In the NAFTA review carried out by the Central American and U.S. authorities, it is ruled out that the U.S. government will apply trade sanctions in retaliation for the deepening of the migration problem.
After the Trump administration pressured Mexico with the threat of increased tariffs on Mexican imports, the region has generated expectations for the planned review of the NAFTA with Central America.
Representatives from the poultry sector will meet on August 5th and 6th to discuss issues such as the elimination of chicken imports from the US.
This convention will be held at the Crowne Plaza Convention Center and the participation of over a hundred poultry entrepreneurs, representatives from universities and government authorities is expected. Among the topics to be discussed during the congress is the use of technologies, supplies and services globally applied to the domestic industry.
Arbitrators working under the framework of DR-CAFTA have ruled that Costa Rican exports within this trade agreement in El Salvador should receive the tariff preferences provided for in the text.
From a statement issued by the Ministry of Foreign Trade of Costa Rica (COMEX):
Defending the interests of the country as part of the effective administration of the treaty
The Government has launched a consultation process under the CAFTA-DR after the U.S. eliminated the dehydrated ethanol quota established in that trade agreement.
A press release from the Ministry of Foreign Affairs reads:
"The Government of Costa Rica today filed a request for consultations to the United States under the dispute settlement mechanism of the Free Trade Agreement between the U.S., Central America and Dominican Republic (CAFTA-DR).
Companies are preparing for the process of tariff reduction for imported goods and services from the United States under the FTA.
Starting 2015 various products will be able to come into Nicaragua from the U.S. tax free. Employers are now preparing for the tariff reduction process of the Free Trade Agreement between the U.S., Central America and Dominican Republic (DR -CAFTA).
Since the entry into force in 2006 of the DR-CAFTA, the tip in favor of the U.S. in the trade balance has multiplied by 5.
"The Central America to which President Barack Obama is coming to visit on on Friday is a region that maintains multiple communication vessels with the United States, including a growing trade relationship which in 2012 amounted to $40 billion, although very much in favor of the American power," reported Prensa.com.
U.S. products are arriving with certificates of origin stating they are part of NAFTA, the trade agreement between the U.S., Canada and Mexico, which means that when they enter Guatemala they lose their tax privileges from the FTA with Central America.
The Guatemalan Minister of Economy, Luis Velasquez, has submitted a proposal to the Council of Ministers of Economy of Central America (Comieco) which aims to add an amendment to DR-CAFTA on error correction mechanisms.
The government accepts ministerial queries from the USA relating to the enforcement of the country's labor laws.
The Guatemalan government's Ministry of Foreign Affairs website reports that several months ago it suggested a broad review of the free trade agreement implementation. To date it has not received a response from the Office of the United States Trade Representative in Central America.
The USA condemns the Guatemalan government for not guaranteeing acceptable working conditions or the right to form unions.
The US commercial representative, Ron Kirk, indicated that, "we want to see the Guatemalan government take specific and effective measures, including, if necessary, leglislative reform in order to reduce the systemic failings of the country's labor laws".
Annual growth in trade between Central American countries from 1960 to the close of 2008 averaged 11.7%, increasing from $30 million to $6.3 billion.
"Geography is destiny,” Napoleon would often say, and Central America is a clearly a case in point. As far as trade is concerned, the region’s countries are one, and in terms of business it is essential to take this into account.
The Legislative Assembly of Costa Rica passed modifications to intellectual property laws.
Specifically, they modified article 2 of the Intellectual Property Law, and article 8 of the Intellectual Property Observance Law.
This concludes the implementation agenda of the Free Trade Agreement between the United States and Central America.
Nacion.com reported that “these modifications increase fines for intellectual property violations and clarifies concepts related to phonograms and interpretation of musical works”.
To speed up its approval, the Executive removed the agrochemical chapter from the last law project of the FTA agenda.
This project, being discussed in Congress for 9 months now, will modify intellectual property regulations.
"The Commerce Ministry removed aspects related to the Law of Undisclosed Information, in order to avoid affecting the definition of 'pharmaceutical product', which impacts agrochemical registration", reported website Nacion.com.
Representatives from the US, CA and the Dominican Republic met in Santo Domingo to analyze the need for technical assitance for the signed in CAFTA-DR 2004.
The director of Foreign Trade and Administration of the Treaty from the Dominican Ministry of Industry and Trade, Pablo Amaury Espinal, said that one of the objectives of the meeting is for the Committee for the Strengthening of the Commercial Capacity of the FTA to present an operational plan in 2009 that will allow the signatory countries to the agreement to access more resources.
Deputy economy ministers of Central America and the Dominican Republic met in San Salvador to evaluate the region's trade agreements with other countries.
Central America and the Dominican Republic signed the Cafta accord with the United States in 2004, and the Central American countries are currently negotiating an association with the European Union.
Guatemala exported more garments to the United States and more textiles to the rest of Central America in April than it did in the same month of last year, official figures show.
In the first four months of this year, garment exports reached US$118 million, a 35 percent increase on the same period of last year.