Both countries have been granted import quotas for rice and wine as compensation for the increase from 35% to 62% in the tariff for milled rice.
Authorities at the Ministry of Agriculture indicated that Uruguay has been granted a quota 11,080 tons per year, between milled grain, unhusked and parboiled rice. Purchases made outside the established quota will incur the 62% tax.
Citing the old concepts of food sovereignty, protection is being given to the inefficient production of the few while the consumption capacity of the poorest is punished.
As expected, the government of Luis Guillermo Solís has decided to apply the safeguard measure requested by rice farmers, increasing the tax paid on imports of milled rice from 35% to 62%, which in practice only applies to rice bought in Argentina and Uruguay.
Rice producers fear not being able to sell their rice harvest because of the entry of rice from countries such as Argentina, Brazil and Uruguay at much lower prices than local ones.
"At great risk are 60,000 hectares of rice, for which there is no known market for this production because Costa Rica is being invaded by milled rice imports from southern countries (Argentina and Uruguay)," said the new President of the National Assembly of Rice Producers, Domingo González. "
In the fourth round of negotiations, Costa Rica is asking for the exclusion of detergents, plastics, paper, glass, and other industrial products from the trade agreement.
The Ministry of Foreign Trade (Comex), is calling for the elimination of some products from the trade agreement currently being discussed with Colombia such as soaps and detergents, plastics, paper and cardboard, timber, sanitary ware and glasses, which is contrary to the interests of Colombia who in the first round of negotiations called for the inclusion of the entire industrial sector in the agreement.
The government succeeded in preventing Dominican authorities from applying temporary safeguard measures against Panamanian products.
On April 20th, the Dominican government started an investigation process, in order to apply safeguard measures against glass recipients from Panama. The process was started after a request from a Dominican corporation.
Due to massive packaging imports from Colombia and Peru, Celloprint, a Panamanian plastic package-manufacturing plant, closed operations.
The company had been trying to save its operations for more than two years, struggling to curb imports of the product from Colombia and Peru. In 2007, the Panamanian company resorted to the safeguard mechanism, making the Ministry of Trade and Industry implement a tariff surcharge of 59.9% above the current tariff of 6%.