Unless intra-regional trade in chemical contents and residues, micronutrients and food preparations is regulated in a balanced manner, trade relations in Central America could face obstacles in the future.
Trade between Central American countries is essential, since a considerable proportion of foreign sales by local companies are destined for other markets in the region.
Due to the tropical storms Eta and Iota, severe damage has been reported to the road network in Central American countries, and some border posts in Guatemala, Honduras and El Salvador have been suspended.
Since November 17, operations were suspended at the El Corinto, El Florido and Aguas Calientes border posts. These areas, shared by Guatemala and Honduras, are not operational, according to the Guatemalan Superintendence of Tax Administration (SAT).
Given the conflict resulting from the restrictions on the time that cargo transport units can remain in the countries of the region due to the health crisis, the deadlines for carrying out the procedures were modified.
Until May 20, the validity of the regional contingency plan was extended to customs, which was activated because of the difficulties generated by the use of the Central American Single Declaration.
Since May 7, when the Single Central American Declaration (DUCA) was implemented at the regional level, the situation in customs has been complicated, because of multiple difficulties reported in the import and export processes arising from the implementation of the new system.
In 2018, trade between the two countries totaled $968 million, 6% more than in 2017.
Figures from the Secretariat of Central American Economic Integration (Sieca), specify that last year 82% of trade between the two countries was for sales from Guatemala to Honduras, and the remaining 18% from Honduras to Guatemala.
A new information platform aims to identify the main disadvantages faced by companies that transport goods through the region in customs and paperwork management.
The Central American Economic Integration Secretariat (Sieca) presented the Trade Incidences Platform, which will compile information on the disadvantages that companies have in the areas of customs, transport, sanitary procedures, phytosanitary, import or export.
Customs Union between Guatemala and Honduras passes implementation phase after submission of the Enabling Protocol to SICA.
From a statement issued by the Secretariat of Central American Economic Integration:
Central, 4 May 2016. The Republics of Guatemala and Honduras, accompanied by the Secretariat of Central American Economic Integration (SIECA), officially delivered the Enabling Protocol for the Deep Integration Process into the free transit of goods and individuals between the two countries, for its submission to the General Secretariat of the Central American Integration System (SICA).
The Central American Bank for Economic Integration has announced that this month it will deliver 55% of the funds required to implement the customs union between the two countries.
The funds pending for the implementation of the Customs Union between Guatemala and Honduras are being managed by the Central American Bank for Economic Integration (BCIE) for a total of $1.5 million for delivery in February.
There is still no legal framework to manage the international cooperation funds that would finance the implementation of the customs union between the two countries.
Even though the Central American Economic Integration Secretariat (SIEC) announced "progress" in the process of the Customs Union between Guatemala and Honduras, Elperiodico.com.gt denounced the obstacles preventing it, "...
The average time for the region is 28 days and the average cost is 48% of GDP per capita, a far cry from OECD average time and costs which are 9 days and 3.4% of GDP per capita.
Using data from the Regional Economic Report 2015, an article on Prensa.com outlines that "... Of all the countries in Central America Panama is the place where starting a business requires the least paperwork, time and cost.
In order to reverse poor performance in 2014 companies in the sector are trying to increase their sales in the Central American market, the main destination for exports.
For two years there has been a downward trend in exports in the food sector. In 2013 it reported $1.449 billion, while 2014 $1.441 billion was reported. In order to achieve increased sales mainly in Central America, the food industry's strategy is to develop products with higher added value.
Spain has confirmed a contribution of $52 million for the construction of the airport, but there is still $83 million left which the Honduran government is looking to raise through a public-private partnership.
From a statement issued by the Government of Honduras:
The Government of Spain, through a delegation accompanying President Mariano Rajoy at the Summit of the Central American Integration System (SICA), held in Guatemala, confirmed with Ministers of Finance, Infrastructure, and Public Utilities support for Honduras for the construction of Palmerola Airport.
An adequate legal framework is needed for the healthy and steady development of institutions engaged in microfinance.
The Association for Research and Social Studies (ASIES) has published a study on the essential institutional strengthening of microfinance in Guatemala, with its own data and references it reports from the Secretariat for Economic Integration (SIECA) on "The Importance of the Micro Financial Sector in Central America ".
The Central American Economic Integration Secretariat presents the report "Trade handicrafts in Central America: Review of market opportunities".
In this report an a first attempt has been made to characterize the participation of industries related to handicrafts at both the Central American intraregional market as well as with third party partners. Despite the limited development of business internationally, the industry linked to handicrafts in Central America has managed to expand its export capacity in recent years.
A Draft law will adapt the rules for administrative procedures and customs penalties in the light of the country's integration into SIECA.
After joining the Economic Integration Subsystem (SIECA), Panama must adjust and update its customs procedures to respond more effectively to the demands of the block and international trade.
The director of the National Customs Authority (ANA), Jose Gomez, told Panamaamerica.com.pa that "...
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