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MEXICO AND CENTRAL AMERICA TRADE MISSION 2013
Mexico D.F., Mexico; San Salvador, El Salvador; San Pedro Sula, Honduras
April 7-13, 2013
Market Information
Trade Mission Details
Application Information
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The International Trade Office of the Iowa Economic Development Authority (IEDA) will lead a trade
mission to Mexico, El Salvador and Honduras, April 7-13, 2013.
Participating Iowa companies will have one-on-one pre-qualified appointments whether they are seeking
to develop or expand direct export sales, locate distributors or agents, conduct market research or have
other goals.
Sectors: All industry sectors are invited to participate in this mission.
Space is limited for trade mission participation. The deadline for application is February 1, 2013.
Read further for more information or contact Mark Fischer (meat related companies and organizations) at
515.725.3140 ([email protected]) or Peggy Kerr (manufacturers) at 515.725.3143
([email protected]).
Market Information
The United States signed the Dominican Republic-Central America-United States Free Trade Agreement
(CAFTA-DR) with five Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, and
Nicaragua) and the Dominican Republic in 2004. The CAFTA-DR is the first free trade agreement
between the United States and a group of smaller developing economies. This agreement is creating new
economic opportunities by eliminating tariffs, opening markets, reducing barriers to services, and
promoting transparency. It is facilitating trade and investment among the seven countries and furthering
regional integration. With CAFTA-DR implemented, about 80 percent of U.S. goods now enter the region
duty-free, with tariffs on the remaining 20 percent to be phased out by 2016. Central America and the
Dominican Republic represent the third largest U.S. export market in Latin America, behind Mexico and
Brazil.
CAFTA-DR market attraction for U.S. exporters includes proximity to the U.S., and adequate port
infrastructure. Despite the economic downturn in 2009, the region as a whole achieved 0.6 percent GDP
growth. Further regional integration could spur investment, growth, trade and continued market
opportunities for U.S. firms in coming years. Regionalization is quickly becoming a common business
practice. Central America offers a market of 32 million people with annual manufactured imports from the
U.S. totaling more than $19 billion. This makes Central America a better market for U.S. exporters than
many other markets where the competition and travel distance is much greater.
Iowa exports to each Honduras and El Salvador have increased over 300% since implementation of
CAFTA-DR in 2006.
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The U.S. is the chief trading partner for
Honduras, supplying 46.2 percent of Honduran
imports.
Honduras, located in the heart of Latin America,
is only a 2-hour flight from several U.S. gateway
cities, and 48 to 72 hours by sea. With the
lowest logistical costs in the region, Honduras
also serves as a distribution platform for the rest
of Central America. Honduras has ports on both
the Atlantic and Pacific Oceans that are served
by a number of shipping companies linking the
country with the U.S., Europe, Asia, and the rest
of the Western Hemisphere. The northern port of
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Puerto Cortés, located 34 miles (55 km.) from
the industrial city of San Pedro Sula, is Honduras’ principal seaport and the largest deep-water port in the
region. It manages over 80 percent of the maritime traffic handled by Honduras, plus cargo from El
Salvador and Nicaragua. It’s the first port in Latin America to qualify under both the Megaports and
Container Security Initiatives (CSI), which now make approximately 90 percent of all transatlantic and
transpacific cargo imported into the U.S. subject to prescreening prior to import.
Honduras has a 13,603 km official road network connecting the ports and airports with the secondary
cities and rural areas of the country. It has good surface connections with the rest of Central America, and
the domestic road network has generally satisfied local and foreign companies’ distribution and
transportation needs. Honduras is also moving forward with a $470 million “dry canal” project, a four lane
superhighway that will connect Puerto Cortés on the Caribbean with the Port of La Unión in El Salvador
on the Pacific. This major infrastructure project, which is expected to be completed by the year 2013, will
boost the country’s logistics and distribution network.
For marketing purposes, Honduras can be divided into two regions: the North Coast, including San Pedro
Sula, the country’s commercial and industrial capital; and the Central region, where Tegucigalpa, the
political capital and largest city, is located. Tegucigalpa and San Pedro Sula are the major distribution
centers for imported goods. A single distributor or representative is sufficient to cover all of Honduras.
Leading U.S. exports in 2011 included petroleum products, textile and fabrics, cotton yarn, electrical
equipment, chemicals, manmade staple fibers, computer and electronic products, machinery, food
products and cereals (corn, wheat, rice). Pork products, corn and machinery topped Iowa exports.
The U.S. is El Salvador’s leading trade partner.
In 2011, El Salvador’s Central Bank (BCR)
reported that the U.S. had a 38% import market
share, and that 46% of Salvadoran exports go to
the United States. Central America countries are
other top trade partners.
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El Salvador is still recovering from the world
economic crisis. El Salvador offers an open
market for U.S. goods and services with few
import restrictions. It has close ties to the US,
including use of the US dollar as the official
currency, and is only a 3-4 hour flight from key
US cities.
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Major infrastructure projects include expansion of the international airport, renewable energy generation
of electricity, regional electric grid interconnection and various education, public services, enterprise
development and transportation infrastructure projects.
