Sugar: Free Trade Loses A Battle

In Costa Rica the virtually monopolistic Industrial Sugar Cane Agricultural League is supporting a recent decree that protects blocking imports of sugar by forcing sugar fortification to be done it its place of origin.

Wednesday, November 4, 2015

EDITORIAL

A statement issued by the Industrial Sugarcane Agricultural League (LAICA) abounds in views on the relevance of sugar fortification -which nobody questions-, and on the supposed benefits that the company brings to the Costa Rican consumers, including " stable prices. "

Price is the main theme, and in terms of benefits to consumers, the sugar market in Costa Rica, with all the quality conditions that are required - should be freed up so that the free interaction of supply and demand is what establishes price, and not a production structure that -because it is protected- does not provide incentives to improve its productivity.

It is clear that the imported sugar can be subjected to the process of fortification in the country, and that the aforementioned decree forcing fortification at source is a non-tariff measure, probably justified in legal terms, but NOT in terms of defending consumer interests.

See Costa Rica: Obstacles to the importation of sugar

From a statement issued by the Agricultural Industrial League for Sugarcane (Laica):

Sugar fortification aims ensure nutritional benefit for those who consume sugar with vitamin A

• Laica provides sugar fortified with strict quality controls and processes outlined by the World Health Organization

November 3, 2015. San Jose, Costa Rica.
In contrast to unfounded statements by recognized predators in the market and domestic production, the Ministry of Public Health has sufficient powers to ensure that, sugar products imported from other countries for direct consumption, arrive fortified come, which is reasonable and has been well justified by the Ministry of Health. The proposal is very well supported, and is consistent with GATT regulations and domestic legislation.

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