The South American country has extended the tariff of 35% and 40% on imports of footwear and textiles, respectively, for two more years, further complicating the outlook for companies in the Colon Free Zone.
Up until November 2019, the Colombian government will continue to apply the 35% tariff for footwear and 40% for textiles that enter the country at a value equal to or lower than a predetermined threshold.
The government announced that it will carry out a review of the goods produced locally and those imported, in order to evaluate the option of raising tariffs to "protect domestic production."
The government's proposal is to analyze what goods are produced in the country and which are imported in order to raise taxes on the entry of goods which are in direct competition with local production.Tharsis Lopez said"...'I asked for a study of those products manufactured here, either in free zones or outside of them, to see the levels of tariffs or taxes that have to be introduced on those products. Why?To increase these tariffs'. "
On January 1, 2017 the new nomenclature comes into force, which extends codes used in the Tariff System to 10 digits.
From a statement issued by the Salvadoran Association of Industrialists (ASI):
The Salvadoran Association of Industrialists (ASI) held on this day a conference with the aim of informing its members about the implementation of the Sixth Amendment to the nomenclature in the System for Tariff Description and Coding (SAC) and the enlargement to ten digits of the codes for goods that are exported and imported.
Despite opposition from the construction sector, the Ministry of Economic Development increased tariffs on imports of Chinese iron rods from 15% to 35%.
Authorities at the Ministry of Economic Development (SDE) argue that this temporary measure, seeks to protect the companies Aceros Alfa and Aceros Centro Caribe, which produce the rods. Domestic production of iron rod covers approximately 70% of demand and the rest is imported from China.
Tires, ceramics, auto parts and raw materials are part of the list of 2,800 products which will incur higher fees in order to enter the Ecuadorian market from March 11.
From a statement issued by the Ministry of Foreign Trade in Ecuador:
The external landscape has changed expectations regarding our balance of payments and we are facing a new scenario which affects the commercial arena which is low oil prices, the appreciation of the US dollar, so it is necessary to take measures to regulate the general level of imports and balance our trade balance.
Guatemalan businesses are complaining about the existence significant differences in import and export tariffs in each country and are demandig that they be leveled in order for them to compete on equal terms.
Companies argue that products from India coming into the country pay fees of 15%, and in some cases do not pay anything while to enter India, Guatemalan products incur tariffs of up to 70%, depending on the product.
Analysis of the impact of the Trans-Pacific Partnership on the region.
The competition which sectors such as textiles could face is one of the elements raising questions among employers in the region, compared to the real benefits that could be accrued if Central America participates in the Strategic Economic Trans Pacific Partnership (TPP).
The presence of direct competitors, such as countries like Vietnam, in the textile sector, and the possibility of losing dominance in the American market due to trade rules that TPP countries must meet, is unsettling the productive sectors in the region and forcing a reckoning of the pros and cons of a possible entry to the block to be undertaken.
The trade agreement excludes oil, some dairy and meat products, waffles, beer, gum, certain plastics, paper, cardboard and the metalworking sectors.
The agreement, which will come into effect when it gains legislative approval in Colombia, provides free instant access to Costa Rica for cocoa beans, refined salt, medicines, raw materials for the plastics industry, paper and textiles and plywood doors.
The retail sector is looking favorably on accession to the bloc, but the agricultural and food industries are opposed to it.
The lack of information about how membership has been negotiated and sensitivities presented by some sectors and products in comparison to their peers in the Pacific Alliance are part of the arguments used by agriculture and industry to oppose, at least under the current conditions, the incorporation of Costa Rica into the Alliance.
Argentina, Brazil, Paraguay and Uruguay will apply the maximum tariffs on imports from outside Mercosur due to the crisis.
A statement from PROCOMER reads:
Brazil will apply the maximum fee allowed by the World Trade Organization (WTO) to a list of one hundred products imported from outside MERCOSUR, this is measure is being implemented in order to protect their industry from the international crisis according to a decree issued on May 28 and, based on a MERCOSUR resolution of December 2011 which allows four members (Argentina, Brazil, Paraguay and Uruguay) to raise common external tariff for 24 months, the decision has been adopted as a way to mitigate trade imbalances resulting from international economics, leaving each country to decide to create their own list of tariffs to be increased.