Complaint for Cancellation of FTA with Taiwan

Arguing that the suspension of the agreement between El Salvador and the Asian country was done in an "abrupt and unconsultated" way, businessmen of the Salvadoran sugar sector presented an appeal of unconstitutionality.

Friday, February 22, 2019

The lawsuit was filed on February 20, after the administration Sanchez Ceren finalized the trade agreement with the Asian country in December last year, a decision that was not consulted with the country's productive sector and will affect sugar exports, as they will no longer have preferential treatment.

See "Favorable Treatment for Sugar Sector Ends"

Elmundo.sv reviews that "... The lawsuit was filed in the Constitutional Chamber by representatives of the Sugar Association of El Salvador (AAES), the Corporation of Exporters of El Salvador (Coexport), the Intergremial Commission for Trade Facilitation (Cifacil), the Private Sector Support Organization for International Trade Negotiations (ODASP) and sugarcane producers' guilds, with the support of workers' unions."

You may be interested "El Salvador says "Hello" to China"

Javier Argueta, legal advisor to the National Association of Private Enterprise (ANEP), said that "... the lawsuit is based on defects of substance and form that occurred in the process of cancellation of the FTA with Taiwan by the Ministry of Foreign Affairs, last December 13 and with a deadline for effect on March 15."

Mario Salaverría, president of AAES, explained that "... The complaint of the treaty has been unconsultative and irresponsible, not following the procedures established by law or the Constitution. As productive sectors we feel highly aggrieved and affected, because we are going to have substantial economic losses.

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More on this topic

A Setback for the Sugar Sector

April 2019

The Constitutional Chamber of El Salvador declared the demand of the sugar manufacturers inadmissible, arguing that there is no link between the cancellation of the FTA with Taiwan and the application of constitutional norms.

After the Salvadoran government decided to finalize the trade agreement with the Asian country in December last year, an act that was not consulted with the country's productive sector, the guild presented in February this year an appeal of unconstitutionality.

Cancellation of FTA with Taiwan: Yes, or No?

March 2019

In El Salvador, the Constitutional Chamber admitted an appeal against the government's decision to terminate the trade agreement, and ordered a temporary suspension of the effects of the cancellation.

After the Salvadoran government decided to finalize the trade agreement with the Asian country in December last year, an act that was not consulted with the productive sector of the country, the union of sugarcane workers filed a lawsuit.

Favorable Treatment for Sugar Sector Ends

February 2019

As of March 15, the FTA between Taiwan and El Salvador will be null and void, a situation that will prevent the Central American country from selling 80,000 tons of sugar at favorable prices.

The Salvadoran government concluded the trade agreement with the Asian country in December last year, a decision that was not consulted with the country's productive sector and will affect sugar exports, as it will no longer have preferential treatment.

More Salvadoran Sugar in Asia

September 2017

Five Asian countries bought more between January and July of this year than was acquired in all of 2016.

The trade agreement between El Salvador and Taiwan, in force since 2008, has made it the gateway for Salvadoran sugar in Asia, according to the president of the Sugar Association of El Salvador (AAES), Mario Salaverría. 

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