In El Salvador, the integrated border posts El Poy, in Chalatenango, the first to have the necessary infrastructure to operate within the framework of the customs integration of the Northern Triangle, became operational.
After the adaptation of the border post, the infrastructure and computer systems of El Poy are practically ready to operate, however, the products that will have free circulation between the three countries and which goods will continue to be protected have yet to be defined.
Following the path chosen by its neighbors Panama and Costa Rica, the Salvadoran government has announced the opening of diplomatic relations with China and a rupture with Taiwan.
Reactions to the announcement by President Salvador Sánchez Cerén did not take long.The US government expressed its opposition, stating that the decision will bring negative consequences for El Salvador, while opposition politicians accused the government of wanting to ease the way for China to be granted the concession to operate the port of La Unión.
Salvadoran industrialists claim that with the presidential veto of the administrative simplification law, the country has lost a valuable opportunity to improve the already deteriorated business climate.
EDITORIAL
With the veto of the Administrative Simplification Act, the Salvadoran government is sending a clear message to the business community and to society in general: There is no interest in paving the way for the private sector to generate more jobs and, consequently, more wealth and socioeconomic development.
The government is complaining that the decision by the Legislative Assembly not to approve the IDB loan for $114 million, will mean that it will not be possible to develop the tourism and road projects that were planned.
From a statement issued by the Presidency of El Salvador:
Country loses $115 millionIDB credit because of ARENA, seriously impacting tourism and connectivity
The Salvadoran business sector is opposed to the decision of President Sánchez Cerén to veto reforms to the customs simplification law, which established concrete measures to streamline foreign trade procedures.
From a statement issued by the Inter-Trade Commission for Trade Facilitation (CIFACIL):
The Trade Facilitation Commission (CIFACIL), which groups together seven production unions from El Salvador, deplores the decision of the President of the Republic, Salvador Sánchez Cerén, to veto the reforms to the Customs Simplification Law, which were aimed at advancing the adoption of concrete measures to facilitate trade and which will help overcome the stagnation of foreign trade by our country.
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.
The government has granted permits for access to drinking water which were needed by 147 construction projects valued at $1.2 billion, which are expected to be developed over the next three years.
The drinking water feasibility studies which have been finally delivered make up some of the paperwork which has held up for several months, leading to complaints from entrepreneurs who put pressure on the government to expedite these formalities.
The government and the opposition have agreed to approve in the first instance an issue of $550 million, not $1.2 billion as claimed by the administration of Sanchez Ceren.
Although the government insists that there is a need is to issue $1.2 billion to cover short - term debts and solve the liquidity problem it is facing, this first agreement to issue $550 million will serve to"... pay for the electricity subsidy for FODES and the mayoral districts."
The Sanchez Ceren administration is negotiating a contract with the Bolivian government for the purchase and sale of Liquefied Petroleum Gas in the medium term.
As part of the negotiations between governments the possibility is being considered of Yacimientos Petrolíferos de Bolivia (YPFB) "... participating in the marketing and distribution chain, in partnership with El Salvador's state owned company, said the Bolivian minister of Hydrocarbons and Energy, Luis Alberto Sanchez.
A state of emergency has been declared and pressure has been put on the Assembly to approve borrowing in the order of $1.2 billion to honor short-term debts.
President Sanchez Ceren announced as a first step a declaratory emergency, so that before the close of 2016 they can 'attend to, discuss and build the best agreements that will provide the relevant results' on issues such as approval of bonds for $1.2 billion.With that amount the government hopes to deal with the illiquidity and respond to the state's short - term commitments.
The government is assessing reducing from 8-7 the maximum number of years of age of vehicles which can be imported.
The aim of the Sanchez Ceren administration is to reduce the size of the vehicle fleet which is registered today in El Salvador.Figures from the Business Intelligence Unit at CentralAmericaData com at the end of 2015 show that 936.700 vehicles were registered in circulation.
"We, at this moment in time, do not believe that these recommendations should be promoted because we are carrying out a series of readjustments that we believe are more relevant".
The Sanchez Ceren administration has ruled out addressing the recommendations made by a mission from the International Monetary Fund to correct the wrong direction of the Salvadoran economy.
In El Salvador, the decision taken by the Sanchez Ceren administration not to attend the main business event in the country reveals either disinclination, inability to govern, or simple political manichaeism.
EDITORIAL
Maybe it is a persistence of visualizing the world as it was in the last century, dividing it into two antagonistic parties, capital on the one hand and labour on the other.
The ENADE 2015 survey reveals that 90% of Salvadoran entrepreneurs believe that the country has regressed in its competitiveness compared to other countries in the region.
In the view of the private sector, among the factors that have caused a loss of competitiveness for El Salvador are the high levels of crime, political and economic instability, constant changes to laws, lack of competitive infrastructure, and increased taxes.
With the IDB loan approved by the Assembly, improvements will be made in docks and piers, jetties and construction of bike paths in tourist areas along the coastal strip.
From a statement issued by the Legislative Assembly of El Salvador:
The National Assembly passed with 56 votes, a contract signed between the Salvadoran government and the Inter-American Development Bank (IDB), in the amount of $25 million, which will go towards the fund for the "Tourism Development Program of the Coastal - Marina Strip".
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