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W0Â •' , 0 COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(93) 52 final 
Brussels, 12 February 1993 
Proposal for a 
COUNCIL pension 
concerning the conclusion of 
a Framework Cooperation Agreement 
between the European Economic Community and the Republics of Costa 
Rica, El Salvador, Guatemala, 
Honduras, Nicaragua and Panama 
(presented by the Commission) 
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~1 -
EXPLANATORY MEMORANDUM 
1. By its decision of 18 November 1992, the Council authorized the 
Commission to open negotiations with the Republics of Costa Rica, El 
Salvador, Guatemala, Honduras, Nicaragua and Panama for a Framework 
Cooperation Agreement, and adopted directives to that end. 
2. Negotiations took place over three sessions held on 17 and 18 December 
1992 and on 21 January 1993, and concluded, on 22 January 1993, with 
the initialling of an Agreement between the European Economic Community 
and the Republics of Costa Rica, El Salvador, Guatemala, Honduras, 
Nicaragua and Panama. The following texts are annexed to the Agreement 
and form an integral part of it : an exchange of letters concerning 
maritime transport ; a unilateral declaration by Central America 
concerning Article 8 ; a unilateral declaration by the Community 
concerning Article 32 and unilateral declarations by both the Community 
and Central America concerning the special concessions granted to the 
Central America under Council Regulation n" 3900/91 of 16 December 1991. 
3. The Commission considers the initialled text to be in line with the 
negotiating directives adopted by the Council. 
4. Because the legal basis for the Agreement includes Article 235 of the 
Treaty in addition to Article 113, Parliament must be consulted. 
5. With a view to the signing and conclusion of this Framework Cooperation 
Agreement between the European Economic Community and the Republics of 
Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama, the 
Commission proposes that the Council adopt the attached draft Decision. 
Proposal for a 
COUNCIL DECISION 
concerning the conclusion of 
a Framework Cooperation Agreement 
between the European Economic Community and the Republics of Costa 
Rica, El Salvador, Guatemala, 
Honduras, Nicaragua and Panama 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
and in particular Articles 113 and 235 thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, 
Whereas the Community, for the attainment of its aims in the sphere of 
external economic relations, should approve the Framework Cooperation 
Agreement with the Republics of Costa Rica, El Salvador, Guatemala, 
Honduras, Nicaragua and Panama; 
HAS DECIDED AS FOLLOWS: 
Art icle 1 
The Framework Cooperation Agreement between the European Economic Community 
and the Republics of Costa Rica, El Salvador, Guatemala, Honduras, 
Nicaragua and Panama is hereby approved on behalf of the Community. 
The text of the Agreement is annexed to this Decision. 
Art icle 2 
The President of the Council shall give the notification provided for in 
Article 37 of the Agreement.1 
Art icle 3 
The Commission, assisted by representatives of the Member States, shall 
represent the Community in the Joint Committee set up by Article 33 of the 
Agreement. 
Art icle 4 
This Decision shall enter into force on the day following that of its 
publication in the Official Journal of the European Communities. 
Done at Brussels, 
For the Counci 
The President 
1 The date of entry into force of the Agreement will published in the 
Official Journal of the European Communities by the General Secretariat 
of the Counc iI. 
-<t-
FRAMEWORK COOPERATION AGREEMENT 
between the European Economic Community 
and the Republics of Costa Rica, El Salvador, Guatemala, 
Honduras, Nicaragua and Panama 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
of the one part, 
THE GOVERNMENTS OF COSTA RICA, EL SALVADOR, GUATEMALA, HONDURAS. NICARAGUA 
AND PANAMA, 
of the other part, 
CONSIDERING the traditional links of friendship between the Member States 
of the European Economic Community (hereinafter referred to as "the 
Community") and the Republics of Costa Rica, El Salvador, Guatemala, 
Honduras, Nicaragua and Panama (hereinafter referred to as "Central 
America"), which over the past nine years have benefited from the 
institution of a productive political dialogue and economic cooperation 
that it is important to consolidate, 
RECALLING the significant contribution made to Central America by the 
implementation of the Cooperation Agreement signed in Luxembourg on 
12 November 1985 and of the final communiqués issued at ministerial 
meetings between the Community and Central America, 
REAFFIRMING their commitment to the principles of the United Nations 
Charter, the precepts of international law, democratic values and respect 
for human rights, and stressing the importance of the Resolution adopted by 
the Council and the Member States of the Community on 28 November 1991 on 
human rights, democracy and development, 
HIGHLIGHTING the progress made as regards peace and democracy in the 
Central American countries through the process of dialogue and national 
reconciliation instigated in the region, and emphasizing also the 
significant efforts made as regards respect for human rights, 
RECOGNIZING that development is a fundamental condition for the 
consolidation of peace and democracy, and a basic requirement for the 
promotion of the economic and social rights of the Central American 
peoples, 
RECOGNIZING the importance attached by the Community to the development of 
trade and economic cooperation with developing countries, and mindful of 
its guidelines and resolutions concerning cooperation with Asian and Latin 
American developing countries, 
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MINDFUL of the positive effects of the process of modernization, economic 
reform and trade liberalization introduced by the Central American 
