(VOVworld)- The European Union and Cuba signed an agreement Friday to normalize ties, in a deal that could clear the way for trade and political dialogue between the 28-member bloc and the Caribbean nation after more than a decade. This accord opens a new chapter in the history of relations between the two sides. The two sides said in a statement that it set the stage for relations based on "respect, reciprocity and shared interests."

Cuban Foreign Minister Bruno Rodriguez (R) and EU foreign policy chief Federica Mogherini attend a joint press conference in Havana, capital of Cuba, March 11, 2016. (Xinhua/Liu Bin)

The deal called “Political dialogue and cooperation” will replace the “Common position” policy that the EU imposed on Cuba 20 years ago demanding Cuba improve its democracy and human rights in exchange for economics ties with the EU. The deal is the outcomes of 7 official rounds of tense negotiations since 2014 between Cuba and the EU. EU Foreign Policy Chief Federica Mogherini said during the 7 rounds of negotiation, the two sides discussed all aspects in bilateral ties including sensitive issues like politics, economics, and human rights.

The “Political dialogue and cooperation” deal will pave the way for further bilateral cooperation ranging from environmental protection to modernization of Cuba’s tax system. According to political analyst Joaquin Roy of the University of Miami, this is a win-win agreement. Cuba gains in credibility and the EU casts off a weight because it never really gained anything with the “common position”. . Without a doubt, the agreement marks another achievement for Havana's foreign policy after Cuba and the United States announced in December 2014 plans to normalize relations.

Cuba was previously the only country in Latin America without an international cooperation deal with the 28-member bloc. The EU suspended relations with Cuba in 2003 following a crackdown on anti-government activists by the Cuban government in which 75 dissidents, including 29 journalists, were imprisoned. In the following years, a number of EU countries continued bilateral cooperation with Cuba despite the Brussels sanctions. The EU is currently Cuba’s second largest trade partner, biggest investor, and the third largest tourism market. Trade between Cuba and the EU has reached 2 billion euros. After the deal was signed, the EU announced an additional 10 million euros of new support to Cuba, which is a part of overall 50 million euros in development cooperation funds for Cuba. Neven Mimica, EU Commissioner for International Development said the 10 million euros of new support will help build the capacities of the Cuban public administration and sustainable food production. Since the first round of negotiation in April 2014, the EU has provided more than 100 million USD to help Cuba promote sustainable agricultural development and other economic targets. Ms Federica showed her support for Cuba’s struggle against the US’s economic, financial and trade embargo saying the embargo is completely obsolete and outdated. Now the priorities are dialogue and cooperation, and the embargo is an obstacle which has to end.

The deal must now be ratified by the 28 EU member-states.