The current $550 million from the annual sales of Guatemalan products and services to Mexico could double with the entry into operation of the unified FTA between that country and the Central Americans.
Guatemalans are hoping that exports to the Aztec nation will double with the entry into force of the agreement which unifies the Mexican FTA's that were held separately with Costa Rica, Nicaragua and the CA-3.
In late 2012, one year after the signing of the new trade agreement, trade between Mexico and the region totaled $9.3 billion.
This information was released by the Mexican ambassador in San Salvador, Raul Lopez Lira. "On September 1 the Central American countries will celebrate the first anniversary of the unified treaty between Mexico and the region with a significant increase in trade ...", reported Laprensa.com.ni article.
Starting from July 1 the trade agreement with Mexico, a country with which trade reaches $10 billion per year, came into effect.
The agreement "strengthens the recognition of an extended economic zone where Central America can put more products under a single origin and continue complementing each other in the production of goods and services for export to Mexico," said Anabel Gonzalez, Costa Rican Foreign Trade Minister.
The Mexican President Enrique Pena Nieto said that approving the trade agreement between the two countries will increase bilateral trade volume.
"We hope that very soon the Congress of Guatemala will ratify it, as this will trigger trade relations to continue to grow more and more," said Peña Nieto, who during his speech at the Guatemala Investment Summit, said that in the last 12 years bilateral trade has quadrupled. "It is a relationship in the range of $2.5 billion," he said.
The Legislature approved the Free Trade Agreement between Mexico and the Republics of Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua.
A statement by the Legislature:
Del comunicado de la Asamblea Legislativa:
Con 42 votos a favor y 3 en contra, los diputados aprobaron en su trámite de segundo debate el expediente 18368 Ley de Aprobación del Tratado de Libre Comercio entre los Estados Unidos Mexicanos y las Repúblicas de Costa Rica, El Salvador, Guatemala, Honduras y Nicaragua, suscrito en San Salvador.
Sugar producers in Honduras are ready to export 20,000 tons to Mexico, once the Free Trade agreement has been ratified.
An article in Latribuna.hn reports on an announcement made "by the executive director of the Association of Sugar Producers of Honduras (APAH), Carlos Melara, after mentioning that the FTA will take effect before the end of this year. Melara explained that sugar is not currently being sold to Mexico because Honduras was excluded as a sector in the agreement that was negotiated a decade ago. "
Nicaraguan products such as leather, footwear, yogurt and other dairy products, and spices, are potential business opportunities under the unified Central America-Mexico trade agreement.
"There is a large niche in the Mexican market which is an opportunity for Nicaragua to place more and more products, to diversify their offering," said Rodrigo Melendez, manager of the economic and commercial section at the Mexican Embassy in Managua, reported LaPrensa.com.ni.
Central American countries will be able to access the Regional Integration Committee of Supplies, to supply raw materials for the development of Mexican goods, especially textiles.
After three years of negotiations, the Unified Free Trade Agreement between Mexico and Central America was signed on November 22nd 2011.
The treaty unifies standards in areas such as trade in goods, investment, services, intellectual property and resolution of disputes, for El Salvador, Guatemala, Costa Rica, Nicaragua and Honduras in their trade relations with Mexico.