Decision

18 to 25 November 2024: Joint minutes of the second UK-Central America Board on Trade and Sustainable Development meeting

Updated 14 March 2025

1. Introduction

The United Kingdom (UK) and the Central American countries – Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama – held the second meeting of the Board on Trade and Sustainable Development (TSD) from 18 to 25 November 2024, through written correspondence by email, under the Association Agreement between the UK and Central America (the ‘Agreement’).

2. Progress in the implementation of commitments on labour standards and multilateral agreements

2.1 Guatemala

Guatemala reaffirmed its commitment to fundamental labour rights, in alignment with International Labour Organization (ILO) Conventions and the Association Agreement between the UK and Central America. The country has ratified 75 ILO conventions, including 8 of the 10 fundamental conventions, 4 governance conventions, and 63 technical conventions, highlighting the recent ratification of convention 191 on a safe and healthy working environment (2023).

Its key advancements include:

• freedom of association and collective bargaining: follow-up on ILO recommendations regarding conventions 87 and 98, and inter-institutional co-ordination to address related cases

• elimination of forced labour and child labour: legislative reforms to criminalise offences affecting children, progress on the Roadmap for the Eradication of Child Labour (2022 to 2025), the establishment of a case registration platform, and the development of the Child Labour Risk Identification Model (MIRTI)

• elimination of labour discrimination: implementation of the National Decent Employment Policy, the ‘Beca Mi Primer Empleo’ programme (My First Job Scholarship Programme), wage increases based on economic criteria and strengthened gender equality in formal employment

• safe and healthy working environment: updates to the Occupational Health and Safety Regulations, approval of the Guide for HIV Stigma-Free Workplaces (2023), and the creation of bipartite committees to enhance occupational health

These efforts demonstrate Guatemala’s commitment to international labour standards, fostering fair, safe, and dignified working conditions for all.

2.2 Nicaragua

Nicaragua reported its progress on labour issues related to freedom of association and collective bargaining in accordance with the provisions of article 87 of its political constitution and ILO convention 87. In this regard, in the period 2020 to 2022, 88 new trade union organisations were registered, affiliating 2,564 workers, of which 799 are women and 1,765 are men. Likewise, 2,828 trade union organisations were updated, involving grassroots unions, federations, confederations and centrals. Also, 179 collective agreements were registered at the national level, allowing 328,523 people to improve their working conditions. 80% of these agreements establish clauses that benefit women workers.

These results are part of the achievements reached through dialogue, alliance and consensus between employers and trade union organisations representing workers, with the accompaniment of the Ministry of Labour as facilitator of the negotiation processes, seeking understanding between the parties, resulting in the signing of collective agreements.

2.3 Costa Rica

Regarding labour matters, Costa Rica provided detailed information on:

• trade union freedom
• collective bargaining
• the eradication of child labour
• labour inspection
• virtual conciliation
• progress on responsible business conduct

On freedom of association, Costa Rica reported that it developed a regulation governing the operation of the Social Organisations Department, within the Ministry of Labour and Social Security (MTSS). This regulation aims to standardise registration and recognition process for organisations, in accordance with the Labour Code, and it is currently undergoing formalisation phase.

Regarding collective bargaining, the country outlined the legal framework applicable to public sector employees and presented data demonstrating a significant number of collective agreements within the public sector.

Concerning the eradication of child labour, Costa Rica highlighted its pioneering role in prevention and strategy co-ordination to combat this issue. The country listed key initiatives, including the 2021 to 2025 Roadmap, a re-activation of the high-level steering committee, and technical assistance from the ILO to refine statistical measurement of child labour and hazardous adolescent work, among other measures.

On labour inspection, Costa Rica discussed the development of the Integrated Management System of the National Labour Inspection Directorate and the impact of gender-focused inspection visits, a recognised good practice at the regional level.

Furthermore, the country reported on progress with the virtual conciliation project, which is ready for implementation pending the issuance of the supporting executive decree.

In terms of responsible business conduct, Costa Rica announced the creation of the SOMOS+ Social and Labour Recognition System, designed to acknowledge public and private entities that implement due diligence in human rights, gender equality, social responsibility, and non-discrimination.

2.4 Honduras

In relation to the application of convention 98 on the Right to Organise and Collective Bargaining, the Secretariat of Labor and Social Security (SETRASS) reported that between January 2019 and August 2024, complaints of dismissals of union leaders were documented, 3 of which are currently under review. To strengthen union protection, the General Directorate of Labour Inspection (DGIT) proposed amendments to the labour code in alignment with ILO conventions 87 and 98, although discussions on these reforms have been ongoing since 2019. Additionally, cumulative increases in labour sanctions were introduced, indexed to inflation, to prevent employer interference in trade unions.

