Now that we thought we were finally free of the Covid plague and life was smiling at us, we have to slam on the brakes again in connection with a threat from Eastern Europe, the outcome of which is, if possible, even more difficult to predict than an infection with Omicron.

All right, we can look each other straight in the eye again without a mouth mask, and we can meet again with many in places we had to dream of for a long time. Even flying to distant destinations is once again a possibility.

What is certain, however, is that after Covid and certainly with the current international developments in mind, we urgently need to adapt to totally new ways of doing business. Especially now that the balance of power in the world has been shaken to its foundations.

But as always, every dark cloud has a silver line and, according to insiders, the gaze of many entrepreneurs and investors is now increasingly turning towards Central and Latin America.A number of projects that different Ambassadors have brought to our attention give Euracen ample opportunity to put forward specific Belgian companies, entrepreneurs and investors as possible "matching partners" for the owners and decision-makers of these projects.

We are currently working hard to list the key Belgian companies from all possible sectors that we want to encourage in the near future to offer their products and services through detailed projects, possibly with specifications and budget estimates. With this golden directory, we want to take away any excuse for the authorities and business communities in our Central American countries not to work with a Belgian company.

1. Make business contacts - The Chamber initiates B2B opportunities for networking and connecting with other business professionals

2. Receive Chamber Newsletters - Our Newsletters provide on a regular basis useful information about business developments on both sides of the Ocean in general, and about the CA countries we are dealing with in particular.

3. Acquire customer referrals - We are an ideal turning platform where info and requests about import and export opps are pro-actively dealt with

4. Bring credibility to your business - When identified as a member of Euracen, the Chamber of Commerce Europe-Central America, chances are that you will increase the positive perception among consumers and business owners. By the way, Euracen is the only organisation in Belgium and Luxemburg with boots on the ground in each country in the Central American region.

5. Increase your visibility in the business community - As part of our digital transformation process, we will offer you soon ample opportunities to highlight your activities in our Chamber publications, both off line and online. We intend to offer you possibilities for advertising on our integrated dynamic website and sponsor the events we are planning. The number of personalised contacts in our databank carries 2000+ names and addresses.

6. Networking opportunities - We hope soon to be able to return to the new normal, which should allow us to invite you, to name a few, to

• a traditional Ambassadors Dinner during which we usually introduce new Ambassadors
• a company visit to one of our partners such as Agoria, or sponsors such as John Cockerill
• a meeting with the regional government and the business community in the German speaking Eupen-Malmedy area, Belgium's often forgotten fourth region
• a conference on the new European Green Deal directives and their consequences for the import of all sorts of goods

However, for we don't know how long it will take before we will be back to normal, we have planned to set up some teleconferences on specific topics of interest or concern to you. One such conference should be the Greater Caribbean & Central American Business Summit, scheduled in April.

7. Gain a voice in government

Together with BLCCA, The Belgian Association of Belgian Chambers and bi-lateral Chambers of Commerce, we reach out to the political world when and where possible and/or necessary to take on tough issues or oppose new regulations, taxes, assessments and costs with a negative effect on business. While you may not personally have the time to get involved, we will use all our relations and resources to improve the situation.

For more information, please do not hesitate to get in touch with Erwin De Weerdt, Euracen President.

M +32 475 443 150 & @ edw@aviafix.eu)

DeSantis hands Panama City $20.4M grant for post-hurricane water system repairs

Funding to fully restore water quality in Panama City, governor says

Florida Gov. Ron DeSantis hands off a grant for $20.4M to Panama City for post-hurricane repairs of the city's water, sewer and stormwater systems.

Copyright 2022 by WKMG ClickOrlando - All rights reserved.)

PANAMA CITY, Fla. – Florida Gov. Ron DeSantis on Thursday handed Panama City leaders a $20.4 million grant for post-hurricane repairs of the city’s water, sewer and stormwater systems.

The money from the state job growth grant fund will be used to help the city repair 2.4 miles of damaged water and storm water lines respectively, as well as 3 miles of damaged sewer lines in the area.

“People understand just how devastating Hurricane Michael was for the area, but a lot of people don’t know that even today the city has employees working around the clock to maintain lift stations and keep manholes clear during storms that bring heavy rain,” DeSantis said. “This project will bring a permanent solution to the ongoing water issues and help the city mitigate environmental impacts or overflows.”

The news conference comes a day after the governor visited southwest Florida to award $16.8 million to Bonita Springs for repairs to that city’s stormwater infrastructure as well.

Kate Middleton And Prince William Royal Visit Belize Confirmed

Belize will be the first stop of the Royal tour by Kate Middleton and Prince William – an opportunity to commemorate the Platinum Jubilee, celebrating Her Majesty The Queen’s 70 years of service to the people of the United Kingdom, the Realms, and the Commonwealth an official announcement from the British High Commission in Belize has confirmed.

Their Royal Highnesses The Duke and Duchess of Cambridge will undertake official visits to the Realms of Belize, Jamaica and The Bahamas on behalf of Her Majesty The Queen on the occasion of the Platinum Jubilee.

The visits will take place between Saturday 19th March and Saturday 26th March. The Royal tour begins in Belize where Their Royal Highnesses will visit historic Mayan sites and celebrate the rich culture of the Garifuna community as well as exploring the country’s biodiversity.

The Duke and Duchess will then travel to Jamaica where their visit will include engaging with the Jamaican Defence Force and celebrating the seminal legacy of Bob Marley and other ground-breaking Jamaican musicians alongside some of tomorrow’s stars.

The Duke and Duchess’ visit will end in The Bahamas where they will spend time with communities across a number of islands and experience a world famous junkanoo parade. The response to COVID-19 will also feature in The Duke and Duchess’ programme.

Their Royal Highnesses are keen to understand more about the impact that the pandemic has had across the Caribbean, and how communities have pulled together to respond to the challenges they have faced. Throughout their visit, The Duke and Duchess will take the opportunity to commemorate Her Majesty’s Platinum Jubilee.

Their programme will also touch on a number of themes that are close to Their Royal Highnesses’ hearts and a key focus of their work with The Royal Foundation, including The Earthshot Prize, mental health and the importance of early childhood to lifelong outcomes.

