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The Central American Integration System (, or SICA) has been the economic and political organization of
Central America Central America is a subregion of North America. Its political boundaries are defined as bordering Mexico to the north, Colombia to the southeast, the Caribbean to the east, and the Pacific Ocean to the southwest. Central America is usually ...
n states since 1 February 1993. On 13 December 1991, the ODECA countries (Spanish: ''Organización de Estados Centroamericanos'') signed the Protocol of Tegucigalpa, extending earlier cooperation for regional
peace Peace is a state of harmony in the absence of hostility and violence, and everything that discusses achieving human welfare through justice and peaceful conditions. In a societal sense, peace is commonly used to mean a lack of conflict (suc ...
, political freedom,
democracy Democracy (from , ''dēmos'' 'people' and ''kratos'' 'rule') is a form of government in which political power is vested in the people or the population of a state. Under a minimalist definition of democracy, rulers are elected through competitiv ...
and
economic development In economics, economic development (or economic and social development) is the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and object ...
. SICA's General Secretariat is in El Salvador. In 1991, SICA's institutional framework included
Guatemala Guatemala, officially the Republic of Guatemala, is a country in Central America. It is bordered to the north and west by Mexico, to the northeast by Belize, to the east by Honduras, and to the southeast by El Salvador. It is hydrologically b ...
,
El Salvador El Salvador, officially the Republic of El Salvador, is a country in Central America. It is bordered on the northeast by Honduras, on the northwest by Guatemala, and on the south by the Pacific Ocean. El Salvador's capital and largest city is S ...
,
Honduras Honduras, officially the Republic of Honduras, is a country in Central America. It is bordered to the west by Guatemala, to the southwest by El Salvador, to the southeast by Nicaragua, to the south by the Pacific Ocean at the Gulf of Fonseca, ...
,
Nicaragua Nicaragua, officially the Republic of Nicaragua, is the geographically largest Sovereign state, country in Central America, comprising . With a population of 7,142,529 as of 2024, it is the third-most populous country in Central America aft ...
,
Costa Rica Costa Rica, officially the Republic of Costa Rica, is a country in Central America. It borders Nicaragua to the north, the Caribbean Sea to the northeast, Panama to the southeast, and the Pacific Ocean to the southwest, as well as Maritime bo ...
and
Panama Panama, officially the Republic of Panama, is a country in Latin America at the southern end of Central America, bordering South America. It is bordered by Costa Rica to the west, Colombia to the southeast, the Caribbean Sea to the north, and ...
.
Belize Belize is a country on the north-eastern coast of Central America. It is bordered by Mexico to the north, the Caribbean Sea to the east, and Guatemala to the west and south. It also shares a maritime boundary with Honduras to the southeast. P ...
joined in 1998 as a full member, while the
Dominican Republic The Dominican Republic is a country located on the island of Hispaniola in the Greater Antilles of the Caribbean Sea in the Atlantic Ocean, North Atlantic Ocean. It shares a Maritime boundary, maritime border with Puerto Rico to the east and ...
became an associated state in 2004 and a full member in 2013.
Mexico Mexico, officially the United Mexican States, is a country in North America. It is the northernmost country in Latin America, and borders the United States to the north, and Guatemala and Belize to the southeast; while having maritime boundar ...
,
Chile Chile, officially the Republic of Chile, is a country in western South America. It is the southernmost country in the world and the closest to Antarctica, stretching along a narrow strip of land between the Andes, Andes Mountains and the Paci ...
and
Brazil Brazil, officially the Federative Republic of Brazil, is the largest country in South America. It is the world's List of countries and dependencies by area, fifth-largest country by area and the List of countries and dependencies by population ...
became part of the organization as regional observers, and the
Republic of China Taiwan, officially the Republic of China (ROC), is a country in East Asia. The main geography of Taiwan, island of Taiwan, also known as ''Formosa'', lies between the East China Sea, East and South China Seas in the northwestern Pacific Ocea ...
,
Spain Spain, or the Kingdom of Spain, is a country in Southern Europe, Southern and Western Europe with territories in North Africa. Featuring the Punta de Tarifa, southernmost point of continental Europe, it is the largest country in Southern Eur ...
,
Germany Germany, officially the Federal Republic of Germany, is a country in Central Europe. It lies between the Baltic Sea and the North Sea to the north and the Alps to the south. Its sixteen States of Germany, constituent states have a total popu ...
,
Georgia Georgia most commonly refers to: * Georgia (country), a country in the South Caucasus * Georgia (U.S. state), a state in the southeastern United States Georgia may also refer to: People and fictional characters * Georgia (name), a list of pe ...
and
Japan Japan is an island country in East Asia. Located in the Pacific Ocean off the northeast coast of the Asia, Asian mainland, it is bordered on the west by the Sea of Japan and extends from the Sea of Okhotsk in the north to the East China Sea ...
became extra-regional observers. SICA has a standing invitation to participate as observers in sessions of the
United Nations General Assembly The United Nations General Assembly (UNGA or GA; , AGNU or AG) is one of the six principal organs of the United Nations (UN), serving as its main deliberative, policymaking, and representative organ. Currently in its Seventy-ninth session of th ...
, and maintains offices at UN Headquarters. Four countries (
Guatemala Guatemala, officially the Republic of Guatemala, is a country in Central America. It is bordered to the north and west by Mexico, to the northeast by Belize, to the east by Honduras, and to the southeast by El Salvador. It is hydrologically b ...
,
El Salvador El Salvador, officially the Republic of El Salvador, is a country in Central America. It is bordered on the northeast by Honduras, on the northwest by Guatemala, and on the south by the Pacific Ocean. El Salvador's capital and largest city is S ...
,
Honduras Honduras, officially the Republic of Honduras, is a country in Central America. It is bordered to the west by Guatemala, to the southwest by El Salvador, to the southeast by Nicaragua, to the south by the Pacific Ocean at the Gulf of Fonseca, ...
, and
Nicaragua Nicaragua, officially the Republic of Nicaragua, is the geographically largest Sovereign state, country in Central America, comprising . With a population of 7,142,529 as of 2024, it is the third-most populous country in Central America aft ...
) experiencing political, cultural and migratory integration have formed a group, the Central America Four or CA-4, which has introduced common internal borders and the same type of
passport A passport is an official travel document issued by a government that certifies a person's identity and nationality for international travel. A passport allows its bearer to enter and temporarily reside in a foreign country, access local aid ...
. Belize, Costa Rica, Panama and the Dominican Republic subsequently joined the CA-4 for economic integration.


