As a result of the blockade that has been in place since July 2020 on the entry of animal products from Costa Rica into the Panamanian market, Costa Rican exports to Panama are reported to have fallen and companies such as Dos Pinos are reporting losses in the millions.
The trade conflict began when Panama informed the National Animal Health Service (SENASA), an agency of Costa Rica's Ministry of Agriculture and Livestock (MAG), of the decision not to extend export authorization to a list of previously authorized Costa Rican establishments that have been trading in the Panamanian market for many years.
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.
During the first quarter of the year, the trade deficit was $1.352 million, 20% higher than the $1.129 million reported in the same period of 2018.
During the first quarter of 2019, as a result of general merchandise trade transactions abroad, a deficit of $1.352 million was obtained, $222.7 million higher than the accumulated in the same period of 2018, reflecting a 11.6% drop in exports ($147.2 million) and a 3.1% increase ($75.5 million) in imports, reported the Central Bank of Honduras (BCH).
Last year, the trade balance registered a deficit of $6.122 million, resulting in a 19% increase over the $5.149 million reported in 2017.
From the Central Bank of Honduras report:
At the end of 2018, FOB exportations of general merchandise accumulated a value of US$4,373.2 million, lower by 3.6% (US$162.6 million) regarding the shown in 2017, mainly because of the decrease in sales of coffee, palm oil, sugar, gold and shrimp; behavior fundamentally associated to the decrease experienced in international prices.
Between January and October of this year, sales abroad totaled $3.785 million, registering a decrease of almost 3% compared to the total accumulated in the same period of 2017.
The Central Bank of Honduras reported that in the first ten months of the year the value of exports totaled US$3,784.6 million, showing a 2.8% decrease (US$107.9 million) compared to October 2017, evolution basically related to the reduction in sales of coffee, palm oil, used gold accessories and shrimp, partly reduced by greater external shipments of paper and cardboard, zinc and plastic and their manufactures.
In the first quarter of 2016, the performance of the export sector was affected by falling prices in international markets and lower export volumes.
Foreign Trade report by Central Bank of Nicaragua:
The value of exports amounted to 554.0 billion, with a reduction in value of 17.5 percent compared to the same quarter in 2015. Meanwhile fob imports amounted to 1331.5 million dollars with a growth of 4.1 percent year on year.
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.
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.
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.
Central American exports destined for the EU in the first quarter of 2014 totaled $1,021,600,000, down 10.5% compared to the same period in 2013.
From a report entitled "Central America's Bilateral trade with the EU: Evaluation of the first quarter of 2014" by SIECA:
Part IV of the Association Agreement between Central America and the European Union (EU-CA) took effect for each of the Republics of the Central American side in 2013.
After completing the process that includes inspection of poultry farms, Honduras has received certification from the neighboring country in order to export eggs.
From a press release issued by the Ministry of Agriculture and Livestock in Honduras (SAG):
The range of exports of Honduran poultry products has been widened with the addition of eggs after Honduras was certified by El Salvador for the export of this important nutrient, which will strengthen business relationships and generate more income for the country.
More than 500 companies from 30 countries are taking part in the most important international trade show in the region.
From a press Release by Expocomer:
"With the collaboration of more than 500 companies from over 30 countries from North, South and Central America, the Caribbean, Europe and Asia, the Chamber of Commerce, Industries and Agriculture of Panama (CCIAP) today opened Expocomer 2014, the thirty-second version of the most important trade show in Panama and the region.
Governments are to certify a poultry plant in each country in order to formalize the process of exporting and importing, in an attempt to stabilize prices.
In order to solve the problem between merchants and egg producers in Nicaragua and Honduras, the respective governments have agreed to certify for importing and exporting one poultry plant in each country, with all the necessary requirements and in this way achieve price stability.
Forty-five companies from both countries are already part of the new chamber which will focus on promoting bilateral trade.
Víctor Hugo Morales, Mexico's ambassador in Tegucigalpa, announced the creation of the Honduran - Mexican Chamber of Commerce. A total of 45 companies from both countries are already part of the new union which was set up in Tegucigalpa and will focus on solving the problems facing Honduran exporters in getting their merchandise into Mexico.
Guatemala is not getting ready for the entry into force in January 2015 of a U.S. policy which establishes inspection systems for containers at the ports of departure.
Guatemala is running the risk of not being able to sell its products to the United States, seeing as authorities have not placed any importance on the implementation of the Initiative for Safe Containers (Container Security Initiative-CSI).