Negotiations concluded with agreements made on Market Access, Rules of Origin, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Trade Protection, Cooperation and Dispute Resolution.
The Partial Scope Agreement (AAP by its initials in Spanish) is at the stage of starting the process of legal review and it is expected that in the coming weeks it will be ratified by the Legislative Assembly of El Salvador and the members of CARICOM in Trinidad and Tobago.
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.
Seven years after diplomatic ties broke, Costa Rica is Taiwan's main trading partner in the region, with $644 million traded in 2013.
It seems that maintaining healthy diplomatic and political relations between governments is not always necessary for trade between two nations to prosper. One example is the bilateral trade between Taiwan and Costa Rica, which despite the fact that it is the only country in Central America to have broken political links with the Asian island, remains its main trading partner in the region.
The partial agreement signed in 1986 will be renegotiated in order to increase the number of goods exchanged under the terms of the treaty.
The governments of El Salvador and Venezuela reported that the purpose of the review is to increase commercial relations between the two countries by improving the conditions of the partial agreement.
In addition to reviewing the agreement, the Salvadoran Foreign Minister Hugo Martinez said in an article on ElUniversal.com of Venezuela that "... the second negotiation, in "parallel form" encourages both states, according to Martinez, is to achieve an agreement on "energy cooperation" which is part of Venezuela's Petrocaribe initiative, which El Salvador joined on June 3. "
At the first meeting of the Council of the European Partnership Agreement - Central America raised the eventual accession of Croatia and topics related to denomination of origin.
From a press release issued by the Ministry of Economy and Commerce in El Salvador:
On June 27, in San Pedro Sula, Honduras, held the first meeting of the Association Council, the highest institutional body of the Association Agreement between Central America and the European Union, to oversee the fulfilment of the objectives of the Agreement and its application. This meeting was held between Ministers and senior officials, under the trade part of the Agreement.
The strong dynamic of the global trade agenda forces Central America to consolidate its integration in order to participate in the changes that are shaping the global commercial order.
Editorial
The relaunching of the global trade agenda that the President of the United States is promoting in his second term, should be a warning for Central American countries, which despite reaching trade agreements with both the U.S. with the European Union, have sat on their laurels and have failed to complete the tasks needed to make the best use of these agreements, especially with regard to common customs and tariff policies.
Central American countries need to implement a series of improvements in customs procedures in order to meet the requirements of the agreement for the facilitation of international trade.
Within two years, as part of the commitments made in the 2001 Doha Round of the Bali Agreement, signed in 2013 by 160 nations belonging to the World Trade Organization (WTO), including Central America, governments will have to harmonize their customs systems ensuring trade facilitation. However, to date institutional progress on issues established by the Agreement such as simplification, harmonization and automation of procedures for international trade have not happened, particularly in relation to the requirements and formalities for import, export and transit of border freight.
The Salvadoran sugar sector has exported the first 16,000 tonnes of a quota of 25,087 tonnes which corresponds to the country for 2014.
From a press release by the Ministry of Economy (MINEC):
El Salvador has exported 16 thousand tons of bulk sugar thanks to the Association Agreement between Central America and the European Union
The Ministry of Economy and the Sugar Association of El Salvador too part this May 13, in the dispatch in the Port of Acajutla, of the first ship carrying 16,000 metric tons of raw sugar as part of the El Salvador's quota for 2014 with the European Union. This delivery is part of the Association Agreement between Central America and the European Union (ADA), which came into force on 1 October for Costa Rica and El Salvador.
The Association of European Banana Producers has proposed extending the community production model until 2020 in order to face competition from Central America.
From a statement issued by the Costa Rican Foreign Trade Promotion Office:
European banana producers seek to strengthen position in light of Latin American exports
The Association of European Banana Producers (APEB) has advocated maintaining Community production , its acres and producer income until 2020, and notes that "they will take the necessary measures to counter the agreements of the European Union (EU) and Latin American countries that ignore the state of food security and the environment. "
Cooperation agreements are being negotiated in the Sectors of Tourism, Promotion and Reciprocal Protection of Investments and Partial Scope Economic Complementation.
An article in Nacion.com reports that "... This round is being performed following Negotiating Round II which was held in Puerto España, Trinidad and Tobago, from 20 to 24 January 2014, during which legal texts were finalized on Trade Protection, Technical Barriers to Trade and Sanitary and Phytosanitary Measures. In Round III the aim was to finalise a regulatory framework for the agreement relating to Market Access, Rules of Origin, Dispute Resolution and Corporate Affairs. In addition it included mutual exchange offers on tariffs and specific rules of origin. "
The Pacific Alliance has become the largest market in Latin America and an attractive investment for companies in third party countries who want to use it.
"In 2012, the Gross Domestic Product of the Pacific Partnership (AP by its initials in Spanish) grew by 5%, two points higher than that recorded by the global economy. FDI remained at an acceptable rhythm, with $71.045 billion, of which over $30 billion was destined for Chile.
The group of countries that Costa Rica, Panama and others in the region want to join, will next week sign in the immediate elimination of tariffs on 92% of trade goods.
The protocol on tax relief for 92% of goods traded between the countries of the Pacific Alliance will be signed next week at a summit to be held at Cartagena de Indias, confirmed the Colombian president, Juan Manuel Santos.
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).
In the second round of negotiations an agreement was signed on tourism and advances made in relation to investment protection.
In the second round of negotiations for a Partial Agreement (PA) between El Salvador and Trinidad & Tobago, which was held in Puerto España, both delegations reached an agreement on tourism and advances were made in relation to investments.
This week Authorities from both countries will begin a second round of negotiations for a partial scope trade agreement.
This week El Salvador and Trinidad & Tobago will hold a second round of negotiations for a Partial Scope Agreement. The main products exported by Salvadorans to this country are articles made of plastic, sugar, agricultural products, industrial products, clothing, iron, steel, plastic, paper and cardboard.