  
 WORLD TRADE  
ORGANIZATION  WT/REG93/R/B/2 
G/L/696 6 October 2004 
 
 
(04-4176) 
Committee on Regional Trade Agreements Original:   Spanish 
  
 
GENERAL TREATY ON CENTRAL AMERICAN ECONOMIC INTEGRATION 
 
Biennial Report on the Operation of the Agreement
 
 
Communication from the Parties 
 
  The following communication, dated 20 September 2004, is being circulated at the request of the delegation of El Salvador, on behalf of the Member States of the Central American Common 
Market.  
 
_______________ 
 
 1. This report covers the period from 1 January 1 999 to 31 December 2003.  The previous report 
submitted by the parties on the operation of the General Treaty on Central American Economic 
Integration between Costa Rica, El Salvador, Gu atemala, Honduras and Nicaragua was circulated as 
WTO document WT/REG93/R/B/1 of 27 March 2000. 
I. BACKGROUND INFORMATION ON THE AGREEMENT 
1. Membership and dates of signature,  ratification and entry into force 
2. The General Treaty on Central American  Economic Integration was signed on 
13 December 1960 by El Salvador, Guatemala, Honduras and Nicaragua.   The instruments of 
ratification were deposited on 5, 8 and 26 May 1961 by Guatemala, El Salvador and Nicaragua, 
respectively, and on 27 April 1962 by Honduras.  It came into force on 4 June 1961 for the first three States and on 27 April 1962 for Honduras.  Costa Rica acceded on 23 July 1962 and deposited its 
instrument of ratification on 23 September 1963, whic h is when the Treaty came into force for that 
country. 
3. On 29 October 1993 the General Treaty was amende d through the signing of the Protocol to 
the General Treaty on Central American Economic  Integration, also known as the "Guatemala 
Protocol". 
4. The Guatemala Protocol brought the General Treaty into line with the new institutional 
framework of the regional integration process,  under which the Central American Economic 
Integration Subsystem was subsequently establis hed as a component of the Central American 
Integration System. 
5. The above-mentioned Guatemala Protocol was si gned by the five Member States of the 
General Treaty and by Panama;  however, it has on ly been ratified and deposited by Costa Rica, 
El Salvador, Guatemala, Honduras and Nicaragua .  It entered into force on 17 August 1995 for 
El Salvador, Honduras and Nicaragua;  on 6 Ma y 1996 for Guatemala;  and on 19 May 1997 for 
Costa Rica, this being the date on which it came in to full effect for the five States Parties to the WT/REG93/R/B/2 
G/L/696 Page 2 
 
 General Treaty.  An amendment to Article 38 of the Guatemala Protocol was signed on 
27 February 2002 and came into force on 17 May 2003. 
6. The above-mentioned amendment provides that the Council of Ministers for Central 
American Economic Integration (COMIECO), the ma in decision-making body for the integration 
process, shall be composed of the Ministers res ponsible for matters pertaining to regional economic 
integration. 
2. Type of Agreement 
7. The General Treaty on Central American Economic  Integration, like the Guatemala Protocol, 
establishes the commitment to Ce ntral American economic union, including an improved free trade 
area and the establishment of a customs uni on between the territories of Members. 
3. Scope 
8. From the date of its entry into force, the Ge neral Treaty accorded free trade treatment to all 
products originating in the Member States, the onl y limitations being those included in the special 
regimes referred to in Annex A of the General Trea ty.  The subsequent Guatemala Protocol reiterated 
the mandate set out in the General Treaty, which wa s to hold negotiations for the elimination of such 
limitations, with a view to incorporating all produc ts into the Central American free trade system. 
9. Pursuant to the above-mentioned mandate, during the period from 1 January 1999 to 
December 2003, the following products were inco rporated into intra-regional free trade: 
 - Petroleum products (tariff headings 27.10;  27.12;  27.13 and 27.15);  existing 
exceptions to free trade between Guatemala,  El Salvador, Nicaragua and Costa Rica 
were eliminated as of 18 October 1999.  Similarly, all exceptions to free trade 
between El Salvador – Honduras, Nicaragua – Honduras, Costa Rica – Honduras and Guatemala – Honduras were eliminated for mineral solvents under tariff subheading 2710.00.1 and asphalt under subheading 2713.20. 00 (petroleum bitumen), as well as 
for tariff headings 27.12 and 27.13.  
 
