Logistics and trade facilitation between CARICOM and Central America

The purpose of this article is to analyze the progress and challenges in the trade relationships between
CARICOM1 and Central America.2 First, it highlights the increase in the trade dynamic between both
regions, its progress in investment as well as its economic complementarities, establishment of lines of
communication between their institutions, and trade negotiations. Secondly, it emphasizes upon the
elements that inhibit a greater trade dynamic and investment between CARICOM and Central
America. Among these elements are high tariff protections between the members of CARICOM, low
availability of transport routes and their high costs, the heterogeneity in their visa policies as well as
the costs related to cross-border trade. Moreover, it does a perfunctory approach to the aid these
countries receive for trade and development, within an emphasis on projects related to trade
facilitation. Both regions have the potential to mutually benefit through an economic
complementarity. Notwithstanding, joint progress is needed to mitigate the elements that inhibit their
trade and commerce.