Because of the economic crisis, Foreign Direct Investment flows have practically vanished, and in order to attract the few investments that are projected for next year, countries are expected to compete by offering incentives and aid programs for businesses.
The covid-19 outbreak dissipated the investment intentions of companies globally.
Although in the cosmetic surgery business the Costa Rican market maintains its attractiveness for foreign clients, in other countries procedures of similar quality are offered, but at lower prices.
Some of the main competitors include Mexico, India, Colombia, El Salvador, Guatemala, Panama and the Dominican Republic, but Costa Rica's main difficulty in competing with these markets is its high operating cost.
Because the Constitutional Chamber in Costa Rica admitted an action challenging the articles regulating mergers and acquisitions, the file approval processes have been temporarily suspended.
Authorities informed that since last March 19, the Commission to Promote Competition (Coprocom) refrains from approving or failing processes of companies that seek to acquire others or merge in the country.
Between 2017 and 2018, milk sales from Costa Rica to Panama fell 24%, explained by increased competition, while exports to Guatemala and the Dominican Republic increased 21% and 13%, respectively.
According to figures from the Promotora del Comercio Exterior (Procomer), between 2017 and 2018 sales to Panama of milk and cream not concentrated and concentrated registered a 24% decline, falling from $7.5 million to $5.6 million. The main reason behind this behavior seems to be an increase in international competition in the Panamanian market.
Authorities in Costa Rica confirmed their judgment against Walmart's request to buy the supermarket chain Gessa, ending the case through administrative channels.
At the beginning of December 2018, the Commission for the Promotion of Competition (Coprocom) denied Walmart the request to purchase the Gessa group. Days later, the two companies involved in the transaction filed two appeals to overturn the decision.
In response to the brake placed by the Commission for the Promotion of Competition on the purchase of Gessa by Walmart, in Costa Rica both companies presented two independent appeals that seek to revoke the blockade of the transaction.
Last week, the Commission for the Promotion of Competition (Coprocom) denied Walmart the purchase request of the supermarket group Gessa, and just days later, on December 10th, the two companies participating in the transaction filed two appeals to overturn the judgment.
Arguing that dumping practices exist by China and are not competing on an equal basis, businessmen from the sector in Guatemala request the intervention of the authorities.
Through a statement from the Chamber of Industry of Guatemala (CIG), explained that in recent years, China, through its improper business practices including dumping and subsidized prices, has affected local production.
Arguing that in Guatemala, milk from other countries in the region is being traded at a lower price than that sold in the countries of origin, producers in the country announce that they will submit a complaint.
The Representatives of the Chamber of Milk Producers of Guatemala announced that the complaint they are preparing will be filed with the Ministry of Economy, through the Directorate of Foreign Trade Administration (DACE).
In Costa Rica the regulatory body has agreed to the commitment made by Essilor Internacional not to distort the market by blocking raw materials or price discrimination, as a condition for the purchase of Grupo Vision.
From a statement issued by the Commission to Promote Competition (COPROCOM):
A total of 18 tuna brands are competing in a market that seven years ago was totally dominated by Sardimar.
One example of the growth that has been seen in brands in this market is Grupo Calvo, who has had a steady increase in sales; 11% in 2010, 71% in 2011, 32% in 2012 and a projected 19% for 2013 .
After two years of full competition in Costa Rica, insurers are keeping in place aggressive pricing tactics and incentives in the battle for customers.
In an interview conducted by Sergio Morales for Elfinancierocr.com, William Constenla, president of the National Insurance Institute (INS by its initials in Spanish), explained that the company has been forced to confront the price war by offering more services or range of products, offering, for example, zero deductible car insurance, which means that the insured party does not have to pay anything in case of an accident.
The state-run Compañía Nacional de Fuerza y Luz may lose customers who are large consumers to the increased competitiveness of local generating cooperatives.
This is happening in the canton of Belen, where the Empresa de Servicios Públicos de Heredia (ESPH) and Compañía Nacional de Fuerza y Luz (CNFL) are fighting for a megaconsumer which plans to settle in the town and will demand a supply of 7 MW. The company it chooses will earn approximately $400 thousand a month.
The Association Agreement with the EU will involve the creation of a regional body for the implementation of regional competition policies.
From the newsletter of the Costa Rica’s Commission to Promote Competition (COPROCOM):
The single market is one of the greatest achievements of the European Union. They have gradually been eliminating restrictions on trade and competition between Member States, which has resulted in an increase in living standards. This same challenge now faces the Central American region, and the authorities responsible for regulation will play a crucial role in ensuring success.
The Law on Promotion of Competition and Effective Consumer Protection recently approved typifies monopolistic practices and changes the rules on economic groups.
Two of the most important changes are expanding the scope of the law, which now includes public service employees in cases of concessions and the introduction of a new absolute monopolistic practice: the agreement between competitors to 'refuse to buy or sell goods or services'.
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