Unless intra-regional trade in chemical contents and residues, micronutrients and food preparations is regulated in a balanced manner, trade relations in Central America could face obstacles in the future.
Trade between Central American countries is essential, since a considerable proportion of foreign sales by local companies are destined for other markets in the region.
Due to the tropical storms Eta and Iota, severe damage has been reported to the road network in Central American countries, and some border posts in Guatemala, Honduras and El Salvador have been suspended.
Since November 17, operations were suspended at the El Corinto, El Florido and Aguas Calientes border posts. These areas, shared by Guatemala and Honduras, are not operational, according to the Guatemalan Superintendence of Tax Administration (SAT).
As of October 1st, Guatemala and Honduras will begin operating three Peripheral Customs Offices, areas that will simplify procedures and allow free community mobility between both countries.
Guatemalan and Honduran taxpayers who make definitive imports to each State Party will be the ones to benefit from the implementation of this type of customs, since the goods imported under this modality will enjoy free mobility.
In response to the restrictions applied to Costa Rican pilots, who are prevented from leaving with cargo from Panama, since July 14 Costa Rica has not allowed trucks with Panamanian plates to leave carrying goods.
Because of the spread of covid-19, Costa Rica was the first country to impose restrictions on cargo transport units from other countries in the region. Faced with this decision taken unilaterally, governments applied reciprocal measures.
Arguing that it is not allowed to leave with cargo from the rest of the countries in the region, Costa Rican transporters are protesting at the border between Costa Rica and Panama, and are asking the authorities to apply reciprocal measures.
The discontent of Costa Rican businessmen could hinder the transit of goods in Central America, and although as of midday on July 7 no blockades of cargo transport had been reported, the sector does not rule out extending the protests.
Because Costa Rica has imposed several restrictions on the movement of goods entering its territory, the Guatemalan government announced that it will apply reciprocal measures to Costa Rican transporters from June 9.
From three to five days, the time that Costa Rican carriers have available to stay in Nicaraguan territory, to unload goods or for regional transit, was increased.
After several days of tension generated by the restrictions imposed by Costa Rica on the transport of cargo from neighboring countries, Central American authorities reached an agreement and opened the way at the border of Penas Blancas.
After Costa Rica imposed several restrictions on the movement of cargo entering its territory, the Panamanian government limited the permit for Costa Rican carriers to remain in the country to 72 hours.
The transit of goods in the region is becoming more complicated every day, since it is argued that the propagation of the covid-19 is being mitigated.
After the Costa Rican government decided to impose several restrictions on heavy transport units entering its territory, the Honduran government decided to grant Costa Rican pilots only 72 hours in the country.
After two years of non-operation, El Salvador's government and business associations agreed to reactivate the institution dedicated to decision-making on customs matters and trade agreements.
The private sector was represented by the Presidents and Executive Directors of the guilds ASI, COEXPORT, CAMARASAL, CAMAGRO, AMCHAM, CAMTEX and ADES, which are part of the Inter-union Commission for Trade Facilitation (CIFACIL) and participate with voice and vote within the Committee, informed the Salvadoran government.
Because the implementation of the Central American Single Declaration continues to generate problems in customs in the region, the contingency plan for DUCA F and DUCA was extended until June 27.
"If you use the Contingency Plan, we suggest that you make sure you arrive at the destination country with the DUCA F and DUCA T duly processed and the supporting documents," reported the Guatemalan Association of Exporters.
Since there are still difficulties arising from the implementation of the Single Central American Declaration, the Contingency Plan for DUCA F and DUCA T was extended until 17 June.
Central American customs authorities agree to maintain in force the Contingency Plan for DUCA F and DUCA T, until June 17, 2019, at 23:59 hours. If the Contingency Plan is used, we suggest that you make sure that you arrive at the destination country with the DUCA F and DUCA T duly processed and the supporting documents," explains a statement from Agexport. See full document.
Until May 20, the validity of the regional contingency plan was extended to customs, which was activated because of the difficulties generated by the use of the Central American Single Declaration.
Since May 7, when the Single Central American Declaration (DUCA) was implemented at the regional level, the situation in customs has been complicated, because of multiple difficulties reported in the import and export processes arising from the implementation of the new system.
Because the entry into force of the Central American Single Declaration has generated delays in the import and export processes, a contingency plan will be implemented at all customs offices in the region.
By agreement of the Council of Ministers of Economic Integration (COMIECO), on May 7 the Single Central American Declaration (DUCA) was implemented at the regional level, a situation that has generated many difficulties arising from the implementation of the new system in the import and export processes.