Industrial production is becoming increasingly expensive in a country where the government seems to have no desire to lower electricity costs and promote competitiveness.
From a press release issued by the Chamber of Industries of Costa Rica (ICRC):
The outlook for the industrial sector of the country is not very encouraging for 2014. This is according to the results of the study "Business Outlook and Rating Factors for the Costa Rican Industrial Sector's Competitiveness 2014" made by the Chamber of
The retail sector is looking favorably on accession to the bloc, but the agricultural and food industries are opposed to it.
The lack of information about how membership has been negotiated and sensitivities presented by some sectors and products in comparison to their peers in the Pacific Alliance are part of the arguments used by agriculture and industry to oppose, at least under the current conditions, the incorporation of Costa Rica into the Alliance.
The center-left candidate, Luis Guillermo Solís, would review the conditions to join the block if he wins on April 6th.
The presidential candidate of the Partido Acción Ciudadana, Luis Guillermo Solís, agrees with the industrial sector on the process of tariff reduction that Costa Rica would have to make in order to join the Pacific Alliance involves risks that should be considered carefully.
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 price paid by Costa Rican industry for electricity consumption is 41% higher than in the European Union and 259% higher than in the U.S.
Industry has expressed its anger against the rising cost of electricity as it is making production more expensive and exports are becoming less competitive against rival markets where energy is cheaper.
Employers believe that a new and more efficient system is required in order to generate confidence in foreign trade.
The Information Technology System for Customs Control (known as Tic@), received strong criticism from business chambers, whose executives say that after 10 years of operation this computing platform is obsolete.
The Chamber of Industries of Costa Rica (ICRC), the Chamber of Commerce of Costa Rica (CCCR) and the Digital Government program agree on this point. Alonso Elizondo, executive director of the CCCR, says that more customs efficiency is needed to lower costs in the transit of goods.
A dispute over the failure to implement tariff benefits on the part of El Salvador on tires and juices exported by Costa Rica has not been resolved using other methods.
The Costa Rican Minister of Foreign Trade, Anabel Gonzalez confirmed that on January 20th El Salvador will be taken to court for not applying the tariff benefits negotiated in the FTA between the U.S., Central America and the Dominican Republic on tires and juices.
The union for the sector is calling on the next government to review the management of the Instituto Costarricense de Electricidad and the creation of an Industrial Policy.
From a press release from the Chamber of Industries of Costa Rica (ICRC):
During its annual review and expectations for 2014, the Chamber of Industries of Costa Rica, ICRC said that this year the sector maintained behavior marked by ups and downs, which began with a clear recessionary trend, which was then reversed from April.
Industrialists are starting to look at transferring their plants to countries where energy costs are lower.
The high cost of electricity bills has caused some industries to look at moving their operations out of the country in the search for savings and competitiveness.
Corporación Yanber, a manufacturer of packaging for trade, industry and agriculture, decided to go to Nicaragua eight months ago, and other companies are evaluating the possibility of moving their operations to countries where the energy sector impinges less on the cost of their products.
Overwhelmed by the growing impact of energy costs, large electricity consumers in Costa Rica are asking for a reduction in their electricity rates of between 10.7% and 38.6%.
From a press release by the Regulatory Authority for Public Services (Aresep):
The Costa Rican Association of Large Energy Consumers (ACOGRACE) has requested a rebate for electricity rates in the business sector.
The state run electricity company has requested an increase of 5.56%; business are against it, as it heavily impacts industry costs.
There is a procedure requested by the Chamber of Industries of Costa Rica to reduce rates by 11% for all power distribution companies, among which is the state run entity.
The request by the Instituto Costarricense de Electricidad (ICE) to the Regulatory Authority for Public Services (Aresep) was justified with the argument "... that money will be used to meet costs and operating expenses, debt service and generate the resources aimed at creating an investment plan," reported Nacion.com.
There will be different quality certifications for rods which will facilitate their imports and trade in the construction sector.
The Costa Rican Chamber of Construction (CCC) and the Chamber of Industries of Costa Rica (ICRC) reached an agreement which allow regulations to come into effect which will control the quality of the rods. The technical regulation was issued by the Ministry of Economy, Industry and Commerce (MEIC).
President Chinchilla has called on Congress to deal with the project for a law deemed essential by the industrial sector.
From a press release by the Chamber of Industries of Costa Rica (ICRC):
The Chamber of Industries of Costa Rica, welcomes the decision by the Government of the Republic, to convene the Electricity Contingency Act.
Industrialists reaffirmed that such a contingency exists, not because the country is suffering from blackouts, but because the energy that is needed is produced by diesel or bunker fuel and this is strongly affecting electricity rates.
In Costa Rica entrepreneurs are asking for technical education to be responsive to the actual demand of productive sectors.
Costa Rican businesses believe that in order to achieve this goal the National Training Institute must respond to the changing technical criteria and engage more with businesses.
While the National Training Institute (INA) has made efforts in staff training, the business sector believes that it must work more efficiently according to what the market is constantly demanding. "The issue has been put on the table, once again, by the Chamber of Industry (ICRC) in its proposal for the 2030 Industrial Policy ...", reported Elfinancierocr.com.
The industry is proposing the creation of a National Promotion Agency for Innovation to promote competitiveness, employment, human development and the environment.
During the celebration of the 70th anniversary of the founding of the Chamber of Industries of Costa Rica (ICRC by its initials in Spanish) a proposal was made to develop an industrial policy from now through to 2030.
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