As of March 1st, the Free Trade Agreement signed between the Republic of South Korea and Central American countries will become effective.
After several years of negotiations, the trade agreement between the countries of the region and the Asian nation will finally come into force next Monday.
Ramon Martinez, Minister of Commerce and Industries of Panama, said that "...
With the recent signing of the U.S.-Canadian-Mexican trade agreement, a precedent was set for future negotiations, as this agreement sets binding labor conditions, such as making exports subject to the payment of a minimum wage.
For example, one of the conditions of the Treaty between Mexico, United States and Canada (T-MEC), which was signed on December 10, 2019, is that vehicles exported from one state of Mexico to the other two countries "must come from plants that pay wages not less than $16 an hour.
Authorities from the European country are asking the region to speed up the processes so that the Association Agreement between the United Kingdom and Central America can be ratified before October 31 this year.
Since August 23, Simon McDonald, Undersecretary of Foreign Affairs of the United Kingdom, makes a tour through Central American countries, in which he has requested that the procedures for ratifying the Agreement signed with the region be expedited.
It is announced that technical groups from the governments of El Salvador and Guatemala began negotiations in London to conclude a new trade agreement.
Now, there is a possibility that the agreement the region seeks to sign with the European country will not be consolidated, since it is not yet clear how the process of Britain's exit from the European Union will be carried out, an issue that is generating great tension between the British Parliament and Prime Minister, Theresa May, at this very moment.
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.
In the next six years, the EU will invest in regional customs strengthening which it considers essential for harnessing the benefits of the AA.
Laprensa.com.ni reports: "With the support of the Central American Economic Integration Secretariat the EU will start a Support Programme for Central American Economic Integration and Implementation of the AA".
The current $550 million from the annual sales of Guatemalan products and services to Mexico could double with the entry into operation of the unified FTA between that country and the Central Americans.
Guatemalans are hoping that exports to the Aztec nation will double with the entry into force of the agreement which unifies the Mexican FTA's that were held separately with Costa Rica, Nicaragua and the CA-3.
In late 2012, one year after the signing of the new trade agreement, trade between Mexico and the region totaled $9.3 billion.
This information was released by the Mexican ambassador in San Salvador, Raul Lopez Lira. "On September 1 the Central American countries will celebrate the first anniversary of the unified treaty between Mexico and the region with a significant increase in trade ...", reported Laprensa.com.ni article.
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.
The region's exports in 2012 have been valued at $29.636 billion FOB, which is an increase of 7% compared to the exports recorded in 2011.
CENTRAL AMERICAN EXTERNAL TRADE
Newsletter: January-December 2012
Central America, April 5, 2013. The region's exports had an FOB value of USD $29.6359 billion during 2012, which is an increase of 7.0% compared to exports recorded in the previous year (U.S. $27.6983 billion).
The Inter-American Development Bank has launched a new version of the Intrade website with information on tariffs and trade agreements for companies and countries seeking new markets for their exports.
A statement from the Inter-American Development Bank (IDB) reads:
IDB launches new version of Intrade, the most complete business information system in the region.
The first countries to enforce this Unified Agreement will be El Salvador, Nicaragua and Mexico and the other countries of the region are still in the process of ratification with the Legislature.
A press release from the Ministry of Economy of El Salvador (Minec) reads:
Starting from September 1 the new unified FTA between Central America and Mexico takes effect, under which the three FTAs that Mexico had to date with Costa Rica, Nicaragua and the Northern Triangle (Guatemala, El Salvador and Honduras), are consolidated into one agreement.
The government of the Asian power has an interest in negotiating a free trade agreement with the entire region seen as one market.
In the near future, a matter of months, South Korea wants to begin negotiating a free trade agreement with Central American countries, said the South Korean ambassador in Nicaragua, Soon Tae Kim.
"My government is currently studying with Central American countries in this regard (the feasibility of an FTA).
Until now Mexico has had a separate bilateral treaty with Costa Rica, Nicaragua and the Northern Triangle consisting of El Salvador, Guatemala and Honduras.
The Unified Free Trade Agreement (FTA) will be signed today, November 22 in San Salvador, said El Salvador’s finance minister.
"The agreement provides a common legal framework for the conduct of trade in goods and services between parties, as well as the establishment of investment in the region, he said in his announcement", reported Prensa Latina.
Access for sugar and the rules of origin for textile goods are delaying the negotiations for unification of the FTAs between Mexico and the region.
Before the 17th of October, the planned date for signing the agreement, negotiations in these areas must be concluded.
The Costa Rican Minister of Foreign Commerce (Comex), Anabel Gonzalez said ... that the general framework of rules or the convergence of three FTA’s between the isthmus and Mexico is finalised, except for ... very specific issues regarding the three products.