 - Ethyl alcohol, denatured or undenatured (tariff heading 22.07;  22008.90.10);  
existing exceptions to free trade between El Salvador - Nicaragua were eliminated as of 1 January 2003.  Similarly, it was ag reed that from 1 January 2004 existing 
restrictions on trade between Guatemala - El Salvador would also be eliminated. 
 
 - Roasted coffee (tariff subheading 0901.2);   existing exceptions to free trade between 
Guatemala - Nicaragua and between El Salvador - Nicaragua were eliminated as of 1 January 2003. 
  - Wheat flour (tariff heading 1101.00.00);  existing exceptions to free trade between 
Guatemala - El Salvador, Guatemala - Honduras, Guatemala - Nicaragua, 
Guatemala - Costa Rica, El Salvador - H onduras and El Salvador - Nicaragua were 
eliminated as of 1 January 2003. 
 10. As at 31 December 2003, Annex A of the Gene ral Treaty provided for limitations on intra-
regional free trade common to the five States Parties, with regard to unroasted coffee and cane sugar.  
Certain bilateral limitations between the Parti es were also applied to the following products: 
 - Roasted coffee; 
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 G/L/696 
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  - Ethyl alcohol, denatured or undenatured;   - Petroleum products;  
 - Distilled alcoholic beverages. 
 
4. Trade data 
11. Interested delegations may obtain detailed statis tical data on trade between the Parties and on 
trade with third parties from the WTO Secretariat (office 1174).  
II. TRADE PROVISIONS  
 
1. Import restrictions 
12. There are no quantitative restrictions on trade between the Parties. 
 1.1 Duties and charges 
 
13. In accordance with the provisions of Article III of  the General Treaty, all products originating 
in the Member States may be freely traded, except for those included in Annex A. 
14. As at 31 December 2003, Annex A of the Ge neral Treaty on Central American Economic 
Integration provided for import tariffs on the followi ng products in intra-Central American trade: 
Limitations on free trade common to the five countries: 
 
0901.1 Coffee, not roasted To be made subject to import duties 
 
Bilateral limitations on free trade 
 GUATEMALA - HONDURAS 
0901.2 Roasted coffee To be made subject to import duties 
22.08 Distilled alcoholic beverages To be made subject to import duties 
27.10 
27.12 27.13 
27.15 
 
 Petroleum products. 
Exception is made for mineral solvents included 
under subheading 2710.11, 
and asphalt under subheading 2713.20.00 (petroleum bitumen), which are to be accorded free trade 
treatment between the States 
Parties. To be made subject to import duties 
 
GUATEMALA – COSTA RICA 
0901.2 Roasted coffee To be made subject to import duties WT/REG93/R/B/2 
G/L/696 Page 4 
 
  EL SALVADOR – HONDURAS 
0901.2 Roasted coffee To be made subject to import duties 
22.08, except 2208.90.10 Distilled alcoholic beve rages To be made subject to import duties 
27.10 
27.12 
27.13 
27.15 Petroleum products. 
Exception is made for mineral solvents included 
under subheading 2710.11, 
and asphalt under subheading 2713.20.00 (petroleum bitumen), which are to be accorded free trade 
treatment between the States 
Parties. To be made subject to import duties 
 
EL SALVADOR – COSTA RICA 
0901.2 Roasted coffee To be made  subject to import duties 
 
HONDURAS - NICARAGUA 
0901.2 Roasted coffee To be made subject to import duties 
22.08 Distilled alcoholic beverages To be made subject to import duties 
27.10 
27.12 
27.13 
27.15 Petroleum products. 
Exception is made for 
mineral solvents included 
under subheading 2710.11, and asphalt under subheading 2713.20.00 (petroleum bitumen), which 
are to be accorded free trade 
treatment between the States Parties. To be made subject to import duties 
 