History


First Central American Court of Justice

Between 14 November and 20 December 1907, after a proposal by
Mexico Mexico, officially the United Mexican States, is a country in North America. It is the northernmost country in Latin America, and borders the United States to the north, and Guatemala and Belize to the southeast; while having maritime boundar ...
and the United States, five Central American nations (
Costa Rica Costa Rica, officially the Republic of Costa Rica, is a country in Central America. It borders Nicaragua to the north, the Caribbean Sea to the northeast, Panama to the southeast, and the Pacific Ocean to the southwest, as well as Maritime bo ...
,
El Salvador El Salvador, officially the Republic of El Salvador, is a country in Central America. It is bordered on the northeast by Honduras, on the northwest by Guatemala, and on the south by the Pacific Ocean. El Salvador's capital and largest city is S ...
,
Guatemala Guatemala, officially the Republic of Guatemala, is a country in Central America. It is bordered to the north and west by Mexico, to the northeast by Belize, to the east by Honduras, and to the southeast by El Salvador. It is hydrologically b ...
,
Honduras Honduras, officially the Republic of Honduras, is a country in Central America. It is bordered to the west by Guatemala, to the southwest by El Salvador, to the southeast by Nicaragua, to the south by the Pacific Ocean at the Gulf of Fonseca, ...
and
Nicaragua Nicaragua, officially the Republic of Nicaragua, is the geographically largest Sovereign state, country in Central America, comprising . With a population of 7,142,529 as of 2024, it is the third-most populous country in Central America aft ...
) took part in the Central American Peace Conference in Washington, D.C. sponsored by
United States Secretary of State The United States secretary of state (SecState) is a member of the executive branch of the federal government of the United States and the head of the U.S. Department of State. The secretary of state serves as the principal advisor to the ...
Elihu Root. The five nations, all former Spanish colonies, had previously tried to form a political alliance. Their first attempt was the Federal Republic of Central America, and the most recent effort was the founding of the Republic of Central America 11 years earlier. The participants concluded the conference with an agreement creating the Central American Court of Justice ''(Corte de Justicia Centroamericana)''. The court would remain in effect for ten years from the final ratification, and communication would be through the government of Costa Rica. It was composed of five judges, one from each member state. The court heard ten cases, five of which were brought by private individuals (and declared inadmissible) and three begun by the court. The court operated until April 1918 from its headquarters in
Costa Rica Costa Rica, officially the Republic of Costa Rica, is a country in Central America. It borders Nicaragua to the north, the Caribbean Sea to the northeast, Panama to the southeast, and the Pacific Ocean to the southwest, as well as Maritime bo ...
; despite efforts beginning in March 1917 (when Nicaragua submitted a notice of termination of the agreement), it then dissolved. Reasons for the agreement's failure include: *No effective system of judicial procedure *Judges were not independent of their respective governments. *Jurisdiction was too broad to satisfy its member states.


