Unless intra-regional trade in chemical contents and residues, micronutrients and food preparations is regulated in a balanced manner, trade relations in Central America could face obstacles in the future.
Trade between Central American countries is essential, since a considerable proportion of foreign sales by local companies are destined for other markets in the region.
Foreign sales by Salvadoran companies slowed for the second consecutive year, as between 2017 and 2018 the year-on-year growth rate fell from 6% to 3%, and by 2019 a rise of just 0.7% was recorded.
Exports from El Salvador at the end of 2019 reached US$5,943.3 million with a year-on-year growth of 0.7% and 4.7% in terms of volume compared to 2018, informed the Central Reserve Bank.
From January to November 2019, the country's oil bill reached $1.379 billion, 10% less than the amount reported for the same period in 2018.
In terms of volume, imports of petroleum products increased by 76.8 million kilograms, representing a 3.2% increase, reported the Central Reserve Bank (BCR).
The BCR report states that "... The structure of the oil bill is composed mainly of gasoline (US$426.4 million), diesel (US$387.1 million), liquefied gases and propane (US$207.2 million) and fuel oil (Bunker C) with US$156.1 million. Greases and lubricating oils were imported for US$65.4 million.
In 2018, foreign sales totaled $5.904 million, 3% more than in 2017, a rise that was mainly explained by exports from the manufacturing sector.
The manufacturing industry, which includes maquila goods, reached exports of 5.727.4 million at the end of 2018, with a 97% share of total exports and a 2.8% growth. Of 141 economic branches that reported exports, 63 of them totaled $4.388.1 million and were those that had positive growth during 2018, contributing $337.2 million more, reported the Central Reserve Bank (BCR).
Petroleum products, iron and steel, food and pharmaceutical products, headed last year's purchases from companies in the South American nation from Central American countries.
Figures from the Central American-Ecuador Trade Information System complied by the Business Intelligence Unit at CentralAmericaData: [GRAPHIC caption = "Click to interact with the graph"]
Plastic articles, pharmaceutical products and food preparations last year led the commercial exchange between companies from the Caribbean nation and Central American countries.
Figures from the information system of Commerce between Central America and the Dominican Republic, compiled by the Trade Intelligence Area of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
Fuels, plastic goods and pharmaceutical products led last year's imports made by Central American companies in the South American nation.
Figures from the information system of Commerce between Central America and Colombia, from the Trade Intelligence Area of CentralAmericaData:[GRAFICA caption="Click to interact with graphic"]
During the first eight months of the year, foreign sales reached $4.054 billion, almost 4% more than the same period in 2017.
From the press release of the Central Reserve Bank:
The exported merchandise from El Salvador up to August 2018 reached US$4,053.8 million, US$139.9 million more than the same period in 2017, with an inter-annual growth rate of 3.6%, reported the Central Reserve Bank.
In 2016 the value of imported plastic and its manufactures in the region amounted to $3.668 million, equivalent to 1.7 million tons, 9% more than the volume purchased in 2015.
Figures from the information system on the Central American Market for Plastics and its Manufactures, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with the graph"]
The Commercial Office of Central America CATO has a website where Central American companies can promote their products to export to the Asian island.
With the aim of promoting Central American SMEs and boosting Taiwanese investment, the Commercial Office of Central America together with the Embassy of Honduras in Taiwan has inaugurated the website www.cato.com.tw , which allows entrepreneurs in the region to showcase their products in the Taiwanese market.
Colombian MD2 pineapple producers are negotiating with South Korea, Israel and the European Union in order to start exporting the product in 2015.
From a statement issued by the Costa Rican Foreign Trade Promotion Office (Procomer):
Bengala Agrícola S.A.S. is a Colombian agricultural producer and exporter based in Cali, Valle del Cauca; one of the main drivers of economic development in Colombia.
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.
The website for the "Business Intelligence System of the Association Agreement between Central America and the European Union" summarizes the regulatory framework, procedures, market information and other topics of interest to exporting SMEs.
The Ministry of Economy of El Salvador has put online a "Business Intelligence System of the Association Agreement between Central America and the European Union", a website which aims to present the content and the benefits of the Association Agreement in a format which is simple and accessible, so that Central American exporters and importers can receive this information and maximize opportunities.
The Foreign Ministry has announced that it has given approval for the establishment of the office, whose opening is scheduled for October.
Two years after El Salvador set up an embassy in Russia, the authorities in this country are preparing to open an office in San Salvador, for which they "... already have a person to lead it."
Foreign Minister Hugo Martinez told Elmundo.com.sv "...
In 2013 the export supply of the region in the international market was focused on integrated electronic circuits, coffee, bananas, sugarcane and medical devices.
From a report by the Secretariat of Central American Economic Integration (SIEC):
Diversification of exports is above the thresholds of the largest Latin American exporting economies.