Mesoamerica renews push towards integration

October 25, 2010
The presidents of Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Mexico, Colombia and the Dominican Republic will meet tomorrow, Oct. 26, in Cartagena, Colombia at the XII Summit of the Tuxtla Mechanism for Dialogue and Coordination. The heads of state will be informed of the progress made by the Mesoamerica Project in terms of regional integration and will decide further courses of action.

Central America's integration is in full swing

July 21, 2010
In late July, the first substation of the Central American Electrical Interconnection System (SIEPAC) is opening in Costa Rica. A week later, the substation in Panama will be ready to operate. Towers, lines and cables are already in place, so the southern section of the nascent Central American electricity market will soon be a reality. PAC53 - Road from La Chorrera to Arraijan, in Panama.

The IDB, a partner of Colombia in development

March 17, 2009
Since the mid-1990s the Inter-American Development Bank (IDB) has been the leading source of multilateral financing for Colombia. Over the last 50 years, the IDB has approved more than US$14.8 billion in loans and non-refundable technical cooperation projects for Colombia. Throughout its history, the IDB has supported the Colombian government and private sector in key development areas such as infrastructure, state modernization and reform, small and medium enterprise, agriculture, energy, climate change and environmental protection.

Becoming a Free-Trade Regional Hub

March 26, 2007
With the increasing number of bilateral trade agreements around the globe and greater focus on the markets of  Asia-Pacific countries, the time is appropriate to suggest a Latin American hub for commerce and integration with Asian countries: Chile. Chile has one of the most global, open economies in the world in terms of investment, joint ventures, software for trading, and compliance with World Trade Organization regulations.

Donors pledge support to assist Latin American countries in CAFTA-DR trade agreement to improve compliance of labor standards

July 20, 2005
Donors pledged their support to assist six Latin American countries participating in the CAFTA-DR free trade agreement with the United States in improving the compliance and enforcement of international and national labor standards and legislation. Delegations from Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua met with donors at the headquarters of the Inter-American Development Bank in Washington, DC to discuss their strategic priorities and specific goals they want to accomplish regarding labor law compliance and institutional strengthening.

Increasing tax collection

January 10, 2005
If Central America wants to improve social equity and achieve fast and continuous economic growth, its countries need to increase tax collection and modernize their tax systems, according to a recent study by IDB economists Manuel R. Agosin and Roberto Machado entitled Tax Reform and Human Development in Central America. Regional tax reform is necessary because “Central American states are too small and vulnerable to provide essential public goods for the economic growth and the people’s well being.”

Exporting is not enough

August 02, 2004
Latin American exports have done well in terms of volume during the last quarter century. Indeed, they have exceeded the expansion of world trade. But even with the edge in trade, economic growth has been disappointing throughout the region. Isn’t export promotion the key to growth, according to the mantra of 70’s? That’s what everyone used to believe; but time has shown clearly that stimulating growth requires much more than just increasing exports.

Mexico – EU Free Trade Area opens doors to foreign trade for Latin America

July 30, 2004
The Mexico-European Union Free Trade Agreement, the first such accord between Europe and a country in the Americas, is celebrating its fourth anniversary and 27% growth in bilateral trade volume. (1) However, long-term benefits are not easily measured. The reported effective growth rates - 19% for Mexican exports to the European Union, and 30% for EU exports to Mexico – is considered relatively low compared with Mexico’s 18% increase in exports worldwide.

Central American nations and Dominican Republic call for ratification of CAFTA

July 13, 2004
Trade and labor ministers from Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua announced at the Inter-American Development Bank that they will take steps to strengthen the enforcement of labor standards in their countries. In a joint statement issued after a meeting, the ministers also called on the U.S. Congress to ratify the CAFTA free trade agreement negotiated recently with their countries. Trade among the seven participating countries totals $30 billion a year.

The multinational effect

January 21, 2004
Many people make the quick assumption that multinational firms’ investment is linked with negative economic effects in the host country, or reject the hypothesis that foreign direct investment accelerates productivity growth in domestic firms.