Costa Rican businessmen complain that because of export subsidies granted to sugar producers in India, there has been an artificial increase in production, causing prices to fall below costs.
Édgar Herrera, executive director of the Industrial Agricultural League of Sugarcane (Laica), explained to Elobservador.cr that "... These subsidies are greater than those allowed by the World Trade Organization, in the order of $10 billion annually.
To be able to ship cargo throughout the region, Central American business leaders are exploring options for moving goods using alternative methods, such as shipping.
Representatives from the Costa Rican government and the union of exporters met to address the issue of blockades in Nicaragua and the logistical drawbacks that they have caused, since Costa Rica transports by land about five thousand containers to the other Central American countries every month. As a result of this meeting, both parties concluded that the most viable option is to use maritime transport.
A year after the announcement, the project to establish a marine cargo ferry between El Salvador and Costa Rica remains on paper.
Although it had been announced that the service would begin in late July 2016, it seems that the idea of a ferry transporting goods between the ports of Costa Rica and El Salvador at a base cost of $800 will not happen, at least for now.
On July a ferry could be traveling by sea between the two ports on a 16 hour journey, plus time spent in ports, with a base cost of $800.
The long announced ferry between Central American Pacific ports could be ready to start operations, according to a joint statement by Naviera Bajos del Odiel and the Government of Costa Rica.
The story of this sea route started in August 2013, when "... the Autonomous Executive Port Commission (CEPA) confirmed that at the end of November an agreement with the Spanish company Naviera del Odiel had been finalised for the start of ferry operations connecting the port of La Union to Puerto Corinto, in Nicaragua." This project never materialized, apparently because of unwillingness on the part of the government of Nicaragua.
The bridge building project which has been on paper since 2005 has been resurrected, with the announcement that the documents needed to tender the construction will be ready in March and the works will start in June.
Eleven years and half a dozen Panamanian and Costa Rican presidents have tried to put out to tender the construction of the bridge over the Sixaola river on the border between Costa Rica and Panama. Extreme bureaucracy, unenforceability and unfulfilled political promises surrounded the project which now has a new contract announcement.
Following a visit by the President of Costa Rica to China, an announcement has been made that priority will be given in the Legislature to the Bill on Protection of Investments between the two countries.
This bill seeks the promotion and protection of investments between China and Costa Rica, through a legal framework governing any disputes which may arise between the two nations.
The government has announced the signing of the process of incorporation, while business associations oppose the increased tariff liberalization which will come from membership of the group.
As part of the agreement of incorporation into the block of Pacific Alliance tariffs must be eliminated on 92% of the products and the remaining 8% will be gradually removed.
Citing the old concepts of food sovereignty, protection is being given to the inefficient production of the few while the consumption capacity of the poorest is punished.
EDITORIAL
As expected, the government of Luis Guillermo Solís has decided to apply the safeguard measure requested by rice farmers, increasing the tax paid on imports of milled rice from 35% to 62%, which in practice only applies to rice bought in Argentina and Uruguay.
The Solis administration has signed a memorandum of understanding with the Chinese government to begin studying the feasibility of setting up a special economic zone in Costa Rica for enterprises from China.
As part of the agreement signed between the two governments, feasibility studies will be started along with defining where the zone will be sited.
The border post to be opened by the government of Costa Rica in early 2015 in Las Tablillas will be used temporarily, until the permanent post has been built.
The border post is located in the north of Costa Rica, in an area near the bridge built by the Nicaraguan government in the San Juan area.
The Foreign Minister, Manuel González, told Ameliarueda.com that "...
While the outgoing administration rushes through entry to the Pacific Alliance, one of the two possible next presidents is opposed to new treaties.
In a meeting with the Chamber of Exporters, Luis Guillermo Solís, presidential candidate of the Citizen Action Party, said that if he wins the Presidency of the Republic in April, he will slow the signing and negotiation of new FTAs.
The Chamber of Industry perceives an "unusual secrecy" in progress toward an agreement that may seriously compromise the competitiveness of the sector.
The Chamber of Industries of Costa Rica (ICRC) has asked the Government to explain the scope of commitments made with the signing of the adherence to the Pacific Alliance.
From a press release issued by the Chamber of Industries of Costa Rica:
The Pacific Alliance has become the largest market in Latin America and an attractive investment for companies in third party countries who want to use it.
"In 2012, the Gross Domestic Product of the Pacific Partnership (AP by its initials in Spanish) grew by 5%, two points higher than that recorded by the global economy. FDI remained at an acceptable rhythm, with $71.045 billion, of which over $30 billion was destined for Chile.
A request by the National Rice Corporation for a protectionist trade measure is being analyzed by the government.
The Costa Rican government is discussing the possible application of a safeguard measure on imports of rice from Argentina and Uruguay. The measure was requested by the National Rice Corporation (Conarroz).
"The review process has been started and now we will wait and see.
The Latin America-China Business Summit was held on November 26th and 27th in Costa Rica with more than 1,200 employers in regions with growing commercial exchanges.
Chinese and Latin American entrepreneurs gathered for two days for business meetings, contributing to increased trade in Latin America with the Asian country, which is already a commercial destination of prime importance for this region.