The risk that new president of the United States Donald Trump keeps the protectionist promises he formulated during his election campaign continues to be in force and, according to the Central American Institute of Fiscal Studies (ICEFI), that situation must be seriously analyzed in the countries of the region.
The ICEFI studied the possible impacts that the new president’s proposals on migration, trade and investment could have on Central American countries, especially on their economies and fiscal systems.
In immigration matters, during his campaign, president Trump promised massive deportations and actions that would criminalize migration. For the institute, these measures could generate problems for El Salvador, Honduras and Guatemala (the so-called Central American Triangle).
Regarding foreign trade, Trump promised to review or even remove the United States from free-trade treaties, which could include the US-Central America-Dominican Republic Free Trade Agreement (DR-CAFTA), which made permanent 80% of Central American products included in the Caribbean Basin Initiative (CCI), covering a trade volume of $ 30 billion.
The Institute explained that a restrictive trade policy towards Latin America, and in particular towards Central America, could deepen the decrease of the exports of the region towards this important market.
IECFI made a call for democratic dialogues to reflect on this reality, with the aim of promoting social and fiscal agreements that increase Central American integration.