In Costa Rica, legislative initiatives are being prepared to restructure the credit portfolios of small and medium agricultural producers affected by climate phenomena.
One of the initiatives includes the purchase of the credit portfolio to readjust the debts of producers affected by climatic phenomena and who are unable to pay. The credits that would be applied in this case would be those of $35,000 or less.
Although in Costa Rica the procedures for approving new pesticides that enter the market should take a few weeks, there are processes that have not been processed for more than ten years, which prevents increasing and improving the supply of products.
The State Phytosanitary Service (SFE), which is part of the Ministry of Agriculture and Livestock, accumulates dozens of files that are still pending approval, including some that have been waiting for more than a decade.
The OECD has pointed to an overabundance of institutions: 11 institutes, 6 corporations, and 9 sectoral committees including organizations for children, young people and rural women.
Nacion.com explains that "...The OECD criticized the large number of institutions in the public agricultural sector and said that this complicates sectoral decision-making.An organizational chart requested of the Executive Secretariat for the Agricultural Sector Planning (Sepsa), attached to the MAG, shows that there are 11 institutions, six corporations (such as Corbana) and nine sectoral committees, among them the National Council Club 4-S "
The agricultural union is upholding its position against entering the block and has unlinked itself from the group consisting of other business chambers which is lobbying for accession.
Crhoy.com reports that "... 'The agricultural sector grouped in the National Agricultural Alliance (ANA) sent a letter to President Luis Guillermo Solís in which it expressed opposition to the entry of Costa Rica into the Pacific Alliance. "
While in Nicaragua and El Salvador the minimum monthly cost of farm labor is just over $100, in Guatemala it is $345 and in Costa Rica it is over $460.
In a region where agricultural production is relatively the same in most countries, production costs are very different, resulting in very different levels of productivity that ultimately benefit some more than others.
The sector that used to be the basis for the country´s economic and social development in the last century is now suffering from a severe crisis of profitability.
The President of the National Chamber of Agriculture and Agribusiness of Costa Rica, Juan Rafael Lizano, summarised the figures that account for the decline in the sector, noting factors such as greater fuel costs, the high cost of labor, and difficulties in access to credit.
Data from the last official survey indicates that the number of jobs in the sector fell from 285,076 in 2010 to 213,155 in 2014.
Data from the last official survey indicates that the number of jobs in the sector fell from 285,076 in 2010 to 213,155 in 2014.
Agricultural sector leaders asked the government to freeze wages in the second half, improve the availability of credit, and change the exchange rate policy to overcome the crisis that has worsened in the last year.
While the government makes further assessments over joining the bloc, the agribusiness sectors is emphasizing the negative consequences of any renegotiation over tariffs.
Representatives from the agricultural sector argue that the country's entry into the Pacific Alliance will mean "... losing some of the conditions achieved in existing free trade agreements." Currently "...
Although both parties have expressed interest in renewing the agreement negotiations have been stalled since May.
The parties have opposing positions and this led to the current situation where no agreement has been reached. The renegotiations were started in late 2011, as the treaty did not include modern standards regarding services and conflict resolution.
The newly approved project establishes tax calculations based on the historical value of the properties, not applying the rates developed by the Ministry of Finance in 2008.
The tables compiled by the Ministry of Finance "equate the value of agricultural land to urban and tourism projects, which made the price of farms engaged in agriculture go through the roof", reported Nacion.com
Costa Rican agricultural employers are demanding from the state better management of FTAs that ensure reciprocity in the application of sanitary and phytosanitary rules.
There is no agreement between the arguments given by the government authorities and demands posed by members of the National Chamber of Agriculture and Agribusiness (CNAA).
According to the Ministry of Foreign Trade, agriculture is one of the sectors that most benefits from the free trade agreements negotiated. On this issue, the Deputy Minister Fernando Ocampo told Nacion.com, "that the administration of the treaties is far more complex than it sounds and involves multiple entities, with the aim of reducing costs for exporters and importers therefore improving competitiveness."
Agricultural producers have pointed out that the Colombian economy is in direct competition with the Costa Rican one in terms of production, and they see no profit in a trade agreement.
The agricultural and agribusiness sectors of Costa Rica joined the national industrial sector in opposing a possible FTA with Colombia because of its economy’s highly competitive position in relation to Costa Rica.
Challenges to the sector include possible environmental laws on water use and real estate taxes.
Based on the preliminary results of 2011, growth forecasts for this sector for 2012 are not more than 1%. Authorities from the Ministry of Agriculture and Livestock, agree with agriculture leaders and the economist and former Minister of Foreign Trade, Alberto Trejos.
Complaints have been made about loss of competitiveness due to fuel costs being the highest in the region.
A study by the National Chamber of Agriculture and AgroIndustry (CNAA) states that in June the price of a gallon of diesel cost, on average, $4.71 in Costa Rica, $3.76 in Panama, $4.02 in Guatemala , $4.44 in Nicaragua , $4.15 in El Salvador , and $4.20 in Honduras.
The Costa Rican agricultural sector has reacted negatively to news of the consultation announced by the Costa Rican Trade Ministry.
Last Monday the ministry (Comex) gave notice to the agricultural sector of a consultation to review and eventually reduce import tariffs for some commodities. This received a strong reaction from the Costa Rican chamber of agriculture (CNAA).
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