Proposal for a Council Decision On the conclusion of a Political Dialogue and Cooperation Agreement between the European Community and its Member States, of the one part, and the Republics of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama
Date: 2003-11-10
Institutions: European Commission
Subjects: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, cooperation agreement (EU), democratisation, trade policy

EN

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 10.11.2003
COM(2003) 677 final

2003/0266 (CNS)

Proposal for a

COUNCIL DECISION

On the signature of a Political Dialogue and Cooperation Agreement between the
European Community and its Member States, of the one part, and the Republics of
Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama

Proposal for a

COUNCIL DECISION

On the conclusion of a Political Dialogue and Cooperation Agreement between the
European Community and its Member States, of the one part, and the Republics of
Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama

(presented by the Commission)

 
 
1.

2.

3.

4.

EXPLANATORY MEMORANDUM

The  attached  proposals  constitute  the  legal  instruments  for  the  signature  and
conclusion  of  a  Political  Dialogue  and  Cooperation  Agreement  between  the
European  Community  and  its  Member  States,  of  the  one  part  and  the  Republics  of
Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama:

(i)

Proposal for a Council Decision on the signature of the Agreement;

(ii)

Proposal for a Council Decision on the conclusion of the Agreement.

The  European  Union  and  Central  America  enjoy  a  comprehensive  relationship  that
encompasses  political  dialogue,  a  broad  cooperation  framework  and  a  favourable
trade regime. The San Jose Dialogue forms the cornerstone of EU-Central American
relations. It was initiated in Costa Rica in 1984 and renewed in Florence (1996) and
in  Madrid  (2002).  It  can  claim  a  notable  historical  success  in  that  it  was  the  key
instrument in bringing about peace and re-establishing democracy in the region in the
early 1990s. 

Cooperation with Central America is currently carried out in the context of the 1993
Framework  Cooperation  Agreement.  Historically,  this  cooperation  has  focussed  on
human rights and democracy, integrated rural development,  disaster prevention and
reconstruction,  social  development  and  regional  integration.  The  sub-region  has
traditionally received the largest  share  in  both  absolute  and  per  capita  terms  of  EC
cooperation with the Latin American region. 

Trade relations between the European Union and Central America are dominated by
the ‘Drugs Regime’ of the Generalised System of Preferences. In line with the March
2001  San  Jose  Declaration  and  the  subsequently  established  EU-Central  America
Joint Working Group on Economic and Commercial Relations, Central America has
underlined  its  desire  to  achieve  greater  stability  and  predictability  in  EU-Central
America economic and commercial relations. 

At the European Union-Latin America and the Caribbean Summit held in Madrid on
16/17 May 2002, the Heads of State and Government of the European Union and the
Central  American  Republics  of  Costa  Rica,  El  Salvador,  Guatemala,  Honduras,
Nicaragua  and  Panama  decided  to  negotiate  a  Political  Dialogue  and  Cooperation
Agreement  between  the  two  regions.  The  draft  Negotiating  Directives  for  this
Agreement  were  submitted  to  the  Council  in  December  2002  and  approved  by  the
Council on 18 March 2003. The firs round of negotiations was held in Panama from
13 to 15 May 2003 and the second and concluding round of negotiations was held in
Brussels  from  29  September  to  1  October  2003.  The  text  of  the  Agreement  was
initialled by the Director General  of  External  Relations  of  the  Commission and the
six  Central  American  Ministers  and  Vice-Ministers  of  External  Relations  on  2
October 2003 in Brussels. 

The  new  EU-Central  America  Agreement  focuses  solely  on  political  dialogue  and
cooperation  and  does  not  contain  a  trade  component.  The  main  objectives  of  the
Agreement  are  to:  a)  strengthen  EU-Central  American  relations  by  developing
political  dialogue  and  reinforcing  cooperation,  and  b)  create  the  conditions  under
which,  building  on  the  outcome  of  the  Doha  Work  Programme,  a  feasible  and

2

mutually beneficial Association Agreement, including a free trade agreement, could
be negotiated between the parties.

The Political Dialogue Title institutionalises and strengthens the  San Jose Dialogue
process.  The  Cooperation  Title  is  based  on  current  cooperation  with  broadened
coverage  to  include  new  areas  of  cooperation  such  as  human  rights,  migration  and
counter-terrorism.  Special  emphasis  is  placed  on  cooperation  in  support  of  the
process of regional integration in Central America. The Agreement builds upon and
will replace the existing 1993 Framework Cooperation Agreement between the two
regions.

5.

The  Commission  has  judged  the  results  of  the  negotiations  to  be  satisfactory  and
requests the Council:

– 

– 

to  authorise  the  signature,  on  behalf  of  the  European  Community,  of  the
Political  Dialogue  and  Cooperation  Agreement  between  the  Community  and
the Republics of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and
Panama; and

to  conclude  the  Political  Dialogue  and  Cooperation  Agreement  with  the
Republics  of  Costa  Rica,  El  Salvador,  Guatemala,  Honduras,  Nicaragua  and
Panama, on behalf of the Community.

The European Parliament will be called upon to give its opinion on this accord.

The  Member  States  are  also Parties  to  the  Agreement,  which  therefore  needs  to  be
approved by them according to their internal procedures.

3

Proposal for a

COUNCIL DECISION

On the signature of a Political Dialogue and Cooperation Agreement between the
European Community and its Member States, of the one part, and the Republics of
Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama

THE COUNCIL OF THE EUROPEAN UNION,

Having  regard  to the Treaty establishing  the  European  Community  and  in  particular  Article
181 thereof in conjunction with Article 300(2), first subparagraph, first sentence;

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

On 18 March 2003 the Council authorised the Commission to open negotiations for a
Political Dialogue and Cooperation Agreement between the European Community and
its  Member  States,  of  the  one  part,  and  the  Republics  of  Costa  Rica,  El  Salvador,
Guatemala, Honduras, Nicaragua and Panama, of the other part;

These  negotiations  have  been  concluded  and  the  Agreement  was  initialled  on  2
October 2003 in Brussels;

Subject  to  its  possible  conclusion  at  a  later  date,  the  Political  Dialogue  and
Cooperation Agreement should be signed on behalf of the Community.

HAS DECIDED AS FOLLOWS:

Sole Article

The  President  of  the  Council  is  hereby  authorised  to  designate  the  person(s)  empowered  to
sign,  on  behalf  of  the  European  Community,  the  Political  Dialogue  and  Cooperation
Agreement between the European Community and its Member States, of the one part, and the
Republics of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The text
of the Agreement is attached to this decision.

Done at Brussels, 

For the Council
The President

4

2003/0266 (CNS)

Proposal for a

COUNCIL DECISION

On the conclusion of a Political Dialogue and Cooperation Agreement between the
European Community and its Member States, of the one part, and the Republics of
Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article
181 thereof in conjunction with Article 300(2), first subparagraph, first sentence, and Article
300(3), first subparagraph ;

Having regard to the proposal from the Commission;

Having regard to the opinion of the European Parliament;

Whereas

(1)

the Political Dialogue and Cooperation Agreement between the European Community
and its Member States, of the one part, and the Republics of Costa Rica, El Salvador,
Guatemala,  Honduras,  Nicaragua  and  Panama,  has  been  signed  on  behalf  of  the
European Community, in […] on […] , 

(2)

The Agreement should be approved,

HAS DECIDED AS FOLLOWS : 

Sole Article

1.

The  Political  Dialogue  and  Cooperation  Agreement  between 
the  European
Community and its Member States, of the one part, and the Republics of Costa Rica,
El  Salvador,  Guatemala,  Honduras,  Nicaragua  and  Panama,  is  hereby  approved  on
behalf of the European Community.

2.

