Title: Political Crisis in Guatemala Threatens Regional Trade, Warns Chamber of Commerce and Industry of El Salvador
Subtitle: President of the union emphasizes concerns about potential impacts on transit of goods, remittances, and exports
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Guatemala’s ongoing political crisis has raised concerns about its potential impact on regional trade, particularly with its main trading partner in the region, El Salvador. The Chamber of Commerce and Industry of El Salvador (Camarasal) estimates that the crisis could lead to a significant reduction in regional trade.
Jorge Hasbún, president of Camarasal, expressed his “great concern” regarding possible protests, marches, and roadblocks in Guatemala that could disrupt the transit of goods between the two countries. These concerns were discussed during a recent meeting of the Central American Federation of Chambers of Commerce, which Camarasal is a part of.
Hasbún highlighted the importance of Guatemala to El Salvador’s trade, emphasizing that it is the country in the region with which trade links are primarily developed. Various goods, including raw materials, intermediate goods, textiles, and food products, flow between the two nations on a daily basis.
Furthermore, Guatemala serves as the main port of entry for vegetables and fruits, making it a crucial element for trade between the two countries. The close trade relationship between El Salvador and Guatemala amounts to more than one billion dollars annually.
The impact of the political crisis on El Salvador extends beyond trade. Hasbún stated that remittances and exports could also be affected by the situation in Guatemala.
In addition to the concerns over the political crisis, Hasbún shed light on the decrease in different trade sectors in El Salvador so far this year. The country is experiencing a decrease in direct foreign investment, and it is projected to have the lowest economic growth rate in the region.
The president of Camarasal attributed the low growth projections to inflation and the significant increase in costs. Despite a slight increase in export volume, Hasbún noted that the country has lost competitiveness compared to other regional countries, resulting in reduced merchandise orders from the United States.
Camarasal remains attentive and in constant communication with the Central American Federation of Chambers and the Chamber of Commerce of Guatemala to monitor the situation closely.
In conclusion, as the political crisis in Guatemala unfolds, stakeholders in El Salvador’s business community fear the potential consequences it may have on regional trade, remittances, and exports. The close relationship between the two countries makes it imperative for stakeholders to remain vigilant and proactive in addressing potential challenges ahead.