U.S. Southern Command

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1 U.S. Southern Command Virginia Economic Development Partnership Opportunities in the Northern Triangle: Guatemala, Honduras and El Salvador Scene Setter MAJ Kelly McCoy, J-5 9 March 2015 THE OVERALL CLASSIFICATION OF THIS BRIEFING IS:

2 Background July 2014 Presidents of Honduras, El Salvador, and Guatemala present a letter outlining the Alliance for Prosperity Plan to President Obama November 2014 N. Tier Presidents heads of state and U.S. Vice President attend Investing in Central America: Unlocking Opportunities for Growth at the Inter-American Development Bank (IDB); Alliance for Prosperity Road Map released January 2014 U.S. Southern Command hosts an economic forum The Changing Security Landscape in the Northern Triangle: Providing New Opportunities 29 January 2014 White House releases: FACT SHEET: Promoting Prosperity, Security and Good Governance in Central America detailing our strategic approach to enabling the Alliance for Prosperity 3 March 2014 Presidents of El Salvador, Guatemala, and Honduras, along with the President of the Inter-American Development Bank and Vice President Biden sign a joint statement designed to advance implementation of the Alliance for Prosperity 2

3 U.S. Strategy for Central America An economically-integrated Central America that provides economic opportunities for its people, more democratic, accountable, transparent, and effective public institutions, and a safe environment for its citizens to build their lives in peace and stability. Prosperity & Regional Integration Promote trade facilitation under existing free trade agreements Promote transport and customs/border integration Promote efficient and sustainable energy Link CENTAM economic and energy markets to North America Workforce and business development Improved Governance Improve Revenue Collection and Public Sector Fiscal Management Increase Role and Impact of Civil Society Strengthen Access, Efficiency, Accountability, and Independence of Judicial Institutions Reinforce Democratic Institutions Target Corruption Enhancing Security Police Reform Improve Community Security through Community and Prevention based Models Defense Cooperation Attacking Organized Crime Security Governance Economic 3

4 Alliance for Prosperity Challenges & Drivers of Instability Economic Challenges Low per capita Job Growth Income Inequality Lack of Capital Investment Violence Driver High Levels of Violence and Insecurity Effects of Climate Change & Natural Disaster Family Reunification Host Nation Efforts: Strategic Lines of Action Stimulate the Productive Sector to Create Economic Opportunities Policies to attract private investment Promote Strategic sectors (i.e. textiles, agro-industry, light manufacturing, and tourism) Increase focus on international trade Developing Opportunities for Our People Increase inclusion of young people and women into the workforce Tighten Links between labor supply and business demand Build and Strengthen Human Capital Improve Public Safety and Enhancing Access to the Legal System Strengthening Institutions to Increase People s Trust in the State Fight Drug trafficking and organized crime while promoting preventative programs Boost programs to prevent violence Strengthen institutions responsible for public safety Modernize justice system through reform plans Ensure financial capacity Increase transparency Security Governance Economic 4

5 Strategic Players U.S. Strategy for Central America Executive Leadership Coordination Alliance for Prosperity Lead Organizer Technical Secretariat Coordination Supporting Departments Economic Governance Security Coordinated effort led by Vice President Biden and the Presidents of Honduras, El Salvador, and Guatemala Inter American Development Bank serves as Technical Secretariat for Alliance for Prosperity National Security Staff leads the interagency effort of implementing the U.S. Strategy and synchronizing with the Alliance for Prosperity U.S. Prosperity Line of Action lead is the Department of Commerce

6 Private Sector Engagement in Central America Institutionalized and structured public-private dialogues in El Salvador, Guatemala, and Honduras Near Term Commitments from partner nations to develop a framework and institutionalizing public-private dialogues Initial dialogues to focus on attainable outcomes and realistic, specific path toward achieving them. Long Term Governments of El Salvador, Guatemala, and Honduras seek to act on the recommendations of the dialogues; USG will assist depending on availability of resources Regional implementation of economic integration activities Commercial Dialogue at the Summit of the Americas Participation from key sectors and/or major employers/foreign investors Launching point for a long term conversation to take place on the sidelines of future Summits Focus on broad regional issues impeding economic growth Develop 5-10 policy recommendations for actions by each government that could directly or indirectly lead to high quality, private sector job growth Dialogues Provide the Parameters for how Economic Growth and Development will take shape; regionally and by country. 6

7 Emergent Traditional Supply/Demand Signals Establishing Market Linkages VA HND GTM SLV Broilers, Cattle/Calves, Milk, Turkeys, Soybeans, Greenhouse, Corn/Grain, Hay, Wheat, tobacco, eggs, cotton lint Agriculture Bananas, Coffee, Citrus, Corn, African palm; beef; timber; shrimp, tilapia, lobster Sugarcane, Corn, Bananas, Coffee, Beans, Cardamom; Cattle, Sheep, Pigs, Chickens Coffee, Sugar, Corn, Rice, Beans, Oilseed, Cotton, Sorghum, Beef, Dairy Products machinery, plastics, vehicles, aircraft; Soybeans, animal feed, meats, unprocessed tobacco; Mineral fuel Services: business, travel & tourism, royalties, financial, telecom, freight & port, education, and insurance Export Import Coffee, Knit T-Shirts, Knit Sweaters, Insulated Wire, & Petroleum Gas Refined Petroleum, Non- Retail Pure Cotton Yarn, Non-Retail Synthetic Staple Fibers Yarn, Packaged Medicaments, Delivery Trucks coffee, raw sugar, bananas, gold, precious metal ore Refined Petroleum, Cars, Packaged Medicaments, Delivery Trucks, Broadcasting Equipment Knit T-Shirts, Coffee, Knit Socks and Hosiery, Electrical Capacitors, Raw sugar Refined Petroleum, Crude Petroleum, Light Rubberized Knitted Fabric, Packaged Medicaments, Planes, Helicopters, and/or Spacecraft US CENTAM Strategy Regionalizing Economic Markets Transport and Customs Border Integration Trade via Existing Free Trade Agreements Efficient & Sustainable Energy Regionalize Energy Markets Workforce Development Facilitate Business Development Alliance for Prosperity International trade Tourism Workforce Development Secondary Education Strategic sectors - Textiles, Agro-industry, light manufacturing Housing and basic services Nutrition and Healthcare Highlighted Country-Level Focus Areas Production of Tradable Goods Sustainable Energy Tourism School Modernization & Education Quality Infrastructure Development Water Security & Management Ecosystem Restoration & Conservation Resilience to Environmental Vulnerabilities Nutrition and Healthcare

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