As with previous overseas visits, The Duke and Duchess have asked that this tour allows them to meet as many local people as possible. Over the course of their time in the Caribbean, Their Royal Highnesses will meet a wide variety of groups, including children, young people and families, frontline workers, service personnel, leaders from government, business and the charity sector as well as inspiring conservationists, and the early years workforce.

Their Royal Highnesses are very much looking forward to the visit, which will be their first joint official overseas tour since the onset of COVID-19 in 2020.

World Bank Provides USD$25 Million for Agriculture

The World Bank’s Board of Executive Directors has approved financing of twenty-five million Belize dollars for the Belize Climate Resilient and Sustainable Agriculture Project. According to a release from the World Bank, the project will provide seven thousand farmers with weather data and technical information to help improve yields for crops and livestock and facilitate better planning. It also provides grants to over three thousand, seven hundred farmers so they can adopt climate-smart practices. The matching grant scheme, combined with technical support, is designed to leverage eighteen million U.S. dollars in private financing for climate-smart agricultural technology. Thirty percent of grants will be targeted to women farmers.

Costa Rica Ranks as the No.1 Retirement Destination in 2021

By Laura Alvarado
Costa Rica NewsPress Release

Costa Rica took the top spot this year in InternationalLiving.com’s 2021 Annual Global Retirement Index. which scores the world´s top 25 retirement destinations across 13 categories, including, including cost of living, governance, retiree benefits, climate and healthcare, among many other aspects that are important for those looking for a place to retire. It also topped the healthcare category.

“Earning the nickname “Switzerland of Central America,” this peace-loving democracy attracts millions of visitors and foreign residents throughout the year with its tropical climate; lower cost of living; friendly locals; affordable medical care; vast real estate options; and, of course, its natural beauty.

“Retirees that have moved to Costa Rica will tell you they are living a much healthier lifestyle than before they moved,” says Kathleen Evans, International Living Costa Rica Correspondent.

“Perhaps it’s the beautiful weather that beckons you to enjoy the outdoors. Or maybe it’s the massive selection of fresh, locally grown fruits and vegetables at your fingertips. Or it could be the strong local communities that make it really easy to forge new friendships.

“One of the things you hear often from expats is how warm and welcoming the ticos (Costa Ricans) are,” Evans says. “They are wonderful people, eager to share the magic of their culture, food, and traditions with foreigners. You will also find engaging international communities of expats who will help you through the process of acclimation.”

That’s another bonus: expats needn’t be pioneers in Costa Rica. There are well-established expat communities throughout the country. Things are “set up” so to speak, when it comes to shipping household goods, using the healthcare system, buying property, and more. And by following this well-trodden path, the transition to a new life can be much easier.

Costa Rica is a country where the older generation is treated with respect by custom. And things like head-of-line privileges at banks and government offices are inscribed in the law. But there is also a government program available to those age 65 or older that gives discounts on a variety of products and services

“Being ‘Viejo’ or old is a rite of passage, a badge of honor in Costa Rica,” says Evans. “And you will see simple things like seniors going to the front of the line—any line, enjoying special early shopping hours, free bus rides, and the Ciudando de Oro or Golden Citizen card.”

Cost of living, of course, depends on lifestyle. But in many ways Costa Rica is much more affordable than the U.S. and Canada.

“A couple can live comfortably, but not necessarily extravagantly, here for around $2,000 a month,” Evans says. “This includes renting a two-bedroom home with North American amenities, air conditioning, plus groceries, entertainment, transportation, and healthcare. If your monthly budget is closer to $2,500 to $3,000, you will find a relaxed lifestyle with every comfort you require.”

“The residency process in Costa Rica is also very straightforward,” Evans says. “For expats, there are three initial options. Choosing any of these programs, allows you to file jointly, as well as claim any dependent children under the age of 18 (up to 25-years old if enrolled in a university).”

The Pensionado option requires proof of $1,000 per month minimum income from a life-long pension or social security.

The Rentista program requires proof of $2,500 per month income for at least two years, guaranteed by a banking institution. Or you can deposit US$60,000 in an approved Costa Rican bank.

The third option is the Investment program. The applicant needs to prove they have invested a minimum of $200,000 in a business or property here in Costa Rica.

After three years of one of these statuses, one can apply for permanent residency (those married to a Costa Rican or have a child born in Costa Rica can apply to this category immediately).

With 97 points, Costa Rica is the highest-ranking country in the healthcare category of the Annual Global Retirement Index 2021.

“One of the reasons Costa Rica is so appealing for retirees, and expats in general, is because of the low cost, excellent healthcare options,” says Evans.

Costa Rica provides some of the best healthcare options in Latin America for its citizens and residents. The World Health Organization (WHO) places Costa Rica in the top rankings for life expectancy and the United Nations (UN) ranks the country’s public healthcare system in the top 20 worldwide.

The country has three JCI certified medical centers in the nation’s capital, San José. This is the highest worldwide accreditation which medical centers can receive based on a scale of various criteria.

The country operates in public and private systems with both regularly experiencing upgrades in equipment, new clinics, and improved training. Many of the country’s doctors work in both sectors, have studied in North America or Europe, and most in the private field speak English.

Pura Vida is a common Costa Rican phrase. Although it translates to “pure life,” this definition merely scratches the surface of a phrase deeply woven into Costa Rican culture, and used to convey anything from “hello” and “goodbye,” to “great news,” “cheers!” and countless declarations in between.

Why Costa Rica is a Strategic Destination for Supply Chain Rethinking

By Laura Alvarado
Costa Rica NewsPress Release

The COVID-19 pandemic has promoted to rethink different processes in the “new reality”. Transcending sectors, the novel coronavirus has touched on – and fueled – one of the key points in innovation: the adaption to change, because those who do not will suffer even greater consequences.

Industries that have led the charge –the process to rethink and analyze adjustments, given the situation generated by the pandemic and its impact on countries that produce raw materials, assemble products or provide services related to these– including logistical operations, supply chain management, and productive processes.

During a webinar organized by the Costa Rican Investment Promotion Agency (CINDE) in early July, the former Minister of Foreign Trade in Costa Rica, Anabel González, pointed out, “The increase in China’s costs, conflicts in international trade, the strengthening of new technologies, and the trade war between China and the United States were already driving change in the global supply chain.”

In addition, González pointed to other disruptions caused by the pandemic, such as:

1.A forced decrease in production, due to restrictive measures.

2.A deep drop in demand, in sectors such as automotive and textiles; an opposite effect has been observed in other fields, including increased demand in personal protective equipment.

