Nicaragua 2015: No More Korean Cars, U.S. Cars Instead

Companies are preparing for the process of tariff reduction for imported goods and services from the United States under the FTA.

Wednesday, February 12, 2014

Starting 2015 various products will be able to come into Nicaragua from the U.S. tax free. Employers are now preparing for the tariff reduction process of the Free Trade Agreement between the U.S., Central America and Dominican Republic (DR -CAFTA).

The advisor to the president for economic affairs, Bayardo Arce said, " ... we are in a process of reviewing all our FTAs, because some processes of tariffs elimination will begin in 2015, specifically CAFTA ."

Alfredo Artiles, president of the American Nicaraguan Chamber in Nicaragua (AMCHAM) explained that "it is important that we protect Nicaraguan producers and consumers, that benefits are provided but that they do not undermine Nicaraguan companies."

"There are food products that we are currently protecting from American overproduction by way of tariffs agreed through the FTAs, but these tariffs must disappear in a certain amount of time, then we have to use what is left to plan and be able to make up for the impact of this."

More on this topic

TPL Needed for Central American Textile Companies

November 2014

Nicaraguan businessmen have proposed that Central America as a whole operates a preferential tariff treatment in the US for imports of textiles in the region.

After trying to negotiate, through several formats, tariff preference levels (TPL), so far unsuccessfully, textile entrepreneurs are now appealing to the union of the region to address the issue with the US once again.

Nicaragua's Textile Sector and the TPL

August 2014

The possibility that the United States will not renew tariff preferences for Nicaraguan textiles at the end of the year is forcing the industry to prepare changes to their production schedule.

Although there is a possibility that the United States will grant an extension of the benefits of the Tariff Preference Level (TPL), if they are not renewed, starting January 1st, 2015 the Nicaraguan textile sector may no longer sell to United States products made from raw materials from countries that are not part of DR-CAFTA.

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.

Costa Rica Accuses El Salvador of Violating FTA

September 2013

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

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.

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