Dairy: Clarification in Alleged Conflict Between El Salvador and Honduras
The Salvadoran government has stated that there are no instructions to establish import tariffs on Salvadoran products in any Honduran government institution.
High-level efforts have been made with the Honduran counterpart in charge of foreign trade, the Ministry of Economic Development, to express our concern about this situation that is generating uncertainty for Salvadoran dairy product exports to that country.
The MINEC denies the assertions in which it is stated that El Salvador has established arbitrary measures against imports of dairy products originating in Honduras, in both sanitary and tariff matters.The sanitary measures established by the Ministry of Agriculture and Livestock of El Salvador for dairy products since July of 2017 were informed and agreed upon with the health authorities of Honduras, including a transition period for their implementation. The objective of these measures is to ensure the quality of packaging and bottling of dairy products that are sold in our country and to prevent any impact on the health of consumers, since our main objective is to guarantee our population their rights.
In 2017, trade in milk and dairy products among countries in the region amounted to $306 million, 2% more than what was sold in 2016, and the highest value in the last six years.
Figures from the Information System on the Milk and Milk Products Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
The Ministry of Agriculture and Livestock may decide to impose tariffs on dairy products from El Salvador in the coming days.
For months, Honduran dairy producers have been complaining to the government about the difficulties they face in selling their products in El Salvador, which could impose additional tariffs on the entry of these products.
Despite the new import requirements imposed by the Salvadoran government, in 2017 the Nicaraguan dairy industry managed to maintain the level of its exports to its neighboring country.
Data from a report by Cetrex shows that 2017 will have closed with growth of just 3% in exports of dairy products to El Salvador, which is positive for entrepreneurs in the sector, who in the middle of the year anticipated less favorable figures, due to the entry into force of themore restrictive import controls.