HONDURAS – COSTA RICA 
0901.2 Roasted coffee To be made subject to import duties 
22.08, except 2208.90.10 Distilled alcoholic beve rages To be made subject to import duties 
27.10 
27.12 27.13 27.15 Petroleum products. 
Exception is made for mineral solvents included under subheading 2710.11, and asphalt under 
subheading 2713.20.00  To be made subject to import duties 
 
 (petroleum bitumen), which 
are to be accorded free trade 
treatment between the States Parties    WT/REG93/R/B/2 
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 NICARAGUA – COSTA RICA 
0901.2 Roasted coffee To be made subject to import 
duties 
 15. The countries are continuing to work on a set of measures that will enable the products 
contained in the Annex to be liberalized in the future. 
 1.2 Quantitative restrictions 
 
16. In accordance with the provisions of Article III of  the General Treaty, all products originating 
in the Member States may be freely traded, except for those included in Annex A. 
17. As at 31 December 2003, Annex A of the Ge neral Treaty on Central American Economic 
Integration provided, with respect to intra-Central American trade, that import controls or licences 
would apply to the following products: 
Limitations on free trade common to the five countries: 
 
17.01 Cane sugar, refined or  unrefined Import controls 
1701.11.00 Cane Import controls 
1701.91.00 Containing added flavouring or 
colouring matter Import controls 
1701.99.00 Other Import controls 
 
Bilateral limitations on free trade 
 
GUATEMALA – COSTA RICA 
22.07 
2208.90.10 Ethyl alcohol, denatured or 
undenatured Import controls 
 
GUATEMALA – EL SALVADOR 
22.07 
2208.90.10 Ethyl alcohol, denatured or 
undenatured Import controls 
 
EL SALVADOR – HONDURAS 
22.07 
2208.90.10 Ethyl alcohol, denatured or 
undenatured Import controls 
 
EL SALVADOR – COSTA RICA 
22.07 
2208.90.10 Ethyl alcohol, denatured or 
undenatured Import controls 
 
HONDURAS – COSTA RICA 
22.07 
2208.90.10 Ethyl alcohol, denatured or 
undenatured Import controls 
 
NICARAGUA – COSTA RICA 
22.07 
2208.90.10 Ethyl alcohol, denatured or 
undenatured Import controls 
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G/L/696 Page 6 
 
 18. The countries are continuing to work on a set of measures that will enable the products 
contained in the Annex to be liberalized in the future. 
 1.3 Common external tariff 
 
19. In 1985 the Convention on the Central American  Tariff and Customs Regime came into force, 
Annex A of which is the Central American Import Ta riff.  This instrument contains the nomenclature 
for the official classification of goods capable of bein g imported to the territories of the States Parties, 
together with the import duty rates and the rules governing the implementation of its provisions. 
20. In 1995, the Council of Ministers for Economic In tegration and Regional Development, in its 
Resolution No. 13-95, established as an immediate objective of Central American tariff policy a target 
of 0 per cent for raw materials and 15 per cent for finished products, with intermediate levels of 
5 per cent and 10 per cent for raw materials and inputs produced in the region.  It also authorized the 
Parties to gradually reduce the tariff at their di scretion, in accordance with their particular 
circumstances, as from 1 January 1996. 
21. Subsequently, the Council of Ministers adopted Resolution No. 26-96 of 22 May 1996, 
establishing the following general paramete rs for the review of tariff policy: 
 - raw materials, intermediate goods an d capital goods not produced domestically:  
0 per cent; 
  - raw materials produced in Central America:  5 per cent; 
 
