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With Countries in The Central American Common Market - CACM

The Central American Common Market (abbreviated CACM - in Spanish: Mercado Común Centroamericano, abbreviated MCCA) is an economic trade organization between five nations of Central America. It was established on December 13, 1960 between the nations of Guatemala, El Salvador, Honduras and Nicaragua in a conference in Managua. These nations ratified the treaties of membership the following year. Costa Rica joined the CACM in 1963.

The organization collapsed in 1969 with the Football War between Honduras and El Salvador, but was then reinstated in 1991.

The CACM has succeeded in removing duties on most products moving among the member countries, and has largely unified external tariffs and increased trade within the member nations. However, it has not achieved the further goals of greater economic and political unification that were hoped for at the organization's founding, mainly caused by the CACM's inability and lack of reliable means to settle trade disputes.

With the proposal of the Free Trade Area of the Americas, it is possible that this new organization will replace the CACM (or make it redundant) by 2005.

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