3.Disruptions in air, sea, and land transportation.

4.An unprecedented uncertainty in business and commerce.

According to former Minister González, these challenges drove rethinking processes in multinational companies, with a view to greater stability and protection against the implicit vulnerabilities in extensive supply chains and production networks highly concentrated within a specific region or country. Hence, reshoring – in other words, moving operations back to their country of origin – rose as an alternative to shortening supply chains and/or to diversify local production.

So, what opportunities exist for multinational companies in countries like Costa Rica? Former Minister González reiterated that one of the country’s strengths is to offer a robust value proposition, comprised of its highly trained human talent, strategic location, excellent business climate, preferential access to primary markets, and quality of infrastructure.

Additionally, the country offers a key base in our era of greater environmental awareness and the development of human talent in answer to industry 4.0 trends. This is known as the triple bottom line: People, Planet, and Prosperity. These elements point to talent, development, and sustainability as key aspects for the nation’s growth – and for the companies that maintain a presence here.

Costa Rica has also proven itself capable of sustaining business continuity, despite the challenges brought about by the pandemic: During this time, 98% of companies in the services sector have completely converted to a work-from-home model. Likewise, 100% of manufacturing and life sciences companies have demonstrated no disruption and continue to comply with all corresponding sanitary measures.

The Advantages of Costa Rica Becoming a OECD Member

By Laura Alvarado
Costa Rica NewsPress Release

“We are what we repeatedly do. Excellence, then, is not an act, but a habit.” Aristotle’s words are an example of a beacon that Costa Rica has followed for a long time: work in pursuit of excellence. A sample of that was a major milestone in the history of Costa Rica’s foreign direct investment (FDI) when INTEL set up its operations in the country in 1996. This opened a broad successful path reflected today on the presence of more than 320 multinational companies in Costa Rica.

This event joins another milestone that Costa Rica proposed more than eight years ago: be part of a group with the highest standards, the Organization for Economic Co-operation and Development (OECD). The process itself took over five years and the approval occurred on Friday, May 15, 2020.

FDI is a winner in this process. Belonging to the OECD is a clear acknowledgment that the country meets the most demanding world standards and demonstrates to domestic and international investors that its policies follow the best practices in areas such as corporate governance, investment, competition, financial markets, and public administration.

As a member of the OECD, Costa Rica reinforces its FDI seal of quality based on four main reasons:

1.Ongoing evaluation: Costa Rica’s economic data is monitored by the OECD, which provides trustworthy, comparable statistics for setting objectives and progressing.

2.Development reports: Costa Rica will have specific reports on hand that can be requested to the OCDE, which is also a forum for discussion and analysis of different issues.

3.Impartial advice: The country will have evidence-based advice from the OECD.

4.Greater trust: Meeting public policy standards as a member of the OECD, reinforces a greater trust from external investors.

The OECD declaration about international investment and multinational companies provides an open, transparent setting for international investment and feeds the positive input that multinational companies are able to achieve progress economically and socially. The 47 adherents to the declaration represent 82% of the outgoing global FDI flow: 62% of the incoming foreign direct investment flow: 73% of the entering stock and 87% of the outgoing stock.

Furthermore, as part of the evaluation process for joining the OECD, Costa Rica had a series of intermittent reforms introduced to the free trade zone program. Therefore, the fact that this incentive system for FDI meets the international criteria and standards applicable to international transparency and taxation was ratified.

“The OECD’s invitation to Costa Rica reinforces the country’s free zone regime firmness for investing in the country. Its internationally acknowledged seal of excellence continues to be outstanding so any investor may be sure that, by investing in Costa Rica, the incentives provided under the standards are 100% in line with the highest international requirements and good practices,” explained Jorge Sequeira, Managing Director of CINDE.

He added: “CINDE celebrates that Costa Rica is OECD’s 38th member. This reinforces the country’s guiding star as a destination-oriented toward human talent, innovation, and sustainability.”

Joining the OECD also included a series of internal reforms that leveled the playing field based on the organization’s standards. The approved changes include opening more investment possibilities such as: setting up branches to operate under the same conditions as the banks that were already established in the country. Also, major steps were taken continuously to facilitate the establishment of companies, as well as on the regulatory improvement and to ensure that the Free Trade Zone regime meets all of the regulations requested by the OECD without breaching any restriction.

Lastly, and to endow the country even more as it relates to investment, CINDE, along with the Ministry of Foreign Trade and the Export Promotion Agency of Costa Rica, are honing their new strategy for promoting the attraction of investors based on what we call the triple propeller: people, planet, and prosperity surrounded by a world scene where companies will bet even more on strategies involving reshoring and nearshoring, which provides Costa Rica, even more, a proven advantage over its competitors by complying with the international OECD standards.

President Abinader insists there will not be impunity for corruption in his government

Dolores Vicioso

President Luis Abinader continues to stress his commitment to zero impunity for corruption during his term in office. He has said that while he cannot guarantee there will not be corruption, he commits there will not be impunity. The President was referring to a recent scandal that could involve upwards of RD$100 million in cloned social welfare program cards, as estimated by Digna Reynoso, director of the Administradora de Subsidios Sociales (Adess).

President Abinader said that there will be consequences for those who steal from the treasury in his government. “You can be sure that (…) whoever it is, in that and in any case, whoever steals a cent from this government will go to jail. Listen well: to jail.” The President commented that the Superate corruption case is “worse” because it is a theft from a program that is destined to benefit the most needy.

Last week, six persons were arraigned for complicity in cloning at least 30,000 Superate welfare program cards in a fraud carried out 18 to 20 February 2022. The arrest is said to be just the tip of the iceberg in the fraud case.

Grupo Puntacana builds the main air, maritime logistics center and free zone park

Grupo Punta Cana gave the first step for the construction of the main air, sea, and land logistics center, a free zone park, and the expansion of Terminal B of the Punta Cana International Airport.

“True to the commitment to work for the economic and social progress of the Dominican Republic, through the Punta Cana Free Trade Zone and expansion of terminal B of the Punta Cana International Airport, we present two initiatives that project the vision of the future with which We are committed to the development of the country. We continue to imagine more”, said Frank Elías Rainieri, president and CEO of Grupo Puntacana.

