One of the reasons why the United States signed the Memorandum of Understanding Agreement for consultative dialogue on supply chains and support between countries of the Alliance for Development in Democracy (ADD) is the shortage that this country faces due to the lack of supply of products, indicated the undersecretary of Economic Growth, Energy and Environment of the Department of State, José W. Fernández.
He expressed that “part of the problem we have is that we are suffering from a demand crisis that we see particularly when we have economic problems”, a situation that prompts the State Department to evaluate offers from other countries to enrich their supply chain and supply the demand.
“We are seeing a supply crisis,” he clarified during a teleconference with members of the press from the countries that are part of the agreement to which Free Journal He was invited.
The official said that the resources to provide goods to the North American State have been reduced due to the problems that are registered in Asia due to COVID-19 and due to Russia’s “brutal” invasion of Ukraine.
Benefits
Fernández cited three direct benefits that Costa Rica, Panama and the Dominican Republic will receive as members of the ADD, to which Ecuador recently joined: international visibility, impact as an interlocutor with the US and the strengthening of commercial ties.
The agreement contemplates that in each country it is possible to reduce transportation costs and work will be done to guarantee that each company that participates has the necessary supplies for the manufacture of articles and products.
The representative of the Department of State assured that other countries had requested to channel some type of agreement to meet the existing demand, however, the ADD managed to meet the requirements of location, stability and manpower to join efforts and strengthen the resilience of the supply chain of the signatory countries.
Fernández recognized that the most “difficult thing is to get to the concrete fact”, for which the ADD countries promised to look for specific issues to help strengthen the supply chain and serve as a springboard to increase exports with lower costs.
Scope
After the signing of the agreement that commits the countries to offer timely information to materialize the trade agreementthe representatives evaluated the scope in the short term and determined that it will be possible to establish investment costs for private sector companies without variation between countries.
Creating mechanisms to facilitate the processing of investment and marketing among member countries, as well as sharing good practices to strengthen the supply chain and thereby attract capital from international investment organizations, are other objectives.