Regarding collective bargaining, SETRASS acted as a mediator in 16 collective negotiations between 2023 and 2024. On equal pay, the secretariat implemented wage audits, job classification tools, and promoted gender mainstreaming in employment policies. In May 2024, the Inspection Protocol to Combat Gender Discrimination in Employment was published. Additionally, SETRASS launched the Labour Rights Violations Reporting Platform with support from the American Institute for Research (AIR), a confidential channel for reporting wage inequalities and other labour rights violations.

2.5 El Salvador

El Salvador presented progress in complying with the fundamental conventions of the ILO. Regarding freedom of association, trade union freedom and effective recognition of the right to collective bargaining, the reforms to the labour code aimed at strengthening labour rights were highlighted. The creation of dialogue roundtables and the support provided through counselling services and conciliatory hearings by the Trade Union Service Office were also highlighted.

With regard to efforts to eradicate forced labour, information was shared on the inspections carried out. Moreover, regarding the fight against discrimination in employment, the implementation of the project ‘Promoting Employment Opportunities and Skills Development in El Salvador’ was highlighted. The project’s objective is to improve access to employment and skills development for people in vulnerable situations. El Salvador also highlighted significant achievements in the elimination of child labour in the sugarcane sector through strategic alliances.

2.6 Panama

Panama highlighted progress in labour policy, having ratified 81 ILO conventions and a protocol. Eight of these are fundamental conventions on forced labour, trade union freedom, collective bargaining, equal pay, workplace discrimination, and the eradication of child labour. More recently, it ratified convention 190 on violence and harassment at work, convention 129 on labour inspection in agriculture, and convention 183 on maternity protection.

The Ministry of Labour and Workforce Development (MITRADEL) has promoted policies to enhance employability for young people and women in vulnerable situations, fostering gender equity and inclusion. A key initiative is the ‘Igual Trabajo – Igual Salario’ (Equal Work – Equal Pay) campaign, which includes salary reviews and measures to reduce the gender pay gap. Job placement services have been strengthened through digital platforms and programmes for people with disabilities. To combat child labour, a Roadmap was developed with support from the ILO, outlining prevention strategies and ensuring access to education and healthcare.

The Committee for the Prevention and Eradication of Child Labour has been reinforced, and awareness campaigns have been launched. Panama is also advancing the Gender Parity Initiative (IPG) to close economic gaps between men and women by integrating public and private sector efforts. Additionally, the country has established the National Care System, recognising the right to care and generating formal employment for individuals who have traditionally taken on these responsibilities without remuneration. In the area of labour inspection, human and technological resources have been increased to ensure regulatory compliance in key sectors, reflecting Panama’s commitment to modernising its labour framework and protecting workers’ rights.

2.7 United Kingdom

The UK presented its responsibilities in labour matters, highlighting the role of the Department for Business and Trade in free trade agreements and the work of other agencies in non-discrimination, occupational safety and health, and the fight against modern slavery. Information was provided on the ratification of 9 fundamental ILO conventions and on the future consideration of the potential ratification of convention 155 on occupational safety and health.

Regarding gender equality and sexual harassment in the workplace, the UK addressed the Worker Protection Act and the plan to ‘Make Work Pay’. The plan to Make Work Pay will make work more secure and family-friendly and improving living standards through legislative reforms and other regulatory measures. On tackling forced labour in supply chains, the UK reaffirmed its transparency-based approach under the Modern Slavery Act 2015, which requires companies operating in the UK with an annual turnover of £36 million or more to report annually on the steps taken to prevent modern slavery in their operations and supply chains labour.

Additionally, the UK underscored support of voluntary due diligence approaches taken by UK businesses to respect human rights and the environment across their operations and supply relationships, in line with the UN Guiding Principles on Business and Human Rights and the Organization for Economic Co-operation and Development (OECD) guidelines for multinational enterprises.

3. Progress in implementing commitments under environmental standards and multilateral environmental agreements

3.1 Guatemala

Guatemala reported progress made between 2020 and 2024, in implementing the Basel and Stockholm Conventions, as well as the Montreal Protocol. Within the framework of the Montreal Protocol, the progressive reduction of Hydrochlorofluorocarbons (HCFCs) and Hydrofluorocarbons (HFCs) was achieved by controlling imports through authorised quotas. Additionally, the Kigali Amendment was approved through Decree No. 09-2023. Training in refrigeration and air conditioning was promoted through labour certification projects and the donation of equipment in collaboration with the United Nations Industrial Development Organization (UNIDO).