 - intermediate goods and capital goods produced  in Central America:  10 per cent;  and 
  - final consumer goods:  15 per cent.  
22. As a result of the tariff policy review, at 31  December 2003 the Central American Tariff 
consisted of a tariff universe of 6,194 lines, 2,863 of which were subject to a zero tariff.  At that date, 
there were 5,751 lines with uniform tariffs, which was equivalent to 92 per cent of the harmonized 
tariff.  These data do not include the automotive sector, which has been dealt with separately. 
23. Tariff levels are currently set at 0 per cent, 5 per cent, 10 per cent and 15 per cent in 
accordance with the tariff policy;  however, ta riffs higher than 15 per cent apply to products 
considered to be highly sensitive for the region. 
24. Other noteworthy developments affecting the common external tariff during the period from 
1 January 1999 to 31 December 2003 include the following:  
- By virtue of amendments to the Ce ntral American Import Tariff approved by 
Central American Tariff and Customs Counc il Resolution No. 89–002, the results of 
the third revision of the Harmonized Commodity Description and Coding System 
Nomenclature, and the import tariff syst em (DAI) which entered into force on 
1 October 2002, are incorporated in the Central American Tariff System (SAC). 
 - In 2002, Nicaragua ceased to  apply the Temporary Protection Tariff (ATP) in force 
since July 1994, in order to step up the reconstruction, rehabilitation and 
strengthening of its productive and fina ncial capacity.  The ATP consisted of a 
variable surcharge, subject to a reduction sch edule, on imports of  780 tariff items.  It 
had been authorized by the Council of Ministers Resolution No. 3-93 (CE - IEX), on the basis of Transitional Article V of the Guatemala Protocol.  WT/REG93/R/B/2 
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 - Costa Rican tax on customs value Law No. 6946 of 1984 established a tax of 
1 per cent on customs value, which currently  forms part of the Costa Rican tariff 
system and is included in Costa Rica's Schedule of Concessions under the Uruguay 
Round. 
 
2. Export restrictions 
25. The Central American countries do not apply export restrictions. 
3. Rules of origin 
26. The origin of goods is determined, and th e corresponding certification and verification 
procedures are carried out, pursuant to the Central Am erican Regulations on Orig in of Goods, in force 
since 1998.  The scope of application of these Regula tions is limited to trade in goods governed by the 
legal instruments of Central Am erican economic integration. 
27. The rules of origin included in the Regulations are based on the general principle of change of 
tariff classification, which is supplemented, when necessary, by other requireme nts, as specified in the 
Regulations or the Annex thereto. 
28. During the period of time covered by this notif ication, the Council of Ministers for Economic 
Integration issued four resolutions
1 amending rules of origin included in the Regulations.  
Resolution No. 90-2002 of 23 August 2002, adapting rules of origin to the third revision of the Harmonized Commodity Description and Coding System. 
4. Standards 
29. Within the framework of the negotiations on the formation of a customs union in Central 
America, significant advances have been made in the field of common rules applicable to imports both from within the region and from third countries. 
30. Of particular note is the mutual recognition of sanitary registers for foods and beverages 
processed and produced in Guatemala, El Salv ador, Honduras and Nicaragua, which has been 
gradually introduced since November 2001.  Work is also proceeding on the adoption, at regional 
level, of the technical regulations applicable to f oods and beverages, which will enable the registers to 
be recognized by the five Central American countries. 
31. Similarly, the sanitary registers for medicines originating in El Salvador, Honduras and 
Nicaragua have been subject to mutual recognition since September 2002.  Guatemala acceded to this 
system of mutual recognition in December 2002.  The five countries are working on several aspects 
that in Costa Rica's opinion should be developed at regional level prior to incorporation in the system. 
 4.1 Technical barriers to trade 
 32. The Central American Regulations on Standardization Measures, Metrology and 
Authorization Procedures were approved by the Coun cil of Ministers for Central American Economic 
Integration through Resolution No. 37-99 (COMIE CO XIII) of 17 September 1999 and came into 
force 30 days later. 
                                                     
 
1 COMIECO Resolutions modifying rules of origin of  the Central American Regulations on Origin of 
Goods:  Resolution No. 59-2000 of 29 August 2000;  Resolution 68-2000 of 27 September 2000;  
Resolution 90-2002 of 23 August 2002;  Resolution 100-2002 of 12 December 2002. WT/REG93/R/B/2 
G/L/696 Page 8 
 
 33. The Central American Regulations on Standardization Measures, Metrology and 
Authorization Procedures enshrine the following main provisions: 
(a) No State Party may prepare, adopt, maintain or apply standardization measures 
(conformity assessment procedures, technical re gulations or standards) with a view to 
or with the effect of creating unnecessary barriers to trade. 
(b) With regard to standardization measures, the principle of national and 
most-favoured-nation treatment is guaranteed. 
(c) States Parties are entitled to prepare, adopt, apply and maintain technical regulations 
and related conformity assessment procedures which serve to ensure that they achieve 
their legitimate objectives, provided they do not thereby create unnecessary barriers 
to trade.   
(d) International standards are to be used as the basis for preparing or applying 
standardization measures, except where such  international standards do not constitute 
an effective or adequate means of ac hieving their legitimate objectives due to 
fundamental factors related to climate, geogr aphy, technology or infrastructure, or for 
scientifically proven reasons.   
34. The Regulations provide that: 
I. The States Parties shall harmonize their respective standardization measures to the 
fullest extent possible, taking into account  international standard-setting activities. 
 
