A trade deal between the European Commission and Honduras, Nicaragua, and Panama began on August 1. The EU is Central America’s second largest trading partner.
The trade agreement will open up markets and help to create a stable business and investment relationship for the EU and the three Central American countries. The trade agreement will also likely bring more stability to the region.
Under the terms of the agreement, goods, services, and investment will benefit from improved market access. The Central American countries’ main exports include agricultural and fisheries products, and also some industrial products. The EU’s main exports are pharmaceutical products, oil, automobiles and machinery.
The trade agreement also addresses dispute settlement, labor standards, environmental protection, and the safeguarding of human rights.