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Ambassador
Ross Denny signed the
agreement in Managua,
Nicaragua, together with trade
and economic ministers from
each of the six Central
American countries./ United
Kingdom Embassy courtesy
photo.
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U.K. and
Central America sign
continuity agreement
By the A.M. Costa Rica staff
This week the government of the
United Kingdom announced it has
signed the American Association
Agreement with Costa Rica, El
Salvador, Guatemala, Honduras,
Nicaragua and Panamá.
According to the U.K. Foreign
& Commonwealth Office
statement, Ambassador Ross Denny
signed the agreement in Managua,
Nicaragua, together with trade and
economic ministers from each of
the six Central American
countries.
“The agreement will ensure British
businesses and consumers benefit
from continued trade with Central
America after we leave the
European Union,” said the Foreign
& Commonwealth Office in its
statement. “It provides
tariff-free trade of industrial
products together with
liberalization of trade in
agricultural food production and
fisheries products.”
Consumers in the U.K. will
continue to benefit from lower
prices on goods imported from
Central American countries that
are parties to this agreement,
such as prawns from Honduras and
Costa Rican fruit, said the
British government. Consumers in
Central America will continue to
benefit from lower tariffs on
products such as drinks and cars
produced in the U.K., it added.
According to Foreign Office
authorities, the trading on these
preferential terms rather than on
World Trade Organization terms
will deliver significant savings
and help to support British jobs.
The trading relationship between
the U.K. and Central America was
worth £1 billion in British
exports and imports in 2018, the
office said reported its
statement.
The agreement provides a framework
for cooperation and development
through political dialogue,
increased economic ties and
work on issues like the
environment and human rights,
reaffirming Britain’s commitment
to a close relationship with
Central America, the announcement
said.
“This agreement is of real
importance as we prepare to leave
the European Union and strengthen
our ties with the rest of the
world. It will help provide the
certainty business need to be
thrive and help turbocharge our
economy into the future,” said
Jeremy Hunt foreign secretary. “
It has also been achieved thanks
to the hard work of U.K.
diplomats, and I thank them for
their work. We look forward to
building on our political and
economic ties, with exporters and
consumers having the certainty
they need to continue trading
freely and in confidence abroad.”
This agreement replicates the
existing EU-Central America
trading relationship to ensure
continuity in the trading
relationship between the U.K. and
Central America when the U.K.
ceases to be a member of the EU,
said the Foreign Office statement.
According to the Foreign Office,
the secured agreements – either
signed or agreed in principle -
that account for 64 percent of the
U.K.’s trade with all the
countries with which the U.K. is
seeking continuity, should Britain
leave the EU without a deal.
“Diageo warmly welcomes the news
of a Central America-U.K.
Association Agreement,” said
Wilson Del Socorro, global
director of government affairs for
Diageo PLC. “The free flow of
international trade is vital to
Diageo as it gives us the
opportunity to reach more
consumers and markets. Central
America is an important export
market for Diageo and for Scotch
whisky.”
The U.K.-Central America
Association Agreement will come
into effect when the current
agreement between Central America
and the EU ceases to apply. This
will take place either following
an implementation period if the
U.K. leaves the EU with a deal, or
on Oct. 31 if the U.K. leaves the
EU without one, the announcement
said.
The U.K. has signed or agreed in
principle to 13 trade continuity
agreements with 38 countries which
include some of the island
nation's biggest trading partners.
A regularly updated list of all
signed agreements is available on
the GOV.UK site*.
-------------------------------
What could be the agricultural
product made in Costa Rica more
bought by the British? We would
like to know your thoughts on this
story. Send your comments to news@amcostarica.com
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