Under the Stockholm Convention, efforts were made to manage pollutants such as polychlorinated biphenyls (PCBs) and Dichloro-diphenyl-trichloroethane (DDT) through a project aimed at their safe environmental handling and disposal. Regulations on electrical and electronic waste were advanced, with initiatives to strengthen its management and the development of a specific regulation. Regarding the Basel Convention, the control of hazardous waste and the transboundary movement of plastics was strengthened through a regional project in Central America. Furthermore, progress was reported in complying with the United Nations Framework Convention on Climate Change (UNFCCC), with the approval of Decree 7-2013 and the development of projects under the Clean Development Mechanism and the National Climate Change Policy.

3.2 Nicaragua

In environmental matters, Nicaragua highlighted progress under the Convention on Biological Diversity, certifying 220 private wildlife reserves and working on biodiversity conservation by updating management plans for protected areas and training in biodiversity monitoring techniques. In addition, it reported that it has complied with the provisions of the Montreal Protocol through the early reduction of controlled substances in this instrument, that in 2022 the Regulation for the Control of Substances that Deplete the Ozone Layer was approved by Presidential Decree No. 09-2022 and that from 2024 the Kigali Amendment began to be implemented.

In the framework of the Paris Agreement, it reported that, in 2023, it submitted its first Biennial Update Report including the fifth National Greenhouse Gas Inventory, and in compliance with Article 4 of the Agreement, it will prepare and submit in 2025 its updated Nationally Determined Contributions NDC 3.0. It also continues to work on the implementation of policies to reduce greenhouse gas emissions and combat climate change.

3.3 Costa Rica

Costa Rica welcomed the detailed information provided by the UK on the Carbon Border Adjustment Mechanism (CBAM) and presented its progress regarding implementation and alignment of its public policies and plans on climate action. Concerning plastics management and circular economy, the country provided information on its regulatory framework, as well as the efforts made on project implementation for better plastic waste management. Additionally, Costa Rica reported on the ratification process of the United Nations agreement on biodiversity beyond national jurisdiction (BBNJ), currently under review by the executive power.

Additionally, it reported updates on the implementation and alignment of the National Biodiversity Strategy with the Kunming-Montreal Global Biodiversity Framework, as well as the recent ratification of the Nagoya Protocol, highlighting the access and benefit sharing (ABS) certification as a recognition for companies that comply with national and international regulations on access to genetic resources and the commercial utilisation of their benefits.

3.4 Honduras

The Secretariat of Natural Resources and Environment (SERNA) outlined key achievements in climate action, emphasising the National Decarbonisation and Climate Resilience Strategy (2020 to 2050), the Second Biennial Update Report (BUR2) to the UNFCCC, and the National Greenhouse Gas Inventory for 2016 to 2020. On the regulatory front, at least 10 new legal instruments are in progress, including a draft Climate Change Law and regulations addressing climate justice and the National Climate Change Monitoring System (SNMCC). In terms of climate adaptation, the National Adaptation Plan (2018 to 2030) focuses on priority sectors such as water resources, biodiversity, agriculture, and infrastructure, with 84 strategic projects, particularly in the Dry Corridor.

A progress report is expected this year to inform the 2025 update of Honduras’ Nationally Determined Contribution (NDC). Efforts are also underway to promote reforestation, watershed restoration, dam construction, and community forestry, with incentives to support forest conservation. On environmental protection, the National Reforestation Programme ‘Padre Andrés Tamayo’ has restored over 24,000 hectares of forest and safeguarded 112 micro-watersheds. Measures to combat environmental crimes have been strengthened, including the establishment of 3 specialised environmental protection units within the armed forces.

Regarding chemical and waste management, Honduras has a comprehensive waste law and specific regulations for the safe handling of hazardous substances and waste, contaminated sites, and mercury.

3.5 El Salvador

On environmental issues, El Salvador shared information on the progress made in the implementation of the Multilateral Environmental Agreements incorporated into the Association Agreement. In compliance with the Montreal Protocol, the reduction in the consumption of HCFCs and the development of training related to the use of sustainable technologies, among other aspects, were highlighted. Within the framework of the Basel Convention, El Salvador reported significant progress in strengthening the control and management of both hazardous and non-hazardous wastes.

