Full Customs Union Will Take A Long Time

While Honduras and Guatemala are already advancing in the process of customs unification and Nicaragua and El Salvador have joined as observers, in Costa Rica it is thought that full union will only be completed between 2023 and 2025.

Wednesday, August 23, 2017

The fact that the countries in the region are implementing the processes necessary to achieve Customs Union at different speeds makes the full union of all systems and full opening of borders for the free transit of goods still a distant goal.

For example, Costa Rica's foreign trade minister, Alexander Mora, "... believes that a Central American customs union with defined rules and fully harmonized systems will not exist until 2023 to 2025."

See: "What the Guatemalan - Honduras Customs Union Promises"

"... Minister Mora detailed that in the roadmap towards the regional customs union the goal was set of the period 2013 to 2025 because all countries have some aspects pending. In the case of Costa Rica, different aspects were pointed out, starting with the modernization of the border crossing points (Peñas Blancas, Tablillas, Paso Canoas and Sixaola), a project to be financed with a loan from the IDB. See "Costa Rica: Approves $100 Million for Border Crossings ".

In the case of Guatemala and Honduras, Melvin Redondo, general secretary of the Sieca, explained to Nacion.com that "in the free customs territory of the two countries there is free movement of goods and people. However, there are exceptions in the transfer of products, for which the scheme used by the countries of the region is used."

Recently, the governments of Nicaragua and El Salvador announced their incorporation into the process as observers. 

More on this topic

Customs Union in Northern Triangle Moves Forward

July 2018

The Legislative Assembly of El Salvador has approved incorporation into the Customs Union between Guatemala and Honduras.

Although an improvement has been reported in the transit of goods through customs posts as well as an increase in bilateral trade, there are still a lot of aspects that need improving, according to businessmen who trade among these countries. See "Customs Union: Good results, but improvement still needed"

Guatemala - Honduras Border Integration Starts

June 2015

The first stage of the pilot program, which began on June 1, consists of transferring the post of El Florido Guatemala, to Honduran offices in Agua Caliente.

The second phase, scheduled for December, "... involves the installation of "peripheral posts", with which border points will be removed and turned into only crossing and control points, trade will through peripheral positions.

FTA with South Korea Back on Negotiating Table

April 2015

The South Korean government has proposed to Central American countries that they resume negotiations to sign a free trade agreement.

During a meeting between officials of the Ministry of Foreign Trade of Costa Rica and the deputy minister, Moon Jaedo, of the Ministry of Commerce, Industry and Energy (Motie) of South Korea, it was requested "...

Costa Rica Questions Customs Union

March 2015

Different tariff policies from the rest of the region and inadequate infrastructure at border posts do not facilitate the country's integration into the Customs Union.

Authorities at the Customs Department claim that they have identified the aspects that need to be worked on and improved in order to achieve integration with other countries in the region.

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