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[TRANSLATION]
GENERAL TREATY ON CENTRAL AMERICAN
ECONOMIC INTEGRATION BETWEEN
GUATEMALA, EL SALVADOR, HONDURAS AND NICARAGUA.
SIGNED AT MANAGUA, ON 13 DECEMBER 1960
Chapter VII: Central American Bank for Economic Integration
Article XVIII
The Signatory States agree to establish the Central American
Bank for Economic Integration which shall be a juridical person. The
Bank shall act as an instrument for the financing and promotion
of a regionally balanced, integrated economic growth.
To that end they shall sign the agreement constituting the
Bank, which shall remain open for
the signature or accession of any other Central American
State which may wish to become a member of the Bank.
It is, however, established that members of the Bank may not
obtain guaranties or loans form the Bank unless they
have previously deposited their instruments of
ratification of the following international agreements:
The present Treaty;
Multilateral Treaty on Free Trade and Central American Economic
Integration, signed on 10 June 1958;
Agreement on the Regimen for Central American Integration
Industries, signed on 10 July 1958; and
Central American Agreement on the Equalization of Import Duties
and Charges, Signed on 1 September 1959, and its Protocol signed
on the same day as the present Treaty. (United Nations,
Treaty series, Vo. 454, NO. 6542).
Chapter VIII: Tax Incentives to Industrial Development
Article XIX
The Contracting States, with a view to establishing uniform tax
incentives to industrial development, agree to ensure as soon
as possible a reasonable equalization of the relevant laws and
regulations in force. To that end they shall, within a period
of six months from the date of entry into force of the present
Treaty, sign a special protocol specifying the amount and type of
exceptions, the time limits thereof, the conditions under which
they shall be granted, the systems of industrial classification
and the principles and procedures governing their application.
The Executive council shall be responsible for co-ordinating
the application of the tax incentives of Industrial development.
Chapter IX: Organs
Article XX
The Central American Economic Council, composed of the
Ministers of Economic Affairs of the several Contracting Parties, is
hereby established for the purpose of integrating the Central
American economies and Co-ordinating the economic policy of
the Contracting States.
The Central American Economic Council shall meet as often
as required or at the request of any of the Contracting Parties. It
shall examine the work of the Executive Council and adopt such
resolutions as it may deem appropriate. The Central American
Economic Council shall be the organ responsible for
facilitating implementation of the resolutions on economic
integration adopted by the Central American Economic
Co-operation Committee. It may seek the advice of Central
American and international technical organs.
Article XXI
For the purpose of applying and administering the present
Treaty and of undertaking all the negotiations and work
designed to give practical effect to the Central American
Economic union, an Executive Council, consisting of one titular
official and one alternate appointed by each Contracting
Party, is hereby established.
The Executive Council shall meet as often as required, at the
request of one of the Contracting Parties or when convened by
the Permanent Secretariat, and its resolutions shall be
adopted by majority vote. In the event of disagreement,
recourse will be had to the Central American Economic Council
in order that the latter may give a final ruling.
Before ruling on a matter, the Executive Council shall determine
unanimously whether the matter is to be decided by a concurrent
vote of all its members or by a simple majority.
Article XXII
The Executive Council shall take such measures as it may deem
necessary to ensure fulfillment of the commitments entered
into under this Treaty and to settle problems arising
from the implementation of its provisions. It may likewise
propose to the Governments the signing of such additional
multilateral agreements as may be required in order to
achieve the purpose of Central American economic integration,
including a customs union in respect of their territories.
The Executive Council shall assume, on behalf of the Contracting
Parties, the functions assigned to the Central American
Trade Commission in the Multilateral Treaty on Free Trade and
Central American Economic Integration and the Central American
Agreement on the Equalization of Import Duties and Charges, as
well as those assigned to the Central American Industrial
Integration Commission in the Agreement on the Regime for
Central American Integration Industries, as well as the powers
and duties of the joint commissions set up under bilateral
treaties in force between the Contracting Parties.
Article XXIII
A Permanent Secretariat is hereby instituted, as a juridical
person, and shall act as such both for the Central American
Economic Council and the Executive Council established under
this Treaty.
The Secretariat shall have its seat and headquarters in
Guatemala City, capital of the Republic of Guatemala, and shall
be headed by a Secretary-General appointed for a period of
three years by the Central American Economic Council. The
Secretariat shall establish such departments and section as
may be necessary for the performance of its functions. Its
expenses shall be governed by a general budget adopted annually
by the Central American Economic Council and each Contracting
Party shall contribute annually to its support an amount
equivalent to not less than fifty thousand United States dollars
(US$50,000), payable in the respective currencies of the
Signatory States.
Members of the Secretariat shall enjoy diplomatic immunity.
Other diplomatic privileges shall be granted only to the
Secretariat and to the Secretary-General.
Article XXIV
The Secretariat shall ensure that this Treaty, the Multilateral
Treaty on Free Trade and Central American Economic Integration,
the Agreement on the Regime for Central American Integration
Industries, the Central American Agreement on the
Equalization of Import Duties and Charges, bilateral or
multilateral treaties on free trade and economic integration
in force between any of the Contracting Parties, and
all other agreements relating to Central American economic
integration already signed or that may be signed hereafter, the
interpretation of which has not been specifically entrusted to
another organ, are properly executed among the Contracting
parties.
The Secretariat shall ensure implementation of the resolutions
adopted by the Central American Economic Council and
the Executive Council established under this Treaty and
shall also perform such functions as are assigned to it by the
Executive Council. Its regulations shall be approved
by the Economic Councils.