The Punta Cana Free Trade Zone (PCFTZ), of the Puntacana Group, will have an estimated investment of US$200 million and will house cargo logistics operations and offices for the development of the Punta Cana Hub aimed at innovation and development of fintech companies. According to official data, the work will have an area of ​​546,617.45 square meters of land.

The project will contribute to the economic growth of the area, creating more than 10,000 jobs and positioning Punta Cana and the Dominican Republic as leaders in international trade and foreign investment.

Rainieri said that the expansion of terminal B of the Punta Cana International Airport will be done with an investment of US $ 80,000,000 with the capacity to mobilize three million passengers. He added that this project will have an area of ​​about 25,000 square meters and will have seven gates, as well as seven air bridges. He pointed out that the completion of the construction is estimated for November of this year 2022 and that the expansion is already in the hands of local architects and engineers.

The tourism leader explained that Terminal B will be ready to receive the immigration and customs pre-check service for the United States “which we are sure will be approved due to the competitive advantages it offers the Dominican Republic as a tourist and investment destination.” “Today I say it with much more certainty and security. Today is the best time to invest in the Dominican Republic”, said Dominican President Luis Abinader said at the activity. He added that the country is open to investment, to job creation, to improving each of the services and to promoting each of the sectors to work together.

Driving to Bitcoin City:
El Salvador drafts 20 bills for Bitcoin bonds

In 2021, Latin American nation El Salvador, led by President Nayib Bukele, became the first country in the world to recognise Bitcoin as a legal tender. The bills will now aid El Salvador’s government to establish the legal and financial framework for Volcano Bonds, a $1 billion Bitcoin bond issue.

The country's administration is creating 20 bills that would serve as a legal framework for them to move forward with plans to issue Bitcoin bonds. According to the statements released by the Treasury Secretary, the laws would address regulations for issuing securities in cryptocurrency to assure the viability of Bitcoin bonds, which were suggested in November 2021.

Edul Patel, CEO and Co-founder, Mudrex, said that the government is planning to pass legislative bills, which would act as a legal framework providing legal certainty, and driving investors to subscribe to the bitcoin bonds. Apart from the Bitcoin bonds, the government of El Salvador has said that Bitcoin bonds will fund the creation of the proposed Bitcoin City. There are a lot of investors who want to get exposure to Bitcoin. Bitcoin bonds backed by a country are a much safer alternative to direct investment in Bitcoin, said Amit Nayak, CEO and Co-founder of Sahicoin.

According to the plans proposed by President Bukele the Bitcoin City will provide 'digital and technology education, geothermal power for the entire city, and effective and reliable public transportation. The president has pledged to channelise $1 billion raised from the bond offering will be used to fund the Bitcoin City plan. These bonds come with a coupon rate of 6.5 per cent.

With Bitcoin City, El Salvador plans to usher in a new era of digital education, sustainable energy reserves, and green mining. El Salvador has announced this project, a few weeks ago, in the later end of 2021. Market experts are calling the Bitcoin City project as a visionary step by the government of El Salvador which will be a paradigm shift towards the crypto regulations and legal framework.

Patel of Mudex said that it will act as a benchmark for other nations planning to implement regulatory guidelines around cryptocurrencies. The timeline of setting up this fabled city is still under the wraps but the crypto space will transform into something more comprehensive, the experts say.

Echoing the similar views, Nayak said that he will be keenly watching how the plan will roll out. "Announcement of Bitcoin city will certainly attract more blockchain innovators, this could be a silicon valley of future making," he adds.

Explore Guatemala, the megadiverse country
with 37 volcanoes

Antigua, Guatemala - Copyright Canva
By Nichola Daunton • Updated: 02/02/2022

One of the world’s nineteen megadiverse countries, Guatemala is so rich in natural wonders, even its currency – the Quetzal – is named after a tropical bird.

With so much nature to experience, including 37 volcanoes, 5 lakes, and 360 microclimates, the nation is perfect for outdoorsy types with a sense of adventure. Tucked between Mexico, Belize, Honduras and El Salvador, the country is the same size as the US state of Tennessee but with Caribbean and Pacific coastlines, it manages to pack a lot into its borders.

Guatemala’s name originates from the Nahuatl word ‘Quauhtlemallan’ meaning ‘place of many trees’ and it’s also a land of many languages too. Though Spain is the main language there are 22 Mayan languages spoken here, as well as Xinca and Garifuna.

“We have the heart of the Mayan world in the north part of the country and also you can explore nature and all the archaeological sites in Guatemala," says Mynor Arturo Cordón Lemus, General Director Guatemala Tourism Board.

Mr Lemus isn't shy about the healing power of a trip to his country, saying, "For the past two years, we have been having a lot of problems with the pandemic and I think the best way to get out of it is by visiting Guatemala.”

To help you get to grips with this multifaceted country, we’ve chosen some of our favourite scenic spots.

Honduras swears in Xiomara Castro as first female president
Castro takes office amid myriad challenges, including an ongoing dispute About who will lead the newly elected Congress.

Xiomara Castro has said she plans to formally invite the United Nations to set up an anti-corruption mission in Honduras [Luis Acosta/AFP]

Published On 27 Jan 202227 Jan 2022

Xiomara Castro has been sworn in as Honduras’ first female president, taking office amid growing uncertainty about whether she will be able to govern in the face of an unfolding legislative crisis and other challenges.

Castro, the 62-year-old leader of the left-wing Libre Party, won the November 28 election by a healthy margin, but recent political manoeuvring in the run-up to her inauguration on Thursday has distracted from what observers hoped would be a new beginning in the troubled nation. In her inauguration speech, Castro promised to tackle the corruption and inequality that she said ran rampant under the previous administration, and address poverty – all of which, she added, have been fuelling the massive flight of Hondurans north.

“The economic catastrophe that I’m inheriting is unparalleled in the history of our country,” Castro said, denouncing a seven-fold jump in debt under her two conservative predecessors. “My government will not continue the maelstrom of looting that has condemned generations of young people to pay the debt they incurred behind their back,” she added to thunderous applause.

Castro is taking the reins as Honduras has been engulfed by a dispute about who will lead the newly elected Congress. Two congressional leadership teams have been selected — neither legitimately, according to experts — and their standoff has threatened legislative paralysis at a time that Castro desperately needed to quickly get to work addressing systemic problems. Honduras faces high unemployment, persistent violence, corruption, as well as troubled healthcare and educational systems – challenges that Castro had sworn to tackle.

