The member countries of the Central American Integration System (SICA) agreed to promote free trade deals with the European Union (EU) and the Caricom, local media said on Thursday.

The SICA nations agreed to allow European goods to circulate within their domain without imposing tariffs from the end of 2006. This is a key condition for the EU to begin talks on a free trade agreement with the SICA.

During the SICA presidents' meeting on Tuesday, the leaders agreed to explore a free trade deal with Caribbean Economic Community (Caricom), the trade bloc formed by the Caribbean Islands, and boost cargo and passenger maritime transport to the nearby Caribbean Islands.

The SICA is to meet on May 28-29 in the Dominican Republic, along with Mexican and Colombian government officials, to discuss a plan to build a refinery in Central America.

The member nations also formally called for the Inter-American Development Bank to drop the debt owed by Nicaragua and Honduras, in their final sitting statement.

Senior government ministers from Costa Rica, Nicaragua, Honduras, Guatemala, the Dominican Republic, Panama, El Salvador and Belize attended the meeting.

Source: Xinhua