The text of the Agreement is attached to this Decision.

Done at Brussels, 

For the Council
The President

5

POLITICAL DIALOGUE AND COOPERATION AGREEMENT

between the European Community and its Member States, of the one part, and the
Republics of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama

THE KINGDOM OF BELGIUM,

THE KINGDOM OF DENMARK,

THE FEDERAL REPUBLIC OF GERMANY,

THE HELLENIC REPUBLIC,

THE KINGDOM OF SPAIN,

THE FRENCH REPUBLIC,

IRELAND,

THE ITALIAN REPUBLIC,

THE GRAND DUCHY OF LUXEMBOURG,

THE KINGDOM OF THE NETHERLANDS,

THE REPUBLIC OF AUSTRIA,

THE PORTUGUESE REPUBLIC,

THE REPUBLIC OF FINLAND,

THE KINGDOM OF SWEDEN,

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

Contracting  Parties  to  the  Treaty  establishing  the  European  Community  and  the  Treaty  on
European Union, hereinafter referred to as the ‘Member States’, and

THE EUROPEAN COMMUNITY, hereinafter referred to as ‘the Community’

of the one part, and

THE REPUBLIC OF COSTA RICA,

THE REPUBLIC OF EL SALVADOR,

THE REPUBLIC OF GUATEMALA,

THE REPUBLIC OF HONDURAS,

THE REPUBLIC OF NICARAGUA,

THE REPUBLIC OF PANAMA, 

6

CONSIDERING the traditional historical and cultural links between the Parties and the desire
to  strengthen  their  relations,  building  on  the  existing  mechanisms  that  govern  relations
between the Parties;

CONSIDERING the positive development in both regions during the last decade, which has
enabled the promotion of common goals and interests to enter into a new stage of relations,
deeper and more modern and permanent, in order to respond to current internal challenges and
to international events; 

REAFFIRMING their respect for democratic principles and fundamental human rights as set
out in the Universal Declaration of Human Rights;

RECALLING their commitment to the principles of the rule of law and good governance;

BASED  on  the  principles  of  shared  responsibilities  and  convinced  of  the  importance  of  the
prevention of the use of illicit drugs and reducing their harmful effects as well as tackling the
illicit cultivation, production, processing and trafficking of drugs and their precursors;

HIGHLIGHTING their commitment to work together in pursuit of the objectives of poverty
eradication,  equitable  and  sustainable  development,  including  aspects  of  vulnerability  to
natural  disasters,  environmental  conservation  and  protection  and  biodiversity,  and  the
progressive integration of Central American countries into the world economy;

EMPHASIZING  the  importance  the  Parties  attach  to  the  consolidation  of  the  political
dialogue and economic cooperation process built up between the Parties under the San Jose
Dialogue initiated in 1984 and renewed in Florence in 1996 and in Madrid in 2002; 

HIGHLIGHTING  the  need  to  strengthen  the  programme  of  cooperation  governed  by  the
Framework  Cooperation  Agreement  between  the  European  Economic  Community  and  the
Republics of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama signed in
1993 (hereinafter referred to as the “1993 Framework Cooperation Agreement”); 

RECOGNIZING the advances in the Central American economic integration process, such as
for  example,  the  efforts  towards  a  prompt  establishment  of  a  Central  American  Customs
Union,  the  entry  into  effect  of  the  Trade  Dispute  Settlement  Mechanism,  the  signing  of  the
Central American Treaty on Investment and Trade in Services; as well as the need to deepen
the process of regional integration, regional trade liberalization and economic reform within
the Central American region; 

AWARE  of  the  need  to  promote  sustainable  development  in  both  regions  through  a
development  partnership  involving  all  relevant  stakeholders,  including  civil  society  and  the
private  sector,  in  line  with  the  principles  set  out  in  the  Monterrey  Consensus  and  the
Johannesburg Declaration, and its Plan for Implementation;

MINDFUL of the need to establish cooperation on migration issues; 

RECOGNIZING  that  no  provision  in  this  agreement  shall  in  any  way  refer  to,  nor  shall  be
interpreted or construed in any way such as defining the position of the Parties in ongoing or
future bilateral or multilateral trade negotiations;

EMPHASIZING the will to co-operate in international fora on issues of mutual interests; 

7

BEARING  IN  MIND  the  strategic  partnership  developed  between  the  European  Union  and
Latin America and the Caribbean in the context of the 1999 Rio Summit and reaffirmed at the
2002 Madrid Summit; and

TAKING INTO ACCOUNT the Madrid Declaration of May 2002;

HAVE DECIDED TO CONCLUDE THIS AGREEMENT:

TITLE I

PRINCIPLES, OBJECTIVES, AND SCOPE OF THE AGREEMENT

Article I
Principles

Respect for democratic principles and fundamental human rights, as laid down in the
Universal  Declaration  of  Human  Rights,  as  well  as  for  the  principle  of  the  rule  of
law, underpins the internal and international policies of the Parties and constitutes an
essential element of this Agreement.

The Parties confirm their commitment to the promotion of sustainable development
and to contribute to reaching the Millennium Development Goals.

The  Parties  reaffirm  their  attachment  to  the  principles  of  good  governance  and  the
fight against corruption.

Article 2
Objectives and Scope

The  Parties  confirm  their  joint  objective  of  strengthening  their  relations  by
developing their political dialogue and reinforcing their cooperation.

The  Parties  likewise  reaffirm  their  decision  to  strengthen  cooperation  on  trade,  on
investments, and on economic relations.

The  Parties  confirm  their  joint  objective  of  working  towards  creating  conditions
under  which,  building  on  the  outcome  of  the  Doha  Work  Programme,  which  the
Parties  have  committed  to  complete  by  the  end  of  2004,  a  feasible  and  mutually
beneficial  Association  Agreement,  including  a  Free  Trade  Agreement,  could  be
negotiated between them.

Implementation of this Agreement should help to create these conditions by striving
for  political  and  social  stability,  deepening  the  regional  integration  process  and
reducing poverty within a sustainable development framework in Central America.

This Agreement governs the political dialogue and cooperation between the Parties and
contains  the  necessary  institutional  arrangements  for  its  application.  No  provision  of
this agreement shall define the position of the Parties in ongoing or future bilateral or
multilateral trade negotiations.

The  Parties  undertake  to  periodically  assess  progress,  taking  account  of  progress
achieved before the entry into force of the Agreement.

1.

2.

3.

1.

2.

3.

4.

5.

6.

TITLE II

8

POLITICAL DIALOGUE

Article 3
Objectives

1.

2.

The  Parties  agree  to  reinforce  their  regular  political  dialogue  on  the  basis  of  the
principles  set  out  in  the  Joint  Declarations  of  the  San  Jose  Dialogue  process,  in
particular the Declarations of San Jose (28/29 September 1984), Florence (21 March
1996) and Madrid (18 May 2002). 

The Parties agree that political dialogue shall cover all aspects of mutual interest and
any other international issue. It shall prepare the way for new initiatives for pursuing
common  goals  and  establishing  common  ground  in  areas  such  as  regional
integration, poverty reduction and social cohesion, sustainable development, regional
security  and  stability,  conflict  prevention  and  resolution,  human  rights,  democracy,
good  governance,  migration,  and  the  fight  against  corruption,  counter-terrorism,
drugs, and small arms and light weapons. It shall also provide a basis for initiatives
to  be  taken  and  support  efforts  to  develop  initiatives,  including  cooperation,  and
actions throughout the Latin American region.

3.

The Parties agree that a strengthened political dialogue shall enable a broad exchange
of information and shall provide a forum for joint initiatives at international level.

