Arbitration Goes Ahead Between Costa Rica vs El Salvador Over Tires and Juices

Both countries have already submitted formal documents in which Costa Rica denounces the non-application of tariff preferences on juices and tires exported to El Salvador under the CAFTA agreement.

Wednesday, June 18, 2014

Now that the formal documents have been presented, representatives from the governments of Costa Rica and El Salvador will await resolutions and new dates to proceed with the arbitration.

Costa Rica argues that since January 1, 2013, the country has charged a tariff of 10% on its exports of tires and a 15% on concentrated fruit, when they should enter duty free having being sent under free zone regime.

"...For now, the Minec is awaiting resolutions and new dates in order to comply with the rest of steps. " However, "...The general coordinator of the Organization for Support of the Productive Sector for International Trade Negotiations (ODASP), Rigoberto Monge said that apparently this is all related to a "coexistence treaty" referring to the General Treaty on Central American Economic Integration (TGIEC) which proposed free "almost unlimited" trade between the region. "

More on this topic

Tires and Juices From Costa Rica with Zero Tariffs in El Salvador

July 2015

As of July 1 the arbitration panel ruling which came down on the side of Costa Rica will be put into practice, and from now on all Costa Rican exports to the Salvadoran market will enjoy the preferences stated in the DR-CAFTA.

From a statement issued by the Ministry of Foreign Trade of Costa Rica:

Court Grants Right to Costa Rica in Litigation Over Tariffs

November 2014

Arbitrators working under the framework of DR-CAFTA have ruled that Costa Rican exports within this trade agreement in El Salvador should receive the tariff preferences provided for in the text.

From a statement issued by the Ministry of Foreign Trade of Costa Rica (COMEX):

Costa Rica - El Salvador Arbitration Over Tires and Juices

January 2014

A dispute over the failure to implement tariff benefits on the part of El Salvador on tires and juices exported by Costa Rica has not been resolved using other methods.

The Costa Rican Minister of Foreign Trade, Anabel Gonzalez confirmed that on January 20th El Salvador will be taken to court for not applying the tariff benefits negotiated in the FTA between the U.S., Central America and the Dominican Republic on tires and juices.

Costa Rica Accuses El Salvador of Violating FTA

September 2013

The country has invoked the dispute settlement mechanism of the CAFTA-DR, over alleged violation by El Salvador of the tariff reduction program.

From a press release issued by the Ministry of Foreign Trade of Costa Rica (COMEX):

The Ministry of Foreign Trade has requested the consultations mechanism against El Salvador, under the dispute settlement process of the Free Trade Agreement between Central America, the Dominican Republic and the United States of America (CAFTA), after a refusal, on the part of Salvadoran authorities to implement the tariff reduction program outlined in the aforementioned treaty on the import of products originating in Costa Rica.

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