Commercial activity is concentrated in the capital, San Salvador.
El Salvador offers a steady and growing market for a wide range of US goods and services. Leading U.S.
exports in 2011 included oils, cereals (corn, wheat and rice), machinery, textiles, plastics, and electrical
equipment. Leading Iowa exports also included pork products.
Mexico is a familiar trading partner for both the
United States and Iowa. U.S.-Mexico bilateral
trade increased from $88 billion in 1993, the
year prior to the implementation of North
American Free Trade Agreement (NAFTA), to
$460 billion in 2010.
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Mexico is the second largest market for Iowa
exports with over US$2.1 billion exported in
2011, more than 16 percent of Iowa exports.
Given the magnitude of the trade between the
United States and Mexico, there are still
abundant opportunities for U.S. firms in Mexico.
Mexico’s population is over 112 million people with 78% urban; 10% wealthy class; and 45% middle
class. Mexico has a very young population with a median age of 27. It offers a large market with a GDP
of approximately USD $1.1 trillion and per capita income $15,100. With a shared Western and Hispanic
culture U.S. producers find it easier to market and sell their services and products in Mexico. There is a
large installed base of manufacturing in various sectors, especially in automobiles, maquiladoras, and
food and beverage industries. Mexico is a stable democracy which bounced back strongly from 2009’s
worldwide recession.
Mexico grew faster than Brazil last year and will repeat this year, with a rate of about 4% against less
than 2% in Brazil. The new president, Enrique Peña Nieto, aims for an annual growth rate up to 6%
before his six-year presidency is over. By the end of this decade Mexico will probably be among the
world’s ten biggest economies; a few bullish forecasters think it might even become the largest in Latin
America.
Mexico is a natural market because of the tremendous receptivity it extends to U.S. suppliers. However it
can be difficult to capitalize upon its full potential due to issues such as its legal and banking systems,
regulations and standards, and language and culture. Mexico's size and diversity are often under
appreciated by exporters as it can be difficult to find a single distributor or agent to cover this vast market.
Mexico City is one of the most important economic hubs of Latin America. It is the most important
economic, industrial and cultural center in the country, and the most populous city. Mexico’s 2009
estimated population exceeded 8.84 million people, with 21.2 million people in the metropolitan area. The
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metro area had a GDP of $390 billion in 2005, making Mexico City the 25 largest economy in the world.
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It is also ranked as the 8 richest city in the world after the greater areas of Tokyo, New York, Los
Angeles, Chicago, Paris, London and Osaka/Kobe, and the richest in Latin America. Mexico City is also
one of the largest financial and commercial hubs in Latin America
Mexico is, for many companies, a natural extension of their sales program in the U.S. Thanks to the
NAFTA, U.S. exporters often enjoy competitive advantages in exporting to Mexico. And the proximity of
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Mexico can mean that U.S. exporters have significantly lower logistics costs, especially for larger items,
than their Asian and European competitors.
Additional market background information is available at:
CIA - The World Factbook
Food Safety and Inspection Service (FSIS) Export Requirements for El Salvador
Food Safety and Inspection Service (FSIS) Export Requirements for Honduras
Food Safety and Inspection Service (FSIS) Export Requirements for Mexico
U.S. Department of Commerce Country Commercial Guide for El Salvador
U.S. Department of Commerce Country Commercial Guide for Honduras
U.S. Department of Commerce Country Commercial Guide for Mexico
U.S. Department of Commerce Market Research Library
U.S. Department of State Fact Sheets
U.S. Department of State International Travel
USDA Foreign Agricultural Service Exporter Guide for El Salvador
USDA Foreign Agricultural Service Exporter Guide for Honduras
USDA Foreign Agricultural Service Exporter Guide for Mexico
Trade Mission Details
Sectors: All industry sectors are invited to participate in this
mission. Industry/product analysis will be conducted to determine
appropriateness of each mission destination prior to finalizing
participation.
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General Mission Itinerary:
Sunday, April 7 – Travel to Mexico City
Monday, April 8 – Breakfast briefing and Business Meetings
Tuesday, April 9 – Business Meetings, Evening travel to San Salvador, El Salvador
Wednesday, April 10 – Breakfast briefing and Business Meetings
Evening travel to San Pedro Sula, Honduras
Thursday, April 11 – Breakfast Briefing and Business Meetings
Friday, April 12 – Business Meetings
Saturday, April 13 – Return to Iowa
Basic Mission Fee: $3,000 per participating Iowa company which includes the necessary research,
individualized in-country business appointment schedules, group ground transportation, briefings and
hosted meals, pre- and post-mission assistance, on-site support while in country, pre-mission business
briefing and complete mission planning. Suitable arrangements will be made for ground transportation
and interpreters for mission appointments, but participating companies will be responsible for the
expenses.
Export Trade Assistance Program (ETAP Funding): ETAP
funds may be available on a first-come, first-served basis to
IowaGrants.gov
qualified business applicants for the trade mission. ETAP will
reimburse 75% of an eligible company's direct expenses up
to $4,000 per pre-approved trade mission. Eligibility requirements
and eligible expenses for reimbursement can be viewed at
http://www.iowaeconomicdevelopment.com/InternationalAssistance/ETAP.
