SICA countries OPEN FOR BUSINESS, OPEN FOR TRADE AND OPEN FOR INVESTMENT Brussels, Septembre 2012

OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT LOCATION

Treaty for the Creation of the Central American States Organization (ODECA). Best known as “Carta de San Salvador”. Signed in El Salvador on October, MCCA ² MCCA ² ODECA ¹ 2.Created by the General Treaty for the Central American Economic integration. Signed in Managua, Nicaragua on December 13th, Created by the Protocol of Tegucigalpa. Signed in Honduras on December 13th, SICA ³ OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESMENT HISTORY

OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT In 1973, ODECA was suspended and progress in regional integration came to a standstill. Some 20 years later, in 1993, a new integration framework, the Central American Integration System (SICA), came into existence. SICA is made up of three Community Organs, the Central American Court of Justice (CCJ), the Central American Parliament (PARLACEN), and the Secretariat General of the Central American Integration System (SG-SICA). Central American integration dates back to 1951 when the Organization of Central American States (ODECA) was founded. This was followed by the creation of the Central American Common Market (MCCA), the Central American Bank for Economic Integration (BCIE), and the Secretariat for Central American Economic Integration (SIECA) in THE CENTRAL AMERICAN INTEGRATION SYSTEM SICA

El Salvador, June 5th, Honduras, June 8th, Nicaragua, July 4th, Guatemala, August 3rd, Costa Rica, June 26th, Panama, March 20th, Belize, November 27th Dominican Republic, December 10th, OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT THE ADHESION PROCESS TO SICA

El Salvador, June 5th, Honduras, June 8th, Nicaragua, July 4th, Guatemala, August 3rd, Costa Rica, June 26th, Panama, March 20th, Belize, November 27th Dominican Republic, December 10th, OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT THE ADHESION PROCESS TO SICA

El Salvador, June 5th, Honduras, June 8th, Nicaragua, July 4th, Guatemala, August 3rd, Costa Rica, June 26th, Panama, March 20th, Belize, November 27th Dominican Republic, December 10th, OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT THE ADHESION PROCESS TO SICA

El Salvador, June 5th, Honduras, June 8th, Nicaragua, July 4th, Guatemala, August 3rd, Costa Rica, June 26th, Panama, March 20th, Belize, November 27th Dominican Republic, December 10th, OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT THE ADHESION PROCESS TO SICA

El Salvador, June 5th, Honduras, June 8th, Nicaragua, July 4th, Guatemala, August 3rd, Costa Rica, June 26th, Panama, March 20th, Belize, November 27th Dominican Republic, December 10th, OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT THE ADHESION PROCESS TO SICA

El Salvador, June 5th, Honduras, June 8th, Nicaragua, July 4th, Guatemala, August 3rd, Costa Rica, June 26th, Panama, March 20th, Belize, November 27th Dominican Republic, December 10th, OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT THE ADHESION PROCESS TO SICA

El Salvador, June 5th, Honduras, June 8th, Nicaragua, July 4th, Guatemala, August 3rd, Costa Rica, June 26th, Panama, March 20th, Belize, November 27th Dominican Republic, December 10th, OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT THE ADHESION PROCESS TO SICA

El Salvador, June 5th, Honduras, June 8th, Nicaragua, July 4th, Guatemala, August 3rd, Costa Rica, June 26th, Panama, March 20th, Belize, November 27th Dominican Republic, December 10th, OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT THE ADHESION PROCESS TO SICA

OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT Central American Customs Union Central American Customs Union DR-CAFTA CA–UE Association Agreement CA–UE Association Agreement Bilateral BilateralAgreements SICA’S TRADE STRATEGY

“Recalling the common strategic objective of the Guadalajara Declaration and taking into account the positive outcome of the joint assessment exercise on regional economic integration carried out with Central America, we welcome the decision taken by the European Union and Central America to launch negotiations for an Association Agreement, including the establishment of a Free Trade Area. ” Vienna Declaration, May OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT

Demographic facts The size of the market SICA trade partners A world to discover OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT SICA COUNTRIES

Association Agreement Central America – European Union Negotiations started in October 2007 in Costa Rica and concluded in Madrid in may Panama integrated fully into the negotiation process in January The Association Agreement was rubricated in Brussels on march 2011 by Central American Ambassador in Brussels. The College of Commissioners adopts the signing proposal and provisional application of the trade pillar and completion of the Association Agreement. (Taken from internal presentation Embassy of Costa Rica in Brussels)

Association Agreement Central America-EU The Association Agreement between Central America and the EU was signed on 29 june 2012, during the XXXIX Meeting of Heads of State and Government of Central America in Tegucigalpa, Honduras It is the first region to region agreement. The agreements needs to be submitted to the pertinent legislative bodies in both regions for its entry into force.

Demographic facts OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT

millions inhabitants Sources: World Development Indicators Database World Bank (2011) and World Development Report (2012) POPULATION OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT

The size of the market OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT

AREA 559,130 kms²

OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT 72 DOMINICAN REPUBLIC GUATEMALA COSTA RICA EL SALVADOR PANAMA HONDURAS NICARAGUA BELIZE 2.30 SICA COUNTRIES SIZE OF THE MARKET* (Billions of US Dollars) *for comparative purposes figures are in PPP Source: 2006 World Bank’s Facts & Statistics.

SICA countries 2006 Gross Domestic Product US$ billion* Source: World Bank (2006) GDP GROWTH RATE: 8.87% World Bank’s Ranking of the biggest economies*: 34EGYPT MALASYA SWEEDEN SICA COUNTRIES VIETNAM VENEZUELA SINGAPORE *for comparative purposes figures are in PPP Source: 2006 World Bank’s Facts & Statistics. OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT

SICA trade OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT

SICA foreign trade: $81.7 billion (X+M) / GDP : 74.3% EU: 20.4% - USA: 21.3% $50.2 billion $31.5 billion EXPORTSIMPORTS OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT 2006 SICA TRADE BALANCE (billions of US Dollars)

SICA – EU TRADE: $6.55 billion $3.99 billion $2.56 billion EXPORTSIMPORTS OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT 2006 SICA – EU TRADE BALANCE (billions of US Dollars)

SICA – BEL/LUX TRADE: $581.6 Million $ Million $ Million EXPORTSIMPORTS OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT 2006 SICA – BEL/LUX TRADE BALANCE (Millions of US Dollars)

2006 : Top Imports from the EU (First ten chapters) OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT 1Electronic devices$ Machinery$ Pharmaceuticals$ Mineral fuels$ Chemicals$ Vehicles and transportation $ Iron and steel$ Plastics and/or plastic manufactures$92.2 9Precision devices$ Paper, carton and celulose$ Fertilizers and pesticides$83.7 in millions of US Dollars - Source: 2007 SIECA TRADE STATISTICS

2006 : Top Exports to the EU in millions of US Dollars - Source: 2007 SIECA TRADE STATISTICS OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT 1Coffee$ Tropical Fruits$ Electronics and microchips$ Flowers and green plants$ Fisheries$97.9 6Processed tropical foods$95.8 7Precision and medical instruments$54.3 8Beef and canned foods$48.9 9Minerals$ Mineral fuels$40.4

OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT A world to discover

2006: VISITORS TO OUR COUNTRIES 13,058,583 Sources: DITUR/ SG-SICA. & Dom. Republic Tourism Office OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT

2006: REVENUES GENARATED BY TOURISM: $9,89 Billions OPEN FOR BUSINESS, OPEN FOR TRADE, OPEN FOR INVESTMENT Sources: DITUR/ SG-SICA. & Dom. Republic Tourism Office. 2006

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