Seasoned in negotiations with Europe, Central American employers are demanding to political sectors to accelerate the process for the economic integration of the isthmus.
50 years after the signing of the General Treaty of Central American Integration, over 40 million people living in the region still do not enjoy the economic benefits and development opportunities that could effectively be consolidated if Central America would act as a single economic unit, much like the European Union.
The Minister for the Economy is to initiate a consultation process with the private sector about the possibility of negotiating a free trade agreement (FTA) with Ecuador.
Guatemalan Minister for the Economy, Erick Coyoy, highlighted both countries' interest in negotiating the FTA.
The minister told Elperiodico.com.gt that, "we are still in the early stages, exploring opportunities for exchange, identifying potential products and consulting the private sector on the feasibility of an agreement with Ecuador".
Guatemala’s chamber of commerce has indicated the desire of businesses to enter the Ecuadorian market.
Jorge Briz, director of the Guatemalan Chamber of Commerce (CCG), commented that the National Council for the Promotion of Exports (Conapex), will seek a partial trade agreement (APP in Spanish) with Ecuador.
The sector companies are most interested in is oil.
Central America's chambers of commerce requested the European Union to recognize the elections in Honduras, in order to resume negotiations for an association agreement.
At a meeting in San José, Costa Rica, the Federation of Chambers of Commerce of the Central American Isthmus (Fecamco), "unanimously endorsed Honduras' elections" and asked the European Union to recognize them.
Costa Rica (43 in the world) rank at the top in Central America, followed by Panama (53), El Salvador (56), Guatemala (58), Honduras (66), Nicaragua (77).
The Enabling Trade Index, featured in the report presented by the World Economic Forum, measures institutions, policies and services facilitating the free flow of goods over borders and to destination.
In the initial meetings begun yesterday in Brussels the future of “sensitive” products like bananas and sugar will be tackled.
This will be one of the last chapters of the negotiation process as it is one of the most difficult to reach a consensus for since it affects the direct interest of both sides.
Siglo XXi published on its website: “To conclude the negotiations by the date established, Central America would become the first region to close with the European Union an agreement “block to block.” Both sides hope to sign the agreement in 2010 under the Spanish presidency of the European Union.”
Eighty-eighth percent has already been negotiated and the remaining 12% has the most difficult topics. The agreement is expected to be concluded in July.
An article in elfinancierocr.com examined the state of negotiations, what is done and what is yet to be done in each area left to be negotiated in the Association Agreement between Central America and Europe:
With an increase of 16% annually over the past five years, trade between the countries of Central America is the real force behind regional integration.
Despite the comings and goings with which governments have handled the process of integration, intra-regional trade continually progresses. In recent years, the numbers in the exchange of goods and services between the countries of the region have doubled, surpassing $6.3 billion per year.
Negotiations for a FTA between Guatemala and Ecuador could begin in the first semester of 2009
The embassy indicated that they have met with members of the Government to study the possibility of signing a Free Trade Agreement between Guatemala and Ecuador.
Roberto Ponce, Ecuadoran ambassador, pointed out that he is in talks since the beginning of 2008 and that negotiations are scheduled to start in the first semester of 2009.
The free trade agreements with the United States have contributed to the economic growth of partner countries, said the American ambassador to Guatemala, Stephen McFarland.
McFarland explained that the export of Guatemalan products to the American market have increased 13%, from $963 million in 2006 to $1.1 billion in 2007.
The diplomat referred to the commercial treaty at the inauguration of the XII Food Fair in Guatemala yesterday, in which the US is participating as a special guest along with representatives from the private sector.
The date to start the negotiation process for a Free Association Agreement between both regions will be September 9 and 10 in Brasilia.
The Guatemalan vice-minister of Foreign Affairs, Alfredo Trinidad, pointed out that there is "an interest in the (Central American) region that the negotiation between SICA and MERCOSUR not be just another Free Trade Agreement, but a more integral agreement that contemplates other types of alliances.