The increase in Costa Rican exports during 2018 was mainly due to the performance of the 187 companies in the free zone, in contrast to the almost zero growth reported by companies exporting under the traditional scheme.
Figures from the Foreign Trade Promoter of Costa Rica (Procomer) detail that last year Costa Rica's exports totaled $11.312 million, 6% more than that recorded in 2017.
Exporters resent the effects of five continuous days of demonstrations, blockades and widespread insecurity on the roads of Costa Rica.
Before the strike, which was started a few days ago by unions representing the country's public institutions, the Chamber of Exporters of Costa Rica (Cadexco) denounced the fact that companies in the sector are facing multiple difficulties in exporting their products.Puerto Moín, the main outlet for exports, is onlyoperating six hours a day, leaving close to 12,000 tons per day unable to be shipped, which is estimated to be equivalent to almost $10 million in daily sales abroad.
The union of exporters has reported losses of $145 million, and more than 12,000 shipping containers held up because of the blockades which have now been going on for more than a week.
Reports indicate that two shipping companies have suspended operations at the ports and announced they will not disembark because of "inability to ensure the safety of their staff."This is just one example of the serious damage caused to in the country by the blockades and demonstrations held by truckers for almost a week at customs offices and ports in Guatemala.
The Guatemalan Exporters Association wishes to express to the different sectors involved in the current crisis affecting transport and the free movement of people and goods, the need to remedy the situation.
From a statement issued by the Guatemalan Exporters Association (AGEXPORT):
Agexport, in light of the strikes held by some heavy transport drivers on different roads, ports and customs offices in the country, states:
The union has exhausted dialogue with the regional government of Chiriqui and is a blockading the border preventing the movement of freight carriers in Central America.
The provincial government in Chiriqui has failed to prevent Panamanian carriers, organized by the National Chamber of Cargo Transportation in Panama, (Canatraca) from indefinitely blocking the passage of trucks across the border in Paso Canoas (information at time of going to press at 3:30 p.m).
The 29 ports on the west coast are once again operating normally, after an agreement between the union dockworkers and the Pacific Maritime Association was signed.
"... Port officials have said it will take six to eight weeks to clear the row of containers waiting to be loaded onto ships at the piers and several months for cargo traffic to get back to its normal rhythm.
Central American exporters are being recommended to keep using alternate routes during the union conflict which is causing ports to operate erratically.
From a statement issued by the Guatemalan Exporters Association (AGEXPOT):
The 29 main ports for goods moving from the West Coast of the United States, including Los Angeles and Long Beach, the main US ports, have been operating erratically since August 2014 due to a conflict which has been going on for months between the International Longshoremen and Warehouse Union from the West Coast (ILWU) and the Pacific Maritime Association (PMA).
For the private sector work stoppages at the ports of Limon in Costa Rica, have reaffirmed the urgent need for the country to build a port terminal in the Caribbean.
Costa Rican ports move the majority of cargo from international trade from Nicaragua, therefore abnormalities in the terminal operations affect the transit of Nicaraguan goods, because of the lack of a port on the Caribbean coast.
Only cargo destined for El Salvador should be charged with the $18 fee for the inspection with scanner, request freight carriers.
According to the Secretariat for Central American Economic Integration (SIECA), this fee violates conventions and trade agreements in the region. In addition, they believe that the inspections and the time it takes to submit all shipments to the procedures are excessive.
The regional union of freight carriers is protesting about the fee for inspections using scanners at Salvadoran customs offices and the delays it has generated.
The Central American Freight Council declared a protest strike at Salvadoran borders over the payment of $18 for the inspection of cargo travelling overland.
Regional unions are threatening a general strike in the Salvadoran border to protest at the rate of $18 per inspection at customs offices in that country.
S21.com.gt reports: "The new provision of the General Customs of El Salvador will take effect on 6 January, in light of this, carriers of the remaining five countries in the region have announced a general strike on the Salvadoran border if this legislation goes ahead. "
After the Salvadoran Supreme Court suspended the Fonat law, carriers decided to resume their work.
"There is no longer a reason for the strike," said Raul Alfaro, president of the Association of International Cargo Transporters (ASTIC).
"The Chamber accepted a constitutional challenge submitted by the ASTIC against the collection of accident insurance, namely the Fund for Victims of Traffic Accidents (Fonat), from which the Legislature excluded foreign transporters, but not Salvadorans," noted an article in Elsalvador.com.
The Central Council of Transport has announced a three-day strike in protest against El Salvador levying a tax on freight carriers of between $35 and $250.
Laprensa.com.ni reports that "the measure will affect all regional trade, because the rest of the international freight carriers from the isthmus will join the strike 'in solidarity' in order to send a message to other governments who have created new taxes on trade merchandise ... ".
With the uncertainty created over the strike at the ports of Limon and Moin, exporters are starting to think about sending out their products via Panama or Caldera on the Pacific.
In light of the shutdown of the ports where 80% of national exports exit the country, the export sector is analyzing alternatives.
Abel Chavez, president of the National Chamber of Producers and Exporters of Pineapples (Canapep) noted that among the possibilities being studied are transporting products via the port of Caldera, Costa Rica's Pacific port or via Panamanian ones. These options represent a major increase in costs for the sector.
Costa Rican Industrialists are asking for the ports of Limon and Moin to be removed from the hands of JAPDEVA, the current administrator.
A statement from the Chamber of Industries of Costa Rica (ICRC) reads:
- Industrial sector was exposed to millions in losses to the two-day port strike
- 80% of the country’s imports and exports are handled by the port of Moin