What Is One Benefit Of Free-Trade Agreements In Central America And The Caribbean

The IDB MOOC will address these and other key issues in trade agreements. o Strengthening mutual assistance on multilateral environmental agreements (MMA) and the free trade agreement. Central American Group: It`s very interesting. Given the scale and scope of Salvadoran free trade agreements and limited agreements, how can foreign investors benefit from these agreements? Johanna Hill: I think there are two major benefits for investment and exports from Central America. The first is proximity to major markets. We are very close to Mexico and the United States, as well as the northern part of South America. As I said earlier, we have free trade agreements with countries in the region. This means that we have good market access conditions. Products arrive in many countries with zero tariffs. In addition to the proximity to the market, we have very favourable rules of origin. Because we are economically smaller, our partners have generally given us rules of origin that are favourable to our reality. For certain industrial sectors and products, we can therefore bring raw materials or intermediate products so that they can finally be processed and benefit from The Salvadoran Free Trade Agreements.

They can then be sold abroad. Let`s look at five reasons why trade agreements are important to the LAC. The Central American Group: According to my studies, there would be future Salvadoran free trade agreements with other countries. What is it? What should companies that want to do business in El Salvador do to use them? According to the U.S. Caribbean Basin Trade Partnership Act, many Central American products arrive duty-free in the United States. CAFTA will consolidate and sustain these benefits, so that virtually all consumer and industrial products from Central America will immediately enter the United States duty-free after the agreement. Costa Rica has benefited from increased foreign direct investment in the insurance and telecommunications sectors, which the government recently opened to private investors. These goods include fruit, coffee and other food products, as well as electronic components and medical equipment. When CAFTA-DR was introduced, the Costa Rican government partially privatized the banking, telecommunications and insurance sectors, helping to stimulate economic growth. · Tariffs on most LAND production products in the United States will be phased out within 15 years. Agricultural products in the United States that will benefit from better market access include pork, beef, poultry, rice, fruits and vegetables, corn, processed products and dairy products. Johanna Hill: I work for CATRADE Consulting.