The Central American Economic Integration Program was formally established on August 27, 1952, when the Ministers of the five States together formed a Committee for Economic Cooperation of the Central American Isthmus, which held its first meeting on that occasion. The basic instrument of the program, which envisages the creation of a Central American Common Market (CACM), is the General Treaty of Central American Economic Integration, which was signed by El Salvador, Guatemala, Honduras, and Nicaragua on December 13, 1960 and became effective in June 1961 after deposit of the required instruments of ratification. Costa Rica acceded to the Treaty on July 23, 1962. The General Treaty incorporates the Agreement on the Regime for Central American Integration Industries, signed on June 10, 1958. The General Treaty also takes into account and keeps in force several previous agreements: the Multilateral Treaty of Central American Free Trade and Economic Integration, concluded June 10, 1958; the Central American Agreement on the Equalization of Import Duties and Charges and its accompanying Protocol on Central American Preferential Tariff, adopted September 1, 1959; and six additional Protocols signed after that time but not ratified by all five countries. While not affecting the validity of these agreements, the General Treaty takes precedence over them with respect to the Contracting Parties.

A number of Protocols to the General Treaty have been signed by member countries, and ratified by all or some of them, including the Protocol signed on December 13, 1963 which contains the Standard Central American Tariff Code (CAUCA). On March 23, 1976, a Draft Treaty to replace the 1960 General Treaty was presented to the Presidents of the member countries. The Draft Treaty proposes the creation of a Central American Economic and Social Community to replace the planned Central American Common Market.

In December 1984, a new Convention on Central American Tariff and Customs Regulations was signed, adopting the trade classification nomenclature of the Customs Cooperation Council in Brussels (the Brussels Tariff Nomenclature (BTN)). The Convention was signed by plenipotentiaries of the governments of Costa Rica, El Salvador, Guatemala, and Nicaragua, and came into force in these countries on September 17, 1985. At the first meeting of the Central American Tariff and Customs Council, on September 17, 1985, the Tariff annexed to the Convention was approved. The Treaty remains open for accession to its provisions by any Central American state that is not an original signatory. On January 1, 1993, the new Central American Tariff System, based on the International Harmonized System, came into force. On October 29, 1993, the Protocol to the General Treaty on Central American Economic Integration, signed in Managua, Nicaragua, on December 13, 1960, was signed in Guatemala City and will be called the Guatemala Protocol.

COMPOSITION

5 member countries: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua. Panama is an observer in various mechanisms of the integration.

STRUCTURE

The general administration is carried out by three bodies established by the General Treaty: the Meeting of Ministers Responsible for Central American Economic Integration, composed of the Ministers of Economy or of External Commerce of the member governments, which directs and coordinates economic integration; the Forum of Vice-Ministers of Economy, composed of one delegate and alternate from each member country which applies and administers the General Treaty; and the Secretariat, which serves the other bodies. The Secretary-General is elected for a three-year term by the Meeting of Ministers Responsible for Central American Economic Integration. Other important forums are the Meetings of Vice-Ministers responsible for PEC, the Meeting of Transportation Ministers (REMITRAM) and the meetings for Directors of Integration and Customs. Meetings of the Economic Cabinet have been held since 1991.

GENERAL PUBLICATIONS