Sugar War in Costa Rica

Maquila Lama has denounced the Agricultural Industrial Cane League for "pressuring wholesale businesses to remove" the product that the importer distributes.

Thursday, June 16, 2016

In a statement the company Maquila Lama says that "... for several days notices have been received from stores that sell the Mr. Maximus brand of sugar, in which it was indicated that sales representatives from LAICA have come to offer better conditions such as providing credit and transportation of the product to their outlets, among other things, with the condition that they stop selling Mr. Maximo sugar on their premises. "

See also: "Costa Rica: Obstacles to Sugar Imports"

In response to this situation, the company decided to file a complaint against LAICA with the Commission to Promote Competition (COPROCOM) an entity which is under the Ministry of Economy, Industry and Commerce (MEIC), for "... pressuring wholesale businesses in the country to withdraw the Mr. Maximum brand of sugar from their shelves."

The Ministry of Economy currently has another process, opened for alleged dumping, presented by Laica against Maquila Lama. See "Costa Rica: Dumping of Sugar from Brazil"

"Clearly LAICA is a monopoly, because there is no competition in the sugar market and we are a Costa Rican company that is trying to acquire a portfolio of products in the basic basket. Sugar is an important complement and a market where there is opportunity for our customers, especially for consumers. We know that we are up against a giant who has never had competition and therefore has dominated the sugar market for the last 75 years, but we are clear of the need to end this cycle which only generates disadvantages for domestic consumers. We want to set a precedent that large companies also have to respect legal trade practices," said Sandoval.

LAICA press officers were consulted, but at the end of the edition no responses had been received.

More on this topic

Another Attempt to Defend Sugar Monopoly

March 2017

With a lawsuit against the Ministry of Foreign Trade in Costa Rica the virtually monopolistic Liga Agrícola Industrial de la Caña de Azúcar is attempting to limit the quotas for historical importers of the grain.

The administrative proceedings presented by Liga Agrícola Industrial de la Caña de Azúcar (LAICA) against the Ministry of Foreign Trade (COMEX), aim to limit the quotas for historic imports of sugar, and could have consequences for other mass consumption products in the country.

Sugar: Investigation Into Anti-Competitive Practices

September 2016

The Commission to Promote Competition in Costa Rica has launched an investigation against Liga Agrícola de la Caña after a complaint was made by Maquila Lama.

The Commission to Promote Competition has ordered a process to be opened to determine whether Liga Agrícola de la Caña (Laica) committed anticompetitive practices, as claimed by Maquila Lama in June this year, noting that "...

Sugar Conflict Continues in Costa Rica

August 2016

At the request of the Agricultural Cane League the government has extended until the end of November the investigation into alleged dumping against the sugar importer La Maquila Lama.

The as yet unresolved conflict could once again make its presence felt with the import of organic sugar on the part of the Agricultural Cane League and also the importer La Maquila Lama, who filed with the Commission to Promote Competition (COPROCOM) a complaint of alleged monopolistic practices. See: "Sugar War in Costa Rica".

Sugar: Company accused of dumping in Costa Rica

September 2015

The union of sugar producers may have presented inaccurate information to accuse a company for allegedly dumping of sugar from Brazil.

From a statement issued by Maquila Lama:

Maquila Lama requested the hearing after being denounced for importing sugar from Brazil

LAICA and perito must testify about the test for an alleged case of dumping

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