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.
After two years of non-operation, El Salvador's government and business associations agreed to reactivate the institution dedicated to decision-making on customs matters and trade agreements.
The private sector was represented by the Presidents and Executive Directors of the guilds ASI, COEXPORT, CAMARASAL, CAMAGRO, AMCHAM, CAMTEX and ADES, which are part of the Inter-union Commission for Trade Facilitation (CIFACIL) and participate with voice and vote within the Committee, informed the Salvadoran government.
In 2018, foreign sales totaled $5.904 million, 3% more than in 2017, a rise that was mainly explained by exports from the manufacturing sector.
The manufacturing industry, which includes maquila goods, reached exports of 5.727.4 million at the end of 2018, with a 97% share of total exports and a 2.8% growth. Of 141 economic branches that reported exports, 63 of them totaled $4.388.1 million and were those that had positive growth during 2018, contributing $337.2 million more, reported the Central Reserve Bank (BCR).
During the first eight months of the year, foreign sales reached $4.054 billion, almost 4% more than the same period in 2017.
From the press release of the Central Reserve Bank:
The exported merchandise from El Salvador up to August 2018 reached US$4,053.8 million, US$139.9 million more than the same period in 2017, with an inter-annual growth rate of 3.6%, reported the Central Reserve Bank.
In the first quarter of 2016, the performance of the export sector was affected by falling prices in international markets and lower export volumes.
Foreign Trade report by Central Bank of Nicaragua:
The value of exports amounted to 554.0 billion, with a reduction in value of 17.5 percent compared to the same quarter in 2015. Meanwhile fob imports amounted to 1331.5 million dollars with a growth of 4.1 percent year on year.
The traditional event, in its thirty-third version, will include the speaker José Ugaz, a renowned fighter against corruption.
From a statement issued by the Chamber of Commerce, Industries and Agriculture of Panama (CCIAP):
The Chamber of Commerce, Industries and Agriculture of Panama (CCIAP) has ensured the success of the thirty-third version (XXXIII) of Expocomer and at the same time announced that the inauguration of the most important trade show in Latin America, will have as its keynote speaker Jose Carlos Ugaz, a Peruvian lawyer fighting corruption and promoting transparency in Latin America and in the rest of the world. In addition, the President of the Republic, Juan Carlos Varela will also be attending.
On November 4th Salvadoran businesses from the food, textile and services sectors will be visiting Guatemala City to explore business opportunities.
The Chamber of Commerce of Guatemala and the Agency for Promotion of Exports and Investments of El Salvador (Proesa) have organized this business fair in order to support companies in their drive for internationalization.
In the South American country a rule has been published that establishes that costs and expenses incurred during transportation of goods by air must be borne by the importers.
From a statement issued by the Foreign Trade Promotion Office of Costa Rica (PROCOMER):
On October 11, the Ministry of Transport and Communications (MTC) of Peru issued a rule that the costs and expenses incurred during transportation of goods by air will be borne by the importers.
While the textile sector accounts for over 90% of total exports to the USA under the FTA, lack of training and compliance with requirements is preventing other sectors from taking better advantage of the trade agreement.
Lack of training, compliance requirements and inability to make the necessary investment to produce on a large-scale are some of the challenges faced by the sectors who are failing to take advantage of the trade agreement with the United States faces.
The Foreign Ministry has announced that it has given approval for the establishment of the office, whose opening is scheduled for October.
Two years after El Salvador set up an embassy in Russia, the authorities in this country are preparing to open an office in San Salvador, for which they "... already have a person to lead it."
Foreign Minister Hugo Martinez told Elmundo.com.sv "...
In 2013 the export supply of the region in the international market was focused on integrated electronic circuits, coffee, bananas, sugarcane and medical devices.
From a report by the Secretariat of Central American Economic Integration (SIEC):
Diversification of exports is above the thresholds of the largest Latin American exporting economies.
Analysis of the impact of the Trans-Pacific Partnership on the region.
The competition which sectors such as textiles could face is one of the elements raising questions among employers in the region, compared to the real benefits that could be accrued if Central America participates in the Strategic Economic Trans Pacific Partnership (TPP).
The presence of direct competitors, such as countries like Vietnam, in the textile sector, and the possibility of losing dominance in the American market due to trade rules that TPP countries must meet, is unsettling the productive sectors in the region and forcing a reckoning of the pros and cons of a possible entry to the block to be undertaken.
Despite the antiquity of the efforts for Central American integration and for the Customs Union the obstacles to trade between the countries on the isthmus presented by customs offices are notorious.
The Federation of Chambers and Associations of Exporters of Central America (Fecaxca) is once again calling for policies and common strategies for standards and customs procedures.
The strong dynamic of the global trade agenda forces Central America to consolidate its integration in order to participate in the changes that are shaping the global commercial order.
Editorial
The relaunching of the global trade agenda that the President of the United States is promoting in his second term, should be a warning for Central American countries, which despite reaching trade agreements with both the U.S. with the European Union, have sat on their laurels and have failed to complete the tasks needed to make the best use of these agreements, especially with regard to common customs and tariff policies.
Problems persist in the process of reviewing merchandise at the border posts in Amatillo and La Hachadura causing delays to cargo trucks.
Double review processes, recurring failures with x-ray machine inspection and the absence of a contingency plan for unforeseen delays has generated delays of between 19 and 23 hours for the approval of entry and exit of goods, said the Salvadoran Association of International Freight Carriers (ASTIC).