As a result of the blockade that has been in place since July 2020 on the entry of animal products from Costa Rica into the Panamanian market, Costa Rican exports to Panama are reported to have fallen and companies such as Dos Pinos are reporting losses in the millions.
The trade conflict began when Panama informed the National Animal Health Service (SENASA), an agency of Costa Rica's Ministry of Agriculture and Livestock (MAG), of the decision not to extend export authorization to a list of previously authorized Costa Rican establishments that have been trading in the Panamanian market for many years.
Unless intra-regional trade in chemical contents and residues, micronutrients and food preparations is regulated in a balanced manner, trade relations in Central America could face obstacles in the future.
Trade between Central American countries is essential, since a considerable proportion of foreign sales by local companies are destined for other markets in the region.
The impact of the covid-19 crisis on the wholesale sector in Central America is predicted to be explained, to a greater extent, by the expected drop in trade in disposable items.
The "Information System for the Impact Analysis of covid-19 on Business", prepared by the Trade Intelligence Unit of CentralAmericaData, measures the impact that the crisis will have on companies according to their sector or economic activity, during the coming months.
During the fourth quarter of 2019, Walmart's sales increased year-on-year in all countries in the region, except in Costa Rica, where they fell because of the lower dynamism of local economic activity.
The signs of recovery reported in the Costa Rican economy in the second half of 2019 do not seem to have been enough to boost retail trade, as one of the largest supermarket chains is registering a drop in sales.
Given the rise of online commerce to the detriment of traditional channels, the contact point between customers and brands is packaging, which must meet the demands of consumers, who are increasingly responsible for the environment.
Studies carried out by companies that provide courier services, detail that in a context of booming e-commerce, 90% of companies believe that in the coming years packaging will be more important, in the area of sustainability and in reducing carbon emissions.
Between January and October 2019, imports of Capital Goods reached $2.853 billion, 5% higher than reported in the same period of 2018.
Total imports reached $16.582 million, $124 million (0.8%) higher than October 2018 ($16.458 million). The increase in imports was mainly influenced by the positive variation observed in Non-Durable Consumer Goods with a $148 million (5.1%) increase as well as in Capital Goods for Industry with a $117.1 million (5.4%) increase, informed the Banco de Guatemala.
On November 14, the Superintendence of Telecommunications of Guatemala will auction a short number, which is used by commercial entities to provide advertising services, information, assistance and services.
So far, 56 four-digit telephone numbers have been auctioned in the country and the next one to be made available to companies will be 1710, which may be used as a routing mask to an eight-digit number.
Up to October, foreign sales totaled $8.978 million, almost 3% less than in the first ten months of 2017, and the main reason for the decline is the fall in international prices of some agricultural products.
The Banco de Guatemala reported that the most important products according to their participation in the total value of exports were: Clothing with US$1,209.4 million (13.5%), Banana with US$678.1 million (7.6%), Coffee with US$647.1 million (7.2%), Sugar with US$545.4 million (6.1%) and Fats and edible oils with $457.9 million (5.1%).These products represented 39.5% of total exports.
Petroleum products, iron and steel, food and pharmaceutical products, headed last year's purchases from companies in the South American nation from Central American countries.
Figures from the Central American-Ecuador Trade Information System complied by the Business Intelligence Unit at CentralAmericaData: [GRAPHIC caption = "Click to interact with the graph"]
Plastic articles, pharmaceutical products and food preparations last year led the commercial exchange between companies from the Caribbean nation and Central American countries.
Figures from the information system of Commerce between Central America and the Dominican Republic, compiled by the Trade Intelligence Area of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
Although in the first nine months of the year foreign sales fell almost 3% compared to the same period in 2017, the Banco de Guatemala forecasts that the trend will be reversed by the end of 2018.
The fall in the international prices of sugar, coffee and natural rubber, largely explain the decline in income from sales abroad. According to figures from the Banco de Guatemala (Banguat), up to September, foreign sales totaled $8.147 million, 2.6% less than the figure recorded in the first nine months of last year.
Fuels, plastic goods and pharmaceutical products led last year's imports made by Central American companies in the South American nation.
Figures from the information system of Commerce between Central America and Colombia, from the Trade Intelligence Area of CentralAmericaData:[GRAFICA caption="Click to interact with graphic"]
During the first eight months of the year, the Central American country generated $600 million in sales to Eurozone countries, 4% more than reported in the same period of 2017.
According to figures from the Bank of Guatemala, the Netherlands is the destination of Guatemalan exports that showed the greatest dynamism between January and August, with sales of $235 million, an increase of 14% over what was reported in 2017.
With the aim of strengthening the legal framework for electronic commerce and facilitating the management of certifications, the Electronic Commerce Association was created in Guatemala.
The new chamber will be able to affiliate all types of companies, and its main purposes are strengthening entrepreneurship, specialized training through certifications, and the promotion of rules and legal regulations for the sector.
Guatemalan exporters plan to boost their exports to Asian countries through the creation of a working table that will analyze trends of products that are in demand and company profiles.
With the aim of increasing business opportunities in Asia, the exporters' association will be working on the development of new export promotion strategies with local companies and the Taiwanese embassy.