Unless intra-regional trade in chemical contents and residues, micronutrients and food preparations is regulated in a balanced manner, trade relations in Central America could face obstacles in the future.
Trade between Central American countries is essential, since a considerable proportion of foreign sales by local companies are destined for other markets in the region.
Due to the tropical storms Eta and Iota, severe damage has been reported to the road network in Central American countries, and some border posts in Guatemala, Honduras and El Salvador have been suspended.
Since November 17, operations were suspended at the El Corinto, El Florido and Aguas Calientes border posts. These areas, shared by Guatemala and Honduras, are not operational, according to the Guatemalan Superintendence of Tax Administration (SAT).
As of October 1st, Guatemala and Honduras will begin operating three Peripheral Customs Offices, areas that will simplify procedures and allow free community mobility between both countries.
Guatemalan and Honduran taxpayers who make definitive imports to each State Party will be the ones to benefit from the implementation of this type of customs, since the goods imported under this modality will enjoy free mobility.
After the Panamanian government agreed to ban the entry of animal products from Costa Rica, Panamanian businessmen supported the measure and asked to discuss the export and import requirements, since they claim that their agricultural products are prevented from accessing the Costa Rican market.
The trade dispute began when on July 10 Panama informed the National Animal Health Service (SENASA) of the Costa Rican Ministry of Agriculture and Livestock (MAG) of the decision not to extend export authorization to a list of previously authorized Costa Rican establishments that have been exporting to Panama for many years.
Following Panama's blockade of the entry of animal products from Costa Rica, arguing that the permits have expired, Costa Rican authorities decided to notify the World Trade Organization of the dispute.
On July 10, Panama informed the National Animal Health Service (SENASA) of Costa Rica's Ministry of Agriculture and Livestock (MAG) of the decision not to extend export permits to a list of previously authorized Costa Rican establishments that have been exporting to Panama for many years.
Because Costa Rica has imposed several restrictions on the movement of goods entering its territory, the Guatemalan government announced that it will apply reciprocal measures to Costa Rican transporters from June 9.
From three to five days, the time that Costa Rican carriers have available to stay in Nicaraguan territory, to unload goods or for regional transit, was increased.
After several days of tension generated by the restrictions imposed by Costa Rica on the transport of cargo from neighboring countries, Central American authorities reached an agreement and opened the way at the border of Penas Blancas.
After Costa Rica imposed several restrictions on the movement of cargo entering its territory, the Panamanian government limited the permit for Costa Rican carriers to remain in the country to 72 hours.
The transit of goods in the region is becoming more complicated every day, since it is argued that the propagation of the covid-19 is being mitigated.
After the Costa Rican government decided to impose several restrictions on heavy transport units entering its territory, the Honduran government decided to grant Costa Rican pilots only 72 hours in the country.
The Mocalempa customs and immigration control post in the Honduran province of Lempira began operating.
In order to make it easier for customs users to pay taxes and combat smuggling, the Government of the Republic, through the Presidential Commission for Comprehensive Reform of the Customs System and Trade Operators (Coprisao), today opened Customs Mocalempa, in the Mancomunidad Mapulaca, south of the department of Lempira, border between El Salvador and Honduras, informed the Presidency of Honduras.
During the first five months of the year, exports totaled $1.145 million, 10% less than in the same period in 2018, and export destinations also declined in the period concerned.
According to data from the Centro de Trámites de Exportaciones (Cetrex), between January and May 2018 and the same period in 2019, foreign sales decreased by $134 million, going from $1.279 million to $1.145 million.
In the first four months of the year, sales abroad reached $1.932 million, 4% less than reported in the same period of 2018.
From the Central Reserve Bank report:
The manufacturing industry, including the maquila, exported US$1,859.5 million with -3.9% year-on-year growth (US$75.4 million less), mainly because of the decrease in foreign sales of clothing, food products and manufacture of common metals; however, other sectors reported increases in their exports, among them: manufacture of textile products (US$11.3 million more), manufacture of paper and paper products (US$6.5 million), agriculture, livestock, hunting and related service activities (US$4.5 million); manufacture of other non-metallic mineral products (US$2.4 million), other manufacturing industries (US$2.3 million), supply of electricity, gas, steam and air conditioning (US$2 million), among others.
During the first two months of the year, the trade balance recorded a $914 million deficit, resulting in a 24.3% increase over the $735 million reported for the same period in 2018.
Up to February 2019, the general merchandise trade balance registered a $914.2 million deficit, $178.8 million higher than the accumulated in the same period of 2018, a change explained by the 14.6% drop in exports ($124 million) and a 3.5% increase in imports ($54.8 million), according to a report by the Central Bank of Honduras.