Business Collaborations:
Central America and South Korea have strengthened their cooperative relations and are seeking new opportunities for joint work. On November 8, the Third Special Roundtable South Korea-Central America was held in Seoul, co-chaired by the Korean First Vice Minister of Foreign Affairs, Chang Ho Jin. This event addressed cooperative relations and joint work between Central American nations and South Korea.
Representing Guatemala, Vice Foreign Minister Karla Samayoa participated in the meeting and spoke with her counterparts about cooperation and the expansion of relations between both regions. Samayoa highlighted the excellent state of bilateral relations between Guatemala, Korea and Central America, which has promoted new avenues of cooperation and opportunities to explore joint projects.
International Trade Promotion Initiatives:
International trade has evolved dramatically over time, from barter systems to digital exchanges. Today, in a context of rapid technological advances, it is essential to foster a culture that drives innovation in trade. To achieve this, five key strategies are highlighted.
First, the importance of optimizing existing data to boost trade intelligence and combat smuggling is highlighted. Sectoral and inter-institutional collaboration emerges as a second key strategy, as exemplified by the public-private partnership that facilitated the import of test kits in Mozambique. The third strategy suggests experimenting with advanced technologies, such as artificial intelligence and the Internet of Things, to improve efficiency and environmental sustainability in trade. Embracing failure as part of the innovation process is another important point, as it can lead to unexpected discoveries and creative solutions. Finally, the need to create spaces dedicated to innovation, such as challenges, to promote creative thinking and find solutions to international trade challenges is highlighted. These strategies, although not exhaustive, provide a solid framework to foster innovation and improve trade processes at a global level.
The Guatemalan-Korean Chamber of Commerce (CAMCOR) aims to increase specialty coffee exports to Korea by launching a logistics proposal for small coffee shipments that will begin operating in April. This service, intended to carry nano or micro lots of coffee from Guatemala to Korea, offers competitive transportation and storage costs for bags or presentations of 40 pounds and up. CAMCOR Vice President David Juarez explained that high-quality coffees, although with low volumes, can be sold at high prices in Korea, but high transportation costs have been a barrier. This innovative service aims to reduce transportation and storage costs to Korea by up to a third, in addition to offering storage and door-to-door delivery services in Korea to serve orders from small importers and coffee shops
Achievements and Recognitions:
On December 20, 2023, a letter of intent was signed between the Ministry of Foreign Affairs (MINEX), the Ministry of Labor and Social Security (MINTRAB) and the Secretariat Against Sexual Violence, Exploitation and Trafficking in Persons (SVET), within the framework of the Working Group on Labor Mobility. This collaboration between institutions demonstrates a joint commitment to address the challenges and opportunities related to labor mobility, recognizing the importance of effective coordination to ensure a comprehensive and efficient approach, as highlighted by the General Director of the Guatemalan Migration Institute, Stuard Rodríguez.
The signing of this letter of intent reinforces the commitment of the Guatemalan Migration Institute to promote safe and orderly labor mobility. This cooperation between MINEX, MINTRAB, SVET and the IGM represents a significant advance for a more effective management of labor migration flows, thus reaffirming the commitment of Migración Guatemala to the country's migrant population.
General Context:
Central America and South Korea commemorated the 60th anniversary of their diplomatic relations on Monday, highlighting the signing of a Mutual Assistance Framework Agreement by the Secretariat for Central American Economic Integration (SIECA) to strengthen institutional cooperation and promote trade between both regions. The ceremony was attended by the Secretary General of SIECA, Francisco Lima Mena, and the General Director of KOTRA Guatemala, Shim Che Sang, along with other authorities. In addition, a seminar was held on trade opportunities between the two regions, combining in-person and virtual participation, followed by the launch of a virtual Korea-Central America business roundtable, which will continue for ten days with companies interested in sectors such as beauty, food, beverages and construction.
During the six decades of relationship, trade between Central America and South Korea has flourished, with considerable growth in exports and imports. In particular, Central American exports to Korea increased from $87.3 million in 2000 to $729.2 million in 2021, while imports from Korea increased from $337.6 million in 2000 to $1,168.9 million in 2021. This trade, marked by complementarity and industrialization, has strengthened ties between both regions, with products such as copper ores, coffee and automobiles standing out among the most exchanged.
Opportunities for Companies in the Region – Key Sectors:
The Central American Bank for Economic Integration (CABEI) participated in the Korea-Latin America Business Forum (KCLAC) in Seoul, reaffirming its commitment as a mediator between Korea and Central America to strengthen bilateral cooperation. During the event, CABEI Executive President Dr. Dante Mossi highlighted the positive impact of Korea's integration into CABEI in 2019 and highlighted technical cooperation through the Korea-CABEI Single Donor Trust Fund (KTF), benefiting Central American countries such as Costa Rica, the Dominican Republic and Belize in areas such as health, transportation and trade. In addition, topics such as cooperation in Information and Communication Technologies (ICT) between Korea and Central America, and strategies to improve logistics and production were addressed, thus consolidating South Korea's commitment to the region. During a subsequent press conference, Mossi highlighted the opportunities that open up for Central America by strengthening trade ties with South Korea, focusing on areas such as the environment and education, and discussed projects related to air connectivity, trade in products and infrastructure development, underscoring CABEI's commitment to sustainable development and the expansion of joint loan programs with South Korean institutions.
Investments and Joint Projects:
At the Third Special Roundtable South Korea-Central America in Seoul, the importance of cooperation between Central American nations and South Korea was highlighted, addressing areas such as sustainable development, technology, trade and citizen security. The potential of Central America as a trade corridor was highlighted and South Korea's commitment to boost development in the region through investments and collaboration in strategic areas was expressed.
In addition, a US$50 million investment was announced by South Korea through the Central American Bank for Economic Integration (CABEI) to finance infrastructure projects in areas such as health, energy, transportation and the environment in several Central American countries, thus promoting economic development and environmental sustainability in the region.
International trade agreements offer companies an invaluable opportunity to expand their markets, reduce costs and increase their global competitiveness. However, to maximize the benefits of these agreements, companies must be well prepared. This report provides practical guidance on how companies can prepare to make the most of trade agreements, including the necessary documentation, negotiation strategies and available resources.
Negotiation Strategies:
Globalization has opened up a range of opportunities for companies that wish to expand internationally, however, they face a crucial challenge: cultural barriers. Overcoming these differences becomes critical to success in global business, and this article will present effective strategies to address them and achieve successful agreements in an international context.
International negotiation involves interaction between parties from different countries with the aim of reaching mutually beneficial agreements in the business arena. This process includes discussions, exchange of proposals and resolution of differences to promote collaboration on a global level.
Available Resources – Reaching good international trade agreements:
Free Trade Agreements (FTAs) are agreements between two or more nations to eliminate restrictions on trade. These treaties establish rules on tariffs, import and export duties. They are essential to promote Brazilian foreign trade, strengthen industrial competitiveness and improve economic productivity.
FTAs allow goods and services to be traded without restrictions across international borders, thus contributing to economic growth. They can be unilateral, bilateral or multilateral, depending on the number of countries involved. In addition, these agreements define rules that provide legal certainty to businesses and balance the conditions of competition in the markets.
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