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.
Alimentos y Bebidas Atlántida in Guatemala, Mayca in Costa Rica and Nestlé Panama, are part of the companies reporting the highest numbers of purchases of food preparations in Central America.
An analysis of CentralAmericaData's Trade Intelligence unit provides details on the companies according to sector, main activity, volume and value of their imports, exports and other relevant data.
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.
Arguing that the suspension of the agreement between El Salvador and the Asian country was done in an "abrupt and unconsultated" way, businessmen of the Salvadoran sugar sector presented an appeal of unconstitutionality.
The lawsuit was filed on February 20, after the administration Sanchez Ceren finalized the trade agreement with the Asian country in December last year, a decision that was not consulted with the country's productive sector and will affect sugar exports, as they will no longer have preferential treatment.
The Panamanian government temporarily restricted road carriers from Honduras and Nicaragua from lifting cargo at bonded warehouses, free zones, and ports in Panama.
This action by the Panamanian government comes after the authorities evaluated a complaint made by local carriers, who protested about the treatment received in Honduras and Nicaragua.
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 decline in the international price of sugar in recent years, agricultural businessmen in Guatemala have decided to migrate to more profitable crops, such as bananas and African palm.
Last year, Guatemalan banana exports totaled $815 million, 4% more than the $782 million reported in 2017, a rise that is partly caused by the increase in the cultivated area in the country.
In Guatemala, the business sector has already begun to analyze the market opportunities that will arise after the Salvadoran government decided to cancel the FTA with Taiwan.
The decision taken by the Sánchez Cerén administration in December last year will be implemented as of March 15, when the Free Trade Agreement between Taiwan and El Salvador will expire.
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).
Since the new computer system was implemented in El Salvador, it is estimated that waiting times for imported goods moving in the Port of Acajutla have been reduced by up to 60%.
The General Directorate of Customs (DGA) reported that since November 15 last year is in operation the computer system "Sidunea World", which aims to reduce the steps in the process of importing goods.
During the first six months of 2018, Central American companies imported $69 million worth of fruit and vegetable juices, and purchases from the U.S. increased 8% over the same period in 2017.
Figures from the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
It is announced that technical groups from the governments of El Salvador and Guatemala began negotiations in London to conclude a new trade agreement.
Now, there is a possibility that the agreement the region seeks to sign with the European country will not be consolidated, since it is not yet clear how the process of Britain's exit from the European Union will be carried out, an issue that is generating great tension between the British Parliament and Prime Minister, Theresa May, at this very moment.
Guatemala, El Salvador and Honduras have yet to finalize their Customs Union, since this week a new round of negotiations began in which they will follow up on the project to implement the advance declaration.
Although in December 2018 it was reported that the El Poy integrated border post in Chalatenango, the first to have the necessary infrastructure to operate within the framework of the customs integration of the Northern Triangle, began operating in El Salvador, the unification process is currently under negotiation among the countries.
Because of the foreign sales of companies in Guatemala and Honduras, during the first six months of 2018 regional exports totaled $100 million, 19% more than in the same period in 2017.
Figures from the Business Intelligence Unit at CentralamericaData: [GRAFICA caption="Click to interact with graphic"]