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Federal Chancellor Schüssel: EU and Central America strengthening economic relations

"Central America is an excellent example of successful regional cooperation", Federal Chancellor Wolfgang Schüssel, President in office of the European Council, said today at the end of the EU-Central America summit held in the framework of the IV EU-LAC Summit.

"Central America is a region with 40 million inhabitants, with which Europe has long had very good relations. It is a region with great prospects for the future and enormous economic potential. A customs union is in preparation, plans are being considered for a common currency. Central America shows it is possible to work together for the good of all the partners involved", Schüssel said.

Although the volume of trade amounts to approximately 8 billion euros, there is room for developing economic relations. "We have agreed at this summit to motivate small and medium-sized businesses to step up their engagement in these regions. A major success is our consensus on starting the process of negotiating an association agreement between the EU and Central America. That is a good example for the other countries in this region", Schüssel concluded.

The Vice-President and Foreign Minister of Panama, Samuel Lewis Navarro, described the start of negotiations on an association agreement as a "historic event" that had significance far beyond the economic sector. "This is a strategic agreement which will be very positive for the people of our countries. Central America has already made important adjustments. We will need some time for the negotiations, but we are working on improving our relations", Navarro said.

The President of the European Commission, José Manuel Barroso, recalled that Europe and Central America had in common a long process of democratisation. This would be further developed through the trade agreement: "At our meeting, we were already able to agree the next practical steps for the negotiations. But the planned association agreement is more than a contract about a free trade area. It also contains agreements on policies and development cooperation. "

Barroso stressed in conclusion that Europe did not want to force a model on anybody, either its own or any other. Nevertheless, the European Union could serve as an example for other countries of Latin America and the Caribbean.