Because yellow corn is imported from the United States at a price of $11 per quintal in Nicaragua and the cost of producing a quintal of sorghum locally is $12.5, competition for local producers is nearly impossible.
Nicaragua is part of the Dominican Republic-Central America-United States Free Trade Agreement, an agreement that allows yellow corn from the United States to enter the local market free of tariffs.
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%.
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.
As of January 2020, electric vehiclesimported into El Salvador and Honduras will be exempt from the import duty, which was 30% in El Salvador until now.
In Nicaragua, the tax exemption that benefited the import of products such as canned sardines, prepared soups, toilet soap, rubber gloves, among others, was eliminated.
With this change, the products concerned will be applied the Import Tariff Rate (DAI), which is a tax contained in the Central American Import Tariff and is applied to products from countries outside the Central American region, on the value of them, the taxes have variable rates that can range between 5% and 15%.
Until 31 December 2019, yellow corn may be imported duty-free, and from 1 January 2020, a tariff rate of 40% will apply.
For the decision, the government argued in the decree published in the Gaceta that "... the production of meat, milk and eggs is produced, for the most part, from corn-based feed, which represents a little more than 65% of the total cost of meat production, especially in the production of chickens and pigs.
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.
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%.
The Varela administration has applied a special agricultural safeguard to some porcine products imported from the United States, among which are hams, legs, shoulders and their pieces.
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 new excise tariff that will apply from January 1st, 2018 contemplates a reduction of import tariffs on fruits such as plums, oranges and peaches from Chile.
The new importtariffs published by the Ministry of Economy will be effective as of January 1, 2018.
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