Article 4
Mechanisms

The Parties agree that their political dialogue shall be conducted:

(a)

(b)

(c)

(d)

where  appropriate  and  agreed  by  both  Parties,  at  Heads  of  State  and  Government
level;

at ministerial level, in particular in the framework of the Ministerial Meeting of the
San Jose Dialogue;

at senior official level; 

at working level;

and shall make maximum use of diplomatic channels.

Article 5
Cooperation in the field of foreign and security policy

The  Parties  shall,  as  far  as  possible  and  in  accordance  with  their  interests,  co-ordinate  their
positions and take joint initiatives in the appropriate international fora and co-operate in the field
of foreign and security policy.

9

TITLE III

COOPERATION

Article 6
Objectives

1.

(a)

(b)

(c)

2.

3.

The Parties agree that the cooperation foreseen in the 1993 Framework Cooperation
Agreement shall be strengthened and broadened to other areas. It shall focus on the
following objectives:

promotion  of  political  and  social  stability  through  democracy,  respect  for  human
rights and good governance;

deepening  of  the  process  of  regional  integration  among  the  countries  of  Central
America  to  contribute  to  higher  economic  growth  and  gradual  improvement  of
quality of life for their peoples;

poverty reduction and promotion of more equitable access to social services and the
rewards  of  economic  growth,  ensuring  an  appropriate  balance  between  economic,
social and environmental components in a sustainable development context.

The Parties agree that cooperation shall take account of cross-cutting aspects relating
to  economic  and  social  development,  including  issues  such  as  gender,  respect  for
indigenous  peoples  and  other  Central  American  ethnic  groups,  natural  disaster
prevention  and  response,  environmental  conservation  and  protection,  biodiversity,
cultural diversity, research and technological development. Regional integration shall
also be considered as a cross-cutting theme and in that regard cooperation actions at
national level should be compatible with the process of regional integration. 

The  Parties  agree  that  measures  aimed  at  contributing  to  regional  integration  in
Central America and strengthening inter-regional relations between the Parties shall
be encouraged.

Article 7
Methodology

The Parties agree that cooperation shall be implemented by means of technical and financial
assistance,  studies,  training,  exchanges  of  information  and  expertise,  meetings,  seminars,
research  projects  or  any  other  means  agreed  by  the  Parties  in  the  context  of  the  area  of
cooperation,  the  objectives  pursued  and  the  means  available,  in  conformity  with  the  norms
and  regulations  that  apply  to  this  cooperation.  All  entities  involved  in  cooperation  will  be
subject to a transparent and accountable management of resources. 

Article 8
Cooperation in the field of human rights, democracy and good governance

The  Parties  agree  that  cooperation  in  this  field  shall  actively  support  governments  and
representatives of civil society through actions, in particular in the following areas:

(a)

promotion  and  protection  of  human  rights  and  consolidation  of  the  process  of
democratisation, including the management of electoral processes; 

10

(b)

strengthening  the  rule  of  law  and  the  good  and  transparent  management  of  public
affairs,  including  the  fight  against  corruption  at  local,  regional  and  national  levels;
and

(c)

reinforcing the independence and efficiency of judicial systems.

1.

2.

3.

1.

2.

Article 9
Cooperation in the field of conflict prevention

The  Parties  agree  that  cooperation  in  this  field  shall  promote  and  sustain  a
comprehensive  peace  policy  which  encourages  dialogue  among  democratic  nations
in the face of present challenges including the prevention and resolution of conflicts,
peace  restoration  and  justice  in  the  context  of  human  rights.  This  policy  shall  be
based on the principle of ownership and shall focus primarily on developing regional,
sub-regional and national capacities. In order to prevent conflicts, and as required, it
shall  ensure  equal  political,  economic,  social  and  cultural  opportunity  for  all
segments  of  society,  reinforce  democratic  legitimacy,  promote  social  cohesion  and
the  effective  management  of  public  affairs,  establish  effective  mechanisms  for
peaceful  conciliation  of  interests  of  different  groups,  and  encourage  an  active  and
organized civil society, in particular making use of existing regional institutions. 

Cooperation activities may include, as appropriate, among others, support for country
specific  mediation,  negotiation  and  reconciliation  processes,  efforts  developed  to
help  children,  women  and  elder  people  and  for  actions  in  the  fight  against  anti-
personnel mines. 

The  Parties  shall  also  cooperate  in  the  field  of  prevention  and  combat  of  illegal
traffic of  small arms  and  light  weapons  with  the  aim  of  developing,  among  others,
coordination  in  actions  to  strengthen  legal,  institutional  and  police  cooperation,  as
well  as  the  collection  and  destruction  of  illicit  small  arms  and  light  weapons  in
civilian hands.

Article 10
Cooperation to strengthen modernization of the state and public administration

The Parties agree that the objective of cooperation in this field shall be to strengthen
modernization and professionalisation of public administration in Central American
countries,  including  supporting  the  process  of  decentralization  and  organizational
changes resulting from the process  of  Central  American  integration.  In  general, the
aim shall be to improve organizational efficiency, to ensure transparent management
of  public  resources  and  accountability,  as  well  as  to  improve  the  legal  and
institutional  framework  based,  among  others,  on  best  practices  of  the  Parties  and
taking advantage of the experience  gained through the development of policies and
instruments in the European Union. 

This  cooperation  may  include,  among  other  things,  programmes  aimed  at  building
capacities for policy design and implementation in all areas of mutual interest, inter
alia  public  service  delivery,  budget  composition  and  execution,  prevention  of  and
fight against corruption and reinforcing judiciary systems. 

11

1.

2.

3.

4.

(a)

(b)

(c)

(d)

Article 11
Cooperation in the field of regional integration

The Parties agree that cooperation in this field shall reinforce the process of regional
integration  within  the  Central  American  region,  in  particular  the  development  and
implementation of its common market.

Cooperation shall support the development and strengthening of common institutions
in  the  Central  American  region  and  shall  promote  closer  cooperation  between  the
institutions concerned.

Cooperation  shall  also  promote  the  development  of  common  policies  and  the
harmonization  of  the  legal  framework,  only  and  exclusively  to  the  extent  that  they
are  covered  by  the  Central  American  integration  instruments  and  as  agreed  by  the
Parties, including sectorial policies in areas such as trade, customs, energy, transport,
communications,  environment  and  competition,  as  well  as  the  co-ordination  of
macroeconomic  policies  in  areas  such  as  monetary  policy,  fiscal  policy  and  public
finance.

More  specifically,  it  may  include,  among  others  through  the  provision  of  trade
related technical assistance:

the  provision  of  assistance  to  strengthen  the  process  of  consolidation  and
implementation of a functioning Central American customs union;

the provision of assistance in reducing and eliminating obstacles to the development
of intra-regional trade;

cooperation  in  the  simplification,  modernization,  harmonization  and  integration  of
customs  and  transit  regimes  and  provision  of  support  in  terms  of  development  of
legislation, norms and professional training; and

the  provision  of  assistance  to  deepen  the  process  towards  the  consolidation  and
functioning of an intra-regional common market.

Article 12
Regional cooperation

The  Parties  agree  to  use  all  existing  cooperation  instruments  to  promote  activities  aimed  at
developing active and reciprocal cooperation between the European Union and Central America
and, without undermining cooperation between the Parties, between Central America and other
countries/regions  in  Latin  America  and  the  Caribbean  in  areas  such  as  trade  and  investment
promotion,  environment,  natural  disaster  prevention  and  response,  scientific,  technical  and
technological  research,  energy,  transport,  communications  infrastructure,  culture,  regional
development and land use planning, among others.

Article 13
Trade cooperation

1.

