Trade talks with the European Union (EU) continue stalled two months after they were postponed due to the political crisis in Honduras.
Although a spokesperson for the EU said this week there are no immediate plans to resume negotiations, Central America’s foreign trade ministers are pressing forward with the aim of coming to an agreement soon.
Formal negotiations for a trade agreement began in October of 2007 in Costa Rica and were expected to conclude this year, after four rounds of talks. But internal conflicts in Central America and policies within certain countries delayed the process and pushed diplomats into additional rounds.
“When there is a crisis in one country, the whole process of integration gets interrupted, which is what happened with the Honduran (crisis),” said Rafael Sánchez, a London-based analyst and author of “The Politics of Central American Integration.” He added that it “sets back external relations because it damages an international image.” Sánchez was referring to the June 28 Honduran coup in which President Manuel Zelaya was ousted and Roberto Micheletti was installed to head the de facto government.
An Association Agreement with the EU is predicated on the Central American nations meeting certain benchmarks in terms of integration, including working together to develop common policies, implement a customs union, and reduce vulnerability to natural disasters.
Since 2000, trade among the countries of Central America has grown from $2.6 billion to $6.3 billion. According to the Foreign Trade Ministry (COMEX), there has been an expansion of free trade in sectors, including all agricultural and industrial goods with the exception of coffee, sugar cane, alcohol and oil derivatives (representing roughly 94 percent of all products).
Border crossings have been improved in El Salvador and Honduras, and some countries have relaxed immigration rules. Sánchez said intra-regional cooperation within the region is critical because it allows Central America to become a bigger market.
At a late-July conference in Guanacaste in one of his first meetings before fellow heads of state as president of SICA, Arias lamented the setback in negotiations due to the Honduran conflict.
Yet, Costa Rica remains one of the biggest obstacles to integration, due to its resistance to open migration within the region.
Christopher Patten, commissioner for external affairs with the EU’s European Commission, pointed out that the two regions began the integration process the same way, which may lead to a similar end.
Yet, with four-hour waits at border crossings and a transportation system that does little to reduce time and distance, the jigsaw puzzle pieces that are the nations of Central America are still looking for a better fit.