governments, and of the need to accompany these reforms with the promotion 
of social rights in the most disadvantaged sectors of the population, and 
convinced that Community cooperation has a significant part to play in the 
eradication of the problems of extreme poverty afflicting the region, 
AWARE of the importance of helping Central America become more fully 
integrated into the world economy, 
CONVINCED of the importance of free international trade, the principles of 
the multilateral trade system, greater investment and respect for 
intellectual property rights, 
EMPHASIZING the particular importance the parties attach to greater 
protection of the environment and to the objective of sustainable 
development, 
MINDFUL of the urgent need to strengthen international cooperation in the 
struggle to confront the problems caused by, and related to, drugs, 
AWARE of the need to reaffirm the importance of the role of women as a key 
element in the development process, 
HIGHLIGHTING the progress made by the Sistema de la Integraciôn 
Centroamericana (SICA - Central American Integration System) owing to the 
changes in the Charter of the Organizaciôn de Estados Centroamericanos 
(ODECA - Organization of Central American States) introduced by the 
Tegucigalpa Protocol, and recognizing that Central America is a region made 
up of developing countries, 
CONVINCED of the need to institute a new phase of cooperation between the 
two regions, in line with the conclusions of the San José VI Il Ministerial 
Conference, and recognizing that the fundamental objective of the Agreement 
is to consolidate, deepen and diversify relations between the two parties, 
HAVE DECIDED to conclude this Agreement and to this end have designated as 
their plenipotentiaries: 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
FOR THE GOVERNMENT OF THE REPUBLIC OF COSTA RICA: 
FOR THE GOVERNMENT OF THE REPUBLIC OF EL SALVADOR 
FOR THE GOVERNMENT OF THE REPUBLIC OF GUATEMALA: 
-.«J. 
FOR THE GOVERNMENT OF THE REPUBLIC OF HONDURAS: 
FOR THE GOVERNMENT OF THE REPUBLIC OF NICARAGUA: 
FOR THE GOVERNMENT OF THE REPUBLIC OF PANAMA: 
WHO, having exchanged their full powers, found in good and due form 
HAVE AGREED AS FOLLOWS: 
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Art icle 1 
Democratic basis for cooperation 
Cooperation ties between the Community and Central America and this 
Agreement in its entirety shall be based on respect for democratic 
principles and human rights, which inspire the domestic and external 
policies of both the Community and Central America and which constitute an 
essential component of this Agreement. 
Art icle 2 
Strengthening of cooperation 
The Contracting Parties undertake to strengthen and diversify their 
cooperation in all areas of common interest, particularly the economic, 
financial, commercial, social, science and technology and environmental 
sectors, bearing in mind the lesser degree of development of the Central 
American countries. They also undertake to promote the intensification and 
consolidation of the Central American Integration System. 
In view of the special status of the Central American countries as 
developing countries, the Community shall implement this cooperation in the 
manner most favourable to those countries. 
Art icle 3 
Economic cooperation 
1. The Contracting Parties, taking into account their mutual interest and 
medium- and long-term economic objectives, undertake to establish economic 
cooperation of the widest possible scope, from which no field of activity 
is excluded in principle. The aims of such cooperation shall be in 
particular to: 
(a) strengthen and diversify generally their economic links; 
(b) contribute to the sustainable development of both Parties' economies 
and standards of living, with due regard for the protection of the 
env i ronment; 
(c) encourage the expansion of trade with a view to promoting 
diversification, opening up new markets and improving access to them-, 
(d) encourage the flow of investment and reinforce protection of 
investment ; 
(e) encourage transfers of technology and cooperation among firms, 
particularly small businesses, consolidating the scientific base and 
stimulating the innovatory skills of both parties; 
(f) establish conditions conducive to job creation and improved 
product i v i t y ; 
(g) encourage measures promoting rural development and the improvement of 
urban living conditions; 
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(h) support thë efforts of the Central American countries to sét ih tràih 
policies designed to modernize and develop the agricultural and 
industr iaI sectors; 
(i) support the Central American integration process; 
(j) exchange information on statistics and methodology. 
2. Without excluding any area of activity from the outset, the 
Contracting Parties shall, in their mutual interest and with regard to 
their respective competences and capacities, determine by common agreement 
the spheres to be covered by economic cooperation. Cooperation shall 
centre particularly on the following: 
(a) modernization of the productive sectors (industry, agro-industry, 
agriculture, livestock farming, fisheries, fish farming, mining, 
forest ry ) ; 
(b) energy planning and efficient use of energy-, 
(c) management and protection of natural resources and the environment; 
(d) technology transfers-, 
(e) science and technology; 
(f) intellectual property, including industrial property; 
(g) standards and quality criteria; 
(h) services, including financial services, tourism, transport, 
telecommunications, telematics and information technology; 
(i) exchanges of information on monetary matters and the harmonization of 
macro-economic policies with a view to strengthening regional 
i ntegra t ion ; 
(j) technica I ,reguI at ions on health, plant health and animal health; 
(k) consolidation of regional economic cooperation organizations and 
agenc ies ; 
(I) regional development and frontier integration. 
