The European Union Central American Association Agreement (EU-CAAA) is a

free trade agreement A free-trade agreement (FTA) or treaty is an agreement according to international law to form a free-trade area between the cooperating states. There are two types of trade agreements: bilateral and multilateral. Bilateral trade agreements occur ...

between the

European Union The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...

(EU) and the

Central American Common Market The Central American Integration System ( es, Sistema de la Integración Centroamericana, or SICA) has been the economic and political organization of Central American states since 1 February 1993. On 13 December 1991, the ODECA countries (Spa ...

. The agreement was signed on 29 June 2012 in

Tegucigalpa Tegucigalpa (, , ), formally Tegucigalpa, Municipality of the Central District ( es, Tegucigalpa, Municipio del Distrito Central or ''Tegucigalpa, M.D.C.''), and colloquially referred to as ''Tegus'' or ''Teguz'', is the capital and largest city ...

. The

association agreement A European Union Association Agreement or simply Association Agreement (AA) is a treaty between the European Union (EU), its Member States and a non-EU country that creates a framework for co-operation between them. Areas frequently covered by su ...

will have to be formally ratified by the European Union and all of its member states (except Croatia), as well as Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama and is provisionally applied since 1 August 2013. Upon entry into force, it will create a

free trade area A free-trade area is the region encompassing a trade bloc whose member countries have signed a free trade agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers, import quotas and tariffs, and ...

between the EU and Central America.Central America
European Commission

References

{{Foreign relations of the European Union

Central America Central America ( es, América Central or ) is a subregion of the Americas. Its boundaries are defined as bordering the United States to the north, Colombia to the south, the Caribbean Sea to the east, and the Pacific Ocean to the west. ...

Politics of Central America Free trade agreements of the European Union Treaties concluded in 2010