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Central American Common Market
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Central American Common Market
Economic alliance and trade organization established in 1960 by El Salvador, Guatemala, Honduras (which seceded for a period from 1969), and Nicaragua; Costa Rica joined in 1962. Panama has observer status in some areas. Although formed to encourage economic development and cooperation between the smaller Central American nations and to attract industrial capital, the CACM has failed to live up to expectations as political and social conflicts have undermined efforts at greater integration and the establishment of a common market. Its offices are in Guatemala City, Guatemala.
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