After the reopening phases that were supposed to be applied in El Salvador were declared unconstitutional and the restrictions to economic activities were removed, businessmen receive the news with optimism, but fear that some businesses have closed down because of the crisis.
Since March, when the first cases of covid-19 began to be registered in the country, the administration headed by Nayib Bukele decided to subject the country to a strict home quarantine.
After two years of non-operation, El Salvador's government and business associations agreed to reactivate the institution dedicated to decision-making on customs matters and trade agreements.
The private sector was represented by the Presidents and Executive Directors of the guilds ASI, COEXPORT, CAMARASAL, CAMAGRO, AMCHAM, CAMTEX and ADES, which are part of the Inter-union Commission for Trade Facilitation (CIFACIL) and participate with voice and vote within the Committee, informed the Salvadoran government.
In El Salvador every week at least two companies report that they intend to close down due to the impact of extortion, a problem that, far from being resolved, seems to be getting worse every year.
Representatives from the Chamber of Commerce and Industry of El Salvador (Camarasal), said that the country's employers do not see any significant improvement in the security climate, following the six month extension last April of the extraordinary measures of the Sánchez Cerén administration to try to control crime and insecurity.
More expensive external credit, deterioration of the country's image, and higher local interest rates are just some of the consequences that could result from the non-payment of $55 million to pension funds.
The decision taken by the Sánchez Cerén administration not to pay interest to pension funds on the grounds of lack of support from the opposition political party has caused not only a down grading of the debt rating by agencies such as Fitch Ratings and Standard & Poor's, but has also led the business sector to raise its voice about the seriousness of the situation and to warn about possible consequences on economic activity.
Businessmen have stated their categorical opposition to statements made by a government official that confuse extortion with the funding of organized crime.
The statements by the Technical Secretary of the Presidency of El Salvador, Roberto Lorenzana, against companies in the country that suffer from extortion caused a strong reaction from the private sector, four days after Industrias La Constancia publicly announced that it was suspending operation of its plants because of increasing insecurity and violence.
Businessmen are complain that the setting of a minimum wage should be discussed between companies and unions in order to avoid its use for populist political purposes.
An article on Elsalvador.com reports that "... A proposal has been made to raise the minimum wage, ignoring the discussion in the commission between companies and unions, it is a populist measure, said representatives of the Chamber of Commerce and Industry of El Salvador (CCIES) yesterday. The union recalled that a process should be followed to analyze the remuneration rates and their impact on the economy. "
As of November a rate of $18 per non-intrusive inspection will apply to each package passing through customs, even though the scan is performed once per container.
An article on Elsalvador.com reports that "... The Chamber of Commerce and Industry of El Salvador (Camarasal) yesterday voiced its opposition to the new form of payment that the Treasury intends to implement, starting in November, on cargo coming through customs and which is reviewed using scanners. "
On March 18 in San Salvador an event will be held with the theme of opportunities for defense against fines and customs taxes.
From a statement issued by the Chamber of Commerce and Industry of El Salvador (Camarasal):
Learning about appeal instruments, consultation and complaints, and the basic principles for documentation, plus a guide for direct users of customs services in Central America.
Lack of regulation and legal certainty for energy projects creates doubt and uncertainty among potential investors in the sector.
Although this year "... They have committed an average of $250 million in renewable energy projects, "members of El Salvador's energy sector state that they lack incentives and standards to foster a safe environment for investment.
On November 6 companies in the sector will meet in San Salvador to discuss the regulatory framework of the electricity market and the integration of renewable energy in the country.
From a statement issued by the Chamber of Commerce and Industry of El Salvador (Camarasal):
The Chamber of Commerce and Industry of El Salvador will bring together a large group of industrialists in the Second National Forum on electricity, entitled "Energy for All" with the aim of analyzing the regulatory framework of the electricity market and making suggestions for improvements to help economic development and businesses in the country.
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.
They are demanding from the government more transparency in the management of fuel purchases and more information on how the market will be organized with the participation of the Venezuelan entity.
The Chamber of Commerce and Industry of El Salvador has expressed concern about the interference that Petrocaribe and the Venezuelan government could have on El Salvador and has asked the government for greater transparency about how fuel imports will be handled once the agreement enters into force.
The private sector demands limits on the government's ability to borrow, through means of a Fiscal Responsibility Law.
From a press release issued by the Chamber of Commerce and Industry of El Salvador (Camarasal):
The Camarasal has expressed dissatisfaction with the fact that the Legislature has authorized the government to issue a new bond debt for $1.156 million, without having first limited the state's debt capacity through the adoption of a Fiscal Responsibility Law.
There is still no official information about whether brand name distributors will be able to keep importing fuel from their source of choice.
The request for entry into the oil agreement with Venezuela marks the economic and political differences between the outgoing government of Mauricio Funes and that of the new President Sanchez Ceren, indicating a higher affinity for the conglomerate led by Venezuela.
The embassies of El Salvador are to showcase export products from their country and cooperate with private trade missions.
From a press release by the Ministry of Foreign Affairs in El Salvador:
The Foreign Minister, Jaime Miranda, and the president of the Chamber of Commerce and Industry of El Salvador, Luis Cardinal, signed on Monday September 30 an interagency cooperation agreement in the field of trade promotion of El Salvador internationally, which will allow the development of joint activities through diplomatic and consular representation of the country throughout the world.