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.
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.
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%.
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 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.
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.
As of March 15, the FTA between Taiwan and El Salvador will be null and void, a situation that will prevent the Central American country from selling 80,000 tons of sugar at favorable prices.
The Salvadoran government concluded the trade agreement with the Asian country in December last year, a decision that was not consulted with the country's productive sector and will affect sugar exports, as it will no longer have preferential treatment.
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.
For Nicaraguan stockbreeders, the imposition of a 30% tariff on beef imports from Panama violates the conditions established in the trade agreement between the two countries.
In Panama, representatives of the Nicaraguan Chamber of Beef Export Plants (Canicarne), reported that the imposition of tariffs and other non-tariff measures for Nicaraguan meat have stockbreeders and industrialists concerned.
To correct alleged price distortions in the local market, the Panamanian government plans to regulate imports of beef from Nicaragua.
The Ministry of Agricultural Development (MIDA)'s plan is to establish new import rules, which will aim to correct the "distortion in the price of beef paid for the local product."
Authorization has been given for 2018 to importy duty free a maximum of 5 thousand MT of black beans, 150 thousand MT of yellow corn, 50 thousand MT of white corn and 26 thousand MT of paddy rice.
The approved quotas were: Black beans, a maximum of 5 thousand metric tons -MT-, equivalent to 110 thousand hundredweight; yellow corn, 150 thousand -MT-, equivalent to 3.3 million hundredweight; white corn, 50 thousand -MT-, 110 thousand hundredweight and unhusked rice, 26 thousand MT, 572 thousand hundredweight.
The USA has agreed to reduce to 0% the tariff on chicken leg quarters imported from the US market for the Central American countries under DR-CAFTA.
The request to remove the tariff was made by Guatemala weeks ago. Chicken legs, both frozen and refrigerated, will enter the Central American market with 0% tariff when all the signatory countries of CAFTA-DR have completed the application process with the Department of Commerce.
Approval has been given to exemption of import tax for a first contingent of egg cartons.
With this duty free import a solution is underway to the problem of local shortages caused by a fire in the only factory producing such packaging in the country.Panamaamerica.com.pa reports that "...Moldeados Panameños, S.A.
In the next few days the government plans to publish a decree declaring a shortage and authorizing the import of duty-free grain.
Due to a decline in local production, there will not be enough stocks to meet demand from January 2017, therefore the import of about 70,000 tons, free from the 33.10%tariff, has been authorized.
The chairman of the Board of the National Rice Corporation (Conarroz), Eliécer Araya, told Nacion.com that "... The need to import is now stronger because of a smaller domestic crop. About three years ago the proportion of consumption of national productionwas 60% and this has now gone down to 50%. "
In Costa Rica a new bill under analysis aims to make imports of hybrid and electric vehicles exempt from sales, selective consumption and customs duties taxes.
Among the incentives proposed in the bill under discussion in the Assembly, is a 100% exemption from sales tax and 100% from the selective consumption tax on imports of motor vehicles, public transport vehicles, cargo transport vehicles and rechargeable hybrid and electric motorcycles imported into the country.