A key factor in economies´competitiveness is the unrestricted movement of the available human and material resources, and this is where the customs integration of Honduras, Guatemala and El Salvador falls very short.
EDITORIAL
Jorge Cobas González Director of CentralAmericaData.COM
While authorities have reactivated the process for binational customs liberalization, entrepreneurs have pointed to constraints on issues related to bureaucracy, corruption, and infrastructure at border crossing points.
The governments of Guatemala and El Salvador have resumed work in Technical Groups to liberalize binational border posts. In a statement, they reported that dialogue has been revived over customs, sanitary and phytosanitary issues, migration, security, and legal and tax issues.
The decree approved by the Guatemalan Congress was the missing step needed to implement the free movement of people and goods between the two Central American countries.
From a statement issued by the Ministry of Trade:
Guatemala, January 22, 2016. The Congress of Guatemala yesterday approved a Protocol Enabling the Deep Integration towards the free movement of people and goods between the Republics of Guatemala and Honduras.
Money in the pocket for every grandstanding politician and every wannabe business consultant, logistics in Central America is a much talked about theme on which no action is actually taken.
EDITORIAL
Logistics is vital for sustainable economic development, and it is perhaps the area of business management that has made the greatest strides in the last 50 years.
"It is we ourselves who are still looking ourselves as independent countries, when in fact we must work even harder on this unification."
In his article published in the magazine industry, the executive director of the Chamber of Industry of Guatemala Javier Zepeda, describes the situation which as yet has not be able to be changed: the plan for regional integration only exists on paper.
Now is the time to fulfill the clear mandate of the Presidents of the Central American Integration System for the establishment of a Customs Union in Central America.
From a statement issued by the Federation of Chambers of Commerce of Central America (FECAMCO):
The Federation of Chambers of Commerce of Central America (FECAMCO) held in San José, the transfer of chairmanship of this regional entity to the Chamber of Commerce of Costa Rica for the period 2015.
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).
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 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”.
Instead of being reduced, bureaucracy at the Central American borders is becoming increasingly burdensome, complicating and making intra regional trade more expensive.
Constant delays which increase transportation costs, lack of progress in the streamlining of customs procedures and a perceived stagnation of the customs and economic integration project are the most pressing problems observed by business associations in Central America.
The region's federation of chambers of commerce (Fecamco in Spanish) encourages governments to keep pushing for customs union.
A Fecamco press release states that in meetings held between October 31st and November 1st discussions centered on Central America's political and economic situation that led to a renewed call to the region's governments to consider important topics.
The meeting of technical groups from the countries of Central American Integration System (SICA) in El Salvador ended with significant advances
Progress was made in the preparation of some 15 rules of origin and the harmonization of tariffs for different products.
Deputy Minister of Economy of El Salvador, Mario Hernandes, told Reuters, "Decisions made in the technical rounds will be passed up to the technical and deputy ministers of Trade and Economy for approval."
The World Customs Organization and SIECA will sign an agreement to support Central America in harmonizing and standardizing custom procedures.
Currently, Central America has 96% of its tariff code harmonized, and the remaining 4% will be discussed over the next two years. A unique, harmonized tariff code should be ready by 2012, when the Association Agreement with the European Union is expected to come into effect.
The second phase of the International Merchandise Customs Transit (TIM) project in the customs zones of Central American countries begins.
After the pilot project is conducted at El Amatillo customs zone between Honduras and El Salvador, it is expected to be extended to the customs zones in Mexico, Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama.
At the same time that they are making the final step in the elimination of the border for the passage of goods, both countries are calling on the rest of Central America to do the same.
The article in Mipunto.com says that "In Central America, El Salvador and Guatemala have led the customs unification process, which has been contemplated and pushed for since 2003 in the region." ...