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Presentation on theme: "WORKING TOGETHER TO BUILD AGRICULTURAL EXPORTS TO EUROPE"— Presentation transcript:


2 The SICA Region: Profile
Economic Outlook for 2014 Trade Agreements The Role of Agricultural Sector in SICA Economies Value Added Agricultural Production Exports and Imports Business Opportunities

3 The SICA Region: Profile
The SICA region is comprised by the seven countries of Central America (Belize, El Salvador, Guatemala, Honduras, Nicaragua, Costa Rica, Panamá) and Dominican Republic, that holds the Pro-Tempore Presidency for the first semester of 2014.

4 The SICA Region: Profile
Population: 52 million GDP of US$417Bn in 2013 Average Gross National Income grew from US$4,360 in 2011 to US$4,721 in Production of agricultural commodities And tropical produce, such as fruits, vegetables, coffee, cacao, bananas and others.

5 Gross National Product (GNP) of SICA Countries for 2013 US$ Billions
(*) Millardos = Billon USA Source: WEO/FMI, Octubre 2013

6 The SICA Region: Profile
A bridge between South America and the European Union; a door to the North American market through the DR-CAFTA; rising intercontinental trading with the expansion of the Panama canal; strategic Location; trade logistics infrastructure: hubs and warehousing committed to move forward regional integration for sound economic development and trade competitiveness.

7 Economic Outlook for 2014 FMI estimates a global growth of 3.7% for 2014 FMI growth projections for SICA region is 3.9%. Trade exchange is projected to rise to 4.5% from a 2.7% in Agricultural products are expected to be a key factor in the region´s growth.

8 Expected Market Performance:
Economic Outlook for 2014 Expected Market Performance: OECD estimates price increases over the next coming years due to slower production and stronger global demand and the growth in China´s market. Consumption increase in developing countries, driven by growing populations, higher incomes, urbanization and changing in diets. Per capita consumption is projected to expand most rapidly in Eastern Europe, and Central Asia followed by Latin America and Asia. Emerging economies will capture much of the trade growth, accounting for the majority of exports of coarse grains, rice, oilseeds, vegetable oil, sugar, beef, poultry and fish. 

9 Total Trade Exchange of the European Union with the World - 2000/13 (in Billions of Euros)
Variación 2013 con 2009 UE27 to World…… % World to UE27……… +36.3% Source: EuroStats

10 Trade Agreements DR-CAFTA Changed the pace of economic development of the region by: Strengthened and diversified trade relations between SICA and the United States. Boosting economic growth and political cooperation between Central American states and the US. Leading reforms at the legal, infrastructure, logistics and business environment levels

11 Central America- Dominican Republic Agreement
Trade Agreements Central America- Dominican Republic Agreement Signed in 1998 between Dominican Republic and Central American countries with the exception of Panama. Promoted regional exchange, eliminating trade barriers and propelling regional investment. Products manufactured on Tax Free Zones are not included. Implemented as a bilateral agreement between Dominican Republic and the signatory countries.

12 Trade Agreements EPA-CARIFORUM (Dominican Republic and Belize)
Opened a bridge for trade exchange consolidating free access to the EU market. Fostered trade-related cooperation issues and investment promotion. Duty-free quota-free access for all products to the EU market. Technical cooperation for modernization of customs procedures and trade facilitation. Capacity building on procedures and international trade standards.

13 Relies on three pillars: political dialogue, cooperation, and trade.
Trade Agreements EU-CENTRAL AMERICA Relies on three pillars: political dialogue, cooperation, and trade. Foster business and investment opportunities. Reinforces economic integration among the Central American countries. SICA exporters have duty free access for 91% of their products.

14 SICA Region Share of EU Global Trade Exchange ( 2010/13)
EU global exports EU global imports Source: EuroStats

15 The Role of Agricultural Sector in SICA Economies
Agricultural production is a major contributor in the economic development of SICA countries , ranging from 4% of GDP in Panama to 20 % in Nicaragua for 2012, with an average of 11% for the region. Common objective of the SICA Ministries of Agriculture: Improve productivity and promote competitiveness. Production planning with market oriented approach. Compliance with international food safety standards. Promote business climate for public-private partnerships and FDI.

16 Market Share of the European Union Agricultural Global Trade 2010/13 (average %)
Global Exports Gobal Imports Source: EuroStats

17 Market Share of the SICA Countries Agricultural Trade with EU27
Import UE27 from World Exports UE27 to World Source: EuroStats

18 Total Trade Between EU and SICA Region - 2000/13 (000.000 Euros)
Variation 2013 to 2009 UE27 to SICA…… % SICA to UE27……… +58.2% Source: EuroStats

19 Share of Agricultural Sector on GDP of SICA Countries
The Role of Agricultural Sector in SICA Economies Share of Agricultural Sector on GDP of SICA Countries Country  2011 2012 Dominican Republic 6.10% 6% Panama 3.80% 4% Belize 9.70% 13% Costa Rica 6.20% Nicaragua 17.50% 20% Honduras 12.80% 15% El Salvador 10.50% 12% Guatemala Source: Worldbank

20 Market Share of Agricultural Goods in the Imports of UE 27 from SICA Region 2013 (%)
Fuente: EuroStats

21 The Role of Agricultural Sector in SICA Economies
Areas for investment opportunities: Joint Ventures in greenhouses and fresh vegetables production. Renewable energy projects. New technologies such as greenhouse production, organic farming. Improvement in trade facilitation: Logistics, food processing and packaging, warehousing, and market access.

