The Executive argues that foreign companies planning to invest in the country desist from doing so if they are not provided with tax incentives and the possibility of paying differentiated wages.
The Government is continuing to put pressure on Congress to approve the Investment and Employment Act which has been temporarily suspended due to several actions of unconstitutionality presented before the Court. State representatives say that if the option of differential wage is discontinued permenantly, several foreign companies will desist from making investments in the country.
Despite objections from the construction sector, the new regulation eliminates the maximum weight of 50 kilos per package and indicates that the recommended use by date should be established by a certified laboratory.
The construction sector is warning of loss of quality in the product, if the government approves the decree changing the rules for storage and packaging of cement.
In the coming days a decree amending regulations on cement will be published, "... without waiting for the outcome of a commission of experts," led by the National Institute of Technical Standards (Inteco). Representatives from various sectors affected by the change in the rule argue that "... Technical studies show a decline in quality if [cement is] stored beyond 45 days ", as proposed by the new regulation.
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. On the other side, the Agricultural lobby is against it and states that accession would mean that sectors which have been protected in these agreements would be left vulnerable.
A subsidiary of a Chinese cement company was registered in the country in November and since December preparations have been made for changes to the regulation of cement sales, making the shelf life of the material more flexible.
The company Sinocem de Costa Rica SA, part of the JCB Group, is looking to import cement into the country taking advantage of "... The longer shelf life which allows the long journey from China and would provide a margin for its sale."
Instead of liberalizing the price of grain from 2015, the government is considering implementing a gradual deregulation scheme.
In order for the local price of rice to approach the international price, the Costa Rican authorities will substitute, in the first weeks of next year, the decree liberalizing the price of rice and look for "... Another decree which contains a process that allows the price of rice to reach similar (international) levels . "
The Solis administration is relaunching a bill which aims to set the maximum allowable interest rate for any type of loan.
Although the so called usury rate is part of Costa Rican law, it is not specified how much the rate should be. Because of this, "... the Costa Rican financial market offers various loans with very high rates that could be punishable, but the gap in the law does not allow the courts to determine what is a high or low rate."
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.
The Producers Guild has revived efforts to create a technical regulation which requires roasters to indicate the origin of coffee on packaging.
Increased imports of coffee from countries such as Nicaragua, Guatemala and Peru have led the production sector to revive a proposal made in 2011 that would require companies to indicate whether packaged coffee is national or purchased from abroad.
Rice producers fear not being able to sell their rice harvest because of the entry of rice from countries such as Argentina, Brazil and Uruguay at much lower prices than local ones.
"At great risk are 60,000 hectares of rice, for which there is no known market for this production because Costa Rica is being invaded by milled rice imports from southern countries (Argentina and Uruguay)," said the new President of the National Assembly of Rice Producers, Domingo González. "
Small hotels can not compete with the low prices used by big international chains in the sector to attract customers.
Entrepreneurs in the tourism sector in destinations in Manuel Antonio, Quepos and Aguirre are demanding urgent action by the government to halt what they call unfair competition, which coupled with the low influx of tourists in the area and the absence of a strategy for tourist attraction, is leading small hotel companies to bankruptcy.
Cement in Costa Rica is twice as expensive as the U.S. and general building materials cost 1.5 times more than in the U.S. and Europe.
In Costa Rica the cost of cement and its derivatives represent 30% of total construction cost of a luxury building and up to 50% on buildings that are semi luxury or of popular interest.
"The international price of cement, in mid-2007, reached a maximum of $90 per metric ton.
Mortgage inventories, cash flow, contracts, intellectual property, trademarks, among others, can be used as an alternative option to traditional collateral on real estate.
Additionally, the law passed by the Legislature on April 30, also allows for current assets or rights given in contracts, equipment, accounts receivable, chattels, crops, tourist bookings and even future rights to the value of timber to be taken into account.
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