Business Relationships between Central America and the European Union
Several days ago I was consulted by one of my students, about the difference that exists between the currently "In negotiations" agreement between the EU and Guatemala and our previously agreed upon treaties with North America, because its been assured that this negotiation, unlike other free trade agreements, is not of commercial nature.
The Association agreement between the EU and Central America, has the objective of augmenting political dialogue between both economic regions, intensifying and bettering cooperation in a great variety of areas and finally to increment and facilitate commerce and investments by-regionally. This gives us a clear vision that the agreement is not only commercial, but also incorporates other subjects that are of great importance for the EU, such as political behavior and economic cooperation.
This agreement is very different compared to the all mighty DR-CAFTA or the North Triangle - Mexico, or the one we have worked out with Taiwan, because it subscribes more conditions in matters of politics and focuses in economic cooperation, this might explain why the process is more complex and confusing to many.
Commercially, the EU represents 6% of Guatemala´s international business, mainly relevant to our traditional exports like banana, sugar or coffee, and also some of our non traditional exports, such as ornamental plants and other manufactured products. This is an important factor in making this trade agreement negotiation very different from the one we had with the U.S. because there is a relatively less commercial pressure, the political axis of the negotiations takes center stage. Issues become debated over their essence instead of being pressured into the country because of economic interests. And Guatemala atleast now, is not ready to let go of certain policies, like the death penalty.
What is the future of the Negotiations?. Until now, this is uncertain. Negotiations that the Guatemalan Ministry of Economics (With no transparent reason) have kept secret, have only resulted in delays and prolongation of the negotiations, against the European need to satisfactorily conclude negotiations as soon as possible.
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The Association agreement between the EU and Central America, has the objective of augmenting political dialogue between both economic regions, intensifying and bettering cooperation in a great variety of areas and finally to increment and facilitate commerce and investments by-regionally. This gives us a clear vision that the agreement is not only commercial, but also incorporates other subjects that are of great importance for the EU, such as political behavior and economic cooperation.
This agreement is very different compared to the all mighty DR-CAFTA or the North Triangle - Mexico, or the one we have worked out with Taiwan, because it subscribes more conditions in matters of politics and focuses in economic cooperation, this might explain why the process is more complex and confusing to many.
Commercially, the EU represents 6% of Guatemala´s international business, mainly relevant to our traditional exports like banana, sugar or coffee, and also some of our non traditional exports, such as ornamental plants and other manufactured products. This is an important factor in making this trade agreement negotiation very different from the one we had with the U.S. because there is a relatively less commercial pressure, the political axis of the negotiations takes center stage. Issues become debated over their essence instead of being pressured into the country because of economic interests. And Guatemala atleast now, is not ready to let go of certain policies, like the death penalty.
What is the future of the Negotiations?. Until now, this is uncertain. Negotiations that the Guatemalan Ministry of Economics (With no transparent reason) have kept secret, have only resulted in delays and prolongation of the negotiations, against the European need to satisfactorily conclude negotiations as soon as possible.
You may debate, comment or ask about this subject in Global Guatemala´s brand new forum. Be a friend and help us create open discussion of important issues. Join the Forums.
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