Improving the Border Agency Cooperation
Among the OIC Member States for Facilitating Trade
50
2.5.2. Regional iBAC
The cross-border arrangements of international BAC often originate from regional initiatives.
This is useful, since a group of countries may have shared interests in advancing international
BAC, but may lack the resources and knowledge to progress. External funding partners may
also play a role in accelerating such cooperation. An illustrative example of a regional initiative
comes from Central America, where SIECA, Sistema de la Integración Económica
Centroamericana, shows promising progress.
SIECA – Sistema de la Integración Económica Centroamericana
The economic subsystem of Central America is comprised of six countries: Costa Rica, El Salvador,
Guatemala, Honduras, Nicaragua and Panama. Some 32% of the intra-regional trade takes place
between these countries.73 Despite the increasing importance of trade in this region, some issues have
cropped up that need to be tackled in order to facilitate this trade. According to the World Bank, the
average speed of goods in circulation in Central America is 17 km/h. 74 It takes 14 days to import and 13
days to export goods, and the average customs administration cost is about 12% of the value of the
goods. Furthermore, the World Bank has also identified five issues that decrease the competitiveness of
the region, which are travel times, backhaul problems, prices and fuel consumption, security costs and
access to credit.75 This information suggests there is an evident need for reform to improve trade.
In June 2014, the presidential mandate of Punta Cana instructed “the Council of Ministers of Economic
Integration (COMIECO, in Spanish) to adopt and implement a Central American Strategy for Trade
Facilitation and Competitiveness, emphasizing the Coordinated Border Management, in coordination
with sectorial councils and competent authorities.”76 Soon after the mandate was established,
COMIECO, with the support of the Secretariat for the Economic Integration of Central America (SIECA)
started the work. In December 2014, COMIECO was instructed to create a roadmap towards a Central
American Customs Union, which was approved in June 2015, and COMIECO was given the mandate to
implement such a roadmap. Central America is well aware of the importance of getting donors for the
implementation of its strategy; so far USAID and IDB have provided financial assistance.
This strategy intends, amongst other things, to create a BAC model adjusted to the Central American
context. It aims to promote coordination between the public and the private sectors in order to improve
tax collection procedures, control, border security and facilitation of transit of goods and people. This
Central American BAC model is based on the following eight pillars that need to be achieved in the
medium and long term:
 Adoption of international standards that aim to improve information exchange between the
authorities by implementing international standards.
 Information interoperability , where the objective is to improve control, institutional
coordination and reduction of trade procedures by exchanging information between the
73 SIECA. (2016a). Comercio de Centroamérica se desacelera, mejora saldo de la balanza comercial en Primer Trimestre de
2016. Monitor de Comercio de Centroamérica
74 Banco Mundial. (2012). Logistics in Central America, the path to competitiveness. [pdf]. Retieved from http://www-
d/PDF/750980WP0Logis00Box374299B00PUBLIC0.pdf [viewed 19 July 2016].
75 Banco Mundial. (2012). Logistics in Central America, the path to competitiveness. [pdf]. Retieved from http://www-
d/PDF/750980WP0Logis00Box374299B00PUBLIC0.pdf [viewed 19 July 2016].
76 Declaración de Punta Cana. (2014). XLIII Reunión ordinaria de Jefes de Estado y de Gobierno de los países miembros del
Sistema de la Integración Centroamericana (SICA) Retieved from
los-paises-miembros-del.pdf [viewed 19 July 2016].