The impact of intraregional free trade on the commercialization of agricultural products within SICA

Abstract

Intraregional free trade within the Central American Integration System (SICA) has transformed the commercialization of agricultural products in Central America. Established in 1991 through the Tegucigalpa Protocol, SICA has strengthened regulations like the Central American Technical Regulations, promoting agricultural health, safety, and sustainability. Trade liberalization has driven productive diversification, with crops such as coffee, pineapple, and beans, achieving a 22% increase in intraregional agri-food trade in 2023. However, challenges persist, including sanitary barriers, inadequate infrastructure, and vulnerabilities for small producers. Agri-food SMEs, comprising over 90% of productive units, are vital for food security but require enhanced support in financing and technology. The Sustainable Climate-Adapted Agriculture Strategy (ASAC) and regional cooperation aim to address these issues, fostering equitable and sustainable trade. Despite progress, ensuring inclusive benefits for all actors remains critical to strengthening regional agricultural markets and resilience.