Taiwan signed free trade agreements with two Central American countries-Honduras and Salvador-in May 2007. Auto parts are now among the major categories of Taiwan`s exports to Central America. The favorable tariffs offered by the two trading partners could also boost Taiwan`s auto parts exports to the Americas.

Taiwan has signed similar deals with Nicaragua, Panama, and Guatemala. The FTA will benefit Taiwan`s exports to Central America and also encourage Taiwanese investment in the area, where exporters enjoy favorable tariffs on exports to the U.S. and other markets in the region.

Tires and other auto parts, along with textiles and steel materials, are traditionally among the major items of Taiwan`s exports to Central America, where a total of five countries have respectively signed an FTA with Taiwan.

CENS, September 13, 2007