System of Central American Integration

System of Central American Integration

SICA

 

O  V  E  R  V  I  E  W

 

Type of Agreement

Customs Union.

Members

Guatemala, Honduras, Nicaragua, and El Salvador.

Representative Market

27 million people.

Effective Date/Period

April 1993/minimum of 20 years and shall be renewable indefinitely.

Objective

To deal with unfair trade practices, rules of origin and reduction of tariffs for intraregional trade. To establish a unified customs code.

K  E  Y     I  S  S  U  E  S

- EXPORTERS -

Customs Surtaxes

NA.

Single or Various Tariff Reduction Schedules

Single: Article III required immediate free trade. Various: No.

MFN Treatment for Tariffs

Yes.

Sectoral Safeguard: Exchange Rate Movements

No.

- SERVICES-

Temporary Entry of Business Persons, Service Providers/Investors

Yes.

Professional Services

Establishes the harmonization of policies with respect to services in the areas of energy, transportation and telecommunications.

Financial Services

Yes.

Transportation Services

Yes.

Telecommunication Services

No information provided.

-MANUFACTURING/PRODUCTION-

Drawbacks

Exemptions from taxes on the production, sale, or consumption of good exported to another member is not considered an export subsidy.

Duty-free Zones and Cross-Border Assembly Plants

NA.

National Treatment Provisions

Yes: Technical Standards and Plant and Animal Health Standards.

Rules of Origin Requirements

Yes.

This summary is online: http://www.americas.fiu.edu