Paper and machinery are some of the goods that nicaraguan businessmen plan to import in large amounts with the upcoming elimination of the "patriotic" tax of 35% on colombian products.
The decision by Ortega government toabolish the 35% tax on imports of Colombian products, which has been in place since 1999, has been welcomed by the Nicaraguan private sector, which plans to increase imports of products such as machinery, paper and raw materials. The upcoming elimination of the tax, which must be approved by the Assembly, opens the door to new business opportunities between the two countries.
Aluminum containers for transporting milk and bakery machines are some of the goods added to the list of products which may be imported without tariffs.
From a statement issued by the Ministry of Commerce, Industry and Tourism:
Bogotá, DC, January 26, 2017.-A total of 636 new tariff items, including capital goods and machinery, were introduced to the assets that can benefit from the advantages offered by the Vallejo Plan.
In 2015 the Central American countries as a whole imported $167 million worth of tractors, of which 42% came from the US, 27% from Mexico, 8% from Brazil and 5% from Italy.
Data from the report 'Tractor Importsin Central America presented by the Business Intelligence unit at CentralAmericaData.com
The National Assembly has adopted a new regulatory framework for the activity of special transportation of fuel for farm machinery or equipment.
From a statement issued by the National Assembly of Panama:
The full National Assembly approved on Tuesday on its third reading Bill No. 403, which regulates the special transport of fuel for agriculture and dictates other provisions.
A bill seeks to exempt from sales tax imports of agricultural machinery, cleaning equipment and other inputs required by the agricultural sector.
The draft bill will be presented by the Executive Branch, and according Wilfredo Cerrato, head of the Ministry of Finance,"... once the proposal has been sent to the legislature for study the conditions will be defined for justifying exemption from payment of tax.'This will be how we handle the issue for any sector, because we have to see what we get in exchange for the state sacrificing taxes' ... ".
In Costa Rica the scarce inventory of public works projects and reduced activity in the agro industry is affecting sales by distributors of construction equipment and agricultural machinery.
Data from the latest report on the economic situation recorded an annual fall of 3.5% in activity in the construction sector and 0.20% in the agricultural sector. This data explains the discouraging results in machinery distribution companies, which have been slow since 2015.
An announcement has been made of a visit by a trade delegation of Spanish companies specializing in agricultural machinery, on April 18 and 19.
The Spanish Chamber of Commerce in Guatemala informed Prensalibre.com that a trade mission of Spanish business people will be visiting the country on April 18 and 19. It will be formed of 15 entrepreneurs from eight Spanish firms belonging to the Spanish Association of Agricultural Machinery.
Businessmen and importers of agricultural machinery argue that the payment of sales tax increases costs and reduces competitiveness of their production.
Imports of capital goods in the agriculture sector dropped from $57 to $54 million between 2014 and 2015, according to central bank data published by Laprensa.hn. The union of importers and the agricultural producers themselves say the cost has risen since the Law on Organising Public Finance, Control of Exemptions and Anti-Evasion Measures came into effect, a law which eliminated tax exemptions which had been granted to the agricultural sector for years.
In Nicaragua for every cultivated hectare, 39 kilos of fertilizer are used, in Panama the figure is 50 kilos, in Honduras, 58, in Guatemala, 97, in El Salvador, 135, and in Costa Rica, 264 kilos.
The study "State of the Global Food and Agriculture", by the Food and Agriculture Organization (FAO), details not only the use of fertilizer per hectare in Central America, but also the proportion of the value added in agriculture in each country.
Fewer construction projects for public works, large private works and low demand in the agricultural sector, are forcing companies to try to diversify markets.
Although it is expected that with the public infrastructure projects recently announced by the government the construction sector will start to recover, suppliers of agricultural and construction machinery predict a decrease due to production problems and declining projects.
Producers are complaining about a lack of agility and excessive paperwork in the process to request tax exemptions for the purchase of equipment and farm machinery.
Agricultural producers argue that they can not easily access the exemptions for the purchase of equipment which is established in the recently passed Tax Act. Although it has been stated that within three months the necessary reforms will be made for the exemptions to given on products and not producers, the current requirements are delaying procedures and access to the incentive on the part of the producers.
The government has announced the purchase of livestock feed and other agricultural materials, construction of wells and reservoirs, and the purchase and rental of machinery.
From a statement issued by the Presidency of the Republic of Costa Rica:
The government of the Republic will invest $29 million from the National Emergency Fund and from regular resources from various public institutions, in order to address the damages generated by the drought in some cantons in the Central Pacific and throughout the province of Guanacaste.
A Colombian company has obtained a patent on two machines that reduce water consumption in oil palm plantations, and has plans to install a plant in Guatemala.
The Colombian company Inal has obtained a first patent and it is expected that before the end of 2014 it will set up a pilot plant capable of processing ten tons of palm per hour.
The general manager of the company, Angel Acuna told portafolio.co that "...
In the event held by the Panamanian Chamber of Construction companies from the sector struck deals on home sales, farm and construction equipment worth $145 million.
Carlos Allen, chairman of the Committee on Trade at the Panamanian Chamber of Construction (CAPAC), told Panamaamerica.com.pa that "... factors such as low interest rates, the exhibition of agricultural and construction equipment, 'Do It Yourself' workshops, the Business Roundtable and Security Camp are some of the causes of the event surpassing expectations. "