In El Salvador, the integrated border posts El Poy, in Chalatenango, the first to have the necessary infrastructure to operate within the framework of the customs integration of the Northern Triangle, became operational.
After the adaptation of the border post, the infrastructure and computer systems of El Poy are practically ready to operate, however, the products that will have free circulation between the three countries and which goods will continue to be protected have yet to be defined.
Because of a possible decline in the dynamism of the advanced economies, the volume of Central American exports is expected to increase by 0.4% in 2018 and by 2.6% in 2019.
According to a report by the Secretariat of Central American Economic Integration (Sieca), a possible decline in trade dynamism in advanced economies is expected by the end of 2018, which could generate consequences in international markets, with downward scenarios in 2019, between two and three percentage points with respect to 2018. This is mainly related to growing trade tensions and more complicated market access conditions than in previous years, involving important trading partners.
Although in the first nine months of the year foreign sales fell almost 3% compared to the same period in 2017, the Banco de Guatemala forecasts that the trend will be reversed by the end of 2018.
The fall in the international prices of sugar, coffee and natural rubber, largely explain the decline in income from sales abroad. According to figures from the Banco de Guatemala (Banguat), up to September, foreign sales totaled $8.147 million, 2.6% less than the figure recorded in the first nine months of last year.
After several rounds of negotiations, El Salvador formally joined the Customs Union process with Guatemala and Honduras, so it will have to adjust its systems to the community information platform.
Authorities from the countries of the Northern Triangle reported that since November 20th, El Salvador has been fully incorporated legally and administratively into the process of Deep Integration of the Customs Union between Guatemala and Honduras.
On November 12th, the VII Round of Negotiations for the inclusion of El Salvador in the integration process towards the free transit of individuals and goods between Guatemala and Honduras began in San Salvador.
The negotiations between the three countries will last the entire week and it is expected that this round of dialogues will address issues related to the customs, migration, sanitary and phytosanitary challenges facing El Salvador.
In Guatemala, sales abroad totaled $8.147 million up to September, 3% less than in the first nine months of 2017.
The Banco de Guatemala reports that the total amount of General Commerce exports was at US$8,147.4 million, lower by US$220.5 million (-2.6%) to the registered up to September 2017 (US$8,367.9 million). The most important products according to their share in the total value of exports were: Clothing with US$1,092.8 million (13.4%); Coffee with US$633.1 million (7.8%); Banana with US$599.7 million (7.4%); Sugar with US$531.2 million (6.5%) and Fats and edible oils with $389.1 million (4.8%). These products accounted 39.9% of total exports.
Despite the recent announcement by a Costa Rican company about the future of the operation of the Cargo ferry between El Salvador and Costa Rica, as planned, the service is still not operating and may never do so.
The option of maritime cargo transport emerged again with the objective of minimizing part of the impact that the Nicaraguan crisis has had on intraregional trade. That is why in July the governments of Costa Rica and El Salvador announced that they were already able to begin ferrying operations. See "Cargo Ferry Between La Union and Caldera Back on the Table"
During the first eight months of the year, the Central American country generated $600 million in sales to Eurozone countries, 4% more than reported in the same period of 2017.
According to figures from the Bank of Guatemala, the Netherlands is the destination of Guatemalan exports that showed the greatest dynamism between January and August, with sales of $235 million, an increase of 14% over what was reported in 2017.
In accordance with the decrease reported since the beginning of the year, sales abroad reached $7.348 million up to August, 2% less than that recorded in the first eight months of 2017.
The Banco de Guatemala report stated that the total exports of General Commerce were at US$7,347.5 million, lower by US$183.3 million (-2.4%) to the registered to August 2017 (US$7,530.8 million).
Trade in goods and services between the countries of the region amounted to $4.792 billion during the second quarter of the year, 3% more than in the same period of 2017.
Central America's total exports reached USD 16,299.7 million in the second quarter of 2018 and increased by 1.7% over the same period last year. 29.4% of exports went to the Central American market, while the remaining 70.6% went to third markets.
In line with the decline reported since the beginning of the year, up to July, sales abroad totaled $6.455 billion, 3% less than what was recorded in the first seven months of 2017.
According to Óscar Monterroso Sazo, general manager of the Bank of Guatemala (Banguat), "... a fall in international prices of the four main agricultural products which are coffee, sugar, banana and rubber, is the reason for the drop in sales abroad."
Industria La Popular, Grupo Cropa and Grupo Vical, are the three companies qualified as new Authorized Economic Operators by the Superintendency of Tax Administration.
According to the authorities at the Superintendency of Tax Administration (SAT), the figure of Authorized Economic Operator (OAS), which is recognized by the World Trade Organization, facilitates trade, security and control, as well as compliance in tax, customs and legal matters.
The Legislative Assembly of El Salvador has approved incorporation into the Customs Union between Guatemala and Honduras.
Although an improvement has been reported in the transit of goods through customs posts as well as an increase in bilateral trade, there are still a lot of aspects that need improving, according to businessmen who trade among these countries.See "Customs Union: Good results, but improvement still needed"
In line with the trend seen since the beginning of the year, sales abroad between January and May totaled $4.698 billion, 3% less than in the same period last year.
Figures from Banco de Guatemala show that the country in May 2018 made exports totalling $934 million, which is equivalent to a 5% decrease compared to the same month in the previous year.
During the first four months of the year, the country's sales totalled $3.777 billion, 2% less than the $3.855 million reported in the same period in 2017.
According to figures from the Banco de Guatemala in April 2018, the country exported $924 million, which is equivalent to a 3% decrease compared to the same month in the previous year.