Competing with multinationals under DR-CAFTA requires companies to comply with all the necessary processes to protect their brands, processes and products.
The arrival of multinational companies in Central America competing in legal equality with local or regional firms as a result of DR-CAFTA, highlights gaps in legal implementation and best practices for business on issues such as the protection of trademarks and intellectual property. In an analysis piece by Nacion.com, the need for companies and entrepreneurs to protect the product development process, their formulation and their brands is highlighted.
A meeting is being convened for the textile and clothing industry on March 16 in El Salvador, where the overall situation in the sector will be discussed.
From a statement issued by Proesa:
El Salvador is preparing for the third edition of the Forum of Textiles and Apparel (FOROTEX) 2016, a space where high-level international speakers present trends and strategies for competing in international markets.
In 2016 scheduled tariff reductions for rice imports begin as part of the DR-CAFTA, posing a threat to local producers.
Nicaraguan rice producers have pointed to the efforts made by the sector to achieve self-sufficiency in supplying the local market, and report that the main competitor unleashed by this tariff reduction is the US which they point out subsidizes rice production.
From January 2016 import tariffs will start to be phased out on chicken, rice and milk from the USA, reaching 0% in 2022 and 2025, under the DR-CAFTA agreement.
In Costa Rica local producers say they have been preparing for this for several years, but the country's loss of competitiveness due to high production costs and lack of action by the government to improve on this might prevent them from competing on equal terms.
Representatives from the poultry sector will meet on August 5th and 6th to discuss issues such as the elimination of chicken imports from the US.
This convention will be held at the Crowne Plaza Convention Center and the participation of over a hundred poultry entrepreneurs, representatives from universities and government authorities is expected. Among the topics to be discussed during the congress is the use of technologies, supplies and services globally applied to the domestic industry.
The Under Secretary of Commerce in the United States sees no need for renewal of preferential tariff arrangements, which up to now have favored Nicaragua's textile industry.
Statements by the senior official of the Obama administration fell like a bucket of cold water over textile entrepreneurs, who claim that without the renewal of TPL, production costs will increase by up to 40%.
Nicaraguan businessmen have proposed that Central America as a whole operates a preferential tariff treatment in the US for imports of textiles in the region.
After trying to negotiate, through several formats, tariff preference levels (TPL), so far unsuccessfully, textile entrepreneurs are now appealing to the union of the region to address the issue with the US once again.
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