
procurement. The Article has no provis ion limiting restrictions on assistance to any such entities.  
5.44.   The Agreement's dispute settlement mechanism does not apply to this Title.  
5.12  Environment  
5.45.   Title VIII addresses trade and sustainable development, encompassing issues related to the 
environment, lab our, forestry and fish. Accordingly, paragraphs 5.46.  -5.48.  below  also apply to all 
these issues, mutatis mutandis . 
5.46.   Under 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 intern ationally recognized agreements on standards to which the Party is a signatory, 
as listed in Article 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.  
5.47.   The Agreement contains provisions on upholding levels of environmental and labour 
protection; the need to take into account scientific information to establish app ropriate measures of 
protection; the importance of reviews of sustainable impacts; and establishing a civil society dialogue 
forum (Articles 291 -293 and 295). Best endeavour provisions in Article 288 encourage the 
development by the Parties of trade scheme s and practices favouring sustainable development and 
invite them to work together towards that aim.  
5.48.   Articles 294 and 296 -301 establish an institutional and monitoring mechanism, inter -
governmental consultations and a mechanism for settling differences und er the auspices of the Board 
on Trade and Sustainable Development. Taken together these disciplines provide for legal challenges 
of a Party's measure under the Trade and Sustainable Development Title. Procedures include prior 
consultation, establishment of  a Panel of Experts, initial and final reports, and issuance of 
recommendations. Cooperation among Parties for implementing adequate measures is encouraged.  
5.49.   The Agreement's dispute settlement mechanism does not apply to Title VIII on Trade and 
Sustainable  Development (Article 284:4).  
5.50.   Trade in fishery products is addressed by a three -pronged commitment (Article  290) to 
implement multilaterally -agreed rules aimed at conservation of fish stocks and sustainable trade of 
fishery resources, including under the F AO Agreement on Port State Measures 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 Article 290 
“Trade in Fish Products” of Title VIII (Trade and Sustainable Development) of Part IV of this 
Agreement , El Salvador subscribes to Article 290 without prejudice to its own legal status in regard 
to the United Nations Convention on the Law of the Sea an d Annexes.52 
 
52 El Salvador has not ratified the Convention.  WT/REG332/1  
 
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  5.51.   Under 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.  
5.13  Labour  
5.52.   The Parties' rights in terms of regulation and level of social protection, and their commitment 
to respect internationally recognized agreements on labour are as presented in paragraphs 
5.46.   and 5.47.  above . They stress that labour standards should never be invoked or otherwise 
used for p rotectionist trade purposes and that the comparative advantage of any Party should not 
be questioned. They also commit to consult and cooperate as appropriate, on trade -related labour 
issues of mutual interest.  
5.53.   The monitoring mechanism applying to labour i ssues is presented in paragraph 5.48.  above. 
In accordance with Article 284:4, the Agreement's dispute settlement mechanism does not apply to 
labour issues.  
5.14  Elect ronic commerce  
5.54.   Title III, Chapter 6 deals with electronic commerce; it consists of two Articles.  
5.55.   The Agreement prohibits the imposition of customs duties on deliveries by electronic means 
(Article 201).  
5.56.   The Parties agree to maintain a dialogue and cooperat e on regulatory issues arising from 
electronic commerce.  
5.15  Small and medium -sized enterprises  
5.57.   Micro, Small and Medium Enterprises (MSMEs) is addressed under the Agreement's Part III 
on Cooperation. Article 70 recognizes their contribution to social cohesion and lists a number of 
cooperation actions.  
 WT/REG332/1  
 
