Automotive Parts Trade Missions to Nicaragua and Honduras, September 26-28
June 7, 2017Todd Peterson, is an International Trade Specialist in the Office of Transportation and Machinery and Team Lead for the Auto Care Association’s Market Development Cooperator Program (MDCP)
The International Trade Administration and Auto Care Association are excited to announce two trade missions to Nicaragua and Honduras for 2017, as part of the Market Development Cooperator Program (MDCP) award the association received from the U.S. Department of Commerce to support export promotion projects in Latin America. Companies do not have to be a member of the Auto Care Association to apply.
The Automotive Parts Trade Missions to Nicaragua and Honduras are designed to inform participants of the local market and provide access to key industry contacts. The number of mission participants is intentionally limited to ensure customized and well-targeted matchmaking scheduling. In addition, U.S. Embassy staff will provide country commercial briefings on the legalities and nuances of doing business in those markets, with the schedule rounded out to include industry-specific networking receptions and site visits. The Auto Care Association’s upcoming missions are an extremely cost-effective way to expand your business prospects in Latin America. The package includes personalized business-to-business matchmaking meetings with foreign industry executives, hotel accommodations and local transportation, networking receptions, interpreters, and country briefings.
The U.S. auto parts sector continues to be one of the largest contributors to total U.S. exports. In 2016, the U.S. exported over $81 billion in auto parts worldwide. One of the promising, but overlooked regions for U.S. automotive aftermarket parts exports is Latin America, particularly Honduras and Nicaragua. Demand for aftermarket auto parts and repair services in these three markets is increased due to aging vehicles. In addition, there is a high level of used-car sales and deteriorating road conditions.
In addition, these countries are Free Trade Agreement (FTA) partners with the United States, which increases U.S. market access by breaking down potential market entry barriers. FTA partnership, product quality, available warranties and geographic proximity, all contribute to the United States having a competitive advantage when entering Latin American markets. Under the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), 100 percent of U.S. consumer and industrial goods exports to the region are no longer subject to tariffs. Since the CAFTA-DR implementation, export to the region have increased by at least 62 percent. The United States is Honduras and Nicaragua’s largest trade and economic partner.
For more information on auto parts exports, please see ITA’s Top Markets Report for Automotive Parts. For more information on the trade mission see www.autocare.org/trade-missions.
Recognizing the opportunities for automotive aftermarket suppliers in Latin America, the International Trade Administration (ITA) awarded the Auto Care Association a three-year matching award of just under $300,000 to support activities designed to help boost exports to that region. This Market Development Cooperator Program (MDCP) has already had two successful automotive trade missions to Latin America. The first mission went to Peru, followed by a mission to Guatemala 2016. There is also an upcoming trade mission to Colombia, June 7-8 that is closed.
The deadline to register for the Nicaragua and Honduras mission is July 31, 2017.
For more information contact:
Kellie Holloway or Todd Peterson
Tradeology, the ITA Blog 