No. 52-53 (2007): Central American Trade and Integration

In the environment of international economic relations, the importance of both trade and integration is indisputable, not only as suitable instruments to promote greater growth of domestic economies, but also as a way to obtain bargaining power and generate geostrategic characteristics that contribute to obtain common results and greater profits. This is even clearer in the case of the Central American Region, made up of small countries with limited economies, which cannot depend on their scarce or non-existent political or economic power to promote their interests.

Therefore, as a regional strategy, Central America relies on initiatives such as bilateral, regional, interregional or multilateral trade agreements, aimed at promoting a leading role in the creation of common agendas for development in the hemisphere, which encourages the creation of a community of nations, with two main purposes: to insert itself competitively in the world economy and to integrate as a bloc to take full advantage of Free Trade Agreements and Association Agreements, Trade Zones, among others. 

Notwithstanding the above, these new schemes of the Central American Isthmus face some transcendental challenges. On the one hand, the accelerated pace of change in the world market, in the context of which new technologies, new trade modalities and new international standards for the commercialization system emerge day by day, giving rise to a strong demand for knowledge and skills for the management of international relations and, above all, in the commercial field, the main argument for the development of strategies of both developing and developed countries.

On the other hand, the relationship between integration, trade openness and economic growth is a complex process that has been approached from the economic literature in a very diverse manner, with proposals for their critical review. One of the sources of discrepancy is due to the concept of integration itself, sometimes associated with external openness, sometimes with the definition of trade policies that encourage or restrict trade. However, Central American Economic Integration is conceived as a means to promote economic development through the consolidation of the regional space, that is, Central America is envisioned with a common strategy of integration with social inclusion, understood as integration with equity, with productive development and fair trade, to face complex scenarios marked by significant threats and opportunities. 

Thus, ICAP, with the issues of this Journal, focused on the topic of Trade and Integration, intends to draw the attention of the Central American academic, professional and governmental community to many of the concerns and worries expressed herein.