The sale of synthetic fibers increased by 133% between November 2012 and March 2013.
Statsistics from the Central Reserve Bank (BCR) reveal that between November 2012 and March 2013, exports of synthetic fibers to Europe increased from $1.4 million to $3.4 million, which is 133%.
"In other categories, food products such as honey increased sales by 29.8%, going from $4.3 million to $5.6 million."
Small and medium enterprises in the region, especially in the food sector, have great opportunities to export to the European market.
This was explained by Ingrid Figueroa, director of the Regional Center for the Promotion of MSMEs (Cenpromype), an agency of the Central American Integration System (SICA).
Aspects such as quality, standards, certifications and seals of approval are elements that European consumers evaluate before acquiring goods that are produced in the region, therefore this must be made known to the producers. "For a small company that has not met the requirements of the European market it can be a complex issue," she said.
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.
The country has resolved the differences it had with Italy, allowing the Association Agreement with the European Union to enter into force as soon as possible.
From a press release by the Ministry of Economy of El Salvador:
Today, September 23 the Finance Minister, Armando Flores and Deputy Minister of Economy, Mario Roger Hernandez, met with the Deputy Minister of Economic Development of Italy, Carlo Calenda in order to discuss the Italian opposition to the entry into force of the Association Agreement with the European Union (ADA) for El Salvador, after Italy, in July this year, did not vote for the Agreement to enter into force on 1 August 2013 for El Salvador and Costa Rica and did vote to give it to Nicaragua, Honduras and Panama.
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.
Despite being a major producer of canned tuna in Europe, Italians import 87,000 tonnes a year in order to meet domestic demand.
From an article by the Costa Rican Foreign Trade Promotion Office (PROCOMER):
Italy consumes a significant amount of tuna, in canned form and yellow fin and bluefin tuna, which is equivalent to about 141,000 tons per year, 2.3 kg per capita, valued at $1.47 billion.
With the entry into force of the AA in August, 90% of Salvadoran products will be able to be sent to European Union countries duty free.
"What will happen is that Central America, instead of exporting to the international market, will export to Europe. It will change the export destination," said Julio Arroyo, CEO of the Asociación Azucarera.
The Elsalvador.com reports that "the challenge that lies ahead for exporters is huge, because although the doors were opened to 28 markets with over 500 million consumers, there are also requirements related to phytosanitary conditions, quality, presentation, price and promotion will become stronger, in line with the market. "
The Costa Rican Congress has finally approved the Association Agreement between Central America and the European Union, which will take effect on August 1.
From a press release issued by the Ministry of Foreign Trade of Costa Rica (COMEX):
The Legislature has approved on its second reading the Association Agreement between Central America and the European Union (CAAA), which seeks to boost trade relations between Central America and the old continent, by improving the business climate, creating new opportunities for trade, investment and employment and strengthening institutions in the region.
The British have indicated that products from El Salvador such as coffee, sugar and crafts, have the potential to be exported to a market of over 63 million people.
In a meeting with exporters from both nations, the British Embassy highlighted the export potential of Salvadoran products. "We have identified some areas with good prospects for increasing our relationships," said Linda Cross, the British ambassador.
The Association Agreement between Central America and the European Union will enter into force on August 1 for countries which ratify it before July 15.
From a press release from the Ministry of Foreign Trade of Costa Rica (COMEX):
Today, the deputies in charge of foreign trade of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama met in San Jose, where they held a video conference with the Director General of the Directorate General for Trade of the European Commission, Joao Aguiar Machado, who served as Chief Negotiator for the European Central America Association Agreement (CAAA). During the meeting they discussed the progress of the registration of geographical indications in the legislative process and approval of the Agreement.
Those countries who have not ratified the Association Agreement with the European Union are at risk of losing markets compared to other Central American nations.
In an interview in Siglo21.com.gt by Celso Solano, with the ambassador to the European Union in Guatemala, Stella Zervoudaki, the official explained that there will not be any sanctions if Guatemala fails to ratify the agreement on or before May 15, but the country faces other threats.