Guatemalan exporters report that President Trump's warning about export tariffs and taxes on remittances and transfers is raising doubts among U.S. buyers.
Uncertainty prevails among most Guatemalan businessmen after President Trump reacted to the provisional protection established by the Guatemalan Constitutional Court, which limits the functions of the Executive Branch to negotiate or sign any foreign policy agreement.
A virtual seminar has been organized for April 5, on recommendations to negotiate with Indian companies and best practices for exporting to that market.
From a statement issued by PROCOMER:
ConnectAmericas, anonlineplatformcreated by the Inter - American Development Bank (IDB) with support from Google, DHL, Visa and Alibaba will be holding afreewebinaron essential tips for doing business in India, on April 6 at 10:00 am, in which best practices for entering the Indian market will be explored and useful guidelines will be provided for the export process.
A free webinar has been organized for September 8 which will address the basic guidelines for exporters to sell in the South American country.
The webinar organized by the Inter-American Development Bank will be held on Thursday, September 8 at 10 am (Central American time), through the ConnectAmericas platform.
It will address best practices for export to Brazil, including basic guidelines for exporting to this market, including the role of customs, major regulatory agencies and import requirements.
In the last two years Guatemala has doubled its exports of biscuits, sweets, chewing gum, confectionery, and preparations for soup and drinks going to the Dominican Republic, Cuba, Jamaica and Trinidad and Tobago.
In the first half of this year sales by the food industry to Caribbean countries topped $20 billion, $13 billion more than in the same period in 2013.
Exporters claim that the Ministry of Finance takes up to 10 months to give credit notes for tax refunds, accumulating a debt of $70 million.
To date the Ministry of Finance has issued $41 million in Treasury credit notes (NCTP) to pay off part of the debt. However, representatives from the Corporation of Exporters of El Salvador (Coexport) state that this type of payment represents a loss for exporters, as NCTP's can be sold but wat a discount of up to 5%.
The conflict over charging for non intrusive inspections at borders has negatively affected exporters.
In January there were exports for $402.8 million, 16% less than the amount reported in the same month in 2013, when $477.9 million worth of goods was sold abroad, according to the Central Reserve Bank (Banco Central de Reserva).
The conflict over the $18 charge for inspection using scanners at customs offices has negatively affected exporters.
Of the major producers in the region, Nicaragua was the most affected, having exported 64% less in the first four months of the harvest.
Except for Brazil coffee exports from nine countries in Latin America fell by 8% during the first four months of the harvest which began in October compared with the same period of the previous cycle. Nicaragua was the most affected with a fall of 64 % in sales of the grain.
An increase in non- traditional exports offset the fall in foreign sales of traditional products.
According to the report entitled "Trends in Foreign Trade in 2013 in El Salvador" prepared by the Ministry of Economy (Minec) exports in 2013 totaled $5.491 billion, an increase of 2.8 % compared to 2012, when the total figure was $5.339 billion .
$3.908 billion worth of non-traditional products were exported last year, while in 2012 the figure was $3.765 billion. Exports of traditional products were down $42 million, totaling $424.9 million in 2013.
During 2013 foreign sales of 2 thousand tons generated revenues of $6.1 million.
Data from the Ministry of Economy (Minec) reveals that in recent years Salvadoran honey has gained ground especially in the European market. During 2013 foreign sales of the product generated revenues of $6.1 million, which is 29% more than in 2012, when $4.7 million worth was sold.
At the end of 2013, the difference between exports and imports continued to rise reaching $5.281 billion.
Data from the Central Reserve Bank (BCR) reveals that in late 2013 the trade deficit amounted to $5.2809 billion, compared to the same period of 2012 when it was $4.919 billion, which represents an increase of 7.4%.
"... growth of the trade deficit is worrying, there is a higher output of currency from El Salvador than the amount coming in through exports," said economist Claudio Rosa.
Sugar, coffee, fishmeal, plastics and paper products are the best selling products to the Asian island.
According to the Taiwanese Embassy in El Salvador during the first 11 months of 2013, exports from the Central American nation to Asian countries grew by 576 %. Among the products that are exported to Taiwan are sugar, coffee, fish meal, paper, cardboard, plastics.
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 .
The entry into force of the FTA with the European Union opens up opportunities for Colombia products such as lemons, Tahiti, papaya, cantaloupe and watermelons.
From an article by the Costa Rican Trade Promotion Office (PROCOMER):
With the entry into force of the FTA between the EU and Colombia, as of August 2013, the Colombian are looking to to venture much further into markets such as the German one, because one of the signs of the growing deamand in Europe is that 46% of imports which arrived at Frankfurt airport, which weighed 98,600 in 2012, were for fruit and vegetables.
During the 2013-14 harvest ending on October 31 490,000 metric tons of sugar were exported while in the previous harvest the amount was 412,000 MT.
According to the Sugar Association of El Salvador , the main destinations of the country's raw sugar are the USA, Chile, Russia, Taiwan and Canada. Meanwhile, the refined product is sold to the Netherlands, Chile, Taiwan and other Caribbean countries .