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.
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.
As of January 2020, electric vehicles imported into El Salvador and Honduras will be exempt from the import duty, which was 30% in El Salvador until now.
The measure, which will be applied in both countries, was approved at the session of the Council of Ministers of Economic Integration (COMIECO), held in El Salvador on December 5 and 6.
Because citrus cultivation has been declared a national emergency in the country, the government authorized the import of 1.860 solid tons of orange juice.
The Secretariat of Economic Development has authorized the entry of orange juice to the country without tariff. According to the authorities, this action is expected to ensure the supply of the product in the local market.
Since November 1st, the Honduran government decided to reduce from 35% to 25% the import tariffs for steel sheets and other related products.
According to businessmen in the sector, the action taken by the authorities seeks to ensure the supply of steel sheets and other similar products at national level, as well as ensuring product price stability.
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.
A report by Moody's analyzes the impact expected in El Salvador and in the other countries of the region, from the entry into force of the free trade agreement with the Asian nation.
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.
Not fearing free trade, lowering tariffs and facilitating business development are some of the ingredients the Chilean export model that Central America could follow.
In an interview with Elfinancierocr.com, ProChile's director, Roberto Paiva, explained that one of the main reasons behind the success of his country's foreign trade model is the high degree of trade liberalization.Not only for having reduced tariffs, but also for"... 'having negotiated trade agreements. We have agreements with Europe and much of Asia. We don't yet have Africa.This opening not only lowers tariffs but brings us closer to the market and the business'. "
Sanitary and phytosanitary measures, technical barriers to trade, rules of origin and competition rules were defined and progress was made on issues of tariff reduction.
From a statement issued by the Ministry of Economy in Guatemala:
The teams negotiating the FTA between Central America and South Korea ended the V round of negotiations with conclusions to four chapters of the treaty and progress made on two other issues.
Central American coffee will incur 0% tariff in 10 years, while bananas, vegetables and baby vegetables will be shielded from the entry into force of the agreement.
In the fifth round of negotiations which will be held in Seoul from August 8 to 12 it is expected that progress will be made on the definitions for the treatment of 9% of the universe of products that have not yet been analyzed.
Asparagus, mandarin oranges, artichokes, grapes, pineapples, mangoes, avocado, quinoa, coffee, Giant Cusco corn, purple corn and limes, will enter Honduras duty-free with immediate effect or within a maximum period of 5 years.
The governments now have to define the date of entry into force of the agreement.In 2015 the South American country exported goods to Honduras worth $40 million.
In light of the recent problems in the dairy trade between Nicaragua and Costa Rica, the Central American exporters union advocates eliminating barriers and facilitating trade.
Elsalvador.com reports that "...Taxes on perfumes in customs offices in Honduras, problems with entry of frozen goods into Costa Rica, meat and dairy going from Nicaragua into Honduras, beef and chicken from Panama to Costa Rica and impediments to the free marketing of milk and dairy products between Costa Rica and Nicaragua are some of the problems that are hampering business growth in the region. "
Tariff preferences were negotiated in non-traditional products in sectors related to metalworking, appliances, construction, wood, plastics and agribusiness.
From a statement issued by the Ministry of Foreign Trade in Ecuador:
The deputy minister of Foreign Trade, Alejandro Dávalos, opened the Second Round of Trade Negotiations with Honduras for the signing of a Partial Agreement of Economic Complementation.
From 2016 grain importers will go from paying the current 40% import tariff to 36% in 2016 and it will continue to decline until it reaches 0% in 2023.
The rice producing sector in El Salvador is trying to prepare for the start of the process of tariff elimination on imports of the grain, which already next year will be reduced by 4% from the current rate.