Meat Industry INSIGHTS Newsletter

980922 Central America and Mexico Work Toward Free Trade Agreement

September 8, 1998

Guatemala City - Free trade talks between Mexico and a bloc of Central American nations, once due to conclude early in 1998, may continue into 1999 as negotiators wrangle over chicken, cars and other products, officials said.

Central America's so-called Northern Triangle, a trading bloc made up of El Salvador, Guatemala and Honduras, has been negotiating since September 1996 for a free trade treaty with Mexico.

Guatemala, the largest economy in the Northern Triangle, has run a trade deficit of about $200 million with Mexico in recent years. Mexico is the second biggest origin of imports in Guatemala, after the United States, accounting for 11.4% of the country's imports in 1997.

Most of the 11 negotiating groups - each handling a topic such as health and sanitary regulations or protection of patents and trademarks - have agreed on final wording for the treaty or are close to doing so.

On Sept. 15, Mexico and the Northern Triangle will exchange lists of products that should be excluded from the free trade treaty, he said.

The Central American countries were very interested in lower tariffs and duties on chicken and beef exported to Mexico, but he doubted Mexico would allow freer access for those products.

This Article Compliments of...

Iotron Technology Inc.

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