5 Green Reasons Costa Rica Is the Poster Child of the Environment 6 years ago
Have You Tried Guanacaste’s Fastest Growing Sport? 6 years ago
Was Your Costa Rican Bank Account Closed? 6 years ago
Latin America Investment News on Viva Tropical

Ecuador Enters Trade Agreement Talks with El Salvador

Article Summary:

Ecuador and El Salvador are expected to begin trade talks this year. The two governments are negotiating a trade agreement line item, by line item. Meanwhile, the private sector has explored this possibility for two years and is ready to sit down and and sign.

Original Article Text From La Prensa Graphica via Google Translate :

Partial Agreement Negotiated With Ecuador

El Salvador begining this year will seek to negotiate a partial scope agreement with Ecuador. This was reported by Mario Roger Hernández, deputy economy minister, describing the focus of trade policy in 2012.

He said right now the talks are preliminary. This, according to the deputy minister, would complement the “vision” of free trade agreements with South America.

To question him why look for a partial agreement and not a Free Trade Agreement (NAFTA), Hernandez said that both countries think of a basic basket of products to start business relationship.

That “small basket” may include some 800 tariff lines. Do not rule out that in the future to assess the need for a broader agreement.

“We will begin talks with Ecuador this year, this may take some time, but to be less trade disciplines one may end up a little faster. We expect to complete that process this year, “said Hernandez. Rigoberto Monge, private sector representative in the negotiation of trade agreements, said the sector they represent approaches has held “important” to business in Ecuador.

The talks have been developed over the past two years, he said. “It’s not a new issue is an issue that the productive sector so welcomed,” he confessed Monge.

He said that the private sector like the idea of ​​it being a partial agreement because in this type of negotiation involving the productive activities that are of interest.

Another advantage is that the modalities for negotiations are simpler, because it is trade preferences and not a total elimination of tariffs.

Monge said that Guatemala and Ecuador concluded in 2011 a partial agreement. The South American country also negotiating with the Dominican Republic and initiated closer ties with Honduras.

“With us the talks are advanced to define the framework for negotiations between the two governments, and I hope that these negotiations could begin sometime this year,” said the negotiator.

The trade balance between the two countries favors Ecuador. El Salvador imported hydrocarbon supplies to the construction industry and home appliances. The country exports very little and hence the interest in sectors such as chemical-pharmaceutical and plastics, the opportunities could be generated from the signing of the agreement.

Hernandez, meanwhile, said it will seek to reduce taxes for access to sectors such as agricultural products, food processing and textiles and clothing.

Finally, Monge said that this agreement would be similar to what the country signed with Cuba and that could be presented this week at the Legislature for approval.

Link to Original Article:

From La Prensa Graphica

Latin America Investment News on Viva Tropical