Organization of Central American States

At the end of
World War II World War II or the Second World War (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...
, interest in integrating the Central American governments began. On 14 October 1951 (33 years after the CACJ was dissolved) the governments of Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua signed a treaty creating the Organization of Central American States ''(Organización de Estados Centroamericanos'', or ODECA) to promote regional cooperation and unity. The following year (12 December 1952), ODECA's charter was amended to create a new Central American Court of Justice (''Corte Centroamericana de Justicia'', or CCJ) without the time limit of its previous incarnation. The Charter of San Salvador was ratified by all Central American governments, and on 18 August 1955 their foreign ministers attended its first meeting in Antigua Guatemala. The Declaration of Antigua Guatemala authorized subordinate organizations of ODECA to facilitate economic cooperation, better sanitation and progress in the "integral union" of the Central American nations. The Central American Common Market, the Central American Bank for Economic Integration (BCIE) and the Secretariat for Central American Economic Integration ( SIECA) were established by the five Central American nations on 13 December 1960 at a conference in
Managua Managua () is the capital city, capital and largest city of Nicaragua, and one of the List of largest cities in Central America, largest cities in Central America. Located on the shores of Lake Managua, the city had an estimated population of 1, ...
. All nations ratified the membership treaties the following year.
Costa Rica Costa Rica, officially the Republic of Costa Rica, is a country in Central America. It borders Nicaragua to the north, the Caribbean Sea to the northeast, Panama to the southeast, and the Pacific Ocean to the southwest, as well as Maritime bo ...
joined the CACM in 1963, but Panama had not yet joined. The organization froze during the 1969 war between Honduras and El Salvador; in 1973 ODECA was suspended, and progress toward regional integration ground to a halt.


Revival

In 1991 the integration agenda advanced with the creation of the SICA, which provided a legal framework to resolve disputes between member states. SICA was supported by the United Nations General Assembly in a resolution of 20 December 1993. SICA includes seven Central America nations and the
Dominican Republic The Dominican Republic is a country located on the island of Hispaniola in the Greater Antilles of the Caribbean Sea in the Atlantic Ocean, North Atlantic Ocean. It shares a Maritime boundary, maritime border with Puerto Rico to the east and ...
, which is part of the
Caribbean The Caribbean ( , ; ; ; ) is a region in the middle of the Americas centered around the Caribbean Sea in the Atlantic Ocean, North Atlantic Ocean, mostly overlapping with the West Indies. Bordered by North America to the north, Central America ...
.
Central America Central America is a subregion of North America. Its political boundaries are defined as bordering Mexico to the north, Colombia to the southeast, the Caribbean to the east, and the Pacific Ocean to the southwest. Central America is usually ...
has several supranational institutions, such as the Central American Parliament, the Central American Bank for Economic Integration and the Central American Common Market. The Central America trade bloc is governed by the General Treaty for Economical Integration (the Guatemala Protocol), which was signed on 29 October 1993. The CACM has removed duties on most products throughout the member countries, and has unified external
tariff A tariff or import tax is a duty (tax), duty imposed by a national Government, government, customs territory, or supranational union on imports of goods and is paid by the importer. Exceptionally, an export tax may be levied on exports of goods ...
s and increased trade within its members. The bank has five non-regional members:
Argentina Argentina, officially the Argentine Republic, is a country in the southern half of South America. It covers an area of , making it the List of South American countries by area, second-largest country in South America after Brazil, the fourt ...
,
Colombia Colombia, officially the Republic of Colombia, is a country primarily located in South America with Insular region of Colombia, insular regions in North America. The Colombian mainland is bordered by the Caribbean Sea to the north, Venezuel ...
,
Mexico Mexico, officially the United Mexican States, is a country in North America. It is the northernmost country in Latin America, and borders the United States to the north, and Guatemala and Belize to the southeast; while having maritime boundar ...
, the
Republic of China Taiwan, officially the Republic of China (ROC), is a country in East Asia. The main geography of Taiwan, island of Taiwan, also known as ''Formosa'', lies between the East China Sea, East and South China Seas in the northwestern Pacific Ocea ...
and
Spain Spain, or the Kingdom of Spain, is a country in Southern Europe, Southern and Western Europe with territories in North Africa. Featuring the Punta de Tarifa, southernmost point of continental Europe, it is the largest country in Southern Eur ...
. All SICA members are also part of the Mesoamerica Project, which includes Mexico and Colombia.
Haiti Haiti, officially the Republic of Haiti, is a country on the island of Hispaniola in the Caribbean Sea, east of Cuba and Jamaica, and south of the Bahamas. It occupies the western three-eighths of the island, which it shares with the Dominican ...
admitted to join SICA in 2013 as a regional observer and the
Dominican Republic The Dominican Republic is a country located on the island of Hispaniola in the Greater Antilles of the Caribbean Sea in the Atlantic Ocean, North Atlantic Ocean. It shares a Maritime boundary, maritime border with Puerto Rico to the east and ...
became a full member on 27 June 2013.


