BRUSSELS, March 22 (Reuters) - European and Central American negotiators initialled a free-trade agreement on Tuesday, the European Commission said in a statement, a move expected to reduce duties on trade in goods worth 12 billion euros annually.
The deal, first agreed almost a year ago, must now be signed, ratified and applied by its signatories -- the European Union, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama.
Once applied, it is expected to cut tariffs on goods from beef and cars to electronics, telecoms and wines and spirits.
"It is an important step towards the entry into force of this real 'region to region' agreement," said EU Trade Commissioner Karel De Gucht in a statement.
"It is an ambitious and comprehensive agreement, which will boost trade and investment between us, hence growth and jobs, and help Central America progress in its regional integration."
Agreement for a deal was first reached in May 2010 after more than three years of negotiations, and since then the pact has been undergoing legal revisions. (Reporting by Juliane von Reppert-Bismarck)