Unless intra-regional trade in chemical contents and residues, micronutrients and food preparations is regulated in a balanced manner, trade relations in Central America could face obstacles in the future.
Trade between Central American countries is essential, since a considerable proportion of foreign sales by local companies are destined for other markets in the region.
Due to the tropical storms Eta and Iota, severe damage has been reported to the road network in Central American countries, and some border posts in Guatemala, Honduras and El Salvador have been suspended.
Since November 17, operations were suspended at the El Corinto, El Florido and Aguas Calientes border posts. These areas, shared by Guatemala and Honduras, are not operational, according to the Guatemalan Superintendence of Tax Administration (SAT).
As of October 1st, Guatemala and Honduras will begin operating three Peripheral Customs Offices, areas that will simplify procedures and allow free community mobility between both countries.
Guatemalan and Honduran taxpayers who make definitive imports to each State Party will be the ones to benefit from the implementation of this type of customs, since the goods imported under this modality will enjoy free mobility.
In order to ensure the supply of drinking water supply to half of the Panamanian population for the next 50 years, achieve water sustainability in its operations and guarantee its competitiveness, the Panama Canal will invest $2 billion.
From three to five days, the time that Costa Rican carriers have available to stay in Nicaraguan territory, to unload goods or for regional transit, was increased.
After several days of tension generated by the restrictions imposed by Costa Rica on the transport of cargo from neighboring countries, Central American authorities reached an agreement and opened the way at the border of Penas Blancas.
After Costa Rica imposed several restrictions on the movement of cargo entering its territory, the Panamanian government limited the permit for Costa Rican carriers to remain in the country to 72 hours.
The transit of goods in the region is becoming more complicated every day, since it is argued that the propagation of the covid-19 is being mitigated.
After the Costa Rican government decided to impose several restrictions on heavy transport units entering its territory, the Honduran government decided to grant Costa Rican pilots only 72 hours in the country.
It was announced that the National Assembly of South Korea ratified the Free Trade Agreement signed with Central America.
The announcement was made by Seok-hyun Lee, deputy of the Korean assembly, who reported on the evening of August 2: "... We, the Korean National Assembly last night ratified the FTA with the nations of Central America. I hope you will benefit each other."
The signed association agreement "guarantees Central American countries that with the departure of the United Kingdom from the European Union, there will be no legal vacuum and trade relations with that country will be interrupted and tariff preferences will be maintained, with all legal guarantees for Central American exporters to the United Kingdom."
The government of Guatemala informed that Julio Dougherty, Vice-Minister of Integration and Foreign Trade, together with the Ministers of Economy and Foreign Trade of Central America and the United Kingdom Ambassador in Costa Rica, Ross Denny, signed in Managua the document that establishes the Association Agreement that constitutes the mechanism to attend the preferential commercial relations regulated with the United Kingdom through the Association Agreement between Central America (CA) and the European Union (AACUE), on the occasion of BREXIT.
In the first three months of the year, the country's foreign sales reached $1.466 billion, which is $16 million lower than what was reported in the first quarter of 2018, a decrease explained by the behavior of exports from the manufacturing industry.
From the Central Reserve Bank report:
At the end of the first quarter of 2019, El Salvador's exports accumulated a total of US$1,466.3 million, US$16.2 million less than the same quarter of 2018 (1.1% less).
In the third quarter of 2018, Central American exports totaled $23,702 million, reporting an increase of less than 1% compared to the same period in 2017, because of the lower dynamism of sales from El Salvador, Guatemala, Honduras and Nicaragua.
According to the Central American Trade Monitor for the Third Quarter 2018, prepared by the Secretariat of Central American Economic Integration (SIECA), imports of goods in the region totaled $54,665 million from July to September last year, recording a 6.5% increase over the same period in 2017.
Because of the manufacturing industry's sales behavior, from January to November Salvadoran exports totaled $5.487 million, 3% more than in the same period in 2017.
Sales to the rest of the world of manufacturing industry, including maquila goods, reached US$5.319 million in November 2018, representing a 3% growth of the sector, informed the Central Reserve Bank.
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.
Because of the sales behavior of the manufacturing industry, from January to October, the country's sales abroad totaled $5.008 million, 3% more than what was reported in the same period of 2017.
The manufacturing industry, including maquila goods, reached US$4,845.7 million exported up to October 2018, which shows a growth of 3.4% of the sector, reported the Central Reserve Bank.