Central American Report N0. 2 (2004)

Jan 2004
This report assesses the Central American integration process in recent years, locating it in the context established by the nature of the subregion¿s international insertion, its macroeconomic performance, and the negotiation of the Central American Free Trade Agreement (CAFTA) with the United States. The first part provides a summary analysis of the macroeconomic context. The second examines the features of the subregion¿s external insertion, including an appraisal of trade and investment among the Central American countries. The third part reviews the determinants of these processes. The fourth part of the report describes the processes of political, social and environmental integration in the subregion, and the fifth addresses the negotiation and substance of the FTA between Central America (and later the Dominican Republic) and the United States. The final part identifies a tentative agenda arising from the challenges of Central American integration and from the agreement with the United States.