EU moves to open new chapter in its ties with San José

Date: 15/02/1996

By Elizabeth Wise

THE Cold War got Europe into Central America, but even now that it is over, EU governments agree on the need to maintain ties with the region.

Officials believe, however, that the relationship, which began with peace mediating and has since been based on humanitarian aid, must be redefined to encourage greater political maturity in the young democracies.

As it prepares for a second decade of cooperation with the governments of six Central American nations, the Union is asking its so-called San José partners to consolidate the rule of law and pursue more lucrative fiscal and economic policies.

Ministers of the 15 EU member states will underline the new approach when they meet their counterparts from Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama for the 12th meeting of the San José partners to be held in Florence on 21 March.

At that meeting, participants will sign a “solemn declaration” pledging “to continue the political and economic dialogue” so that the six countries may consolidate their hard-won peace.

In the early Eighties, when several of the region's countries were embroiled in war, European leaders such as Hans-Dietrich Genscher and Claude Cheysson feared a spillover of the East-West confrontation into what was then the European Community.

Disapproving of US policy in Nicaragua and El Salvador, and seeing an opportunity to test an emerging common European policy, they decided to offer their services as intermediaries. As a result, aid flowed increasingly into the region.

The San José dialogue began with a meeting of governments from both sides in the Costa Rican capital in 1984, and has been maintained with annual ministerial meetings ever since.

Early efforts devoted to peace-making and mopping up after civil wars by providing assistance for refugees and war victims must now give way to more sophisticated aid. Commission officials say that the time has come to “open a new chapter” in the EU's relationship with Central America.

“The story's not over in Guatemala, but it is the last of the Central American nations to emerge from war,” said one.

The EU is, in fact, concentrating on three new chapters in its cooperation with the San José group. The first is to consolidate democratic principles in the region's predominatly right-wing governments and to strengthen institutions such as the feeble judiciary in many of the countries in the group.

“They all need it,” said the official. “Even Costa Rica, long considered a model democracy, has some problems with checks and balances.”

Commission officials also want to teach countries like Guatemala, where income from taxes makes up only 7&percent; of GNP (compared to almost 50&percent; in some EU countries), how to improve tax collection and redistribute income.

Hoping to help the nations to help themselves, the EU gives them trading benefits under the Generalised System of Privileges (GSP) and, in addition, special concessions for their agricultural exports. Farm products make up 85&percent; of EU imports from Central America and the European Commission is proposing to retain those concessions, although its approach must first be approved by the EU governments.

A 1987 cooperation agreement with the San José nations was upgraded in 1993 with a human rights clause and a range of cooperation sectors.

It has not yet entered into force, however, because Guatemala and Costa Rica have failed to approve it. Guatemalan diplomats say they want to ratify the agreement, but have been side-tracked by a coup and three elections. They hope the month-old Congress will be able to accomplish the task soon. Financial aid is, however, not conditional on ratification of the agreement.

EU aid to the region has grown each year, reaching a record 175 million ecu in 1995, and Commission officials say the figure is likely to go on rising by some 3&percent; to 4&percent; per year.

With only 30 million people in Central America, the aid per capita (nearly 6 ecu per year) is among the highest given to EU partners, on a par with funding for the African, Caribbean and Pacific (ACP) nations linked to the EU through the Lomé Convention. It also makes the Union the biggest donor to the region.

But why should the Union continue giving aid to a region thousands of kilometers away and of relatively little interest to European business interests?

A Commission communication to EU governments supplies an answer: “The European Union has a political position to defend. It has a very positive image in terms of humanitarian and democratic values in Central America, which has high expectations of Europe. After playing a decisive role in the peace process in the 1980s, Europe can hardly abandon the region.”

Commission officials add that substantial reductions in US aid to the six countries mean that if the Union does not fill the gap, there is a risk that the region could slip back into war.

Although Honduras holds the San José group's rotating presidency, Guatemala will host a preparatory meeting for EU and Central American officials on 26-27 February. At that session, the San José partners will respond to the Commission proposals. The resulting draft declaration must then be approved by EU governments before the March meeting in Florence. EU officials expect the annual ministerial gatherings to be cut back to a meeting every second year.

Commission officials hope that the new relationship will see the region through the process of political and economic reform, so that the need for EU aid gradually diminishes.

“I wouldn't swear we'd still be there in 2010,” said one.