2nd June 2023

President Andrés Manuel López Obrador (AMLO) has announced a proposal to allow temporary work visas for Central Americans in Mexico. The visas will enable regional workers to be employed on such projects as the Maya Train. Trades such as welders, blacksmiths and other manual work as well as engineers will be required. In order to link up the south of Mexico, which includes the Maya train, Interoceanic rail corridor and ports on the Atlantic and Pacific oceans, AMLO said Mexico will require more workers. According to the International Labor Organization (ILO) in a report published in Mexico City, there have been some programs in the region but migration is outstripping them. In the past 15 years international migrants have grown in Latin America and the Caribbean from 7 to 15 million, 5.3% of the world’s total.

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PHOTO: Mexican President Andres Manuel Lopez Obrador speaks during a news conference at the Secretariat of Security and Civilian Protection in Mexico City, Mexico REUTERS/Henry Romero

19th May 2023

The Council of Central American Transport Ministers (Comitran) discussed the integration of transport networks during a meeting in El Salvador. Having received the master plan for mobility and logistics 2035, officials started the task of investing up to US$52.49bn. The plan, presented by the Japan International Cooperation Agency (JICA) and the Central American Economic Integration System (Sieca) calls for an integrated land, sea, air and rail mobility system. El Salvador’s Minister of Public Works and Transportation (MOPT), Romero Rodríguez, argued this would boost regional trade and local economies. If such a system was built it would represent an estimated 35% saving for freight transport.

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Photo: Prensa Latina

5th May 2023

Talks between India and Central American representatives in Panama agreed to continue development of solutions to food security, connectivity and renewable energy. Indian Foreign Minister Subrahmanyam Jaishankar met with counterparts from the Central American Integration System (SICA). An Action Plan will be drawn up to include other areas such as agriculture, IT and health. Trade between India and Latin America reached US$50bn in 2022. India announced plans to gain more of a presence in the region with a logistics centre, possibly in Panama. Jaishankar is on an official tour of the region.

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Photo via: @DrSJaishankar

21st April 2023

Banco Cuscatlán, Banco Industrial and Ficohsa signed an agreement with the HUGE (Honduras, USA, Guatemala, El Salvador) Business and Investment Council to promote the generation of two million new jobs. Employment opportunities are viewed as key to halting migration from the Northern Triangle of Central America to the US. The deal was signed during the “Investment Opportunities to Capitalise on Nearshoring of American companies with companies from Guatemala, Honduras and El Salvador” event. The banks will promote good practices for strategic infrastructure to enhance business opportunities with the US. They will also commit to financial education and awareness programs, as well as reducing their environmental footprint and the promotion of green finance options.

Photo via think-huge.org

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7th April 2023

Taiwanese president Tsai Ing-wen concluded a three-day official visit to Guatemala stating the days of dollar diplomacy are over. In March, Honduras became the latest country to switch allegiances to China, leaving 13 countries officially recognising Taiwan. Guatemala will receive US$150mn in aid from Taiwan during the 2013-2025 period. Taiwan remains the largest shareholder in the Central Bank for Economic Integration (CABEI) and any change to this would imperil dozens of projects across the region. Taiwan represents 11.3% of CABEI’s shares with US$776.25mn out of US$7bn. Since 1997 there have been 20 bond issuances in Taiwan totaling US$2.6bn.

Photo by Jack Brind 

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24 March 2023

Honduras have announced that they will recognise only one China, breaking diplomatic ties with Taiwan that have existed for 82 years. In return, finance and expert assistance will be provided in the construction and operation of dams in Honduras. Diplomatic relations will begin between the two countries before the end of 2023. According to the Honduran government they see China as an “important ally” going forward. China’s Foreign affairs ministry described the move as bringing “more opportunities” to Honduras. Taiwan has warned Honduras, similar to El Salvador, Nicaragua, Panama and Paraguay, that any promises they received from China may not turn out as originally planned. Taiwan is now recognised by 13 countries worldwide. Honduras becomes the ninth country and fifth in Latin America to cut ties with Taiwan since 2016. Honduran foreign minister Enrique Reina stated that China offered more economic aid after not receiving a reply in respect to a renegotiation of a US$600mn debt with Taiwan.

Photo by Ling Tang

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10th March 2023

Nicaragua has formally joined the EL Salvador-Panama Integrated Stock Market and will now have access to a US$54bn market. The overall plan is for a regional stock market but will require legislative fine tuning in Costa Rica, Guatemala and Honduras. A CABEI-backed regional debt market is hoping to begin operations this year. The integrated stock market idea began in 2015 and from 2017 to date has carried out over US$500mn in transactions so far. The General Manager of the Nicaraguan Stock Exchange, Gerardo Argüello, hoped the move would see a 60-fold growth in their local market.

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24th February 2023

Burkhan World Investment has announced an alliance with Costa Rican real estate company Stone Alliance worth up to US$1bn. A range of projects will be considered with Burkhan World Investment beginning with sustainable investments in Marina Tambor and Cobano Preserve on the Southern Nicoya Peninsula. The portfolio consists of mixed eco-development including a marina, hotel, commercial and residential areas. Burkhan World Investment consists of investors from the United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar, and Kuwait. The initial investment is in a 360-hectare property with 4.5kms of coastline.

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10th February 2023

Panama President Laurentino Cortizo has authorised the establishment of two new tax free economic zones. The Tech Valley Free Zone and Panama Digital Gateway will be able to house up to 740 companies. Hyundai has already been confirmed as one of the new arrivals. The total investment is believed to be around US$111.5mn, creating at least 4,710 direct jobs. The Panama Digital Gateway will be strategically placed near the new Curie submarine cables and is designed for content providers such as Netflix, Amazon, Facebook and Cloudflare.

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