Central America

The pandemic will cause remittances in the SICA region to fall by $6 billion

The most affected sectors by the COVID-19 in the SICA region were tourism, commodity exports and remittances. As a result from the international crisis, countries in the Central American Integration System are likely to see a drop in remittances of up to $6 billion this year.

The projection can be found in the Regional Economic Report. It was developed by the Secretariat for Central American Economic Integration (SIECA) and the Executive Secretariat of the Central American Monetary Council (SECMCA).

“If the projected proportions were maintained, the impact caused by the drop in remittances to the Central American region, Panama and the Dominican Republic, would be close to $6 billion,” the economic report states.

In El Salvador, income remittances registered negative balances in March, April and May. With falls of up to -40 %. But in June they recovered. And they showed a 9.8% year-on-year growth. While in July they grew by 14.1%.

Central America

Mexico’s president proposes regional economic summit at CELAC

Mexican President Claudia Sheinbaum held bilateral meetings on Wednesday with the presidents of Uruguay (Yamandú Orsi), Guatemala (Bernardo Arévalo), Brazil (Luiz Inácio Lula da Silva), and Colombia (Gustavo Petro) ahead of her participation in the IX Summit of the Community of Latin American and Caribbean States (CELAC) in Honduras.

“Before the CELAC Summit, we met with the presidents of Uruguay, Guatemala, Brazil, and Colombia. We are sister nations that share a progressive vision,” Sheinbaum posted on social media.

During the meetings, Sheinbaum called for a Summit on Latin America’s Economic Wellbeing, in response to the ongoing U.S. tariff war. She stressed the urgent need for unity and solidarity among Latin American and Caribbean governments and peoples to deepen regional integration.

Amid the new round of tariffs imposed by U.S. President Donald Trump, Sheinbaum reiterated her belief that the economic integration Mexico has with North America should be extended to the entire continent.

Central America

Colombia to host fourth EU-CELAC Summit in November

The Fourth Summit between the European Union (EU) and the Community of Latin American and Caribbean States (CELAC) will take place on November 9 and 10 in Santa Marta, Colombia, according to a joint statement released Wednesday by the Colombian government and the European Council.

The summit will be co-chaired by Colombian President Gustavo Petro, in his role as pro tempore president of CELAC, and European Council President António Costa, the statement added.

The last EU-CELAC summit took place in July 2023 in Brussels, when both blocs agreed to hold these meetings every two years.

The summit brings together the 27 EU member states and the 33 CELAC countries, representing 14% of the global population, 21% of global GDP, and one-third of the members of the United Nations, the communiqué noted.

Central America

CELAC condemns unilateral sanctions in ‘Tegucigalpa Declaration’

The Community of Latin American and Caribbean States (CELAC) formally rejected on Wednesday the “imposition of unilateral coercive measures that violate International Law, including those that restrict international trade.”

This position was expressed in the “Tegucigalpa Declaration,” which was “adopted by sufficient consensus among 30 member states” out of the 33 countries that make up the regional organization.

According to Honduran Foreign Minister Eduardo Enrique Reina, there was “sufficient consensus among 30 states” to adopt the declaration, with three countries distancing themselves from the resolution.

“Argentina, Paraguay, and Nicaragua decided not to adopt the declaration for their own reasons,” Reina explained.