Mexico, C. American countries approve FTA

MEXICO CITY, Dec. 5 (Xinhua) -- Mexico and five Central American countries on Monday ratified a Free Trade Agreement which envisions a potential market of 150 million consumers.

Representatives of Mexico, Nicaragua, El Salvador, Costa Rica, Honduras and Guatemala signed a presidential statement bringing the FTA into force prior to a summit of the Mechanism of Tuxtla Dialogue and Agreement which opened later in the day in the southeastern Mexican city of Merida.

The agreement provides a legal framework for trading in goods and services among the countries.

"This agreement creates a strong area of cooperation and will allow us to better compete with other regions in the world," Mexican President Felipe Calderon said.

"Given the adverse global economy, we must use comparative advantages to promote trade, investment and productive exchange," Calderon said.

Trade integration in the region increased in 2010 and Mexican investors now view Central America as the No. 4 preferred region for investment.

Guatemalan President Alvaro Colom said the agreement consolidates a region of increasing mobility, adding that opportunities for dialogue and consultations, such as the Tuxtla Mechanism, would help strengthen relations among countries in the region.

Source: Xinhua News