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Central American Integration System

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Chapter Summary

Between June 1990 and December 1991 the presidents of Guatemala, Honduras, Nicaragua, and El Salvador met four times with a view towards reviving the Central American Common Market (CACM). In 1996 the CACM adopted new rule of origin requirements that were deemed to be more consistent with the World Trade Organization (WTO) obligations of the Central American countries. Goods that wholly originate within or are made with inputs that wholly originate in Central America are generally entitled to intra-regional free trade treatment. Uniform Central American Customs Code (CAUCA) and its implementing regulations establish extensive customs legislation to be utilized in conjunction with all persons, merchandise, or transportation entities that enter the territory of any of the five countries that participate in the CACM. The Central American Regulation on Unfair Trading Practices and the Safeguard Clause came into effect on March 1, 1993.

Keywords: Central American Common Market (CACM); intra-regional free trade treatment; Uniform Central American Customs Code (CAUCA); World Trade Organization (WTO)



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