Market Opening for Chicken, Rice and Milk

From January 2016 import tariffs will start to be phased out on chicken, rice and milk from the USA, reaching 0% in 2022 and 2025, under the DR-CAFTA agreement.

Monday, July 20, 2015

In Costa Rica local producers say they have been preparing for this for several years, but the country's loss of competitiveness due to high production costs and lack of action by the government to improve on this might prevent them from competing on equal terms.

Rice, chicken and milk (fluid milk, milk powder, butter and cheese), which have up until now always been excluded in all trade agreements signed by the country, will start to come in from the US paying less tariffs in January 2016, reaching 0% tax in 2022 and 2026.

"... The opening of the national market for those productive sectors traditionally protected from trade liberalization is a threat, recognized representatives. José Antonio Madriz, President of the National Chamber of Milk Producers, said the industry is very concerned about the opening of the US dairy market. "

An article in Nacion.com reports that "... Alberto Trejos, who was the Minister of Foreign Trade, when negotiating this FTA, lamented that they did not take advantage of the 10-year grace period to make preparations. However, he emphasized, they still have seven or 10 years of tax relief in which to do so and they should use them. He also said that if imports are very high, the Treaty provides for the automatic activation of an increased tariff (safeguard). "



More on this topic

Costa Rica: Challenges for the Dairy Sector

April 2017

There still remains tasks to be completed in the process of preparing to compete with milk and dairy products, which in 2025 will start to enter the country duty-free under the CAFTA.

In regards to how to prepare for the next market opening, José Antonio Madriz, President of the National Chamber of Milk Producers, told Nacion.com that there still remains work to be done, and that they "... have approached the Ministry of Agriculture and Livestock (MAG) several times, as lead agency, to establish joint plans between the private sector, government, universities and other research centers, but the result is insufficient."

Tariff Eliminated on Chicken Imported from the US

March 2017

The USA has agreed to reduce to 0% the tariff on chicken leg quarters imported from the US market for the Central American countries under DR-CAFTA.

The request to remove the tariff was made by Guatemala weeks ago.  Chicken legs, both frozen and refrigerated, will enter the Central American market with 0% tariff when all the signatory countries of CAFTA-DR have completed the application process with the Department of Commerce.

Guatemala: Removing Chicken Import Tariff is Complicated

February 2017

Removing the tariff on chicken legs under the CAFTA-DR would resolve the problem arising from the use of different tariff headings, but can be done only if approval is granted by the other member countries.

In addition to relying on the approval of the member countries of CAFTA-DR, no one knows how long the process could take.

Guatemala: Tariff Lowered on Chicken Imports

February 2016

As reported at the end of 2015, from February 16 a reduction from 15% to 13.8% will be in effect on the import duty incurred on chicken rump.

The tax paid by importers for rump chicken went from 15% in 2015 to 13.8% in 2016, confirmed the Deputy Minister of Integration and Foreign Trade, Enrique Lacs to Siglo21.com.gt.

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