Despite the fact that in December it was announced that a WTO panel would be formed to solve Mexico's complaint against Costa Rica, this was only established on May 16 and in the next few days’ meetings will begin to set the calendar for the process.
The unresolved conflict dates back several years, in May 2014, when Costa Rican authorities decided to ban the import of avocado from Mexico, arguing the existence of the disease called sunspot.
Guatemala asked the WTO to review domestic support measures and alleged export subsidies granted to sugar cane and sugar producers, which are carried out in the Asian country.
Luis Miguel Paiz, manager of Asociación de Azucareros de Guatemala (Asazgua), explained to Prensalibre.com that "... Guatemalan producers are concerned about the impact of Indian subsidies on sugar production, transport, storage and export."
The WTO has established a new compliance panel to verify whether or not the South American country has complied with the ruling mandating it to withdraw the tariff on imports of textiles and footwear from Panama.
The decision of the Dispute Settlement Body of the World Trade Organization (WTO) was made at the request of the Panamanian government, which requested a panel be established for a second time, arguing that the South American country continues to impose restrictions on the importation of the products in question"... and that it wanted the trade dispute to be addressed within the framework of the WTO."
December 31st is the deadline set by the WTO for Costa Rica, El Salvador, Guatemala and Panama to stop subsidizing exports from free zones.
In her article on Eleconomista.net, María José Saavedra analyzes "... the long road of extensions and extensions" which is coming to an end now with the World Trade Organization (WTO), having set 31st December 2015 as the last date for the elimination of these subsidies.
Accession to the WTO agreement would improve export competitiveness through increased availability of information, simplification of procedures, and greater transparency.
Adherence to the Agreement on Trade Facilitation of the World Trade Organization (WTO), which only nine countries have so far ratified, would improve the conditions for access to the international market, mainly through less paperwork, access to information electronically and more efficiency.
Guatemala and Mexico have triggered a mechanism of "commercial concern" over restrictions on the importation of Hass avocado imposed by Costa Rica.
There will be a period of 60 days for Costa Rica to respond to the concerns presented by the delegations from Mexico and Guatemala in the Committee on Sanitary and Phytosanitary Measures at the World Trade Organization.
Starting April chambers of commerce in the region will be providing free training on phytosanitary controls, management at border posts and customs procedures for exporting firms.
From a statement issued by the Chamber of Commerce of Costa Rica:
As of April, the Chamber of Commerce of Costa Rica will be running a training program on trade facilitation for the public and private sector, within the framework of a cooperation agreement signed between the Federation of Chambers of Commerce of Central America (FECAMCO) and the United States Agency for International Development (USAID) to implement the USAID Regional Project on Trade and Market Partnerships.
Preparations are being made for the first export in the next few weeks of 50,000 tons of sugar, after the Asian country gave El Salvador approval for an import quota in December.
This shipment to China represents more than 10% of the production of exportable sugar in the country, as currently 60% of domestic production is exported and 40% is for local consumption, which has not changed its demand in recent years .
The business sector is demanding that the government take action to minimize the impact of the expiry at the end of the year of tax incentives granted to foreign firms in free zones.
About 1,300 companies enjoy the benefits granted by the World Trade Organization, which expire on December 31 this year. Two companies have already moved their operations to other countries, according to the Ministry of Economy of Guatemala.
Companies which are certified as Authorized Economic Operators will be able to reduce paperwork times and have priority at customs.
In order to access this certification interested companies must be up to date with tax and customs payments, tax requirements, and review legal and administrative processes, industrial safety and human resources. The cost of certification varies according to the processes which need to be improved.
Congress is deadlocked and essential laws to give legal certainty to investments for textile companies, among others, are being delayed.
The bill to attract investment and jobs submitted in January 2013 has not been approved, this prevents laying a foundation for an industry that can not proceed without a regulatory framework.
"One of the goals of this legislative proposal is to fulfill the commitments Guatemala has assumed with the World Trade Organization (WTO).
A request by the National Rice Corporation for a protectionist trade measure is being analyzed by the government.
The Costa Rican government is discussing the possible application of a safeguard measure on imports of rice from Argentina and Uruguay. The measure was requested by the National Rice Corporation (Conarroz).
"The review process has been started and now we will wait and see.
The extension of the deadline for the implementation of the decree that eliminates the rice price fixing mechanism, represents a transfer of $75 million from the pockets of consumers towards the rice sector.
For years other countries have criticized the pricing of rice in Costa Rica considering it a subsidy and violation of defined limits.
" ... The maximum allowance agreed for the sector is $15.94 million per year but for 2013 it has been estimated at $75 million. Violation of the agreement is grounds for a complaint, which could attract sanctions against Costa Rican exports from some partners."
During the 2013-14 harvest ending on October 31 490,000 metric tons of sugar were exported while in the previous harvest the amount was 412,000 MT.
According to the Sugar Association of El Salvador , the main destinations of the country's raw sugar are the USA, Chile, Russia, Taiwan and Canada. Meanwhile, the refined product is sold to the Netherlands, Chile, Taiwan and other Caribbean countries .
The new tax has been created by the Mexican government in retaliation for the suspension for health reasons on Honduran exports to the Mexican market.
The suspension of exports from Honduras to this country were put in place because of the threat of entry of early mortality syndrome (SMT by its initials in Spanish), which has caused great losses in the Mexican states of Sonora, Sinaloa and Nayarit.