RELATIONS WITH THE EU
The European Union and Nicaragua
Relations between the European Union (EU) and Nicaragua, as with other Central American countries, have evolved significantly since they started in the mid-1980s.
Political Relations
The EU has committed itself to Nicaragua, by working to consolidate a sustainable development model based on peace, democracy, consolidation of the rule of law and deeper regional integration at the political level.
Initially, the EU played a key role in strengthening peace processes in Central America, by promoting the inclusive spaces required to reach an early settlement of conflicts in the region at an international level. The ‘San José Dialogue’, provided the structure for a prominent political dimension in relations between the Isthmus and Europe, which remains in place today.
The next moment in the progress of political relations began in the 1990s and was characterized by the increase of development cooperation. Over the last decades, the EU cooperation towards the region and Nicaragua has evolved in the search for more effective tools for sustainable development.
Relations between the EU and Nicaragua have increasingly been developed within a Central American regional integration approach. In fact, Nicaragua is part of important regional agreements between EU&CA: the Central America Cooperation Framework Agreement (1985), the Second Cooperation Framework Agreement (1993), the Political Dialogue and Cooperation Agreement (2003) and the Association Agreement between EU and Central America (2012).
Trade
The EU has become one of Central America's main trading partners and is its third most important export market, after the United States and the Central American Common Market.
Although this arrangement has been increasingly successful, the maturity achieved in relations between CA and the EU has made it necessary to move to another type of link: an Association Agreement (AA) which, in trade terms, means the creation of a free trade area to open up new and better export possibilities for Central American products and to provide more favourable trade and investment conditions for European companies.
In trade matters, the AA means abandoning the traditional approach of cooperation and the unilateral temporary granting of benefits in favour of a lasting link between partners committed to free trade and the sustainable development of both regions.
The trade dimension of the AA came into force for Nicaragua on 1 August 2013. Since then the AA has been the legal framework of reference for trade between Nicaragua and the European Union.
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Economic Relations
The economic relations with Nicaragua are based on the EU-CA Association Agreement.
This Agreement, which covers Trade Relations, Political Dialogue and Cooperation, involves a change in the nature of the relationship between the two regions, from a reflection of traditional ‘donor-recipient’ approach to the expression of a lasting link between ‘partners’ with shared principles and values.
Nicaragua's economic relations with the EU seek to provide robust support for trade ties and promote joint action at an international level.
EU Cooperation to Nicaragua
The Country Strategy Paper for Nicaragua aims to reduce poverty through the promotion of a more productive and inclusive development model, focused on taking advantage of the demographic bonus that the country is experiencing.
Here are the three priority areas:
Support to the productive sector
This priority aims to promote rural development, increasing the sustainable production, competitiveness and resilience to climate change of micro, small and medium-sized enterprises (MSMEs) in the agricultural and agro-industrial sectors.
Effective education for employment
This priority aims to improve the employability of the workforce, particularly of high school graduates. Improving the relevance of education, equitable access and quality of secondary education, as well as technical/vocational education in general, is contemplated.
Adaptation to climate change
The objective for this priority is to increase the adaptation of the population to climate change in particular through an integrated management of water resources and by relieving pressure on forests.
EU Cooperation to Central America
The EU, in line with the priorities identified by the SICA Member States, developed the cooperation programme 2014-2020 for Central America based on 3 key sectors in which the EU provides the greatest added value:
Support for regional economic integration
The objective is to contribute to the inclusive and sustainable development of Central America, through improved regional economic integration. It also seeks to maximize the benefits of economic components from Association Agreement for the Central American population.
Regional security and the rule of law
Within the framework of the Central American Security Strategy (ESCA), this priority aims to reduce the number of violent crimes and impunity in the region, as well as respect for human rights and the promotion of a culture of peace.
Climate change and comprehensive risk management
The objective is to contribute to addressing climate change and environmental issues, supporting the adoption and application of adaptation, mitigation and disaster risk reduction measures, promoting investments that involve a low level of emissions.