So far this year, 17 new company licenses have been approved in the country under the Multinational Companies Headquarters regime, a figure that is higher than the 7 that were reported throughout 2018.
In addition to the 17 companies that already obtained their licenses in 2019, there are 7 other companies that are in the phase of evaluation by the Commission of Headquarters of Multinational Enterprises of the Ministry of Commerce and Industry (MICI).
The value of the investments that the country has lost in the last five years, has been estimated at $1 billion, due to factors such as high production costs and poor infrastructure, which is having a deteriorating effect on competitiveness.
A study prepared by the CABI at the request of the union of exporting companies concludes that both Guatemalan and foreign companies have opted for neighboring markets such as Nicaragua, Honduras and Mexico in which to make their investments, instead of Guatemala. Production costs, the minimum wage, higher than in other countries of the region, and the deteriorated road infrastructure are some of the factors that have impacted the loss of the country's competitiveness with respect to similar markets in the region.
Within the conditions to operate under the Multinational Enterprise Headquarters regime in Panama, the requirement for a worldwide number of employees has been changed to instead include a requirement to have a presence in more than 40 countries.
From a statement issued by the Ministry of Trade and Industry:
The Ministry of Commerce and Industries (MICI) wishes to inform the public that the Multinational Enterprises Licensing Commission (SEM) has drafted and approved a new resolution replacing the requirement for a worldwide number of employees for a requirement to have a presence in more than 40 countries.Resolution 19-17 was repealed in its entirety.
Amcham said that the lack of a clear strategy to attract foreign investment and uncertainty over key issues such as the emergent employment law are causing the country's business climate to deteriorate.
The views of the main chamber of foreign companies in the country do not coincide with those of Banco de Guatemala, which anticipates growth of 8.5% in foreign investment flows.In the view of Juan Pablo Carrasco, vice president of the Guatemalan Chamber of Commerce (AmCham), "... 'these figures are not realistic."What has happened specifically in the mining sector, with thesuspension of seven projects in a week, has affected the investment climate among foreign companies.
Chambers of developed countries and their ambassadors in El Salvador are warning that expressions made by members of government against the decisions of the Constitutional Court threaten the arrival of more foreign investment.
Added to the demonstrations against some decisions of the Constitutional Court on the part of authorities is also the inability that the government has shown to implement effective measures against insecurity, lack of speed in the definition and implementation of much needed infrastructure and no long-term plans.
The Executive argues that foreign companies planning to invest in the country desist from doing so if they are not provided with tax incentives and the possibility of paying differentiated wages.
The Government is continuing to put pressure on Congress to approve the Investment and Employment Act which has been temporarily suspended due to several actions of unconstitutionality presented before the Court.
In light of questions raised about a private organization receiving state funding, the CINDE wishes to demonstrate its position and the concrete results of its stewardship in attracting foreign investment.
From a statement issued by the Costa Rican Coalition for Development Initiatives (CINDE):
• CINDE has existed for over 32 years, as an organization responsible for attracting foreign direct investment (FDI) to Costa Rica.
In Costa Rica a proposal has been made to implement free zone regimes linked to universities with internship programs in companies.
The Ministry of Foreign Trade of Costa Rica plans to implement free zone models in Guanacaste linked to universities such as the Earth and Invenio Universities, both located in areas which are far away from the greater metropolitan area.
Under the benefits granted by the law 41 of 2007 to date, 96 Multinational Enterprises have registered in the country, and the figure is estimated to reach 100 by the end of 2013.
This was confirmed by the Deputy Minister of Foreign Trade, José Pacheco. He explained that currently they are analyzing a group of companies interested in applying for the benefits for multinationals, " which we expect to evaluate and submit to the Licensing Commission soon, and we are confident that we will reach our goal."
Europe wants a more ambitious agreement with Latin America to ensure the protection of investments in the region.
"The European Union would like to have "more ambitious" protection of foreign investment in Latin America as expressed in the last summit meeting with the Community of Latin American and Caribbean States (CELAC), said the EU representative in Uruguay, the Spaniard Juan Fernández Trigo ", noted an article in Economía.elpaís.com.
Over the past 12 years, at least 10 of the country's largest industrial companies were acquired by foreign capital.
Rafael E. Berry, in his analysis in Panama America, details how from 2000 to date some of the largest Panamanian industries were acquired by foreign groups, including the National Brewery ($ 260 million), Cervecería Baru Dairy Industries ($ 220 million), and others like the largest manufacturer of bottles and companies from the food sector.
Recognized Brazilian company of backhoe loaders, telescopic, articulated and other types of cranes looking for companies interested in representing the brand and distributing their machinery in Central America and Mexico. The company manufactures and sells telescopic,...