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This research uses the global value chain (GVC) framework to analyze Central America’s participation in global manufacturing value chains, to understand the region’s competitiveness drivers and to evaluate potential risks to continued participation if US trade policies were to change. Central America’s entry into manufacturing GVCs has been through the insertion in various chains including apparel, wire harnesses (automotive) and medical devices. These sectors span low-, medium-, and high-tech manufacturing. They are important contributors to the region’s export basket, and the US is central to their trade. To understand how the region operates in these manufacturing sectors, this report analyzes the participation of select countries in each of the three value chains: apparel (El Salvador, Guatemala, Honduras, and Nicaragua), wire harnesses (Honduras and Nicaragua) and medical devices (Costa Rica and Dominican Republic).
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