Caribbean & Central America - August 2025

On 14 July the first ministerial meeting between the European Union and six Central American countries as part of the Association Agreement between the two regional blocs was held in Brussels.

Known as the European Union-Central America Association Council, the meeting involved high level officials from the European Union as well as from Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama, according to a statement from the EU. This was the first meeting of its kind after the Association Agreement came into force on 1 May 2024. “The meeting presented an opportunity to exchange views on global challenges that affect both regions, including the rapidly changing geopolitical landscape and on-going wars, conflicts and crises, as well as the state of our regional cooperation, investment and trade agendas,” reads the European Union statement.

Officials also discussed how to move forward with bi-regional dialogue, including an agreement on “the importance of Central American integration, based on the values of peace, democracy and inclusive economic development,” it added. Other points of discussion included an agreement to find common ground in the face of geopolitical challenges, and to work together on issues such as climate change and environmental degradation; the protection of the oceans and their governance; and security issues such as organised crime and trafficking in drugs, firearms, illicit commodities, and human beings.

The two sides agreed that the 2030 Agenda for Sustainable Development, adopted by all United Nations members states in 2015, would remain as a reference for their joint efforts, particularly the implementation of the Sustainable Development Goals (SDGs). Officials also underlined the need to further develop the Central American Regional Electricity Market (MER) to drive growth and regional integration, among other issues. The next meeting under the framework is scheduled to take place in Central America in 2027.

Central America-European Union trade

The European Union statement on the first meeting of the European Union-Central America Association Council highlights increased trade between the two regions, with the European Union becoming Central America’s third-largest trading partner as annual trade grew from €8.7bn (US$10bn) in 2012 to €22bn in 2023. Of particular note is the fact that the European Union is a key market for Central American agricultural exports, and these flows have shown themselves to be “very resilient to external shocks”, according to the European Union statement.