Regarding the Stockholm Convention, the promotion of the circular economy was mentioned through the implementation of regulations for waste management and the promotion of recycling, among other achievements. In addition, progress was reported on the Convention on Biological Diversity, the Biosafety Protocol and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Finally, El Salvador reaffirmed its commitment to the UNFCCC and its Kyoto Protocol, through co-ordinated climate management at the inter-institutional level, in order to strengthen resilience to extreme climate events.

3.6 Panama

Panama highlighted the importance of conserving and sustainably managing its natural resources, promoting the ‘Volver al Campo’ (Return to the Field) strategy in collaboration with non-governmental organisations (NGOs) and local communities. Within this framework, with support from Wetlands International, the Global Environment Facility and the United Nations Development Programme, it has organised workshops to set national biodiversity targets and report progress under the Convention on Biological Diversity.

Concrete actions are being implemented to strengthen protected areas, including hiring personnel, improving infrastructure, and expanding conservation zones through legislation and strategic partnerships. On climate change, the country has generated key data to assess vulnerabilities and design adaptation strategies, with particular emphasis on the Climate-Focused Circular Economy Roadmap and the Climate Vulnerability and Risk Index. Water footprint management is being promoted through the ‘Reduce tu Huella Hídrica’ (Reduce your Water Footprint) programme, and the implementation of a national carbon market is planned for 2025. In waste management, a new office will be established within the Ministry of the Environment to improve waste collection and disposal, with support from China, South Korea, and France.

At the regional level, the ‘Caribe Circular’ (Circular Caribbean) project aims to harmonise policies across Central America. In the marine sector, Panama is enhancing coastal and oceanic monitoring and exploring the creation of a biosphere reserve with Eastern Tropical Pacific Marine Corridor countries while participating in negotiations on plastic pollution. It is also working on a national position on plastics and waste in co-ordination with the private sector and civil society. Regarding deep-sea mining, Panama supports a precautionary pause at the International Seabed Authority (ISA) and will participate in its 30th session in 2025. Additionally, it has ratified the BBNJ Agreement and is progressing towards ratifying the World Trade Organization (WTO) Agreement on fisheries subsidies, reaffirming its leadership in these matters.

3.7 United Kingdom

The UK outlined its trade and environmental policy, emphasising the negotiation of comprehensive trade agreements to promote rules-based commerce while leveraging trade policy as a tool for decarbonisation, sustainability, and economic growth. Key commitments included reducing greenhouse gas emissions, sustainable agriculture and forestry, strengthening biodiversity, and transitioning towards a circular economy. In the context of multilateral environmental agreements, discussions focused on sustainable forest management and regulating the trade of timber products, including initiatives against deforestation launched at COP26.

On sustainable fisheries and aquaculture, the UK stressed its efforts to combat illegal, unreported, and unregulated fishing through catch documentation schemes and enhanced port surveillance measures. Finally, the UK presented its strategies to achieve its legally binding commitment to carbon neutrality by 2050, which include 5 year carbon budgets and policies to accelerate the development of clean energy.

4. Progress in implementing trade commitments that support sustainable development

4.1 Costa Rica

Costa Rica reported on its commitment to advancing trade policies that support sustainable development, highlighting its participation in the negotiation of the Agreement on Climate Change, Trade, and Sustainability (ACCTS). The country also shared details on its ABS certification, recognising businesses that access genetic and biochemical resources while ensuring their fair and sustainable use in accordance with national and international regulations. Additionally, Costa Rica provided information on its efforts to support export-oriented small and medium-sized enterprises (SMEs) in transitioning to sustainable production models and attract investment in green technologies, reinforcing its approach to integrating trade with environmental sustainability.

5. Conclusions

Central America viewed the exchange of information with the UK as positive, recognising its contribution to strengthening dialogue on labour and environmental matters within the framework of the TSD chapter. The UK expressed its appreciation for the constructive engagement of Central American countries in this process and underscored the importance of continued collaboration in the implementation of commitments in these areas. Both parties reaffirmed their commitment to deepening co-operation and maintaining a constructive dialogue to effectively address shared challenges and opportunities.

Following the exchange of information, parties exchanged a series of follow-up questions addressing labour and environmental issues highlighted in the presentations. These enquiries covered labour topics like the implementation and ratification of certain ILO conventions, policies to tackle child labour, and gender equality initiatives. On Environment, these covered topics relating to carbon border adjustment mechanisms, deforestation, and the adoption of electric vehicles.