For Nicaraguan stockbreeders, the imposition of a 30% tariff on beef imports from Panama violates the conditions established in the trade agreement between the two countries.
In Panama, representatives of the Nicaraguan Chamber of Beef Export Plants (Canicarne), reported that the imposition of tariffs and other non-tariff measures for Nicaraguan meat have stockbreeders and industrialists concerned.
There is an urgent need to improve livestock production methods in order for Central American to face the impending competition from North American livestock farming.
The possible entry of U.S. beef into Central America is worrying Nicaraguan meat exporters who continue to produce in the same way as they did 200 years ago.
"It is important to introduce livestock, we are producing in almost the same way as we did 200 years ago, this is happening because of the loss of competitiveness of Central America in meat exports," said Juan Sebastian Chamorro, president of the Nicaraguan Chamber of Beef Exporters (Canicarne).
Panama, Honduras, Guatemala and Mexico continue to hinder the importation of beef from Nicaragua.
The President of Canicarne, Onel Perez, said that since January 2010, Nicaragua has not exported beef to Panama under the agreed quota within the Free Trade Agreement, reported Elnuevodiario.com.ni.
"In this country, the problem is that the meat is subject to unique public auction requiring the exporter to pay taxes of 21%, according to a specific list of cuts that are not suitable for export, there are more than 50 cuts, six items for each tariff, which hinders the operation, is expensive, and, contrary to what you may believe, tends to concentrate the use of the full amount of the quota in a single buyer and a single seller," said the Canicarne president.
Restrictions by Honduras, Guatemala and Panama on Nicaraguan beef exports have caused a reduction in revenues of about $60 million for exporters, who are demanding reciprocal measures to those countries.
Since 2010, Nicaraguan farmers have failed to collect about $60 million in profit due to the restrictions imposed by the authorities of Honduras, Panama and Guatemala on importing meat from Nicaragua, said industry leaders in the El Nuevo Diario.
Central American businessmen agreed to adjudicate the meat quota assigned by the European Union to the country that first complies with the required food safety and traceability requirements.
The region had to decide how to distribute a quota of 9.500 yearly tons of meat that can be shipped to Europe without paying tariffs.
The proposal to divide up the 9,500 ton EU allocation equally is rejected by Nicaragua.
Onel Pérez, president of CANICARNE (Nicaraguan association of beef producers), commented that 70% of meat exported from Central America comes from Nicaragua.
Pérez and Ronald Blandón, director of Nicaraguan cattle farming association, CONAGAN, will travel to Honduras to discuss the distribution of the quota with other Central American businessmen.
Nicaraguan meat exporters are demanding the government to take action against Guatemala and Panama for closing their borders.
Representatives from CANICARNE and FAGANIC, two major chambers of meat producers, argue that the situation has caused a 10% reduction in livestock slaughtering.
“Daniel Núñez, from CANICARNE, explained they requested the Commerce and Agriculture ministries to act ‘in order to be reciprocal, it is not ridiculous that we are shipping meat to Japan, U.S. and other countries, while Panama and Guatemala reject our products”.