They are supporting Costa Rica in the dispute it has with El Salvador over the lack of respect for the DR -CAFTA and they are requesting action to be taken to end the paralysis of intraregional trade at Salvadoran customs offices.
The Federation of Chambers and Associations of Exporters in Central America (Fecaxca) is proposing that the fee of $18 being charged at customs offices in El Salvador be only imposed on goods which have the country as a final destination, and not everything that passes through Salvadoran territory which may be destined for other Central American countries.
The president of the Dominican Republic has warned the U.S. government about the impact the Trans- Pacific treaty in the textile sector in the region.
From a statement by the Ministry of Foreign Affairs of the Dominican Republic:
On November 27, President Danilo Medina sent a communication to the President of the United States, Barack Obama, in which it reiterated its concern expressed during the meeting held in San José, Costa Rica, in May, in connection with the negative impact which could come from the Trans- Pacific Economic Partnership Agreement (TPP) on the textile and clothing industry in the signatory countries of the DR -CAFTA and the region, if certain special concessions that could cause changes in the management and values of hemispheric trade, and on a worldwide level.
The term of the decree allowing the border areas of Mexico to import goods at a significantly lower charge than in the rest of the country has been extended for three years.
According to the Mexican Finance Minister, Luis Videgaray, the decree was scheduled to end on Decemnber31 December, however, the term has been extended for another three years.
Another decision taken by the Mexican government is to close customs checkpoints on the border areas. "We will start gradually, but from today (Thursday) we are taking action to eliminate various Customs checkpoints located in states bordering the United States and Guatemala, though not exactly on the borders," said President Enrique Peña Nieto.
With the entry of new players in power generation and use of clean energy sources, electricity prices could fall by between 25% to 30% over the next two years.
An article in Elperiodico.com.gt reports that "...Among the new technologies being utilised in the energy matrix are natural gas, wind and solar power. Among the contracts awarded in tenders in the Expansion Plan Generation (PEG by its initials in Spanish), the most sensitive changes are in the allocation of 120 megawatts (MW) of natural gas, a plant that can be used as a basis, said Edwin Rodas, vice minister of Energy. "
Guatemala's Conacon estimates that the state loses no less than $1.6 billion a year in unpaid taxes due to contraband.
The information was released by Manuel Chocano, Executive Secretary of the National Commission for the Prevention and Combating of Customs Fraud and Smuggling (Conacon).
The official said that the problem is getting worse as in previous years the illegal trade amounted to about $1.25 billion.
Lack of regional standardized sanitary requirements, registration, labeling and certification, is making food more expensive and reducing competitiveness.
From a statement by the World Bank:
BM / Central America: NTMs increase product prices by 30 percent
The application of non-tariff measures, such as the requirements for the import and export of food and beverages, have a significant impact on trade in Central America and raise the price of commodities by up to 30 percent according to a new World Bank study.
Before the end of 2013, 92% of tariffs will be zero, with the remaining 8% expected to become duty free over the medium and long term.
Within that 8%, there is a deadline of until 2030 for reducing to zero the tariff of the 1.4% most sensitive agricultural products.
Eluniversal.com.mx reports that "According to the Secretary of Economy (of Mexico), Ildefonso Guajardo, the mechanism will be signed in the fourth quarter of this year and the exact date and location will be defined by the presidents during a meeting of the leaders in the context of the UN General Assembly in New York. The will take advantage of the forum, to be held on September 25, to present it to investors. "
Although the Peruvian Congress has already ratified the FTA, they have indicated that it will not enter into effect until the dispute raised with the WTO over sugar has been settled.
The controversy which has been passed on to the WTO over the rise in Guatemala sugar tariffs is keeping the entry into force of the Free Trade Agreement between the two countries paralyzed.
The World Trade Organization has agreed to establish an arbitration panel to resolve trade disputes between the two countries.
According to Eduardo Sperisen, Guatemala's ambassador to the WTO, in the next 20 days both Guatemala and Peru will have to appoint three experts to the panel to discuss the conflict.
Prensalibre.com published: "The origin of the controversy is that although Guatemalan sugar was already entering the Peruvian market, the country implemented a hike in tariffs." This measure, according to Guatemala, caused trade of the product to be limited and producers to lose market share.
The Trans-Pacific agreement being negotiated by the U.S. could authorize Vietnam to get threads from China and export duty-free textiles to the North American nation.
The Ambassador of El Salvador in that country, Ruben Zamora, has already raised concerns with officials from the U.S. trade office (USTR). Zamora affirmed that representatives from textile companies have visited the U.S.
Companies which transport energy charged $51 million during 2013 and 2015, $28 million less than in the previous biennium.
As explained by Carmen Urízar, president of the National Energy Commission (CNEE), the change means a "lower income for transport companies," but "has a benefit, impacting the fee for the end user".
The ride of Peru, Chile, Mexico and Colombia towards universal tax exemption within the trade area could be a stumbling block for the aspirations of both Central American countries.
According to the Colombian Foreign Minister Maria Angela Holguin, the Alliance is moving towards "deep integration" which includes free trade, opening commercial offices or joint embassies, the free movement of people, and strengthening education and SMEs, among other factors.
In order to meet internal demand the country needs to purchase 200 thousand tons of black beans, therefore it has temporarily removed import taxes on the grain.
According to the Minister of Agriculture of Brazil, Antonio Andrade, the Government has decided to temporarily remove tariffs applied on the import of the grain, with the goal of guaranteeing supply without pushing prices higher.
A request has been made to establish a "Special Group" for the settlement of trade disputes between the two countries.
From a press release from the Government of Guatemala:
The Ministry of Economy of Guatemala, through the Permanent Mission in Geneva, has requested that the Dispute Settlement Body (DSB) of the World Trade Organization (WTO) establish a "Special Group" to be responsible for resolving disputes between Guatemala and Peru.
The Pacific Alliance is now operating and producing results which are favorable to the development of the nations which compose it, and it is a natural environment for Central American countries to be integrated into.
Editorial
The very apt comparison made by analyst Andres Oppenheimer between the economic blocs Mercosur-Argentina, Brazil, Paraguay, Uruguay and Venezuela-, and the Pacific Alliance-Chile, Colombia, Mexico and Peru (soon to also include Costa Rica) - shows the major conceptual differences between one group and another, and the concrete results generated for the development of their people.