22 The Role of Agricultural Sector in SICA Economies
Regional agricultural development is lead by the Central America Agricultural Council (CAC), a body of the SICA that joins all the Agricultural Ministers under the Protocol of Guatemala. Role: spearhead and promote integration of the region’s agricultural sector. CAC scope of actions Climate change and risk management Farm agriculture Rural Development Sanitary and safety procedures Technology, information and innovation Competitiveness, trade and agribusiness Food security and nutrition Source: EuroStats

23 The Role of Agricultural Sector in SICA Economies
Competitive advantages in the agricultural value-chain. Certified organic production. Most organic farming produced under a fair trade model for sustainable development of agribusiness Dominican Republic: largest global exporter of organic banana, organic cocoa, mango, coffee and vegetables Costa Rica: Banano, pineapple, coffee and cocoa. Guatemala: Internationally known for organic coffee exports El Salvador: Fresh vegetables.

24 Exports and Imports The bulk of most Central America countries trade has been with USA and Latin America. Trade exchange between SICA countries and EU has been relatively modest until now. The most important exports from the EU to Central America are machinery and transport equipment (47.2%) and chemicals (21.5% in 2012). Principal UK exports are beverages, medicinal and pharmaceutical products, road vehicles, specialized industrial machinery, electrical machinery and miscellaneous manufactured articles.

25 Total Trade Between EU and SICA Region - 2000/13 (000.000 Euros)
EU Exports EU Imports EU Exports: Euros 7,453.8 mo. EU Imports: Euros 8,425.2 mo. Source: EuroStats

26 Trade of Agricultural Goods Between EU and SICA Region - 2000/13 (000
Trade of Agricultural Goods Between EU and SICA Region /13 ( Euros) (*) Agriculture= HS 01 to 24 Variation 2013 to 2009 UE27 to SICA…… % SICA to UE27……… +24.7% Source: EuroStats

27 Export and Import of Markets in the European Union with 27 Countries of SICA
Import UE27 Export UE27 Export UE27 = Euros mm. Import UE27 = Euros 3,717.5 mm. Source: EuroStats

28 Trade of Agricultural Goods between EU and Individual SICA Countries in 2013 (000.000 Euros)
Source: EuroStats

29 Average % of EU Imports of Fruits, Coffee, Tea and Species - 2010/13
Fruits Imports : billion EUR Coffee, tea and species Imports: billion EUR Source: EuroStats

30 Plants and flowers Import: 1.532 mm EUR Tobacco Imports: 2.591 mm EUR
Average % of EU Imports of Ornamental Plants, Flowers and Tobacco /13 Plants and flowers Import: mm EUR Tobacco Imports: mm EUR Source: EuroStats

31 Business Opportunities
The SICA region is determined to boost its competitive advantages of location, agricultural production and tourism. Integration policies are moving forward agricultural modernization. Tourism, manufacturing and service industries are becoming increasingly important. Mining is just in the first stages of development. The expansion of the Panama canal is opening exponential opportunities in transportation service and logistics.

32 Business Opportunities
Investment opportunities are supported by demands from the expansion and diversification of its economies such as: Farm inputs and related technologies for agribusiness Animal breeding and capital intensive production processes. Development of infrastructure in roads, urban transportation systems, ports improvement, merchant marine and trade facilitation, in general. Logistics warehousing services for exports of perishable Distribution services on European Union markets for export products. Renewable energy and wastewater treatment plants

33 Business Opportunities
Ecological Profile The clean energy sector in SICA region is expanding. The region’s natural resources offer potential for the development of marine, solar, geothermal, wind and bio power generation and several projects are already underway Costa Rica has no registration requirements or project approval processes for new investments. No specific limitations are applicable to foreign investments. In general Costa Rica does not have any special laws governing Its free zone industry is under the Free Zone Regime Law that provides benefits and incentives on raw materials, machinery and equipment for certain types of vehicles.

34 Business Opportunities
Dominican Republic legal framework offers incentives and guarantees for investments in several sectors. Foreign investment Law and Free Trade Zones for Exports carry important incentives for investments in tourism and production/manufacturing. Housing Projects Law (189-11) is aimed at promoting real estate financing with direct incentives for low cost housing development . Renewable Energy Law (57-07) provides incentives in energy generation from renewable sources. Solar and wind farms projects are already in progress and two bio-fuel power plants will start within 2014. Film Industry Law ( ) sets up incentives for the filmmaking industry, local filmmaking production and on studio´s construction. One-stop Investment Counter is in the process of being implemented, to accelerate and streamline procedures related to national and foreign investment.

35 Business Opportunities
Nicaragua has various incentive laws for priority sectors, such as the Tourism Incentive Law, the Renewable Energy Incentive Law and the Free Trade Zones Law for export-oriented industries. Guatemala has a foreign investment law dating back to 1998 to promote foreign direct investment. There are no restrictions on foreign investment in the telecommunications, electrical power- generation, airline, or ground-transportation sectors. New legislation for Public Private Partnerships has been enacted to attract investments towards large-scale construction projects.

36 Business Opportunities
Panama has a bilateral investment agreement with the United Kingdom and has been a member of the International Centre for the Settlement of Investment Disputes (ICSID) since A particular area of opportunity for foreign investors is in the former Canal Zone and associated military bases. Panama Pacific, one of its facilities, has been singled as a special economic incentives zone for investments on the “new town” infrastructure concept.

37 THANK YOU !!!!!!


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