The sale of synthetic fibers increased by 133% between November 2012 and March 2013.
Statsistics from the Central Reserve Bank (BCR) reveal that between November 2012 and March 2013, exports of synthetic fibers to Europe increased from $1.4 million to $3.4 million, which is 133%.
"In other categories, food products such as honey increased sales by 29.8%, going from $4.3 million to $5.6 million."
The elimination of tariffs on agricultural products and flexible rules of origin for products such as tuna, textiles and plastics are part of the changes incorporated in the Agreement.
The Minister of Economy, Sergio de la Torre said that in the next few years Guatemala's exports to Europe could be doubled, as has happened with the other trade agreements that the Central American nation has signed.
On 25 and 26 November a seminar will be held to train Salvadoran SMEs in the legal regulations and requirements needed to export to the European market .
From a press release issued by the Ministry of Foreign Affairs of El Salvador:
The Government of El Salvador with the European Union will hold on the 25th and 26th of November, the "CA- EU Partnership Agreement: opportunities to export" a seminar-workshop, in order to support small and medium enterprises in the Salvadoran process of internationalization and diversification of markets and products to Europe, as part of the trade pillar agreement which came into force on 1 October .
Nicaragua is able to sell 10,163 metric tons duty free to the EU.
Altogether, the Central America's total export quota adds up to 150,000 tons.
Mario Salaverria, president of the Sugar Association of El Salvador said the decision to sell the sugar was due to "uncertainty about the problem they had with Italy and that delivery times won't allow them to make the most of this access."
With the entry into force of the Association Agreement with the EU exporters will find consumers who demand quality in products and services but at a lower price.
When negotiations began on the trade agreement in 2008, its reference point was the stability that existed at that time on the continent. However, after the economic crisis hit Europe, the outlook now is different.
In the remainder of the year Nicaragua will only take advantage of 30% of the eight million pieces of textiles that the EU has assigned it, meaning that sales will be worth just $2 million.
Dean Garcia, executive director of the Nicaraguan Association of the Textile and Apparel Industry, explained that with one quarter of the year left it will be difficult for Nicaraguan firms to find new European customers.
FECAEXCA has submitted a regional strategy for the Association Agreement to be an effective tool of investment, business and employment generation.
From a press release issued by the Guatemalan Association of Exporters (Agexport):
Central American exporters meeting in the Federation of Chambers and Associations of exporters from Central America and the Dominican Republic, FECAEXCA, has delivered to its governmental and private initiative authorities a regional strategy for the Association Agreement to be an effective tool for investment, business and generating employment for regional countries.
Nicaragua and Honduras are allowed to sell 65,000 more metric tons duty-free to the European Union.
The country has given approval for both Nicaragua and Honduras to receive this benefit temporarily, until the trade agreement becomes effective for Guatemala. "The Council of Ministers of Economy and Trade for Central America (Comieco) gave authorization this weekend for each country in the region to be able to make available its quotas at will" reported Nicaraguahoy.info.
The European Union will not mediate in the distribution between the Central American countries of the sugar quota of 60,000 tonnes allocated to the region.
"The European Union will only check the total regional quota has been reached and will not intervene in how it is distributed among the five Central American countries. The distribution and quota management is an internal matter for the Central American region," said Klara Klanska, commercial counselor of the EU to Central America.
Nicaragua and Honduras want to regionalize the EU quota, to be able to offer 53,000 tons of sugar.
Producers want the export quotas that the sugar growers in Costa Rica, El Salvador and Guatemala were not able to meet, as in those countries the Association Agreement is not yet in force, said Mario Amador Rivas, general manager of the National Committee of Sugar Producers (CNPA).
During the first six months of 2013 foreign sales totaled $2.822 billion, $151 million more than in the same period in 2012.
From a press release issued by the Central Reserve Bank of El Salvador:
Total exports to June of this year amounted to $2822.2 million, up $150.6 million compared to the same period in 2012, the growth rate was 5.6% per year, with a gradual recovering its dynamism, informed the Office of Economic Studies and Statistics of the Central Reserve Bank of El Salvador.
With the delay in the entry into force of the AA, sugar producers in El Salvador will lose out on $2.5 million this year, from not exporting 10,000 tons to Europe.
"We could lose out on about $2.5 million, that's both producers and millers," said Julio Arroyo, CEO of the Sugar Association of El Salvador (AAES), adding that they still have the possibility to make the shipment and they have not looked for other recipients for the 10 thousand tons.
Despite being a major producer of canned tuna in Europe, Italians import 87,000 tonnes a year in order to meet domestic demand.
From an article by the Costa Rican Foreign Trade Promotion Office (PROCOMER):
Italy consumes a significant amount of tuna, in canned form and yellow fin and bluefin tuna, which is equivalent to about 141,000 tons per year, 2.3 kg per capita, valued at $1.47 billion.
The sector, which was ready to export 10,000 tonnes of sugar to the European Union, must wait two more months to do so.
Non-acceptance by dairy farmers in El Salvador and Costa Rica of the geographical indicators for Italian cheeses has caused a delay of at least 60 days of the entry into force of the Association Agreement with the EU.
"We were ready to export, but if there is no treaty we will have to send the sugar to another market at a lower price than would have been paid by the Europe" said Julio Arroyo, CEO of the Sugar Association of El Salvador.
Each of the Central American countries are entitled to export a minimum of 160 tons, with flexibility of origin.
Each of the countries has been assured 4% of the four thouand metric tons which correspond to exports to the European Union.
According to Salvador's Deputy Minister of economy, Mario Hernandez, the agreement establishes that among the six countries of Central America, 24% of the quota will be distributed equally, ie 4% or 160 metric tons.