Five years after its passage, many experts believe the agreement is only just beginning to show its real impact. To begin with, we must remember that trade between the US and the CAFTA countries is valued at over $45 billion annually.
An article by Tarun George in NearshoreAmericas analyzes whether the FTA has created a more productive relationship between the U.S. and Central America’s service outsourcing industry.
In terms of professional services, the main benefit of the treaty is that it implements a uniform set of laws across the entire region. “CAFTA lays out clear market obligations that countries have to uphold, which provide a lot of security to an investor”, says Esteban Aguero, Director of the Dept. of Control of Free Trade Agreements in Costa Rica.
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Panama became the center of debate regarding outsourcing services.
While some companies choose to keep all operations in one place, others prefer to diversify across Latin America, where the growth of shared service centers is increasing.
The conference, which was held in Panama City, brought together representatives from companies such as KPMG, Carvajal Technology and Services and TACA Airlines among others.
The event to be held on November 12th and 13th in Guatemala City will bring together companies in the outsourcing services sector and will feature conferences and business meetings.
From a statement issued by the Guatemalan Exporters Association (Agexport):
The fourth edition of the most popular and influential forum on Outsourcing and Offshoring of Latin America and the Outsource2Lac 2014 will be held on 12 and 13 November 2014 in Guatemala. The objective of this forum is to promote the participation of prominent businessmen in the global services sector worldwide.
Direct marketing giant Amway is planning an operations center in Costa Rica.
Michigan newspaper "The Grand Rapids Press" obtained a confidential memo from the company to its employees. In it, the organization communicates that it is planning an "enterprise process center" in Costa Rica. This center would consolidate financial operations and processes for the entire Americas region.
Companies are preparing for the process of tariff reduction for imported goods and services from the United States under the FTA.
Starting 2015 various products will be able to come into Nicaragua from the U.S. tax free. Employers are now preparing for the tariff reduction process of the Free Trade Agreement between the U.S., Central America and Dominican Republic (DR -CAFTA).