An economic organization comprising Guatemala, Honduras, El Salvador, Nicaragua, and Costa Rica. Beginning with a treaty signed by all five countries in 1960 the CACM sought to reduce trade barriers, stimulate exports, and encourage industrialization by means of regional cooperation. With a permanent secretariat at Guatemala City, its aim was cooperation with the member countries of the Latin American Free Trade Association (now called the Latin American Integration Association). During the 1970s, it somewhat lost impetus, owing to war, upheaval, international recession, and ideological differences among member states. A new tariff and customs agreement came into effect in 1986, when regional trade improved. In 1993 CACM was superseded by the Central American Integration System.