ArcelorMittal has requested the restoration of a 15% import duty on steel rods, arguing that "the vast majority of these imports enter the country without paying taxes, taking advantage of a legal loophole".
After thereaction from the construction sector,the steel rod manufacturer in Costa Rica, ArcelorMittal, justified its decision to request an investigation from the Ministry of Economy, Industry and Commerce (MEIC) to decide if it will impose a safeguard measure and impose a 15% tariff on imports of the product.
The Canal Authority has announced that it will dismantle the old Miraflores revolving bridge and hold a tender to sell the ferrous material.
From a statement issued by the Canal Authority:
March 17, 2018.The Panama Canal is developing a plan to dismantle the old Miraflores revolving bridge, which has been in disuse for more than 20 years and which ceased to be functional with the construction of the new Cocolí locks in June 2016.
In 2016, imports of iron and steel sheets totaled $124 million, and the value imported from Guatemala grew by 58% with respect to 2015.
Figures from the information system on the Market for Iron and Steel Sheets in Honduras, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with the graph"]
In 2016 Central American countries imported $645 million worth of iron and steel sheets, 24% less than in 2015.
Figures from the information system on the Iron and Steel Sheet Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAPHIC caption = "Click to interact with the graph"]
Imports of iron and steel sheets in Guatemala in 2014 recorded a more than $1 million increase compared to 2013.
Some data in the report:
Imports of rolled products (hot), flat iron or non-alloy steel more than 10mm thick, showed an increase of $3.8 million between 2013 and 2014.
Imports of rolled Products (Cold) flat iron or non-alloy steel, of less than 0.5mm thickness decreased by $3 million between 2013 and 2014, going from $23 million to $20 million imported in 2014.
Despite opposition from the construction sector, the Ministry of Economic Development increased tariffs on imports of Chinese iron rods from 15% to 35%.
Authorities at the Ministry of Economic Development (SDE) argue that this temporary measure, seeks to protect the companies Aceros Alfa and Aceros Centro Caribe, which produce the rods. Domestic production of iron rod covers approximately 70% of demand and the rest is imported from China.
The union of exporters is preparing a meeting for May with Colombian and Guatemalan companies to look at opportunities offered by the FTA signed between the two countries.
From a statement issued by the Guatemalan Exporters Association (Agexport):
Under the framework of the Export Council for Mesoamerica and the Caribbean at AGEXPORT, the Department of Trade Promotion and ProColombia, held a meeting to organize a major event for next May.
There will be different quality certifications for rods which will facilitate their imports and trade in the construction sector.
The Costa Rican Chamber of Construction (CCC) and the Chamber of Industries of Costa Rica (ICRC) reached an agreement which allow regulations to come into effect which will control the quality of the rods. The technical regulation was issued by the Ministry of Economy, Industry and Commerce (MEIC).
The El Venado Mine has shipped its first cargo of iron oxide, more than 40 thousand tons, bound for China.
According to Henrique Ayala, manager of the consortium that runs the mine, this will be the first of many shipments which will be sent over the 20 year life of the mine.
Based on recent average prices of Honduran exports of the product ($43.80), the shipment will be worth about $1.7 million.
Coffee sales decreased by 30.1%, going from $408.2 million generated in the first quarter of 2012, to $282 million this 2013, ie a decrease of $122.9 million.
Regarding exports of petroleum, iron and steel, these declined by 26.1% and 25.6%, respectively, while rubber fell by 19.3%.
"The Bank of Guatemala (Banguat) reported that as of April, foreign currency exports totaled $3.538 billion, an increase of just 0.7%, compared with the same period in 2012," noted an article in Elperiodico.gt.
There is concern in Costa Rica over the impact of the possible entry into force of the Regulation on the price and the supply chain of this product.
From a press release from the Chamber of Commerce of Costa Rica:
The Chamber of Commerce of Costa Rica is deeply concerned about the Rod Regulation issued by the Ministry of Economy, Industry and Commerce (MEIC) and the impact that its possible entry into force may have on the price and the supply chain of this product.
A government commission has traveled to China to negotiate direct sales of iron oxide from the Agalteca mine.
This was stated by Santos Gabino Carvajal, president of the National Association of Metal Mining in Honduras (Anamimh), who in a meeting with Aldo Santos, chief of the Directorate for the Promotion of Mining (Defomin), explained that the idea is to send in directly iron oxide mined in Agalteca in Francisco Morazán.
Since there is no accredited entity to verify the quality of products, the regulations will not be able to be complied with and they could become a non-tariff barrier.
From a statement from the Costa Rican Chamber of Construction (CCC):
CCC SUPPORTS MEIC'S DECISION TO POSTPONE ENTRY INTO FORCE OF REGULATION ON RODS
The Costa Rican Chamber of Construction (CCC) expressed support for the decision of the Ministry of Economy, Industry and Commerce (MEIC) to postpone the date for the entry into force of the Technical Regulations on Rods, because we believe that consumers should have access to quality products , with a proper market verification platform, which is operational and has a clear set of rules for all those involved.