Taipei, June 21 (CNA) The free trade agreements (FTAs) Taiwan has signed with Central American countries will help boost trade between Taiwan and those nations, Central American exhibitors said Thursday in an international food show.
The Taiwan-El Salvador-Honduras FTA was signed May 7 and became the third FTA established between Central American nations and Taiwan, which has inked separate FTAs with Panama, Guatemala and Nicaragua.
With more products from both sides enjoying tariff-free incentives, El Salvador is looking to export more sugar, coffee and seafood to Taiwan, said Mauricio Chavarria, Marketing Manager of EXPORTA -- a Salvadoran government agency in charge of export promotion, which is the equivalent of the Taiwan External Trade Development Council (TAITRA).
El Salvador was among several nations, including Panama, Guatemala, Nicaragua and Honduras, that jointly set up an FTA Nations Hall at the 2007 Taipei International Food Show, which is being held from June 21-24. The Latin American nations are showcasing products such as coffee, seafood, sauces, juices and meat.
"Taiwan manufactures high-quality machinery, which is what El Salvador needs. Once the FTA kicks in, Salvadoran industries will benefit from the lower prices of Taiwanese products, " Chavarria said.
"Without the FTA, you would not see many products displayed here, " said Rodrigo Coba, general manager of a Panamanian company that sells products made from the noni fruit. Coba's company has secured its first distributor in Taiwan.
In 2003, Panama became the first Central American country to sign an FTA with Taiwan.
"El Salvador intends to keep doing business with Taiwan, although we import a lot of products from China, " Chavarria said, adding that El Salvador's limited manufacturing capability is not capable of handling a large market like China yet.
"And we would like to trade with Taiwan because of your democracy and your assistance in fishery, agriculture and infrastructure in El Salvador. I do not see China buying a large amount of products from El Salvador at the moment, " he said.
After the FTA goes into effect, he said, El Salvador can trade coffee with Taiwan directly instead of through Japan, so that consumers in Taiwan will get Salvadoran coffee at a cheaper price.
According to Ministry of Economic Affairs (MOEA), bilateral trade between Taiwan and El Salvador was valued at US$80.48 million for 2006, with Taiwan enjoying a trade surplus of US$62.5 million.
Central American countries can be Taiwan's gateway to the North American market, as Taiwanese manufacturers can also take advantage of the Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR).