Tuna companies are hoping that the 4,000 metric ton quota for export to Europe will be distributed proportionally.
The Spanish company Calvo, which operates processing and canning plants for the fish, has expressed interest in having the largest possible proportion of the quota of 4,000 metric tons of tuna available for export to the Europe region.
This quota was allocated under the Association Agreement negotiations between the Isthmus and the European Union.
The Generalized System of Preferences (GSP +) will extend for a further two years from 2012, until the Association Agreement with the EU becomes active.
The director of trade policy at the El Salvadoran Ministry of Economy, Carlos Moreno, said that once the country’s Assembly has ratified the Association Agreement with the EU, the GSP + will lose its scope.
New investments in the sector are pending the approval of El Salvador's new tax-free zone law.
According to the Salvadoran chamber of textile manufacturers (CAMTEX in Spanish), the reforms being considered by the government comply with all the demands made by the World Trade Organization (WTO).
"However, CAMTEX director, Patricia Figueroa, comments that until the reforms are finally approved by congress the investments will not get the green light," reports Laprensagrafica.com.
A reform of the Intellectual Property Act introduces a new category to protect geographical indications.
A geographical indication is a category used for products that have a specific geographical origin and possess qualities or a reputation due to that place of origin. Generally, a geographical indication consists of the name of the place of origin of products.
Economy Minister Hector Dada and the president of the Salvadoran Association of Industrialists Javier Siman, have released a document entitled "Industrial Policy 2011-2024."
A press release by the President of El Salvador reads:
Government and businesses back new industrial policy as a tool for economic development
The Government of the Republic today introduced the Industrial Policy 2011-2024 jointly backed by business to revitalize and transform the economic sector and contribute to national development.
A change in the incentives for foreign investment is needed in order to remain competitive in respect to other countries in the region.
The modernization of the law on free zones, which countries like Costa Rica reshaped in 2005, for the purpose of improving incentives to attract foreign companies is still in process in El Salvador.
The discussion to reform the law goes back to earlier this year, when the private sector, represented mainly by the textile sector, which accounts for 75% of companies operating under the free zone regime, began reviewing the law with the government .
Government and private company representatives have achieved an 80% consensus on the new draft law on Free Zones.
So says the executive director of the Chamber of the Textiles, Clothing and Free Zones (CAMTEX), Patricia Figueroa, without providing specific details on the proposals.
An article in Laprensagrafica.com quotes the executive as saying "However, both the government and the private sector have agreed that the new incentives to the sector are linked to the investment that companies make in social responsibility projects (CSR),"
Proposed reforms to the country's Acquisitions and Contracts law, combined with a $1.4 million investment, would enable MSEs to bid for government contracts.
If the bill is approved by congress, the government procurement, acquisitions and contracts law (known as Lacap in Spanish) MSEs would obtain 12% of state purchases.
El Salvador's Ministry for the Economy, in partnership with the country's commission for micro and small enterprises (MSEs), is holding meetings with businesses with the aim of training them in public procurement processes.
The Salvadoran President ruled out the possibility of freezing fuel prices which have reached $ 5 a gallon.
When asked about the additional increase announced by the Ministry of Economy, Funes said: "We will not issue a decree to freeze prices. We do not want to intervene abusively in the market (...) the Economic team is working on a solution to the situation."
Companies associated with the Chamber of Tourism will benefit from technical assistance by the Ministry of Economy.
The Ministry of Economy signed a joint action and cooperation agreement with the Salvadoran Chamber of Tourism (CASATUR), within the framework of the Inventa Platform, entitled: "Sector Cells Transfer."
The goal is mutual cooperation in formulating, managing and implementing projects related to Innovation and Technological Development of the tourism industry.
Government officials announced a $ 4 million fund to strengthen performance of MSMEs.
Mario Cerna, Vice Minister of Commerce and Industry told the media: "It is a state investment in micro, small and medium businesses looking to become more efficient, that is to reduce costs and produce more, but also implement technology in their production processes, including helping them to innovate their products."
The Economy Ministry will submit the draft to the Legislative Assembly during the first half of 2011.
According to representatives of the private sector the project is 90% complete.
"The World Trade Organization (WTO) determined, after two extensions, that the country should, by 2015, replace the incentives for the establishment of enterprises operating in free zones, as stipulated in current laws.
The program allocates $ 28 million for a total of 21 instruments to benefit exporters.
Mario Cerna, Vice Minister of Commerce and Industry in the MINEC, said half of the resources will go to "non-reimbursable funds for co-financing of all types of business."
Laprensagrafica.com outlined in their article: "The rest of the money will be divided between efforts to promote export products and returns associated with the purchase of supplies and other components to boost the sector. In the coming years it is expected to maintain the amount of resources or increase them."
The proposed new formula serving as reference for fuels could start in late January.
Carlos Aquilino Duarte, director of Hydrocarbons for the Ministry of Economy, stated that due to problems in the development of software for collecting and processing data, they had to postpone the start until the end of the month.
"According to the official, the most significant change in the new mathematical equation is the elimination of some additional costs such as fees when paying with credit card, which is part of the distributors cost. Another major change is that in the current formula the profit margins by both distributor and Oil Company are put together and divided later, but this mechanism has caused a series of problems between both parties. Now, profits are separated on the basis of a financial model establishing a rate of return, which is calculated based on the operating costs of both parties," reports the article in Elsalvador.com.