January 1 saw the coming into force of a new nomenclature, which extends Tariff System Codes to 10 digits.
The implementation of the Sixth Amendment to the nomenclature of the Tariff Description and Coding System (SAC by its initials in Spanish) and the extension to more digits of codes for goods that are exported and imported was approved by the World Customs Organization (WCO) on June 27, 2014 in order to maintain, in terms of tariff nomenclature, a common language which facilitates international exchange.
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.
Last Friday in San Jose the first round of negotiations of the Customs Union ended, having made major advances in the fields of food, medicine, manufacturing and agriculture.
A press release from the Ministry of Foreign Trade of Costa Rica reads:
On Friday in San Jose the first round of negotiations of the Customs Union ended, having made major advances in the fields of food, medicine, manufacturing and agriculture.
"SIECA is currently under question, ever since the appointment of the Secretary General was made abnormally."
The Federation of Private Entities of CA, Panama and Dominican Republic (FEDEPRICAP), canceled a meeting with the Spanish Organizations Confederation because the meeting was sponsored by the Central American Economic Integration Department (SIECA) as part of a project which manages the Department itself.
"Only when there are real common external tariffs we will be able to take full advantage of the Agreement with the European Union."
It is still important to keep this issue in mind. This was the warning given by the head of the EU mission in El Salvador, Stefano Gatto, who recalls that the full force of the Agreement with the European Union is contingent upon the existence of a common external tariff by all signatory countries.
Seasoned in negotiations with Europe, Central American employers are demanding to political sectors to accelerate the process for the economic integration of the isthmus.
50 years after the signing of the General Treaty of Central American Integration, over 40 million people living in the region still do not enjoy the economic benefits and development opportunities that could effectively be consolidated if Central America would act as a single economic unit, much like the European Union.
The cost of customs procedures adds up to 40% to the price of products traded between countries in the region.
The isthmus is the natural destination for the region’s export producers and a large part of the countries’ economic development depends on the 40 million people that inhabit Central America, forming a unified marketplace.
In addition to customs union, the head of the Secretariat for Central American Economic Integration (SIECA), Yolanda Mayora, highlighted the importance of security costs in intraregional commerce, which according to the World Bank make up 3.7% of the final price.
The Salvadorian National Association of Private Companies received its Honduran counterpart, Cohep, to analyze the commercial situation.
The Honduran Private Business Council (Cohep, acronym in Spanish) will provide a presentation about the situation that Honduras is going through and the impact it is having on the business sector with losses in the millions.
The regional business sector rejected SICA’s decision to block trade with Honduras because it would affect all the economies of the region.
The closing of Honduras’ borders to trade is rejected by the Central American Federation of Agricultural and Agro-Industrial Chambers because it restricts the freedoms of companies, industry, and commerce.
Claudia Acuña writes in Prensalibre.com: “The organization said that this measure is putting Central American families at risk of not getting food by prohibiting the trade of basic goods. Carlos Zuñiga, president of Fecagro, expressed that the political crisis in Honduras should be resolved according to the laws of that country.”
Progress made by the Central American Isthmus regarding integration do no meet the expectations of the European Union.
Although they are aware that the topic depends on the will of the region's governments, they are expecting that the integration and customs union will advance at a rhythm similar to that of negotiations for the agreement of association.
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