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  ANNEX 1  
1. Table A1.1 shows tariff liberalization by the EU and individual Central American Parties under 
the Agreement by total, agricultural and industrial products. Applied MFN rates in 2013, as well as 
for the most recent year available in WTO's IDB, serve as a c omparison . 
2. Upon the Agreement's entry into force in 2013, the EU's share of duty -free tariff lines 
(overall) increased from 28.7% (MFN basis) to 91.3%. The average preferential tariff for imports 
from Central American Parties fell to 0.2% overall, from an average MFN rate of 4.9%. For 
agricultural products, tariffs decreased from 10.2% to 0.6%, and for industrial products from 3.6% 
to close to 0%. At the end of the transition period in 2022, Central American exporters will face zero 
duties on 95% of the EU' s tariff lines (81.5% for agricultural products and 99.7% for industrial 
products). In 2021, equivalent figures for EU's MFN tariffs were 26.7%, 15.2% and 30.8%, 
respectively . 
3. In the absence of a fully harmonized CET, figures from Central American countrie s are 
diverse. In 2013, the share of MFN duty -free tariff lines (overall) was between 34.8% (Panama) and 
48.7% (Costa Rica). The entry into force of the Agreement increased these figures to a range from 
48.6% (Nicaragua) to 56.9% (Panama). Average preferen tial tariffs faced by overall imports from 
the EU will be decreased by around 1 percentage point (from MFN rates of 7.7% to 6.3%); equivalent 
figures for agricultural products show a reduction of around 2 percentage points. At the end of 
liberalization, th e share of duty -free lines for imports from EU is expected to increase to around 
95%-96% overall, between 94.9% and 96% for agricultural products with full liberalization for 
industrial products except in El Salvador.  
Table A1. 1 EU and Central America: 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 
(%) 
EU 
MFN 2013 4.9 7.2 28.7 10.2 12.9 15.4 3.6 5.4 33.4 
 2021 5.0 7.1 26.7 10.3 13.0 15.2 3.7 5.3 30.8 
CA 2013 0.2 8.8 91.3 0.6 11.2 69.2 0.0 5.0 99.0 
 2014 0.1 7.8 91.3 0.5 10.2 69.2 0.0 4.0 99.0 
 2015 0.1 9.9 91.9 0.5 10.6 70.1 0.0 7.6 99.6 
 2016 0.1 9.3 91.9 0.4 9.9 70.1 0.0 7.2 99.6 
 2017 0.1 10.5 92.1 0.4 10.6 70.6 0.0 9.8 99.7 
 2018 0.1 10.1 92.1 0.4 10.2 70.6 0.0 9.8 99.7 
 2019-
2021 0.1 12.2 94.3 0.3 12.9 78.9 0.0 9.8 99.7 
 2022 0.1 12.2 95.0 0.3 12.9 81.5 0.0 9.8 99.7 
COSTA RICA  
MFN 2013 6.3 12.3 48.7 14.2 17.6 19.6 4.9 10.6 53.9 
 2019 6.0 11.9 49.3 13.3 16.2 17.9 4.3 9.9 57.0 
EU 2013 5.6 11.3 50.5 12.4 17.7 30.0 4.4 9.5 54.2 
 2014 5.1 10.3 50.5 11.9 17.0 30.0 3.8 8.4 54.2 
 2015 4.6 9.2 50.5 11.4 16.3 30.0 3.3 7.3 54.2 
 2016 4.0 8.2 50.5 10.9 15.6 30.0 2.8 6.1 54.2 
 2017 3.5 8.2 57.5 10.4 15.2 31.6 2.3 6.0 62.2 WT/REG332/1  
 
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  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 
(%) 
 2018 3.1 7.3 57.6 9.9 14.5 31.8 1.9 4.9 62.2 
 2019 2.6 6.2 57.6 9.4 13.8 32.0 1.4 3.8 62.2 
 2020 2.2 5.2 57.6 8.8 13.0 32.0 1.0 2.6 62.2 
 2021 1.7 4.1 57.6 8.3 12.2 32.0 0.6 1.5 62.2 
 2022 1.3 16.1 92.1 7.7 25.8 70.1 0.1 2.9 96.0 
 2023 1.2 15.7 92.1 7.7 25.7 70.1 0.1 2.0 96.0 
 2024 1.2 15.2 92.1 7.6 25.5 70.1 0.0 1.2 96.0 
 2025 1.2 23.6 95.1 7.6 26.6 71.5 0.0 2.1 99.3 
 2026 1.2 23.4 95.1 7.5 26.5 71.5 0.0 1.0 99.3 
 2027 1.1 28.5 96.0 7.5 28.5 73.7 0.0 0.0 100.0  
EL SALVADOR  
MFN 2013 6.3 12.1 47.8 12.9 16.1 19.6 4.8 10.5 54.0 
 2017 6.3 12.0 47.7 12.9 16.1 19.6 4.8 10.5 53.8 
EU 2013 5.1 11.6 56.2 11.0 15.7 30.0 3.8 10.0 61.9 
 2014 4.7 10.7 56.2 10.4 14.9 30.0 3.4 9.0 61.9 
 2015 4.3 9.7 56.2 9.8 14.1 30.0 3.0 8.0 61.9 
 2016 3.9 8.8 56.2 9.3 13.2 30.0 2.7 7.0 61.9 
 2017 3.4 7.9 56.2 8.7 12.4 30.0 2.3 6.0 61.9 
 2018 3.0 6.9 56.2 8.1 11.6 30.0 1.9 5.0 61.9 
 2019 2.6 5.8 56.2 7.5 10.7 30.2 1.5 3.9 61.9 
 2020 2.1 4.7 56.2 6.9 9.8 30.2 1.0 2.7 61.9 
 2021 1.6 3.6 56.2 6.2 8.9 30.2 0.6 1.5 61.9 
 2022 1.1 12.0 90.7 5.6 19.8 71.6 0.1 2.5 94.8 
 2023 1.1 11.6 90.7 5.5 19.5 71.6 0.1 1.9 94.8 
 2024 1.0 11.1 90.7 5.5 19.3 71.6 0.1 1.3 94.8 
 2025 1.0 17.2 94.2 5.4 22.1 75.6 0.0 2.1 98.2 
 2026 1.0 17.0 94.2 5.4 22.0 75.6 0.0 1.8 98.2 
 2027 1.0 19.4 94.9 5.4 23.3 77.0 0.0 2.2 98.9 
GUATEMALA  
MFN 2013 5.9 11.2 47.2 10.5 13.1 19.6 5.1 10.6 52.1 
 2016 5.7 11.2 49.5 10.6 13.3 20.5 4.6 10.5 55.7 
EU 2013 5.2 10.1 49.0 8.7 12.4 30.0 4.6 9.6 52.4 
 2014 4.7 9.2 49.0 8.2 11.7 30.0 4.0 8.5 52.4 
 2015 4.2 8.2 49.0 7.7 10.9 30.0 3.5 7.4 52.4 
 2016 3.6 7.1 49.0 7.1 10.2 30.0 3.0 6.3 52.4 
 2017 3.1 7.0 56.2 6.6 9.7 31.6 2.4 6.2 60.6 
 2018 2.6 6.0 56.2 6.1 9.0 31.8 2.0 5.1 60.6 
 2019 2.2 5.0 56.3 5.6 8.2 32.0 1.6 4.0 60.6 
 2020 1.7 3.9 56.3 5.1 7.4 32.0 1.1 2.8 60.6 
 2021 1.2 2.7 56.3 4.5 6.6 32.0 0.6 1.5 60.6 
 2022 0.7 8.9 92.1 4.0 13.3 70.2 0.1 2.9 96.0 
 2023 0.7 8.4 92.1 3.9 13.2 70.2 0.1 2.1 96.0 
 2024 0.6 8.0 92.1 3.9 13.0 70.2 0.0 1.2 96.0 
 2025 0.6 12.1 95.1 3.8 13.5 71.6 0.0 2.1 99.3 
 2026 0.6 11.8 95.1 3.8 13.3 71.6 0.0 1.0 99.3 WT/REG332/1  
 
