The Union of Central American Bi-National Chambers of Commerce, Industry and Mexican Investment has been formally established.
Ucabicimex is "formed by the Chamber of Industry and Commerce of Costa Rica - Mexico (Cicomex), the Salvadoran - Mexican Trade (Chamber Casalmex), the Guatemalan - Mexican Chamber of Commerce and Industry (CAMEX), the Honduras - Mexico Enterprise Chamber ( CEHM), the Mexico - Costa Rica Enterprise Chamber (Camexcr), the Mexico - El Salvador Enterprise Chamber (Camexsal), the Mexico - Nicaraguan Enterprise Chamber (Camenic) and the Mexico - Panama Chamber of Commerce (Camexpa) ", reported Nacion.com.
Differences in customs processes between Central American countries to date are preventing them from trading as a block, in this case, with the EU.
According to the manager of the Integration and Trade Sector at the Inter-American Development Bank (IDB), Antoni Estevadeordal, trade agreements themselves are not a guarantee of success."It is not enough to have a policy of openness.
There are too many entities in the field of integration and they do not seem to be working with the speed they should.
The President of FECAMCO (Federation of Chambers of Commerce of Central America), Mario Gonzalez, believes that together with the customs union, key to boosting development in the region, there are other factors to consider, such as legal certainty, investment in technical education and physical security of persons and property.
There is a requirement to avoid duplicate collection of customs duties levied on imports in order to meet the provisions of the trade pact with the European Union.
The commissioner of Customs at the Superintendency of Tax Administration (SAT) in Guatemala, Oscar Funes, referred to the commitments made by the region in the signing of the Association Agreement between Central America and the European Union, signed on 29 June.
The first round of negotiations of the Second Semester of Customs Union ended last August 24 in Nicaragua having made significant progress.
From Diario de Central America:
The technical negotiators have concluded revision of the Central American Technical Regulation (RTCA) for labeling of distilled spirits and registration requirements for microbial pesticides for agricultural use, which have been passed on for resolution by the Council of Ministers of Economic Integration (Comieco). Negotiations will continue for the rest of subgroups via videoconferences and the necessary consultations made with stakeholders in each case.
Advances made in the past two years in the Central American customs offices are still not sufficient, and related costs amount to 38% of logistics costs.
The best advances have been made in customs processes relating to merchandise transported between Central American countries.
Investigating the topic Elnuevodiario.com.ni reports that "The biggest problem is imports from countries like the U.S.
Industrials in Costa Rica are celebrating the incorporation of Panama into SIECA, seeing the country as a first–rate ally for industry in Costa Rica.
A statement from the Chamber of Industries in Costa Rica reads:
The Chamber of Industries in Costa Rica, CIRC, would like to express its satisfaction at the incorporation of Panama into the Sub System for Economic Integration (SIECA), with which compliance is reached for one of the most important requirements proposed by the European Union to enable signing of the Association Agreement.
After negotiations to overcome some last minute objections from Nicaragua, Panama has been formally included in the Central American Integration System.
Citing "lack of clarity in the protocol document regarding the exact date, requirements and deadlines to which Panama commits to in order to be integrated into SICA", Nicaragua had objected to Panama’s full integration into the Central American Integration System (SICA).
The canal country's accession will be formalized on 29 June and will accelerate the elimination of tariffs and regional trade facilitation.
The incorporation of Panama to the Secretary for Economic Integration of Central America (Sieca), will allow Central American countries to sign the Association Agreement with the European Union (EU).
"The EU required Panama’s integration into the agreement, it is a country with an economic growth of 10%, a canal through which 5% of world trade passes, it has a robust banking system and a free zone situated in the Atlantic city of Colon ", reported Laprensa.com.ni
The government of the Asian power has an interest in negotiating a free trade agreement with the entire region seen as one market.
In the near future, a matter of months, South Korea wants to begin negotiating a free trade agreement with Central American countries, said the South Korean ambassador in Nicaragua, Soon Tae Kim.
"My government is currently studying with Central American countries in this regard (the feasibility of an FTA).
The Central American Customs Union is the most important tool for increasing trade in the region and generating the economies of a scale necessary to compete in the global market.
The Federation of Chambers of Exporters of Central America, Panama and the Caribbean (FECAEXCA) has released a statement in which it urges “the Ministers of Economy of the region to redouble their efforts so that the processes of the Customs Union can acquire the necessary priority and speed and to take actions to complete them”.
The Intra-regional trade sector is excited about a project to develop an Integrated Control Center at the border crossing between Panama and Costa Rica.
Panama and Costa Rica have agreed to develop a design for an Integrated Control Center (ICC) in the common border of Paso Canoas.
According to the Costa Rican Ministry of Foreign Trade (COMEX), both countries aim to harmonize and simplify the procedures required for passage across the border, maintaining control and safeguarding the powers of each country.
Panama's accession will be formalized in late June and will accelerate the elimination of tariffs and facilitate regional trade.
In Costa Rica and other Central American countries there are expectations over Panama's accession to the Central American Economic Integration Secretariat, which will be signed in Tegucigalpa on June 29, and the regional benefits it will bring.
Five regulations signed by the COMIECO will facilitate trade within the region and minimize the cost of economic exchange.
The Council of Ministers of Economy (Comieco) agreed to sign 5 regulations to standardize the use of packaging and labels at the regional level, in order to facilitate trade and minimize costs of economic exchange in the isthmus, reported Agencia Guatemalteca de Noticias.
A regional program will support the quality and application of sanitary and phytosanitary measures.
In order to improve access for Central American products to markets the creation of a standardized and internationally recognized Regional System for Quality and Application of SPS Measures has been proposed.
A communiqué from the Central American Economic Integration Secretariat reads: