Due to the possible change in the regulations established by the European Union on the use of agrochemicals in the production of the fruit that enters their territory, exporters in the region are on the alert for the possible complications that this would generate in the commercialization.
In order to protect the health of consumers, European authorities could vary the maximum residue limits (MRL's) that food entering the region may contain.
The World Trade Organization created a special group to address a complaint filed by Guatemala for alleged export subsidies granted to sugar cane producers in India.
The WTO found that the price band that Peru applies to imports of sugar, rice, corn and some dairy products is inconsistent with the agreements of the organization.
From a statement issued by the Ministry of Economy of Guatemala:
A report by the Appellate Body which ruled in favor of Guatemala was announced today in Geneva, Switzerland, to the Members of the World Trade Organization-WTO.
Guatemala is considering suing the South American country through the WTO after banning the duty-free entry of 21 000 metric tons of sugar, despite the existence of a partial scope agreement since 2012.
An Ecuadorian fizzy drinks producer failed to receive the product due to a blockade by authorities of the country, even though there is a partial agreement which guarantees the duty free transaction.
Tires, ceramics, auto parts and raw materials are part of the list of 2,800 products which will incur higher fees in order to enter the Ecuadorian market from March 11.
From a statement issued by the Ministry of Foreign Trade in Ecuador:
The external landscape has changed expectations regarding our balance of payments and we are facing a new scenario which affects the commercial arena which is low oil prices, the appreciation of the US dollar, so it is necessary to take measures to regulate the general level of imports and balance our trade balance.
The WTO has ruled that the price band which Peru applies to imports of sugar, rice, corn and dairy products is inconsistent with the organization's trade rules.
From a report by the World Trade Organization (WTO):
"... The recommendations and rulings made by the Dispute Settlement Body aim to achieve a satisfactory resolution of the matter in accordance with the rights and obligations under this Understanding and the covered agreements.
Central American countries need to implement a series of improvements in customs procedures in order to meet the requirements of the agreement for the facilitation of international trade.
Within two years, as part of the commitments made in the 2001 Doha Round of the Bali Agreement, signed in 2013 by 160 nations belonging to the World Trade Organization (WTO), including Central America, governments will have to harmonize their customs systems ensuring trade facilitation. However, to date institutional progress on issues established by the Agreement such as simplification, harmonization and automation of procedures for international trade have not happened, particularly in relation to the requirements and formalities for import, export and transit of border freight.
Peru has requested to block Guatemala´s incorporation to the alliance due to a dispute over tariffs which started in 2013.
Peru requested that Guatemala not be part of the Pacific Alliance because of a trade conflict between both nations which started in 2013. This Central American country complained to the World Trade Organization (WTO) the Peru established a band of income taxes for sugar according to variations in international prices, something that was not agreed to when the FTA was negotiated.
The World Trade Organization aims to reduce by half the costs added to products as they pass through customs offices.
An article in Elfinancierocr.com reports that "... all WTO members recognize that progress can be made in cutting costs associated with inefficiencies in order to make trade more efficient."
"... The idea is that the WTO reaches agreements related to this and other issues at the Ninth Ministerial Conference to be held in Bali, Indonesia, from 3 to 6 December. "
The Russian trend of moving towards a healthier life style has positively influenced the consumption of canned vegetables, juices and nectars.
From an article by the Costa Rican Foreign Trade Promotion Office (PROCOMER):
According to a study conducted by the firm Intesco Research Group in Russia, production of canned vegetables will increase with the population growth in large cities.
Although the Peruvian Congress has already ratified the FTA, they have indicated that it will not enter into effect until the dispute raised with the WTO over sugar has been settled.
The controversy which has been passed on to the WTO over the rise in Guatemala sugar tariffs is keeping the entry into force of the Free Trade Agreement between the two countries paralyzed.
The World Trade Organization has agreed to establish an arbitration panel to resolve trade disputes between the two countries.
According to Eduardo Sperisen, Guatemala's ambassador to the WTO, in the next 20 days both Guatemala and Peru will have to appoint three experts to the panel to discuss the conflict.
Prensalibre.com published: "The origin of the controversy is that although Guatemalan sugar was already entering the Peruvian market, the country implemented a hike in tariffs." This measure, according to Guatemala, caused trade of the product to be limited and producers to lose market share.
A request has been made to establish a "Special Group" for the settlement of trade disputes between the two countries.
From a press release from the Government of Guatemala:
The Ministry of Economy of Guatemala, through the Permanent Mission in Geneva, has requested that the Dispute Settlement Body (DSB) of the World Trade Organization (WTO) establish a "Special Group" to be responsible for resolving disputes between Guatemala and Peru.
The Costa Rican government has informed the WTO that from March next year it will cease the pricing system by which domestic rice producers are subsidized.
From 1st March 2014 rice subsidies will be removed, which could end the dispute with the U.S. and other WTO members on account of aid given to rice farmers.
In a statement that the Government of Costa Rica sent to the World Trade Organization (WTO), the country said it will eliminate aid for rice farmers through a decree approved last month.
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