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
The economic and political stability that prevailed between 2011 and 2014 was not taken advantage of to implement relevant measures to deepen the policy of regional integration.
From the "Regional Integration" section of the V Report on the State of the Region 2016":
General Evaluation
Between 2011 and 2014, the Central American Integration System (SICA) did not face shocks such as the political crisis or the global economic recession that impacted this work at the end of the last decade.Despite this more favorable context, no significant progress was made in the integration process: no evidence was found that Member States had taken significant initiatives to deepen integrationist policies or modify the structure of regional institutions.
Customs Union between Guatemala and Honduras passes implementation phase after submission of the Enabling Protocol to SICA.
From a statement issued by the Secretariat of Central American Economic Integration:
Central, 4 May 2016. The Republics of Guatemala and Honduras, accompanied by the Secretariat of Central American Economic Integration (SIECA), officially delivered the Enabling Protocol for the Deep Integration Process into the free transit of goods and individuals between the two countries, for its submission to the General Secretariat of the Central American Integration System (SICA).
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.
There is still no legal framework to manage the international cooperation funds that would finance the implementation of the customs union between the two countries.
Even though the Central American Economic Integration Secretariat (SIEC) announced "progress" in the process of the Customs Union between Guatemala and Honduras, Elperiodico.com.gt denounced the obstacles preventing it, "...
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.
It is time for transparent information to be given on which Central American governments continue to obstruct the essential unification of border formalities.
EDITORIAL
The Council of Ministers for Economic Integration (Comieco) which met in Managua on September 4 and 5 ended, as always happens in these meetings with public officials, with a statement of good intentions including promises to "work on the standardization of procedures at border posts and a regional strategy for trade facilitation," objectives which have been stated often and which up to now are far from being realised.
In order to expedite intraregional trade it is necessary for customs offices dealing with cargo freight, to be open all hours, just as immigration customs offices are.
A study commissioned by the Federation of Chambers of Commerce of Central America (Fecamco) concluded that there are 87 barriers to trade in the region, one of the major ones being operations of the systems at customs offices at borders, followed by bureaucratic requirements and lack of adequate infrastructure.
The difficulties and obstacles highlighted by exporters in intraregional trade reveal the serious shortcomings of the much vaunted concept of Central American Integration.
Chambers representing exporters in Central American countries believe that instead of moving towards the integration of the region, the slow progress of the customs union and the high costs of transport is retracting from it.
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).
Last Friday in San Jose the first round of negotiations of the Customs Union ended, having made major advances in the fields of food, medicine, manufacturing and agriculture.
A press release from the Ministry of Foreign Trade of Costa Rica reads:
On Friday in San Jose the first round of negotiations of the Customs Union ended, having made major advances in the fields of food, medicine, manufacturing and agriculture.
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.