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date: 19 October 2017

Summary and Keywords

Throughout their history, the countries of Central America have attempted several forms of political and economic integration. After declaring independence in the 19th century, the region lacked its earlier cohesion vis-à-vis Spanish colonial governance. The former provinces aligned themselves in favor of either centralizing regional power in a federal republic or establishing complete political autonomy through the formation of new nation-states. Forces in favor of the latter eventually prevailed.

An attempt at economic integration began in the mid-20th century. It was actively backed by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) and eventually led to the creation of the Central American Common Market (CACM). Despite favorable economic conditions in the Post-World War II period, a number of complications undermined integration efforts: war, political crises, and interests that ran contrary to those of the United States. Integration was postponed until the end of the 1980s, after the Esquipulas II Accord reestablished peace in the region.

After the countries of Central America signed the Guatemala Protocol in 1993, economic integration was promoted under the banner of free trade. This was done by regional economic groups with the goal of reconnecting the region to global commerce under the most advantageous circumstances possible.

Keywords: Central American Common Market, economic integration, free trade, globalization

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