Nicaragua is able to sell 10,163 metric tons duty free to the EU.
Altogether, the Central America's total export quota adds up to 150,000 tons.
Mario Salaverria, president of the Sugar Association of El Salvador said the decision to sell the sugar was due to "uncertainty about the problem they had with Italy and that delivery times won't allow them to make the most of this access."
The government has committed to remove the fee of 0.26% on the value of goods for inspecting cargo via scanner.
"What is (now) our responsibility is to finish reviewing what will happen with the mechanism, what the cost will be, which we are defining. We are seeing what will happen to exports, imports from free zones, what will happen with international traffic, but what is noteworthy is that what has been agreed is an elimination of the ad valorem (tax)," said President of the Superior Council of Private Enterprise (Cosep), Joseph Adam Aguerri.
With the entry into force of the Association Agreement with the EU exporters will find consumers who demand quality in products and services but at a lower price.
When negotiations began on the trade agreement in 2008, its reference point was the stability that existed at that time on the continent. However, after the economic crisis hit Europe, the outlook now is different.
In the remainder of the year Nicaragua will only take advantage of 30% of the eight million pieces of textiles that the EU has assigned it, meaning that sales will be worth just $2 million.
Dean Garcia, executive director of the Nicaraguan Association of the Textile and Apparel Industry, explained that with one quarter of the year left it will be difficult for Nicaraguan firms to find new European customers.
On 10 November, a joint mission will travel abroad to promote foreign direct investment mainly from Germany, England and France.
General Alvaro "Baltodano said that although there are European investors in Nicaragua such as the Barceló Group, the cocoa producer Ritter Sports and the automotive component manufacturer Draexlmaier, the country needs to attract more investment as part of the benefits available under the AA with Central America", reported Elnuevodiario.com.ni.
The country has the conditions to export meat to Europe at the same prices as Brazil, the world's largest producer.
This was stated by Eduardo Cohen, from the Program for Quality Controls and Sanitary and Phytosanitary Measures in Central America, funded by the European Union.
According to him, once the country has dealt with the issue of traceability, prices could reach $7,000 a ton in the EU, similar to the average of $7,361 paid by the old continent to Brazil. That price would be far from the $13,322 average paid to Argentina, or the $10,020 paid to Uruguay, but above the $2,186 paid by the EU for U.S. beef
Nicaragua, Honduras and Guatemala managed to place the product in Europe at $480 per metric ton, $120 above the price on the international market.
The auction was held under the framework of the Association Agreement between Central America and Europe. Although it was possible to place the sugar at a good price, producers had wanted to sell it for $500 per ton, said Mario Amador, general manager of the National Committee of Sugar Producers (CNPA).
Added to the 17 thousand tons that Nicaragua and Honduras can offer are 25,000 from Guatemala, which will be auctioned to buyers from the European Union.
Elnuevodiario.com.ni reports that "Nicaragua and Honduras are offering 42,000 tons of sugar in the electronic auction to be held today for the second time under the framework of the Association Agreement, or AA, between the European Union and Central America, after the first round was unsuccessful. "
FECAEXCA has submitted a regional strategy for the Association Agreement to be an effective tool of investment, business and employment generation.
From a press release issued by the Guatemalan Association of Exporters (Agexport):
Central American exporters meeting in the Federation of Chambers and Associations of exporters from Central America and the Dominican Republic, FECAEXCA, has delivered to its governmental and private initiative authorities a regional strategy for the Association Agreement to be an effective tool for investment, business and generating employment for regional countries.
International experts will give talks to the Nicaraguan livestock sector so that they can meet the requirements to export beef to the European Union.
Livestock associations slaughterhouses, drug suppliers, veterinary services and cattle feed companies will be able to participate in the workshop to be held on September 19th at the Hilton Princess between 8:00 a.m. to 5:30 pm
In the next six years, the EU will invest in regional customs strengthening which it considers essential for harnessing the benefits of the AA.
Laprensa.com.ni reports: "With the support of the Central American Economic Integration Secretariat the EU will start a Support Programme for Central American Economic Integration and Implementation of the AA".
Nicaragua and Honduras are allowed to sell 65,000 more metric tons duty-free to the European Union.
The country has given approval for both Nicaragua and Honduras to receive this benefit temporarily, until the trade agreement becomes effective for Guatemala. "The Council of Ministers of Economy and Trade for Central America (Comieco) gave authorization this weekend for each country in the region to be able to make available its quotas at will" reported Nicaraguahoy.info.
The European Union will not mediate in the distribution between the Central American countries of the sugar quota of 60,000 tonnes allocated to the region.
"The European Union will only check the total regional quota has been reached and will not intervene in how it is distributed among the five Central American countries. The distribution and quota management is an internal matter for the Central American region," said Klara Klanska, commercial counselor of the EU to Central America.
It is an issue to keep in mind to add value to Central American export products and to avoid trade disputes.
Months ago the Guatemalan Congress ratified a number of amendments to the Copyright Act in order to protect Geographical Indications and Designations of Origin as provided by the World Intellectual Property Organization (WIPO) and requested within the Association Agreement with EU.