Product distribution companies in the North of Central America are paying monthly installments of $100 per truck to organized criminal groups.
Far from declining, the cost and problems caused by extortion for companies in Central America, continue to rise and is harming regional trade. In Honduras alone, Eleconomista.net reported, "... between 2012 and 2013 some 18,000 businesses closed because of pressures from gang members and consequently some 72,000 direct jobs were lost."
Currently being contemplated is the possibility of canceling the contract for the construction and management of the airport, awarded in January, and putting out a new tender for the procedure.
Due to the fact that airport safety in the country is now the responsibility of the government, the Commission for the Promotion of Public Private Partnerships (Coalianza) has announced that they are studying the possibility of canceling the contract which was awarded to Saisa, which included the management of security, and instead launching a new tender which would remove the issue of security from the contract.
On August 22nd the Canadian Food Inspection Agency will host a free webinar on the proposed new regulatory framework and standards of food safety.
From a statement issued by the Foreign Trade Promotion Office of Costa Rica (Procomer):
The Canadian Food Inspection Agency will be conducting a webinar (online seminar) for free and in English, with emphasis on information of interest to small businesses on Friday 22 August.
The cruise line Royal Caribbean International, Norwegian Cruise Line and Carnival Corporation are reviewing security measures implemented on the island with the government.
Reinforcing the image of the destination and defining a new security strategy for the Island of Roatan, including the recommendations of security directors of the three largest cruise lines in the world is the goal of the meeting between these businesses and the national authorities on security and tourism.
President Juan Orlando Hernández has completed his first 100 days in office with an executive style that is vastly different.
The article Elheraldo.hn reports that several sectors have felt, "an unprecedented economic and social change" since Juan Orlando Hernández took office as president.
" ... During this time the Nationalist government has implemented strong measures on security, employment, health, education, finance, tourism and development, which has marked a full agenda that involves an economic and social re-boot for the nation. "
A series of new rules proposed by the FDA are in public consultation with the aim of improving practices in sanitary food transportation and avoiding tampering.
From a press release by the Inter-American Institute for Cooperation on Agriculture:
Two new proposals by the Food and Drug Administration (FDA) would force food producers and importers in the country to improve the practices of sanitary transportation of food and implement actions to prevent intentional adulteration. "
The Ministry of Health in Panama is putting out to tender the supply and implementation of a security and video surveillance system in several buildings.
Panama Government Purchase 2014-0-12-0-08-010744-AV:
"SUPPLY, INSTALLATION, CONFIGURATION AND IMPLEMENTATION OF A SECURITY AND VIDEO SURVEILLANCE SYSTEM IN MOH BUILDINGS 237,238,240,253,255,261 AND 265."
The government confirmed the $30 million purchase of a 360 degrees capacity radar and two additional small ones.
This was announced by Chief of the Armed Forces of Honduras, René Osorio, who added that the radars bought in Israel will arrive in the country in late January.
"The purchase was made via financing with a maturity of 10 years and the equipment will be installed at strategic points in the Central American country," noted an article in Proceso.hn.
With funds from the Security Fee the Judicial Council will hold a tender for the purchase of 24 armored vehicles.
"We have to find the best deal, to make the most of the money so we can acquire these vehicles," said Francisco Quiroz, a member of the Judicial Council.
The cars will be used by all judiciaries in the country to provide protection for judges who are at risk because of their activities, especially those related to extradition cases.
The National Council for Defence and Security plans to spend $30 million on three radars to detect aircraft entering the country illegally.
The equipment will be acquired through a loan with a ten year payment plan which is expected to arrive in the country later this year, and will be used to combat drug trafficking activities, said René Osorio, head of the Joint Chiefs of the Armed Forces.
The project to produce a tourist map which indicates which are the safest places for visitors continues, due to high crime rates affecting the industry.
It is estimated that in the last five years, visitor arrivals have declined by 10%, which could jeopardize the target revenue of $700 million expected for this year.
Countries such as the USA, Canada, England, Italy, Germany, Spain and Japan have warned citizens about the risk of traveling to Honduras.
The search for safe habitats and the shortage of land in the central areas of Tegucigalpa and San Pedro Sula, is driving the construction of high rise apartments and gated communities.
The phenomenon occurs mainly in Tegucigalpa and San Pedro Sula. "The projects being constructed in the new development areas have emerged in recent years following the decline of the historic center of Tegucigalpa, another trade hub of the city, which has been losing its glamor coupled with a lack of planning policies and a commercial road," reported Laprensa.hn article.
Central American industry is calling for strengthening of customs controls in the region, in order to contain the constant border crossings made with smuggled goods.
According to Carlos Enrique Rivera, secretary general of the Federation of Chambers and Industrial Associations of Central America and the Dominican Republic (FECAICA), at the border located in Melchor de Mencos, Peten, which borders Belize, there is no control to prevent the entry of illegal goods, which apparently heads toward Mexico, but 15% remains in Guatemala, without having made tax declarations.
The phenomenon affects much of Latin America, whose countries spend on average 8% of their GDP on security costs.
That was the conclusion reached during the forum "Connecting businesses as partners for prosperity with security in the Americas", organized by the Organization of American States (OAS) and the private sector, under the framework of the Guatemala Investment Summit.
The movement of illicit capital in Costa Rica and Panama counts for more than 10% of their respective GDP, meaning that its removal would be a major blow to their economies.
Editorial
The report entitled "Illicit Financial Flows from Developing Countries: 2001-2010" by Global Financial Integrity, reveals that during the first 10 years of the new century, the flow of illicit money in Costa Rica amounted to $64 billion, while in Panama the total was $40 billion.