Guatemala and Honduras announce a free trade area
The First Encounter of the Prosperity Partnership of the North Triangle (APP) was held in the Honduran Caribbean. In it, the presidents of Honduras, Juan Orlando Hernandez and the president of Guatemala, Otto Pérez Molina, and El Salvador, Salvador Sanchez Ceren, met with representatives from various sectors of each country.
At the meeting, which sought to lay the groundwork for what would be the implementation of a plan promoted by the US government to tackle drug trafficking in Central America, the governments of Guatemala and Honduras announced they would be uniting their customs, the first step to create a free trade area between both countries.
Starting December 1, people and products will have free passage across the borders of these countries, said Perez Molina, who added that they expected El Salvador to join the FTA soon. He also said the initiative was historic for Central America.
The Partnership’s Plan for the North Triangle’s Prosperity
The framework document will defines what will take place during 2015 for the unification of customs, which will be effective starting January 1, 2016, so that the land border separating Honduras and Guatemala disappears in 2016 and trade between both countries accelerates.
The Minister of Economic Development of Honduras, Alden Rivera, said: "We hope this stimulates growth and diversification of the productive sectors and the creation of a customs territorial space representing 23% of the territory in Central America and an important part of the region’s GDP."
The meeting, which had a short agenda, was attended by representatives of the Inter-American Development Bank and the Business Council of Latin America, who gave their support to the initiatives to consolidate a regional bloc, not only against drug trafficking but also so it becomes an economic power that benefits the markets of each country in it.
The president of Honduras also announced the implementation of 9 logistics corridors that will speed up trade between the member countries: Puerto Quetzal, Atlantico, Pacifico, Acajutla and Agricola. According to him, they will need to develop road infrastructure and coordinate security in them so that the conditions for trade and transport are optimal.
The private sector expressed their agreement with the APP when Camilo Atala, president of the CEAL in Honduras said: "Today we are taking an important step for social and economic development, and to improve the quality of life of thirty million Central Americans. This initiative seeks to promote investment, human development, strengthen institutions and security."
Source: panampost.com