Yesterday, the UK government signed a trade and political continuity agreement with Central America. Trade between the UK and Central America was worth £1bn in 2018. The agreement ensures British businesses and consumers benefit from continued access to the region after we leave the EU. Ambassador Ross Denny signed the agreement in Managua, Nicaragua together with Trade and Economic Ministers from each of the six Central American countries.
The UK and Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama have signed the UK-Central America Association Agreement.
The Agreement will ensure British businesses and consumers benefit from continued trade with Central America after we leave the European Union. It provides tariff-free trade of industrial products together with liberalisation of trade in agricultural food production and fisheries products.
Consumers in the UK will continue to benefit from lower prices on goods imported from Central American countries party to this agreement, such as prawns from Honduras and Costa Rican fruit. Consumers in Central America will continue to benefit from lower tariffs on products such as drinks and cars produced in the UK.
Trading on these preferential terms rather than on World Trade Organization terms will deliver significant savings and help to support British jobs. It will also help further strengthen the trading relationship between the UK and Central America, which was worth £1 billion in British exports and imports in 2018.
The Agreement provides a framework for cooperation and development through political dialogue, increased economic ties and our work on important issues like the environment and human rights, reaffirming Britain’s commitment to a close relationship with Central America.