The increase in Costa Rican exports during 2018 was mainly due to the performance of the 187 companies in the free zone, in contrast to the almost zero growth reported by companies exporting under the traditional scheme.
Monday, January 28, 2019
Figures from the Foreign Trade Promoter of Costa Rica (Procomer) detail that last year Costa Rica's exports totaled $11.312 million, 6% more than that recorded in 2017.
The report states that in 2018 exports of precision and medical equipment, whose manufacturers are mostly in free trade zones, represented 29% of total sales, and recorded an 18% increase compared to what was reported in 2017.
Laura Bonilla, president of Cadexco, told Crhoy.com that "... We highlight the great dynamism presented by the free zone regime, especially by the increase in the participation of advanced manufacturing industry. This regime composed of 187 companies, showed a 13% growth. Meanwhile, the definitive regime made up of 2,253 companies, in other words, most exporting companies in the country, only grew by 1%."
Among the factors that influenced the growth of foreign sales of most companies were minimal, the political crisis in Nicaragua and the strike of trade unions in Costa Rica stand out, since several exporters went from increases of 6% to 1%.
Regarding the actions that should be taken to change this behavior, Bonilla explained that "... This result must be reverted by means of actions in the short term that allow greater international promotion of the added value of agricultural products, as well as by means of greater facilities and accompaniment to enter important markets that allow better performances in this sector."
During the first three months of the year, sales of Costa Rican goods abroad totaled $2.757 million, just 0.5% above the $2.744 million reported as of March 2018.
The most updated data of the Foreign Trade Promoter (Procomer) specify that from January to March of this year the exports of companies in free trade zones registered a 12% year-on-year increase, and in the case of foreign sales of products in final regime fell 9%.
The complex economic and political situation that has affected Nicaragua since April continues to affect Central America, where exporters report losses of $45 million.
In the past months, cargo transport faced difficulties in moving goods along Nicaragua's highways due to demonstrators' blockades and insecurity, seriously affecting Central American companies.
Between January and August free zone companies, which enjoy exemptions, increased their exports by 13% compared to the same period in 2015, while exports from definitive arrangements only rose by 1%.
The Chamber of Exporters demanded the next administration greater commitment with the exporting sector.
"An example: the Free Zone Law. We know it will provide greater security for companies and attract more investment. However, it is useless to have a law which favors the most vulnerable or unprotected areas, if we don't have the required infrastructure, staff and telecommunications", stated Mónica Araya, president of the Chamber of Exporters.
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