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  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 
(%) 
 2027 0.6 14.2 96.0 3.7 14.2 73.7 0.0 0.0 100.0  
HONDURAS  
MFN 2013 6.0 11.4 47.1 11.6 14.3 18.8 5.0 10.5 52.2 
 2020 6.1 11.6 47.9 12.1 15.0 19.0 4.7 10.3 54.3 
EU 2013 5.3 10.4 48.9 9.8 13.9 29.4 4.5 9.5 52.4 
 2014 4.8 9.5 48.9 9.3 13.2 29.4 4.0 8.5 52.4 
 2015 4.3 8.5 48.9 8.9 12.5 29.4 3.5 7.4 52.4 
 2016 3.8 7.4 48.9 8.4 11.8 29.4 3.0 6.3 52.4 
 2017 3.3 7.4 55.8 7.8 11.3 31.0 2.4 6.1 60.3 
 2018 2.8 6.4 55.9 7.3 10.7 31.2 2.0 5.1 60.3 
 2019 2.4 5.4 55.9 6.8 9.9 31.4 1.6 4.0 60.3 
 2020 1.9 4.3 55.9 6.3 9.2 31.4 1.1 2.8 60.3 
 2021 1.4 3.2 55.9 5.8 8.4 31.4 0.6 1.5 60.3 
 2022 0.9 11.2 92.0 5.2 17.1 69.6 0.1 2.9 96.0 
 2023 0.9 10.7 92.0 5.2 17.0 69.6 0.1 2.1 96.0 
 2024 0.8 10.3 92.0 5.1 16.9 69.6 0.0 1.2 96.0 
 2025 0.8 15.7 95.0 5.1 17.5 71.0 0.0 2.1 99.3 
 2026 0.8 15.4 95.0 5.1 17.4 71.0 0.0 1.0 99.3 
 2027 0.8 18.8 95.9 5.0 18.8 73.2 0.0 0.0 100.0  
NICARAGUA  
MFN 2013 6.2 11.6 46.4 12.5 14.8 15.7 4.8 10.3 53.5 
 2020 6.2 11.7 46.5 12.4 15.0 17.3 4.8 10.3 53.6 
EU 2013 5.5 10.7 48.6 10.8 14.4 25.2 4.3 9.3 54.0 
 2014 5.0 9.8 48.6 10.3 13.7 25.2 3.8 8.3 54.0 
 2015 4.5 8.8 48.6 9.7 13.0 25.3 3.3 7.3 54.0 
 2016 4.0 7.8 48.6 9.1 12.2 25.3 2.8 6.2 54.0 
 2017 3.5 7.8 54.9 8.6 11.7 26.6 2.3 6.1 61.4 
 2018 3.1 6.9 54.9 8.0 10.9 26.8 2.0 5.1 61.4 
 2019 2.7 5.9 54.9 7.4 10.2 26.9 1.6 4.1 61.4 
 2020 2.2 4.9 54.9 6.8 9.3 26.9 1.1 2.9 61.4 
 2021 1.7 3.7 54.9 6.2 8.5 26.9 0.6 1.6 61.4 
 2022 1.1 12.4 90.7 5.6 17.7 68.3 0.1 2.8 95.9 
 2023 1.1 11.9 90.7 5.5 17.5 68.3 0.1 2.0 95.9 
 2024 1.1 11.5 90.7 5.5 17.2 68.3 0.0 1.1 95.9 
 2025 1.0 17.6 94.2 5.4 19.2 71.9 0.0 2.1 99.3 
 2026 1.0 17.4 94.2 5.4 19.1 71.9 0.0 1.0 99.3 
 2027 1.0 20.3 95.1 5.3 20.3 73.8 0.0 0.0 100.0  
PANAMA  
MFN 2013 7.7 11.8 34.8 14.3 17.5 18.4 6.2 10.0 38.4 
 2018 6.5 12.3 47.1 14.2 17.7 19.9 4.7 10.2 53.3 
EU 2013 4.9 11.4 56.9 11.0 16.8 34.7 3.5 9.3 61.9 
 2014 4.6 10.8 56.9 10.6 16.3 34.7 3.3 8.6 61.9 
 2015 4.3 10.1 56.9 10.3 15.8 34.9 3.0 7.9 61.9 
 2016 4.0 9.2 56.9 9.9 15.2 34.9 2.6 6.9 61.9 
 2017 3.5 8.9 60.9 9.4 14.7 35.9 2.2 6.5 66.4 WT/REG332/1  
 