3. In the interests of attaining the objectives of economic cooperation, 
the Contracting Parties shall, each in accordance with its laws, endeavour 
to promote activities including the following: 
(a) provision of technical assistance, notably by seconding consultants 
and carrying out specific studies in the designated fields of 
coopéra t i on ; 
(b) creation of joint ventures, licensing agreements, technological 
know-how transfers, subcontracting, and other such activities-, 
(c) increased contacts between the two Parties' businessmen through 
conferences, seminars, trade and industry missions designed to boost 
trade and investment flows, trade talks and general and specialized 
trade fairs-, 
(d) joint participation of Community firms in fairs and exhibitions held 
in Central American countries, and vice versa : 
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(e) technical and scientific research projects and exchanges of experts; 
(f) exchanges of information concerning the areas of cooperation covered 
by this Agreement, notably as regards access to existing or future 
databases ; 
(g) setting up of business networks, particularly in the industrial 
sector. 
Art icle 4 
Most-favoured-nation treatment 
The Contracting Parties shall grant each other most-favoured-nation 
treatment in trade, in accordance with the General Agreement on Tariffs and 
Trade (GATT). 
Ar t icle 5 
Trade coopérât ion 
1. The Contracting Parties undertake to develop and broaden trade to the 
highest possible degree, taking into account the economic situation of each 
of the Parties and facilitating trade transactions between them as far as 
poss ible. 
2. To that end, the Parties shall endeavour to find methods of reducing 
and eliminating the obstacles hindering the development of trade, notably 
non-tariff barriers, taking account of work already accomplished in this 
field by international organizations. 
3. The Contracting Parties shall, where appropriate, assess the 
possibility of setting up mutual consultation procedures. 
Art icle 6 
Means of achieving cooperation in trade 
In the interests of bringing about more active cooperation in trade, the 
Contracting Parties shall take measures aimed at: 
promoting meetings, exchanges and contacts between business people 
from each of the Parties, with the aim of identifying goods suitable 
for sale on the market of the other Party; 
facilitating cooperation between their customs services, in particular 
as regards vocational training, the simplification of procedures and 
the detection of customs offences; 
encouraging and supporting trade promotion activities such as 
seminars, symposia, trade and industrial fairs and exhibitions, trade 
and other visits, business weeks, market studies and other activities 
- 5 -
providing support for their own organizations and firms, to enable 
them to engage in activlties Which are of benefit to both sides; 
making allowance for each other's interests with regard to market 
access for commodities, semi-finished and manufactured goods and with 
regard to the stabilization of world commodity markets, in accordance 
with the aims agreed within the appropriate international 
organ i zat ions -, 
examining ways and means of facilitating trade and eliminating 
barriers to trade, taking into consideration the work of internationa 
organ i zat ions. 
Art icle 7 
Industrial cooperation 
1. The Contracting parties shall promote the expansion and 
diversification of the Central American countries' production base in the 
industrial and service sectors, particularly encouraging cooperation 
activities involving the small and medium-sized enterprises of both parties 
designed to facilitate the access of such enterprises to sources of 
capital, markets and appropriate technology, and also fostering joint 
ventures. 
2. To that end, within the limits of their responsibilities, the Parties 
shall encourage projects and operations promoting: 
the consolidation and extension of the networks established for the 
purposes of cooperation-, 
the broad use of Community promotional instruments such as "European 
Community Investment Partners" (ECIP), inter alia through greater use 
of Central American financial institutions; 
coopérât ion between firms, such as joint ventures, subcontracting, 
transfers of technology, licensing, applied research and franchising-. 
Art icle o 
Investment 
The Contracting Parties agree-
to promote, so far as their powers, rules and regulations and policies 
permit, an increase in mutually beneficial investment-, 
to ondeavout to improve the climate for such investment by encouraging 
investment pi omotion and protection agreements between the Community's 
Member States and the Central American countries. 
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?.. In pursuit of these objectives, the Contracting Parties agree to take 
measures to help promote and attract investment, with a view to identifying 
new opportunities for such investment and encouraging the implementation 
thereof . 
These measures shall include: 
(a) seminars, exhibitions and business missions; 
(b) training businessmen with a view to setting up investment projects-, 
(c) technical assistance for joint investment; 
(d) measures under the European Community Investment Partners (ECIP) 
programme. 
3. Cooperation in this field may involve public, private, national or 
multilateral bodies, including regional financial institutions, from both 
Central America and the Community. 
Art icle 9 
Cooperation between financial institutions 
The Contracting Parties shall endeavour to foster, according to their needs 
and within the framework of their respective programmes and legislation, 
cooperation between financial institutions in the form of: 
exchanges of information and experience in fields of mutual interest 
( inter alia by means of seminars, conferences and workshops); 
exchanges of consultants; 
technical assistance. 
exchanges of information in the fields of statistics and methodology. 