II. Two or more States Parties may enter into mutual agreements for the harmonization 
of their standardization measures, with a view to strengthening Central American integration and developing a regional system. 
 III. Two or more States Parties may enter in to mutual recognition agreements concerning 
the results of their respective conformity  assessment procedures, with a view to 
facilitating intra-regional trade. 
 IV. The agreements referred to in paragraphs II and III shall be open to the participation 
of the other States Parties. 
 
V. Each State shall accept a technical regulati on adopted by another of the States Parties 
as equivalent to one of its own where, in cooperation with the other party, the 
importing party decides that the technical re gulations of the exporting party coincide 
sufficiently with the former's legitimate objectives. 
 
VI. As far as possible, each State Party sh all accept the results of any conformity 
assessment procedures carried out in the territo ry of another State Party, provided that 
they offer a satisfactory guarantee, equiva lent to that provided by the procedures 
carried out by the accepting State Party (or ca rried out within its territory, the results 
of which it accepts), that the product or servi ce concerned conforms to the applicable 
technical regulation or standard adopted or maintained in the territory of that State 
Party. 
 VII. Each State Party shall adopt and apply th e International System of Units (SI) as the 
legal system of units applicable to intra-regional trade. 
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VIII. Pursuant to the principle of transparency , each State shall notify the others of the draft 
standardization and metrological manageme nt measures that it intends to adopt, 
amend or repeal. 
 
4.2 Sanitary and phytosanitary measures 
 
35. The Central American Regulations on Sanitary  and Phytosanitary Measures and Procedures 
were approved by the Council of Ministers for Central American Economic  Integration through 
Resolution No. 37-99 (COMIECO XIII) of 17 September 1999. 
36. Article 12 of the Central American Regulations  on Sanitary and Phyt osanitary Measures and 
Procedures was later modified through Resolution No. 87-2002 (COMIECO XXIII) of 23 August 2002. 
37. The purpose of the above-mentioned Regulations  is to regulate sanitary and phytosanitary 
measures which may, directly or indirectly, affect trade between the States Parties, and to make sure 
that they do not constitute unnecessary barriers to trad e, as well as to develop statutory provisions for 
the gradual and voluntary harmonization of sanitary  and phytosanitary measures and procedures in 
intra- and extra-regional trade with a view to prot ecting human, animal or plant life or health.  The 
general principles of the Regulations are transpar ency, harmonization and equivalence of sanitary and 
phytosanitary measures and procedures and the prohib ition of arbitrary or unjustifiable discrimination. 
38. The Regulations indicate that the States Parties shall seek future harmonization of existing or 
new regional measures and procedures on a gradual a nd voluntary basis.  They shall also seek to 
harmonize sanitary and phytosanitary authorization procedures, in accordance with established WTO 
requirements, for those products that require th em;  to harmonize procedures and requirements for 
sanitary and phytosanitary registration;  and to adopt a common system for the accreditation of 
professionals and institutions involved in the implem entation of sanitary and phytosanitary measures.  
The Regulations call for the mutual recognition of inspection, assessment, approval and control 
procedures. 
39. The Regulations also seek to promote attemp ts to consolidate a single regional risk 
management policy, involving the procedures and c onsiderations applicable to preparation of the 
relevant analyses. 
5. Safeguards 
40. The Central American Regulations on Safeguard  Measures have been in force since 1996.  
They establish authorities and procedures for the implementation of safegua rd measures on imports 
from third countries on the basis of the substan tive aspects of Article XIX of the GATT 1994, the 
WTO Agreement on Safeguards and, as appropriate , the provisions of the Guatemala Protocol. 
41. They also regulate, among other things, substan tive rules, initiations of proceedings and the 
procedure for the adoption of safeguard measures against third countries. 
6. Anti-dumping and countervailing measures 
42. The Regulations on Unfair Trading Practices  have been in force since 1996.  These 
Regulations develop the provisions established in th e Agreement on Implementation of Article VI of 
the General Agreement on Tariffs and Trad e 1994 and the Agreement on Subsidies and 
Countervailing Measures, and, as appropriate, the provisions of the Guatemala Protocol and the 
Convention on the Central American Tariff and Customs Regime. WT/REG93/R/B/2 
G/L/696 Page 10 
 