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  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 
(%) 
 2018 3.1 7.9 60.9 9.0 14.0 36.0 1.8 5.4 66.4 
 2019 2.7 6.9 60.9 8.5 13.2 36.1 1.4 4.2 66.4 
 2020 2.3 5.8 60.9 8.0 12.4 36.1 1.0 3.0 66.4 
 2021 1.8 4.7 60.9 7.4 11.6 36.2 0.6 1.7 66.4 
 2022 1.4 13.9 90.1 6.9 20.3 66.2 0.1 3.3 95.5 
 2023 1.3 13.4 90.1 6.8 20.1 66.2 0.1 2.3 95.5 
 2024 1.3 12.9 90.1 6.7 19.8 66.2 0.1 1.4 95.5 
 2025 1.2 18.2 93.3 6.6 21.0 68.7 0.0 1.7 98.8 
 2026 1.2 17.9 93.3 6.5 20.8 68.7 0.0 0.9 98.8 
 2027 1.2 23.7 95.1 6.4 23.8 72.9 0.0 2.5 100.0  
Note:  Tariff lines subject to in -quota rates are excluded in the computation ; for the calculation of 
averages, specific duties are excluded, and the ad valorem  parts of alternate rates are included .  
 Based on HS 2007 nomenclature, 8 -digit tariff line level, except:  
 - EU data: HS 2012;  
 - Costa Rica, MFN  2019: HS 2017, 12 -digit;  
 - El Salvador and Nicaragua: HS 2017;  
 - Guatemala, MFN 2016: HS 2012, 8 -digit;  
 - Honduras, MFN 2020: HS 2017, 10 -digit; 
 - Panama, MFN 2020: HS 2017, 12 -digit. 
Source:  WTO estimates based on data provided by the Parties, WTO -IDB and WTO -TPR (Guatemala).  
 
4. Table A1.2a -A1.2b show the market access opportunities in the EU for the top 25 exports of 
its Central America's partners, which in 2010 -2012 covered between 41 and 91 tariff lines, 
accounting for between 52.3% an d 77.8% of their global exports. If repetitions are excluded, they 
represent a total of 104 products at the six -digit level. Some of these products were already MFN 
duty free prior to the Agreement's entry into force - 11 for Costa Rica and Panama, 9 for G uatemala 
and Honduras, 7 for El Salvador and 5 for Nicaragua. None of the Central American countries will 
have all of their products fully liberalized: 1 product exported by Costa Rica and Honduras will remain 
dutiable, 2 for El Salvador and Guatemala, 4 f or Panama and 7 for Nicaragua. The 2013 MFN rates 
for these products ranged from 10% to 14.9%, while for 11 products specific rates applied.  
Table A1. 2a EU: Market access opportunities under the Agreement for Costa Rica, El 
Salvador, Guatemala and Honduras top 25 exports to the world (2010 -2012)  
 Access Conditions to EU's  import markets  
HS 
number  
Share in global 
exports (%)  MFN rate 
2013  Duty -free 
under the 
Agreement  
Remain dutiable  
HS 
number  
Share in global 
exports (%)  MFN rate 
2013  Duty -free 
under the 
Agreement  
Remain  dutiable 
lines   
Avg (%)  
Duty free  
Dutiable  
2013  
2019  
2022  
Avg (%)  
Duty free  
Dutiable  
2013  
2022  
  
 COSTA RICA  EL SALVADOR  
854231  15.4 0.0 2      610910  14.1 12.0  1 1   
080430  7.0 5.8  1 1    090111  6.4 0.0 1     
901839  5.3 0.0 1      611595  3.1 12.0  1 1   
080390  4.5 16.0  2 1  1  853221  2.7 0.0 1     
090111  3.4 0.0 1      611020  2.4 12.0  3 3   
300210  2.9 0.0 3      271019  2.1 2.0 12 13 13   
210690  2.8 10.0 1 6 1 4  1 481810  2.0 0.0 2     WT/REG332/1  
 
