The protests in Costa Rica, which affect vehicle circulation in the country and border crossings, will have a short-term impact on intraregional trade and cargo transport costs.
Tuesday, October 6, 2020
In order to access the $1.75 billion credit that it intends to request from the International Monetary Fund (IMF), the Costa Rican government proposed to tax financial transactions, raise the tax on the profits of companies and individuals, and increase the tax on real estate.
In addition to the roadblocks, which until the morning of October 5 totaled more than 30, during the weekend and because of the demonstrations, cargo transport was prevented from passing through the border point of Paso Canoas, which is shared by Costa Rica and Panama.
Rodolfo De La Guardia, president of the Council of the Logistics Company (Coel) of Panama, said to Laestrella.com.pa that "... the blockades are bringing impacts to our economy since they make impossible the exports that are made from Panama and the traffic of merchandise that is sent from here (to other countries of the region). An economic impact on the logistic load is expected, but at this moment it is still too early to give a concrete figure on the losses that would be generated."
The executive explained that although the movement has already begun to restore, it is estimated that between 300 and 500 transport units were affected by the blockades.
Hector Fajardo, member of the Central American Federation of Transport (Fecatrans), informed Prensalibre.com that "... the blockades went from seven to 23 strategic points where cargo transport circulates in Costa Rica, and during last weekend the demonstrators took machinery to be able to obstruct the passage with earthen volcanoes and rocks."
Fajardo added that "... In addition to the delays, the failure to comply with the immigration deadlines established by Costa Rica for heavy cargo pilots is a consequence of the blockades. The five-day deadline is about to expire for most of the pilots, and if they do not free their way, they will stay longer in that country, and there is no option to return either."
According to the member of Fecatrans, there are fines in the cases of the pilots who do not comply with the immigration deadlines. This and the delays, could push up the costs of cargo transportation.
Arguing that there is unfair treatment in the other countries of the region, Costa Rican drivers of cargo vehicles block the transit through the border posts of Penas Blancas and Paso Canoas.
Because Costa Rica has imposed several restrictions on the movement of goods entering its territory, the Guatemalan government announced that it will apply reciprocal measures to Costa Rican transporters from June 9.
Currently, transporting goods by sea between Central American countries can increase freight costs by at least 60% compared to the land option, which represents an obstacle to changing the way goods are transferred in the region.
As a result of the closure of the Penas Blancas customs crossing, on the border between Costa Rica and Nicaragua, some businessmen in the region had to resort to the sea route in order to deliver their orders.
Since El Salvador, Costa Rica and Panama have set a 72-hour time limit for freight drivers operating in the region, hundreds of units have decided to halt their operations as a measure of pressure.
Due to the health crisis resulting from the covid-19 outbreak, Salvadoran, Costa Rican and Panamanian authorities decided that the drivers of the cargo transport units entering the country will have only 72 hours to make the formalities at the borders, and to unload and reload the goods from the vehicles.
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