CACM countries, also known as the Central American Common Market countries, refer to a group of countries in Central America that participate in a regional trade agreement. The term "CACM" is an acronym derived from the Spanish name "Mercado Común Centroamericano" (MCCA).
The CACM countries consist of Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. These nations established the Central American Common Market through the Treaty of Managua in 1960, with the primary objective of promoting economic integration and cooperation within the region.
The CACM aims to create a customs union among its member states, facilitating the free movement of goods, services, and capital. It also seeks to harmonize trade policies, reduce trade barriers, and promote intra-regional trade. Furthermore, the CACM countries aim to foster economic growth, enhance regional competitiveness, and attract foreign investment collectively.
The CACM acts as a platform for these countries to negotiate and implement trade agreements with other regions and countries, both within and outside of Central America. By working together, the CACM countries strive to strengthen their economic ties, improve market access, and diversify their trading relationships.
Over the years, the CACM has faced challenges in fully achieving its objectives, particularly in terms of achieving comprehensive economic integration. Nevertheless, the CACM countries continue to collaborate and cooperate in various sectors, including agriculture, industry, services, and investment, with the ultimate goal of fostering economic development and integration in Central America.
