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).
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 Federation of Chambers and Associations of Exporters of Central America have joined their voices with those of businesses to oppose the tax for Attention to Victims of Traffic Accidents.
The Federation of Chambers and Associations of Exporters of Central America (Fecaxca) believes that the tax affects the competitiveness of a regional market in the process of development.
The regional freight sector has agreed to purchase insurance to protect accident victims.
Prensalibre.com.gt reports that "The government of El Salvador and cargo transport unions in Central America, agreed yesterday in "supporting" a legal reform which alleviates them from the payment of a tax on those who already pay insurance to cover against any accidents, an official said. "
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.
There is a requirement to avoid duplicate collection of customs duties levied on imports in order to meet the provisions of the trade pact with the European Union.
The commissioner of Customs at the Superintendency of Tax Administration (SAT) in Guatemala, Oscar Funes, referred to the commitments made by the region in the signing of the Association Agreement between Central America and the European Union, signed on 29 June.
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.
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.
El Salvador and Guatemala have agreed to accelerate the integration process between the customs offices of both countries, once again returning to the negotiation process.
Guatemala and El Salvador have decided to accelerate the process towards the Customs Union, and in order to achieve this their economic ministers will meet once a month.
De la Torre said that "with these measures we aim to improve processes related to customs and immigration", in an article in Prensalibre.com. "The two countries are committed to the Central American Customs Union, which is why we want to take large steps quickly to achieve the goal."
Foreign Trade Statistics for the period July to September 2011 by the Central American Economic Integration Secretariat.
Central American trade (exports + imports) reached $60,780 million during the first nine months of 2011. This exchange is 21.9% higher than in the same period last year, equivalent in absolute terms to an increase of $10,922.4 million.
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.
This first unification of regulations will benefit the export sector of food and medicine industry.
The signing of the agreement to unify technical regulations will be held next Monday and will then be submitted for review to the countries of the World Trade Organization (WTO).
"The unification of rules prevents companies ... to have the need to arrange export permits for each country in the region," reports the article in Nacion.com.
The World Bank funds will be implemented through the program "Trade Facilitation and Regional Integration."
The technical assistance program to be developed in two years, aims to support regional efforts to facilitate trade and free movement of goods. The funds will be implemented in coordination with the Central American Economic Integration Secretary (SIECA).