Art icle 10 
Science and technology 
1. In accordance with their mutual interest and the aims of their 
policies on science, the Contracting Parties undertake to promote 
cooperation in science and technology aimed in particular at: 
encouraging exchanges of Community and Central American scientists 
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establishing closer links between their scientific and technological 
communities, with particular reference to existing research centres on 
both sides-, 
promoting mutually beneficial transfers of technology; 
implementing measures with a view to achieving the goals of research 
programmes that are of interest to both regions-, 
building up the research capacity of the Central American countries, 
promoting projects involving scientific'and technical research centres 
and stimulating technical and applied research-, 
creating opportunities for economic, industrial and trade cooperation. 
2. Without excluding any sector from the outset, the Parties agree that 
they shall jointly identify the areas for developing their scientific and 
technological cooperation, taking into account the development needs of the 
Central American productive sectors. 
These areas shall include: 
development and management of science and technology policies; 
protection and improvement of the environment, particularly the 
protection and renewal of rainforest and borderline agricultural 
areas; 
renewable energy and rational use of natural resources; 
tropical agriculture, agro-industry and fisheries-, 
health, nutrition and social welfare in general, and tropical diseases 
in part icu lar ; 
areas such as housing, urban development, planning and development, 
transport and communications; 
regional integration and cooperation in science and technology; 
biotechnology applied to medicine and agriculture-, 
taxonomic studies of indigenous flora and fauna, leading to the 
creation of a biological index with applications in medicine, 
agriculture and other sectors. 
3. In order to achieve their chosen objectives, the Contracting Parties 
shall encourage and foster measures including-. 
joint scientific and technological research projects involving private 
and public sector research centres and other qualified institutions on 
both sides; 
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training at the appropriate level for Central American research and 
development professionals, notably through seminars, courses and 
conferences in European centres, exchanges of experts and technicians, 
awards for specialist studies and in-house training; 
exchanges of scientific information, through the joint organization of 
seminars, workshops, working meetings and conferences attended by 
top-level scientists from both Contracting Parties; 
distribution of scientific and technological information and know-how. 
Article 11 
Standards 
Without prejudice to their international obligations, within the scope of 
their responsibilities, and in accordance with their laws, the Contracting 
Parties shall take steps to reduce differences in respect of weights and 
measures, standardization and certification by promoting the use of 
compatible systems of standards and certification. To that end, they shall 
encourage the following in particular: 
links between experts and technical assistance to facilitate exchanges 
of information and studies on weights and measures, standards, quality 
control, promotion and certification, and to promote the development 
of technical assistance in this field; 
exchanges and contacts between bodies and institutions specializing in 
these f i e I ds ; 
measures aimed at achieving mutual recognition of systems and quality 
cert i f i cat ion; 
consultations in the fields concerned. 
Art icle 12 
Intellectual and industrial property 
1. The Contracting Parties undertake, in line with their respective 
legislation, regulations and policies, to provide suitable and effective 
protection for intellectual and industrial property rights, including 
geographical designations and marks of origin, and upgrading that 
protection where appropriate. 
2. The Central American countries shall, in so far as they are able, 
subscribe to the international conventions on intellectual and industrial 
property. 
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Art icle 13 
M i n i ng 
The Contracting Parties agree to promote cooperation to develop the mining 
sector, with due regard for the environmental issues involved. 
This cooperation shall primarily take the form of action designed to: 
encourage the involvement of enterprises of both Parties in the 
exploration, mining and marketing of their mineral resources; 
set up activities to encourage small and medium-sized enterprises 
operating in the mining sector-/ 
exchange experience and technology relating to mining prospecting, 
exploration and exploitation, and undertake joint research, in order to 
increase the opportunities for technological development. 
Art icle 14 
Energy 
The Contracting Parties recognize the importance of the energy sector for 
economic and social development, and are prepared to step up their 
cooperation in this field, notably as regards planning, conservation, the 
efficient use of energy, and the search for new sources of energy. This 
improved cooperation will also take environmental implications into 
cons iderat ion. 
To these ends, the Parties agree to promote: 
joint studies and research; 
assessment of the potential of alternative energy sources and the use 
of energy-saving technology in manufacturing processes; 
ongoing contacts between energy planners; 
the execution of joint programmes and projects in this field. 
Art icle 15 
Transport 
Recognizing the importance of transport for economic development and the 
intensification of trade, the Contracting Parties shall adopt the necessary 
measures to implement cooperation in respect of all types of transport. 
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Cooperation shall centre on the following: 
exchanges of information on the Parties' respective transport policies 
and on subjects of common interest; 
economic, legal and technical training programmes aimed at economic 
operators and those in charge of public-sector departments; 
assistance, particularly in connection with infrastructure 
modernization programmes. 