- 75 - 
 
   Access Conditions to EU's  import markets  
HS 
number  
Share in global 
exports (%)  MFN rate 
2013  Duty -free 
under the 
Agreement  
Remain dutiable  
HS 
number  
Share in global 
exports (%)  MFN rate 
2013  Duty -free 
under the 
Agreement  
Remain  dutiable 
lines   
Avg (%)  
Duty free  
Dutiable  
2013  
2019  
2022  
Avg (%)  
Duty free  
Dutiable  
2013  
2022  
  
847330  2.7 0.0 2      610711  1.8 12.0  1 1   
901890  2.6 0.0 8      392330  1.7 6.5  2 2   
080310  2.2 16.0  2 2    160414  1.5 24.3  4 4   
902139  2.1 0.0 2      711291  1.5 0.0 1     
300490  1.8 0.0 1      300490  1.4 0.0 1     
854449  1.4 3.0 1 4 4    611030  1.2 12.0  3 3   
401110  1.3 4.5  1 1    190590  1.1 14.9  7 4 1 2 
151110  1.3 1.9 1 1 1    621210  1.0 6.5  2 2   
961900  1.1 0.0 3      610462  1.0 12.0  1 1   
380850  0.9 6.0  1 1    392321  0.9 6.5  1 1   
620711  0.9 12.0  1 1    610990  0.9 12.0  2 2   
080719  0.7 8.8  1 1    611521  0.9 12.0  1 1   
701090  0.7 5.0  17 17    853229  0.8 0.0 1     
902190  0.6 0.0 2      110220  0.8 -  2   2 
060290  0.6 6.8 1 9 9    190410  0.8 4.7  3 3   
071410  0.6 0.0  1 1    620520  0.8 12.0  1 1   
720449  0.5 0.0 3      721420  0.8 0.0 1     
210390  0.5 2.6 2 1 1    220710  0.7 0.0  1 1   
Total  63.6  34 48 42 4 1 1  52.3  20 49 44 1 4 
 GUATEMALA  HONDURAS  
090111  9.5 0.0 1      090111  28.9 0.0 1     
261610  6.8 0.0 1      854430  6.9 0.0 1     
170114  5.2 -  2    2 271112  5.0 1.6 3 3 3   
610610  3.8 12.0  1 1    151110  3.3 1.9 1 1 1   
080390  3.6 16.0  2 1  1  710812  2.6 0.0 1     
270900  3.0 0.0 2      080390  2.3 16.0  2 1 1  
170113  2.3 -  2    2 711291  2.3 0.0 1     
400122  2.3 0.0 1      151190  2.0 9.5  4 4   
090831  1.9 0.0 1      030617  1.7 14.3  6 6   
610510  1.8 12.0  1 1    080310  1.7 16.0  2 2   
151110  1.7 1.9 1 1 1    030611  1.6 15.0  3 3   
080310  1.6 16.0  2 2    340119  1.5 0.0 1     
300490  1.5 0.0 1      240210  1.3 26.0  1 1   
080719  1.3 8.8  1 1    080719  1.2 8.8  1 1   
620463  1.1 12.0  5 5    481910  1.1 0.0 1     
481910  1.0 0.0 1      260800  1.0 0.0 1     
220710  1.0 0.0  1 1    030616  0.9 16.7  3 3   
090832  1.0 0.0 1      282110  0.8 4.6  1 1   
610620  1.0 12.0  1 1    080430  0.8 5.8  1 1   
400110  0.9 0.0 1      870899  0.8 3.7  3 3   
271112  0.8 1.6 3 3 3    240220  0.8 33.8  2 2   
210410  0.7 11.5  1 1    760200  0.7 0.0 3     
600622  0.7 8.0  1 1    261610  0.7 0.0 1     
220210  0.7 9.6  1 1    870829  0.7 3.8  2 2   
340220  0.6 4.0  2 2    170113  0.6 -  2   2 
Total  55.8   14 27 22  1 4  71.4   15 37 34 1 2 
- contains specific duties - 
Note:  Based on the HS 2012 nomenclature  
Source:  WTO estimates based on data provided by the EU authorities and UNSD -Comtrade database.  
 WT/REG332/1  
 
