Trade preferences currently in place must be the starting point in the negotiation of an Association Agreement between the European Union and Central America.

Recognition of the enormous differences that exist between the two regions must preside over the negotiations

The European Commission must accept that the General System of Preferences Plus (GSP+) should be the starting point for the negotiation of an Association Agreement between the EU and Central America, according to the European civil society networks and NGOs: CIFCA, APRODEV, CIDSE, Grupo Sur, and Oxfam International.

“The European Union is proposing that the starting point for the negotiation of the Agreement will be less than the preferences already extended to Central America in relation to the entry of Central American products into the EU market, and this is unacceptable. It is impossible to aspire to a just Association Agreement if the debate begins with a reduction in trade advantages that one of the partners currently enjoys”, says Eric van Mele, spokesperson for Oxfam International.

Central American governments must insist on the starting point of the negotiations being the trade preferences that the EU currently extends to the region and the aim should be to expand these preferences, according to European NGOs and networks in the run up to the Second Round of negotiations which commence in Brussels tomorrow.

“The Association Agreements include a Free Trade Agreement (FTA) and while these can lead to increased trade flows between the two regions, this does not necessarily or automatically mean greater levels of development for all, especially for the poorest sectors of Central America”, Susan Van der Meij, APRODEV spokesperson for Central America, point outs.

The European networks and NGOs have criticised the EU for having an aggressive position in the political and trade negotiations with Central America, insisting on the inclusion of issues that have been excluded from the Doha Round of the World Trade Organization, such as the so-called Singapore Issues, which include chapters on investment, public procurement and competition.

“We are not talking about two equal blocks. The differences between the two regions are enormous and the negotiations must recognise that both sides are not equal. If the lower competitive capacity of Central American countries is not taken into account, the development of the region and the future of millions of people will be in danger” highlights Martin Wolpol Bosien, spokesperson from CIFCA.

The European civil society networks insist that recognition of the enormous differences between Central America and the EU be translated into concrete offers on the part of the EU in the area of technology transfer and lowering tariffs on Central American products without demanding reciprocity, particularly in the area of agriculture. Furthermore, Brussels must be flexible in the negotiation process so that Central American countries can advance in their process of integration and the implementation of development models which respond to the region’s development needs.

Finally, Iosu Perales, coordinator of the Grupo Sur network of civil society organizations, highlights that “insisting that Central American countries provide the same treatment for European corporations as their own national companies does not make sense. European corporations must be subject to performance criteria and they must contribute to Central American development rather than impeding it”.

APRODEV, CIDSE, CIFCA, Grupo Sur, and Oxfam International.

Brussels, 22 February 2008