1. Restrictions on foreign exchange and the free movement of skilled workers have been eased —

ограничения на валюту и свободное передвижение квалифицированных рабочих были

19.7.1.5. Read the text “The Common Market of Central American States” and make a synopsis

of it.

Let us view the history of development of the Central American Common Market (CACM).

A Common Market of four Central American states — Guatemala, El Salvador, Honduras, and

Nicaragua — agreed at Managua, Nicaragua, in the General Treaty of Central American Economic

Integration signed in December 1960. This treaty came into operation in June 1961, and a

headquarters was established in San Salvador. Costa Rica and Panama have since also joined. Free

trade between the member countries was expected to be established by June 1966. In the event,

although duties have been eliminated on about 95 per cent of products, duties on many of the

remaining products, particularly agricultural, are likely to continue. An agreement on the Equalization

of Import Duties and Charges was made in September 1959, and subsequent agreements

have established a common external tariff on all but a small number of products. In 1961 the Central

American Bank for Economic Integration was formed to finance industrial projects, housing

and hotels in the region. In 1964 the five central banks agreed to establish, in the long term, a

common currency. The Common Market suffered a set-back by the imposition of import duties on

a number of commodities by Costa Rica in 1971 and Nicaragua in 1978. Little progress has been

made since for the setting up of the market structures. However, at a meeting in 1990 the members

reaffirmed their determination to establish the Common Market as agreed at Managua. In 1996

discussions were held on a plan for the establishment of a free-trade area within CARICOM.

Commentary and Notes to Text 19.7.1.5

1. An agreement on the Equalization of Import Duties and Charges — соглашение об уравнивании

импортных пошлин и сборов

2. to suffer a set-back by the imposition of import duties — потерпеть неудачу из-за введения

импортных пошлин

Caribbean Community and Common Market ( CARICOM)

ослаблены

The Common Market o f Central American States

19.7.2. Match the following terms with the correct definition

Work with a partner.

1. most-favoured-nation clause

2. generalized system of preferences

3. barriers to entry

4. taxes, import

5. import restrictions

6. subsidy

a) Economic or technical factors which prevent or make it difficult

for firms to enter a market and compete with existing

suppliers.

b) Government grants to suppliers of goods and services. A subsidy

may be intended to keep prices down (i.e., to raise real

incomes of buyers), to maintain incomes of producers (e.g.,

farmers) or to maintain a service or employment (e.g., subsidies

to British Rail or the Rover Automobile Group).

c) Restrictions on the importation of products into a country

may be effected by means of tariffs, quotas or import deposits,

and are generally imposed to correct a balance of payments

deficit.

d) The clause in an international treaty under which the signatories

promise to extend to each other any favourable trading

terms offered in agreements with third parties.

e) The elimination or reduction of import tariffs by the advanced

countries on specified products exported by approved developing

countries. The scheme was first introduced in 1971. The