Trade Facilitation in Central America During the Pandemic
International Trade’s Importance in Our Lives and Trade Facilitation in Central America During the Pandemic
International trade is of particular importance in our lives. On one hand, it allows consumers to acquire goods and services from countries that develop them more efficiently, in other words, at a lower cost. This way, consumers can acquire a greater variety of products at a lower price, thanks also to the competition it generates.
On the other hand, countries can acquire raw materials they do not possess or products they cannot produce because they would not be profitable. These are just some of the advantages of trade between nations.
In general terms, Trade Facilitation consists of streamlining import, export, and transit procedures, including the movement, release, and clearance of goods, with the aim of reducing related costs.
Now, more than ever, we must ensure the smooth flow of international trade, meaning that supply chains must not be interrupted to guarantee supply to our industries, businesses, and households.
In this regard, the Central American region has made significant institutional, legal, and economic advancements to minimize the impacts of the pandemic. An example of this is the adoption of the Regional Contingency Plan by the countries in March, under the Central American Integration System (SICA), to address the coronavirus, amounting to over US$1900 million, structured into five main axes:
Three central axes:
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Health and Risk Management
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Trade and Finance
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Security, Justice, and Migration
Two transversal axes:
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Strategic Communication
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International Cooperation Management
Additionally, binding biosecurity guidelines for COVID-19, applicable to Central American land transport, were approved, coming into force on June 7, 2020, to ensure the fluidity of trade and support efficient border management with proper sanitary controls. Considering that more than 95% of intraregional trade is conducted via land, this instrument is of substantial value.
On the other hand, the region’s customs authorities approved in April a directive to facilitate the clearance and transit of critical products: medicines, supplies, medical devices, food and beverages, hygiene products, and any other necessary items to properly address the pandemic.
These are some of the efforts that have highlighted the significance of the regional economic integration approach, thinking based on common interests, and, above all, acting together to promote human, social, and economic development.
Finally, it demonstrates once again the relevance of export activities for our countries and the close complementary relationship with Central American neighbors, not only in terms of export and import figures but also due to the investment and jobs resulting from such activities.
It has been proven that, even with a pandemic and a health crisis, humanity turns challenges into opportunities to improve the times ahead.
For more information, feel free to contact us at: daleman@lexincorp.com
