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Ireas CookRegional Commercial CounselorU.S. Embassy San Salvador
Doing Business inCentral America
Central America Region at a Glance
• Population: 40 Million
• U.S. Exports over $23B in 2012 - up 48% from 2005
• Combined GDP: $148B
• GDP Growth: 3.5%
• Very Receptive To U.S. Goods & Services
Why Export to CAFTA Region?
• 40% of Region’s Imports are from the U.S.
• On-Going Market Liberalization
• Proximity and Openness to U.S.
• U.S. firms & Central American Firms are Regionalizing
• CA Integration: Power Grid, Customs, Highway, & Security
• CAFTA advantages
Central America: Sizable Export Market
Central America: Economic Growth Rate - 2013
012345678
Real GDP Growth Rate (%
)
Source: Economic Comission For Latin America and The Caribbean , 2013 estimate
Costa Rica Highly Skilled Labor Force
Diversified Economy
Political and Social Stability
Friendly Business Environment
Attractive Tax Incentives
“Safe” market
Sophisticated Consumers
70,000 U.S. Permanent Residents
Close Proximity to the U.S.
El Salvador
Dollarized Economy
Receptive to U.S. Products/Services
US-El Salvador “PFG” Initiative
U.S. is El Salvador’s Principal
Source of Imports and Foreign
Investment
Air Transportation Hub For CA
U.S. exports in 2012 were 42%
higher than in 2005
Guatemala
Largest market in the region for U.S. goods and services
Real GDP (2012): USD 26.5 billion
U.S. is one of Guatemala’s top trading partners (US Imports = USD 4.6 billion for 2012. USDOC)
U.S. trade surplus with Guatemala USD 1.4 billion in 2012
Honduras• U.S. Exports Increased 38.40%
since CAFTA
• U.S. is the Largest Investor, accounting for 70% of Total FDI Inflow
• Largest Certified Seaport In CA
• Diversified Economy with Strong Textile Industry
• Democracy Restored Following 2009 Political Crisis
Nicaragua
Safest Country In CA
Rich In Natural Resources
U.S. Exports have increased 57% since CAFTA Entry
Lowest Wage Rates In CA & Large Labor Pool
Privatization Under Way
Belize Open & private sector led economy
Relies heavily on imports
U.S. is Belize’s leading trade partner
Belize has 2nd highest per capita income in Central America
English is official language
Not a CAFTA-DR member, but has FTA with Central America and Dominican Republic
El Salvador
• Franchise • Travel & Tourism • Auto Parts & Services
Equipment
Nicaragua
• Food Processing/Packaging• Hotel/Restaurant • Medical/Dental Equipment
Guatemala
• Safety & Security
• Construction Equipment
• Electrical Power
Central America Best Prospects Industries
Honduras
• Food Processing/Packaging • Safety/Security • Auto Parts & Service and
Equipment
Belize
• Hotel/Restaurant • Agricultural Machinery
Costa Rica
• Franchise• Travel & Tourism• Auto parts and Service
Equipment
Central America Best Prospects Industries
Market Practices &Tips for Success in Central America
• Be informed – “Doing Business” Guides
• Contact your nearest U.S. Export Assistance Centers
• Identify partners/background check
• Always get legal advice
• Follow‐up quickly ‐ profuse international competition
• Use USDOC FTA Tariff Tool to find out what tariffs are: http://export.gov/fta/ftatarifftool
• Build Personal Relationships
Tip: Market Entry Strategies
• Presence: Local representative or distributor
• Local vs Regional Representative: Due to country differences & varied level of development, regional distributor may not be the answer.
• Price: Price is important but..
• Spanish: Be prepared to provide brochures, catalogs, and printed materials in Spanish; keep websites international‐user‐friendly
Major ProjectsCosta RicaMaritime Port: $20 Mn Container terminal/Port Construction
$35 Mn Port equipment
Fuel Storage Tanks $16 Mn Construction of 7 tanks
GuatemalaTransportation: $7 Bn Highway and railroad constructionRoad & Water: $160Mn Rural road and water improvement,
including water sanitationElectricity: $1Bn 600MW purchase power contract from new
and existing plants, and different generation sources
Costa RicaMaritime Port: $20M Container terminal/Port Construction
$35M Port equipment
Fuel Storage Tanks $16M Construction of 7 tanks
GuatemalaTransportation: $7B Highway / Railroad construction
Road & Water: $160M Rural roads / Water Sanitation
Electricity: $1B 600MW
Major ProjectsCosta RicaMaritime Port: $20 Mn Container terminal/Port Construction
$35 Mn Port equipment
Fuel Storage Tanks $16 Mn Construction of 7 tanks
GuatemalaTransportation: $7 Bn Highway and railroad constructionRoad & Water: $160Mn Rural road and water improvement,
including water sanitationElectricity: $1Bn 600MW purchase power contract from new
and existing plants, and different generation sources
El SalvadorTransportation System: $45M Construction Works, Metropolitan Area
International Airport: $427M Modernization / Expansion
Electricity: $900M 350 MW Renewable Energy
NicaraguaOil Refinery: $6B Government owned Electricity: $1.1B Concession of 253MW new hydroelectric
$426M Concession 82MW geothermal ProjectTourism Infrastructure: $250B New Private Island Resort
Major ProjectsCosta RicaMaritime Port: $20 Mn Container terminal/Port Construction
$35 Mn Port equipment
Fuel Storage Tanks $16 Mn Construction of 7 tanks
GuatemalaTransportation: $7 Bn Highway and railroad constructionRoad & Water: $160Mn Rural road and water improvement,
including water sanitationElectricity: $1Bn 600MW purchase power contract from new
and existing plants, and different generation sources
HondurasPalmerola Civil Airport: $350M Construction / Upgrades
Puerto Cortes: $225M Port Modernization
Infrastructure: $100M Prison Construction and Equipment
$240M Concession of Logistics Corridor – 392 km
BelizeAgriculture: $25M Sugar Cane Factory / Cayo District
$62M Sugar Processing Plant / Orange Walk Dist.
$10M Mechanized Farming: Grains/Vegetables
Tourism Infrastructure: Roads / Resorts
Ireas CookRegional Commercial CounselorU.S. Embassy San Salvador
Central AmericaCentral AmericaCosta Rica El Salvador Guatemala Honduras Belize
Nicaragua