The  Parties  agree  that  cooperation  in  trade  shall  promote  the  integration  of  the
countries  of  Central  America  into  the  world  economy.  It  shall  also  aim  to  foster,
through  the  provision  of  trade  related  technical  assistance,  the  development  and

12

2.

3.

1.

2.

diversification of intra-regional trade as well as trade with the European Union to the
highest possible degree.

The Parties agree to implement an integrated trade cooperation agenda to best tap the
opportunities  that  trade  implies,  broadening  the  productive  base  that  will  benefit
from  trade,  including  the  development  of  mechanisms  to  face  the  challenges  of
greater  market  competition,  and  building  those  skills,  instruments  and  techniques
required to accelerate the enjoyment of all benefits of trade. 

In order to implement the cooperation agenda, and to maximize the opportunities of
bilateral,  regional,  or  multi-lateral  trade  negotiations  and  agreements,  the  Parties
agree to strengthen regional technical capacity building. 

Article 14
Cooperation in the field of services

The  Parties  agree  to  strengthen  their  cooperation  in  the  field  of  services,  in
conformity with the rules of  the General Agreement on Trade in Services (GATS),
reflecting 
the  development  and
diversification of their economies. Increased cooperation shall be aimed at improving
the competitiveness of the Central American services sector in a manner consistent
with sustainable development.

importance  of  services  for 

increasing 

the 

The  Parties  shall  identify  the  services  sectors  on  which  cooperation  will  centre.
Activities  shall  be  geared,  among  other  things,  to  the  regulatory  environment  with
due  regard  to  domestic  legislation,  as  well  as  to  access  to  sources  of  capital  and
technology. 

Article 15
Cooperation on intellectual property

The  Parties  agree  that  cooperation  in  this  field  shall  be  aimed  at  promoting  investment,
technology transfer, dissemination of information, cultural and creative activities and related
economic  activities  as  well  as  access  and  benefits  sharing  in  the  areas  identified  by  the
Parties.  Cooperation  shall  be  aimed  at  improving  the  laws,  regulations  and  policies,  with  a
view  to  promote  levels  of  protection  and  enforcement  of  intellectual  property  rights  in
accordance with the highest international standards.

Article 16
Cooperation on public procurement

The  Parties  agree  that  cooperation  in  this  field  shall  aim  to  promote  reciprocal,  non-
discriminatory,  transparent  and,  if  the  Parties  so  agree,  open1  procedures  for  respective
government and public sector procurement, and where appropriate, at all levels.

Article 17
Cooperation in the field of competition policy

The  Parties  agree  that  cooperation  in  the  field  of  competition  policy  shall  promote  the
effective  establishment  and  application  of  competition  rules  as  well  as  the  dissemination  of

1

As provided in Article 2(5), ‘open’ shall not be construed to mean ‘access’. 

13

                                                
information in order to foster transparency and legal certainty for enterprises operating in the
Central American and European Union markets.

Article 18
Customs cooperation

The Parties agree that cooperation in this field shall be aimed at developing measures
related  to  customs  and  trade  facilitation  and  promote  the  exchange  of  information
concerning the customs systems of the Parties, in order to facilitate trade between the
Parties.

As agreed by the Parties, cooperation may include, among others:

simplification  and  harmonization  of  import  and  export  documentation  based  on
international standards, including use of simplified declarations;

improvement  of  customs  procedures,  through  methods  such  as  risk  assessment,
simplified  procedures  for  entry  and  release  of  goods,  granting  of  authorized  trader
status, using electronic data interchange (EDI) and automated systems;

measures to improve transparency and appeal procedures against customs decisions
and rulings;

mechanisms to promote regular consultation with the trade community on import and
export regulations and procedures.

Consideration  may  be  given,  within  the  institutional  framework  established  by  this
Agreement, to the conclusion of a mutual assistance protocol on customs matters.

Article 19
Cooperation on technical regulations and conformity assessment

The  Parties  agree  that  cooperation  on  standards,  technical  regulations  and  on
conformity assessments is a key objective for the development of trade in particular
with regard to intra-regional trade. 

As agreed by the Parties, cooperation shall promote:

provision  of  technical  assistance  programmes  in  Central  America  to  ensure  that
systems  and  structures  for  standards,  accreditation,  certification  and  metrology  are
compatible with: 

-

-

international standards; 

essential requirements concerning health and safety, conservation of plants and
animals, consumer protection and environmental protection. . 

the objective of cooperation in this area to facilitate market access.

In practice, cooperation shall:

provide  organizational and technical support to foster  the  establishment  of  regional
networks  and  bodies,  and  increase  co-ordination  of  policies  to  promote  a  common

1.

2.

(a)

(b)

(c)

(d)

3.

1.

2.

(a)

(b)

3.

(a)

14

(b)

(c)

1.

2.

approach to the use of  international and  regional standards with  regard to technical
regulations and conformity assessment procedures;

encourage any measure aimed at bridging the gap between the Parties in the areas of
conformity assessment and standardization; and

encourage any measures designed to improve transparency, good regulatory practices
and the promotion of quality standards for products and business practices.

Article 20
Industrial cooperation

The  Parties  agree  that  industrial  cooperation  shall  promote  the  modernization  and
restructuring  of  Central  American  industry  and  individual  sectors,  as  well  as
industrial  cooperation  between  economic  operators,  with 
the  objective  of
strengthening  the  private  sector  under  conditions  which  promote  environmental
protection. 

Industrial cooperation initiatives shall reflect the priorities determined by the Parties.
They  shall  take  into  account  the  regional  aspects  of  industrial  development,
promoting  trans-national  partnerships  where  relevant.  Initiatives  shall  seek  in
particular  to  establish  a  suitable  framework  for  improving  management  know-how
and  promoting  transparency  as  regards  markets  and  conditions  for  business
undertakings.

Article 21
Cooperation in the field of small and medium-sized and micro-enterprise development

The  Parties  agree  to  promote  a  favorable  environment  for  the  development  of  small  and
medium-sized and micro-enterprises, including those in rural areas, in particular by:

(a)

(b)

promoting contacts between economic operators, encouraging joint investments and
joint ventures and information networks through existing horizontal programmes;

facilitating  access  to  channels  of  finance,  providing  information  and  stimulating
innovation.

Article 22

Cooperation on agriculture and rural sector, forestry and sanitary and phytosanitary
measures

1.

2.

(a)

The  Parties  agree  to  mutual  cooperation  in  agriculture  in  order  to  promote
sustainable  agriculture,  agricultural  and  rural  development,  forestry,  sustainable
social  and  economic  development  and  food  security  for  the  countries  of  Central
America.

The cooperation shall focus with a view to promote capacity-building, infrastructure
and technology transfer, addressing matters such as:

sanitary,  phytosanitary,  environmental  and  food  quality  measures,  taking  into
account the legislation in force for both Parties, in compliance with WTO rules and
other competent international organisations;

15

(b)

(c)

(d)

(e)

(f)

(g)

diversification and restructuring of agricultural sectors;

the  mutual  exchange  of  information,  including  that  concerning  the  development  of
the Parties’ agricultural policies;

technical  assistance  for  the  improvement  of  productivity  and  the  exchange  of
alternative crop technologies;

scientific and technological experiments;

measures aimed at enhancing the  quality of agricultural products,  capacity  building
measures for producer associations and supporting trade promotion activities;

enhanced capacity for the implementation of sanitary and phytosanitary measures to
facilitate market access as well as ensuring an appropriate level of health protection
in accordance with the provisions of the WTO/SPS agreement. 

Article 23
Fisheries and aquaculture cooperation

The  Parties  agree  to  develop  economic  and  technical  cooperation  in  the  fisheries  and
aquaculture sector, especially in aspects such as the sustainable exploitation, management and
conservation of fisheries resources, including environmental impact assessment. Cooperation
should also include areas such as the processing industry and facilitation of trade. Cooperation
in the fisheries sector could lead to the  conclusion of bilateral fisheries agreements between
the Parties or between the European Community and one or more Central American countries
and/or to the conclusion of multilateral fisheries agreements between the Parties. 

