Mexico and Central American governments sign free trade agreement

Mexico and Central American governments sign free trade agreement

2011-12-06 15:57:59 GMT+7 (ICT)

MEXICO CITY (BNO NEWS) -- The leaders of Mexico and five Central American governments signed a free trade agreement on Monday to boost the regional economy, officials said.

Mexican President Felipe Calderon met with Guatemalan President Alvaro Colom Caballeros and Honduran President Porfirio Lobo to sign the Mexico and Central America Free Trade Agreement, which also involves the countries of Costa Rica, El Salvador and Nicaragua.

The agreement is still awaiting final approval from the Mexican Senate. The agreement is expected to push Mexico's economy to expand into the Central American region, which has a population of approximately 150 million people.

Calderon described the agreement as a 'good decision' which marks an 'essential step to strengthen the region.' He also said the commercial benefits of the pact represents a door to prosperity.

"It's a powerful region," President Colom stated. "It is a vigorous region and what we need is to join them and our differences will be placed aside," he continued, adding that the factors that bring together the region are more than those that separate them.

Over the past 10 years, bilateral commerce between Mexico and the five Central American countries has multiplied by more than 3.6 times, reaching $6.6 million in 2010, according to Mexican Secretary of Economy Bruno Ferrari.

Furthermore, the region is Mexico's fourth most important investment target in Latin America with $5.2 million, as Central America's market has a value of approximately $48 billion.

Also present during Monday's signing were government ministers from El Salvador, Nicaragua and Costa Rica.

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