Expulsions and rejections

Guatemala, Panama, the Dominican Republic, Costa Rica appealed SICA to expel Nicaragua from SICA membership and reject admission of Russia as a SICA extra-regional observer due to
Daniel Ortega José Daniel Ortega Saavedra (; ; born 11 November 1945) is a Nicaraguan politician and dictator who has been the president of Nicaragua, co-president of Nicaragua since 18 February 2025, alongside his wife Rosario Murillo. He was the 54th an ...
regime's support for Russia during the ongoing
Russo-Ukrainian war The Russo-Ukrainian War began in February 2014 and is ongoing. Following Ukraine's Revolution of Dignity, Russia Russian occupation of Crimea, occupied and Annexation of Crimea by the Russian Federation, annexed Crimea from Ukraine. It then ...
since 2014.


Members and observers


Member states


Regional observers

* * * * * * * * * * * *


Extra-regional observers

* * * * * * * * * * * * * * * * * * * * * * * *


Economic integration


Unified Central American currency

The Central American Bank for Economic Integration has not introduced its own common currency, and dollarization is possible. However, for formal purposes the US Dollar is sometimes referred to as "Central American Peso" pegged 1:1 to the Dollar. There are no coins or notes in this currency and it is little known outside of legal circles. Central America is increasing its regional economic development, accelerating its social, political and economic integration. The region has diversified output and price and wage flexibility; however, there is a lack of business-cycle synchronization, dissimilar levels of public-sector debt, diverging inflation rates and low levels of intra-regional trade.


Policy integration

In the parliamentary body are proposals to consider regional air travel as domestic travel, to eliminate roaming fees on telephone calls and to create a regional penitentiary (affiliated with the Central American Court of Justice) to address regional trafficking and international crimes.


Headquarters

SICA's administrative centre is located in San Salvador, El Salvador.


Institutions


Central American Parliament

Parlacen was born as a parliamentary body emulating the Federal Republic of Central America, with Costa Rica an observer. It evolved from the Contadora Group, a project launched during the 1980s to deal with
civil war A civil war is a war between organized groups within the same Sovereign state, state (or country). The aim of one side may be to take control of the country or a region, to achieve independence for a region, or to change government policies.J ...
s in
El Salvador El Salvador, officially the Republic of El Salvador, is a country in Central America. It is bordered on the northeast by Honduras, on the northwest by Guatemala, and on the south by the Pacific Ocean. El Salvador's capital and largest city is S ...
,
Guatemala Guatemala, officially the Republic of Guatemala, is a country in Central America. It is bordered to the north and west by Mexico, to the northeast by Belize, to the east by Honduras, and to the southeast by El Salvador. It is hydrologically b ...
and
Nicaragua Nicaragua, officially the Republic of Nicaragua, is the geographically largest Sovereign state, country in Central America, comprising . With a population of 7,142,529 as of 2024, it is the third-most populous country in Central America aft ...
. Although the Contadora Group was dissolved in 1986, the concept of Central American integration is implicitly referenced in several countries' constitutions. The Esquipulas Peace Agreement (among other acts) agreed to the creation of a Central American Parliament composed of 20–22 directly-elected deputies from each country.
Costa Rica Costa Rica, officially the Republic of Costa Rica, is a country in Central America. It borders Nicaragua to the north, the Caribbean Sea to the northeast, Panama to the southeast, and the Pacific Ocean to the southwest, as well as Maritime bo ...
has not ratified the agreement, and is not represented in the Parlacen. Parlacen is seen by some (including former President of Honduras Ricardo Maduro) as a white elephant.


