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.
On June 27, business leaders from the region will present their proposals to the presidents for improving and eliminating barriers to intraregional trade.
In the meeting with the presidents from the region scheduled for June 27 in the Dominican Republic, guilds that make up the Federation of Private Entities of Central America, Panama and the Dominican Republic (FEDEPRICAP), will describe once again the obstacles that currently limit the competitiveness of Central American companies.
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.
The government is considering various options for the revival of rail freight in the country.
The Government is considering two options to revive freight railroad in the country. The first is the creation of a state company that would operate under the public-private partnership model and the second is a concession in tranches awarded to different companies.
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 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.
In the past 20 years intraregional trade grew at a rate of 12% per year, indicating an opportunity to deepen integration by finally fully adopting the customs union.
However, experts believe that Central America still faces challenges, specifically in customs matters.
"Exports to Central America have grown over the past 20 years at a rate of 50% more than exports to the rest of the world." "...at an average of 12% annually, and our exports to the world have grown at an average of 8% annually. This underlines the importance of intraregional trade dynamics in this space of Central American integration," said Hugo Beteta, CEO of the subregional site of the Economic Commission for Latin America and the Caribbean (ECLAC) in Mexico.
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.
The fair "Knowing the South: regional exchange of solutions," which aims to present solutions of the South-South Cooperation (SSC) on issues of social and sustainable development will take place from 8th to 10th May in Panama.
From a press release from the United Nations Program for Development:
In recent years the region has advanced in a process of political, economic, social and cultural development.
A Central American Economic Integration Situation Report details legal and institutional frameworks, trade of goods and the Central American Customs Unification process.
The report by the Central American Economic Integration Secretariat among other things refers to:
LEGAL AND INSTITUTIONAL FRAMEWORKS
-General Treaty of Central American Economic Integration.
The Federation of Chambers of Commerce of Central America has met in Managua, to discuss proposals and initiatives to overcome barriers of various kinds to trade on the isthmus.
"The president of the Chamber of Commerce of Nicaragua (CACONIC), Mario Gonzalez, said that employers are looking for strategies to strongly influence their respective governments with the aim of stopping them from blocking regional trade, including the closure of the borders, for political reasons or non-tariff related barriers," reported La Prensa in its online edition.
Central American trade grew by 21.8% during the period January to August 2011, equivalent to $54,249.2 million.
Executive Summary of the Monthly Statistical Bulletin by the Central American Economic Integration Secretariat January-August 2011:
Trade (exports/imports) in Central America showed an increase of 21.8% accumulated during the period January to August 2011, equivalent to U.S. $54249.2 million. This exchange was strongly driven by the growth observed in Honduras (36.4%), Guatemala (23.9%) and El Salvador (22.8%). However, Costa Rica had the greatest weight on the total trade of the region (31.4%), followed by Guatemala (26.8%).
Regional trade grew 6% in the first 6 months of the year compared to the same period of 2009.
According to information from the Central American Economic Integration Department (SIECA), between January and June of this year, trade reached $ 2,844 million, $ 165 million higher than the same period of 2009.
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