China-U.S. Relations: Opportunities for the Region

In the context of the tense diplomatic and commercial relationship between the two world powers, Central American countries could have the opportunity to attract new investments, as it is estimated that some American companies would need to migrate their operations to the American continent.

Wednesday, June 3, 2020

As a result of the tension between the two nations, Mauricio Claver-Carone, an advisor to President Trump, believes that U.S. capital, which currently generates thousands of jobs in China, will turn south of the U.S. borders.

Claver-Carone explained to Prensalibre.com that "... This is an opportunity for Guatemala and the rest of the region since due to this crisis with China we are encouraging companies to return to the U.S. and look south."

According to the official, if the supply chains that bring inputs or raw materials to the U.S., which for decades have flowed eastward, turn southward, they will contribute to his country's national security, since they will generate economic development and reduce the migration of Central Americans.

"... Guatemala has a very good financial system, which gives some support to the creation of more companies in different sectors, such as textiles, energy, electronics, which would be very important," Claver-Carone told the Guatemalan media.

For Juan Pablo Carrasco, president of the Guatemalan-American Chamber of Commerce (Amcham), "... Guatemala has an advantage over other countries in the region because it is strategically located with the United States, because of its proximity and because it has access to the sea on both the Atlantic and the Pacific, which would facilitate the transfer of products to any part of that country."

The issue of opportunities for the region in this context of economic warfare is not new, since in August 2019 CentralAmericaData reported that vegetable production, clothing, footwear and the plastic industry are some of the sectors in which countries like Central America could attract investment.

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More on this topic

Geopolitics and the Future of Central America

November 2020

The next U.S. president is not yet known, but in the region it is expected that in an eventual new Trump administration, the focus will be on the recovery of the U.S. economy, while an eventual Biden administration would focus on countering corruption and illegal migration.

Two days after Election Day took place, the United States is experiencing an atmosphere of tension and uncertainty, since because the results are closed, neither candidate can yet be declared the winner.

U.S. Plans for the Region

December 2019

The Trump administration plan will be aimed at 30 countries of the continent and is called "America Crece", and consists mainly of the development of private investments, granting loans and sale of natural gas surpluses.

The U.S. government's objective is that, with the application of América Crece, job creation will be facilitated through the development of infrastructure in airports, ports, highways, digital networks and telecoms, but the big bet will be energy projects.

Trade War and its Opportunities

August 2019

The conflict between the U.S. and China could lead to business opportunities for companies in the region as a result of the tariff policies being implemented by the two world powers.

The trade war between the United States and China, two of the world's largest markets, is essentially about the authorities imposing tariffs on a number of products that both countries produce and sell abroad.

Tariffs to Mexico: Opportunity for the Region?

June 2019

The plan to impose a 5% tariff on Mexican products entering the U.S. would open up opportunities for Central American countries to increase their sales to the U.S., but there are fears that similar measures could be taken against the region.

On May 30, President Trump announced on his Twitter account that he plans to impose a 5% tariff on Mexican products entering the U.S.

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Caribbean Central American Action

Caribbean-Central American Action (CCAA) is a private, independent organization that promotes private sector-led economic development in the Caribbean Basin and throughout the Hemisphere.
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