Identifier
Created
Classification
Origin
05SANSALVADOR2691
2005-09-28 22:16:00
UNCLASSIFIED
Embassy San Salvador
Cable title:  

EL SALVADOR WILL NEGOTIATE TRADE AGREEMENT WITH

Tags:  ES ETRD PREL TW 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SAN SALVADOR 002691 

SIPDIS

E.O. 12958: N/A
TAGS: ES ETRD PREL TW
SUBJECT: EL SALVADOR WILL NEGOTIATE TRADE AGREEMENT WITH
TAIWAN

REF: A. A) SAN SALVADOR 1440


B. B) SAN SALVADOR 2333

UNCLAS SAN SALVADOR 002691

SIPDIS

E.O. 12958: N/A
TAGS: ES ETRD PREL TW
SUBJECT: EL SALVADOR WILL NEGOTIATE TRADE AGREEMENT WITH
TAIWAN

REF: A. A) SAN SALVADOR 1440


B. B) SAN SALVADOR 2333


1. The September 27 press reported that El Salvador and
Taiwan had agreed at the September 26 Managua summit of
Central America, Taiwan and the Dominican Republic to
negotiate a free trade agreement. President Saca made the
announcement that the two countries would begin talks very
soon following a private evening meeting with Taiwan
President Chen Shui-bian. "El Salvador cannot remain at a
disadvantage," Saca is quoted as saying, in reference to the
fact that Guatemala and Panama have already agreed to an FTA
with Taiwan, "since Taiwan could be an excellent buyer of
sugar and coffee; they are interested in closing this
relationship as soon as possible." A statement on the
President's web site states that El Salvador will seek an
agreement that gives Salvadorans the ability to enter Taiwan
and that expands exports from coffee and several other
products, in particular to include sugar.


2. The Ministry of Economy's trade policy deputy director
confirmed on September 28 that El Salvador would negotiate an
agreement with Taiwan (despite an earlier declaration - see
ref a - suggesting that the Ministry would prefer to
consolidate its CAFTA commitments rather than seek out new
trade deals). El Salvador will be looking to complete the
negotiations quickly, said this official, who also
acknowledged that there had been little preparation for trade
talks ("falta coordinacion").


3. According to Central Bank figures, in 2004, El Salvador
exported goods valued at 2.06 million to Taiwan and imported
goods of 27.8 million. Aside from merchandise trade, El
Salvador remains keenly interested in attracting Taiwanese
investment. Taiwan reportedly announced at the summit the
creation of a 250 million dollar fund as part of a program to
support Central American investment by Taiwanese businesses.
Taiwan announced earlier this year the establishment of an
industrial park to house agroindustrial projects and has been
working to put this project together (see ref b). Comment:
although the government has offered Taiwan land near the
international airport, local contacts told Emboff that the
Taiwanese have been looking at property more toward the
cooler, western area of the country where worker productivity
would not be as negatively affected by hot weather.
Barclay