Nicaragua is able to sell 10,163 metric tons duty free to the EU.
Altogether, the Central America's total export quota adds up to 150,000 tons.
Mario Salaverria, president of the Sugar Association of El Salvador said the decision to sell the sugar was due to "uncertainty about the problem they had with Italy and that delivery times won't allow them to make the most of this access."
Nicaragua and Honduras are allowed to sell 65,000 more metric tons duty-free to the European Union.
The country has given approval for both Nicaragua and Honduras to receive this benefit temporarily, until the trade agreement becomes effective for Guatemala. "The Council of Ministers of Economy and Trade for Central America (Comieco) gave authorization this weekend for each country in the region to be able to make available its quotas at will" reported Nicaraguahoy.info.
The auction to place 17,000 tons with 35 European buyers was annulled because of an inability to meet deadlines.
The information was confirmed by Mario Amador, general manager of the National Committee of Sugar Producers (CNPA). "... The auction in which Nicaragua and Honduras intended to sell about 17 thousand tons to 35 European buyers from 10 business houses set up in different countries, could not be completed because of non compliance with certain technical conditions ...", reported Elnuevodiario.com.ni.
The sector, which was ready to export 10,000 tonnes of sugar to the European Union, must wait two more months to do so.
Non-acceptance by dairy farmers in El Salvador and Costa Rica of the geographical indicators for Italian cheeses has caused a delay of at least 60 days of the entry into force of the Association Agreement with the EU.
"We were ready to export, but if there is no treaty we will have to send the sugar to another market at a lower price than would have been paid by the Europe" said Julio Arroyo, CEO of the Sugar Association of El Salvador.
If Salvadoran Congress has not approved the Association Agreement with the European Union before July 15, the country will lose the benefit of exporting sugar to Europe duty free.
This was stated by the Association of Sugarcane Growers of El Salvador (Procaña), who demanded that the Salvadoran Congress ratify the agreement soon. "Of this amount, El Salvador is entitled to a share of 24,391 tonnes while Guatemala can export 65,000, Nicaragua 21,681, and Honduras and Costa Rica can export 19,464 each," noted an article in Elsalvador.com.
In the absence of ratification of the Agreement, the agricultural sector sees its 2013 and 2014 harvests in danger, as European buyers are already negotiating with other Central American countries.
Alvaro Saenz, president of the National Chamber of Agriculture and Agribusiness (CNAA), said the delay in the approval of the CAAA compromises the sector since on June 15 Europe will announce which countries will enter into the first block of the trade agreement to set export quotas.
Europe would admit up to 60,000 tons of Central American sugar, 5% of the deficit in its annual consumption.
In the last round of negotiations of the Association Agreement between Central America and Europe, it was agreed to open the market at 35,000 tons, but the Europeans have given in more in recent mini-rounds, according to an article in La Prensa Grafica of El Salvador: "According to negotiation sources, they have given in a little bit more during the mini-rounds. In the last round, the proposal went up 60,000 tons.