Central America's direct competitor in the market is using the TLC it has with the northern country to increase sales of agricultural products, textiles and other manufactured goods.
The reduction in sales of Colombian oil to the United States is forcing the South American country to diversify its exports to the North American market, where positioning has been improved mainly of agricultural products such as fruits and seeds and manufactured goods such as textiles and apparel.
Market studies reveal great opportunities in the U.S. market for ready to consume tilapia fillets.
From an article by the Costa Rican Trade Promotion Office (PROCOMER):
Fresh tilapia fillets which are ready to prepare became today the most important choice for the farmers in the Department of Huila in Colombia, when competing in the world market.
Since the entry into force in 2006 of the DR-CAFTA, the tip in favor of the U.S. in the trade balance has multiplied by 5.
"The Central America to which President Barack Obama is coming to visit on on Friday is a region that maintains multiple communication vessels with the United States, including a growing trade relationship which in 2012 amounted to $40 billion, although very much in favor of the American power," reported Prensa.com.
Before the end of April, the Philippines will be sending its first shipment of three thousand tons of Cavendish bananas to the United States.
From an article by the Costa Rican Trade Promotion Office (PROCOMER):
The Philippine government said on Monday that the first shipment of 3,000 tons of Cavendish bananas bound for the United States will finally be sent before the end of April.
Using first world technology and management the Panamanian company Veggie Fresh Invest will be sending two containers a week of hydroponically produced peppers to the U.S..
"I would say we did things as they should be done, which is a little opposite to how traditional farmers do things: first plant and then look for the customer," said the entrepreneur Guillermo Villarreal, owner of the company.
In U.S. restaurants tropical fruits at are fast becoming favorites.
A statement from the Costa Rican Foreign Trade Promotion Office (PROCOMER) reads:
Restaurant chains in the U.S. demand more tropical fruits
The tropical fruit category is fast becoming a favorite in the food service chain in the U.S., "we are seeing tropical products, including mangos, becoming increasingly popular in the food operations sector", explained Charlie Eagle, vice president of the business development company Southern Specialties Inc.
Textile exports to the United States reported at the end of 2011 an increase of 25%, with the largest exporter being Honduras, followed by El Salvador.
Marisa Mont, a technician at the Economic Integration Secretariat, outlined the results, "Recovery begins from 2010 and is growing exponentially. This demonstrates an upward trend and that clearly is going to continue, although it is probably not going to keep growing by 25%, but it is an uptrend.
Regional exporters of fresh food products to the United States must renew their registration with the FDA between October 1 and December 31.
A statement from PROCOMER reads:
Costa Rican exporters must renew their registration with the U.S. FDA
Costa Rican exporters of food and fresh produce as well as other countries whose products are destined for the U.S., must renew their registration with the FDA as part of the measures included in the Food Safety Modernization Act (FSMA), adopted earlier this year to improve the safety of food consumed in this country.
Many Central American exports to the Northern country will be affected by the increased competitiveness of Colombian products.
The entry into force of an FTA between Colombia and the USA brings new challenges to many economic sectors in Costa Rica and other Central American countries who will now competing with Colombian products in the same entering in the duty-free category.
Unilever, which owns the Lizano line, will be selling products in these new markets, the first ones outside of Central America.
California, Texas, New York and Florida will be the first U.S. states where Lizano sauces will be sold in local stores.
"According to Marcelo Rosatto, the company’s vice president of food marketing for the region, the plan is to penetrate the so-called "nostalgia market", which is made up of people in the country looking for Hispanic products," reported Elfinancierocr.com .
From March new requirements imposed by the Food and Drug Administration will be implemented progressively on food imported by the United States.
The U.S. Food and Drug Administration (FDA) will begin to implement requirements for a new Food Safety Law relating to products exported to the country from March.
Among other changes, from now on there will be stricter rules on labeling, improved hygiene conditions, prohibition of certain elements in food preparation and nutritional information.
A bill will impose more stringent requirements for labeling, product production and processing, and even the prohibition of certain ingredients.
Starting from March, the U.S. will toughen requirements for exports to its market through the Safety Act or Food Safety Modernization Act, which aims to prevent illness from the consumption of imported foods, reported Prensa.com.
Starting January 2012 nutrition labeling of single-ingredient foods such as ground meat and poultry will be required.
On December 29, 2010, the Food, Safety and Inspection Service (FSIS) has changed regulations on meat and poultry products. The changes will come into effect on the 1st of January 2012.
The measure involves the manufacturing of food produced in the U.S. as well as imported goods.
If we take into consideration which economies fared better in the crisis, we should seek trade partners in Asia and not in Europe.
Manuel Hinds analyzed El Salvador’s economy and exports, and his findings can be applied to the entire region. Costa Rica has already started the essential road to diversify its exports markets by closing Free Trade Agreements with China and Singapore.
The chief economist at the Central American Bank for Economic Integration (BCIE), Pablo Rojas, said that the regions possibilities for export to the United States continue to be favorable despite the economic recession that is affecting the country to the north.
"Exports to the United States have continued to grow at the same rate as in 2007 according to the latest data from sources in United States as well as from Central America," he said.