CENTRAL AMERICA AND MEXICO
REGIONAL PROGRAM OVERVIEW

Worker on a Rainforest Alliance certified banana plant in Honduras.  Photo by Rainforest Alliance.

The USAID Central America and Mexico (E-CAM) Regional Program, which follows the Central American Program (G-CAP), managed for many years by USAID/Guatemala, is moving to USAID/El Salvador management over the 2005-2006 period.  This Mission will manage two strategic program areas under the CAM regional strategy: 1) Economic Freedom, and 2) Timely Humanitarian Assistance and Crisis Response.  Recognizing the importance of the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), USAID is funding several activities to help prepare Central American countries for the challenges related to implementation.  The regional HIV/AIDS Program, which contributes to the CAM strategic program area, Investing in People, will continue to be managed by USAID/Guatemala.

Economic Freedom: Open, Diversified Expanding Economies.

The Central American countries want to work together for economic integration and to find regional solutions in order to compete more effectively in international markets. CAFTA-DR is expected to assist the region in accomplishing these goals. Under this objective, USAID regional assistance will focus on promoting open, diversified and expanding economies throughout the region.  The principal results expected by the end of the program period are: increased trade; new jobs and economic opportunities leading to increased incomes for Central American and Mexican citizens; labor justice modernization and voluntary compliance with labor codes; and improved management of critical watersheds and natural resources.  These results will be achieved by helping CAM countries implement free trade agreements, including CAFTA-DR, improve the business environment and enterprise competitiveness, broaden access to financial markets and services, and improve environmental compliance and practices.  

To assist CAM countries implement free trade agreements, including CAFTA-DR, USAID activities include support for: the establishment of a regional customs union; the harmonization of commercial, sanitary and phytosanitary standards and other laws; and the implementation of policies, regulations, and standards essential to the implementation of international trade agreements.  Trade activities also include measures to facilitate increased intra-regional trade, while improving labor conditions in Central American workplaces, notably through improved labor justice and adoption of voluntary labor standards. 

To improve the business environment and enterprise competitiveness in the region and broaden access to financial markets and services, USAID is concentrating on a set of rural diversification activities that include certifying environmentally friendly products for small and medium entrepreneurs.  Products include wood, coffee and fruit for export.     

Improved management of critical watersheds will be achieved by securing the financial sustainability of protected areas in these critical watersheds, consistent implementation of watershed management plans, and increased use of private voluntary mechanisms.

Investing in People: Healthier, Better Educated People.

The regional HIV/AIDS program, managed by USAID/Guatemala, will support efforts to contain HIV/AIDS through targeted behavior change activities for populations who are most at risk through implementation of HIV/AIDS prevention programs, improved HIV/AIDS policies, and surveillance and data collection and analysis for decision making.

Timely Humanitarian Assistance and Crisis Response.

USAID’s regional assistance program will support activities to monitor and assess Central America’s food availability and vulnerability to food insecurity as a result of natural disasters and other hazards, such as lower incomes resulting from a collapse in coffee prices. In support of this objective, USAID will continue to finance the Mesoamerican Famine Early Warning System (MFEWS) to build local and regional capacity for early warning, food security assessment, and food and non-food emergency responses, and to provide early information to decision makers and the general public regarding potentially significant crop loss, other food shortfalls and negative socioeconomic conditions.