- 76 - 
 
  Table A1.2b EU: Market access opportunities under the agreement for Nicaragua and 
Panama top 25 exports to the world  HS number  Access Conditions to EU's  import markets  
NICARAGUA  PANAMA  Share in global 
exports (%)  MFN rate 
2013  Duty -free 
under the 
Agreement  
Remain dutiable  
HS number  
Share in global 
exports (%)  MFN rate 
2013  Duty -free 
under the 
Agreement  
Remain  dutiable 
lines  Avg (%)  
Duty free  
Dutiable  
2013  
2015  
2019  
2022  
Avg (%) 
Duty free  
Dutiable  
2013  
2015  
2022  
090111  14.8 0.0 1       710812  13.4 0.0 1      
710812  11.6 0.0 1       080390  7.3 16.0  2 1  1  
020230  10.4 12.8  3     3 030219  6.1 8.0  1 1    
854420  5.3 3.7  1 1     720410  4.8 0.0 1      
620630  3.6 12.0  1 1     080430  4.5 5.8  1 1    
610463  3.0 12.0  1 1     080310  3.5 16.0  2 2    
020130  2.8 12.8  1     1 030616  3.5 16.7  3 3    
170113  2.7 -  2     2 080711  3.1 8.8  1 1    
120242  2.4 0.0 1       740400  2.8 0.0 3      
030617  2.1 14.3  6 6     170113  2.8 -  2    2 
240210  1.7 26.0  1 1     300490  2.4 0.0 1      
620433  1.7 12.0  2 2     020230  2.3 12.8  3    3 
170199  1.6 -  2     2 760200  2.0 0.0 3      
071333  1.6 0.0 2       151110  2.0 1.9 1 1 1    
030611  1.5 15.0  3 3     220840  1.9 - 2 4  2  2 
610990  1.5 12.0  2 2     410419  1.6 1.4 3 1 1    
040221  1.4 -  4 1    3 030617  1.6 14.3  6 6    
620342  1.4 12.0  7 7     230120  1.6 0.0 1      
040610  1.3 0.0  2  1 1   090111  1.3 0.0 1      
170114  1.2 -  2     2 170114  1.2 -  2    2 
040690  1.0 7.7  33  1 32   720449  1.2 0.0 3      
120230  0.9 0.0 1       080719  1.1 8.8  1 1    
190590  0.8 14.9  7 4   1 2 440349  1.1 0.0 3      
150810  0.7 3.2 1 1 1     440399  1.0 0.0 5      
030616  0.7 16.7  3 3     481910  1.0 0.0 1      
Total  77.8  7 84 33 2 33 1 15  75.0  29 30 18 2 1 9 
- contains specific duties  
Note:  Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by the EU authorities, UNSD -Comtrade database and 
Instituto Nacional de Estadística y Censos (Panama).  
 
5. Table A1.3a and A1.3b show the market access opportunities in Central American Parties for 
the EU's top 25 exports in 2010 -2012.1 These products accounted for about a quarter of the EU 
exports; they will all become duty -free in the various Central American mark ets at the latest by 
2022.  
 
 
1 Two tables are needed given t hat differences in HS nomenclature used affect the list of the top 25 
products  of export interest.   
  WT/REG332/1  
 
- 77 - Table A1. 3a Costa Rica, Guatemala, Honduras, Panama: Market access opportunities under the agreement for EU's top 25 exports to the wor ld 
EU's top export products in 2010 -2012  Access Conditions to Central America's import markets  
 HS number and 
description of the 
product  Share 
in 
global 
exports 
(%) MFN 2013  
Average applied rate  
(%) MFN 2013 Duty -free, 
No. of lines  MFN 2013 Dutiable  
Liberalization under the Agreement: Year and CA Party  
2013  2017  2022  
CRI GTM HND PAN CRI GTM HND PAN CRI 
GTM 
HND PAN CRI GTM HND PAN CRI GTM HND PAN 
300490  Medicaments consisting 
of mixed or unmixed  3.7 2.5 5 0 0 3  6 5   3 6       
271019  Medium oils and 
preparations, of  3.1 4.2 2.7 4.6 8.8 7 9 8 4  2 2 2 1 4 4 2 4 2 
870323  Motor cars and other 
motor vehicles  2.9 6 15 15 0 6   27   4 4 4   6 6  
880240  Aeroplanes and other 
powered aircraft of an of  2 0 0 0 10 1 1 1   2         
870324  Motor cars and other 
motor vehicles  1.8 6 15 15 0 3   27   2 2 2   3 3  
271011  Light oils and 
preparations, of  1.1 7.1 0.7 7.1 0 3 6 3 10       4 1 4  
710813  Gold, incl. gold plated 
with platinum, in semi -  0.9 5 5 5 0    1       1 1 1  
870332  Motor cars and other 
motor vehicles  0.9 6 15 15 0 6   27       4 10 10  
710231  Non-industrial diamonds 
unworked or simply 
sawn, cleaved or bruted  0.8 5 5 5 10           1 1 1 1 
870899  Parts and accessories, 
for tractors, motor  0.7 10 10 5 2.5    1   1 1 1 1     
841191  Parts of turbojets or 
turbopropellers, n.e.s.  0.7 0 0 0 3 1 1 1   1         
880330  Parts of aeroplanes or 
helicopters, n.e.s.  0.7 0 0 0 10 1 1 1   1         
851712  Telephones for cellular 
networks "mobile  0.7 0 0 0 0 1 1 1 1           
710812  Gold, incl. gold plated 
with platinum, -  0.6 5 5 5 0    1       1 1 1  
841112  Turbojets of a thrust > 
25 kn  0.6 0 0 0 3 1 1 1   1         
848180  Appliances for pipes, 
boiler shells, tanks, vats  0.6 10 10 10 0 1 1 1 5   2 2 2       
  WT/REG332/1  
 
