Costa Rica Accuses El Salvador of Violating FTA

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

Tuesday, September 24, 2013

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.

"We have raised this issue with the Ministry of Economy of El Salvador on several occasions, without managing to solve the problem. Therefore, in order to provide legal certainty to our exporters, we have proceeded to raise the need for consultation in order to be able to find a comprehensive and definitive solution," said Foreign Trade Minister, Anabel González.



More on this topic

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):

El Salvador Calls For Regional Support in Tariff Conflict with Costa Rica

January 2014

The Salvadoran President has asked the SIECA to intervene in a trade dispute with Costa Rica.

President Mauricio Funes, believes that a regional agency should resolve the trade dispute with Costa Rica, which has requested the creation of an international arbitration group. The problem, Funes said, should be resolved by the Secretariat for Central American Economic Integration (SIECA).

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.

U.S. Not Respecting Costa Rica's Ethanol Quota

December 2013

Exporters of dehydrated ethanol claim that the U.S. is applying an ad valorem tax of 2.5% which is outside of the provisions of DR-CAFTA.

According to Anabel González, the Minister of Foreign Trade (Comex), Costa Rica has not exported the product during the second half of 2013, because the annual quota for receiving the benefits is 31 million gallons.

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