Article 16 
Information technology and telecommunications 
1. The Contracting Parties recognize that information technology and 
telecommunications are vital to the development of the economy and society 
and declare themselves prepared to promote cooperation in fields of common 
interest, chiefly in respect of the following: 
promotion of investment and joint investment. 
standardization, testing and certification; 
rural and mobile telephone systems, earth and space-based 
telecommunications such as transport networks, satellites, fibre 
optics, Integrated Service Digital Networks (ISDN) and data 
transm i ss ion ; 
electronics and microelectronics; 
computerization and automation; 
research and development in new information technologies and 
telecommun i cat ions. 
2. This cooperation shall take place in particular through: 
promotion of joint projects relating to research and development, the 
establishment of information networks and databanks, facilitation of 
access to existing databanks and information networks. 
collaboration between experts; 
expert assessments, studies and exchanges of information; 
training of scientists and technicians; 
formulation and implementation of specific projects of mutual benefit; 
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Art icle 4fy 
Tour i sm 
Within the bounds of their laws, the Contracting Parties shall contribute 
to cooperation on tourism in the Central American countries, which is to be 
achieved through specific measures including: 
exchanges of information and studies on opportunities for tourist 
development; 
assistance in statistics and data processing; 
training; 
the organization of events and participation in fairs promoting the 
Central American region; 
the promotion of investment and joint investment in order to expand 
tour i st t rave I . 
Art icle 18 
Environment 
The Contracting Parties affirm that they wish to cooperate closely in the 
protection, conservation, improvement and management of the environment, 
focusing on water, soil and air pollution, erosion, desertification, 
deforestation, over-exploitation of natural resources, urban concentration 
and the productive conservation of wild and aquatic flora and fauna, 
protecting them from non-rational exploitation and commercialization, 
particularly where protected species are concerned. 
To these ends, the Parties shall endeavour to work together on measures 
target ing: 
the creation and improvement of public and private sector 
environmental bodies in Central America; 
the promotion of environmental education at all levels and the 
widespread dissemination of information concerning, and solutions to, 
environmental problems with a view to increasing public awareness; 
the implementation of studies, projects and technical assistance; 
the organization of meetings, seminars, workshops, conferences, 
exchanges of technicians and officials specialized in this field; 
exchanges of information and experience; 
research and studies paving the way for joint programmes and projects 
aimed at disaster control and prevention-, 
the promotion of the development and alternative economic use of 
protected areas, with due regard for the specific features of the 
areas concerned. 
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Art icle 19 
Biological diversity 
The Contracting Parties shall endeavour to establish cooperation aimed at 
preserving biological diversity. Such cooperation should be based on three 
criteria, namely: socio-economic utility, ecological conservation and the 
interests of indigenous peoples. 
Art icle 20 
DeveIopment coopérât ion 
With a view to increasing the effectiveness of cooperation in the areas 
referred to below, the Parties shall seek to establish a multiannual 
programme. 
Furthermore, the Parties recognize that the desire to contribute to better 
managed and sustainable development involves giving priority to development 
projects designed to meet the vital needs of the poorest of the Central 
American people, and to the role of women in the development process. The 
Parties also recognize that development and environmental problems are 
close I y I inked. 
Cooperation in this field shall involve measures designed to act against 
extreme poverty, soften the impact of the structural adjustment programmes 
and encourage job creation. Priority shall be given to measures having an 
impact on the restructuring of the economy and taking into account macro-
economic and sectoral problems, and problems linked to the institutional 
development process. 
This cooperation shall be undertaken on the greatest scale possible, in 
close cooperation with the Member States. 
Art icle 21 
Agriculture, forestry and rural areas 
The Contracting Parties agree to establish cooperation in the areas of crop 
and livestock farming, forestry, agro-industry, agri-foodstuffs and 
tropical products, with a view to raising development levels. 
To these ends, in a spirit of cooperation and goodwill and taking into 
account the laws of both Parties on such issues, the Contracting Parties 
sha I I exam i ne .-
opportunities for developing trade in crop, livestock, forestry, agro-
industrial and tropical products; 
health, plant health, animal health and environmental measures, with a 
view to eliminating any obstacles there might be to trade in this 
field. 
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Similarly, and with due respect for the principles of sustainable 
development, the Contracting Parties shall endeavour to promote cooperation 
concerning: 
the development of agriculture; 
the protection and sustainable development of the following 
resources: soil, water, woodland, flora and fauna; 
the agricultural and rural environments-, 
training in fields such as new techniques in crop and livestock 
farming and forestry and business management; 
exchanges between technicians, producers and institutions from both 
sides, with a view to promoting and facilitating trade and investment 
projects ; 
agricultural research; 
the upgrading and interfacing of agricultural and forestry databanks 
andstatistics. 
Art icle 22 
Fisher ies 
The Contracting Parties agree to intensify and develop cooperation in the 
field of fisheries, particularly as regards the evaluation of resources, 
artisanal fishing and aquaculture, inter alia by : 
drawing up and undertaking special programmes and projects of an 
economic, commercial, scientific or technical nature, 
encouraging the private sector to participate in developing this 
sector. 