- 78 - EU's top export products in 2010 -2012  Access Conditions to Central America's import markets  
 HS number and 
description of the 
product  Share 
in 
global 
exports 
(%) MFN 2013  
Average applied rate  
(%) MFN 2013 Duty -free, 
No. of lines  MFN 2013 Dutiable  
Liberalization under the Agreement: Year and CA Party  
2013  2017  2022  
CRI GTM HND PAN CRI GTM HND PAN CRI 
GTM 
HND PAN CRI GTM HND PAN CRI GTM HND PAN 
300220  Vaccines for human 
medicine  0.5 0 0 0 4.3 1 1 1 1  1    1     
711319  Articles of jewellery and 
parts thereof, of 
precious  0.5 15 15 15 10       1 1 1 1     
847989  Machines and 
mechanical appliances, 
n.e.s.  0.5 0 0 0 1.5 1 1 1 3  3         
293499  Nucleic acids and their 
salts, whether or not  0.5 0 0 0 0 1 1 1 1           
901890  Instruments and 
appliances used in  0.4 0 0 0 3.3 1 1 1 2  1         
870840  Gear boxes and parts 
thereof, for tractors,  0.4 10 10 5 2.5    1   1 1 1  1 1 1 1 
851762  Machines for the 
reception, conversion  0.4 0 0 0 0 1 1 1 2           
848620  Machines and apparatus 
for the manufacture of  0.4 0.8 0.8 0.8 0 12 12 12 1       1 1 1  
220421  Wine of fresh grapes, 
incl. fortified wines, and  0.4 15 20 15 15     1 6         
 Total  25.7      51 38 40 120 1 18 16 19 12 7 17 27 32 4 
Note:  Based on the HS 2007 (CRI -GTM-HND) AND HS 2012 (PAN) nomenclature . 
Source:  WTO estimates based on data provided by the Parties' authorities and Comtrade database.  
 
 WT/REG332/1  
 
- 79 - 
 
  Table A1.3b El Salvador, Nicaragua: Market access opportunities under the agreement 
for EU's top 25 exports to the world  
EU's top export products in 2010 -2012  Access Conditions to Central America's import markets  
HS number and description of 
the product  Share 
in 
global 
exports 
(%) MFN 2013  
Average 
applied 
rate  
(%) MFN 
2013 
Duty -
free, 
No. of 
lines  MFN 2013 Dutiable  
Liberalization under the 
Agreement: Year and CA Party  
2013  2016  2017  2022  
SLV NIC SLV NIC SLV NIC NIC SLV NIC 
271019  Medium oils and 
preparations, of  3.1 2.3 2.7 8 9 1  1   5 
880240  Aeroplanes and other 
powered aircraft of an of  2 0 0 1 1      
300460  Medicaments containing 
any of the following  1.8 5 0  1 1     
300490  Medicaments consisting 
of mixed or unmixed  1.8 5 0  6 6     
870340  Motor cars and other 
motor vehicles  1.7 30 5  2    1 2 
870360  Motor cars and other 
motor vehicles  1.7 30 10      1 2 
271012  Light oils and 
preparations, of  1 2.9 2.5 3 6    4 6 
870323  Motor cars and other 
motor vehicles  1 16.4 8   4  8 6 12 
710813  Gold, incl. gold plated 
with platinum, in semi - 0.9 5 5      1 1 
710231  Non-industrial diamonds 
unworked or simply  0.8 5 5      1 1 
870899  Parts and accessories, 
for tractors, motor  0.7 1 5   1  1   
841191  Parts of turbojets or 
turbopropellers, n.e.s.  0.7 0 0 1 1      
962000  Monopods, bipods, 
tripods and similar  0.7 6.9 6.9 3 3 2  2 3 3 
880330  Parts of aeroplanes or 
helicopters, n.e.s.  0.7 0 0 1 1      
851712  Telephones for cellular 
networks "mobile  0.7 0 0 1 1      
710812  Gold, incl. gold plated 
with platinum,  0.6 5 5      1 1 
841112  Turbojets of a thrust > 
25 kn  0.6 0 0 1 1      
870324  Motor cars and other 
motor vehicles  0.6 17.4 8   2  4 3 6 
848180  Appliances for pipes, 
boiler shells, tanks, vats  0.6 10 10 1 1 2  2   
711319  Articles of jewellery and 
parts thereof, of  0.5 15 15   1  1   
847989  Machines and 
mechanical appliances,  0.5 0 0 1 1      
300220  Vaccines for human 
medicine  0.4 0 0 1 1      
870350  Motor cars and other 
motor vehicles  0.4 30 10    2  1 2 
870370  Motor cars and other 
motor vehicles  0.4 30 10    2  1 2 
901890  Instruments and 
appliances used in  0.4 0 0 1 1      
 Total  24.5    23 36 20 6 19 27 43 
Note:  Based on the HS 2017 nomenclature . 
Source:  WTO estimates based on data provided by the Parties' authorities, Comtrade (El Salvador) and 
Eurostat (Nicaragua).   WT/REG332/1  
 
