With the publication in the official newspaper the Framework Convention for the Establishment of the Customs Union is now in effect.
The agreement was approved by Congress on September 9th, 2010.
Deputy Economy Minister for Foreign Trade and Integration, Raul Trejo, told Sigloxxi.com, "We are legally fulfilling a commitment made by all countries in the region” explaining that it has been ratified by almost all nations with a pending process in Costa Rica."
With the publication in the official newspaper, Guatemala complies with the legal framework to implement the customs union.
Raul Trejo Esquivel, Deputy Minister of Economy, referring to such ratification, stated "is the legal basis to remove all restrictions on regional trade and strengthens the union process."
Prensalibre.com writes, "this ratification means that if a third country cargo enters one of the ports in Guatemala and is destined for another Central American country, the fees will be paid in the country and the cargo will be free to transit across Central America."
In the process to form a Customs Union, authorities from both countries are analyzing a joint customs office in the Guasaule area.
They would be located in the same territory and share the same administrative offices to receive and dispatch merchandise.
This year, both countries started a customs modernization process which will improve some procedures to control imports, cut red-tape and increase the flow of trade between both countries.
In the context of negotiations on the Central American Customs Union some changes have been agreed that will benefit farmers.
The text of the agreement, which will soon come into force in the countries in the region, certain unnecessary technical requirements have been removed that made the fertilizer register bureaucratic.
"In addition, regulations were incorporated that were needed to prevent soil amendments from being registered as fertilizers. Finally, concepts and parameters were specified to classify low concentration formulas, which do little to improve the region's productivity and are now being sold in various Central American countries," reports La Prensa Libre in its web portal.
Representatives of the Central American countries involved have made progress in harmonizing customs tariffs.
Agreements were achieved relating to the customs classification of various products including LED lights, van type vehicles with one row of seats and washer-dryer machines).
La Prensa Libre reports that, "The food and drink category discussions also finalized 'Central America's Technical Regulations for the Use of Food Additives' but one country's review is still pending. This regulation is necessary in order to establish mutual recognition of the health standards for food processing".
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.
Representatives from both countries’ economy ministries are discussing health measures and commercial aspects.
Mario Hernández, Salvadoran Trade Minister agrees with his Guatemalan counterpart, Raúl Trejo, in that this will be a long and complex process. They expect to lay the foundations of this initiative within six months.
Hernández explained to newspaper Laprensagrafica.com some measures that will be undertaken soon.
Next Friday Nicaragua will join the Customs Union, whose current members are El Salvador, Guatemala and Honduras.
Haroldo Rodas, Guatemalan Chancellor, remarked that Nicaragua's adhesion to the Union will foster trade between the countries of the region, and improve the environment for negotiating the Association Agreement with the European Union.
Newspaper "El Nuevo Diario" published: "Costa Rica is the only country not joining, even though it subscribed the framework agreement and now 'has to take a step towards full implementation', stated Rodas".
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.
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."
With an increase of 16% annually over the past five years, trade between the countries of Central America is the real force behind regional integration.
Despite the comings and goings with which governments have handled the process of integration, intra-regional trade continually progresses. In recent years, the numbers in the exchange of goods and services between the countries of the region have doubled, surpassing $6.3 billion per year.
The European Union again noted its interest in an integrated Central America where there is a free flow of investments, goods and services.
The seventh round of negotiations of the Association Agreement between the European Union and Central America opened in Honduras with the explicit indication by Petros Mavromichalis, political negotiator of the EU that "regional integration remains a subject of great importance for us.
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.