By signing the Association Agreement with the European country, Central America achieved an export quota of 56 thousand metric tons of sugar free of tariffs.
Days ago it was reported that the association agreement signed guarantees Central American countries that with the departure of the United Kingdom from the European Union, there will not be a legal vacuum that interrupts trade relations with that country, while maintaining tariff preferences and legal guarantees for companies exporting to the United Kingdom.
Both countries agreed to increase from 60,000 to 125,000 tons the export quota of Guatemalan sugar that enters the Asian nation free of tariffs.
In the framework of the Second Meeting of the Administrative Commission of the Free Trade Agreement between Guatemala and the Republic of Taiwan, held in Taipei, Taiwan on July 8 and 9, both parties agreed to eliminate tariffs for the entry of certain products, informed the Ministry of Economy of Guatemala.
In October 2017 production limits and the "out of -quota" production concept will eliminate for the manufacture of biofuel and industrial non-food products.
The current production quota for sugar according to the European Common Agricultural Policy (CAP), which applies to the 28 countries in the bloc, is 13.5 million tons per year.The production capacity of sugar producers in the European bloc is higher than the quota, therefore eliminating production limits will lead to a lowering of prices due to excess supply, similar to what has already happened in the milk market following the elimination of production quotas.
Entrepreneurs in the sector have asked for the opening up of a new export quota of 36 thousand tons per year, in addition to the quota of 15,500 tonnes established in the CAFTA-DR.
To minimize the effect felt by that the entry of meat from Brazil to the US under the quota for "Other countries", within which Nicaragua currently exports, entrepreneurs in the meat sector have asked the US government for the ability to increase sales through an additional quota, of a total of 36 thousand tons a year.
Concerns have arisen over a recent agreement signed between the US and Brazil, in which the South American country is allocated a significant quota from the same segment that Nicaragua supplies.
The new quota for imports of fresh beef from Brazil is considered to be in the same category as the quota that corresponds to Nicaragua, called "Other countries".Nicaraguan exporters fear that the quota, amounting to 65 thousand tons per year, will be filled by Brazil leaving no space for sales of meat from Nicaragua and other countries also included in this segment.
The private sector proposes to negotiate with the government of Taiwan an increase in the export quotas for products such as peanuts and sugar.
Exporting companies will be proposing to the government of Daniel Ortega that the visit by the President of Taiwan, Ma Ying-jeou be used to request an increase in export quotas for agricultural products. In 2014 total exports to the Asian island amounted to $65.8 million.
After the withdrawal of the reservation lodged by El Salvador against China with the World Trade Organization, China has lowered tariffs and opened an import quota for sugar from the Central American country.
China currently consumes about 12 million tons of sugar, representing 15% of total sugar that moves around the world. With the reduction in tariffs, the Salvadoran sugar industry will be able to direct its gaze to this market.
While the textile sector accounts for over 90% of total exports to the USA under the FTA, lack of training and compliance with requirements is preventing other sectors from taking better advantage of the trade agreement.
Lack of training, compliance requirements and inability to make the necessary investment to produce on a large-scale are some of the challenges faced by the sectors who are failing to take advantage of the trade agreement with the United States faces.
Five food exporters are taking advantage of export quotas given by the World Trade Organization to sell their products in Russia.
La Cooperativa de Leche Dos Pinos and Ganaderos Industriales de Costa Rica are two companies who already have sanitation permits to start exporting to Russia and three others are completing the paperwork with the National Animal Health Service (SENASA).
Producers are negotiating the conditions of the free trade agreement with Taiwan in order to double the volume of sugar exported to the island to re-export to other Asian markets.
The Chamber of Industries of Nicaragua reported that representatives are exploring options with the Taiwanese government in order to increase sugar exports from 30,000 to 60,000 tonnes.
A statutory amendment will allow Brazil to use a World Trade Organization quota to export beef to the United States.
Nicaraguan producers and exporters have raised concerns about the possible impact of changes in trade policies which are being discussed by the U.S. Congress, which directly affect the export of peanuts, tobacco and meat, the latter product due to possible entry of beef from Brazil.
The Salvadoran sugar sector has exported the first 16,000 tonnes of a quota of 25,087 tonnes which corresponds to the country for 2014.
From a press release by the Ministry of Economy (MINEC):
El Salvador has exported 16 thousand tons of bulk sugar thanks to the Association Agreement between Central America and the European Union
The Ministry of Economy and the Sugar Association of El Salvador too part this May 13, in the dispatch in the Port of Acajutla, of the first ship carrying 16,000 metric tons of raw sugar as part of the El Salvador's quota for 2014 with the European Union. This delivery is part of the Association Agreement between Central America and the European Union (ADA), which came into force on 1 October for Costa Rica and El Salvador.
Gildan Activewear has confirmed an investment in a new manufacturing plant in the north of the country in order to take advantage of Costa Rican quotas for textile entering the U.S. market.
In the second quarter report to shareholders 2014, Gildan Activewear confirmed today in Montreal that it will make its next investment in Guanacaste, Costa Rica, installing a modern textile manufacturing plant.
The Constitutional Court has temporarily suspended Article 19 of Governmental Decree 441-2013, which contains Regulations for the Administration of Tariff Quotas for Rice.
This regulation was established in the FTA between Central America, the Dominican Republic and the United States.
According to Martín Guzmán, general secretary of the CC, "the unconstitutionality [claim] was filed by the Chamber of Industry of Guatemala (CIG), last week and the highest court in the city received it yesterday. The agreement in question was published in Diario Oficial on 21 November, and from this the rice quotas are regulated," reported Prensalibre.com.
The 6,330 tons are part of the quota of 8,110 for 2013 negotiated under the framework of the Association Agreement with the European Union.
"Costa Rica is entitled to a quota of 19,464 tonnes, but for 2013 it is 8,110 tons, because the CAAA did not come into effect until October 1st," said Edgar Herrera, executive director of the Agro-Industrial Sugarcane League (Laica) .
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