Article 24
Cooperation on mining

The  Parties  agree  that  cooperation  in  the  field  of  mining,  taking  into  account  aspects  of
environmental conservation, shall focus principally on the following:

(a)

(b)

(c)

(d)

(e)

promoting  the  participation  of  enterprises  from  the  Parties  in  the  exploration,
exploitation and sustainable use of minerals in accordance with their legislation ;

promoting  exchanges  of  information,  experience  and  technology  relating  to  mining
exploration and exploitation;

promoting  exchanges  of  experts  and  performing  joint  research  to  increase
opportunities for technological development;

developing  measures  to  promote  investment  in  this  field,  in  accordance  with  the
legislation  of  each  Central  American  country  and  of  the  European  Union  and  its
Member States;

developing  measures 
environmental responsibility in this sector.

to  promote  environmental 

integrity  and  corporate

16

Article 25
Energy cooperation

1.

2.

(a)

(b)

(c)

(d)

The Parties agree that their joint objective will be to foster cooperation in the field of
energy,  in  key  sectors  such  as  hydroelectricity,  electricity,  oil  and  gas,  renewable
energy,  energy  saving  technology,  rural  electrification  and  regional  integration  of
energy  markets,  among  others  as  identified  by  the  Parties,  and  in  compliance  with
domestic legislation. 

Cooperation may include, among others, the following:

formulation and planning of energy policy, including inter-connected infrastructures
of  regional  importance,  improvement  and  diversification  of  energy  supply  and
improvement  of  energy  markets,  including  facilitation  of  transit,  transmission  and
distribution within the Central American countries;

management and training for the energy sector and transfer of technology and know-
how;

promotion of energy saving, energy efficiency, renewable energy and studying of the
environmental impact of energy production and consumption;

promote  the  application  of  clean  development  mechanism  to  support  the  climate
change initiatives and its variability;

(e)

the issue of clean and peaceful uses of nuclear energy.

Article 26
Transport cooperation

1.

2.

(a)

(b)

(c)

(d)

The  Parties  agree  that  cooperation  in  this  field  shall  focus  on  restructuring  and
modernizing  transport  and  related  infrastructure  systems,  improving  the  movement
of passengers and goods and providing better access to urban, air, maritime, rail and
road transport markets by refining the management of transport from the operational
and administrative points of view and by promoting high operating standards.

Cooperation may include the following:

exchanges  of  information  on  the  Parties’  policies,  especially  regarding  urban
transport  and  the  interconnection  and  interoperability  of  multimodal  transport
networks and other issues of mutual interest;

the  management  of  railways,  ports  and  airports,  including  appropriate  cooperation
between the relevant authorities;

cooperation  projects  for  transfer  of  European  technology  in  the  Global  Navigation
Satellite System and urban public transport centers;

improvement  of  safety  and  pollution  prevention  standards  including  cooperation  in
the  appropriate  international  forums  aiming  to  ensure  better  enforcement  of
international standards.

17

Article 27
Cooperation on information society, information technology and telecommunications

1.

2.

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

The Parties agree that information technology and communications are key sectors in
a  modern  society  and  are  of  vital  importance  to  economic  and  social  development
and the smooth transition  to  the  information  society.  Cooperation in  this  field  shall
contribute to the reduction of the digital divide and development of human resources.

Cooperation in this area shall aim to promote:

dialogue on all aspects of information society;

in  compliance  with  domestic  legislation  of  the  Parties,  dialogue  on  regulatory  and
policy aspects of information technology and communications, including standards;

exchanges of information on standards conformity assessment and type-approval;

dissemination of new information and communications technologies;

joint  research  projects  on  information  and  communications  technologies  and  pilot
projects in the fields of information society applications;

interconnection and interoperability of telematic networks and services;

exchanges and training of specialists;

development of e-government applications;

Article 28
Audio-visual cooperation

The Parties agree to promote cooperation in the audio-visual sector and in the media sector in
general, through joint initiatives in training as well as audio-visual development,  production
and distribution activities, including the educational and cultural field. Cooperation shall take
place  in  accordance  with  the  relevant  national  copyright  provisions  and  applicable
international agreements.

Article 29
Cooperation on tourism

The Parties agree that cooperation in this field shall aim to consolidate best practices in order
to ensure balanced  and sustainable  development of tourism in the Central  American  region.
Cooperation  should  aim  to  develop  strategies  to  better  position  and  promote  the  region  in
Europe as a competitive tourist multi destination. 

18

Article 30
Cooperation between financial institutions

The  Parties  agree  to  foster,  according  to  their  needs  and  within  the  framework  of  their
respective programmes and legislation, cooperation between financial institutions.

1.

2.

(a)

(b)

(c)

(d)

1.

2.

1.

2.

Article 31
Cooperation in the field of investment promotion

The Parties agree to promote, within the scope of their respective competencies, an
attractive and stable reciprocal investment climate.

Cooperation may include:

encouraging  mechanisms  for  the  exchange  and  dissemination  of  information  on
investment legislation and opportunities;

developing  a  legal  framework  favourable  to  investment  on  both  sides,  where
appropriate, through the conclusion of bilateral agreements promoting and protecting
investment between the Member States and the Central American countries ; 

promoting simplified administrative procedures; 

developing joint venture mechanisms.

Article 32
Macroeconomic dialogue

The Parties agree that cooperation shall aim to promote the exchange of information
on  respective  macroeconomic  trends  and  policies,  as  well  as  the  sharing  of
experiences  in  the  co-ordination  of  macroeconomic  policies  in  the  context  of  a
common market.

The  Parties  shall  also  aim  to  deepen  the  dialogue  between  their  authorities  on
macroeconomic  matters  and,  as  agreed  by  the  Parties,  may  include  areas  such  as
monetary policy, fiscal policy, public finance, and macroeconomic stabilization and
external debt.

Article 33
Statistics cooperation

The  Parties  agree  that  the  main  objective  shall  be  to  develop  better  statistical
methods and programmes including gathering and dissemination of statistics, aimed
at  generating  indicators  with  enhanced  comparability  between  the  Parties,  thus
enabling the Parties to use each other’s statistics on trade in goods and services and,
more  generally,  any  field  covered  by  this  Agreement,  for  which  statistics  can  be
drawn up. 

This  cooperation  could  include,  among  others:  technical  exchanges  between
statistical  institutes  in Central  America  and  in  European  Union  Member  States  and
Eurostat; development of improved, and where relevant, consistent methods of data
collection, analysis and interpretation; and organization of seminars, working groups
or statistical training programmes.

19

Article 34
Cooperation on consumer protection

1.

(a)

The Parties agree that cooperation  in  this field may  involve, amongst others and to
the extent possible: 

improved mutual understanding of consumer legislation in order to avoid barriers to
trade while ensuring a high level of consumer protection;

(b)

promoting exchange of information on consumer protection systems.

1.

2.

1.

(a)

(b)

(c)

(d)

(e)

2.

3.

4.

Article 35
Cooperation on data protection

The  Parties  agree  to  cooperate  on  the  protection  in  the  processing  of  personal  data
and other data, with a view to promoting the highest international standards.

The  Parties  also  agree  to  co-operate  on  the  protection  of  personal  data  in  order  to
improve the level of protection and to work towards the free movement of personal
data between the Parties, with due regard to domestic legislation of the Parties.

