The European Free Trade Association (EFTA), comprising of Liechtenstein, Norway, Iceland and Switzerland, has announced that significant headway was made in negotiations with Costa Rica, Honduras and Panama towards a broad-based free trade agreement during a second round of talks.

EFTA reported that progress was made in all areas to be covered by the agreement, including trade tariff concessions and legal guarantees of improved market conditions and opportunities for undertaking trade and investment activities.

The negotiation process between EFTA and the Central American nations was launched in November 2011, with a first round of talks held in February 2012. Due to the good overall progress achieved so far, delegations agreed to quickly push ahead with further rounds of negotiations to achieve a finalized agreement.

Bilateral trade between EFTA and the Central American countries has increased substantially in past years, from USD646m in 2009 to almost USD1bn in 2011. EFTA's top exports to the Central American region include pharmaceutical products, machinery and mechanical appliances and clocks and watches. EFTA imports mainly fruits and nuts, precious stones, spices, and coffee and tea from the Central American countries.

Through proactive negotiation, EFTA has established one of the most extensive networks of preferential trade agreements worldwide. In addition to an agreement with the European Union, the bloc's most important economic partner, EFTA has free trade pacts with 31 countries, and is presently in negotiations for free trade arrangements with a further five.

June 12, 2012

Source: Tax News

• Viet Nam’s trade surplus with EU expands amid economic headwinds
• Steel, cement and electricity firms to trade emissions quotas under Viet Nam's carbon market
• VCCI proposes 11 recommendations to quantify support for SMEs
• Trump’s copper tariff decision hangs over global metal market
• Global capital sees potential in Europe but calls for lighter regulation