The Chamber calls for the removal of all distortions present in the market of food raw materials, of which sugar is one of the most important and widely used. Marco Cercone, president of the Chamber, noted that the monopoly has raised prices up 22%, and said increase makes it impossible for the food industry to compete, taking its highest toll among small and medium companies.

“As we have expressed previously, when a sector enjoys special laws which protect it and turns it into a monopoly, in addition to having the protection of an excessive 45% tariff, said sector must not tie its prices to the international market only when they go up”.

More on this topic

Competition, Protectionism and Monopolies

December 2020

After Grupo Lala decided to close the operations of its dairy production plant in Costa Rica, a debate began over whether Dos Pinos' dominance in the local market was due to protectionist policies or to the brand positioning, quality and price of its products.

Although at the beginning of 2019 Lala announced that it had invested $14 million in the purchase of high technology machinery and in the expansion of its dairy plant in San Ramón, province of Alajuela, on December 1, 2020 it informed that they decided to close operations.

Another Attempt to Defend Sugar Monopoly

March 2017

With a lawsuit against the Ministry of Foreign Trade in Costa Rica the virtually monopolistic Liga Agrícola Industrial de la Caña de Azúcar is attempting to limit the quotas for historical importers of the grain.

The administrative proceedings presented by Liga Agrícola Industrial de la Caña de Azúcar (LAICA) against the Ministry of Foreign Trade (COMEX), aim to limit the quotas for historic imports of sugar, and could have consequences for other mass consumption products in the country.

Governments who Favor the Few at the Expense of the Many

February 2017

A change of minister in Costa Rica will aid in increasing the cost of sugar via an import tariff hike, harming consumers and the food industry, and increasing protection for the powerful sugar lobby.

EDITORIAL

The decision taken by the new chief of the Ministry of Economy reflects a clear interest in meddling in a process that should be resolved at a technical and non-political level. The decision to declare whether or not dumping occured in a particular market and what measures should be taken in response, corresponds to the office of Trade Defense, and should be free from any possible political bias.  

Sugar Conflict Continues in Costa Rica

August 2016

At the request of the Agricultural Cane League the government has extended until the end of November the investigation into alleged dumping against the sugar importer La Maquila Lama.

The as yet unresolved conflict could once again make its presence felt with the import of organic sugar on the part of the Agricultural Cane League and also the importer La Maquila Lama, who filed with the Commission to Promote Competition (COPROCOM) a complaint of alleged monopolistic practices. See: "Sugar War in Costa Rica".