Explanatory Memorandum to COM(2020)52 - Conclusion of a Protocol to the association agreement with Central America to take account of the accession of Croatia to the EU

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The Agreement establishing an Association between the European Union and its Member States, on the one hand, and Central America on the other (the “Association Agreement”) was signed on 29 June 2012 and it has not yet fully entered into force, pending the ratifications of some Member States.

The trade pillar of the Association Agreement has been provisionally applied since 1 August 2013 with Honduras, Nicaragua and Panama, since 1 October 2013 with Costa Rica and El Salvador, and since 1 December 2013 with Guatemala.

Under Article 6 i of the Act of Accession of the Republic of Croatia, Croatia undertook to accede to the existing agreements concluded or signed by the Member States and the European Union with third countries. Unless otherwise provided for in specific agreements, Croatia accedes to these existing agreements by means of protocols that the Council, acting unanimously on behalf of the Member States, concludes with the third countries concerned.

On 14 September 2012 1 , the Council authorised the Commission to open negotiations with the third countries concerned with a view to concluding the relevant protocols. The negotiations with Central America started in May 2014 and were successfully concluded in June 2018. In particular, in respect of bananas imported from Central America, the Parties agreed to amend the trigger import volumes in the stabilisation clause above which the EU may suspend preferential tariff treatment. The preferential customs duty has remained unchanged. The Commission considers the outcome of the negotiations satisfactory.

The text of the Protocol to the Association Agreement (“Protocol”) taking account of the accession of Croatia to the European Union was finalized by both sides on 27 June 2019 within the framework of the Association Committee meeting.

The Commission recommends that the Council adopt the attached Council Decision on the conclusion of a Protocol on behalf of the European Union and its Member States. The proposed Protocol incorporates the Republic of Croatia as a party to the Association Agreement with Central America. The text of the Association Agreement and the Protocol in the Croatian language will become authentic under the same conditions as other language versions of the Agreement.