The government of Costa Rica suspects that SICA resources are being spent on salaries and consultants, and not fulfilling its corporate objectives.
Upon assuming the presidency Costa Rica pro tempore of the Central American Integration System (SICA), Foreign Minister Enrique Castillo commented on its resource management saying: "You ask for information on some of the monies that are being handled in the SICA, and there is none available.
In the first two months of the year, foreign sales on the isthmus rose by 6.4%, well below the 22.7% registered in the same period in 2011.
According to the System of Central American Economic Integration (Sieca) during this period exports totaled $4.78 billion, with the U.S. being the region’s main buyer.
"Imports summed $8.85 billion, while the trade deficit rose 22% to reach $4.06 billion", reported Laprensa.com.ni
After negotiations to overcome some last minute objections from Nicaragua, Panama has been formally included in the Central American Integration System.
Citing "lack of clarity in the protocol document regarding the exact date, requirements and deadlines to which Panama commits to in order to be integrated into SICA", Nicaragua had objected to Panama’s full integration into the Central American Integration System (SICA).
The canal country's accession will be formalized on 29 June and will accelerate the elimination of tariffs and regional trade facilitation.
The incorporation of Panama to the Secretary for Economic Integration of Central America (Sieca), will allow Central American countries to sign the Association Agreement with the European Union (EU).
"The EU required Panama’s integration into the agreement, it is a country with an economic growth of 10%, a canal through which 5% of world trade passes, it has a robust banking system and a free zone situated in the Atlantic city of Colon ", reported Laprensa.com.ni
Panama's exports grew by about 33%, those of Nicaragua by 30% , Guatemala’s by 27%, Honduras’ by 26%, El Salvador’s by 18% and Costa Rica’s by 10%.
The Central American countries together exported goods worth $52 billion in 2011, 22.3% more than in 2010, reported the Secretariat of Central American Economic Integration (Sieca) this week.
The best sellers were coffee (14%), hybrid integrated circuits (6%) and bananas (6%), reported the AFP and Nacion.com.
Panama's accession will be formalized in late June and will accelerate the elimination of tariffs and facilitate regional trade.
In Costa Rica and other Central American countries there are expectations over Panama's accession to the Central American Economic Integration Secretariat, which will be signed in Tegucigalpa on June 29, and the regional benefits it will bring.
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.
A regional program will support the quality and application of sanitary and phytosanitary measures.
In order to improve access for Central American products to markets the creation of a standardized and internationally recognized Regional System for Quality and Application of SPS Measures has been proposed.
A communiqué from the Central American Economic Integration Secretariat reads:
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.
Central American representatives have approved various technical regulations for the regional customs union.
Among the regulations adopted are those relating to labeling and product registration.
Also under discussion in the meeting, was the process of Panama’s incorporation into the Central American Economic Integration Secretariat (SIEC), a requirement that Panama needs to meet in order to take part of the Association Agreement with the European Union.
In the first six months of the year trade between countries in the region increased by 21.8%.
Data from the Central American Economic Integration Secretariat (SIEC in Spanish) shows that total exports across the isthmus in that period amounted to $14,645 million.
"Regarding imports, the region purchased goods and services amounting to $26,159 million in the first half of this year, 22.8% more than in 2010, according to SIEC
Authorities have signed a work plan for the second half of the year, which will focus on trade.
The incorporation of Panama into the Central American economic integration subsystem and the regional private sector’s improvement in competitiveness were some of the topics discussed at the Ministers of Economic Integration meeting, held recently in Guatemala.
In the first quarter, sales between the Central American countries increased by 21.3% compared to the same period in 2010.
Data from the Central American Economic Integration Secretariat (SIEC) shows that Honduras increased by 52% , Costa Rica 24.3%, El Salvador and Guatemala 18%, and Nicaragua 0.6%.
For the same period the total exports from the Isthmus (in worldwide sales) increased by 20.6%, totaling $7,254 million.
The Federation of Central American Chambers of Commerce (FECAMCO in Spanish) demands that a new SIECA head be appointed in line with the relevant institutional guidelines.
A press release by FECAMCO states that, "the institutional foundations of Central American integration have been weakened by the failure of proper legal procedures to be followed in the appointment of the head of the Secretariat of Central American Economic Integration (SIECA)".