Central American Common Market

The Central American Common Market (CACM) - in Spanish: Mercado Común Centroamericano (MCCA) - is an economic trade organization between five nations of Central America. It was established on December 13, 1960 between the nations of Guatemala, El Salvador, Honduras and Nicaragua in a conference in Managua. These nations ratified the treaties of membership the following year. Costa Rica joined the CACM in 1963.

The organization collapsed in 1969 with the Football War between Honduras and El Salvador, but was then reinstated in 1991.

The CACM has succeeded in removing duties on most products moving among the member countries, and has largely unified external tariffs and increased trade within the member nations. However, it has not achieved the further goals of greater economic and political unification that were hoped for at the organization's founding, mainly caused by the CACM's inability and lack of reliable means to settle trade disputes.

With the proposal of the Free Trade Area of the Americas, it is possible that this new organization will replace the CACM (or make it redundant) by 2005. Further, the implementation of the DR-CAFTA may render this common market redundant.

Comparison with other Regional blocs

Note: It must be noted that The European Union (EU) is not a simply regional bloc in the common sense. The EU is a Union of sovereing States with the deepest connections in the political, economical and executive fields. Thus, it is a far more integrated bloc than any other regional bloc or cooperative association of sovereign States in the world.

See also

• History of Central America
• Central American Free Trade Agreement
• Trade bloc
• Central African Common Market of Economic Community of Central African States (ECCAS)