Mexico will increase its trade with Central America through the new Free Trade Agreement, which came into force on Saturday after being approved by three of the six countries involved, officials said.

From Saturday, the new trade agreement will regulate exchanges between Mexico, Nicaragua and El Salvador, and is expected to expand to Honduras, Guatemala and Costa Rica once concluded the legal procedures necessary for the entry into force of the FTA.

This Treaty unifies 98% of the rules established in previous agreements and will also regulate certificates of origin and allow companies to reduce administrative costs to export or import, said a source from the Ministry of Economy.

In 2011 trade between the two sides reached a total of 8,156 million dollars, which quintupled in value over the past decade. Mexico's exports to Central America rose by 143% in 10 years.

In addition, Central America is the fourth Mexican investment destination in Latin America, with 5,200 billion in sectors such as telecommunications, food, manufacturing, entertainment, energy, among others.

For the countries of Central America and the Caribbean, Mexico represents a market of over 110 million people that offers great opportunities for businesses in the region.

Mexico currently has a total of 12 FTAs with 44 countries (FTAs), 28 Agreements for the Promotion and Reciprocal Protection of Investments and 9 Trade Agreements (Economic Complementation Agreements and Partial Scope Agreements) within the framework of the Latin American Integration Association (ALADI).

More than ever, accompany such movements of political and economic integration with an approximation of trading standards and the creation of a regional institution of mediation & arbitration should be the priority for the Caribbean-Latin American region.

Source: EFE & ACP Legal.