Central American exporters are being recommended to keep using alternate routes during the union conflict which is causing ports to operate erratically.
From a statement issued by the Guatemalan Exporters Association (AGEXPOT):
The 29 main ports for goods moving from the West Coast of the United States, including Los Angeles and Long Beach, the main US ports, have been operating erratically since August 2014 due to a conflict which has been going on for months between the International Longshoremen and Warehouse Union from the West Coast (ILWU) and the Pacific Maritime Association (PMA).
The Under Secretary of Commerce in the United States sees no need for renewal of preferential tariff arrangements, which up to now have favored Nicaragua's textile industry.
Statements by the senior official of the Obama administration fell like a bucket of cold water over textile entrepreneurs, who claim that without the renewal of TPL, production costs will increase by up to 40%.
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.
The U.S.'s approval of a new farm bill may increase the competitiveness of the agricultural production in the Central American market.
The U.S. Congress has passed a farm bill that authorizes $956 billion over five years, including subsidies to domestic producers, eliminating direct farm subsidies.
"... The decision to end the system, established eighteen years ago, to make direct payments to farmers in cash , cost over $4.5 billion a year." It is estimated that "about $16 billion will be saved in government spending over the next decade ... ".
Some of the main businesses from El Salvador will be advocating for the realization of Fomilenio II and for a deepening of the Association for Growth pact signed between the two countries two years ago.
From a press release by the Presidency of El Salvador:
A delegation from the National Council for Growth will make an official visit to Washington DC from 24 to 26 June, where meetings will be held with senior government officials and the Congress of the United States, under the framework of the first 18 months of the Partnership for Growth.
The delivery of a 100 year concession award for an Inter-oceanic Canal to a company without the capital or experience to carry out a project of this magnitude could be the result of a brilliant long-term operation by the Chinese government.
Editorial
By Jorge Cobas
As a commercial project, the Inter-Oceanic Canal in Nicaragua is economically unfeasible, in particular because the uncertainty over the return on investment to be made is so large.
While Obama's visit was mainly symbolic and dealt with long-term issues, the visit by Xi Jinping focussed on specific projects such as the $400 million for the route to Limon.
"In the evaluation of the visit by the Chinese President Xi Jinping to Costa Rica, the cooperation provided by the Asian president and the possibility of strengthening trade and diplomatic relations, there were many positive aspects.
The laws in Costa Rica are an obstacle to attract more Foreign Direct Investment and cooperation on clean energy.
Despite this, the government of Laura Chinchilla has asked U.S. President Barack Obama for more cooperation in developing clean sources of energy production.
"Contrary to the intentions of Chinchilla, a juggling game is being played between private hydroelectric cogeneration, bad political environment facing the plan for the "electricity contingency Act ", the oil moratorium decreed by the government, and even the CAFTA, which left out the opening of the local hydrocarbons market, which affects the import of natural gas," noted an article in Elfinacierocr.com.
"Energy costs in this region are three times the cost of electricity in Washington, that is a huge disadvantage not only for businesses but for families", said Barack Obama.
According to the U.S. president Central America should make it a priority to create a regional energy market, which would lower the cost of energy, improving competitiveness.
According to the president, there is an urgent need to develop "economies of scale and mechanisms to work on the issue of costs," and that includes not only the physical infrastructure but the regulatory frameworks necessary for the existence of a regional market.
The region is aiming to group together demand for natural gas in order to make the market more attractive to major companies.
According to René Castro, Minister of Environment and Energy (Minae), the visit of U.S. President Barack Obama, could open the door to greater cooperation from the Government in this area.
Castro said that Costa Rica is looking for the northern giant, which is one step ahead in its research on improving extraction and exploitation of natural gas, to grant it the status of "most favored nation" which would improve product prices for importations.
Since the entry into force in 2006 of the DR-CAFTA, the tip in favor of the U.S. in the trade balance has multiplied by 5.
"The Central America to which President Barack Obama is coming to visit on on Friday is a region that maintains multiple communication vessels with the United States, including a growing trade relationship which in 2012 amounted to $40 billion, although very much in favor of the American power," reported Prensa.com.
In his meeting with the Central American presidents, President Obama could raise the matter of potential investments in the region by specialist U.S. companies in the sector.
In Central America, most of the investments in electricity generation with plants based on renewable resources, so far have been from Europe.
The information was confirmed by Washington's ambassador in San Jose, Anne Andrew.
In preparation for his visit to the region, the U.S. president is meeting with business leaders who have a "significant presence" in Mexico and Central America.
According to the White House, the goal is to talk with employers, before his trip to the region next week, about "opportunities to expand U.S. trade with Mexico and Central America", with the goal of creating jobs and "reducing barriers to growth" in the region.
By signing the TPC the American president has given the green light to an agreement that has taken almost five years to be ratified by Congress.
Along with the treaty with Panama the president also signed agreements with Colombia and South Korea.
According to an article Prensa.com: "Initially, the president had planned to make public statements during a reception at the White House in the Rose Garden which adjoins the presidential office and to which businessmen, trade unionists and workers, whom the government deemed "beneficiaries" of the TPC were invited."
The U.S. President has sent the Free Trade Agreement negotiated in 2003 with Panama to Congress for ratification.
Along with the FTA with Panama Congress will also receive ratification requests for FTAs with Colombia and Korea.
Mario Jaramillo, Ambassador of Panama in Washington, inidcated that they have the necessary votes for approval in Congress and a vote is expected "very promptly."
español
5245
