Both countries agreed to include threads, fabrics and clothing in the batch of items that are already subject to tax relief, as part of the Free Trade Agreement in force.
The Ministry of Economy of Guatemala informed that the trade between both countries will experience a significant increase because of the recent signature of several agreements that expand the productive value chains.
Shrimp, mangoes, confectionery, non-alcoholic beverages and electric accumulators are some of the products that will have tariff benefits with the signing of the Partial Scope Agreement between both countries.
From the press release of the Ministry of Economy of Guatemala:
October 31st, 2018. To accelerate the reduction of mutual tariff preferences granted to a list of 61 products traded in the Guatemalan and Cuban markets, according to the Partial Scope Agreement (PSA) in force since 2001, this Wednesday, trade authorities of both countries signed in Havana, the so-called "Second Protocol to Modify the Deepening of the PSA between Guatemala and Cuba."
A second round of negotiations to extend the partial scope agreement has concluded, with the approval of new rules on origin for trade between both countries.
The Ministry of Economy of El Salvador reported that one of the greatest achievements of this meeting was the completion of the negotiation on the market access table, with El Salvador reaching around 120 tariff codes that will be subject to improvements in tariff preferences.
Dairy products and some metalworking products, plastics, tires and wood were excluded from the trade agreement between Central America and China.
Bananas will not incur tariffs when entering South Korea for five years, pineapples for a period of seven years and pork for ten years.In addition to the terms of tariff reduction, the countries in the region unilaterally negotiated the exclusion of some goods produced locally.Guatemala announced that it will continue negotiations unilaterally.
Not fearing free trade, lowering tariffs and facilitating business development are some of the ingredients the Chilean export model that Central America could follow.
In an interview with Elfinancierocr.com, ProChile's director, Roberto Paiva, explained that one of the main reasons behind the success of his country's foreign trade model is the high degree of trade liberalization.Not only for having reduced tariffs, but also for"... 'having negotiated trade agreements. We have agreements with Europe and much of Asia. We don't yet have Africa.This opening not only lowers tariffs but brings us closer to the market and the business'. "
Asparagus, mandarin oranges, artichokes, grapes, pineapples, mangoes, avocado, quinoa, coffee, Giant Cusco corn, purple corn and limes, will enter Honduras duty-free with immediate effect or within a maximum period of 5 years.
The governments now have to define the date of entry into force of the agreement.In 2015 the South American country exported goods to Honduras worth $40 million.
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.
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.
Tyre manufacturer Bridgestone has withdrawn from the free zone regime in order to export, with better benefits, under trade agreements with the countries of the Pacific Alliance.
The firm has dissolved Bridgestone de Centroamérica S.A, a company registered in the free zone regime, in order to centralize operations in the local company Bridgestone de Costa Rica, so that it can export under the conditions of the trade agreements.
The center-left candidate, Luis Guillermo Solís, would review the conditions to join the block if he wins on April 6th.
The presidential candidate of the Partido Acción Ciudadana, Luis Guillermo Solís, agrees with the industrial sector on the process of tariff reduction that Costa Rica would have to make in order to join the Pacific Alliance involves risks that should be considered carefully.
The Chamber of Industry perceives an "unusual secrecy" in progress toward an agreement that may seriously compromise the competitiveness of the sector.
The Chamber of Industries of Costa Rica (ICRC) has asked the Government to explain the scope of commitments made with the signing of the adherence to the Pacific Alliance.
From a press release issued by the Chamber of Industries of Costa Rica:
Colombia, Peru, Chile and Mexico approved the inclusion of Costa Rica to the Partnership Framework Agreement, the first step towards total integration into the block.
From a press release issued by the Presidency of Costa Rica:
Under the VIII Summit of Heads of State of the Pacific Alliance, the President of the Republic, Laura Chinchilla Miranda, along with her counterparts in Colombia, Juan Manuel Santos Calderón, Chile, Sebastián Piñera Echenique, Mexico, Enrique Peña Nieto and Peru, Ollanta Humala Tasso signed a Declaration on the Accession of Costa Rica to the Pacific Alliance.
The Salvadoran President has asked the SIECA to intervene in a trade dispute with Costa Rica.
President Mauricio Funes, believes that a regional agency should resolve the trade dispute with Costa Rica, which has requested the creation of an international arbitration group. The problem, Funes said, should be resolved by the Secretariat for Central American Economic Integration (SIECA).
A dispute over the failure to implement tariff benefits on the part of El Salvador on tires and juices exported by Costa Rica has not been resolved using other methods.
The Costa Rican Minister of Foreign Trade, Anabel Gonzalez confirmed that on January 20th El Salvador will be taken to court for not applying the tariff benefits negotiated in the FTA between the U.S., Central America and the Dominican Republic on tires and juices.
Exporters of dehydrated ethanol claim that the U.S. is applying an ad valorem tax of 2.5% which is outside of the provisions of DR-CAFTA.
According to Anabel González, the Minister of Foreign Trade (Comex), Costa Rica has not exported the product during the second half of 2013, because the annual quota for receiving the benefits is 31 million gallons.