Central American Countries Adopt “Open Skies” Plan

Leaders of Guatemala and El Salvador met last week to announce the finalization of an “open skies” agreement, which went into effect on January 23. The agreement effectively makes all flights between the two countries domestic, removing all restrictions associated with international flights. The strategy was designed to promote tourism and greater economic integration between the Latin American neighbors by decreasing costs associated with taxes and movement restrictions.

The new agreement comes in the opening days of Guatemalan President Alejandro Giammattei’s administration and represents an early win for him. Greater international economic integration was an issue he emphasized in his campaign. Upon signing the agreement, President Giammattei explained that it offered “infinitely many possibilities for better trade,” and the opportunity for “a much faster border crossing.”

Another key piece of the agreement is the promise to remove restrictions on trade and border customs in the future; within 30 days, the two nations will allow free movement across their borders, similar to the European Union’s system. They will also remove all customs requirements over the course of the next 90 days in an effort to facilitate greater trade and stimulate economic activity. Both countries have experienced moderate GDP growth in recent years—3.1 percent in Guatemala and 2.5 percent in El Salvador, according to the World Bank’s most recent measurements—but human development remains comparatively low. Continuing problems with corruption, inequality, poverty, and violence have led the United Nations to rank El Salvador 124th and Guatemala 126th in the world for human development.

The agreement itself did not address security and immigration concerns, but leaders did discuss those issues as part of a future collaboration among all Central American nations. According to Voice of America, President Giammattei called on other countries to join in future collaborative action in order to more effectively combat organized crime and drug trafficking. He also expressed his belief that economic pull factors can stop the waves of migration leaving the country, saying that “walls of prosperity” will keep them from leaving.

His rhetoric has been successful to some extent, as new countries are already seeking to join in future agreements with Guatemala: Costa Rica now seeks to make a similar agreement, and Guatemala has already signaled its mutual interest in promoting trade to millions of people in new markets throughout Central America. Honduras is also negotiating terms for a similar treaty of its own, further expanding the network of integrated economies in Central America.