Article 36
Scientific and technological cooperation

The Parties agree that cooperation in science and technology shall be carried out in
their mutual interest and in compliance with their policies, and shall aim to: 

exchange  scientific  and  technological  information  and  experience  at  regional  level,
especially on the implementation of policies and programmes;

promote human resources development;

foster relations between the Parties' scientific communities;

encourage  the  participation  of  the  business  sector  of  the  Parties  in  scientific  and
technological cooperation, in particular the promotion of innovation;

promote  innovation  and  technology  transfer  between  the  Parties,  including  e-
government and cleaner technologies.

The  Parties  agree  to  promote  and  strengthen  scientific,  research,  technological
development  and  innovation  processes,  involving  higher-education  institutions,
research  centers  and  productive  sectors,  especially  small  and  medium-sized
enterprises shall be encouraged on both sides.

Foster scientific and technological cooperation among universities, research institutes
and productive sectors of both regions, including scholarships, student and specialists
exchange programmes.

The  Parties  agree  to  strengthen  the  links  of  cooperation  between  scientific,
technological and innovation entities for the promotion, dissemination and transfer of
technology. 

20

Article 37
Cooperation on education and training

The Parties agree that cooperation in this field shall aim to determine how to improve
education  and  vocational  training.  To  this  end,  access  by  young  people,  women,
indigenous  peoples  and  other  Central  American  ethnic  groups,  as  well  as  senior
citizens  to  education,  including  technical  courses,  higher  education  and  vocational
training,  shall  receive  special  attention,  as  shall  achieving  the  Millennium
Development Goals in this context.

The  Parties  agree  to  co-operate  more  closely  on  education  and  vocational  training
and  promote  cooperation  between  universities  and  between  businesses  in  order  to
develop the level of expertise of senior staff.

The  Parties  also  agree  to  pay  special  attention  to  decentralized  operations  and
programmes  (ALFA,  ALBAN,  URB-AL,  etc.),  forging  permanent  links  between
specialized bodies in both Parties, which will encourage the pooling and exchange of
experience  and  technical  resources.  In  this  context,  co–operation  may  also  support
actions and programmes of education and training to address the specific needs of the
Central American countries.

The  Parties  will  promote  education  of  the  indigenous  peoples,  also  in  their  own
languages.

Article 38
Environmental and biodiversity cooperation

The  Parties  agree  that  cooperation  in  this  field  shall  promote  the  protection  of  the
environment  in  pursuit  of  sustainable  development.  In  this  connection,  the
relationship between poverty and the  environment and the  environmental  impact of
economic  activities  are  considered  important.  Cooperation  should  also  promote
effective  participation  in  international  environmental  agreements  in  areas  such  as
climate change, biodiversity, desertification and chemicals management. 

Cooperation may focus among others on:

preventing  degradation  of  the  environment;  for  that  purpose,  cooperation  should
include  the  issue  of  the  transfer  of  environmentally  sustainable  and/or  clean
technologies;

promoting  the  conservation  and  sustainable  management  of  natural  resources
(including biodiversity and genetic resources);

encouraging national and regional monitoring of biodiversity;

exchanging information and experience on environmental legislation and on common
environmental problems occurring in both sides; 

promoting harmonization of environmental legislation in Central America;

strengthening environmental management in all sectors at all levels of government;

1.

2.

3.

4.

1.

2.

(a)

(b)

(c)

(d)

(e)

(f)

21

(g)

promoting  environmental  education,  creation  of  capacity  and  strengthening  of
citizen’s participation; 

(h)

encouraging joint regional research programmes.

Article 39
Cooperation in the field of natural disasters

The  Parties  agree  that  cooperation  in  this  field  shall  aim  to  reduce  the  vulnerability  of  the
Central  American  region  to  natural  disasters  through  strengthening  regional  research,
planning, monitoring prevention, response and rehabilitation capacities, harmonizing the legal
framework and improving institutional co-ordination and government support. 

1.

2.

3.

4.

(a)

(b)

(c)

(d)

(e)

(f)

(g)

1.

Article 40
Cultural cooperation

The Parties agree that cooperation in this sphere, cultural ties and contacts between
cultural agents in both regions shall be expanded.

The  objective  shall  be  to  promote  cultural  cooperation  between  the  Parties,  taking
into account and favoring synergies with bilateral schemes of the Member States of
the European Union.

Cooperation  shall  take  place  in  accordance  with  the  relevant  national  copyright
provisions and international agreements.

This  cooperation  may  cover  all  cultural  fields,  including,  among  others,  the
following areas:

translation of literary works;

conservation, restoration, recovery and revitalization of cultural heritage;

cultural events and related activities, as well as exchanges of artists and professionals
in the cultural area; 

promotion of cultural diversity, particularly that of the indigenous peoples and other
Central American ethnic groups;

youth exchanges; 

combat and prevention of illicit traffic of cultural patrimony;

promotion of handicraft and cultural industries. 

Article 41
Cooperation in the field of health

The  Parties  agree  to  co-operate  in  the  health  sector  with  the  aim  of  supporting
sectorial reforms that make health service delivery pro-poor and equitable as well as
in  promoting  fair  financing  mechanisms  that  improve  access  to  health  care  and
nutritional security for the poor.

22

2.

1.

2.

3.

4.

1.

2.

(a)

(b)

(c)

(d)

The Parties agree that primary prevention also requires involving other sectors such
as  education  and  water  and  sanitation.  In  this  regard,  the  Parties  aim  to  strengthen
and  develop  partnerships  beyond  the  health  sector  to  achieve  the  Millennium
Development Goals, such as the fight against AIDS, malaria, tuberculosis and other
epidemics.  Partnerships  with  civil  society,  NGOs  and  the  private  sector  are  also
needed to address sexual health and rights in a gender sensitive approach and to work
with  young  people  to  prevent  sexually  transmitted  diseases  and  unwanted
pregnancies,  provided  that  these  objectives  do  not  contravene  the  legal  framework
and cultural sensitivity of the countries. 

Article 42
Social cooperation

The Parties agree to co-operate in fostering the participation of the social partners in
a  dialogue  on  living  and  working  conditions,  social  protection  and  integration  into
society. Particular account shall be taken of the need to avoid  discrimination in the
treatment  of  nationals  of  either  Party  residing  legally  in  the  territories  of  the  other
Party.

The Parties acknowledge the importance of social development, which must go hand
in  hand  with  economic  development  and  agree  to  give  priority  to  employment,
housing  and  human  settlements  in  accordance  with  their  respective  policies  and
constitutional provisions, as well as the promotion of the fundamental principles and
rights at work identified by the International Labor Organization’s conventions, the
so-called Core Labor Standards. 

The Parties may co-operate in any area of mutual interest in the above fields. 

Where  appropriate,  and  in  accordance  with  their  respective  procedures,  the  Parties
may conduct this dialogue in co-ordination with the European Economic and Social
Committee and its Central American counterpart, respectively.

Article 43
Participation of civil society in cooperation

The  Parties  recognize  the  role  and  potential  contribution  of  civil  society  in  the
cooperation process and agree to promote effective dialogue with civil society.

Subject to the legal and administrative provisions of each Party, civil society may:

be  consulted  during  the  policy  making  process  at  country  level  according  to
democratic principles;

be  informed  of  and  participate  in  consultations  on  development  and  cooperation
strategies and sectorial policies, particularly in areas concerning them, including all
stages of the development process; 

receive financial resources, insofar as the internal rules of each Party so allow, and
capacity building support in critical areas;

participate  in  the  implementation  of  cooperation  programmes  in  the  areas  that
concern them.

