Exporting firms will be helped in the processes to be followed for export to Europe under the AA agreement.
From a press release issued by the Ministry of Economy of Guatemala (Mineco):
As provided for in the Association Agreement with the European Union- AA - , the governments of the member countries are responsible for preserving the origin of the products exported, for this reason the Ministry of Economy, through the Directorate of Foreign Trade Administration - DACE - has created a streamlined and efficient mechanism to support Guatemalan exporters wishing to ship products to the European - EU, as well as supporting them with training on obtaining EUR.1 circulation certificates.
Of the 235 companies that export to Europe only 3 have completed the process for doing so using the benefits of the AA.
"Companies must obtain a certificate from the Ministry of Economy to verify the designation of origin," said Fernando Herrera, director of export services to the Guatemalan Association of Exporters (Agexport).
Herrera told Prensalibre.com that if companies do not have the certificate then they will not be able to export to the European market from 1 January 2014. "... the GSP PLUS is still in effect, but from next year only the certification will be valid and we are concerned that only three companies have obtained it," he added.
The country will ask the European Union to discuss the geographical designations in parallel so that the agreement can enter into force in December.
This was explained by Estuardo Castillo, president of the Guatemalan Association of Exporters (Agexport), who added that "this is what Costa Rica did and there was a good result."
"... he also said that if that does not happen, it is possible to negotiate the extension of the Generalized System of Preferences (GSP +), however, he said that with this system only 52% of the cuotas pay less taxes and quotas for sugar, shrimp , honey and agricultural products could be granted to other countries ", reported Prensalibre.com.
The delay is due the eight still unresolved oppositions filed by Italy, France and Spain in September related to Geographical Indications.
Sergio de la Torre, Guatemalan Economy Minister had announced that the agreement would take effect in November, however, everything seems to have be delayed by another month.
"... Guatemala is clearing up issues among the three European countries, but reiterated that it has met all the requirements of AA", reported Prensalibre.com.
Foreign companies have objected to the registration of European GIs only 6 hours before reaching the deadline to do so.
From a statement by AGEXPORT:
AGEXPORT regrets that six hours before the deadline for the period of opposition to the registration of geographical indications, requested by Europe, foreign companies have raised objections.
Guatemalan exporters at an AGEXPORT meeting, and who have been waiting for the moment of entry into force of the Association Agreement with Europe, regret that foreign interests in domestic production, have objected at the last moment in Guatemala, although they knew that the national legislation gives a high level of protection to both local and international entrepreneurs operating in the country using names of cheeses originating in European territories.
The country has fulfilled the last requirement which was pending, the registration of geographical indications, meaning that the Association Agreement could come into force in November.
The Ministry of Economy will notify on September 30 that it has complied with the ratification of the Association Agreement with the European Union and with the 60-day period required for amendments to the Law on Industrial Property related to geographical indications.
The country has resolved the differences it had with Italy, allowing the Association Agreement with the European Union to enter into force as soon as possible.
From a press release by the Ministry of Economy of El Salvador:
Today, September 23 the Finance Minister, Armando Flores and Deputy Minister of Economy, Mario Roger Hernandez, met with the Deputy Minister of Economic Development of Italy, Carlo Calenda in order to discuss the Italian opposition to the entry into force of the Association Agreement with the European Union (ADA) for El Salvador, after Italy, in July this year, did not vote for the Agreement to enter into force on 1 August 2013 for El Salvador and Costa Rica and did vote to give it to Nicaragua, Honduras and Panama.
Italy has asked the Public Registry of Costa Rica for an extenstion of one month to defend three of the six GIs for cheeses under discussion.
The request was made at the Public Registry on September 13 when documentation was presented in defense of the cheeses, Emmental Provolone Valpadana and Manchego. "The appellation of origin of the latter is Spanish, but Italy is taking up the case", reported Nacion.com.
It is an issue to keep in mind to add value to Central American export products and to avoid trade disputes.
Months ago the Guatemalan Congress ratified a number of amendments to the Copyright Act in order to protect Geographical Indications and Designations of Origin as provided by the World Intellectual Property Organization (WIPO) and requested within the Association Agreement with EU.
Conflicts over designations of origin or geographical indications are becoming more common.
An article in Elfinancierocr.com reports that "Costa Rica should identify appropriate channels for conflict resolution if it wants to increase its share in the market with products which are protected by designation of origin (DO) or geographical indication (GI)."
Cheese Producers in Costa Rica and El Salvador opposed the registration of the Italian brands Provolone Valpadana , Fontina, Gorgonzola and Parmigiano Reggiano.
The Association Agreement with the European Union (AA) will not come into force on August 1 for Costa Rica and El Salvador, but on October 1, as long there is a resolution to the conflict caused by Costa Rican and Salvadoran dairy producers who expressed their opposition to the registration of geographical origin of Italian cheeses.
National regulations are to be adjusted to conform to the Association Agreement with the European Union, giving added value to designations of origin or geographical identifications.
From a press release issued by the Legislative Assembly of El Salvador:
The full legislature has passed amendments to the Law on Trademarks and Other Distinctive Signs, with 79 votes, which will allow the maximization of production by small and medium businesses, the specialization of product quality and diversification of export markets.
Both blocks decided to concede in what seemed to be irreducible positions, making last minute concessions yesterday.
One of the key issues was denominations of origin: Europe demanded laws to protect brands such as champagne and manchego cheese. The other was how many dairy products would be allowed into the Central American market. The latter was closed when Central America agreed to allow 1.900 tons of powder milk with reduced tariffs and 3.000 tons of cheese, excluding fresh cheese.