 43. They also establish provisions on substantiv e rules, and procedures and measures in cases of 
unfair trading practices, in relations with third countries and in intra -regional trade relations. 
7. Subsidies and State aid 
44. The Governments of the signatory States do not grant export subsidies for agricultural goods. 
45. Furthermore, in December 1996 the Central American Regulations on Unfair Trading 
Practices entered into force.  These Regulations  were adopted with a view to developing the 
provisions of the Agreement on the Application of Article VI of the General Agreement on Tariffs 
and Trade 1994 and the Agreement on Subsidies and C ountervailing Measures.  They constitute an 
essentially procedural instrument since the substantiv e aspects of unfair trading practices are governed 
by the provisions of the above agreements. 
8. Sector-specific provisions 
46. Within the framework of the instruments of Ce ntral American economic integration, there is 
no sector-specific treatment applicable to imports from third countries. 
9. Other provisions 
47. Other provisions regulating the functioning of the Central American Economic Integration 
Subsystem include the following: 
• Convention on the Central American Tariff and Customs Regime 
 
This convention was formalized and entered into  force in 1985, its main aim being to respond 
to the challenge of reviving and restructur ing the process of Central American economic 
integration.  The regime established by the C onvention consists of the following instruments: 
 
(a) Central American Import Tariff, contained in Annex A of the Convention.  This 
instrument constitutes the common external tariff, which has been the subject of 
detailed comment in the releva nt section of this document. 
(b) Central American Legislation on the Custom s Value of Goods, contained in Annex B 
and its Regulations.  This instrument was repealed through the adoption of a protocol 
on 17 September 1999. 
(c) Uniform Central American Customs Code (CAUCA) and its Regulations 
(RECAUCA).  The CAUCA establishes the common procedures applicable by States Parties to the various existing customs re gimes in the area.  The Code has been 
amended by a protocol on a number of occasions.  It is currently in force in all the 
Member States.  The RECAUCA was approved by means of Resolution 
No. 101-2002 of the Central Ameri can Tariff and Customs Council on 
12 December 2002.  In Honduras' case, the latest amendments to the CAUCA and the 
RECAUCA have been in force since 3 and 4 March 2003, respectively. 
(d) Decisions and other common customs and tariff provisions based on the Convention 
on the Central American Tariff and Customs Regime.  WT/REG93/R/B/2 
 G/L/696 
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• Regulations on the International Customs Transit Regime 
 
These Regulations have been in force since 1994  and are aimed at developing provisions to 
facilitate international goods transit within the Central American region, using a common 
declaration form called the "Goods Declarati on for International Land Customs Transit". 
 Furthermore, for the purpose of updating the prov isions governing the land transit of goods in 
a manner consistent with the new realities of in ternational trade, the countries have amended 
these Regulations, the last amendment bei ng that approved by Resolution No. 65-2001 
(COMRIEDRE) of 16 March 2001. 
 
