The possibility of negotiating a free trade agreement with the trade bloc of South American countries is back on the discussion.
The issue will be discussed in detail at the meeting of the Council of Ministers of Economy of the region (Comieco), to be held in El Salvador on December 5 and 6.
Acisclo Valladares Urruela, Minister of Economy of Guatemala, confirmed to Prensalibre.com that "...
From September 24, the Chamber of Industry of Guatemala will begin to offer a training workshop on the updating of the Incoterms trade rules, which will apply from January 2020.
The Incoterms are the rules of sale of goods, which offer security and clarity in trade, for companies and users around the world. They were created by the International Chamber of Commerce (ICC).
Mieles Joya de Cerén began exporting certified organic honey to Costa Rica, and in the coming months plans to start marketing it in Portugal and Spain.
The Salvadoran company began certification in 2017, and after analyzing 4,000 hives in 87 bee houses owned by seven national beekeepers, was able to complete the process.
Saúl Díaz, regional director of Swisscontact, the institution implementing the project called Promotion of Competitiveness for Sustainable Beekeeping (Focapis), told Elmundo.sv that "... Of the 80 tons of certified organic honey, 60 will go to Costa Rica and in the coming months will be sold to Portugal and Spain. This achievement breaks the paradigm that it was not possible to certify organic honey as a small country, with conventional production systems, and opens the way for other producers to venture into high-value markets with differentiated products."
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."
Guatemalan exporters report that President Trump's warning about export tariffs and taxes on remittances and transfers is raising doubts among U.S. buyers.
Uncertainty prevails among most Guatemalan businessmen after President Trump reacted to the provisional protection established by the Guatemalan Constitutional Court, which limits the functions of the Executive Branch to negotiate or sign any foreign policy agreement.
Guatemala's business sector responded with concern to President Trump's warning about imposing export tariffs and levies on remittances and transfers.
The announcement made by the president of the United States comes after the Guatemalan Constitutional Court issued a ruling in which it limits its foreign policy functions to the Executive, by granting a provisional injunction that prevents the negotiation or signing of any agreement.
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).
The costs incurred by businessmen in Nicaragua, because of excessive procedures and low efficiency of foreign trade systems is 25% additional to the value of the goods, while in El Salvador and Costa Rica, amounts to 18% and 16%, respectively.
A study by the Economic Commission for Latin America and the Caribbean (ECLAC) specifies that the costs paid by businessmen in Nicaragua, because of excessive procedures and low efficiency of foreign trade systems is 25.3% additional to the value of the goods, followed by El Salvador with 18.3%, Costa Rica with 16.3%, Honduras with 15.8%, Guatemala with 14% and Panama with 9%.
The Constitutional Chamber of El Salvador declared the demand of the sugar manufacturers inadmissible, arguing that there is no link between the cancellation of the FTA with Taiwan and the application of constitutional norms.
After the Salvadoran government decided to finalize the trade agreement with the Asian country in December last year, an act that was not consulted with the country's productive sector, the guild presented in February this year an appeal of unconstitutionality.
Between January and September of last year, trade in milk and dairy products between the countries of the region totaled $240 million, and more than 75% was bought by companies in El Salvador and Guatemala.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
In El Salvador, the Constitutional Chamber admitted an appeal against the government's decision to terminate the trade agreement, and ordered a temporary suspension of the effects of the cancellation.
After the Salvadoran government decided to finalize the trade agreement with the Asian country in December last year, an act that was not consulted with the productive sector of the country, the union of sugarcane workers filed a lawsuit.
Arguing that they should protect the local industry from dumping, the U.S. plans to impose temporary tariffs on imports of steel, textiles and footwear.
The tariffs that would be approved through the signing of presidential decrees would be valid for six months, which would be 15% for steel products, and 25% or 30% for imports of footwear and textiles.
After El Salvador ended its trade agreement with the Asian country, the Legislative Assembly has created a special commission to investigate the legality of the dissolution of the FTA.
The commission urgently requested, within a maximum period of 48 hours, official documents and all registration related to the resignation of the Free Trade Agreement with the Asian nation from the Ministry of Foreign Affairs and other competent entities, informed the Legislative Assembly.
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.