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.
As a result of the tension between the two nations, Mauricio Claver-Carone, an advisor to President Trump, believes that U.S.
For the Guatemalan business sector, the decision by Congress to vote against the bill granting the concession to rehabilitate and operate the Escuintla-Puerto Quetzal highway "sends a negative message to potential investors."
The first positions emerge after learning that the Congress of the Republic buried the road project to rehabilitate and administer the highway Escuintla-Puerto Quetzal with toll collection, which would be granted in concession to the Consorcio Autopistas de Guatemala, under the format of Public-Private Partnership.
Alejandro Giammattei, elected president of Guatemala, will propose to the authorities of the North American country that a special economic zone covering both sides of the border be developed.
Guatemala's president-elect is wasting no time, since four months after taking office, he is already making investment proposals to neighboring countries. In this case, he will do so in Mexico, where on September 20 he will meet with Lopez Obrador and will deliver a file on the issues he proposes to work on in the coming years.
One of the decisions taken by Guatemalan businessmen with interests in Nicaragua is to suspend new investments until the situation in the country is normalized.
Due to the social and political situation that the country has been experiencing for more than three months, Guatemalan investors that operate companies in Nicaragua have been analyzing the situation closely, and are already taking measures to minimize the impact of the crisis on businesses. One of the decisions that some companies have taken is to reduce the cost of the operation to the lowest possible level, in order to maintain or reduce product inventories.
Israeli government officials have announced that they plan to invest close to $2 billion in various businesses in the sectors of agriculture, medicine and education.
The investment will be made through the Guatemalan-Israel Fund for Investment and Development in Guatemala, and this seeks to make the Central American country the center of Israeli business in the region.
The bureaucratic procedures and permits required by the Cuban government and some restrictions on the establishment of companies could represent obstacles for foreign businessmen interested in investing on the island.
Although in Cuba there exists sectors such as telecommunications and construction, which have high growth potential due to a backlog in investment, those who are knowledgeable about the real situation in Cuban say that it will be difficult to take advantage of these opportunities, at least for now.That is the perception of the former ambassador of Costa Rica in Cuba, Rodrigo Carreras, who in an interview with the newspaper Nacion.com, detailed the conditions of the economy of the island and the difficulties that could be faced by entrepreneurs interested in doing business there.
Fewer and fewer employers want to visit Guatemala in trade missions due to the insecurity plaguing the country.
"It's costing us a lot to bring business missions over because of the insecurity in the country. They say they have seen news and alerts in their countries and therefore do not want to visit us," said Carolina Castellanos, executive director of the American Guatemalan Chamber of Commerce.
UK Entrepreneurs are considering whether to invest in the inter-oceanic corridor project in Guatemala.
According to statements (confirmed by CentralAmericaData.COM) by the British Ambassador in Guatemala, Sarah Dickson, "British companies are going to see the opportunities offered by connecting the Pacific with the Atlantic in this way." The project "is very much in line with our G8 presidency (Germany, Canada, the USA, France, Italy, Japan, the UK and Russia), it is a way to use global trade and we are very interested. "
It has been two months since the Investment Summit 2013 was held in Guatemala and two investment projects have materialized totaling $109 million.
These are the construction of a hydroelectric plant in Rio Hondo, Zacapa, capable of generating 32 MW and a mushroom production plant in Salcajá, Quetzaltenango. What is more, during the next three years it is expected that another $225 million will be generated in new projects, making a total of $334 million.
Honduras, Guatemala, Nicaragua and El Salvador attract investment based on the exploitation of natural resources and unskilled, but cheap, labor.
A report by the Central American Institute for Fiscal Studies (ICEF), reveals that Central America recorded last year $9.70 billion in foreign direct investment (FDI), with Panama and Costa Rica being the recipients of about 60% of these flows.
Rumors are that the U.S. Federal Reserve is preparing to reduce its bond purchase program, motivating the sale of bonds in emerging markets.
"A rise in bond yields in developed markets and a better prognosis for the U.S. economy are making bonds from the emerging countries, from Turkey to Chile, seem less attractive. On Friday, currencies, bonds and shares in these markets fell significantly," noted an article in Wsj.com.
The phenomenon affects much of Latin America, whose countries spend on average 8% of their GDP on security costs.
That was the conclusion reached during the forum "Connecting businesses as partners for prosperity with security in the Americas", organized by the Organization of American States (OAS) and the private sector, under the framework of the Guatemala Investment Summit.
Tebian Electric Apparatus Stock has announced its intention to open an office in the country in order to market its products through its local partner Provelec SA
According to Jian Jun Kang, the company's marketing manager, the intention is to invest in three stages. The first step is to sell their products ranging from high-voltage cables and transformers, to solar panels, the second is to participate in electricity generation, either hydro or solar projects, and the third is set up a manufacturing plant in the country for their products to be exported to the U.S.
They are interested in finding out about the legal certainty offered with Guatemala and incentives that favor businesses who decide to settle in the country.
According to Alex Yang, CEO of the Halo industrial zone, located in Shanghai, they are looking to bring about solid business deals. Yang said that the visit is exploratory and the information collected will be taken back to China to show to interested investors who want to know about Guatemala's incentives for settling there.
The Guatemala Investment Summit 2013 will present opportunities for Food & Beverages, Construction, Energy, Extractive Industries, Light Manufacturing, Chemicals and Plastics, TICS / Contact Centers, Tourism, Forestry, and Garment and Textiles companies.
On 30th and 31st May in Guatemala more than 150 investors and business leaders from Central America will gather together, forming opportunities for strategic alliances, investment projects and making contacts with senior government officials.