Central American Court of Justice

The CCJ's mission is to promote peace in the region and the unity of its member states. The Court has jurisdiction to hear cases: *Between member states *Between a member state and a non-member state accepting the court's jurisdiction *Between states and a resident of a member state *Concerning the integration process between SICA and member states (or persons) The court may offer consultation to the region's supreme courts. In 2005, it ruled that Nicaraguan congressional reforms (which removed control of water, energy and telecommunications from President
Enrique Bolaños Enrique José Bolaños Geyer (; 13 May 1928 – 14 June 2021) was a Nicaraguan politician who served as President of Nicaragua from 10 January 2002 to 10 January 2007. From 1997 to 2002, Bolaños served as vice president under Arnoldo Alemán. ...
) were "legally inapplicable". As of July 2005, the CCJ had made 70 resolutions since hearing its first case in 1994.


Organizations

*
Central American Bank for Economic Integration The Central American Bank for Economic Integration - CABEI ( BCIE in Spanish) was founded in 1960. It is an international multilateral development financial institution. Its resources are invested in projects that foster development to reduce pov ...
(''Banco Centroamericano de Integración Económica'', BCIE) * Central American Common Market (CACM; ''Mercado Común Centroamericano'', MCCA) * Central American Court of Justice (CCJ) * Central American Armed Forces Conference (''Conferencia de las Fuerzas Armadas Centroamericanas'', CFAC) * Central American Parliament (''Parlamento Centroamericano'', PARLACEN) ** Plenum ** Board of Parliament ** Secretariat * President's Summit ** ''Comité Consultivo'' (CC-SICA) ** Council of Ministers of Foreign Affairs ** Executive Committee (CE-SICA) ** Vice President's Summit ** Secretariat General (SG-SICA) * Central American Educational and Cultural Cooperation (CECC)


See also

* Latin American Integration Association * Central America-4 Border Control Agreement * Central America-4 passport * Mercosur * Rules of Origin *
Market access In international trade, market access refers to a company's ability to enter a foreign market by selling its goods and services in another country. Market access is not the same as free trade, because market access is normally subject to condition ...
* Free-trade area * Tariffs


Notes


References


Bibliography

* *Ishmael, Odeen (July 2007)
Guyana Journal (2007-07): Advancing Integration Between Caricom and Central America
*Kimitch, Rebecca (15 July 2005). ''Commission Studies Impeachment'', Tico Times.


External links

*
Central American ParliamentCentral American Economic Integration SystemBCIE / CABEIDecisions of the CACJ in English (1908-1917)

Market Access Map
(A free tool developed by International Trade Centre, which identify customs tariffs, tariff rate quotas, trade remedies, regulatory requirements and preferential regimes applicable to products, including Central American Integration System)
Rules of Origin Facilitator
(A free tool jointly developed by International Trade Centre,
World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization headquartered in Geneva, Switzerland that regulates and facilitates international trade. Governments use the organization to establish, revise, and enforce the rules that g ...
and
World Customs Organization The World Customs Organization (WCO) is an intergovernmental organization headquartered in Brussels, Belgium. Notable projects include its collaboration with the WTO on trade facilitation and the implementation of the SAFE Framework of Standar ...
which enables traders to find specific criteria and general origin requirements applicable to their products, understand and comply with them in order to be eligible for preferential tariffs. The tool is very useful for traders who want to gain benefit from Central American Integration System) {{Authority control Continental unions International organizations based in the Americas Multilateral development banks Foreign relations of Costa Rica Foreign relations of El Salvador Foreign relations of Guatemala Foreign relations of Honduras Foreign relations of Nicaragua Foreign relations of the Dominican Republic Supranational unions Trade blocs United Nations General Assembly observers Politics of Central America Organizations established in 1991 Intergovernmental organizations established by treaty Organizations based in El Salvador 1991 in economic history 1991 establishments in North America Customs unions