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SICA countries OPEN FOR BUSINESS , OPEN FOR TRADE AND OPEN FOR INVESTMENT

SICA countries OPEN FOR BUSINESS , OPEN FOR TRADE AND OPEN FOR INVESTMENT. Brussels, Septembre 2012. O PEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT. LOCATION. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESMENT. MCCA ². ODECA ¹. SICA ³.

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SICA countries OPEN FOR BUSINESS , OPEN FOR TRADE AND OPEN FOR INVESTMENT

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  1. SICA countries OPEN FOR BUSINESS, OPEN FOR TRADE AND OPEN FOR INVESTMENT Brussels, Septembre 2012

  2. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT LOCATION

  3. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESMENT MCCA ² ODECA ¹ SICA³ • Treaty for the Creation of the Central American States Organization (ODECA). • Best known as “Carta de San Salvador”. Signed in El Salvador on October, 1951. 3. Created by the Protocol of Tegucigalpa. Signed in Honduras on December 13th, 1991. HISTORY 1492 1821 1951 1991 • Created by the General Treaty for the Central American Economic integration. • Signed in Managua, Nicaragua on December 13th, 1960.

  4. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT THE CENTRAL AMERICAN INTEGRATION SYSTEM SICA Central American integration dates back to 1951 when the Organization of Central American States (ODECA) was founded. This was followed by the creation of the Central American Common Market (MCCA), the Central American Bank for Economic Integration (BCIE), and the Secretariat for Central American Economic Integration (SIECA) in 1960. In 1973, ODECA was suspended and progress in regional integration came to a standstill. Some 20 years later, in 1993, a new integration framework, the Central American Integration System (SICA), came into existence. SICA is made up of three Community Organs, the Central American Court of Justice (CCJ), the Central American Parliament (PARLACEN), and the Secretariat General of the Central American Integration System (SG-SICA).

  5. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT THE ADHESION PROCESS TO SICA El Salvador, June 5th, 1992. Honduras, June 8th, 1992. Nicaragua, July 4th, 1992. Guatemala, August 3rd, 1993. Costa Rica, June 26th, 1995. Panama, March 20th, 1996. Belize, November 27th. 2000. Dominican Republic, December 10th, 2003.

  6. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT THE ADHESION PROCESS TO SICA El Salvador, June 5th, 1992. Honduras, June 8th, 1992. Nicaragua, July 4th, 1992. Guatemala, August 3rd, 1993. Costa Rica, June 26th, 1995. Panama, March 20th, 1996. Belize, November 27th. 2000. Dominican Republic, December 10th, 2003.

  7. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT THE ADHESION PROCESS TO SICA El Salvador, June 5th, 1992. Honduras, June 8th, 1992. Nicaragua, July 4th, 1992. Guatemala, August 3rd, 1993. Costa Rica, June 26th, 1995. Panama, March 20th, 1996. Belize, November 27th. 2000. Dominican Republic, December 10th, 2003.

  8. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT THE ADHESION PROCESS TO SICA El Salvador, June 5th, 1992. Honduras, June 8th, 1992. Nicaragua, July 4th, 1992. Guatemala, August 3rd, 1993. Costa Rica, June 26th, 1995. Panama, March 20th, 1996. Belize, November 27th. 2000. Dominican Republic, December 10th, 2003.

  9. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT THE ADHESION PROCESS TO SICA El Salvador, June 5th, 1992. Honduras, June 8th, 1992. Nicaragua, July 4th, 1992. Guatemala, August 3rd, 1993. Costa Rica, June 26th, 1995. Panama, March 20th, 1996. Belize, November 27th. 2000. Dominican Republic, December 10th, 2003.

  10. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT THE ADHESION PROCESS TO SICA El Salvador, June 5th, 1992. Honduras, June 8th, 1992. Nicaragua, July 4th, 1992. Guatemala, August 3rd, 1993. Costa Rica, June 26th, 1995. Panama, March 20th, 1996. Belize, November 27th. 2000. Dominican Republic, December 10th, 2003.

  11. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT THE ADHESION PROCESS TO SICA El Salvador, June 5th, 1992. Honduras, June 8th, 1992. Nicaragua, July 4th, 1992. Guatemala, August 3rd, 1993. Costa Rica, June 26th, 1995. Panama, March 20th, 1996. Belize, November 27th. 2000. Dominican Republic, December 10th, 2003.

  12. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT THE ADHESION PROCESS TO SICA El Salvador, June 5th, 1992. Honduras, June 8th, 1992. Nicaragua, July 4th, 1992. Guatemala, August 3rd, 1993. Costa Rica, June 26th, 1995. Panama, March 20th, 1996. Belize, November 27th. 2000. Dominican Republic, December 10th, 2003.

