While in 2012 a company had to pay about $50 for the export formalities, up to September this year, that amount was $125.
Export procedures include certificates of origin, phytosanitary certificates, commercial invoices, fumigation, cargo insurance, among other things, according to the Foreign Trade Promotion Office (Procomer).
Foreign sales in the first four months of the year totaled $467 million, below the $543 million generated from sales abroad in the same period in 2013.
The cost of electricity, changes in the exchange rate, the price of raw materials and competition from informal firms are part of the factors that explain part of the drop in foreign sales in this industry.
The CEO of the multinational confirmed that the closure of the plant did not respond to reasons of global strategy but to the high operating costs in the country.
An article in Crhoy.com reports that in a presentation for employees of the company, the executive director of Intel, Brian Krzanich said that "the decision in Costa Rica was not part of plans to reduce the company's overall payroll but 'had more to do with the cost of this operation, the long-term operational cost of the plant. We spent several years working with the Government of Costa Rica, trying to reduce the overall cost of this operation.'"
The business climate, smuggling and taxes have forced the tobacco company to close its operation in the country.
In a letter sent on March 5, to their suppliers, British American Tobacco announced the closure of its operations in El Salvador. The increase in smuggling and lack of competitiveness in terms of cost are some of the reasons for its departure.
Increased production costs and increased international competition have forced 71% of producers to turn to other crops.
The reasons for this, explained Monica Segnini, president of the Chamber of Exporters of Costa Rica (Cadexco ) are first "the exchange rate and the appreciation of the colon over the last three years, added to which is the increase in production costs".
A lack of specialized technical personnel in manufacturing is raising business costs and reducing productivity.
The lack of staff qualified to repair machinery is not only raising costs but is also creating additional delays, causing a decrease in customers and jeopardizing business continuity. It is estimated that the poor repair of machines makes operating costs of enterprises up to 20% more expensive.
Employers argue that the high costs of energy, transportation and social contributions are affecting performance of the sector.
The high costs of transportation, electricity and the new increase in employer social security contributions is threatening the industrial sector, despite the fact that in 2013 it grew by 4.6%. These factors, according to Rodrigo Caldera, president of the Chamber of Industries (Cadin), are preventing further growth of the sector.
For the second consecutive year the increase was agreed between the private sector, trade unions and the Government.
A press release from the Government of Guatemala reads:
The Government of Guatemala has announced an adjustment to the minimum wage for 2014, representing an increase of 5%, as was announced by the Minister of Labor, Carlos Contreras. The increase will benefit 1.5 million Guatemalans formally working in the country.
The construction consortium Grupo Unidos por el Canal is demanding $1.6 billion for cost overruns and is threatening to stop the works.
Citing the existence of undetected geological faults Grupo Unidos por el Canal (GUPC), is demanding from the Panama Canal Authority (ACP), payment of $1.6 billion for cost overruns caused by alterations to the original technical conditions of the tender awarded to GUPC.
Grupo Unidos por el Canal has withdrawn its claim for $586 million for additional costs for the construction of the third set of locks.
"At the moment there are no suits waiting for resolution," said Jorge Luis Quijano, ACP Administrator, who also said that if the construction consortium decided to withdraw from the work, the ACP has the ability to take over management of the extension of Canal.
An ECLAC study has revealed that companies in Guatemala and El Salvador pay the highest costs because of organized crime in Latin America.
According to data from the Global Competitiveness Index 2012-13, analyzed by the Economic Commission for Latin America and the Caribbean (ECLAC), in its report on safety in the logistics sector in the region, Guatemala has a score of 1.86, on a scale of 1 to 7, regarding the influence of crime and violence in operating costs of enterprises, where 1 is "very much" and 7 means "nothing".
The Logistics Business Council and its 16 associated companies are calling for dialogue in search of a solution which does not mean the establishment of a new tax.
"We are taking this to the highest authorities of the State, and stressing the urgency of suspending the hiring process in order to foster the necessary consultations with the participation of all of the sectors involved," said the Logistics Business Council (Coel by its initials in Spanish).
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