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

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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