Through an Agreement on Administrative Cooperation on Matters of Origin both countries will be able to exchange and accumulate raw material for the manufacture of various exportable products.
The agreement aims to generate more business between companies in both countries, and in turn boost exports to countries in the European Union, with whom both Ecuador and Nicaragua already have trade agreements.
World food prices fell slightly in November, as the decline in prices of dairy products offset a sharp increase in the prices of sugar and vegetable oils.
From a statement by the World Food Organization (FAO):
7 December 2017, Rome - Global food prices declined marginally in November, as lower dairy prices offset a sharp increase in sugar and vegetable oil quotations, according to the latest FAO Food Price Index issued today.
With the exception of cereals, all the indexes used in the calculation of the FAO food price index fell in October.
From a statement issued by the World Food Organization:
The FAO Food Price Index* (FFPI) averaged 176.4 points in October 2017, down 2.2 points (1.3 percent) from September. Although at this level the FFPI was up 4 points (2.5 percent) from its value in October 2016, it remained 27 percent below its all-time high (in nominal terms) of 240 points registered in February 2011. With the exception of cereals, all the other indices used in the calculation of the FFPI fell in October.
The World Bank projects that the price of a barrel of oil will rise to $56, metal prices will stabilize, gold prices will tend to rise and agricultural prices will increase, due to a decline in supply.
From a report by the World Bank:
WASHINGTON, October 26 - Oil prices are forecast to rise to $56 a barrel in 2018 from $53 this year as a result of steadily growing demand, agreed production cuts among oil exporters and stabilizing U.S. shale oil production, while the surge in metals prices is expected to level off next year, the World Bank said on Thursday.
The index of food prices registered an increase of 2.9% compared to the previous month and 10% compared to September 2015.
From a report by the FAO:
The FAO Food Price Index* (FFPI) averaged 170.9 points in September 2016, up almost 5 points (2.9 percent) from August and 10 percent above the corresponding month last year. The September value is the highest since March 2015.
After five consecutive months of increases, the index of food prices fell slightly in July, reflecting a reduction in the prices of cereals and vegetable oils.
From a statement issued by the Food and Agriculture Organization:
4 August 2016, Rome –The international prices for majorfood commoditiessaw a modest decline in July, following five consecutive months of increases. The FAO Food Price Index (FPI) averaged 161.9 points in July 2016, slipping 0.8 percent (1.3 points) below its level in June and 1.4 percent below its level of July 2015.The overall decline of the Index was largely caused by drops in international quotations of grains and vegetable oils, more than offsetting firmer dairy, meat and sugar prices.
Behavior of markets and prices in February 2016 of beef, cattle, gold, rice, coffee, sugar, corn and wheat.
From a report by the Central Bank of Nicaragua:
Behavior of markets and prices of major commodities up to February 2016:
Coffee: Coffee futures price in February fell by 0.8 from the previous month, standing at 116.4 cents per pound. Similarly, the price was lower by 25.1% in annual terms.
Support is being given to sustainable agriculture programs to meet growing consumer concern about the origin of the raw materials of the products they consume.
From a statement issued by the Cosa Rican Foreign Trade Promotion Office (PROCOMER):
Cargill and Mondelēz International are promoting two programs to have a cocoa supply chain which is 100% sustainable by 2020.
Tires, ceramics, auto parts and raw materials are part of the list of 2,800 products which will incur higher fees in order to enter the Ecuadorian market from March 11.
From a statement issued by the Ministry of Foreign Trade in Ecuador:
The external landscape has changed expectations regarding our balance of payments and we are facing a new scenario which affects the commercial arena which is low oil prices, the appreciation of the US dollar, so it is necessary to take measures to regulate the general level of imports and balance our trade balance.
The continuous increase in sales of steel from China to Latin America was well known in Central America during 2014 when 930,000 tons of metal were imported from the asian country.
From a statement issued by the Latin American Steel Association:
Between January and October 2014, China shipped 6.7 million tons of rolled steel to Latin America, 54% more than the 4.4 million tons sent in the same period in 2013.
The guild is analyzing looking for new markets to buy raw materials for the manufacture of textiles, if the US does not renew the tariff preferences.
The Tariff Preference Level (TPL) expires on December 31 and if it is not renewed the Nicaraguan textile industry will be looking for new suppliers such as India, China and Chile, which have lower supply than in the United States.
An overproduction of corn, wheat and rice in China and a record crop which is expected this year in the United States will continue to push international prices down.
While drought in Central America ravages crops of basic grains such as corn, it is estimated that this year China will have a reserve of 150 million tons of grain, "... including three of the most important crops in China: rice, wheat and corn.
Nicaragua will eliminate the 35% tax on Colombian imports, which created a a disadvantage to local businesses compared to the rest of the region.
The abolition of the tax will be effective in a few weeks and follows an agreement between businesses and the government.
Jose Adan Aguerri, president of the Superior Council of Private Enterprise (COSEP), said that the tariff be suspended by way of a reform initiative to be adopted in Parliament after 9th April.
In times of low cotton production, the Latin American textile industry protests against restrictions imposed on exports from India.
The price of cotton has risen more than 70% so far this year, as a result of lower production, a situation that profoundly affects the textile industry.
India, a major producer of cotton and textile products, imposed in April restrictions on cotton exports, which contributed to increase the price for textile producers from other countries.