Because of the economic crisis, Foreign Direct Investment flows have practically vanished, and in order to attract the few investments that are projected for next year, countries are expected to compete by offering incentives and aid programs for businesses.
The covid-19 outbreak dissipated the investment intentions of companies globally. At the beginning of the fourth quarter of the year, there are signs that business confidence has begun to recover; however, pessimism among investors is expected to continue next year.
Between 2017 and 2018, milk sales from Costa Rica to Panama fell 24%, explained by increased competition, while exports to Guatemala and the Dominican Republic increased 21% and 13%, respectively.
According to figures from the Promotora del Comercio Exterior (Procomer), between 2017 and 2018 sales to Panama of milk and cream not concentrated and concentrated registered a 24% decline, falling from $7.5 million to $5.6 million.
Arguing that dumping practices exist by China and are not competing on an equal basis, businessmen from the sector in Guatemala request the intervention of the authorities.
Through a statement from the Chamber of Industry of Guatemala (CIG), explained that in recent years, China, through its improper business practices including dumping and subsidized prices, has affected local production.
Arguing that in Guatemala, milk from other countries in the region is being traded at a lower price than that sold in the countries of origin, producers in the country announce that they will submit a complaint.
The Representatives of the Chamber of Milk Producers of Guatemala announced that the complaint they are preparing will be filed with the Ministry of Economy, through the Directorate of Foreign Trade Administration (DACE).
The Association Agreement with the EU will involve the creation of a regional body for the implementation of regional competition policies.
From the newsletter of the Costa Rica’s Commission to Promote Competition (COPROCOM):
The single market is one of the greatest achievements of the European Union. They have gradually been eliminating restrictions on trade and competition between Member States, which has resulted in an increase in living standards. This same challenge now faces the Central American region, and the authorities responsible for regulation will play a crucial role in ensuring success.
"For every cup of coffee sold at $3 in U.S. stores, just $0.03 goes to producers in Latin America" (Cuentos Chinos, Andres Oppenheimer).
An article by Daniel Calvo in Elfinancierocr.com reports on how the opening of the first Starbucks in Costa Rica has restated an old theme: "Should we be satisfied with being only grain suppliers?"
Calvo says "In the era of a knowledge economy, value-added products are worth much more than raw materials, so we must shape our exports according to this method."
Being the sole operator of the Guatemala - Mexico route, TACA was able to charge more than $700 a ticket. Now that Aeromexico and Interjet have arrived, prices have fallen to less than half that price.
Last week the Mexican low-cost airline Interjet announced two daily flights between Guatemala City and Mexico City from July, with rates from $249 roundtrip including taxes.