On April 26, Brazil will reactivate again on the agenda of the World Trade Organization, the complaint against Costa Rica for the imposition of a safeguard to increase the tariff on sugar.
After the Costa Rican authorities raised the tariff on imported sugar from 45% to 73%, the South American country decided to raise before the World Trade Organization, a process to exercise the right of suspension.
In June of this year, the Alvarado administration decided to increase to 79% and for the term of three years, the tariff on sugar entering the country.
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.
In Costa Rica, sugar producers are asking the government to raise tariffs or entry taxes on imports, and importers are opposing, as this would raise the final price to the consumer.
In July 2019, the Sugar Cane Industrial Agricultural League (LAICA) asked the Ministry of Economy, Industry and Commerce (MEIC) to launch an investigation with the aim of imposing additional tariffs on imported sugar, arguing that purchases from abroad would damage local production.
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.
The union of sugar producers may have presented inaccurate information to accuse a company for allegedly dumping of sugar from Brazil.
From a statement issued by Maquila Lama:
Maquila Lama requested the hearing after being denounced for importing sugar from Brazil
LAICA and perito must testify about the test for an alleged case of dumping
• Legal Advisor to Maquila Lama warns of severe implications of providing a document that does not have support or validity for the opening of an investigation.
Exporters of dehydrated ethanol claim that the U.S. is applying an ad valorem tax of 2.5% which is outside of the provisions of DR-CAFTA.
According to Anabel González, the Minister of Foreign Trade (Comex), Costa Rica has not exported the product during the second half of 2013, because the annual quota for receiving the benefits is 31 million gallons.
The 6,330 tons are part of the quota of 8,110 for 2013 negotiated under the framework of the Association Agreement with the European Union.
"Costa Rica is entitled to a quota of 19,464 tonnes, but for 2013 it is 8,110 tons, because the CAAA did not come into effect until October 1st," said Edgar Herrera, executive director of the Agro-Industrial Sugarcane League (Laica) .
Sugar growers are confident they will obtain access to China's market.
This is the opinion of Edgar Herrera, executive director of the Sugar Cane League, who also said that they "... are used to be one of the last negotiated items in Free Trade Agreements, as it is usually a sensitive product".
Other categories also awaiting definition in the final negotiation stage are meat, coffee and banana.
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