Art icle 23 
Health 
The Contracting Parties agree to cooperate to improve public health, 
concentrating on the needs of the most disadvantaged sections of the 
population, focusing primarily on the groups at risk. 
To these ends they shall seek to develop joint research, technology 
transfers, exchanges of experience and technical assistance, in particular 
with regard to : 
health service management and administration, particularly in respect 
of primary healthcare; 
the development of vocational training and education programmes in the 
heaIth sector ; 
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programmes and projects for the improvement of sanitary conditions 
(with particular regard to the prevention of endemic diseases and 
infections) and social welfare in urban and rural areas; 
training for basic health workers; 
the treatment and prevention of Acquired Immune Deficiency Syndrome 
(AIDS); 
mother-and-chi Id healthcare and family planning; 
prevention and treatment of cholera. 
Art icle 24 
Social development 
1. The Contracting Parties shall, to the extent of their powers, and in 
line with their respective legislation, establish wide-ranging cooperation 
to further social development, particularly by improving the living 
conditions of the poorest sections of the populations in the Central 
American countries. 
2. The measures and operations to be undertaken with these aims in mind 
include support, essentia I I y in the form of technical assistance, in the 
foI lowing f i eIds: 
protection of children; 
promotion of the role of women. 
support for the process of bringing the informal economy into the 
official economy; 
education and assistance programmes for young people in particularly 
difficult circumstances; 
measures to soften the social impact of structural adjustment 
programmes, notably through projects capable of stimulating job 
créa t ion ; 
social services administration; 
the improvement of living conditions and hygiene in urban and rural 
areas ; 
Art icle 25 
Combating drug abuse 
Within the scope of their powers, the Contracting Parties undertake to 
coordinate and step up their efforts to prevent, reduce and eradicate the 
illegal production, distribution and consumption of drugs, narcotics and 
psychotropic substances, taking account of the work carried out in this 
field by regional and international bodies. 
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This cooperation, with the support of agencies specialized in this field, 
shaII include: 
training, education, treatment, detoxification and rehabilitation 
projects for addicts; 
illicit drug use prevention programmes. 
research programmes; 
measures designed to encourage alternative development, including 
a Iternat i ve crops ; 
exchanges of relevant information, including information concerning 
measures relating to money laundering; 
programmes to monitor trade in precursors, chemical products and 
psychotropic substances-, 
The Contracting Parties may by mutual agreement extend their cooperation to 
other areas. 
Art icle 26 
Assistance for refugees, displaced persons and returnees 
The Parties reiterate their wish to continue cooperating on a broad scale 
to facilitate the reintegration of Central American refugees, displaced 
persons and returnees into productive society. This cooperation shall focus 
on: 
support for the preparation of cooperation activity in collaboration 
with the recipient countries and the International Conference on 
Central American Refugees (CIREFCA); 
implementation of specific projects with partners specialized in this 
field: UNHCR, government bodies in the recipient countries and NGOs of 
recognized experience from both sides. 
Article 27 
Consolidation of the democratic process in Central America 
The Contracting parties agree to support democratic institutions and the 
democratic process in Central America, particularly with regard to the 
organization and monitoring of free and transparent elections, the 
consolidation of the rule of law, respect for human rights and the 
participation of the entire population without discrimination in political 
and soc i a I life. 
To achieve these ends, the Parties shall undertake the following-. 
imp turnout at ion of the mu 11iannua I programme for the promotion of human 
rights approved in Lisbon in February 1992; 
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preparation and implementation of other specific projects designed to 
support democratic institutions in Central America. 
Art icle 28 
Regional integration and cooperation 
The Contracting Parties shall take steps to encourage the regional 
integration of the Central American countries 
Priority shall be given to: 
technical assistance with the technicaTand practical aspects of 
intégrât ion ; 
promotion of subregional and intrareg iona I trade-, 
development of regional environmental cooperation-, 
upgrading regional institutions and supporting the pursuit of joint 
policies and activities; 
encouraging the development of regional communications. 
Art icle 29 
Government 
The Contracting Parties agree to cooperate in matters of administration anc 
institutional organization, including the organization of the legal system. 
To this end, they shall take steps aimed at encouraging exchanges of 
information and training courses for national government officials and 
employees with a view to increasing government efficiency. 
Cooperation in this field shall make use of existing institutions in both 
reg ions. 
Art icle 30 
Information, communication and culture 
The Contracting Parties agree to act jointly in the fields of information 
and communication in order to promote understanding of the nature and aims 
of the European Community and of Central America and to encourage the 
Community Member States and Central American countries to strengthen their 
cu I tura I t ies. 
In particular, these measures shall take the form of: 
exchanges of information on issues of common interest in the fields of 
culture and information; 
organization of cultural events and exchanges, particularly exchanges 
at uni ver s i ty levé I ; 
preparatory studies and technical assistance for the preservation of 
the cultural heritage-, 
- 17 -
Art icle 31 
Tra ining 
With a view to improving training in Central America, the Parties shall 
strengthen their cooperation in areas of mutual interest, taking account of 
new technologies in the field. 
