International buyers of food products, manufacturing and many other services will meet with Salvadoran businesses on May 13th.
This event, attended by 37 importers from 12 countries including Peru, Mexico and the United States and more than 100 Salvadoran exporters, is being run by the Investment and Export Promotion Agency of El Salvador (PROESA) with the aim of connecting local businesses with new customers on an international scale.
It has been pointed out that in order to reverse the very low influx of foreign investment there is a need to upgrade the system of tax incentives focussing on the "draw back" which was eliminated.
The proposal aims to make the tax advantages offered by the country be focused on specific types of investment adjusted to specific needs and production policies.
The auction of 40 MHz of mobile spectrum has launched a discussion on whether to add new operators to the market in order to avoid dominant players.
According to Giovanni Berti, CEO of Proesa, companies have already begun to enter the contest. "The information I have is that in addition to the phone companies that are already established in the country, to date an international company whose name I'm not allowed to reveal yet has expressed interest," he said.
The objective is to promote, expand and diversify economic, trade, investment and tourism links between the two nations.
From a press release by the Ministry of Foreign Affairs in El Salvador:
The Foreign Minister, Jaime Miranda Flamenco, officially opened on October 31 a Commercial Office in El Salvador Sao Paulo, Brazil, in order to promote, expand and diversify economic, trade, investment and tourism links between this nation and the South American country.
There are companies interested in investing in this industry but they need clear rules before making the decision to go to El Salvador.
"Here, what the government needs to do is move with agility in order to outpace other countries who are going the same route, they have to be more aggressive in putting together a proposal for all the players involved, which is what Mexico did and it is still attracting investments," said Ernesto Ruiz, CEO of Aeroman.
In 2012 $1.3 billion was registered in sales of services in the country, mainly from maquilas and call centers.
According to the executive director of the Agency for the Promotion of Exports and Investments of El Salvador (Proesa), Giovanni Berti, despite the contribution to trade this is a sector that is not given much attention. Services, inside of the export category, are a very dynamic item, said Berti.
Targeting the markets of Guatemala, Honduras and Nicaragua, the Export Promotion Agency of El Salvador has relaunched the program in support of SMEs.
From a press release published by the Agency for the Promotion of Exports and Investments of El Salvador (PROESA):
Under the Export Promotion Strategy, the Government of El Salvador launched on Tuesday April 16 the third edition of the Step by Step Export Program, a coordinated effort between the Agency for Promotion of Exports and Investments of El Salvador (PROESA) and the Ministry of Economy (MINEC), which has the support of the Technical Secretariat of the Presidency (STP), the U.S. Agency for International Development (USAID), through USAID's development program for SMEs, and the Special Fund of Resources from the Proceeds of the Privatization of ANTEL (FANTEL). It is expected that one hundred Salvadoran firms will initially be assisted as exporters and that there will be negotiations totalling over $5 million.
There are already five investment projects seeking to take advantage of the benefits of a Fomilenio II project which has yet to materialize.
"Up to 31 December 2012, the Agency for Investment Promotion and Export of El Salvador (Proesa) has received five formal requests for projects seeking to be financed by the nonrefundable fund 'Investment Commitment ES', said the executive director of the institution, Giovanni Berti. "
In El Salvador some companies will be left out of the new system introduced by the proposed reforms to the law on Free Zones.
If the draft amendment to the FTZ Act is approved, about ten companies, both national and foreign, would fall outside the new regime, said the director of the Agency for the Promotion of Exports and Investments in El Salvador (Proesa), Giovanni Berti.
Disinterest and a change of plans by organizers has forced Salvadoran authorities to cancel their participation in two events.
The Investment Promotion Agency (Proesa) of El Salvador had to cancel participation in two fairs planned for April.
Those are, OutSource2LAC, scheduled for 12th and 13th of this month, the date was changed by the organizers themselves, said Giovanni Berti, director of the agency.
Salvadoran companies attending the trade show in Panama, closed deals for $670,000, and conducted more than 90 business meetings.
Giovanni Berti, Executive Director of the Agency for Promotion of Exports and Investments of El Salvador (Proesa), said that Panama, together with the countries of the Caribbean, "will become one of El Salvador’s main partners in the medium term.
For the first quarter of the year, public and private sectors expect to finalize negotiations for a Free Trade Agreement with Peru.
The most difficult part of negotiations has been related to industry, specifically the textile sector, which has shown the most resistance to the signing of the treaty.
Giovanni Berti, export director of the Agency for Promotion of Exports and Investments of El Salvador (PROESA) told Laprensagrafica.com that, "negotiations between the two countries are already advanced to about 95%.
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