Coffee producers seek special treatment

The Coffee Institute of Costa Rica insists that the coffee processed within the free trade region should enter the European Union free of tariffs, provided that the beans were harvested in Central America.

Wednesday, February 27, 2008

Producers are worried that the EU agreement might allow coffee processed in Europe and harvested anywhere in the world to enter the region tariff-free.
"We want to negotiate that the country of origin be defined as the place the coffee was harvested," said Ronald Peters, executive director of Costa Rica's coffee institute. "Otherwise we would have to allow in coffee of lower quality and lower price from African countries."

More on this topic

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The success of the food industry is based on innovation enabled by access to a wide variety of ingredients and input substances from outside the Central American region.

Rules of origin are included in trade agreements with protectionist goals that force food industry companies to work only with local raw materials.

Too Much Flexibility in Rules of Origin

August 2009

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After the second negotiation round for the Costa Rica - Singapore Free Trade Agreement, a consensus was achieved on rules of origin. This established a general rule under which two things would be considered: firstly, if there is a tariff category change; and secondly, a 35% regional content value..

Virtual Round With Singapore Finishes

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Progress was made in access to markets and rules of origin, topics of great importance to define the specific goods each side will offer.

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EU Relaxes Rules in Several Areas

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In addition to plastics, the European Union made concessions in chocolate, palm oil, fertilizers and chemicals.

According to the flexibility incorporated into the Association Agreement between Central America and the European Union, enterprises in the region may include materials from outside into products that are then exported to Europe under the tariff regime established in the Agreement.

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