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# 52012PC0454

**Proposal for a COUNCIL DECISION on the conclusion of the Political Dialogue and Cooperation Agreement with the Republics of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama /\* COM/2012/0454 final - 2012/0219 (NLE) \*/**

  

EXPLANATORY MEMORANDUM

The
EU-Central America Political Dialogue and Cooperation Agreement (PDCA) was
signed on 15 December 2003 in Rome. Due to the mixed nature of this agreement,
Member States had to ratify the agreement. This phase was concluded in December
2011 with the deposit of the last two outstanding ratifications.

According to the provisions of the
agreement, it will enter into force one month after the deposit of this
instrument of approval.

2012/0219 (NLE)

Proposal for a

COUNCIL DECISION

on the conclusion of the Political
Dialogue and Cooperation Agreement with the Republics of Costa Rica, El
Salvador, Guatemala, Honduras, Nicaragua and Panama

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 212(3), in conjunction with Article 218(6)(a) thereof,

Having regard to the proposal from the
European Commission,

Having regard to the consent of the
European Parliament,

Whereas:

(1)       In accordance with Council
Decision 14855/03 of 8 December 2003[1],
the the Political Dialogue and Cooperation Agreement with the Republics of Costa Rica, El Salvador, Guatemala, Honduras,
Nicaragua and Panama was signed on 15 December
2003, subject to its conclusion at a later date.

(2)       According to its Article
54(1) the Political Dialogue and Cooperation 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.

(3)       All other parties to the
Agreement, including all the Member States of the Union, have now deposited
their instrument of ratification.

(4)       The agreement should be
approved on behalf of the European Union,

HAS ADOPTED THIS DECISION:

Article 1

The Political Dialogue
and Cooperation Agreement with the Republics of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and
Panama is hereby approved on
behalf of the Union.

The text of the Agreement is attached to
this Decision.

Article 2

The President of the Council shall designate
the person empowered to proceed, on behalf of the European Union, to the
notification of the Agreement, in order to express the consent of the European
Union to be bound by the Agreement.

Article 3

This Decision shall enter into force on the
[…] day following that of its publication in the Official Journal of the
European Union.

Done at Brussels,

                                                                       For
the Council

                                                                       The
President

ANNEX

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

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,

of the other part

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;

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

1.           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.

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

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

Article 2
Objectives and
Scope

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

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

3.           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.

4.           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.

5.           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.

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

TITLE II

POLITICAL
DIALOGUE

Article 3
Objectives

1.           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).

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

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

(c)          at senior official level;

(d)          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.

TITLE III

COOPERATION

Article
6
Objectives

1.           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:

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

(b)          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;

(c)          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.

2.           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.

3.           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;

(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.

Article
9
Cooperation in the field of conflict prevention

1.           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.

2.           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.

3.           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

1.           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.

2.           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.

Article 11
Cooperation in the field of regional integration

1.           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.

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

3.           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.

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

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

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

(c)          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

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

2.           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.

3.           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

1.           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
increasing importance of services for 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.

2.           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, open[2]
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 information in
order to foster transparency and legal certainty for enterprises operating in the Central American
and European Union markets.

Article
18
Customs cooperation

1.           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.

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

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

(b)          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;

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

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

3.           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

1.           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.

2.           As agreed by the Parties,
cooperation shall promote:

(a)          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. .

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

3.           In practice, cooperation
shall:

(a)          provide organizational and
technical support to foster the establishment of regional networks and bodies,
and increase co-ordination of policies to promote a common approach to the use
of international and regional standards with regard to technical regulations
and conformity assessment procedures;

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

(c)          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

1.           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.

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

(b)          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.           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.

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

(a)          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;

(b)          diversification and restructuring
of agricultural sectors;

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

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

(e)          scientific and technological
experiments;

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

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

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

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

(d)          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;

(e)          developing measures to promote
environmental integrity and corporate environmental responsibility in this
sector.

Article
25
Energy cooperation

1.           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.

2.           Cooperation may include,
among others, the following:

(a)          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;

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

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

(d)          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.           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.

2.         Cooperation may include the
following:

(a)          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;

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

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

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

Article
27
Cooperation on information society, information
technology and telecommunications

1.           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.

2.           Cooperation in this area
shall aim to promote:

(a)          dialogue on all aspects of
information society;

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

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

(d)          dissemination of new information
and communications technologies;

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

(f)           interconnection and
interoperability of telematic networks and services;

(g)          exchanges and training of
specialists;

(h)          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.

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.

Article 31
Cooperation in the field of investment promotion

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

2.           Cooperation may include:

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

(b)          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 ;

(c)          promoting simplified
administrative procedures;

(d)          developing joint venture
mechanisms.

Article
32
Macroeconomic dialogue

1.           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.

2.           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

1.           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.

2.           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.

Article
34
Cooperation on consumer protection

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

(a)          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.

Article
35
Cooperation on data protection

1.           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.

2.           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

1.           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:

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

(b)          promote human resources
development;

(c)          foster relations between the
Parties' scientific communities;

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

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

2.           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.

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

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

Article
37
Cooperation on education and training

1.           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.

2.           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.

3.           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.

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

Article
38
Environmental and biodiversity cooperation

1.           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.

2.           Cooperation may focus
among others on:

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

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

(c)          encouraging national and regional
monitoring of biodiversity;

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

(e)          promoting harmonization of
environmental legislation in Central America;

(f)           strengthening environmental
management in all sectors at all levels of government;

(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.

Article
40
Cultural cooperation

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

2.           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.

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

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

(a)          translation of literary works;

(b)          conservation, restoration,
recovery and revitalization of cultural heritage;

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

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

(e)          youth exchanges;

(f)           combat and prevention of illicit
traffic of cultural patrimony;

(g)          promotion of handicraft and
cultural industries.

Article
41
Cooperation in the field of health

1.           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.

2.           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

1.           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.

2.           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.

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

4.           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

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

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

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

(b)          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;

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

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

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.           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.

2.           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

1.           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.

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

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

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

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

(d)          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;

(e)          strengthening the institutional
capacity of countries faced with these issues;

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

Article
47
Cooperation in combating illicit drugs and related
crime

1.           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.

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

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

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

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

(d)          joint research programmes;

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

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

(g)          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

1.           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.

2.           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 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.

2.           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:

a)           the root causes of migration;

b)           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”;

c)           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;

d)           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;

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

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

g)           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.

3.           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;

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.

Article
50
Cooperation in the field of counter-terrorism

1.           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:

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

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

(c)          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

1.           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.

2.           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.

3.           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.

Article 52
Institutional Framework

1.           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.

2.           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.

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 sub-committees.

4.           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.

5.           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.           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.

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

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

Article 55
Duration

1.           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.

2.           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

1.           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.

2.           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.

3.         By way of derogation from
paragraph 2, any Party may immediately take appropriate measures in accordance
with international law in case of:

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

(b)          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.           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.

2.           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.

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.

ANNEX

EU
UNILATERAL DECLARATIONS

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

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

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

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

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

[1]               OJ L , , p. .

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

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