For the Central American Rice Federation, the bankruptcy of more than 62 thousand rice farmers in Central America and the Dominican Republic is imminent, due to the abolition of import tariffs, a measure that is part of the implementation of the DR-CAFTA Free Trade Agreement.
Representatives of the sector consider that if the commercial liberalization of rice cultivation continues, there will be an increase in unemployment and poverty in their agricultural areas, since more than 265,000 people depend directly on this crop and approximately 990,000 people indirectly, and foresee serious social, economic and political implications due to the effects of the Treaty.
Once Cauca IV comes into force, Costa Rican consumers will be exempted from paying duties on Internet purchases made abroad by Costa Rican consumers that do not exceed $500.
The fourth version of the Central American Uniform Customs Code (Cauca IV) will take effect as of May 1 and according to Costa Rican authorities, the exoneration of duties will only apply to family shipments.
Based on the willingness of Costa Rican authorities to raise the tariff on imported sugar from 45% to 73%, Brazil decided to raise the entry taxes on four animal products from Costa Rica.
Months ago, the private sector has been warning of the possibility that the country's trading partners would apply reciprocal measures because of Costa Rica's unilateral decision to raise entry taxes on importedsugar.
Following in Brazil's footsteps, Canada warned the WTO about the possibility of imposing compensation against the Costa Rican authorities' policy of raising the tariff on imported sugar from 45% to 73%.
In Costa Rica, the Chamber of Commerce opposes the agreement signed between the rice sector and the government, which maintains the fixing of the price and the 35% tariff on grain imports.
The decision was made on August 23rd in the framework of the meeting in which the National Production Council (CNP), the National Rice Corporation (CONARROZ) and the Ministries of Economy, Industry and Commerce (MEIC) and Agriculture and Livestock (MAG) participated.
Following an appeal filed by the importing company La Maquila Lama with the Costa Rican authorities, the government decided to reduce the additional tax on sugar purchased abroad from 34.27% to 27.68%.
With the reduction decreed by the Ministry of Economy, Industry and Commerce (MEIC), a decision that was published on August 18 in The Gazette, the total tax applied to imported sugar will be 72.68% (45% original plus 27.68% of the safeguard), which is slightly less than the 79.27% (45% original plus 34.27%), which was in force until before the enacted amendment.
Arguing that the unusual growth in sugar imports is harming local production, the Alvarado administration decided to raise the tariff on products entering Costa Rica from 45% to 73% for a three-year period.
The Ministry of Economy, Industry and Commerce (MEIC) concluded the investigation requested by the Agricultural Industrial League of Sugar Cane (LAICA) and 4 mills, on the safeguard measure against imports of solid state, granulated sugar, known as white sugar, used for domestic and industrial consumption, justifying a deterioration in the main economic indicators of the National Production Branch (RPN), details an official statement dated June 15.
In Costa Rica, sugar producers are asking the government to raise tariffs or entry taxes on imports, and importers are opposing, as this would raise the final price to the consumer.
In July 2019, the Sugar Cane Industrial Agricultural League (LAICA) asked the Ministry of Economy, Industry and Commerce (MEIC) to launch an investigation with the aim of imposing additional tariffs on imported sugar, arguing that purchases from abroad would damage local production.
As part of the FTA signed between the two countries, since January 1, 2020 beef and pork from the U.S. do not pay tariffs or taxes on entry into Costa Rica.
According to the Free Trade Agreement signed, the relief of beef and pork will be valid for 15 years, while the so-called black parts of the chicken, such as thighs and others, will be released until January 1, 2022, in this case for the term of 17 years.
In Costa Rica, the government has decided to establish an additional tariff of 11.67% on imports of brown rice, for purchases exceeding 6,367 tons.
With this new protectionist measure taken by the government, which will apply from September 21 to December 31 of this year, the current tariff will increase from 35% to 46.67%.
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 signing of the trade agreement is scheduled for late February, a measure that bodes well for improving access to Korean high-tech products and increasing agro-exports from Central America.
Starting from April the South American country will start implementing a timetable for elimination of the safeguard for balance of payments, reducing the current tariff levels from 15% to 10% and from 35% to 23.3%.
From a statement issued by the Ministry of Foreign Trade in Ecuador:
From April 2017 the schedule for dismantling of the safeguard measure will be implemented for balance of payments, reducing the current tariff levels from 15% to 10.0% and from 35% to 23.3%.In this regard, the reduction will apply to established customs declarations submitted from April 1, 2017.
Dairy products and some metalworking products, plastics, tires and wood were excluded from the trade agreement between Central America and China.
Bananas will not incur tariffs when entering South Korea for five years, pineapples for a period of seven years and pork for ten years.In addition to the terms of tariff reduction, the countries in the region unilaterally negotiated the exclusion of some goods produced locally.Guatemala announced that it will continue negotiations unilaterally.
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