Glossary: Central American Common Market (CACM)
DEFINITION:
The CACM was established by the Organization of Central American States under the General Treaty of Central American Economic Integration signed in Managua, Nicaragua, on December 15, 1960. Its members include Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. Its original goals included the establishment of a Central American regional free-trade area, a customs union, and the integration of the industrialization efforts of its member countries. Its efforts were curtailed following the 1969 war between El Salvador and Honduras, when the Hondurans reestablished import duties on CACM products. Despite the continued existence of the organization, most intraregional economic relations have been handled on a bilateral basis since 1970.