- 80 - 
 
  ANNEX 2  
Table A2.1 TRQs within EU -CA Agreement, metric tonnes (MT)  
Product (SAC 2007)  Quantity  (MT)  Quota Rate  
In-
quota  Out-of-quota  
Central America TRQs - Appendix 1 to Annex I  
Cured hams and streaky bacon  
0210.11.00, 0210.12.00, 0210.19.00  900/year (joint),  
 increased by 45/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     Y1 - growth/year  
CRI/SLV/NIC: 200 - 10 
GTM/HND: 400 - 20 
PAN: 500 - 25 Free MFN 
Whey  
0404.90.00 (except lactose -free milk)  100 tonnes/year (joint),  
 increased by 10/year  Free Cat. B:  
Free in 2015  
Cheese  
0406.20.90, 0406.30.00, 0406.90.10, 
0406.90.20, 0406.90.90     Y1 - growth/year  
CRI: 317 - 16 
SLV: 583 - 29 
GTM/PAN: 600 - 30 
HND: 500 - 25 
NIC: 400 – 20 Free MFN 
Prepared or preserved swine meat 
1602.41.00, 1602.42.00, 1602.49.90  900/year (joint),  
 increased by 45/year  Free Cat. H:  
Free in 2027  
EU TRQs - Appendix 2 to Annex I     
Garlic  
0703 20 00  550/year  Free MFN 
Manioc starch  
1108 14 00  5,000/year  Free MFN 
6 Sweet corn  
0710 40 00, 0711 90 30,  
2001 90 30, 2004 90 10, 2005 80 00  1,440/year,  
 increased by 120/year  Free Cat: J;  
0% (EIF) + 
specific rate 
at BR  
Mushrooms  
 the 0711 51 00,  
2003 10 20 and 2003 10 30  275/year  Free 0% (EIF ) + 
specific rate 
at BR  
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  NIC: 500/year,  
 increased by 25/year  
CA jointly: 9,500/year,  
 increased by 475/year  
Quantities in carcass weight 
equivalent  Free 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,  
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,  PAN: 12,000/year  
 increased by 360/year  
CA jointly, excluding PAN: 
150,000/year,  
 increased by 4,500/year  
Quantities in raw sugar 
equivalent  
  
 
 
 
 
 
 
 
Free 
 
 
 
 
 
 
 
Free  
 
 
 
 
 
 
 
MFN 
 
 
 
 
 
 
 WT/REG332/1  
 
- 81 - 
 
  Product (SAC 2007)  Quantity  (MT)  Quota Rate  
In-
quota  Out-of-quota  
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 11e x2, 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  
 0% (EIF) + 
specific rate 
at BR  
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  
 CA jointly: 20,000/year,  
 increased by 1,000/year  Free MFN 
Bulk rum  
2208 40 99  PAN: 1,000 hl/year  
 increased by 50 hl/year  
CA jointly, excluding PAN: 7,000 
hl/year,  
 increased by 300 hl/year  
Quantities in pure alcohol 
equivalent   
 Free MFN 
BR Base rate.   WT/REG332/1  
 
- 82 - 
 
  ANNEX 3  
SPECIAL TREATMENT FOR BANANAS  
 
1. This Annex presents additional details regarding the treatment applied by the EU to fresh 
bananas, excluding plantains (HS 0803.90.10) originating in Central America and listed under 
category "ST" in the Schedule of the EU Party.  
 
Table A3.1 EU: MFN and p referential tariff and trigger levels for imports of bananas from 
Central American countries under the Agreement  
Year Tariff (EUR/tonne)  Trigger import volume (tonnes)  
MFN Preferential  CRI PAN HND GTM NIC SLV 
2013 132 124 1,178,750  431,250  57,500  57,500  11,500  2,300  
2014 132 117 1,230,000  450,000  60,000  60,000  12,000  2,400  
2015 132 110 1,281,250  468,750  62,500  62,500  12,500  2,500  
2016 127 103 1,332,500  487,500  65,000  65,000  13,000  2,600  
2017 122 96 1,383,750  506,250  67,500  67,500  13,500  2,700  
2018 117 89 1,435,000  525,000  70,000  70,000  14,000  2,800  
2019 114 82 1,486,250  543,750  72,500  72,500  14,500  2,900  
2020  114 75 .. .. .. .. .. .. 
2021  114 75 .. .. .. .. .. .. 
.. Not applicable.  
Note:  Information for 2010 -2012 has not been included because the Agreement only entered into force in 
2013.  
Source:  Appendix 3 to Annex I to the Agreement, EU authorities and WTO TAO.  
 
__________