In the view of businessmen in Guatemala, the country has become a connection center for merchandise that is transported illegally from the Colon Free Zone, in Panama, to the Corozal Free Zone, in Belize.
Within the to and fro of contraband products moving from the south of Central America on the route to Mexico, a significant amount stays in Guatemala, where criminal structures are responsible for "marketing" these products throughout the territory.
The union of Guatemalan industrialists will propose a development agenda, with the aim of improving economic conditions and recovering some of the investment lost in recent years.
The impact of illicit trade in Guatemala is such that "in the case of the paper industry, smuggling has grown to the point of taking away a portion of the market from companies and 30% of their turnover."
Guatemalan businessmen say that out of every ten products sold in the country, three are of illegal origin.The impact of illicit trade on business activity can already be seen in the turnover of companies, who are also forced to reduce their employee payrolls.
It is estimated that 4 out of 10 products that are sold in the local market are of illegal origin, mostly medicines, liquors, soft drinks, beers and cigarettes.
The union of Honduran businessmen estimates the country's losses caused by contraband goods at $127 million, a phenomenon which occurs to a greater extent in products for human consumption, such as medicines and beverages.
Guatemalan businessmen are demanding stricter laws to combat the illegal entry of goods from Mexico, which are now being sold in El Salvador and Honduras.
Food and beverage companies say that in the municipality of Acajutla, El Salvador, it is possible to buy oil, flour and crackers that were illegally smuggled in from Mexico, first passing through Guatemalan territory, and eventually being sold on Salvadoran soil.
Local manufacturers are demanding better controls on the illegal entry of shoes, which on top of the breach in labeling rules by some traders, is harming the sector.
Local shoemakers claim that non-compliance with the labeling standard on shoes sold in some stores results in sales made at very low prices, generating unfair competition, which, combined with smuggling, is having a negative effect on the sector.
Panamanian producers report that every week between 5 thousand and 7 thousand hundredweight of tomatoes enter the country illegally from Costa Rica, in addition to other agricultural products.
Producers in the province of Chiriquí claim that smuggling from the neighboring country is not limited to agricultural products, but also occurs with materials for production.
In 2014 a special unit was created to deal with complaints about the marketing of fake garments, and since then it has received an average of five complaints a month.
The market for fake clothing brands in the country has been growing, according to the authorities at the Economic, Tax and Customs Crimes Prosecutor's office, which claims to receive five complaints per month.
The aquaculture sector has estimated losses due to theft of the product, which is repackaged in clandestine facilities and then sold in the local market and in El Salvador, at $35 million a year.
Honduran aquaculture companies had hoped that waybills, or shipment details documents, which came into effect with the new 2014 Shrimp Farming Act would help control illegal trade of shrimp, but sofar it has not. The National Aquaculture Association of Honduras (Andah) estimates that every year the industry loses 16 million pounds of shrimp.
It has been estimated that the alcoholic beverage industry has lost out on earnings of $92 million in annual sales due to the entry of illegal and fake products.
While the sector failed to earn about $92 million, according to estimates Euromonitor reported by Prensalibre.com, the Guatemalan treasury has forgone about $25 million in uncollected taxes.
It is estimated that in 2015 illicit trade and customs fraud added up to $2.2 billion, equivalent to 3.5% of GDP.
Cereals, animals, meat and meat products, bakery products, sugar, macaroni and noodles, dairy, alcoholic beverages and textiles topped the list of products most affected by illegal trade, according to a study by ASIES.
The government is preparing a registration system that requires pork producers to mark their pigs in order to combat smuggling through the use of phytosanitary and traceability controls.
The aim is to have the agreement in late January, which would start with 88 producers enrolled in the Association of Pork Producers of Guatemala (APOGUA), in order to have an animal traceability system, prevent the illegal entry of pigs and prevent arrival of illnesses from Mexico.
Commercial activity grew in 2016 driven by subsectors such as automobiles, although brakes were still encountered such as growing informality, smuggling and bureaucracy in health and safety records.
At the end of the year, the commercial sector has maintained its relevance for the country 's economy and has become the main generator of employment, with 15% of the total labor force, according to the balance complied by the Chamber of Commerce of Costa Rica.
The devaluation of the Mexican peso has worsened the problem in the border areas, where it is estimated that 70% of all products sold are illegal.
The Association of Manufacturers of Food Products (Grefal), says the problem is more serious in the departments of Quetzaltenango, Retalhuleu, Coatepeque, San Marcos and Huehuetenango. Thereseven out of every ten of the products traded"... are contraband that comes in through the Mexican border."
Through at least 47 clandestine posts on the border between the two countries there is illegal circulation of tomatoes, yams, avocados, plantains and bananas.
Eduardo Carles, Minister of Agricultural Development in Panama, told Prensa.com that, in the case of bananas and plantains,"... producers sell them in Costa Rica when the price falls in the local market ....
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