But elected lawmakers from Castro’s own Libre Party backed one of their own to be the new legislative body’s president on Friday rather than support Castro’s choice, which had been agreed with her vice president to win his party’s support. Neither group backed down, leading to surreal simultaneous legislative sessions on Tuesday.

Cabinet picks

Meanwhile, Castro, who is taking over from right-wing President Juan Orlando Hernandez, has said she plans to formally invite the United Nations to set up an anti-corruption mission in Honduras. “Honduras has been a very difficult partner for the United States, especially during the administration of Juan Orlando Hernandez for a number of reasons, including the consistent swirl of illegal activity around him and his family,” Jason Marczak, senior director of the Adrienne Arsht Latin America Center at the Atlantic Council told The Associated Press news agency.

Hernandez has been accused in US courts of corruption and links to drug traffickers, but has repeatedly denied the allegations. A US judge last year sentenced his brother to life in prison, plus 30 years, for drug trafficking. Castro’s November election victory came on her third bid for the presidency. She was previously first lady during the presidency of her husband, Manuel Zelaya, which was cut short by a military coup in 2009.

Just hours before her inauguration, Castro tweeted her first cabinet picks, which included two women out of 16 announced positions.

Her son, Hector Zelaya, will be her private secretary and Manuel Zelaya’s nephew, Jose Manuel Zelaya, is her choice for defence secretary. Ramon Sabillon, a former national police chief who recently returned to Honduras after living in exile in the US for years, was her pick for security minister.

Women on the Frontlines of Climate Change: Rosa Gonzales

By TechnoServe

Women comprise 70% of the world's low-income people, making them especially vulnerable to climate change. But with the right support, they can be a tremendous force for protecting their livelihoods, their families, and the environment. The story.

On 30-year-old Rosa Gonzales’s small farm in Matapalo, Nicaragua, coffee grows under the shade of towering banana trees. Rosa didn’t foresee a career in banana farming. She was raised in a coffee-producing family in Madriz, Nicaragua, and eventually inherited 1.5 hectares of land from her father.

“With much effort, I converted the land into my coffee plot,” Rosa recalls. “The variety of coffee that I had did not demand shade, so I did not diversify my crops.” But as temperatures increased over the years, her coffee began to wither, and eventually, she was forced to plant a canopy of banana trees to provide shade.

Challenges on the Farm

Rosa Gonzales carries a bunch of bananas in Matapalo, Nicaragua

Rosa is not the only farmer who is feeling the effects of climate change. In recent years, farmers throughout Central America have experienced shifting weather patterns that have challenged their traditional farming practices. Temperatures have increased, and rainfall has become more scarce, with increased drought punctuated by extreme weather events.

In November, Nicaragua was struck by back-to-back hurricanes — part of a historic hurricane season in Central America. These factors combine to make it more difficult for smallholder farmers to earn a living and support their families.

As a single parent, Rosa struggled to support her 9-year-old son and nephew solely with income from the farm. Eventually, she decided she could earn additional money by picking up a job as a seamstress in town, adding long commutes to her already full days.

“My income serves to guarantee the food and care of the family,” Rosa shares. “I don’t have my own house. We live in my mother’s adobe house without a floor, without basic services, and with only the necessary things to live.”

New Opportunities Through Banana Cultivation

When Rosa heard about TechnoServe’s Smallholder Market Access Program, funded by the Walmart Foundation, she was intrigued. The program aims to increase smallholder farmers’ incomes by at least 20% by improving their production and helping them integrate into more inclusive and profitable market systems.

At the time, Rosa would occasionally sell her bananas by the branch when informal intermediaries passed through her community. Still, she did not see her banana production as a business opportunity: “[Before], I worried that I didn’t have a market, and the prices were low. [I also worried about] the theft of bananas because I didn’t check in on the crop.”

Across Central America, smallholder farmers in fresh produce supply chains encounter multiple production- and market-related challenges that prevent them from achieving sustainable livelihoods through their farms. Suboptimal agronomic practices and unpredictable weather patterns limit yields on the farm, while high production costs, price volatility, and indirect or informal market connections degrade farmers’ profit margins.

Since joining the program, Rosa has learned how to implement good agricultural practices on her farm. “We are receiving training to increase productivity through proper management,” she explains. “I have learned how to select and disinfect the seed and the correct way to plant in the field. Previously, I had planted bananas in a messy way, but this year I started planting in an orderly way.”

Rosa Gonzales with her son, nephew, and mother on their small farm in Nicaragua.

Helping Farmers Adapt to a Changing Climate

The program also teaches producers how to implement climate-smart practices on their farms, reducing the impacts of a changing climate while still increasing the quality and quantity of their harvests.

Climate-smart agricultural training varies by crop and region, but farmers like Rosa often learn the following techniques:

Integrated management practices to prevent, monitor, and combat pests;

Soil and water management techniques, such as cover-cropping and crop rotation, to retain moisture and mitigate erosion and disease; and

Post-harvest practices to maintain high-quality levels for export markets.

By implementing these practices and connecting with markets that provide greater stability and returns, producers will not only weather the ups and downs of these volatile conditions, but will also improve outcomes for their farms and their families.

“TechnoServe awakened our interest in bananas,” Rosa explains. “It’s a good option to provide shade for my coffee, and through the program, we’ve realized it’s also a commercial product with a lot of market potential. It can help us to increase our incomes throughout the year since it can be harvested year-round.”

Ex-post evaluation of the implementation of part IV of the Association Agreement (Trade Pillar) between the EU and its Member States and Central America

Draft Interim Report

February 2022

INTRODUCTION

EVALUATION CONTEXT, SCOPE AND OBJECTIVES

Since 20133 , the European Union (EU) has been implementing Part IV of the Association Agreement (i.e., the Trade Pillar) with six countries of Central America, i.e., Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. The objectives of the Trade Pillar (hereinafter “the EU-CA FTA” or “the Agreement”) are to:

• gradually open markets on both sides
• increase the stability and predictability of the trade and investment environment
• create benefits for consumers
• foster sustainable development
• support regional economic integration in Central America.

The EU-CA FTA is also one of the first EU “new generation” trade agreements, characterised by its comprehensive scope that covers, in addition to liberalisation of trade in goods and services, investment, public procurement, competition, intellectual property rights, and trade and sustainable development.

