"Supporting Companies' Entry into Eco-friendly and Digital Businesses Using the Central America FTA"

Government to Hold 'Central America Market Entry Support Seminar' on 2nd
"Expecting Opportunities to Participate in Eco-friendly and Digital Projects"

From the front row, left to right: Jo Hak-hee, Head of International Business Division at Korea International Trade Association; Choi Jong-wook, Counselor of Latin America and Caribbean Affairs at the Ministry of Foreign Affairs; Kim Hyung-joo, Director of Domestic Trade Policy at the Ministry of Trade, Industry and Energy; Yang Guk-bo, Research Fellow at KOTRA. From the back row, left to right: Oh Sung-joo, Senior Researcher at POSCO Research Institute; Yoon Yeo-jun, Head of the Americas Team at the Korea Institute for International Economic Policy; Lee Sang-chun, Executive Director at Dohwa Engineering.
(Photo by Ministry of Trade, Industry and Energy)

[Asia Economy Reporter Moon Chaeseok] The government announced that companies will be able to find opportunities to participate in projects in eco-friendly and digital sectors by utilizing the Free Trade Agreements (FTAs) signed with Costa Rica and three other Central American countries.

The Ministry of Trade, Industry and Energy, the Ministry of Foreign Affairs, and the Korea International Trade Association held a "Korea-Central America FTA Central America Market Entry Support Seminar" on the 2nd at the Shilla Hotel in Seoul.

Choi Jongwook, Director of the Latin America and Caribbean Division at the Ministry of Foreign Affairs, explained that the government has undertaken ▲ the conclusion of the Korea-Central America FTA and joining the Central American Bank for Economic Integration (CABEI) ▲ cooperation on COVID-19 health and quarantine measures ▲ and presented a vision for Korea-Central America cooperation in the post-COVID-19 era.

Director Choi said, "In particular, through cooperation between the 'Korean New Deal Comprehensive Plan' and eco-friendly and digital policies in the Central American region, we will support Korean companies' entry into the Central American market."

Kim Hyungjoo, Director of Domestic Trade Policy at the Ministry of Trade, Industry and Energy, reported, "Last month, our exports continued to recover, and in the Central American region, export items diversified due to 'K-quarantine' and partial implementation of the Korea-Central America FTA, including diagnostic reagents and mobile phones."

Looking at export performance to Central America in October, diagnostic reagents (867%), pharmaceuticals (38.5%), batteries (12.2%), and mobile phones (467%) increased compared to the same month last year.

Cho Hakhee, Head of International Business at the Korea International Trade Association, forecasted, "Through the Korea-Central America FTA, our companies will be able to increase the utilization of the FTA network connecting the Americas (North, Central, and South America) using Central America as a lever."

Presenters participating in the seminar evaluated that despite COVID-19, the attractiveness of the Central American market is gradually increasing due to ▲ the rise in young consumer populations ▲ increased infrastructure investment ▲ and the reorganization of Global Value Chains (GVC).

They emphasized the need to ▲ expand trade synergies through the Korea-Central America FTA ▲ and establish market entry strategies for Central America from a regional integration perspective.

Oh Seongju, Senior Researcher at POSCO Research Institute, suggested, "Our companies should seek opportunities to enter the Central American market through the Korea-Central America FTA."

Yang Gukbo, Research Fellow at KOTRA, predicted, "The Korea-Central America FTA will strengthen price competitiveness in automobiles and automobile parts, cosmetics, beverages, and pharmaceuticals."

For companies, they proposed ▲ strengthening marketing by multinational corporations with networks throughout Central America ▲ strategies to secure projects and participate in procurement of pharmaceuticals in energy, construction, green new deal, smart city, and information and communication technology (ICT) projects through multilateral development banks such as CABEI.

Lee Sangcheon, Executive Director at Dohwa Engineering, emphasized, "Since the scale of infrastructure projects in the five Central American countries is relatively small by country, it is necessary to establish integrated bidding and sales strategies."

The seminar was broadcast live through the Ministry of Foreign Affairs' YouTube channel, 'Latin Square of the Ministry of Foreign Affairs.'

The government plans to reorganize domestic and overseas FTA utilization support systems so that Korean companies can respond to trade changes such as the reorganization of Global Value Chains (GVC) and the spread of digital transformation by utilizing FTAs.