The Electrical Interconnection System for Central American countries will be a decisive factor in reducing the cost of electricity at the regional level.
According to Ibrán Bueso, a legal advisor for the National Electricity Company (ENEE) in energy, one of the objectives of consolidation of the Electric Interconnection System for Central American Countries (Siepac) is to strengthen the competitiveness of the region by reducing its energy costs.
Mexico and Colombia could be the next countries to be incorporated into the Electrical Interconnection System for Central American Countries.
The issue will be discussed during a three-day meeting which Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama, countries associated with the Electric Interconnection System for Central American Countries, (Siepac), will have this week.
If it is not even clear whether there is a need for another canal in Central America, then obviously some or all of the routes currently being planned are not going to work.
Andres Oppenheimer, in his article in Elnuevoherald.com, notes the incongruity of having so many projects, making so much effort and so much investment in order to transversely divide up Central America, rather than applying those resources to uniting their countries throughout the isthmus.
In contrast to what should be a regional customs union, every Central American border post charges vastly different rates and taxes.
"We believe that we could even stage regional custom blockades," said the Nicaraguan Marvin Altamirano, president of the American Federation of Chambers of Transportation (Fecatrans).
Central Freight carriers will meet next August to define the measures to be taken against the different fees imposed by various countries in the region.
The heavy bureaucracy present in Central American governments is obstructing the transport of goods, adding to regional trade costs.
In Guatemala, for example, the inefficiency in resolving issues and easily implementing procedures is self evident, as currently there are open files against 36,000 carriers, "something that no one can update, because of how cumbersome it would be to update this documentation , but the worst thing is that many of these records were wrongly documented because they correspond to breaches by vehicles which later went out of circulation ... " noted an editorial published by Prensalibre.com.
Today the official request was made to join, as an observer, the Central American Integration System, appointing Ivan Ramalho, to act in that instance.
Eleconomista.net reports: "The resolution was adopted by the bloc's foreign ministers, meeting in the Common Market Council (CMC), which prepared the statement later to be signed by the presidents."
After being accepted by the current members, another year is required for the country to become a full member of the Central American Integration System.
"There is a political will that the Dominican Republic be integrated as fast as possible" as a full member of the Central American Integration System (SICA), as it currently is an observer, said the Costa Rican Foreign Minister Enrique Castillo.
Finally the geopolitical reality has been imposed and the Canal country has been formally integrated into the community of Central America nations.
It was "a great achievement" and one "longed for for many years by all Central American countries", this was Panama's accession to SIECA, an organ of the Central American Integration System (SICA), said Anabel Gonzalez, Costa Rican Foreign Trade Minister.
The Federation of Chambers and Associations of Exporters of Central America have joined their voices with those of businesses to oppose the tax for Attention to Victims of Traffic Accidents.
The Federation of Chambers and Associations of Exporters of Central America (Fecaxca) believes that the tax affects the competitiveness of a regional market in the process of development.
On June 1 the Regional Electricity Market Rules and the Supplementary Detailed Procedure Electrical Interconnection System for Central America became effective.
"It's a big step forward for electrical integration. These are rules designed to operate the SIEPAC line and power transmission capacity between countries with greater intensity," said the executive director of the Regional Operating Agency (EOR), Rene Gonzalez.
The regional freight sector has agreed to purchase insurance to protect accident victims.
Prensalibre.com.gt reports that "The government of El Salvador and cargo transport unions in Central America, agreed yesterday in "supporting" a legal reform which alleviates them from the payment of a tax on those who already pay insurance to cover against any accidents, an official said. "
Complaints have been made stating that the new tax charged by the government of El Salvador on vehicles from other countries who cross its borders, will increase costs and hinders regional trade.
The Salvadoran decision "is detrimental to the competitiveness of the Central American region, further increasing costs related to insecurity, and this measure goes against the principal of free movement of goods in the region," said the Federation of Chambers of Agriculture and Agroindustrialists in Central America (Fecagro).
The tax on vehicles with foreign plates is having a negative impact on the transportation of goods, raising costs and increasing paperwork and lengthening waiting times at customs offices.
From a statement from the Federation of Chambers of Commerce of Central America (FECAMCO):
The Federation of Chambers of Commerce of Central America (FECAMCO) wishes to express its increasing concern over the current situation in our region, characterized by the exacerbation of the problems that affect its competitiveness and development.
With the formal integration of the canal country into SIECA, what was a geopolitical contradiction has been corrected, because Panama always should have been part of Central America.
From a press release from the Central American Economic Integration Secretariat (SIECA):
The Secretariat of the Central American Economic Integration (SIECA) congratulates the brotherly people of the Republic of Panama for joining the Central American Economic Integration Subsystem by means of the deposit of the Incorporation Protocol made on Monday May 6 this year.
Preparations are being made for a single form that will streamline customs trade ahead of the entry into force of the Association Agreement between Central America and the European Union.
According to the president of the Superior Council of Private Enterprise (Cosep), Joseph Adam Aguerri, already working on this issue are the Central American Integration System (SICA), and the Secretariat of Central American Economic Integration (SIEC).