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Central American Common Market

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Central American Common Market

Economic alliance and trade organization established in 1960 by El Salvador, Guatemala, Honduras (which seceded for a period from 1969), and Nicaragua; Costa Rica joined in 1962. Panama has observer status in some areas. Although formed to encourage economic development and cooperation between the smaller Central American nations and to attract industrial capital, the CACM has failed to live up to expectations as political and social conflicts have undermined efforts at greater integration and the establishment of a common market. Its offices are in Guatemala City, Guatemala.



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There are, however, lukewarm examples of trade coalitions such as the Central American Common Market established in 1960, the Southern Common Market signed in 1991, and the Andean Community initiated in 1997 which have all failed to show a consistent string of success stories over time.
NAFTA, Mercosur, Caricom, the Central American Common Market, the Free Trade Area of the Americas, the Andean Community, the Rio Group, the South American Community of Nations (CASA), and now the South American Union (UNASUR), as well as the many Summits of the Americas all found their way to media headlines, albeit mostly for brief periods.
Honduras' tariffs on most goods from outside the Central American Common Market (CACM) are within the zero to 15% range.
 
 
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