The agreement allows the free movement of some 6,200 products, 94% of the trade between the three countries involved, Guatemala, El Salvador and now Honduras.
The three nations have almost 70% of the trade within the region, which in 2008 reached $6.4 billion.
Laprensahan.com published: "The agreement excludes the trade of sugar, unroasted and roasted coffee, petroleum products, alcohol and distilled alcoholic beverages due to the countries’ protective measures, officials said."
The presidents of both countries agreed that when Sovereignty Bridge (on the El Amatillo border) is opened, they will sign the Central American Customs Union.
Sovereignty Bridge is being built 150 kilometers southeast of Tegucigalpa with funding from the Japanese government. It is expected that work will be completed in the short term.
La Prensa Gráfica published on its website: "The Central American Customs Union is a project that was suggested more than 40 years ago, but it was not until 2007 that a document of agreement to get things moving was signed. The countries with the greatest advances are Guatemala and El Salvador."
Of the total exports by the region, 29% goes to the countries that comprise it, reaching $6.403 billion at the end of 2008.
This figure is slightly above the average of 27.7% observed over the past five years.
The major exporters within the region are Guatemala, which has concentrated at least 33% of the average for the past four years, followed by El Salvador with 24%, Costa Rica with 23% and Honduras and Nicaragua added 20%.
Jorge Daboub, president of the Salvadoran Chamber of Commerce, speaks about the benefits of the recent Customs Union between Guatemala and El Salvador.
Urías M. Gamarro, in a phone interview for PrensaLibre.com, asks him: "What are the most important benefits brought by this iniciative?"
"From 2002 to 2008, commerce between both countries has tripled, meaning that this Central American Union efforts are very important when facing the adversity of the world economy. I think it will be very positive for both countries and will force the rest of the countries to integrate."
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." ...
Starting next week both countries will eliminate their borders to allow for the movement of merchandise and people, as a part of the integration process.
Elnuevodiario.com.ni reports: "Both countries "will declare the territories free for the movement of people and merchandise" in order to create a joint customs, said Antonio Saca, in the presence of his counterparts from Central America.
The program which has been in place since last July seeks to provide facilities to exporters and importers at Customs offices in the region.
Elheraldo.hn reports "that it is now in place at Customs at El Amatillo (Honduras and El Salvador) and Guasaule (Honduras and Nicaragua), where the results, according to Alvaro Sarmiento, coordinator of the Sieca Customs and Border Crossing Management project, have been satisfactory in speeding up the shipment of merchandise.
Progress made by the Central American Isthmus regarding integration do no meet the expectations of the European Union.
Although they are aware that the topic depends on the will of the region's governments, they are expecting that the integration and customs union will advance at a rhythm similar to that of negotiations for the agreement of association.
They will ask the Central American Court of Justice to annul CAUCA, which recently came into force on August 25.
Oscar Ramos Valverde, president of the Confederation of Customs Agents of Central America and the Caribbean, informed Prensa Libre that they are to present the case to the Court (which is based in Nicaragua) today, and will asked that resolutions 223-2008 and 224-2008 of the Ministerial Council for Economic Integration (Comierco), which contain the new Uniform Customs Code for Central America (CAUCA IV) and its regulations (Recauca)be annulled.
The Central American Parliament will ask the Central American Court of Justice to suspend the effective date of the Customs Law due to technical errors which may lead to acts of corruption.
Rodolfo Dougherty, a Guatemalan lawmaker, confirmed that only the Central American Court of Justice has the authority to stop the effective date of the Law, which begins on 28 August in Guatemala. In the rest of countries there is still no foreseeable date.
State of the situation november 2007, of the economic integration process of the Central American region, basically refers to the legal institutional framework and insertion of Central
American into international trade.
Intitutional legal scope, Central American trade with the world, Central American free trade zone, Central American customs union and the insertion of Central America into the world economy.