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. market, this as pressure for Mexico to be more effective in its efforts to contain the massive arrival of Central Americans to the country.
The complex economic and political situation that has affected Nicaragua since April continues to affect Central America, where exporters report losses of $45 million.
In the past months, cargo transport faced difficulties in moving goods along Nicaragua's highways due to demonstrators' blockades and insecurity, seriously affecting Central American companies.
Key information regarding the seasonality in the value of Central American trade in both the intra-regional and extra-regional markets.
Extracted from a report entitled "Seasonal patterns of trade in Central America: initial notes" issued by the Secretariat of Central American Economic Integration (SIECA):
Starting July 17th the categorization of products according to their health risk will be applied and a 15 day shipping notice will be required to import those labelled as "high risk."
A new "Directive on sanitation and phytosanitation for the facilitation of trade in goods and shipments in Central America", adopted by the Council of Ministers for Economic Integration (Comieco), approved in January and which will come into effect from Thursday, July 17, could detract agility from intraregional trade, warns the Exporters Corporation of El Salvador (Coexport).
The Santa Fe Bridge, built in Nicaragua over the San Juan River, 5 kilometers from the border with Costa Rica, will not be opened as long as the confrontation between the two governments continues.
362 meters long and 40 meters high, the Santa Fe Bridge required a $30 million investment donated by the Government of Japan.
The competitiveness of the economies of the isthmus is being impaired by the inefficiency of the bureaucracy in the management of customs offices in the region.
The bureaucracy at customs offices has become a serious problem for the Central American region. Among other things it generates increases in the costs of exporting because of the procedures that must be paid for, loss of perishable goods and delays in production in processes that have to wait for raw materials.
Regional unions are threatening a general strike in the Salvadoran border to protest at the rate of $18 per inspection at customs offices in that country.
S21.com.gt reports: "The new provision of the General Customs of El Salvador will take effect on 6 January, in light of this, carriers of the remaining five countries in the region have announced a general strike on the Salvadoran border if this legislation goes ahead. "
Lack of regional standardized sanitary requirements, registration, labeling and certification, is making food more expensive and reducing competitiveness.
From a statement by the World Bank:
BM / Central America: NTMs increase product prices by 30 percent
The application of non-tariff measures, such as the requirements for the import and export of food and beverages, have a significant impact on trade in Central America and raise the price of commodities by up to 30 percent according to a new World Bank study.
Preparations are being made for a single form that will streamline customs trade ahead of the entry into force of the Association Agreement between Central America and the European Union.
According to the president of the Superior Council of Private Enterprise (Cosep), Joseph Adam Aguerri, already working on this issue are the Central American Integration System (SICA), and the Secretariat of Central American Economic Integration (SIEC). They are working "on a unified customs document that aims to concentrate all imports and exports," added Aguerri.
Last Friday in San Jose the first round of negotiations of the Customs Union ended, having made major advances in the fields of food, medicine, manufacturing and agriculture.
A press release from the Ministry of Foreign Trade of Costa Rica reads:
On Friday in San Jose the first round of negotiations of the Customs Union ended, having made major advances in the fields of food, medicine, manufacturing and agriculture.
The Central American Federation for the Beef Industry is promoting the creation of traceability protocols that would allow them to export meat to the EU.
Regional leaders in the cattle industry and beef marketers "came together to promote the creation of a traceability protocol that would allow them to export meat to the EU."
There is a requirement to avoid duplicate collection of customs duties levied on imports in order to meet the provisions of the trade pact with the European Union.
Industrials in Costa Rica are celebrating the incorporation of Panama into SIECA, seeing the country as a first–rate ally for industry in Costa Rica.
A statement from the Chamber of Industries in Costa Rica reads:
The Chamber of Industries in Costa Rica, CIRC, would like to express its satisfaction at the incorporation of Panama into the Sub System for Economic Integration (SIECA), with which compliance is reached for one of the most important requirements proposed by the European Union to enable signing of the Association Agreement.
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