Following the visit of US Vice President Kamala Harris to Guatemala, the business sector assures that in order to reduce illegal migration from Central America to the US, it is necessary to create a favorable and comfortable environment for local and foreign investment in the countries of the region.
As part of Harris' visit to Guatemala, Agexport prepared a document with proposals that reflect the experience it has accumulated over many years, incorporating Guatemalans and small rural businesses into export chains, generating income that allows them to remain in their territories.
Strengthening trade between the US and the region, fighting corruption in the Northern Triangle and reducing illegal migration flows, are some of the axes on which Joe Biden, the US president who has been sworn in, is expected to focus.
Biden, representative of the Democratic Party and winner of the last US elections, whose results were close, arrives at the White House to replace Donald Trump.
Guatemalan exporters report that President Trump's warning about export tariffs and taxes on remittances and transfers is raising doubts among U.S. buyers.
Uncertainty prevails among most Guatemalan businessmen after President Trump reacted to the provisional protection established by the Guatemalan Constitutional Court, which limits the functions of the Executive Branch to negotiate or sign any foreign policy agreement.
In the NAFTA review carried out by the Central American and U.S. authorities, it is ruled out that the U.S. government will apply trade sanctions in retaliation for the deepening of the migration problem.
After the Trump administration pressured Mexico with the threat of increased tariffs on Mexican imports, the region has generated expectations for the planned review of the NAFTA with Central America.
The IMF has indicated political polarization, high crime and outward migration, rising unit labor costs and high logistics costs, barriers to entry and expansion of business, fiscal uncertainty, and limited human capital.
From a statement issued by the IMF:
The IMF staff team visited San Salvador during April 25—May 6 for the 2016 Article IV consultation and held fruitful discussions with the Salvadoran authorities, parliamentarians, business community, academics, and social partners.
The emigration of six out of seven Salvadorans who have studied for 12 years or more is removing a vital resource for economic performance, preventing improvements to labor productivity in the country.
Up until 2000, 85% of high school and college graduates with twelve or more years of education had migrated, reveals the study 'Measuring the international mobility of skilled workers'.
"If a person with 20 years of education emigrates and another person, with 12 years of education immigrates, the country has suffered a net loss of 8 years of investment in training."
The retention of human capital and recruitment of highly qualified human resources from other countries is of vital importance to nations.
Human resource mobility is increasing, and although this increases the productivity of the global economy it also means significant gains or losses in particular countries, according to the direction of migratory flow.
In Central America Costa Rica is at the top (with 54 in overall ranking), followed by Panama (60), El Salvador (106), Honduras (112), Guatemala (122), and Nicaragua (124).
"This report breaks new ground in applying a human development approach to the study of migration. It discusses who migrants are, where they come from and go to, and why they move. It looks at the multiple impacts of migration for all who are affected by it–not just those who move, but also those who stay."
In Central America Costa Rica is at the top (with 54 in overall ranking), followed by Panama (60), El Salvador (106), Honduras (112), Guatemala (122), and Nicaragua (124).
"This report breaks new ground in applying a human development approach to the study of migration. It discusses who migrants are, where they come from and go to, and why they move. It looks at the multiple impacts of migration for all who are affected by it–not just those who move, but also those who stay."