Central American Common Market (CACM) - Explained
What is the CACM?
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Table of ContentsWhat is the Central American Common Market (CACM)?What does the Central American Common Market Do?Academic Research for Central American Common Market (CACM)
What is the Central American Common Market (CACM)?
The Central American Common Market (CACM), or the Spanish Mercado Comun Centroamericano (MCCA), is an association of five Central American countries which was initially formed to aid regional economic growth via free trade and economic integration.
Initially established by in 1960, this association once contained just Nicaragua, El Salvador, Honduras, and Guatemala. However, in 1962, its membership later got to Costa Rica. The Central American Common Market is headquartered in Guatemala City.
What does the Central American Common Market Do?
The Central American Economic Council acts like a chief policy-making organ. It tries to coordinate regional economic integrations and free trade.
Being mostly composed of economic ministers from the five zones, the council is led by a secretary-general who is mostly elected for a period of three years.
The Central American Common Market was established by the General Treaty on Central America Economic Integration due to the need of the five member countries to work hand in hand with each other and diversify their economies.