The requirements for sanitation and traceability are preventing the livestock sector from taking advantage of quotas for meat exports duty free to Europe.
Although the Association Agreement between Central America and the European Union established a quota of 4,800 tonnes per year of rice and a quota of 1,533 tonnes per year of meat, which could enter Europe without incurring tariffs, neither sector has been able to take advantage of them completely.
Sales by Costa Rica to the EU have diversified because of the entry into force of the AACUE, but the value of exports has decreased and the trade balance is less favorable.
It is not only exports under the Association Agreement that have declined, going from $2,034 million in 2013 to $1,786 million in 2015, but the balance of trade surplus has also been decreasing as well.The surplus fell from $705 million in 2013 to $342 million in 2015, according to figures from PROCOMER.
An agreement has been announced to create a system of refunds of the Import Duty Tariff, which is already working to ensure that the procedures in each border post are performed in a single office.
El Salvador has internally made progress on the process of customs integration with Honduras, which aims to establish a single post at the border crossing.
The quotas for duty free export of beef, rice and tuna negotiated in the Agreement with the European Union are not being exploited to the fullest extent by local producers.
Lack of certification by the meat processing plants for export, the crisis in the agricultural sector and the absence of incentives to produce exportable foods are some of the factors which, in the opinion of producers, are preventing the country from taking advantage of the tariff benefits granted to country under the Economic Association Agreement (AA).
The European Authority for Food Safety is reviewing in detail allergenic products and substances whose presence in food must be indicated on the label, according to European law.
From a press release by the Costa Rican Foreign Trade Promotion Office (PROCOMER):
The European Food Safety Authority (EFSA) has updated its scientific advice on food allergens. The scientific ruling of the Authority is reviewing in detail allergenic products and substances whose presence in food must be indicated on the label, according to European law. This includes cereals containing gluten, milk, eggs, nuts, peanuts, soy, fish, crustaceans, molluscs, celery, lupine, sesame, mustard and sulphites.
The Council of Ministers of Economic Integration of Central America has until November to ratify the tax refund mechanisms governing the import of European goods.
The entire Central American region must have the same system of tax refunds on Import Customs Duties (DAI) from August 1, 2015, as established by the Association Agreement (AA) between Central America and the European Union (EU).
The only country in the region that does not have policies on competition needs to legislate before November 2016 in order to trade with the European Union using the Association Agreement.
Year after year the Guatemalan private sector insists on the need for a competition law to help promote foreign investment and to establish a regulatory framework to prevent market barriers and benefit consumers.
At the first meeting of the Council of the European Partnership Agreement - Central America raised the eventual accession of Croatia and topics related to denomination of origin.
From a press release issued by the Ministry of Economy and Commerce in El Salvador:
On June 27, in San Pedro Sula, Honduras, held the first meeting of the Association Council, the highest institutional body of the Association Agreement between Central America and the European Union, to oversee the fulfilment of the objectives of the Agreement and its application. This meeting was held between Ministers and senior officials, under the trade part of the Agreement.
The trade association agreement between Central America and Europe means a reduction in import tariffs on alcoholic beverages.
With the entry into force of the Agreement between Europe and Central America (CAAA) comes a reduction in import costs, which in the case of champagne is a cut of 15%.
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