After seven years of implementation, this ex-post evaluation is undertaken with the objective of analysing the economic, social, environmental, and human rights (including labour rights)4 impacts of the EU-CA FTA and, ultimately, of determining whether there is a need to improve its implementation.

To support the European Commission’s own evaluation of the Agreement, the Directorate-General (DG) for Trade has awarded a contract for the “Ex-post evaluation of the implementation of part IV of the Association Agreement (Trade Pillar) between the EU and its Member States and Central America” to a consortium led by BKP Economic Advisors (BKP). The work started in January 2021 and will continue until mid-2022.

ECONOMIC ANALYSIS

Overview of the EU-Central America trade flows

EU imports

Collectively, EU imports from the CA6 have risen by 31% from € 5.1 billion in 2010 to € 6.7 billion in 2019. This can in part be attributed to the EU-CA FTA, with EU imports of fruits & vegetables and sugar being the main contributors to this increase.

EU imports from Costa Rica remained stable at around € 3.0 billion, whilst fluctuating slightly throughout the years. Similarly, also imports from El Salvador remained stable at € 0.2 billion. Yet EU imports originating from Guatemala almost doubled from € 0.5 billion prior to 2013 to about € 1.0 billion later.

This increase comes from increased imports in vegetable oils (e.g., palm oil - €150 million), edible fruits (e.g., bananas, fresh fruits - €47 million) and rums and spirits (€16 million).

One of the drivers for these increases has been the tariff liberalisation agreed in the EU-CA FTA.

On the other hand, imports from Honduras see a decline to € 0.6 billion in 2013 but increase again by over 50% to EU imports of annually € 1.1 billion after the Agreement. For Nicaragua no major change can be seen through the years as imports remain around € 0.2 billion, yet imports see a slight increase in the years 2015-2017.

EU imports from Panama spike in 2013 to € 0.7 billion with a fall in the consecutive year to € 0.5 billion but from then on increasing to € 0.8 billion in 2019. This volatility in imports from Panama are a combination of increases in imports of bananas (€ 63mln) and decrease in imports of vessels (€-89mln). Especially the latter product can affect trade in a single year significantly.

EU exports

Aggregate EU exports rise by 40% from € 5.3 billion in 2010 to € 7.4 billion in 2019  mainly due to increases in exports of machinery, cars, medicines, and medical equipment. These exports are driven by two factors.

First, the EU-CA FTA effectively liberalised tariffs for EU exports (while the CA partner countries already enjoyed Ex post evaluation of the implementation of part IV of the Association Agreement (Trade Pillar) between the EU and its Member States and Central America – draft Interim Report 8 GSP+ and GSP preferential access).

Second because non-tariff measures (e.g., customs procedures, TBT regulations) decreased, facilitating trade.

While EU total trade has increased, the strong increase in EU exports to the CA6 has been facilitated by the EU-CA FTA. But trends per country vary. EU exports to Costa Rica show an increase of 50% with an average of € 1.0 billion before 2013 and have since grown to € 1.5 billion, mainly due to rises in medicines and medical equipment and cars. Similarly, EU exports to El Salvador increased from € 0.6 billion prior to the provisional application of the Agreement to a peak of € 1.0 billion in 2018. Additionally, exports to Guatemala rose also by 50% from € 0.9 billion in 2010, showing consecutive increases year by year, except 2016, to € 1.3 billion in 2019. EU exports to Honduras see a decline in 2013, in line with the decrease observed in imports, to € 0.4 billion then an increase to € 0.6 billion in the following years. Exports to Nicaragua remain stable over time but see a slight increase between 2015 and 2017 of 20%, similar to imports. This is mainly due to a significant drop in exports of electrical generators. Exports to Panama were peaking in 2013, at € 2.9 billion, yet declined until 2016 to € 2.1 billion, followed by a strong increase to € 2.8 billion in the 2017-2019 period.

The EU and the Central American region concluded a new Association Agreement, signed on 29 June 2012. The Association Agreement relies on three complementary and equally important pillars, namely political dialogue, cooperation, and trade which reinforce each other and their effects. These are the right tools to support economic growth, democracy and political stability in Central America.

The trade pillar of the Association Agreement has been provisionally applied since 1st August 2013 with Honduras, Nicaragua and Panama, since 1st October 2013 with Costa Rica and El Salvador, and since 1 December with Guatemala.

Trade picture

According to EUROSTAT, the trade flow between the EU and Central America did amount to € 10,7 billion in 2020.The EU's trade balance with Central America presents a trade deficit amounted to € 0.9 billion in 2019 (the year before there was a surplus of € 0.4 billion). Bilateral trade with Central America has been particularly affected by the Covid Pandemic in 2020.

EU exports to Central America have decreased by -21,7% in 2020. This decrease is mainly driven by the poor performance in exports of Mineral oil, Machinery and Equipment, Chemical, which decreased by 16,8%, 13,9% and 35,9% respectively.

In comparison ,main EU imports from Central America by HS section have been resilient and decreased only by -0,4%. EU imports are, by order of importance: Vegetable products; Optical and photographic instruments, etc., Foodstuffs, beverages, tobacco; Animal or vegetable fats and oils.

The main EU exports to Central America by HS section are, by order of importance: Products of the chemical or allied industries, Machinery and appliances, Transport equipment, , Foodstuffs, beverages, tobacco.

The EU and Central America are exchanging annually their respective statistics to elaborate a joint analysis, as given the importance of the Panamanian Trade Free Zone (the second in the world),

Central America, the next sweet spot in LatAm

With an online market still in its infancy, and a young and digital savvy population eager to buy online, Central America will have some of the highest growth rates in Latin America’s e-commerce in 2021 – and should be the next big thing in the region.

While LatAm is expected to expand 37% in e-commerce this year, some Central American countries will outpace this mark reaching up to 50% growth, according to forecasts from AMI (Americas Market Intelligence). The region has the perfect foundation for the exponential growth of e-commerce: high connectivity and digitization, especially via mobile; a young population (average age of 25 years) eager to consume digital products; but also the market is still in its early stages, with few digital payment options and online stores.

“It is a barely explored region, without many players, and where consumers are eager to buy products and services from global merchants, such as streaming, SaaS, entertainment, games”, points out André Allain, Vice President of Growth at EBANX.