The Secretariat shall also undertake such work and studies as
may be assigned so it by the Executive Council and the Central
American Economic Council. In performing these duties, it shall
avail itself of the studies and work carried out by other Central
American and international organs and shall, where appropriate,
enlist their co-operation.
Chapter X: GENERAL PROVISIONS
Article XXV
The Signatory States agree not to sign unilaterally with
non-Central American countries any new treaties that
may affect the principles of Central American economic
integration. They further agree to maintain the "Central
American exception clause" in any trade agreements they
may conclude on the basis of most-favoured-nation
treatment with any countries other than the Contracting States.
Article XXVI
The Signatory States agree to settle amicably, in the spirit
of this Treaty, and through the Executive Council or the
Central American Economic Council, as the case may be, any
differences which may arise regarding the interpretation or
application of any of its provisions. If agreement cannot be
reached, they shall submit the matter to arbitration. For
the purpose of constituting the arbitration tribunal, each
Contracting Party shall propose to the General Secretariat
of the Organization of Central American States the names of
three magistrates from its Surpreme Court of Justice.
From the complete list of candidates, the Secretary-General of
the Organization of Central American States and the Government
representatives in the Organization shall select, by drawing
lots, one arbitrator for each Contracting party, no two of
them may be nationals of the same State. the award of the
arbitration tribunal shall require the concurring votes of
not less than three members, and shall have the affect of
re judicata for all the Contracting Parties so far as it
contains any ruling concerning the interpretation or
application of the provisions of this Treaty)
Article XXVII
The present Treaty shall, with respect to the Contracting
Parties, take precedence over the Multilateral Treaty
on Free Trade and Central American Economic
Integration and any other bilateral or multilateral
free-trade instruments signed between the Contracting Parties;
it shall not, however, affect the validity of those
agreements.
The provisions of the trade and economic integration agreements
referred to in the previous paragraph shall be applied
between the respective Contracting Parties
in so far as they are not covered in the present Treaty.
Pending ratification of the present Treaty by any of the
Contracting Parties, or in the event of its denunciation
by any of them, the trade relations of the Party concerned
with the other Signatory States shall be governed by the
commitments entered into previously under the existing instruments
referred to in the preamble of the present Treaty.
Article XXVIII
The Contracting Parties agree to hold consultations in the
Executive Council prior to signing any new treaties among themselves
which may affect free trade.
The Executive Council shall examine each case and determine the
effects that the conclusion of such agreements might produce
on the free-trade regime established in the present treaty.
On the basis of the Executive Council's examination, the
Party which considers itself affected by the conclusion of
these new treaties may adopt whatever measures the Council may
recommend in order to protect its interests.
Article XXIX
For the purposes of customs regulations relating to free trade,
the transit of goods and the application of the Central
American Standard Import Tariff, the Contracting Parties
shall, within a period of one year from the date of entry into
force of the present Treaty, sign special protocols providing
for the adoption of a Central American Standard Customs Code and
the necessary transport regulations.
Chapter XI: FINAL PROVISIONS
Article XXX
This Treaty shall be submitted for ratification in each
State in conformity with its respective constitutional
or legislative procedures.
The instruments of ratification shall be deposited with
the General Secretariat of the Organization of Central
American States.
The Treaty shall enter into force, in the case of the first
three States to ratify it eight days following the date of
deposit of the third instrument of ratification and,
in the case of the States which ratify it subsequently, on
the date of deposit of the relevant instrument.
Article XXXI
This Treaty shall remain effective for a period of twenty
years from the date of its entry into force and
shall be indefinitely.
Upon expiry of the twenty-year period mentioned in the
previous paragraph, the Treaty may be denounced by any of
the Contracting Parties. Denunciation shall take effect, for
the denouncing State, five years after notification, and the
Treaty shall remain in force among the other Contracting
States so long as at least two of them remain parties thereto.
Article XXXII
The General Secretariat of the Organization of Central American
States shall act as depository of this Treaty and shall
send a certified copy thereof to the Ministry of Foreign
Affairs of each of the Contracting States and shall also notify
them immediately of the deposit of each instrument of
ratification as well as of any denunciation which may
be made. When the Treaty enters into force, it shall also
transmit a certified copy thereof to the Secretary-General
of the United Nations for the purposes of registration as
set forth in Article 102 of the United Nations Charter.
Article XXXIII
The present Treaty shall remain open for the accession of any
Central American State not originally a party thereto.
Provisional article
As soon as the Government of the Republic of Costa Rica formally
accedes to the provisions of this Treaty, the organs hereby
established shall form part of the Organization of Central
American States (OCAS) by an incorporation agreement and the
OCAS shall be reorganized in such a way that the organs
established by this Treaty retain all their structural
and functional attributes.
IN WITNESS WHEREOF the respective plenipotentiaries have signed the present
Treaty in the City of Managua, capital of the Republic of Nicaragua, this thirteenth
day of the month of December nineteen hundred and sixty.
For the Government of Guatemala:
Julio Prado Garcia Salas
Minister for Co-ordinating Central
American Integration |
Alberto Fuentes Mohr
Head of the Economic
Integration Bureau |
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For the Government of El Salvador:
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Gabriel Pilona Araujo
Minister for Economic Affairs |
Albelardo Torres
Under-Secretary for Economic Affairs |
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For the Government of Honduras:
Jorge Bueso Arias
Minister for Economic and Financial Affairs |
For the Government of Nicaragua:
Juan Jose Lugo Marenco
Minister of Economic Affairs |
Continue on to Annexes
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