23

Article 44
Cooperation in the field of gender

The Parties agree that cooperation in this field shall help to strengthen policies, programmes,
and  mechanisms  aimed  at  ensuring,  improving  and  expanding  the  equal  participation  and
opportunities for men and women in all sectors of political, economic, social and cultural life,
including where necessary, through the adoption of positive measures in support of women. It
shall also help to facilitate the access of women to all the resources needed to fully exercise
their fundamental rights. 

Article 45
Cooperation on indigenous peoples and other Central American ethnic groups

1.

2.

1.

2.

(a)

(b)

(c)

(d)

(e)

(f)

The  Parties  agree  that  cooperation  in  this  field  shall  contribute  to  promote  the
establishment  of  organizations  for  indigenous  peoples  and  other  Central  American
ethnic groups as well as strengthening the existing ones, in the context of promoting
the  goals  of  poverty  eradication,  sustainable  management  of  natural  resources,
respect for human rights, democracy and cultural diversity.

In  addition  to  taking  systematic  account  of  the  situation  of  indigenous  peoples  and
other Central American  ethnic  groups at  all  levels  of  development  cooperation,  the
Parties  shall  integrate  their  particular  situation  in  the  development  of  policies  and
strengthen the capacity of their organizations in order to increase the positive effects
of  development  cooperation  on  these  groups,  in  accordance  with  national  and
international obligations of the Parties.

Article 46
Cooperation on uprooted peoples and demobilized combatants

The  Parties  agree  that  cooperation  in  support  of  uprooted  peoples  and  demobilized
combatants  shall  help  to  meet  their  essential  requirements  from  the  time
humanitarian  aid  ceases  to  the  adoption  of  a  longer-term  solution  to  resolve  their
status. 

This cooperation may include, among others, the following activities:

self-sufficiency and reintegration into the socio-economic fabric of uprooted peoples
and demobilized combatants;

aid  to  local  host  communities  and  resettlement  areas  to  foster  acceptance  and
integration of uprooted peoples and demobilized combatants;

helping those people to voluntarily return to and settle in their countries of origin or
third countries, if conditions permit;

operations  to help  people recover their belongings  or  property  rights  as  well  as  aid
for the legal settlement of human rights violations against the people in question;

strengthening the institutional capacity of countries faced with these issues;

support for the reinsertion into political, social and productive life, including, where
applicable, as part of a reconciliation process.

24

1.

2.

(a)

(b)

(c)

(d)

(e)

(f)

(g)

1.

2.

Article 47
Cooperation in combating illicit drugs and related crime

On the basis of the principle of co-responsibility, the Parties agree that cooperation in
this field shall aim to co-ordinate and increase joint efforts to prevent and reduce the
production,  trafficking  and  consumption  of  illicit  drugs.  The  Parties  also  agree  to
endeavor  to  combat  crime  relating  to  this  traffic,  among  others,  through  the
intermediary  of  international  organizations  and  bodies.  Without  prejudice  to  other
cooperation  mechanisms,  the  Parties  agree  that  the  Co-ordination  and  Cooperation
Mechanism  on  Drugs  between  the  European  Union  and  Latin  America  and  the
Caribbean shall also be used for this purpose.

The Parties shall co-operate in this area to implement in particular: 

programmes to prevent drug abuse, especially in vulnerable and high risk groups; 

projects  to  train,  educate,  treat  and  rehabilitate  drug  addicts  and  their  reintegration
into society; 

projects  favoring  harmonization  of  legislation  and  action  in  this  field  in  Central
America; 

joint research programmes; 

measures  and  cooperation  activities  aimed  at  encouraging  alternative  development,
in particular, the promotion of legal crops of small producers; 

measures  to  control  trade  in  precursor  and  essential  products  equivalent  to  those
adopted by the European Community and the competent international bodies; 

measures  to  reduce  illicit  drug  supply,  including  training  in  administrative  control
systems to avoid the deviation of chemical precursors, and control of related crimes. 

Article 48
Cooperation in combating money laundering and related crime

The  Parties  agree  to  co-operate  in  preventing  the  use  of  their  financial  systems  for
laundering proceeds arising from criminal activities in general and drug trafficking in
particular.

This  cooperation  shall  include  administrative  and  technical  assistance  aimed  at  the
development  and  implementation  of  regulations  and  the  efficient  functioning  of
suitable standards and mechanisms. In particular, cooperation shall allow exchanges
of relevant information and the adoption of appropriate standards to combat money
laundering  comparable  to  those  adopted  by  the  European  Community  and  the
international  bodies  active  in  this  area,  such  as  the  Financial  Action  Task  Force
(FATF), and the United Nations. Cooperation at regional level shall be encouraged.

Article 49
Cooperation on migration

1.

The Parties reaffirm the importance of joint management of migration flows between
their territories. With a view to strengthening cooperation, the Parties shall establish

25

2.

a)

b)

c)

d)

e)

f)

g)

3.

a comprehensive dialogue on all migration-related issues, including illegal migration,
smuggling and trafficking  of  human  beings,  and  refugee  flows. Migration concerns
should be included in the national strategies for economic and social development of
the countries of origin, transit and destination of migrants.

Cooperation  shall  acknowledge  that  migration  is  a  phenomenon  and  that  different
perspectives  should  be  analyzed  and  discussed  in  order  to  address  this  fact  in
accordance  with  relevant  applicable 
international,  Community,  and  national
legislation. It will, in particular, focus on:

the root causes of migration;

the development and implementation of national legislation and practices as regards
international  protection,  with  a  view  to  satisfying  the  provisions  of  the  Geneva
Convention of 1951 on the status of refugees, and of the Protocol of 1967, and other
relevant regional and international instruments to ensure the respect of the principle
of “non-refoulement”;

the admission  rules,  as  well as rights  and  status  of  persons  admitted,  fair  treatment
and integration policies for all legally residing non-nationals, education and training
and measures against racism and xenophobia and all applicable provisions regarding
human rights of migrants;

the establishment of an effective and preventive policy against illegal immigration. It
shall also focus on smuggling of migrants and trafficking of human beings including
the issue  of  ways  to  combat  networks and  criminal  organizations of  smugglers  and
traffickers and to protect the victims of such trafficking;

the return, under humane and dignified conditions, of persons residing illegally  and
their readmission, in accordance with paragraph 3;

the field of visas, on issues identified as being of mutual interest;

the field of border controls, on issues related to organization, training, best practices
and other operational measures on the ground and where relevant, equipment, while
being aware of the potential dual use of such equipment.

In the framework of the cooperation to prevent and control illegal immigration, the
Parties also agree to readmit their illegal migrants. To this end:

-

-

Each  Central  American  country  shall,  upon  request  and  without  further
formalities,  readmit  any  of  its  nationals  illegally  present  on  the  territory  of  a
Member State of the European Union, provide their nationals with appropriate
identity  documents  and  extend  to  them  the  administrative  facilities  necessary
for such purposes;

Each  Member  State  of  the  European  Union  shall,  upon  request  and  without
further formalities, readmit any of its nationals illegally present on the territory
of  a  Central  American  Country,  provide  their  nationals  with  appropriate
identity  documents  and  extend  to  them  the  administrative  facilities  necessary
for such purposes; 

26

The Parties agree to conclude, upon request and as soon as possible, an agreement regulating
specific  obligations  for  Member  States  of  the  European  Union  and  the  Central  American
countries  on  readmission.  This  agreement  will  also  address  the  issue  of  readmission  of
nationals of other countries and stateless persons.

For this purpose, the term “Parties” shall mean the Community, any of its Member States and
any Central American Country. 

1.

(a)

(b)

(c)

1.

2.

3.

