Mexico and five Central American nations, Nicaragua, El Salvador, Costa Rica, Honduras, and Guatemala have agreed to the signing of a new consolidated Free Trade Agreement, to unify existing bilateral arrangements under one pact.

Following negotiations which began in 2008 and concluded on November 22, 2011, Mexico and the five nations signed an agreement at the 13th summit of the Tuxtla Mechanism of Dialogue and Coordination on December 5 to give effect to the new accord.

Mexico's Minister for the Economy, Bruno Ferrari, noted that the unification of existing arrangements would bring considerable benefits for Mexican companies as well as their Central American peers in reducing administrative costs associated with trade.

Mexican President, Felipe Calderon added that the nation's efforts to expand its trade ties by reducing tariff and non-tariff barriers to trade with other nations would boost the its attractiveness to investors and improve its international competitiveness.

December 12, 2011

Source: Tax News

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