After Nicaraguan authorities imposed in their customs a $50 payment to each cargo vehicle transiting through their territory, Costa Rica requested a meeting to review the issue.
On March 15 of this year, Nicaraguan authorities began to collect a customs tax on the transportation of cargo in transit or with final destination in the country, which consists of the payment of $50 for each transport unit of goods that passes through land customs.
Central American businessmen assure that the customs tax on the transport of cargo in transit or with final destination that the Nicaraguan government wants to impose "threatens the instruments of Central American integration, and becomes an obstacle to intraregional trade.
Weeks ago it was reported that from March 15 would begin to collect the customs tax, however, the authorities did not specify what amount will be required from carriers.
In order to minimize some of the impact that the Nicaraguan crisis has had on intraregional trade, the governments of Costa Rica and El Salvador have announced that they are now in a position to start ferry operations.
After unsuccessfully trying to implement this maritime cargo transport option, in May of last year the Spanish shipping company Odiel decided to end the negotiation process to operate the ferry, due to a disagreement over the setting of tariffs that would have to be charged for the service. Since then, the project has been forgotten.
With the paralyzation of the cargo transport and the retention of about 6 thousand units in Nicaragua, the region is starting to feel the effects of a crisis with no potential solution in the short term.
The crisis in Nicaragua has created high costs in all countries in the region, as according to the latest report it is estimated that at least some 6,000 heavy cargo vehicles are trapped due to the violence and blockades that have intensified in the last weeks.
Trade in goods in the region is showing signs of recovery with an increase in exports to third-party trading partners and an increase in intraregional imports.
From the Trade Monitor report by the Economic Secretariat for Central American Integration (SIECA):
Central America, July 10, 2017.Trade in goods in Central America shows signs of recovery with an increase in exports to third-party trading partners and an increase in intraregional imports, according to figures from the most recent Central American Trade Monitor for the first quarter of 2017.The main results derived from the Monitor are as follows:
On the Nicaraguan side everything is ready for cargo transported to and from the port of Limon to save 160 kilometers, through the customs post of Las Tablillas, but endless red tape is preventing works from starting in Costa Rica.
The Legislature granting approval for a loan to finance the work, completion of administrative procedures, the holding of a tender to hire a project manager who must then then tender the work internationally, are all of the steps that have to be completed to just to get work started at the customs post in Las Tablillas.
A rise of up to 25% in the value of the cargo, and possible total loss is the result of the slowness with which goods are transported through the region.
"Four times slower than the world average"is the speed at which the terrestrial cargo moves through Central American countries according to Jaime Granados, from the Inter - American Development Bank (IDB).
A new web platform belonging to the SIECA aims to simplify and harmonize procedures for the sanitary registration of processed foods and beverages in Central America.
A statement issued by the Sieca explains that"...TheRegional Integration System for Health Records(SIRRS) is a regional automated system for the recognition of medical records to be administered by SIECA and aims to simplify, harmonize and automate procedures for sanitary registration of processed foods and beverages in Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. "
Customs Union between Guatemala and Honduras passes implementation phase after submission of the Enabling Protocol to SICA.
From a statement issued by the Secretariat of Central American Economic Integration:
Central, 4 May 2016. The Republics of Guatemala and Honduras, accompanied by the Secretariat of Central American Economic Integration (SIECA), officially delivered the Enabling Protocol for the Deep Integration Process into the free transit of goods and individuals between the two countries, for its submission to the General Secretariat of the Central American Integration System (SICA).
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 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.
It has been reported that the passage of cargo and passengers through the border post of Peñas Blancas is closed due to the crisis caused by the presence of Cuban migrants in the area.
The Costa Rica union of importers reported that between November 16th and 17th several vans loaded with goods are being held up at the border post, waiting for the passage to be opened in both directions.
The Ministries of Finance have concluded an agreement to reimburse double charging of tariffs on products entering the EU from the region.
Currently, goods entering the European Union in one country which are then transported to another, pay tariffs at each of the borders. With the agreement, the entry fee will be paid only once. This was one of the requirements demanded in the Association Agreement with Europe.
"It is we ourselves who are still looking ourselves as independent countries, when in fact we must work even harder on this unification."
In his article published in the magazine industry, the executive director of the Chamber of Industry of Guatemala Javier Zepeda, describes the situation which as yet has not be able to be changed: the plan for regional integration only exists on paper.
Now is the time to fulfill the clear mandate of the Presidents of the Central American Integration System for the establishment of a Customs Union in Central America.
From a statement issued by the Federation of Chambers of Commerce of Central America (FECAMCO):
The Federation of Chambers of Commerce of Central America (FECAMCO) held in San José, the transfer of chairmanship of this regional entity to the Chamber of Commerce of Costa Rica for the period 2015.