Such cooperation could take the form of: 
steps to improve the training of executives, technicians, 
professionals and skilled workers; 
measures with a significant knock-on effect, training for instructors 
and technical executives who are already in positions of 
responsibility in public and private-sector enterprises, government, 
the public service sector and economic administration; 
specific programmes for exchanges of consultants, know-how and 
technology between training institutions in the European and Central 
American countries, with particular emphasis on the technical, 
scientific and vocational sectors-, 
literacy programmes linked to health and social development projects. 
Article_32 
Resources for undertaking cooperation 
1. The Contracting Parties undertake to make available, within the limits 
of their abilities and through their own channels, the requisite resources, 
including financial resources, for achieving the objectives of the 
cooperation provided for in this Agreement. In this connection, wherever 
possible multiannual programming will be carried out and priorities 
determined, taking account of needs and of the Central American countries' 
level of development. 
2. In order to facilitate the implementation of the cooperation measures 
specified in this Agreement, the Central American countries shall grant 
Community experts the guarantees and facilities they require to carry out 
their tasks. 
Art icle 33 
Joint Committee 
1. The Contracting Parties agree to retain the Joint Committee 
established pursuant to the 1985 Cooperation Agreement. The Joint Committee 
shall be made up of iepresentatives of the Community and of the Central 
American countries, assisted by representatives of the Central American 
i ntegrat ion bod i es. 
- 18 -
2. The Joint Committee shall: 
see to the proper functioning of the Agreement, 
coordinate and assign priority to activities, projects and specific i 
operations in relation to the aims of this Agreement and propose means 
of implementing them; 
study and follow up the development of trade and cooperation between 
the Part ies-, 
make any recommendations required to promote the expansion of trade 
and intensify and diversify cooperation; 
seek appropriate methods of forestalling problems which might arise in 
the interpretation and application of this Agreement. 
3. The agendas for Joint Committee meetings shall be set by mutual 
agreement. The Committee shall itself establish provisions concerning the 
frequency and location of its meetings, chairmanship, and other issues that 
may arise, and shall, where necessary, set up subcommittees. 
Art icle 34 
Other agreements 
1. Without prejudice to the provisions of the Treaties establishing the 
European Communities, neither this Agreement nor any action taken under it 
shall in any way affect the powers of the Member States of the Communities 
to undertake bilateral activities with the Central American countries in 
the field of economic cooperation or where appropriate to conclude new 
economic cooperation agreements with the Central American Countries. 
2. Subject to the provisions of paragraph 1 concerning economic 
cooperation, the provisions of this Agreement shall replace the provisions 
of the agreements concluded between the Member States of the Communities 
and the Central American countries where such provisions are either 
incompatible with or identical to the provisions of this Agreement. 
Art icle 35 
Territorial application 
This Agreement shall apply, on the one hand, to the territories in which 
the Treaty establishing the European Economic Community is applied and 
under the conditions laid down in that Treaty and, on the other, to the 
territory of the six Central American countries party to this Agreement. 
Art icle 36 
Annexes 
The Annexes shall form an integral part of this Agreement. 
- 19 -
Article 37 
Entry into force and tacit renewal 
This Agreement shall enter into force on the first day of the month i 
following the date on which the Contracting Parties have notified each 
other of the completion of the procedures necessary for this purpose. It 
shall remain in force for a period of five years. It shall be renewed 
tacitly for successive one-year periods unless one of the Contracting 
Parties denounces it to the other Party in writing six months before the 
date of exp i ry. 
Denouncement by one of the Central American countries shall not affect the 
validity of the Agreement in respect of the other Central American 
countr ies . • :;. , 
Art icle 38 
Authent ic texts 
This Agreement is drawn up in duplicate in the Danish, Dutch, English, 
French, German, Greek, I ta I ian,Portuguese and Spanish languages, each text 
being equally authentic. 
Art icle 39 
Future developments 
1. The Contracting Parties may by mutual consent develop and improve this 
Agreement with a view to enhancing the levels of cooperation and 
supplementing them by means of agreements on specific sectors or 
act i v i t i es . 
2. With regard to the implementation of this Agreement, either of the 
Contracting Parties may put forward suggestions for widening the scope of 
cooperation, taking into account the experience gained in its application. 
- 20 -
ANNEX 
EXCHANGE OF LETTERS ON MARITIME TRANSPORT 
Letter No 1 
Sir , 
We should be obliged if you would confirm the following: 
When the Agreement on cooperation between the European Community and the 
Republics of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and 
Panama was signed, the Parties undertook to address in the appropriate 
manner issues relating to the operation of shipping, particularly where the 
development of trade might be hindered. Mutually satisfactory solutions or. 
shipping will be sought, while the principle of free and fair competition 
on a commercial basis is observed. 
It has likewise been agreed that such issues should also be discussec by 
the Joint Committee. 
Please accept, Sir, the assurance of my highest consideration. 
