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.
Costa Rica will be able to import 204 Mexican products under better conditions when the new version of the FTA between Mexico and Central America comes into effect.
From the study "Identification of inputs required by Costa Rican Exporters importable from Mexico" by the Costa Rican Foreign Trade Promotion Office (Procomer):
A total of 204 subheadings, can be viewed as potential opportunities for exporting companies in our country who will find better conditions regarding these inputs in Mexico.
Costa Rican exporters view positively the inclusion of new products to the FTA with Mexico, with the possibility of establishing regional production chains.
Some of the products that will be incorporated into the trade agreement are sugar, iron and steel sheets, gelatin powder, cigarettes, chicken sausages, jellies and fruit pastes. In addition, also agreed was trade in raw materials such as yogurt and powdered sour cream and hydrolyzed vegetable protein.
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.
Representatives of the Honduran Council of Private Enterprise urge the export sector to make the most of the Free Trade Agreement between Central America and Mexico.
The treaty was ratified by Congress in July 2012 and its effective date supersedes the one signed in June 2000 (Triángulo Norte).
In the last ten years, trade between Mexico and the Central American countries has increased by approximately 143%, according to figures from Cohep.
The Legislature has approved on the first reading the FTA with Singapore and the modernization of the Free Trade Agreement with Mexico.
A statement from the Foreign Trade Ministry (COMEX) reads:
On 21 December last year the Legislature approved, on first reading, the FTA with Singapore and the modernization of the Free Trade Agreement with Mexico.
Foreign Trade Minister Anabel González, recognized the work of the deputies and described this as an important step to strengthening and expanding the Costa Rican foreign commerce platform. "We recognize the feedback from this afternoon as a boost to link Costa Rica with the global economy. Both treaties represent benefits for the country in different areas. Singapore is a service-based economy, which opens up opportunities for various Costa Rican companies and represents a window for cooperation on technological development, research and exchange of information. With Mexico we are conducting a convergence process in order for the treaty to respond to current trade and production conditions", said Minister Gonzalez.
With the ratification of the Free Trade Agreement (FTA) a good market opens up to Honduras for palm oil, textiles and sugar.
So stated Mexico's ambassador in Honduras, Hugo Morales before the ratification of the FTA by the Honduran congress. "What is in the most demand by Mexico is palm oil which Honduras produces in great quanitites along with manufacturing derivatives, like sugar."
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.
The first countries to enforce this Unified Agreement will be El Salvador, Nicaragua and Mexico and the other countries of the region are still in the process of ratification with the Legislature.
A press release from the Ministry of Economy of El Salvador (Minec) reads:
Starting from September 1 the new unified FTA between Central America and Mexico takes effect, under which the three FTAs that Mexico had to date with Costa Rica, Nicaragua and the Northern Triangle (Guatemala, El Salvador and Honduras), are consolidated into one agreement.
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.
The Mexican Senate has unanimously approved a Free Trade Agreement (FTA) with Central America.
The treaty provides a common legal framework for the conduct of trade in goods and services between the parties, as well as the establishment of investment in the region.
"The trade agreement signed on 22 November in El Salvador, states that in 2012 tariff elimination commitments must be adhered to and most of Mexico's trade with these countries will be free of taxes", reported EFE.