Central American Countries, such as Belize, Guatemala, Honduras and Nicaragua, are important states with diplomatic relationship with Taiwan. The governments of these countries also strongly support and encourage economic and trade exchanges. Guatemala, Honduras and Nicaragua have signed free trade agreement with Taiwan. Under the free trade agreement, most products have enjoyed tariff reduction. Central America has various favorable conditions, including abundant raw materials, low wages and stable exchange rates. The infrastructure has improved significantly in recent years. Moreover, under the DR-CAFTA, in addition to import and export, Taiwanese companies can also set up base of operation for local production or logistic centers. The enhanced competitiveness allows the Taiwanese companies to increase business opportunities for export and develop more local markets in Central America or huge markets in North America and South America.
In recent years, Taiwanese manufacturers have mainly focused their foreign trade on China or Southeast countries. However, policy changes in labor, insurance, tax and environment in the above countries and the trade war between China and the US have increased trade costs and risks. To provide Taiwanese companies another investment option and to complement the Government’s subsidies programs for trade and investment in Central American countries that are in diplomatic relationship with Taiwan, the Central America Trade Office (CATO) will hold the 2018 Trade & Investment Opportunities in Central America with embassies and important industrial and business associations in Taiwan. Staff members of trade promotion units of each country will be invited to introduce business opportunities and investment environment in their countries. The Taiwanese manufactures are encouraged to grasp this opportunity to further understand the possibilities in Central America through this event and create another blue ocean.