II. GENERAL PROVISIONS OF THE AGREEMENT 
1. Exceptions and reservations 
48. Pursuant to Article 57 of the Guatemala Protocol, Member States may request authority to 
suspend the application of particular provisions of  the Protocol and its de rivative and supplementary 
instruments on a temporary basis when they are having a serious effect on a particular sector of the 
economy.  In such cases, the Council of Ministers sha ll examine the situation and either grant or deny 
the request.  Should the authority be granted, th e Council of Ministers shall indicate the period of 
suspension and the measures that the requesting Stat e must adopt in order to overcome the abnormal 
situation. 
49. Pursuant to Article 64 of the Guatemala Protocol, reservations are not permitted. 
2. Accession 
50. Article 60 of the Guatemala Protocol provides for the accession or association of any State 
from the Central American isthmus which has not already signed. 
3. Dispute settlement procedures 
51. By means of Resolution No. 106-2003 of 17 February 2003, the Council of Ministers for 
Central American Economic Integration (COM IECO) approved the Trade Dispute Settlement 
Mechanism for Central America.  Also approved  in that Resolution were the Model Rules of 
Procedure and the Code of Conduct, wh ich are annexes to the Mechanism. 
52. The Mechanism, for its part, applies (a) with respect to the prevention or settlement of all 
disputes between States Parties regarding the applica tion or interpretation of instruments of economic 
integration in matters relating exclusively to intra -regional trade relations, and (b) when a State Party 
considers an existing or proposed measure of anot her State Party to be inconsistent with the 
obligations of the instruments of integration, or , even if the measure is not in breach of those 
instruments, considers it to nullify or impair the be nefits of trade exchanges between their territories 
that it could reasonably have expect ed to accrue under its application. 
4. Relationship with other trade agreements 
53. By establishing trade agreements with third coun tries, the States Parties commit themselves to 
comply with common trade rules that do not affect intra-regional trade, especially in respect of rules 
of origin, unfair trading practices, saf eguard clauses and technical standards. 
54. The States Parties may unilaterally negotiate ag reements with third countries, provided that 
they give prior notification of their inten tion and agree upon a coordination and information WT/REG93/R/B/2 
G/L/696 Page 12 
 
 mechanism concerning progress in the negotiations, and that the results of these agreements comply 
with the principles of Central American economic integration. 
5. Institutional framework 
55. The institutional framework for Central Amer ican integration was established by the 
Tegucigalpa Protocol to the Char ter of the Organization of Centra l American States (ODECA), signed 
in Tegucigalpa, Honduras, on 13 December 1991.  Th rough this protocol, the Central American 
Integration System (SICA) was created. 
56. The above-mentioned framework includes the Ge neral Treaty on Central American Economic 
Integration and the Protocol, thereto, i.e. the Guatemala Protocol, signed on 20 October 1993, which 
brings the economic integration process into line w ith the new institutional structure created by the 
Tegucigalpa Protocol in 1991;  this framework  underpins the Economic Integration Subsystem. 
57. The Economic Integration Subsys tem consists of the followi ng bodies and institutions:   
 Bodies of the Subsystem: 
 
• Council of Ministers for Economic Integration; 
 
• Intersectoral Council of Ministers for Economic Integration; 
 
• Sectoral Council of Economic Integration; 
 
• Executive Committee for Economic Integration. 
 Technical administrative bodies of the Subsystem: 
 
• Secretariat for Central American Economic Integration (SIECA); 
 
• Secretariat of the Central American Agricultural Council (SCA); 
 
• Secretariat of the Central American Monetary Council (SCMCA); 
 
• Secretariat for Central American Tourism Integration (SITCA). 
 
 Institutions of the Subsystem: 
 
• The Central American Bank for Economic Integration (CABEI); 
 
• The Central American Institute for Public Administration (ICAP). 
  The Advisory Committee for Economic Integration (CCIE) also forms part of the Subsystem. 
 
58. The Council of Ministers for Economic Integrati on is made up of the Ministers responsible 
for matters pertaining to economic integration in each contracting State.  The Council's functions 
include responsibility for the coordination, harmoniza tion, convergence or unification of the countries' 
economic policies.  WT/REG93/R/B/2 
 G/L/696 
 Page 13 
 
 59. The regulations on the organization and functi oning of the Council of Ministers for Economic 
Integration, the Intersectoral Council of Ministers for Economic Integration and the Sectoral Council 
of Ministers for Economic Integration were appr oved by Resolution No. 16-98 of 19 January 1998,  
and amended by Resolution No. 42-99 of 17 Septembe r 1999 of the Council of Ministers for Central 
American Economic Integration (COMIECO) and by the Agreement of 21 March 2000, according to 
the minutes of the special meeting of COMIECO. 
__________ 
 