Conflicts over environmental protection and excessive bureaucracy in the process of granting concessions are the factors that limit the great mining potential in the region.
The mining sector in Central America represents great potential for investment and business, however, it has so far contributed only 0.75% to the Gross Domestic Product (GDP), averaged from the six countries in the region, between 2008 and 2012. Costa Rica reported the lowest activity with 0.1% and Panama the highest with 1.7% of GDP.
The Mexican government is considering constructing a pipeline and eventually a refinery to supply the region.
Miguel Hakim, Mexican Secretary for Latin America and the Caribbean, said his country is considering building a refinery and natural gas pipeline which would cross the isthmus and would be an alternative option for generating power at low cost. Petroleos Mexicanos (Pemex), has $2 billion to invest.
On 22nd and 23rd of August entrepreneurs from 10 American countries related to activity of free zones will be meeting in Panama.
Representatives from Colombia, the Dominican Republic, Guatemala, Uruguay, the USA, Paraguay, Brazil, Ecuador, Argentina and Panama, will be taking part in the event organized by the Association of Users of the Colon Free Zone (AU).
In the past five years, consumption of imported alcoholic beverages has tripled, led by a preference for premium quality spirits.
From an article by the Costa Rica Foreign Trade Promotion Office (PROCOMER):
The consumption of imported spirits in Peru has tripled in the last five years, according to Matías Jullian, marketing manager of Pernod Ricard in this country. This increase is reflected especially in premium drinks, whose sales were up 30% during 2012. In that year about 19,000 boxes were sold, whereas five years ago in 2008 only 6,000 were sold.
An ECLAC study has revealed that companies in Guatemala and El Salvador pay the highest costs because of organized crime in Latin America.
According to data from the Global Competitiveness Index 2012-13, analyzed by the Economic Commission for Latin America and the Caribbean (ECLAC), in its report on safety in the logistics sector in the region, Guatemala has a score of 1.86, on a scale of 1 to 7, regarding the influence of crime and violence in operating costs of enterprises, where 1 is "very much" and 7 means "nothing".
From 23 to July 26 Latin American telecommunications executives will meet in Panama to discuss how to close the digital divide in the region.
From a press release by the Telecommunications Congress:
Ministers from governments and regulating authorities, CEO's of telecommunications companies, innovators and executives from the private sector, academic experts and representatives from international organizations will participate in a high level meeting related to the XXIII Latin American Summit of Heads of State and Government , which will analyze the challenges facing Latin America and the Caribbean in closing the digital divide by 2020.
For every million dollars that comes into Central America as Foreign Direct Investment, only 4.7 jobs are created on average.
In Nicaragua, for example, an average of six new jobs are created per million dollars in incoming FDI, this is the highest number among the countries in Central America. "The data reflects the recent report on FDI in Latin America and the Caribbean 2013, by the Economic Commission for Latin America and the Caribbean (ECLAC)," noted an article in Laprensa.com.ni.
The region received a combined total of $8.876 billion in FDI in 2012, representing an increase of 7% compared to 2011.
Panama remained the largest recipient of foreign investment, with $3.020 billion, followed by Costa Rica with $2.265 billion, Guatemala ($1.207 billion), Honduras ($1.059 billion), Nicaragua ($810 million) and finally El Salvador with $516 million.
Central American entrepreneurs will propose to Barack Obama the revival of a project conceived in 1996 by the Regional Energy Forum of Central America.
The aim of this initiative is to lower energy costs and increase production through this route.
In the past 20 years intraregional trade grew at a rate of 12% per year, indicating an opportunity to deepen integration by finally fully adopting the customs union.
However, experts believe that Central America still faces challenges, specifically in customs matters.
"Exports to Central America have grown over the past 20 years at a rate of 50% more than exports to the rest of the world." "...at an average of 12% annually, and our exports to the world have grown at an average of 8% annually. This underlines the importance of intraregional trade dynamics in this space of Central American integration," said Hugo Beteta, CEO of the subregional site of the Economic Commission for Latin America and the Caribbean (ECLAC) in Mexico.
Production and logistics inefficiencies arising from their small size means that small scale producers have profit margins that are 19% lower than those of large companies.
An article in Elfinancierocr.com, comments on the ECLAC study "Panorama of the integration of Latin America and the Caribbean 2011-2012",which states that "logistics is a key dimension that influences the competitiveness of enterprises and their inclusion in value chains. "
The Outlook for Agriculture and Rural Development in the Americas: A perspective on Latin America and the Caribbean 2011-2012.
ECLAC, FAO and IICA press release:
San Jose, Costa Rica, October 21 (ECLAC/FAO/IICA). Despite the current context of volatility and high food prices, in the long term, the agricultural sector in Latin America and the Caribbean (LAC) will be able to take advantage of the opportunities afforded by having available land - albeit concentrated in a few countries- a relative abundance of water, biodiversity and well-educated human resources.
The Outlook for Agriculture and Rural Development in the Americas: A perspective on Latin America and the Caribbean 2011-2012.
ECLAC, FAO and IICA press release:
San Jose, Costa Rica, October 21 (ECLAC/FAO/IICA). Despite the current context of volatility and high food prices, in the long term, the agricultural sector in Latin America and the Caribbean (LAC) will be able to take advantage of the opportunities afforded by having available land - albeit concentrated in a few countries- a relative abundance of water, biodiversity and well-educated human resources.
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