At the height of the pandemic and economic crisis, the Costa Rican president announced, on a national chain, an economic recovery plan with no clear direction, no assigned leaders and no concrete actions.
In the message broadcast on the night of July 12, President Carlos Alvarado vaguely explained part of the plan to be adopted to overcome the health and economic crisis generated by the spread of covid-19.
In Costa Rica, legislative initiatives are being prepared to restructure the credit portfolios of small and medium agricultural producers affected by climate phenomena.
One of the initiatives includes the purchase of the credit portfolio to readjust the debts of producers affected by climatic phenomena and who are unable to pay. The credits that would be applied in this case would be those of $35,000 or less.
During August and September, Costa Rica's monthly agricultural activity index reported a 0.16% and 0.82% year-on-year increase, respectively, reversing the downward trend recorded in previous months.
According to data from the Central Bank of Costa Rica (BCCR), between October 2018 and July 2019 the Monthly Index of Agricultural Activity (IMAGRO) registered negative year-on-year variations.
One year after the start-up of operations of the maritime terminal in Costa Rica, businessmen recognize that efficiency has improved, but insist that there should be a reduction in tariffs.
Although in Costa Rica the procedures for approving new pesticides that enter the market should take a few weeks, there are processes that have not been processed for more than ten years, which prevents increasing and improving the supply of products.
The State Phytosanitary Service (SFE), which is part of the Ministry of Agriculture and Livestock, accumulates dozens of files that are still pending approval, including some that have been waiting for more than a decade.
Delays in the attention of containers in the terminal in charge of APM Terminals, congestion in the yards, cuts in the electrical flow and the computer system, are some of the complaints of the exporting sector of Costa Rica.
Complaints of delays in the port in Limon and in charge of APM Terminals are not new, because in early April, five weeks after the start of operations of the Moin Container Terminal (TCM), reported delays of at least 25 hours of work, which was due, according to the authorities, to the demarcation work of the road between San Jose and Limon.
Low international prices, overproduction and greater competition from markets such as the Philippines, is worrying Costa Rican pineapple exporters.
On top of those factors is also the fact that exports to China have not grown as much as expected, due to complications faced in getting the product there in perfect condition.According to the exporters themselves, this difficulty"... is taking Costa Rica out of the market, as it takes between 28 and 30 days to arrive and it is estimated that a maximum of 20 days is required to maintain the quality intact."
The OECD has pointed to an overabundance of institutions: 11 institutes, 6 corporations, and 9 sectoral committees including organizations for children, young people and rural women.
Nacion.com explains that "...The OECD criticized the large number of institutions in the public agricultural sector and said that this complicates sectoral decision-making.An organizational chart requested of the Executive Secretariat for the Agricultural Sector Planning (Sepsa), attached to the MAG, shows that there are 11 institutions, six corporations (such as Corbana) and nine sectoral committees, among them the National Council Club 4-S "
The agricultural union is upholding its position against entering the block and has unlinked itself from the group consisting of other business chambers which is lobbying for accession.
Sectors related to metal mechanics, tires, plastics, chemicals and electrics in Costa Rica have asked for their products to be excluded in the negotiation of a regional trade agreement with the Asian tiger.
The industrial and agricultural sectors are those who have objected in the process for negotiation of a free trade agreement with South Korea, arguing that some products would be hurt by the arrival of similar products from China.
Traders, industrialists and entrepreneurs in the agro sector disagree with the position of the main private sector union over the negotiation of new taxes.
Three business unions have ratified their opposition to new taxes in Costa Rica and have made known their total lack of empathy with the way the Uccaep, an organization that unites most of the unions in the private sector, has dealt with the Solis administration over tax issues, the negotiation of a shareholder register proposed by the government and other aspects related to the fiscal problems affecting the country.
While in Nicaragua and El Salvador the minimum monthly cost of farm labor is just over $100, in Guatemala it is $345 and in Costa Rica it is over $460.
In a region where agricultural production is relatively the same in most countries, production costs are very different, resulting in very different levels of productivity that ultimately benefit some more than others.
A bill prepared by the Central Bank would require all financial entities to request authorization from the institution before obtaining dollar loans from abroad.
With this measure and others such as modifying the legal reserve requirement in foreign currency, which currently stands at 15%, the Central Bank of Costa Rica aims to stop the growth that has been seen in loan portfolios in US currency. In 2015 alone dollarloans grew by 14%, although measures have been taken in relation to funding requests from companies and individuals that do not generate revenue in that currency.
The sector that used to be the basis for the country´s economic and social development in the last century is now suffering from a severe crisis of profitability.
The President of the National Chamber of Agriculture and Agribusiness of Costa Rica, Juan Rafael Lizano, summarised the figures that account for the decline in the sector, noting factors such as greater fuel costs, the high cost of labor, and difficulties in access to credit.
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