Article 50
Cooperation in the field of counter-terrorism

The Parties reaffirm the importance of the fight against terrorism and, in accordance
with  international  conventions,  relevant  UN  resolutions  and  with  their  respective
legislation and regulations, agree to co-operate in the prevention and suppression of
acts of terrorism. They shall do so in particular:

in the framework of the full implementation of Resolution 1373 of the UN Security
Council  and  other  relevant  UN  resolutions, 
international  conventions  and
instruments;

by  exchange  of  information  on  terrorist  groups  and  their  support  networks  in
accordance with international and national law; and

by exchange of views on the means and methods used to counter terrorism, including
in  technical  fields  and  training  and  by  exchange  of  experience  in  terrorism
prevention.

TITLE IV

GENERAL AND FINAL PROVISIONS

Article 51
Means

With  the  aim  of  contributing  to  fulfilling  the  cooperation  objectives  set  out  in  this
Agreement,  the  Parties  commit  themselves  to  providing,  within  the  limits  of  their
capacities  and  through  their  own  channels,  the  appropriate  resources,  including
financial resources. In this context, the Parties shall approve, to the extent possible, a
pluriannual  programme  and  establish  priorities,  taking  into  consideration  the  needs
and level of development of the Central American countries.

The Parties shall take all appropriate measures to promote and facilitate the European
Investment  Bank’s  activities  in  Central  America  in  accordance  with  its  own
procedures  and  financing  criteria  and  with  their  laws  and  regulations,  and  without
prejudice to the powers of their competent authorities.

The  Central  American  Countries  shall  grant  facilities  and  guarantees  to  European
Community experts and exoneration of taxes on imports for cooperation activities in
accordance  with  the  Framework  Conventions  signed  between  the  European
Community and each Central American Country.

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Article 52
Institutional Framework

1.

2.

3.

4.

5.

The  Parties  agree  to  retain  the  Joint  Committee,  established  pursuant  to  the  1985
Central  America  Cooperation  Agreement  and  retained  by  the  1993  Framework
Cooperation Agreement. 

The  Joint  Committee  shall  be  responsible  for  the  general  implementation  of  the
agreement.  It  shall  also  discuss  any  question  affecting  economic  relations  between
the  Parties,  including  with  individual  Member  Countries  of  the  Central  American
Party.

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 sub-committees.

A  Joint  Consultative  Committee,  consisting  of  representatives  of  the  Consultative
Committee  of  the  Central  American  Integration  System  (CC-SICA)  and  the
European Economic and Social Committee (EESC), shall be established in order to
assist  the  Joint  Committee  to  promote  dialogue  with  economic  and  social
organizations of civil society. 

The Parties encourage the European Parliament and the Central American Parliament
(Parlacen) to establish an Inter-parliamentarian Committee, in the framework of this
Agreement, in accordance with their constitutional laws.

Article 53
Definition of the Parties

For the purposes of this Agreement, "the Parties" shall mean the Community, its Member States
or the Community and its Member States, within their respective areas of competence, as derived
from the Treaty establishing the European Community, on the one hand, and the Republics of
Costa  Rica,  El  Salvador,  Guatemala,  Honduras,  Nicaragua  and  Panama,  on  the  other,  in
accordance  with  their  respective  spheres  of  competence.  The  Agreement  shall  also  apply  to
measures taken by any state, regional or local authorities within the territories of the Parties.

Article 54
Entry into force

1.

2.

3.

This Agreement shall enter into force on the first day of the month following that in
which the Parties notify each other of completion of the procedures necessary for this
purpose.

Notifications shall be  sent to the Secretary General  of the  Council of the European
Union, who shall be the depository of this Agreement.

From the date of its entry into force in accordance with paragraph 1, this Agreement
shall replace the Framework Cooperation Agreement of 1993.

28

Article 55
Duration

1.

2.

1.

2.

This  Agreement  shall  be  valid  indefinitely.  In  this  context,  and  as  stated  in  Article
2(3) of this Agreement, the Parties recall the Madrid Declaration of 17 May 2002.

Either  Party  may  give  written  notice  to  the  other  of  its  intention  to  denounce  this
Agreement. Denunciation shall take  effect six months after notification to the other
Party.

Article 56
Fulfillment of the obligations

The Parties shall adopt any general or specific measures required for them to fulfill
their  obligations  under  this  Agreement  and  shall  ensure  that  they  comply  with  the
objectives laid down in this Agreement.

If one of the Parties considers that the other Party has failed to fulfill an obligation
under  this  Agreement  it  may  take  appropriate  measures.  Before  doing  so,  it  must
supply the Joint Committee within 30 days with all the relevant information required
for  a  thorough  examination  of  the  situation  with  a  view  to  seeking  a  solution
acceptable to the Parties.

In this selection of measures, priority must be given to those which least disturb the
functioning of this Agreement. These measures shall be notified immediately to the
Joint  Committee  and  shall  be  the  subject  of  consultations  in  the  Committee  if  the
other Party so requests.

By way of derogation from paragraph 2, any Party may immediately take appropriate

3.
measures in accordance with international law in case of:

(a)

(b)

denunciation of this Agreement not sanctioned  by  the  general rules of international
law;

violation by the other Party of the essential elements of this Agreement referred to in
Article 1, paragraph 1.

The other Party may ask that an urgent meeting be called to bring the Parties together within
15  days  for  a  thorough  examination  of  the  situation  with  a  view  to  seeking  a  solution
acceptable to the Parties.

Article 57
Future developments

1.

2.

The Parties may mutually agree to extend this Agreement with the aim of broadening
and  supplementing  its  scope  in  accordance  with  their  respective  legislation,  by
concluding agreements on specific sectors or activities in the light of the experience
gained during its implementation.

No opportunities for cooperation shall be ruled out in advance. The Parties may use
the Joint Committee to explore practical possibilities for cooperation in their mutual
interest.

29

3.

As regards the implementation of this Agreement, either Party may make suggestions
designed  to  expand  cooperation  in  all  areas,  taking  into  account  the  experience
acquired during the implementation thereof. 

Article 58
Data protection

For  the  purposes  of  the  present  Agreement,  the  Parties  agree  to  accord  a  high  level  of
protection  to  the  processing  of  personal  and  other  data,  compatible  with  the  highest
international standards.

Article 59
Territorial application

This  Agreement  shall  apply,  on  the  one  hand,  to  the  territories  in  which  the  Treaty
establishing the European Community is applied and under the conditions laid down  in  that
Treaty, and, on the other hand, to the territories of the Republics of Costa Rica, El Salvador,
Guatemala, Honduras, Nicaragua and Panama.

Article 60
Authentic texts

This  Agreement  is  drawn  up  in  duplicate  in  the  Danish,  Dutch,  English,  Finnish,  French,
German, Greek, Italian, Portuguese, Spanish and Swedish languages, each of these texts being
equally authentic. 

30

ANNEX

EU UNILATERAL DECLARATIONS

==================================================================

Declaration of the Commission and the Council of the European Union on the clause

1.
concerning the return and readmission of illegal migrants (Article 49)

Article 49 shall be without prejudice to the internal division of powers between the European
Community and its Member States for the conclusion of readmission agreements.

==================================================================

Declaration of the Commission and the Council of the European Union on the clause

2.
concerning the definition of the Parties (Article 53)

The provisions of this Agreement that fall within the scope of Part III, Title IV of the Treaty
establishing  the  European  Community  bind  the  United  Kingdom  and  Ireland  as  separate
Contracting Parties, and not as part of the European Community, until the United Kingdom or
Ireland (as the case may be) notifies the Central American Party that it has become bound as
part  of  the  European  Community  in  accordance  with  the  Protocol  on  the  position  of  the
United  Kingdom  and  Ireland  annexed  to  the  Treaty  on  European  Union  and  the  Treaty
establishing the European Community. The same applies to Denmark, in accordance with the
Protocol annexed to those Treaties on the position of Denmark.

===================================================================

31