As a result of the blockade that has been in place since July 2020 on the entry of animal products from Costa Rica into the Panamanian market, Costa Rican exports to Panama are reported to have fallen and companies such as Dos Pinos are reporting losses in the millions.
The trade conflict began when Panama informed the National Animal Health Service (SENASA), an agency of Costa Rica's Ministry of Agriculture and Livestock (MAG), of the decision not to extend export authorization to a list of previously authorized Costa Rican establishments that have been trading in the Panamanian market for many years.
Unless intra-regional trade in chemical contents and residues, micronutrients and food preparations is regulated in a balanced manner, trade relations in Central America could face obstacles in the future.
Trade between Central American countries is essential, since a considerable proportion of foreign sales by local companies are destined for other markets in the region.
Due to the tropical storms Eta and Iota, severe damage has been reported to the road network in Central American countries, and some border posts in Guatemala, Honduras and El Salvador have been suspended.
Since November 17, operations were suspended at the El Corinto, El Florido and Aguas Calientes border posts. These areas, shared by Guatemala and Honduras, are not operational, according to the Guatemalan Superintendence of Tax Administration (SAT).
As of October 1st, Guatemala and Honduras will begin operating three Peripheral Customs Offices, areas that will simplify procedures and allow free community mobility between both countries.
Guatemalan and Honduran taxpayers who make definitive imports to each State Party will be the ones to benefit from the implementation of this type of customs, since the goods imported under this modality will enjoy free mobility.
In response to the restrictions applied to Costa Rican pilots, who are prevented from leaving with cargo from Panama, since July 14 Costa Rica has not allowed trucks with Panamanian plates to leave carrying goods.
Because of the spread of covid-19, Costa Rica was the first country to impose restrictions on cargo transport units from other countries in the region. Faced with this decision taken unilaterally, governments applied reciprocal measures.
Arguing that it is not allowed to leave with cargo from the rest of the countries in the region, Costa Rican transporters are protesting at the border between Costa Rica and Panama, and are asking the authorities to apply reciprocal measures.
The discontent of Costa Rican businessmen could hinder the transit of goods in Central America, and although as of midday on July 7 no blockades of cargo transport had been reported, the sector does not rule out extending the protests.
Local authorities decided to extend from 3 to 10 days the maximum period that drivers of international cargo transport are allowed to stay in Salvadoran territory to unload or load merchandise.
Due to the spread of covid-19 Costa Rica was the first country to impose restrictions on cargo transport units from other countries in the region. Faced with this decision taken unilaterally, the governments applied reciprocal measures.
After the difficulties generated by the restrictions imposed by Costa Rica on the entry of cargo from neighboring countries were overcome, the Costa Rican pilots denounce that the authorities of the region, far from applying reciprocal measures, have established "repressive measures."
Between May 18 and June 1, 2020, the free transit of goods in Central America was interrupted.
From three to five days, the time that Costa Rican carriers have available to stay in Nicaraguan territory, to unload goods or for regional transit, was increased.
After several days of tension generated by the restrictions imposed by Costa Rica on the transport of cargo from neighboring countries, Central American authorities reached an agreement and opened the way at the border of Penas Blancas.
Since January 1, 2020, Nicaraguan authorities have been charging $25 for the electronic processing of the Single Central American Transit Declaration, a cost that exceeds by 233% what was paid until the end of 2019.
Until December 31 last year, the General Directorate of Customs Services (DGA) charged $7.5 for the Single Central American Declaration in Transit (DUCA), but with the new provision of the authorities, the cost increased by $17.5 for 2020.
The Mocalempa customs and immigration control post in the Honduran province of Lempira began operating.
In order to make it easier for customs users to pay taxes and combat smuggling, the Government of the Republic, through the Presidential Commission for Comprehensive Reform of the Customs System and Trade Operators (Coprisao), today opened Customs Mocalempa, in the Mancomunidad Mapulaca, south of the department of Lempira, border between El Salvador and Honduras, informed the Presidency of Honduras.
After having been extended several times, the contingency plan for DUCA F and DUCA was finalized on July 8, however, there is uncertainty because the platform is not fully operational.
Because the implementation of the Central American Single Declaration continues to generate problems in customs in the region, the contingency plan for DUCA F and DUCA was extended until June 27.
"If you use the Contingency Plan, we suggest that you make sure you arrive at the destination country with the DUCA F and DUCA T duly processed and the supporting documents," reported the Guatemalan Association of Exporters.