Lack of official results from the March 1st elections creates uncertainty among employers and undermines the country's image as a destination for foreign investment.
Representatives from the Salvadoran Association of Industries (ASI) argue that "... the political environment in the country could deter foreign investors. " In addition, this could affect the disbursement of Fomilenio II.
According to the Salvadoran Association of Industrialists (ASI), the government is not providing the right conditions in the country for the economy to grow, but, on the contrary has adopted tax reforms, which do not contribute its reactivation.
Industrial unions are pointing to "constant and unnecessary" confrontations between Funes and employers which is degrading the investment climate.
The President of the Salvadoran Association of Industrialists (ASI) accused Mauricio Funes of a "lack of investment" in the country, and that his statements undermine the climate of confidence needed to attract investment.
The main issue of concern is the slow pace of intraregional trade, which in particularly is hindered by customs offices in the isthmus.
The quarterly meeting of the executive directors and presidents of the Federation of Chambers and Industry Associations of Central America (Fecaica) showed the concern of the sector over measures such as the charging at offices in El Salvador of an $18 fee for the service of scanning the cargo passing through.
The Salvadoran industrial sector believes the dam would enlarge the energy matrix, satisfying domestic demand and reducing costs.
According to Javier Siman, president of the Salvadoran Association of Industrialists (ASI), one of the leading production costs which has risen in the last five years is energy. According to the official, this determines investment margins and upgrading of enterprises, therefore it is calling on the Executive to expedite the conclusion of this work to avoid a case similar to that of the port of La Union.
Industrialists are urging early approval in order to eliminate investor uncertainty about the new regime that will prevail in the country.
The reform of the law on free zones in El Salvador must be current in 2016, as the World Trade Organization (WTO) has set a deadline for the country of December 31, 2015 to change its regime internationally eliminating incentives which are considered unfair competition.
Businessmen from various sectors are demanding regulation by the government of several existing laws, which allow for different interpretations and legal uncertainty.
Elmundo.com.sv reports that "representatives of the Salvadoran Association of Industrialists (ASI), the Salvadoran Chamber of Construction (Casalco) and the Corporation of Exporters of El Salvador (Coexport), said that the lack of regulations or breach of these in many laws intended to raise productivity, is generate the opposite effect from the original objective. "
Beyond the new laws to promote domestic and foreign investment, the government must demonstrate the existence of legal security in El Salvador.
An article in Diario El Mundo reports that "The reform package that the government recently introduced to encourage domestic and foreign investment in the country, yesterday received the backing of the business association although they say there is still a lot to be do done."
"Nothing threatens stability as much as lack of respect for the law. No one invests in an unstable country," Javier Siman, president of ASI.
An article in Elsalvador.com reviews a speech by the president of the Salvadoran Association of Industries (ASI), which criticizes "the ongoing confrontation between the Legislature and the Supreme Court, and the government and private enterprise."
Such was the Salvadoran businessmen's response to a proposal by President Funes to create jobs for gang members.
Employers are willing to contribute to the safety of El Salvador, but the president of the Salvadoran Association of Industries (ASI), Javier Siman said it was "ironic that we are giving priority for jobs to gang members."
The Manufacturers Association of El Salvador is urging the Government to make changes to the legal framework that regulates the electrical system.
The current legislation does not give priority to supplying the system with power generated from renewable sources, limiting investment in such projects.
Javier Siman, president of the Salvadoran Association of Industries (ASI), said that electricity prices are not competitive to the extent that 50% of the generator matrix depends on of energy from oil. "As the worldwide economy starts growing oil will become more expensive and it will affect us. We have to rely less on oil-based energy, and rely more on energy sources such as solar, geothermal, biomass and wind power," he added.
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