STATUS OF CENTRAL AMERICA ECONOMIC INTEGRATION

CONTENT

I. PROCESS CONTEXT

II. Main results of the process

III. Trade Facilitation

IV. Future Work

I CONTEXT OF CENTRAL AMERICAN INTEGRATION PROCESS
LEGAL BACKGROUND ECONOMIC INTEGRATION IN C.A.

Protocol to the General

Agreement of Central
American Economic
Integration (Protocol of
Guatemala).
-Commitment Establishment of
Multilateral Free Trade and the Customs Union
Central American Economic Framework agreement for the the Customs Union C.A.
Integration Agreement. 1993
1960
Customs Union in 10 years
Economic Partnership
Agreement
1958
-Free Movement of goods
(transitin to Customs Union).
General Agreement for
Central American Economic
Integration.
2015
2007 2016
2000
framework agreement Adoption of
Enabling Protocol
for the establishment of
establishment of a customs
union between El Salvador and Establishment of an Customs Union
Guatemala institutional framework to Guatemala- Honduras
implement C.U. gradually
- Establishment of a customs and progressively through
union between El Salvador and three stages :
Guatemala gradually and 1. Trade Facilitation
progressively. 2. Normative
COnvergence
3. Institutionality

- Mercado comn perfeccionado

en 5 aos y a constituir una
Unin Aduanera
STAGES OF AN ECONOMIC INTEGRATION PROCESS

1Preferential
Agreements.
- Tariff Preferences for a
limited group of products.
6. Total Integration.
2. Free Trade Zone.
- More Common
policies, Economic - Free trade for origin
and Monetary Union. products with some
exceptions(ej. Attach A).

3. Customs Union.
5.- Economic and
Monetary Union. - customs territory
formed by two or more
- Common Market
countries.
- Monetary
- Free movement of
Integration(a single 4. Common Market. goods, regardless of
currency)
Four Freedoms: origin.
-Goods
- Capitals.
- Servicies.
- People.
ECONOMIC INTEGRATION OBJECTIVES

Achieving of economic and social, equitable and sustainable development

of Central American countries that translates into the welfare of their
peoples.

Achieve growth of all countries through a process that allows the

transformation and modernization of its productive, social and technological
structures.

Increase competitiveness and achieve an efficient and dynamic

reintegaration of Central America in the international economy
RELAUNCH OF INTEGRATION PROCESS

SUMMIT OF PRESIDENTS, El Salvador, July 2010

Democratic Climate Social

Security Change Integration

Institutional Economic
strengthening Integration
PILLAR OF ECONOMIC INTEGRATION
Deepening Economic Integration Process

Trade Facilitation

Commitments related Road Map- Customs

to the C.U. Agenda Union C.A

Customs Union ADA Regional

Guatemala Honduras Commitments
II MAIN RESULTS OF ECONOMIC INTEGRATION PROCESS
CONSOLIDATION OF THE FREE TRADE ZONE OF C.A.
Elimination of customs duties on origin products
Free Trade
national treatment
Regime
Free transit for goods and transport..

For the five countries: unroasted coffee (payment

Exceptions to of import duties) and Sugar (control import).
Free Trade Bilateral: Roasted coffee; Petroleum derivatives;
(Attach A) Ethyl alcohol; Alcoholic drinks.

Trade
Regulations Regional Regulations

Intra Second Trading Partner for the region

Regional intra-regional exports: 1960 - $ 30 million 2014 $ 9.100 millions
Commerce Average annual growth rate: 11.2 %
MAIN RESULTS OF PROCESS I
Commercial Regulatory Harmonization in C.A.

Central American Tariff and Customs Regime Agreement

Framework Agreement for the Establishment of the Central American

Customs Union

Uniform Central American Customs Code (CAUCA) and its Regulation

(RECAUCA)

Central American Regulations on the Origin of Goods

Central American Regulations of Sanitary and Phytosanitary Measures

and Procedures
MAIN RESULTS OF PROCESS II

Regulations on International Terrestrial Customs Transit Regime

Central American Regulations on Unfair Trade Practices

Central American Regulations on Safeguard Measures

Central American Regulations on Standardization Measures, Metrology

and Authorization Procedures

65 Central American Technical Regulations(RTCAs)

Dispute Settlement Mechanism between Central America Trade

FOREIGN TRADE
III TRADE FACILITATION
STRUCTURE OF THE STRATEGY

5 Short-term measures for trade facilitation.

Medium and long-term Action plan with investment

plan for Coordinated Border Management.

Measurement indicators.

Implementation and Impact Monitoring Tool.

SHORT TERM MEASURES= 5 MEASURES

Early Declaration (FAUCA and DUA's), with the other requirements.

Streamlining and coordination of immigration controls (for drivers of transport units)

Plant and animal health certificates electronically transmitted.

Registration step in borders through RFID radio frequency devices (transport units loaded
and empty) to generate information crossing times.

Using camera systems at public access crossings borders

A GCF MODEL FOR CENTRAL AMERICA

Information
Central american interoperability
Digital Trade
Platform
Community and Integrated Risk
Border security Management

definition and International

implementation of peer Standards
countries and borders
pairs Equipment and Adoption Reliable
Infrastructure operators

strengthening national
trade facilitation Control and
Quarantine
committees Procedures
Control
Integration
IV FUTURE WORK
COMMITMENTS TO ADVANCE IN THE PROCESS OF ECONOMIC INTEGRATION
Expedite the clearance of goods at customs.
AGREEMENT ON TRADE Clarify and improve treatments on fees and formalities concerning import and
FACILITATION export (consular fees, charges, documents required, procedures, etc.)
WTO Improve the publication and availability of business information (laws, technical
regulations, resolutions, restrictions, etc.).
Establish a National Committee for the implementation of the Agreement.

Common procedures procedures at

borders.
Facilitating international transit of
SICA PRESIDENTS SUMMIT goods.
JUNE 27TH 2014 Adopt and implement a Central
American strategy on trade facilitation
and competitiveness, with emphasis on
coordinated border management.

Roadmap for the Customs Union with times, deadlines and responsible, with
emphasis on:
SICE PRESIDENTS SUMMIT Trade facilitation
Harmonizing customs procedures
DECEMBER 17TH 2014 Removing barriers to trade