The Secretariat for Central American Economic Integration (SIECA) published the 2022 edition of the "Current State of Central American Economic Integration", which presents the most recent data on the bloc made up of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and, most recently, Panama.
The document offers an easy reading of the legal instruments and governance of the economic integration system, as well as the progress of the process, including those relating to the incorporation of Panama and the deep integration process taking place between Guatemala, Honduras and El Salvador.
On that point, Central America has strengthened. It has achieved a sustained decrease in tiempo at the border crossing, from 11 hours to 6 minutes on average, as well as the increase in operations bilateral agreements between Guatemala and Honduras by 24%. In addition, it has approved the Roadmap for the incorporation of El Salvador into the process. And, in an unprecedented effort, the region has expanded knowledge of basic regulatory aspects to people with visual disabilities through the special edition in braille.
The publication presents the General data at regional level. The trade of services represented 31% of trade between countries in 2021. Central America exported twice as many services as it imported, concentrating on the transportation and travel sectors.
Regarding the sector of creative goods (design, artistic manufactures and printing), intraregional exports represented 58% of the total and extraregional exports 42% during 2021. The notable destinations were the United States, the Dominican Republic, Mexico and the European Union, in that order.
According to official data, the export of goods was USD 70,278.5 million (25.8% of GDP) and the foreign direct investment (represented a sum of USD 10,745.7 million, 3.9% of the GDP). Central America remains the largest exporter of cardamom and fresh pineapple worldwide, ranks second as the largest exporter of bananas and melons, third as the largest exporter of coffee and is among the 30 largest global exporters of medical instruments, textiles and clothing.
Within achievements of Central American economic integrationSIECA supports the improvement of the free trade zone, maintaining free trade for 99% of goods originating in Central American countries; and advances in the work leading to the elimination of non-tariff barriers or obstacles to intraregional trade and the process of updating the Central American Uniform Customs Code (CAUCA V) and its Regulations (RECAUCA V).
Specifically, the technical-administrative body highlights the progress in Five short-term measures of the Central American Trade Facilitation and Competitiveness Strategy, with an emphasis on Coordinated Border Management. These improvements consist of the Advance Declaration of Goods, Streamlining and Coordination of Immigration Controls, electronic phytosanitary and zoosanitary certificates, Registration by means of radio frequency devices and the use of camera systems at border crossings.
In addition, SIECA highlights the development of First Regional Dispatch Time Study at the border posts of the Pacific Corridor of Central America, which are those with the highest intraregional commercial traffic. This initiative, implemented in July 2021 by the Central American Customs Committee and SIECA, with the support of the World Customs Organization (WCO) and funding from the European Union, provided six national action plans and one regional action plan.
Additionally, it stands out Central American Digital Trade Platform (PDCC), a tool for exchanging documents between Central American authorities for some trade operations. Regarding this commercial modernization, he points out improvements in the customs function (DUCA portal, regional database portal for transporters and radio frequency identification portal) and the deep integration process (Central American Single Declaration and Invoice System, Guatemala-Honduras Amplified Declaration, Immigration Pre-check, electronic transmission of sanitary and phytosanitary certificates, among others). There was also progress in sanitary procedures, information and consultation, and in support of trade.
Finally, the document states that they were executed four cooperation projects in 2021. The cooperating entities were the Spanish Agency for International Development Cooperation (AECID), the Spain-SICA Fund, the Food and Agriculture Organization of the United Nations (FAO), the European Union (EU) and the World Customs Organization (WCO). (Current State of Central American Economic Integration, December 2022)
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