North Triangle and its commercial potential for the United States

Plaza Gerardo Barrios, The Savior.
By Yaneth Estrada

Since the signing of the Customs Union of the Northern Triangle of Central America between El Salvador, Honduras and Guatemala, the 22 August 2018, which would enhance the region as the eighth largest economy in Latin America, The United States insists reach trade agreements and exerts a frontal fight against migration.

according to figures, Gross Domestic Product (Schedule) of the three countries totals about 123 billion and includes 32 millions of inhabitants. While among emerging tourism trade is with 5 million visits annually.

With his arrival the Executive, President of El Salvador, n watch, promised in the "Cuscatlan Plan" raise the figure to 3.3 million tourists 2024 already 4.5 million 2040.

In this sense, and taking into account their proposal not to get help, but transact business, United States designated for his inauguration Commerce Secretary Wilbur Ross, Kimberly Breier, Assistant Secretary of State for Western Hemisphere and David Bohigian, Corporation President Private Investment Abroad (OPIC).

But nevertheless, for Medardo González, former general secretary of the Farabundo Marti National Liberation FMLN, “Bukele is an instrument of the empire to conclude their desire for domination over our country and build a neoliberal reform necessary to seize the last public goods”, said holding the 37 National Convention of that political party.

Legal and illegal trade

For experts in international relations, the weakening of US trade relations elsewhere makes that country pay special attention by the Northern Triangle and other countries in the region (Mexico) looking investments.

Secil de León, Guatemala International analyst noted that "are seeking new markets or markets that had never occupied before, say that the Northern Triangle is one of them, not only legitimate business, but also all kinds of illegal or businesses that generate a lot of money, between these transit of cocaine passing between 70% Y 80% en route to the US ".

In a year of trade war with China, Recently (August 2018) recognized by El Salvador, United States increased by 200 millions tariffs and Chinese products only between 10% Y 25%.

Likewise, "Washington not only accuses Beijing of stealing intellectual property of many US products, but that China wants to make changes in their economic policies because it ensures that current favor Chinese state-owned companies through a system of subsidies ".

The United States wants China to buy more US products to curb its high trade deficit $419 Beijing million.

Implications for Mexico

This commercial low last June led to US President, Donald Trump, threatening to impose tariffs 5% for all imports from Mexico.

The "gringo" market meant for Mexico, last year, $328 million in exports, a figure that is 352% higher than that recorded ago 20 years.

via Twitter, Trump said that the measure would go into effect 10 June and remain in force “until the flow of undocumented migrants stopped” They are entering the United States through the country.

After the threat and to avoid cash payment 5% over tariffs, The president of Mexico, Andres Manuel Lopez Obrador, He reacted with all its diplomatic machinery and instead offered, the 21 last June, a social program $30 million to El Salvador. Besides reinforcing the southern border with the United States 6 thousand troops from the National Guard to prevent passage to that country.

Gross Domestic Product by country

Country Total GDP
The Savior $24.80 millions
Guatemala $75.62 millions
Honduras $22.97 millions