This is good news for Central American textile manufacturers. We will have to wait and see what other protectionist measures will be implemented by President Trump.
The possibility that the United States buys textiles from Vietnam at lower prices than those paid by textile manufacturers in Central America seems to have now disappeared, however, in order to measure the true impact of the Trump protectionist policy on trade between US business and the region we will have to wait to see what other decisions on international trade deals are take by the new administration.
Guatemala carriers have blocked passage through customs posts at Pedro de Alvarado, Jutiapa, in protest against the excessive slowness of procedures for entering El Salvador.
The slowness of customs formalities as a result of the computer system crash caused some 300 carriers to form a blockade using their trucks from Sunday February 28th on the route to the customs office in Ciudad Pedro de Alvarado, located in Moyuta, in the Guatemalan department of Jutiapa, on the border with El Salvador.
While authorities have reactivated the process for binational customs liberalization, entrepreneurs have pointed to constraints on issues related to bureaucracy, corruption, and infrastructure at border crossing points.
The governments of Guatemala and El Salvador have resumed work in Technical Groups to liberalize binational border posts. In a statement, they reported that dialogue has been revived over customs, sanitary and phytosanitary issues, migration, security, and legal and tax issues.
Lala Group intends to take advantage of the free transit of goods in Central America to produce and export milk from Nicaragua to the entire region.
The Mexican company Lala confirmed the positive performance of Nicaragua's economy, announcing its intention to turn the country into a production hub and to export dairy products to the rest of Central America.
There is still no legal framework to manage the international cooperation funds that would finance the implementation of the customs union between the two countries.
Even though the Central American Economic Integration Secretariat (SIEC) announced "progress" in the process of the Customs Union between Guatemala and Honduras, Elperiodico.com.gt denounced the obstacles preventing it, "...
Money in the pocket for every grandstanding politician and every wannabe business consultant, logistics in Central America is a much talked about theme on which no action is actually taken.
EDITORIAL
Logistics is vital for sustainable economic development, and it is perhaps the area of business management that has made the greatest strides in the last 50 years.
The main issue of concern is the slow pace of intraregional trade, which in particularly is hindered by customs offices in the isthmus.
The quarterly meeting of the executive directors and presidents of the Federation of Chambers and Industry Associations of Central America (Fecaica) showed the concern of the sector over measures such as the charging at offices in El Salvador of an $18 fee for the service of scanning the cargo passing through.
The World Trade Report 2013 focuses on trade as cause and effect of the change, and examines the factors shaping the future of global trade.
The world is changing extremely rapidly under the influence of many factors, among which are changing patterns in production and consumption, constant technological innovation, new forms of trade and obviously political policy.
Despite an agreement reached between the two countries, El Salvador´s poultry industry has not yet been able to resume exports of eggs to Honduras.
According to provisions agreed to last year, the National Agricultural Health of Honduras (SENASA) should inspect poultry farms in El Salvador prior to approval of exports. This in order to make sure the eggs do not come from birds vaccinated against the flu.
As consequence of El Salvador eliminating export incentives, the Dominican Republic will not impose further restrictions.
Dominican Vice Minister of Commerce, Mario Roger Hernandez, said the move responds to the approval of El Salvador's decree eliminating staring February 1st, the export incentive known as 'drawback'.
"Trade authorities of the island, which since 2009 began to impose trade barriers to El Salvador, acknowledged the effort to resolve the situation in the country, said René Salazar, head of the Department of Treaty Trade Administration (DATCO)", reported Laprensagrafica.com.
Seasoned in negotiations with Europe, Central American employers are demanding to political sectors to accelerate the process for the economic integration of the isthmus.
50 years after the signing of the General Treaty of Central American Integration, over 40 million people living in the region still do not enjoy the economic benefits and development opportunities that could effectively be consolidated if Central America would act as a single economic unit, much like the European Union.
In times of low cotton production, the Latin American textile industry protests against restrictions imposed on exports from India.
The price of cotton has risen more than 70% so far this year, as a result of lower production, a situation that profoundly affects the textile industry.
India, a major producer of cotton and textile products, imposed in April restrictions on cotton exports, which contributed to increase the price for textile producers from other countries.
Dominican Republic provisionally lifted, until December 31, restrictions for Salvadoran products.
The Minister of Industry and Commerce of the Dominican Republic, Jose Ramon Fadul, announced on Thursday consensus by the Dominican Government to accept provisional certifications issued by the Ministry of Economy of El Salvador, so imports from that country benefit from preferential trade.
The Dominican government said they are willing to negotiate with Central America the imposition of tariffs on 26 products from the Isthmus.
The Dominican Republic's Trade Minister, Ramón Fadul said in a statement that tariffs on Central American goods do not violate free trade agreements, but are part of safeguard mechanisms established in the treaties themselves.
The case before the World Trade Organization (WTO) is due to high tariffs imposed on products from the region.
Representatives from El Salvador, Honduras, Guatemala and Costa Rica, decided to file a lawsuit due to the "negative effects" for the region as a consequence of the measure taken by Dominican Republic.
"'There was an agreement between the four countries to operate under the WTO and to examine whether these measures are based on safeguarding or is an arbitrary arrangement," said Guatemalan Vice Minister of Economy, Raul Trejo, to ACAN-EFE.