  13. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT Central American Customs Union CA–UE Association Agreement DR-CAFTA Bilateral Agreements SICA’S TRADE STRATEGY

  14. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT “ Recalling the common strategic objective of the Guadalajara Declaration and taking into account the positive outcome of the joint assessment exercise on regional economic integration carried out with Central America, we welcome the decision taken by the European Union and Central America to launch negotiations for an Association Agreement, including the establishment of a Free Trade Area. ” Vienna Declaration, May 2006.

  15. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT SICA COUNTRIES • Demographicfacts • The size of the market • SICA tradepartners • A world to discover

  16. Association Agreement Central America – European Union • Negotiations started in October 2007 in Costa Rica and concluded in Madrid in may 2010. • Panama integrated fully into the negotiation process in January 2010. • The Association Agreement was rubricated in Brussels on march 2011 by Central American Ambassador in Brussels. • The College of Commissioners adopts the signing proposal and provisional application of the trade pillar and completion of the Association Agreement. (Taken from internal presentation Embassy of Costa Rica in Brussels)

  17. Association Agreement Central America-EU • The Association Agreement between Central America and the EU was signed on 29 june 2012, during the XXXIX Meeting of Heads of State and Government of Central America in Tegucigalpa, Honduras • It is the first region to region agreement. • The agreements needs to be submitted to the pertinent legislative bodies in both regions for its entry into force.

  18. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT • Demographicfacts

  19. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT POPULATION 2012 53.3 millions inhabitants Sources: World Development Indicators Database World Bank (2011) and World Development Report (2012)

  20. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT • The size of the market

  21. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT AREA 559,130kms²

  22. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT SIZE OF THE MARKET* (Billions of US Dollars) • DOMINICAN REPUBLIC 73.74 • 74 GUATEMALA 60.57 • COSTA RICA 48.77 • EL SALVADOR 33.20 • 109 PANAMA 25.29 • HONDURAS 22.13 • 127 NICARAGUA 16.83 • BELIZE 2.30 SICA COUNTRIES 282.84 *for comparative purposes figures are in PPP Source: 2006 World Bank’s Facts & Statistics.

  23. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT SICA countries 2006 Gross Domestic Product US$282.84 billion* Source: World Bank (2006) GDP GROWTH RATE: 8.87% • World Bank’s Ranking of the • biggest economies*: • EGYPT 328.80 • MALASYA 308.80 • SWEEDEN 285.10 • SICA COUNTRIES 282.84 • VIETNAM 258.60 • VENEZUELA 176.40 • 58 SINGAPORE 138.60 • *for comparative purposes • figures are in PPP • Source: 2006 World Bank’s Facts & Statistics.

  24. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT • SICA trade

  25. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT 2006 SICA TRADE BALANCE (billions of US Dollars) IMPORTS EXPORTS $50.2 billion $31.5 billion SICA foreign trade: $81.7 billion (X+M) / GDP : 74.3% EU: 20.4% - USA: 21.3%

  26. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT IMPORTS EXPORTS $3.99 billion $2.56 billion 2006 SICA – EU TRADE BALANCE (billions of US Dollars) SICA – EU TRADE: $6.55 billion

  27. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT 2006 SICA – BEL/LUX TRADE BALANCE (Millions of US Dollars) IMPORTS EXPORTS $228.13 Million $353.47 Million SICA – BEL/LUX TRADE: $581.6 Million

  28. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT 2006 : Top Imports from the EU (First ten chapters) • Electronic devices $900.5 • Machinery $410.7 • Pharmaceuticals $255.9 • Mineral fuels $239.3 • Chemicals $198.2 • Vehicles and transportation $173.7 • Iron and steel $107.2 • Plastics and/or plastic manufactures $92.2 • Precision devices $86.1 • Paper, carton and celulose $83.7 • Fertilizers and pesticides $83.7 in millions of US Dollars - Source: 2007 SIECA TRADE STATISTICS

  29. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT 2006 : Top Exports to the EU • Coffee $704.6 • Tropical Fruits $605.4 • Electronics and microchips $320.7 • Flowers and green plants $109.1 • Fisheries $97.9 • Processed tropical foods $95.8 • Precision and medical instruments $54.3 • Beef and canned foods $48.9 • Minerals $42.7 • Mineral fuels $40.4 in millions of US Dollars - Source: 2007 SIECA TRADE STATISTICS

  30. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT • A world to discover

  31. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT 2006: VISITORS TO OUR COUNTRIES 13,058,583 Sources: DITUR/ SG-SICA. & Dom. Republic Tourism Office. 2006

  32. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT 2006: REVENUES GENARATED BY TOURISM: $9,89 Billions Sources: DITUR/ SG-SICA. & Dom. Republic Tourism Office. 2006

  33. Thank you

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