Central America - EU Association Agreement

The Free Trade Agreement between Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and the European Union entered  into force in 2013. It provides for full or partial border tariff elimination for most energy products including : 

• Electric motors, turbines and generators; 
• Mechanical equipment including pumps, appliances, and other advanced machinery; 
• Electric accumulators, transformers, capacitors, batteries; 
• Motor vehicles; 
• Mineral ore, slag and ash; 
• Mineral fuels, oils and other products; 
• Metals and their articles e.g. iron and steel; 
• Semiconductors devices and photovoltaic cells; 

The Agreement also includes rules of origin. In order to benefit from preferential tariff treatment, goods must:

• be wholly produced or obtained in one of the signatory countries 
• not incorporate non-originating materials valued above 10 per cent of the ex-works price of the final product. 

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