Until now, the region’s e-commerce volume was mostly cross-border, with very few online consumers buying mainly internationally. But recently, countries such as Guatemala, with over 16 million inhabitants and a growing middle class, are experiencing an escalation in online retail, with a higher share of domestic volume. “If you go back to before the pandemic, e-commerce in Central America was comprised of a very small deep-pocketed segment of affluent consumers in these countries: it was the 2% of the population who were buying almost exclusively internationally – because they weren’t able to source many products domestically”, says John Price, managing director at AMI.

Now, Central America, as other hypergrowth and smaller markets in Latin America, is in the midst of a change: the pandemic forced domestic retailers to pivot to e-commerce, driving online growth – but also opening opportunities for global players and companies specialized in logistics, payments and technology to expand to the region and give access to the online world.

Central America’s e-commerce is expected to grow 35% per year until 2025 – a market as big as Chile, and with higher growth rates

A full block One of the keys to unlock Central America’s full potential is to look at the region as a block, according to Allain. When combined, the e-commerce market in the five countries where EBANX is currently operating (Costa Rica, Dominican Republic, El Salvador, Guatemala, and Panama) adds up to almost 15 Billion USD, and is expected to grow 35% for the next five years – a market as big as Chile (and with higher growth rates). Price, from AMI, highlights that Central America also brings to global companies the ability to cluster. “You can build economies of scale in Central America. For instance, with a marketplace where you keep inventory in El Salvador, you can truck goods to other countries from there – in contrast to what would happen in the Caribbean islands, for example.” At the same time, it is important to take regional differences into account. Just like in the whole Latin America, countries in Central America are in different stages of e-commerce maturity. In Panama or the Dominican Republic, for example, it is easier to buy imported goods and the average income is higher than in other countries. In Costa Rica, e-commerce penetration is already at 69%, with a higher spending per capita and a more developed online market. Guatemala, on the other hand, has a larger underclass who are now starting to buy online, bringing the domestic share to 83%. E-commerce penetration is still at low levels, just like in El Salvador, and there is a lot to do in terms of giving access to consumers in these two countries. A legacy to be renewed When it comes to business verticals, travel represented around half of Central America’s e-commerce before the pandemic – and it has now dropped to as little as 3% in some countries. Despite that, the industry is still quite strong for the region, and should recover in the short term. At the same time, demand for digital products and services is growing strongly, opening the way for new business opportunities. For Allain, from EBANX, global and local companies have a one-time-only opportunity to give access to the region. “In terms of its digital market, Central America has a challenge on legacy payment processes. Through payment players, these processes can be simplified to provide the right value proposition to merchants and consumers.”

CEPAL / ECLAC - Feb. 28: 'Costa Rica will host the fifth Meeting of the Forum of the Countries of Latin America and Caribbean on Sustainable Development.' Read more here: https://cepal.org/en/news/cost...

SICA - Feb. 23: 'Belize will host a meeting between CARICOM and Central American countries.' Read more here (in Spanish): https://www.sica.int/noticias/...

BCRD - Feb. 18: 'Monetary policy rates in the DR and Latin American countries.' See here (in Spanish): https://www.bancentral.gov.do/...

BCIE / CABEI - Feb. 17: 'In London: CABEI opens a space for analysis for investors in virtual forum.' Read more here: https://www.bcie.org/en/news-a...

Focus Economics – Feb. 15: 'Economic Snapshot for Central America.' See: https://www.focus-economics.co...

El Economista – Feb. 14. 'Central American companies participate in EU Road Show.' https://www.eleconomista.net/a...

EU-CA - Feb.: The Interim Report of the evaluation of the Trade Agreement between the European Union and Central America has been published. Read up on it here: https://central-america.fta-ev...

Belize

BBC News - Mar. 01: 'Newly elected Honduras government to ban open-pit mining.' Read more here: https://www.bbc.com/news/world...

Love FM - Feb. 27: 'The IMF Says Belize's Economic system is Rebounding and Suggest GOB Raises GST.' Read more here: https://biz.blogdady.com/the-i...

CARICOM - Feb. 26: 'Caribbean Community (CARICOM) Heads of Government, under the Chairmanship of Prime Minister Mr. John Antonio Briceño of Belize, will deliberate on several major issues, including the Region’s post-pandemic economic recovery, when they gather on San Pedro in Belize for their Thirty-Third Inter-Sessional Meeting on 1-2 March 2022. Read more here: https://caricom.org/caricom-he...

Escape Artist - Feb. 15: 'Understanding The Differences Between Offshore Trusts And Offshore Foundations.' Read more here: https://www.escapeartist.com/b...; see also in Finextra - Feb. 14: 'Offshore Real Estate Investment Considerations for 2022.' https://www.finextra.com/blogp...

Focus Economics – Feb. 15: Belize Economic Outlook.’ See: https://www.focus-economics.co...

Costa Rica:

Forbes CentroAmérica – Feb. 27: 'President of Costa Rica will attend the summit of Central America and the Caribbean. Carlos Alvarado will address the issue of adequate financing mechanisms to deal with adaptation and mitigation due to the effects of climate change.' Read more here (in Spanish): https://forbescentroamerica.co...

BizLatin Hub - Feb. 24: 'Employment Law in Costa Rica: a Guide.' Read more here: https://www.bizlatinhub.com/em...

Focus Economics – Feb. 15: ‘Costa Rica Economic Outlook.’ See: https://www.focus-economics.co...

BCIE / CABEI - Jan. 31: 'Costa Rica ventures into offshore wind energy studies with support from CABEI (and the Republic of Korea). Read more here: https://www.bcie.org/en/news-a...

Grupo efe - Jan.: 'Costa Rica has had economic growth for 2021 at 7.6% and projects 3.9% for 2022: Central Bank.' Read more here: https://grupoconsultorefe.com/...

Dominican Republic:

El Diario Libre – Mar. 01: ‘Dominican tourism has the second best month of February in its history.’ Read more here (in Spanish): https://www.diariolibre.com/ec...

Focus Economics – Feb. 15: ‘Dominican Republic.’ See: https://www.focus-economics.co...

BCRD - Feb. 11: 'Central Bank and the Superintendencies of Banks, the Securities Market, Pension and Insurance, announce the launch of the Hub of Financial Innovation of the Dominican Republic A space for entrepreneurs with new ideas applicable in the Dominican financial system will find guidance, dialogue and personalized assistance by these institutions.' Read more here (in Spanish): https://www.bancentral.gov.do/...