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Estimated Mission Expenses:
Download the summary of mission costs as well as potential ETAP reimbursement for eligible Iowa
companies: [PDF: 148k]
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IEDA Services: IEDA's representative in Mexico, Business Development Partners, S.A. de C.V. (BDP),
will conduct the necessary market research in order to arrange business meetings appropriate for each
participating company's needs. The meetings will be held at the local company's facility whenever
possible. BDP staff has worked with numerous Iowa companies during the 18 years they have
represented the State of Iowa.
IEDA will hold a pre-mission briefing to acquaint the participants with the overall itinerary, travel
requirements, travel/lodging arrangements, country background, each other, etc. A thorough commercial
and economic orientation is provided during the mission.
IEDA/BDP will make hotel reservations and local transportation arrangements based on an air itinerary
which will be provided. Airport-hotel transports are provided for those traveling on the mission airline
itinerary. Participants arriving or departing the country on different airlines/flights may be responsible for
their own airport-hotel transportation expenses. Participants may choose to use the State's travel agent
coordinating this trip or their own. Participants do travel as a group on inter-country flights during the
mission unless schedule deviation has been discussed. Each participant is responsible for payment of
their travel and lodging expenses. Participating companies will be responsible for payment of ground
transportation and interpreters for mission appointments. A percentage of per diem is allowable under
ETAP.
Passport/Visa Requirements: All Americans traveling by air outside the
United States are required to present a passport or other valid travel document
to enter or re-enter the United States. U.S. passports must be valid for at least
6 months from date of entry.
Mexico
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Upon arrival in Mexico, business travelers must complete and submit a Form
FM-N authorizing the conduct of business, but not employment, for a 30-day
period. Travelers entering Mexico for purposes other than tourism or business or for stays of longer than
180 days require a visa and must carry a valid U.S. passport. For the latest entry requirements, contact
the Embassy of Mexico web.
El Salvador
U.S. citizens must present a current U.S. passport and either a Salvadoran visa or a one-entry tourist
card. The tourist card may be obtained from immigration officials for a ten-dollar fee upon arrival in
country at an airport or seaport. U.S. travelers who plan to remain in El Salvador for more than thirty days
can apply in advance for a multiple-entry visa, issued free of charge, from the Embassy of El Salvador in
Washington, DC or from a Salvadoran consulate. Visit the Embassy of El Salvador web site for more
information.
Honduras and El Salvador entered a “Central America-4 (CA-4) Border Control Agreement” with
Guatemala, and Nicaragua. Under the terms of the agreement, U.S. citizens and other eligible foreign
nationals who legally enter any of the four countries may similarly travel among “CA-4” countries without
obtaining additional visas or tourist entry permits for the other three countries. El Salvador has an exit tax,
which is usually included in the price of the airline ticket.
Honduras
A visa is not required for American citizens, but tourists must provide evidence of return or onward travel.
Immigration officials at the first port of entry determine the length of stay, up to a maximum period of 90
days. For additional information, contact the Honduran Embassy. To depart Honduras, travelers must
clear Honduran Immigration. Travelers by air must return the copy of their immigration document received
at entry. Travelers by land or sea must also return the entrance permit they received when entering
Honduras. If you are departing via air, you will be charged an airport tax of $38. The airport tax must be
paid at the airport in cash in either U.S. dollars or lempiras. Checks and credit cards are not accepted.
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U.S. citizens are encouraged to carry a photocopy of their U.S. passports with them at all times so that if
questioned by local officials proof of identity and U.S. citizenship are readily available.
General Travel Information
The following web sites provide links to international travel and health information.
U.S. Department of State
Centers for Disease Control and Prevention
Travel Insurance and Travel Health Insurance
U.S. medical insurance plans often do not provide coverage for health costs when traveling abroad, let
alone allow for emergency expenses such as medical evacuation. Many companies offer supplemental
policies. Resources for international medical emergency services, health insurance and health
information are available upon request.
Application Information
The deadline for trade mission application is February 1, 2013, although the sooner applications are
received, the sooner the necessary research can begin. Applications should be detailed and specific.
Include previous contacts to be contacted, and also those not to be contacted. Provide a profile of good
candidates if possible.
1. Mission Application [MS Word: 201k]
2. Participation Fee of $3000
Checks payable to IEDA Foundation. Invoice available upon request
3. ETAP application (if eligible) instructions are available at:
http://www.iowaeconomicdevelopment.com/InternationalAssistance/ETAP
4. Traveler Information Sheet [MS Word: 125k]
5. Brief (2-3 paragraph) company/product description for use in a promotional brochure
6. Electronic version of relevant marketing materials, or web links.
Submit application materials via e-mail and/or mail to:
Mark Fischer or Peggy Kerr
Iowa Economic Development Authority
200 East Grand Avenue
Des Moines, IA 50309
Contact Mark Fischer (meat related companies and organizations) at 515.725.3140
([email protected]) or Peggy Kerr (manufacturers) at 515.725.3143 ([email protected]) with
any questions.
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www.iowaeconomicdevelop.com/intlevents
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