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 ... ".
A short-term plan is being prepared to improve the investment climate and lift objections from U.S. Congress to fund the delivery of the Millennium Challenge Corporation
The information was confirmed by the U.S. ambassador to El Salvador, Mari Carmen Aponte. Both governments are working on concrete actions in the short term to allow for these improvements.
Demands have been made for the U.S. Department of Labor to form an arbitration panel against the country over the lack of progress in labor matters.
From a press release by the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO):
The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), the largest trade union center in the U.S., in conjunction with the largest unions of Guatemala as a gesture of appreciation over the lack of labor rights protection under the Central American Free Trade Agreement (CAFTA, for its acronym in English), today sent a letter to the U.S. Labor Department, the U.S. Trade Representative , and the ministers of labor and economy in Guatemala, in which they called for an arbitration panel to be reinstated. The "Implementation Plan" was signed by the two governments on April 26, 2013.
Guatemala is not getting ready for the entry into force in January 2015 of a U.S. policy which establishes inspection systems for containers at the ports of departure.
Guatemala is running the risk of not being able to sell its products to the United States, seeing as authorities have not placed any importance on the implementation of the Initiative for Safe Containers (Container Security Initiative-CSI).
The measures taken by the U.S. Treasury to pursue American tax evaders affect about 150,000 bank customers in the country.
In late April 2014, financial institutions must adhere to U.S. Treasury Department because in June the names of entities who have signed up to the requirements of FATCA will be published, and inclusion in that list will be a requirement for external funding sourced by that country.
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.