Triángulo Norte creates a unique customs union to facilitate travel in Central America
Honduras and Guatemala welcome El Salvador as the newest member of the Central American economic bloc
Honduran President Juan Orlando Hernández announced the incorporation of El Salvador into the Customs Union of the Northern Triangle, in conjunction with Guatemalan President Jimmy Morales and Salvadoran President Salvador Sánchez Cerén. This integrated economic block will help the free movement of people and goods through the three countries, while generating employment, increasing trade opportunities, improving regional security and facilitating tourism. The three countries represent a territory of more than 200,000 square kilometers, approximately 60 percent of the Central American population.
The initial agreement between Honduras and Guatemala began in June 2017. Since the implementation of the program, countries have seen growth of 1.4% and 1.2% in their respective Gross Domestic Product (GDP). With the incorporation of El Salvador 14 months later, the three countries now expect a commercial impact of $ 117 million in commercial benefits throughout the region.
Government officials confirmed that, as a result of the new center, the time they will spend at customs will decrease significantly, creating a more competitive region for producers and buyers who invest in Central America. With the completion of the Omoa Highway, located in northern Honduras, extending to Guatemala, the transportation of goods and people throughout Central America will be facilitated even further.
The recent success of the customs union adds to the transformation of Honduras into a logistics center in Latin America. Through the support of the president's economic plan, Honduras 2020, Honduras has invested $ 2.4 million last year on highways to facilitate regional travel.
President Juan Orlando Hernández says: "[Thanks to] the new Customs Union between Honduras, Guatemala and El Salvador, we are looking to become the eighth largest economy in Latin America." He continues, "We have begun to define our objectives in the short, medium and long term, and I hope it will eventually also include Nicaragua, Costa Rica and Panama."
"With the incorporation of El Salvador, our new Customs Union will help us establish a productive integration and common market capabilities that will open more opportunities and generate economic competitiveness within Latin America," explained Jimmy Morales, president of Guatemala.
The development projects that the administration of President Juan Orlando Hernández continues to promote indicate a new phase of modernization for the country. By helping Honduras attract more opportunities for investment, tourism and exports, the Central American country is better positioned within the global market.