On April 26, Brazil will reactivate again on the agenda of the World Trade Organization, the complaint against Costa Rica for the imposition of a safeguard to increase the tariff on sugar.
Following in Brazil's footsteps, Canada warned the WTO about the possibility of imposing compensation against the Costa Rican authorities' policy of raising the tariff on imported sugar from 45% to 73%.
After the Costa Rican authorities raised the tariff on imported sugar from 45% to 73%, the South American country decided to raise before the World Trade Organization, a process to exercise the right of suspension.
In June of this year, the Alvarado administration decided to increase to 79% and for the term of three years, the tariff on sugar entering the country.
Following an appeal filed by the importing company La Maquila Lama with the Costa Rican authorities, the government decided to reduce the additional tax on sugar purchased abroad from 34.27% to 27.68%.
With the reduction decreed by the Ministry of Economy, Industry and Commerce (MEIC), a decision that was published on August 18 in The Gazette, the total tax applied to imported sugar will be 72.68% (45% original plus 27.68% of the safeguard), which is slightly less than the 79.27% (45% original plus 34.27%), which was in force until before the enacted amendment.
In Costa Rica, sugar producers are asking the government to raise tariffs or entry taxes on imports, and importers are opposing, as this would raise the final price to the consumer.
In July 2019, the Sugar Cane Industrial Agricultural League (LAICA) asked the Ministry of Economy, Industry and Commerce (MEIC) to launch an investigation with the aim of imposing additional tariffs on imported sugar, arguing that purchases from abroad would damage local production.
As part of the FTA signed between the two countries, since January 1, 2020 beef and pork from the U.S. do not pay tariffs or taxes on entry into Costa Rica.
According to the Free Trade Agreement signed, the relief of beef and pork will be valid for 15 years, while the so-called black parts of the chicken, such as thighs and others, will be released until January 1, 2022, in this case for the term of 17 years.
Arguing that local production must be protected, Costa Rican sugar manufacturers demand that, in addition to the 45% common levy already charged on imported sugar, an additional tariff must be imposed.
The request was made by Liga Agricola Industrial de la Caña de Azucar (Laica) to the Ministry of Economy, Industry and Commerce (MEIC), as businessmen claim that there is an exponential growth in sugar imports in recent years, which has put in check the Costa Rican sugar cane sector.
Until 31 December 2019, yellow corn may be imported duty-free, and from 1 January 2020, a tariff rate of 40% will apply.
For the decision, the government argued in the decree published in the Gaceta that "... the production of meat, milk and eggs is produced, for the most part, from corn-based feed, which represents a little more than 65% of the total cost of meat production, especially in the production of chickens and pigs.
Days after the Brazilian government noted that the additional duty of 6.82% violated the WTO anti-dumping agreement, the Solis administration has reduced it by half.
The Ministry of Economy partially upheld the appeal filed by the sugar importer Maquila Lama and decreased the additional tariff to 3.67%, on top of the 46% already paid on sugar imported from Brazil.
The Brazilian government claims that the 6,8% increase in the tax on sugar imports from the south american country is in violation of a WTO anti-dumping agreement.
The decision by the new Minister of Economy to raise the tariff on sugar imports from Brazil by 6.82%, ignoring the technical criteria that indicated an absence of dumping, is already having consequences.See: "Sugar War in Costa Rica Restarts".
The Colombian government has reduced tariffs to 0 on imports of lentils, beans and garlic, and suspended the price band for crude and refined oils.
From a statement issued by the President of Colombia:
The National Government has approved a reduction to 0% on tariffs on the import of lentils, beans and garlic, and has temporarily suspended the price band for crude and refined oils, which will ease the cost of the food basket for Colombians during the first half of 2016.
Producers and importers have ended the conflict and agreed to approve the import of 90 thousand hundredweight of onions until December 15 and with a tariff of 72%.
After several months of disagreements over the amount to be imported, the producers union finally reached an agreement with traders to allow the entry of 90,000 hundredweight as a measure to solve the problem of shortages generated by the lack of rainfall in growing areas .
High production costs, coupled with the progressive reduction in the tariff paid on yellow corn from the United States, are keeping sorghum producers in the country in a state of check.
With the gradual elimination of import yellow corn from the United States, established in DR-CAFTA, a 0% tariff will be reached in 2020, a rate which currently stands at 10.1%.
Chicken breasts and thighs, and evaporated and condensed milk are some of the 37 products in the list whose import tariff has been modified from this month.
On April 24th new import tariffs came into effect for 37 food products, among them parboiled rice, different types of milk and chicken pieces.
Cabinet Decree No. 9 dated April 21, 2015, states that "...
Costa Rican industry is paying 33% more for potato tubers because of a scarcity in the market, resulting in a call for a reduction of import tariffs.
In the country the high price of potatoes for industrial use compared to prices in other markets is already old news.
Now the Costa Rican Chamber of Food Industry (Cacia) is asking for the tariff, which currently stands at 46%, to be lowered, in order to import at a reasonable cost and in this way deal with local shortages.