Juli 2008: Nieuwsflits Regio
From Handelswijzer Midden-Amerika van de Koninklijke Nederlandse Ambassade te Costa Rica
Latin America - EU banana war continues
Costa Rican banana exporters convened a Latin American Summit to discuss European Union refusal to sign the accord to reduce import tariffs. Costa Rica and other Latin American countries called the EU reaction a bad sign and evident refusal to settle the conflict on the issue, setting a bad precedent amid negotiations for an association treaty with the EU. President Arias of Costa Rica stated that it’s another clear example of the big hypocrisy of developed nations, pledging to help developing nations, but acting differently. Costa Rica Foreign Trade Minister Marcos Vinicio Ruiz says the accord will be implemented with or without the Round of Doha: because Europe cannot violate it and the parties will fight for its respect. The EU agreed on July 27 to Latin American demands to gradually sever from 176 euro to 114 the tariff per ton in 2016 while preserving duty-free access with a large quota for the A-C-P countries but refused later to honor it, claiming it to be part of the Doha round that failed.
Millicom International will offer 3G services in Central America
Telecom giant Millicom International Cellular announced that it will be acquiring Amnet Telecommunications Holding Limited, a leading Central American provider of broadband Internet and cable television, for $510 million. “This transaction is an important step in the development of our strategy for Central America,” said Marc Beuls, president and CEO of Millicom. “There is a lack of fixed line infrastructure to carry broadband services but customers in these markets are increasingly demanding access to broadband services, and in order to satisfy the demand we are launching 3G services across the region in the second half of 2008.” Amnet provides cable, broadband and fixed telephony in El Salvador and Honduras, as well as private data services in those countries and Guatemala and Nicaragua. Amnet is Costa Rica's leading cable provider and a major provider of high-speed Internet through a partnership with state-owned Internet provider Radiográfica Costarricense (RACSA). The company also has operations in the Netherlands Antilles, Ecuador, and Trinidad and Tobago. Overall, Amnet has some 350,000 corporate and residential customers. Last year, the company generated $143 million in revenues. Millicom will be able to expand its services in Costa Rica beyond those offered by Amnet once the state-owned Costa Rican Electricity Institute's (ICE) telecom monopoly is opened to competition. Under the Central American Free-Trade Agreement with the United States (CAFTA), Costa Rica agreed to open to private competition cell phone, broadband Internet and private data services.
EU and Central America conclude successful fourth round of negotiations for a bi-regional Association Agreement
The European Commission, negotiating on behalf of the European Union (EU), and Central America met in Brussels from 14 to 18 July 2008 for a fourth round of negotiations of a bi-regional Association Agreement. During this round of second exchange of trade offers, discussions took place regarding custom union issues, non-tariff barriers to trade as well as sanitary and phytosanitary issues. A significant progress in every component of the future Association Agreement was realized. The next round of negotiations should take place from 6 to 10 October 2008 in Guatemala.
Petrocaribe expands membership
Guatemalan President Alvaro Colom announced to join of the Petrocaribe energy initiative, boosted by Venezuela. Guatemala will receive 20,000 barrels of heavy oil and diesel daily. The Ministerial Council of Petrocaribe also invited Costa Rica to join the energy alliance. Roberto Dobles, Costa Rica's ministro de ambiente y energia (MINEAE) - Minister of Environment and Energy - said that the proposal is "very positive" for Costa Rica, since the Central American country is a net importer of crude oil and has been deeply affected, from a social and economic point of view, by skyrocketing oil prices. That initiative emerged in 2005 to solve asymmetries in access to oil resources through a new favourable, equitable and fair exchange among the Caribbean basin countries. Nation members only have to pay 60-percent of the bill and the rest has a 25-year period of grace with interest of only 1%. The debt of Petrocaribe members with Venezuela has reached $1.16 billion in little more than a year of supplies, and is estimated to rise to $4.6 billion by 2010. Antigua and Barbuda, Bahamas, Belize, Cuba, Dominica, Grenada, Guyana, Jamaica, Dominican Republic, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Surinam, Venezuela, Haiti, Honduras and Nicaragua are currently members of the organization.
International banking DR-CAFTA countries
During the Seventh Annual Regional Conference of Central America, Panama and the DR, held in San Salvador, El Salvador, the International Monetary Fund economists report an increase in international banking in DR-CAFTA countries, with the exception of the DR. International banks market share is above 90% in El Salvador, 55% in Panama, and 25% in Costa Rica, while international banks only make up 10% of the banking sector in the DR and Guatemala. Two foreign banks were forced to leave the DR banking sector because they encountered "ferocious competition" and couldn't adapt to the country's finance culture. Republic Bank and CitiBank both ceased operations in the DR. IMF's Western Hemisphere Department says that there needs to be convergence in banking rules in the region as a way of preventing high risks at the capital level and revealed that the Council's Superintendents signed a cooperation agreement that will allow increased supervision of banks in the region.
Central America’s small hotel network to receive support
The Central American Economic Integration Bank (BCIE) will set aside $5 million for financing projects by small hotels in the isthmus, including those in Costa Rica. The program’s pilot plan began in Nicaragua, and it’s expected to reach the rest of the Central American nations in the short term, according to the Small Hotels Program’s regional coordinator, Victor Ramirez. This initiative has been promoted by the Central American Tourism Council, part of the Central American Integration System (SICA) sponsored by the Organization of American States (OAS). Its goal is to facilitate the implementation of actions that contribute to the strengthening of small hotels’ competitiveness and sustainability in the region, in addition to creating a model of integration (federation) of small Central American sustainable hotels offering world-class service and access to tourist attractions.
Taiwan's world vegetable centre to open Central America centre
The Taiwan-based World Vegetable Centre plans to open a regional centre in Central America to expand research and development projects to Latin America. The choice will be between Nicaragua and Honduras. The institute's aim is to reduce malnutrition and alleviate poverty in developing nations through improving production and consumption of vegetables.
