The signing of the trade agreement is scheduled for late February, a measure that bodes well for improving access to Korean high-tech products and increasing agro-exports from Central America.
A report by Moody's analyzes the impact expected in El Salvador and in the other countries of the region, from the entry into force of the free trade agreement with the Asian nation.
Flowers, white goods, ceramics, leather products and cocoa products are among the list of 207 Ecuadorian products that will enter El Salvador with tariff preferences.
The agreement creates tariff preferences for 207 subheadings, which represent 92% of exports to El Salvador. They will enter without paying any fees.This translates into thegrowth of 20% of Ecuador's exports.
Discussion forums, advertising and meetings with businesses are part of the efforts that the Business Council of the Pacific Alliance intends to do in Costa Rica.
Arguing that lack of information about the benefits of an eventual accession to the trade bloc is the main reason behind the opposition of some companies, members of the Business Council of the Pacific Alliance (CEAP) announced a plan to promote more, and in a better way, the consequences of joining the Alliance.
The partial scope agreement establishes that sales will not be made using quotas, but based on a list of goods approved by both countries.
The Nicaraguan business sector expects to capitalize on the marketing of products such asrum, cigars, motorcycles assembled in Nicaragua, timber and manufactured goods, and beans, among other things.
As reported at the end of 2015, from February 16 a reduction from 15% to 13.8% will be in effect on the import duty incurred on chicken rump.
The tax paid by importers for rump chicken went from 15% in 2015 to 13.8% in 2016, confirmed the Deputy Minister of Integration and Foreign Trade, Enrique Lacs to Siglo21.com.gt.
The free trade agreement with Switzerland, Norway, Liechtenstein and Iceland will grant free access to these countries for 77% of primary agricultural products and those processed in Guatemala.
The entry into force of the FTA now depends on the approval of Congress and subsequent ratification by the Executive.
Dca.gob.gt specifies that "... the EFTA grants free access to 77% of primary and processed agricultural products from Guatemala, 10% of goods will have tariff preferences and 13% are excluded ... Guatemala meanwhile granted free access to 43.8 percent of primary and processed agricultural products, an additional 29 percent were liberalized in periods of 5 to 10 years, 0.8 percent will enjoy tariff preferences and 0.2 percent on a tariff quota to Switzerland, excluding 26.1 percent of articles.... ".
While the government makes further assessments over joining the bloc, the agribusiness sectors is emphasizing the negative consequences of any renegotiation over tariffs.
Representatives from the agricultural sector argue that the country's entry into the Pacific Alliance will mean "... losing some of the conditions achieved in existing free trade agreements." Currently "...
Pork producers in Costa Rica are starting to look for new markets for their products, which will compete from 2020 with meat imported from the USA and Canada which is duty free.
Currently in Costa Rica 5000 metric tons of pork per year are imported and only 500 tons are exported, mainly to Central America. The United States and Canada are the main suppliers of pork products to Costa Rica.
The private sector and the governments of both countries have started talks to put into place the partial agreement which came into force in November 2014.
A Cuban delegation composed of 9 representatives from the government and entrepreneurs from the private sector will be visiting Managua with the aim of coordinating with the Nicaraguan government implementation of the agreement, which establishes the possibility of achieving up to 100% of tariff exemptions on some products.
The government is seeking US support in order to improve conditions in the negotiation of the Trans-Pacific Partnership to minimize the impact it will have on sectors such as textiles.
From a statement issued by the Ministry of Economy of El Salvador (MINEC):
The Minister of Economy, Tharsis Solomon Lopez began a series of meetings in Washington DC with Senators, Congressmen, trade officials from the US Government and private entities, in order to present the position of the Salvadoran government in the negotiations for the Trans-Pacific Partnership, known by its acronym TPP, in relation to the impact it could have on Salvadoran exports carried out under the Free Trade Agreement with the United States, known as CAFTA-DR.
Within the Economic Council of Government Luis Guillermo Solís' ministers are divided with some favoring openness to international trade, and others wanting to protect vulnerable sectors.
The Ministry of Foreign Trade, which is in favor of accession, argues that there are free trade agreements with member countries of the Alliance, meaning that they would only be strengthening commercial ties.
The main Panamanian products that will benefit from the agreement are dairy, beef and pork, smoked fish fillet with and some vegetables with seasonal preferential access.
From a statement issued by the National Assembly of Panama:
Ratification has been given by the National Assembly, of the trade agreement between Panama and Trinidad and Tobago, after its third reading, in order to expand and consolidate access of Panamanian agricultural and industrial products to the Caribbean.
Guatemalan businesses are complaining about the existence significant differences in import and export tariffs in each country and are demandig that they be leveled in order for them to compete on equal terms.
Companies argue that products from India coming into the country pay fees of 15%, and in some cases do not pay anything while to enter India, Guatemalan products incur tariffs of up to 70%, depending on the product.
While the textile sector accounts for over 90% of total exports to the USA under the FTA, lack of training and compliance with requirements is preventing other sectors from taking better advantage of the trade agreement.
Lack of training, compliance requirements and inability to make the necessary investment to produce on a large-scale are some of the challenges faced by the sectors who are failing to take advantage of the trade agreement with the United States faces.
Analysis of the impact of the Trans-Pacific Partnership on the region.
The competition which sectors such as textiles could face is one of the elements raising questions among employers in the region, compared to the real benefits that could be accrued if Central America participates in the Strategic Economic Trans Pacific Partnership (TPP).
The presence of direct competitors, such as countries like Vietnam, in the textile sector, and the possibility of losing dominance in the American market due to trade rules that TPP countries must meet, is unsettling the productive sectors in the region and forcing a reckoning of the pros and cons of a possible entry to the block to be undertaken.