Travel + Leisure - Feb. 06: "The capital city of the Dominican Republic is included in the list of the “10 Best Places to Retire Around the World” published by Travel & Leisure. People usually mostly complain about the traffic jams in Greater Santo Domingo, but, for those who can avoid traffic jam hours, the city is an interesting place to retire. The capital city has good health care, lots of cultural activities and excellent restaurants. The centrally-located city can serve as base for travel all around the Dominican Republic. Moreover, the Travel & Leisure listing sees the entire Dominican Republic as a good place to retire. In its description that comes on the recommendation, Travel & Leisure states: “Most expats live in the cities of Santo Domingo and Santiago, and there are beautiful tourist towns like Punta Cana, Puerto Plata…." Other places chosen by Travel & Leisure in the order listed are: Panama, Portugal, Dominican Republic, Spain, Costa Rica, Malta, Ecuador, Mexico, Colombia, Florida, USA. Read more here: https://www.travelandleisure.c...

BCIE / CABEI - Feb. 03: 'Studies begin for the development of the train between Santiago de los Caballeros and Santo Domingo in the Dominican Republic.' Read more here: https://www.bcie.org/en/news-a...

El Salvador

BizLatin Hub - Feb. 22: 'El Salvador Reforms Will Allow Citizenship for Investment.' Read more here: https://www.bizlatinhub.com/el...

Forbes CentroAmérica – Feb. 21: 'El Salvador continues to strengthen its exports to the EU María Luisa Hayem said that "The European Union becomes the sixth position among the main destinations of Salvadoran exports for the year 2021.".' Read more here (in Spanish): https://forbescentroamerica.co...

EU Delegation in El Salvador – Feb. 17: “How to export or import from El Salvador? Learn more about the Guide to take advantage of the Association Agreement between the European Union and Central America.” Read more here (in Spanish): https://eeas.europa.eu/delegat...

Focus Economics – Feb. 15: ‘El Salvador Economic Outlook.’ See: https://www.focus-economics.co...

BCIE / CABEI - Jan. 31: 'CABEI reaffirms support for Salvadoran MSMEs with new US$10 million disbursement to Banco Hipotecario.' Read more here: https://www.bcie.org/en/news-a...

Guatemala:

Data Export - Feb. 28: "Francisco Menéndez, President of Conservas y Congelados Ya Está.’and Eric Aviles, president of ‘Salsa & Verde; Associates of the Agexport Food and Beverage Commission, tell us how they became entrepreneurs to exporters of Guatemalan products." Listen to the Podcast here (in Spanish): https://dataexport.com.gt/podc...

Forbes CentroAmérica – Feb. 21: 'For this year there are 240 diversification opportunities for the country's exportable supply. The Best Markets, Products & Services 2022 Study identified products with potential, although they are not yet part of what is sold abroad.' Read more here (in Spanish): https://forbescentroamerica.co...

Focus Economics – Feb. 15: ‘Guatemala Economic Outlook.’ See: https://www.focus-economics.co...

Agexport Hoy - Feb. 15: ''Recently the Quality Laboratory of Cacao Agexport was inaugurated, which will boost international standards services for the quality assessment and taste of cocoa. "Read more here (in Spanish): https://agexporthoy.export.com...

BizLatin Hub - Feb. 08: 'Employment Law in Guatemala: a Guide. ' Read more here: https://www.bizlatinhub.com/em...

Honduras:

Forbes CentroAmérica – Feb. 25: 'Honduras reduces coffee export forecast for the 2021/2022 harvest. In 2020/2021, the country exported some 5.9 million 60-kilo bags.' Read more here (in Spanish): https://forbescentroamerica.co...

Radio Inter - Feb. 23: 'Volaris opens new route between San Pedro Sula and Guatemala.' Read more here (in Spanish): https://inter.hn/noticias/vola...

Focus Economics – Feb. 15: ‘’Honduras Economic Outlook.’ See: https://www.focus-economics.co...

Instituciones - Feb.: ‘With the aim of attracting more foreign investment to El Salvador, the national government has developed the Forum Business Opportunities with Honduras, Entrepreneurs are presented with mechanisms facilitated by commercial processes in the pharmaceutical chemical industries. Read more here (in Spanish): https://rree.gob.sv/gobierno-e...

La Prensa - Dec. 31: 'ECLAC projects 3.6% economic growht for Honduras in 2022.' Read more here (in Spanish): https://www.laprensa.hn/econom...

Nicaragua:

CentralAmericaData - Feb. 24: 'Cargo transportation rates in Nicaragua. Carriers complain about rates imposed by international companies and ask to pass a law that establishes a regulatory entity that sets freight transport fees.' Read more here (in Spanish): https://www.centralamericadata...

Focus Economics – Feb. 15: ‘’Nicaragua Economic Outlook.’ See: https://www.focus-economics.co...

BCIE / CABEI - Feb. 14: 'Nicaragua Reaffirms its Commitment to CABEI's Equity Strengthening through Capital Contribution.' https://www.bcie.org/en/news-a...

Nicaragua Exporta – Feb. 03: 'Nicaragua develops exciting Nearshoring strategy' Read more here (in Spanish): https://revistanicaraguaexport...

Seth's Humidor - Feb. 03: Review of Davidoff Nicaragua Short Corona. See: https://sethshumidor.com/cigar...

Panama:

Forbes CentroAmérica - Feb. 28: 'Panama is struggling to get off the FATF gray lists. Panama has been trying to get off these lists for several years and this month the deadline established by FATF to see the results of those efforts ends.' Read more here (in Spanish): https://forbescentroamerica.co...

E&N - Feb. 23: 'Panama seeks to accelerate its recovery in 2022.' Read more here (in Spanish): https://www.estrategiaynegocio...á-busca-acelerar-su-recuperación-en-2022

Nearhore Americas - Feb. 23: 'Nearshore Forum: Panama is Overlooked Far Too Often.' Read more here: https://nearshoreamericas.com/...

EFE - Feb. 16: 'Panama committed to integration and innovation of Ibero-American public TV.' Read more here (in Spanish): https://www.efe.com/efe/americ...

Focus Economics – Feb. 15: ‘’Panama Economic Outlook.’ See: https://www.focus-economics.co...