The government's decision to forbid the addition of other products as a perk included with sales of rice is another clear example of its efforts to protect an increasingly competitive sector.
The Solis administration has banned, by means of an amendment to the Regulation on the price of milled rice, the addition of other products as a perk included with sales of the grain, a practice known among retailers as "bandeo".
Protectionist measures that favor dominant firms in domestic markets only extend the inevitable process of globalization, making it more expensive for consumers.
Whether a milk is 'good' or not is decided by consumers themselves by evaluating its quality and cost.Milk has no nationality.It's just milk.
Three years after being signed, the Colombian Constitutional Court has approved the bilateral agreement that liberalizes 75% of industrial products over terms of 5 to 15 years.
This was the last institutional step needed to for the FTA between Costa Rica and Colombia, as the Central American country had completed all the necessary procedures, leaving only formal communication from Colombia to Costa Rica remaining, so that the agreement will go into force 60 days later.
The National Rice Corporation states that adhering to the regional initiative blights what has been achieved in bilateral agreements with each country in the Alliance.
The Costa Rican agro industry has closed ranks against the country's accession to the Pacific Alliance. Both producers and the minister himself, Luis Felipe Arauz, have stated that the agreement is unfavorable for products such as rice, coffee, swine, beef cattle, ornamental flowers and strawberry growers.
They argue that joining the bloc offers growth potential for commercial partners who to date represent only 4% of total exports.
Enrique Egloff, president of the Chamber of Industries of Costa Rica provided support for this with figures which show that in 2015 Costa Rica's exports to the countries in the Pacific Alliance totaled $377 million and imports $1.786 billion.
The private sector is demanding homogeneity in the foreign trade strategy, since the situation today is that there is "one protectionist minister and another who works for free trade."
In the words of José Manuel Quirce, president of the Chamber of Importers of Costa Rica (Crecex), the Solis administration needs to focus on "... harmonizing approaches in foreign trade" in order to avoid having one agriculture ministry imposing nontariff barriers to protect local production, and at the other extreme another minister of foreign trade promoting free trade.
There is still no legal framework to manage the international cooperation funds that would finance the implementation of the customs union between the two countries.
Even though the Central American Economic Integration Secretariat (SIEC) announced "progress" in the process of the Customs Union between Guatemala and Honduras, Elperiodico.com.gt denounced the obstacles preventing it, "...
The governments have confirmed that the process of technical implementation of the customs union will take between five to six months.
The Minister of Economy and Finance Ruben Morales referred to the process of the Customs Union between Guatemala and Honduras as "a gradual and progressive process, since its implementation will take five to six months. This process involves several institutions in the two countries. "
The decree approved by the Guatemalan Congress was the missing step needed to implement the free movement of people and goods between the two Central American countries.
From a statement issued by the Ministry of Trade:
Guatemala, January 22, 2016. The Congress of Guatemala yesterday approved a Protocol Enabling the Deep Integration towards the free movement of people and goods between the Republics of Guatemala and Honduras.
In Costa Rica the virtually monopolistic Industrial Sugar Cane Agricultural League is supporting a recent decree that protects blocking imports of sugar by forcing sugar fortification to be done it its place of origin.
EDITORIAL
A statement issued by the Industrial Sugarcane Agricultural League (LAICA) abounds in views on the relevance of sugar fortification -which nobody questions-, and on the supposed benefits that the company brings to the Costa Rican consumers, including " stable prices. "
The country wants to take advantage of the tariff preferences it has to export shoes to the United States and the European Union so as to attract foreign investment to the sector and turn it into an export platform.
From a statement by Pro Nicaragua:
All footwear manufactured in Nicaragua has duty free access to the United States, the European Union and other important markets.
Analysis of the impact of the Trans-Pacific Partnership on the region.
The competition which sectors such as textiles could face is one of the elements raising questions among employers in the region, compared to the real benefits that could be accrued if Central America participates in the Strategic Economic Trans Pacific Partnership (TPP).
The presence of direct competitors, such as countries like Vietnam, in the textile sector, and the possibility of losing dominance in the American market due to trade rules that TPP countries must meet, is unsettling the productive sectors in the region and forcing a reckoning of the pros and cons of a possible entry to the block to be undertaken.
Central American exports destined for the EU in the first quarter of 2014 totaled $1,021,600,000, down 10.5% compared to the same period in 2013.
From a report entitled "Central America's Bilateral trade with the EU: Evaluation of the first quarter of 2014" by SIECA:
Part IV of the Association Agreement between Central America and the European Union (EU-CA) took effect for each of the Republics of the Central American side in 2013.
Making it clear that their international trade policies will be more protectionist than those of previous governments, the Solis administration has poured cold water on the accession to the group formed by Mexico, Colombia, Peru and Chile.
Editorial
This theme marks the differences within the government of President Luis Guillermo Solis. While the Minister of Foreign Trade (COMEX) Alexander Mora would be inclined to maintain the openness to the world that has characterized Costa Rica in recent years, Luis Felipe Arauz, Minister of Agriculture and Livestock (MAG), publicly expressed opposition to entering the block of nations under the current conditions.
The Costa Rican Congress approved on its first reading a Free Trade Agreement which makes 71% of the market for goods and services in Colombia duty free.
On Monday, the Legislative Assembly of Costa Rica approved on its first reading the Free Trade Agreement with Colombia. The entry into force of this trade agreement is needed in order to allow the Central American nation to join the Pacific Alliance.