In Costa Rica, it is estimated that illegal trade mobilizes around $1.230 million per year, which is equivalent to 7% of household consumption.
According to a study by the Costa Rican Chamber of Commerce's (CCCR) Illicit Trade Observatory, the products most affected by smuggling are cigarettes, alcoholic beverages, spare parts for vehicles, clothing, pharmaceuticals and medicines.
In Panama, a bill proposes reinforcing coercive measures for customs offenses with penalties ranging from $250, to a fine equivalent to the value of the unpaid taxes.
The Ministry of Economy and Finance explained that the bill proposes "to facilitate greater collection, in any of the instances that sanction the crimes of customs fraud and contraband."
In Costa Rica a considerable increase has been reported in the illegal transfer of agricultural products such as avocados, which have been banned from Mexico for almost three years.
Crhoy.com reports that "... 'The Fiscal Control Police (PCF) reported a change in the trend of items confiscated in the first quarter of 2018. This is because they have detected significant shipments related to products such as avocados and garlic."
It is estimated that in 2015 illicit trade and customs fraud added up to $2.2 billion, equivalent to 3.5% of GDP.
Cereals, animals, meat and meat products, bakery products, sugar, macaroni and noodles, dairy, alcoholic beverages and textiles topped the list of products most affected by illegal trade, according to a study by ASIES.
The devaluation of the Mexican peso has worsened the problem in the border areas, where it is estimated that 70% of all products sold are illegal.
The Association of Manufacturers of Food Products (Grefal), says the problem is more serious in the departments of Quetzaltenango, Retalhuleu, Coatepeque, San Marcos and Huehuetenango. Thereseven out of every ten of the products traded"... are contraband that comes in through the Mexican border."
The private sector has signalled an increase in seizures of drugs, food, smuggled cigarettes, and consumer products from illegal sources.
From a statement issued by the Chamber of Commerce, Industries and Agriculture of Panama (CCIAP):
The Chamber of Commerce, Industries and Agriculture of Panama (CCIAP) has expressed concern over the increase in illegal trade including smuggling, counterfeiting and piracy.
Entrepreneurs are demanding an acceleration of discussions in the Assembly to approve a bill which introduces the concept of "fractional smuggling" and toughens penalties.
From a statement issued by the Costa Rican Union of Chambers and Associations in the Private Business Sector (UCCAEP):
The Costa Rican Union of Chambers and Associations in the Private Business Sector (UCCAEP) is calling on the members of the Commission on Security and Trafficking in the Legislative Assembly to approve project n° 19,407, entitled "An Act to Improve the Fight Against Smuggling".
The government is looking for alternatives to resolve the conflict between producers and traders, which has generated shortages and led to a rise in prices.
In recent weeks the shortage of meat in the country has caused an increase in prices in the market, despite being one of the products in a list whose prices are controlled. A pound of meat has risen to $2.75. This shortage is attributed to illegal smuggling of cattle to Guatemala.
The complaints made by industrialists revolve around informal trade, the fight against smuggling, competitiveness and innovation.
From a statement issued by the Chamber of Commerce of Costa Rica:
At a meeting between the President of the Republic, Luis Guillermo Solís, and representatives of the Chamber of Commerce of Costa Rica several concrete proposals were presented to the Government in four priority areas for the work of the organization, in order to start work together.
Costa Rica has the largest share of illegal liquor in the market of all the countries in Central America with 22%, while the average in other countries in the region is 8%.
Costa Rica also ranks among the top five countries in Latin America for having the most bootleg liquor in their markets, according to a study prepared by Euromonitor International for the Association of Producers and Importers of Alcoholic Beverages in Costa Rica (Apibaco).
Traders require the intervention of the governments of both countries to curb the smuggling of weapons, drugs, migrants and goods.
According to Juan Arnoldo Diaz, president of the Association of Mexican Organized Traders, monthly smuggling between the two countries is worth $800 million.
According to the business leader, on the border there are eight legal crossings but there are also another 53 crossings where illegal contraband circulates freely.
Guatemala's Conacon estimates that the state loses no less than $1.6 billion a year in unpaid taxes due to contraband.
The information was released by Manuel Chocano, Executive Secretary of the National Commission for the Prevention and Combating of Customs Fraud and Smuggling (Conacon).
The official said that the problem is getting worse as in previous years the illegal trade amounted to about $1.25 billion.
Central American Business Chambers call for stopping unfair trade in both directions between the two countries.
"We must, as soon as possible, stop the illegal movement of goods from Guatemala to the southern border of Chiapas, in order to be able to aspire to making progress on all our objectives in this new era of trade between Mexico and Central America," said Jose Mejia, president of the Central American Binational Union of Chambers of Commerce, Industry and Investment.
Central American industry is calling for strengthening of customs controls in the region, in order to contain the constant border crossings made with smuggled goods.
According to Carlos Enrique Rivera, secretary general of the Federation of Chambers and Industrial Associations of Central America and the Dominican Republic (FECAICA), at the border located in Melchor de Mencos, Peten, which borders Belize, there is no control to prevent the entry of illegal goods, which apparently heads toward Mexico, but 15% remains in Guatemala, without having made tax declarations.