Costa Rican companies and CAFTA

Costa Rica exporters still have a lot of work to do in order to benefit from the FTA, despite the fact that since January 1st their products can enter the US with zero tariff.

Monday, January 5, 2009

A study on the exploitation of the CAFTA-DR that was published in the El Financiero weekly from Costa Rica points out that "six years after waiting for CAFTA, the tuna, textiles and ethanol sectors, which will benefit immediately from the agreement, will see the results little by little.

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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.

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.

CAFTA Multilateralism and the Tuna Industry

April 2009

Sardimar and Calvo Group are involved in a dispute over tariffs generated by the implementation of the multilateral treaty imposed by the US-Central America Treaty.

The Spanish-owned Calvo Group has a tuna processing plant in El Salvador from which it exports to Costa Rica - among other places - having paid the country a customs duty of 15% until January 2009, and afterwards taking advantage of CAFTA benefits by not paying the tariff for tuna in oil and paying 2.2% for tuna in water. This will obviously hurt the local sales of Costa Rican-owned Sardimar, which is protesting, stating that the situation violates the provisions of the General Treaty of Central American Integration since Calvo Group operates in a free trade zone in El Salvador and is exempt from most national and municipal taxes and Sardimar considers this a subsidy in disguise.

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