In Costa Rica, the Chamber of Commerce opposes the agreement signed between the rice sector and the government, which maintains the fixing of the price and the 35% tariff on grain imports.
The decision was made on August 23rd in the framework of the meeting in which the National Production Council (CNP), the National Rice Corporation (CONARROZ) and the Ministries of Economy, Industry and Commerce (MEIC) and Agriculture and Livestock (MAG) participated.
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.
Arguing that the unusual growth in sugar imports is harming local production, the Alvarado administration decided to raise the tariff on products entering Costa Rica from 45% to 73% for a three-year period.
The Ministry of Economy, Industry and Commerce (MEIC) concluded the investigation requested by the Agricultural Industrial League of Sugar Cane (LAICA) and 4 mills, on the safeguard measure against imports of solid state, granulated sugar, known as white sugar, used for domestic and industrial consumption, justifying a deterioration in the main economic indicators of the National Production Branch (RPN), details an official statement dated June 15.
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.
In Costa Rica, importing companies are against the ArcelorMittal proposal, which consists of raising the steel rod income tax from 1% to 15%.
On November 5th, a public audience was held in which importing companies and ArcelorMittal presented their arguments before the Ministry of Economy, Industry and Commerce (MEIC) regarding the proposal to raise the import tariff on steel rod by 14%.
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".
Within the Economic Council of Government Luis Guillermo Solís' ministers are divided with some favoring openness to international trade, and others wanting to protect vulnerable sectors.
The Ministry of Foreign Trade, which is in favor of accession, argues that there are free trade agreements with member countries of the Alliance, meaning that they would only be strengthening commercial ties.
The Economy Ministry has rejected a request by producers to temporarily raise the tax on imported grain, but has not ruled out doing so from December 2014.
From a statement issued by the Ministry of Economy, Industry and Commerce (MEIC):
The Ministry of Economy, Industry and Commerce (MEIC), through Resolution 051-2014-DM has decided, after a thorough technical analysis in which it was determined that there exists a causal relationship between an increase of the imports of husked rice contemplated and the threat of harm to the domestic industry, not to apply provisional safeguard measures on imports of the product concerned.