Central America faces different dilemmas that could affect the economic and political stability of the region and in which collaboration or involvement by the government of the United States could have a positive effect in the search for a solution. The countries of the northern triangle (Guatemala, El Salvador and Honduras) struggle against serious internal insecurity that could increase, in case the Trump administration decides to deport gang members, as he had already announced during his campaign.
"One of the priorities for Central America is a national security of the Central American countries. “The reality is that, in my personal opinion, the United States must help Central American countries bring those individuals to justice in their countries of origin. The deportation of immigrants with criminal backgrounds could mean instability for the Central American region and the United States must help to guarantee the security in those countries. We can help with these initiatives,” asserts Arturo ‘Art’ Estopiñán, who worked as chief of staff for the chair emeritus of the Foreign Affairs Committee, Ileana Ros- Lehtienen, and who has 27 years of experience in the U.S. Congress.
In the specific case of Nicaragua, the Nicaraguan Investment Conditionality Act (also known as the Nica Act), could bring devastating effects to the country, since its actual wording would have adverse economic ramifications and would create a negative economic environment for investment in that country. “As banker and entrepreneur, this legislation is very worrisome for Nicaragua,” asserts Robert J. Argüello, president of the consulting firm CEO Advisors, which hired Estopiñán’s firm, The Estopiñán Group, to lobby and stop the Nica Act as it was written, “Because it would harm Nicaragua enormously and would have serious consequences for the population.” Also, sending millions of Central Americans back to their country of origin with an uncertain immigration status is also worrisome for the region. During his campaign, Trump said he would kick out 11 million undocumented immigrants.
Open Fronts
In general, all the Central American countries would be affected with other common problems, including the renegotiation of the Central American Free Trade Agreement between Central America and the United States (Cafta). With that in mind, and with the changing political atmosphere in Washington, and because of the policies that the Trump administration wants to pass, there could be a highly negative impact in the region.
Estopiñán asserts that any approach to the U.S. government must be made in a proactive manner, with those who can guide the Trump administration on what are their priorities, to reach a win-win relationship with Central America, using advisors who know well how the White House, Congress, and the political system of the country work. ‘Unfortunately, there are many interests and issues that this administration has to deal with, and it won’t necessarily focus on Central America. We have to show (to the Trump administration) the opportunities that exist so that Central America and the United States can both benefit from them. I think that if the Central American governments offered opportunities where both regions would benefits, maybe different economic initiatives where they invited U.S. companies to make all kinds of economic investments, mutually beneficially, that would be something that would be welcomed by the Trump administration”, says Estopiñán.
Under Cafta, Central America exported $4.818 billion to the United States, according to the Secretariat of Central American Economic Integration, says the Monitor of Central American commerce in its 2016 second trimester edition, which represents 33.36% of the total $14.441 billion of all Central American exports. Estopiñán figures that all of the trade agreements are going to be reviewed, which puts the region in a vulnerable position. “When and how, it’s not known for sure. But I do believe that all the trade agreements are going to be looked at and maybe changed. Trump wants to start with Nafta and with our economic relationship with China, because he believes that both countries have an unfair advantage over the United States. After that, he’s going to look at the other trade agreements to see what needs to be changed. It’s important that the countries which have trade agreements with the United States look at them and have a plan. There’s no need to wait until the administration says what needs to change, without being prepared to have your own initiative and adapt those plans to a new administration with a proactive proposal”, he says.
Extensive Experience
Congressman Dan Burton, chairman of the Western Hemisphere congressional subcommittee, has a long history and knowledge of legislative matters. Burton, who is now in the private sector, is up to speed on all the projects and issues related to Latin America and can help with that in Arturo ‘Art’ Estopiñán To work in the Capitol of the United States, which is undoubtedly one of the most powerful legislative bodies of the world, has opened for me an enormous perspective to get to know other countries, other cultures, as well as how the Congress of the United States, the White House, and the executive branch work in general. It’s a very important process, that not too many people know, how bills go through the process, how the executive branch works. There is a whole series of complex bureaucracies, but with my years of experience, I’ve had the opportunity to see firsthand how this all this legislative, administrative, and White House, works. Number two, I have had the opportunity to have contacts all over the world, because of the various congressional trips that I went on with my colleagues and other chiefs of staff around the world. It was an unique opportunity, because I still maintain some of those relationships, with diplomatic and political leaders, in Asia, Europe, Latin America, and the Middle East, in particular.” NMG Trends the new Trump administration and Republican Congress. “Now, with Congressman Burton, we’ve formed an alliance to help companies, associations, or individuals from Latin America who would like guidance and advice in the nation’s capital, Washington, D.C. We have the experience, the contacts, and a proven winning record”, assures Estopiñán.
From Difficulty Comes Opportunity
According to the expert, what looks to be short-term problems for the Central American governments presents a series of opportunities of growth for the region. For Estopiñán, “Yes there are opportunities for economic growth, but one understands that it’s not free, that it’s through trade agreements.
According to the specialist on congressional affairs, there are key opportunities, if and when these directly benefit the United States and Central American nations.
Central America has an impressive population of young people and important natural resources, two aspects that, unfortunately, previous administrations (in the United States) did not know how to deal with well. If this administration takes an interest, not only in helping Central America -- because we have to work together as neighbors– but also in establishing mutually beneficial relations, it would be very positive for both sides, because if Central America establishes itself politically, from that political stability comes an economic growth that will result in more funds for Central America to buy products from the United States.
By Arturo Castro Barrantes
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This past month, I had the great opportunity to visit Central America with my colleague Lisa Coen of Avenue Strategies. We had great dialogue with leaders from El Salvador, Guatemala, Honduras and Nicaragua. Businesses in these countries are providing unique services and products to the United States and offer integral trade partnerships for US companies. The discussion of trade issues and domestic legislation that will affect Central America is of great interest in the region and should be an important focus for us in the United States, as these partnerships are crucial to our global economy.
