TRADE-CENTRAL AMERICA:
Integration Bogged Down Up to
Its Axles
José Eduardo Mora
SAN JOSE, (IPS) - Integration is one of the most pressing challenges
facing the seven nations of Central America, but the governments in the
region merely declare their good intentions while showing a clear lack
of political will to pull the process out of the current stagnation, say
experts.
The Council of Ministers for Central American Economic Integration (COMIECO),
made up of the economy ministers from the seven countries, does not plan
to complete negotiations on the customs union -- which involves 93
percent of products traded in the region, but excludes the most
sensitive sectors, like sugar and steel -- until December.
The next summit, to be held in late
August in El Salvador -- at a still unspecified date -- looks like
it will offer the best chance to discuss concrete reforms of bodies
like the Central American Parliament (PARLACEN), created in 1987,
and the Central American Integration System (SICA) and the Central
American Court of Justice (CACJ), both established in 1991.
Efforts towards integration among Belize, Costa Rica, El Salvador,
Guatemala, Honduras, Nicaragua and Panama have been at a standstill
since 1998, when hurricane Mitch devastated a large part of the
region and forced the governments to concentrate on their own
national agendas to the detriment of regional issues, Luis Guillermo
Sol¡s, with the Foundation for Peace and Democracy, told IPS.
Francisco Garc¡a, of the Guatemala-based Central American Institute
of Political Studies (INCEP), and Nicaraguan sociologist and
economist Cirilo Otero also agreed that a review of the Central
American integration process is urgently needed at a time when the
world is ruled by large alliances and trade blocs.
"This process directly depends on the political will of the
governments and of the sectors that could help promote integration.
At present I think political will is weak, with the presidents
saying one thing in their speeches while failing to take the
decisions that should back up their statements,'' said Sol¡s.
Otero expressed little optimism regarding the outlook for Central
American integration, adding that, as a final complication to
relations, the free trade agreement negotiated with the United
States by five of the nations "only rubbed more salt in the wound."
Guatemala, Honduras, Nicaragua and El Salvador signed a free trade
deal with Washington in December 2003. But the fifth country
involved in the talks, Costa Rica, only did so a month later,
highlighting the important differences among the Central American
nations on sensitive issues like textile, sugar and chicken quotas.
Furthermore, the treaty has not yet been ratified by the respective
parliaments.
Thus, once again, "each country showed their interest in stressing
their individuality," despite the fact that according to the shared
rhetoric, the countries engaged in the negotiations on a regional
basis, said Otero.
In Sol¡s's view, meanwhile, the San Salvador summit -- where
integration mechanisms are to be reviewed following pressure from
Guatemala and El Salvador -- must adopt firm decisions, because
otherwise the indecision which has characterised the process since
1998 will only continue.
"If the best use is not made of the meeting, I think it will be
difficult for the issue of integration to be taken up seriously
again. The summit cannot end with another content-free reform. The
system cannot stand it any longer," he said.
Sol¡s argued that the governments and business and civil sectors
must increase awareness of the overwhelming importance of
integration for the region, as this is the way forward.
He underscored the contribution of the European Union (EU), which
has been the leading partner for Central America in building a
regional bloc, earmarking some 60 million euros to that effect over
the next few years.
But "despite the enormous contribution from the EU -- which is the
most perfect integration experience ever -- if there is no internal
interest in each one of our countries, only minimal advances will be
made," said Sol¡s.
Civil society must demand more from the governments with respect to
regional unity, because even sectors like business will reap great
benefits, he added.
"In the case of Costa Rica, for example, Nicaragua is its second
biggest trade partner," while the United States takes 54 percent of
its exports.
Meanwhile, Garc¡a pointed out that Central America is still lagging
in the global trend towards the formation of large trade blocs, like
the EU, the North American Free Trade Agreement (NAFTA - Canada,
Mexico and the United States), the Southern Common Market (MERCOSUR
- Argentina, Brazil, Paraguay and Uruguay) and regional groupings in
Asia.
"There is a quest to concentrate production and capital and Central
America cannot isolate itself from that tendency," said the
Guatemalan analyst.
He added that the institutions charged with strengthening
integration, like SICA and the CSJ -- in which only El Salvador,
Guatemala, Honduras and Nicaragua participate fully -- and
especially PARLACEN, are in need of profound change.
"For instance, the resolutions of the Central American Parliament
are not binding, whereby the national congresses take no notice of
them. That would be a good place to start, in order for the
institution to have a raison d'etre," he argued.
Sol¡s said something similar, stating that while PARLACEN receives
large contributions from the governments, its decisions "have no
impact." Accusations of drug trafficking and corruption levelled at
PARLACEN members some months ago further tarnished its already
battered image.
PARLACEN is currently made up of El Salvador, Guatemala, Honduras
and Nicaragua. Costa Rica, which is listed as a member, has
repeatedly refused to appoint any parliamentary deputies.
As a result, one of the proposals suggested for the San Salvador
summit is to significantly reduce the size of the regional
parliament, and some propose that each nation's representatives
should be deputies from their national parliaments.
For his part, Garc¡a believes that reform of the key integration
institutions needs to be accompanied by advances towards a customs
union, which would represent a revolution in intra-regional trade.
From Otero's point of view, each country is seeking to use its
individual strengths to its own advantage, which bogs down
integration efforts -- an issue that has not yet been raised as a
point of concern.
"Efforts by the presidents are still very weak and it is clear that
this is a political issue," he said.
Otero added that the shadow that the United States has historically
cast over the region is a negative element, unlike what is happening
with the EU, which is providing more constructive pro-integration
support.
Moreover, he criticised SICA "for not calling on civil society to
express its views with respect to integration."
"It basically concerns itself with the bureaucratic actors in the
process and excludes social agents, who play a decisive role," he
said.
For all three analysts, the current state of Central American
integration to some extent reflects what has historically occurred
in the region.
The first attempt at union in the isthmus came in 1824 with the
creation of the Central American Federation, and since then a great
many agreements have been reached, all marked by complete failure on
the integration front.
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