Five Central American countries mull negotiations for single FTA with Mexico

2010-08-31

The five Central American countries and Mexico expressed their hope that the negotiation process for a single Free Trade Agreement (FTA) would be completed by October 2011. Guatemalan Ambassador to Mexico Jose Luis Chea expects the single FTA to lower management and trading costs for Mexican companies. Currently the trading of commodities and services between Mexico and Central American countries is governed by three different sets of regulations, affecting the operating profits of small-and-medium enterprises (SMEs). According to Eduardo Ramos-Gómez, head of the moderators’ panel for foreign trade negotiations under Mexico’s Secretary of Economy (SE), many Mexico-based SMEs sell a majority of their products to Central America, therefore the signing of a single FTA between Mexico and Central American countries will not only help Mexican companies explore the Central American markets but also improve regional integration. He cited the example of EU, which registers 75% of intra-regional trade, compared to 20% in Latin America.