On behalf of the Council 
of the European Communities 
\ 
- 21 -
Letter No 2 
Sir, 
I have the honour to acknowledge receipt of your letter and confirm the 
followi ng: 
"When the Agreement on cooperation between the European Community and the 
Republics of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and 
Panama was signed, the Parties undertook to address in the appropriate 
manner issues relating to the operation of shipping, particularly where tru 
development of trade might be hindered. Mutually satisfactory solutions or 
shipping will be sought, while the principled free and fair competition 
on a commercial basis is observed. 
It has likewise been agreed that such issues should also be discussed by 
the Joint Committee." 
Please accept, Sirs, the assurance of my highest consideration. 
For Central America 
- Zl-
jjMHATFPAi nmiARATION RY CENTRAL AMERICA CONCERN I NG_ARUÇLf„8 
The Central American countries hereby declare that they are prepared to 
initiate talks aimed at the conclusion of bilateral agreements on the 
protection and promotion of investment with any Member State of the 
European Economic Community requesting such a dialogue. 
- zy-
UNILATERAL DECLARATION BY THE COMMUNITY CONCERNING ARTICLE 32 
The Community confirms that it intends to give priority to supporting 
projects of a regional nature .and declares that it is prepared to intensify 
this cooperation in both quality and quantity terms. The financial 
resources to be made available for this purpose will reflect both the 
greater scope of this Agreement and the significant increase in the 
resources allocated in the guidelines for cooperation with the developing 
countries of Asia and Latin America in the 1990s. These contributions wili 
form part of the budget allocation. 
\ 
UNILATERAL DECLARATION BY THE COMMUNITY 
CONCERNING THE SPECIAL CONCESSIONS GRANTED TO CENTRAL AMERICA 
UNDER COUNCIL REGULATION NO 3900/91 OF 16 DECEMBER 1991 
The Community hereby declares that it is prepared to: 
(a) study the impact on the Central American and other developing 
countries of the special concessions granted in the context of the 
generalized system of preferences; 
(b) continue the dialogue on this issue with all the Central American 
count r i es -, 
(c) mandate the Commission to assess the situation when the period of 
validity laid down for the granting of the preferences concerned 
expires (1994), particularly in the light of developments as regards 
the conditions that were taken into account in granting the said 
preferences. 
V 
- 2S* 
UNILATERAL DECLARATION BY CENTRAL AMERICA 
CONCERNING THE SPECIAL CONCESSIONS GRANTED TO CENTRAL AMERICA 
UNDER COUNCIL REGULATION NO 3900/91 OF 16 DECEMBER 
Central America stresses the priority it attaches to the preferential 
treatment accorded it by the European Community in the context of the 
generalized system of preferences. 
This treatment is of special importance to Central America in supporting 
the peace process, the consolidation of democracy and national 
reconstruction in the region, and also the efforts being made to ensure 
that the Central American countries' fragile economies, their societies anc 
democratic institutions remain unaffected by drug-related problems. 
~ u 
FINANCIAL STATEMENT 
(FINANCIAL IMPLICATIONS) 
1. Title of ooerat ion: EEC-Central America cooperation agreement 
2. Budget headings involved: B7-5020; B7-3015; B6-8200; B7-3010; 
B7-3011; B7-3012; B7-3013; B7-3014; 
B7-5030; B7-5040; B7-5045 
3. Legal basis: Articles 113 and 235 
4. Description of operation 
4.1. Specific objectives: to consolidate EC-Central America cooperation 
and to broaden the scope of this cooperation to embrace new fields 
4.2. Duration: 5 years 
4.3. Target population: the people of the Central American countries, 
especia I I y 
the business sector (as regards industrial cooperation) 
5. Classification of expenditure or revenue 
5.1. Compulsory/non-compulsory: non-compulsory 
5.2. Differentiated/non-differentiated: differentiated 
5.3. Type of revenue involved: None 
6. Type of expenditure or revenue 
6.1. 100% grant: yes, and sometimes 50% in joint financing operations 
6.2. Grant for Joint financing with other sources in the public and/or 
private sector: on occasion 
6.3. Interest rate subsidy, no 
6.4. Other 
6.5. Should the operation prove an economic success, is there provision 
for all or part of the Community contribution to be reimbursed? No 
6.6. Will the proposed operation cause any change in the level of 
revenue? If so, what sort of change and what type of revenue is 
involved? No 
7. Financial impact on budget appropriations 
For future budgets, the level of expenditure arising from the 
cooperation agreement will be established using the standard procedure. 
8. Anti-fraud measures 
Such expenditure will primarily be implemented by third countries and 
the Commission, which - in agreement with the Court of Auditors - will 
exercise its customary control over expenditure as a whole. 

ISSN 0254-1475 
«29 -
COM(93) 52 final 
DOCUMENTS 
EN ii 
Catalogue number : CB-CO-93-031-EN-C 
ISBN 92-77-52428-6 
Office for Official Publications of the European Commumties 
L-2985 Luxembourg