Following Costa Rica's decision to impose requirements on the entry of avocados grown in Honduras, Costa Rican businessmen believe that these unilateral measures could generate trade retaliation for the country.
Arguing that molecular biology tests detected the presence of the Avocado Sunblotch viroid in shipments from Honduras, the Costa Rican State Phytosanitary Service (SFE) decided to start taking samples to analyze Honduran avocados.
Due to the possible change in the regulations established by the European Union on the use of agrochemicals in the production of the fruit that enters their territory, exporters in the region are on the alert for the possible complications that this would generate in the commercialization.
In order to protect the health of consumers, European authorities could vary the maximum residue limits (MRL's) that food entering the region may contain.
The barriers imposed by the Honduran and Panamanian markets, coupled with the negative effect of the recent tax reform, force Nicaraguan cattle ranchers to predict a bleak future.
Figures from the National Livestock Commission of Nicaragua (Conagan) specify that between 2017 and 2018 meat exports from Nicaragua fell by 7.9%, from $587 million to $541 million, and in the case of dairy, the fall was 8.4%, going down from $177 million to $162 million.
For Nicaraguan stockbreeders, the imposition of a 30% tariff on beef imports from Panama violates the conditions established in the trade agreement between the two countries.
In Panama, representatives of the Nicaraguan Chamber of Beef Export Plants (Canicarne), reported that the imposition of tariffs and other non-tariff measures for Nicaraguan meat have stockbreeders and industrialists concerned.
As a result of barriers imposed by El Salvador on dairy products from Nicaragua and the crisis in the country, in the first half of the year sales reports showed a year-on-year fall of 9%.
According to statistics from the Central Bank of Nicaragua (BCN) in the first six months of the year cheese exports totaled $54 million, 9% less than the $60 million recorded in the same period in 2017.
Starting from June 30, 2018 products such as stomach, intestines and bladders from Nicaragua may enter the Asian country duty free.
From a statement issued by the Embassy of Taiwan in Nicaragua:
Managua, Wednesday, June 27, 2018.Under the provisions of the Second Free Trade Meeting of the current FTA between Taiwan and Nicaragua, as of June 30, 2018, Decision No. 6 will enter into force, which establishes that Taiwan can import the following bovine products tariff-free: stomach, intestines and bladders, from Nicaragua.
If Costa Rican businessmen still had doubts about the direction to be taken by the new Alvarado administration in agricultural matters, the affirmations made by the newly-appointed minister of Agriculture and Livestock have managed to dissipate them completely.
EDITORIAL
"...'The position that I bring to the ministry is to protect national production, with all the legal and technical instruments provided to us by treaty frameworks ...We are going to be very jealous with entries, no matter what they are, with meats, with potatoes.There has been a lot of laxity, non compliance with the regulations," said Renato Alvarado, the ministry's new leader, to Nacion.com.
A local problem between Honduran farmers and pasteurizing plants due to the price at which they purchase milk could be the reason behind the block on Nicaraguan dairy products.
Trinchera.com.ni reports that according to the National Federation of Ranchers and Farmers of Honduras (FENAGH), closing the border to milk and dairy products from Nicaragua will continue until there is a resolution to the problem between pasteurizing plants and dairy farmers, who have denounced the low prices paid for the product in plants.
Complaints are being made over the sampling process used to verify product quality which is causing delays, forcing goods to be kept at the border for up to 15 days.
The union of the dairy sector in Nicaragua says that the waiting time for the results of the quality test is not supposed to be more than 8 days, but when samples are sent which were taken from El Amatillo to San Salvador, the process is much longer.
In light of the recent problems in the dairy trade between Nicaragua and Costa Rica, the Central American exporters union advocates eliminating barriers and facilitating trade.
Elsalvador.com reports that "...Taxes on perfumes in customs offices in Honduras, problems with entry of frozen goods into Costa Rica, meat and dairy going from Nicaragua into Honduras, beef and chicken from Panama to Costa Rica and impediments to the free marketing of milk and dairy products between Costa Rica and Nicaragua are some of the problems that are hampering business growth in the region. "
Nicaraguan health authorities have restricted access to products elaborated by the Costa Rican company Dos Pinos and two other companies for failing to obtain health certification for their processing plants.
In a circular apparently issued by the company Dos Pinos, the entity may have indicated to its customers that due to non-renewal of health certificates for the industrializing plant they may not be able to continue expending their products until the situation has been resolved.This is the version stated by Laprensa.com.ni, who also explained that the Country manager at Dos Pinos in Nicaragua, Oswaldo Gonzalez Quijano said in the document"... The measure taken by the Government of Nicaragua 'has no technical basis'."
Arguing the imposition of non-tariff barriers, Centrolac has filed with the Central American Court of Justice a claim against Honduras because it prevented Nicaraguan milk from entering the country.
Although the Honduran government insists that restricting the entry of milk from Nicaragua is strictly in adherence to sanitary measures, Nicaraguan producers and exporters maintain their position and are demanding that the government take retaliatory measures against Honduras. Therefore, the company Centrolac presented on May 10 a lawsuit with the Central American Court of Justice, denouncing the closure of borders and accusing the country "... of contravening Community law".
The dairy sector in Nicaragua has denounced the imposition of non-tariff barriers by Honduras, whose health authorities have delayed the renewal of certificates for nicaraguan plants.
It has been estimated that 750,000 liters of milk per month have ceased to be exported to Honduras since November 2015, because the National Agricultural Health Service has not renewed certification of dairy plants in Nicaragua.
Lala Group intends to take advantage of the free transit of goods in Central America to produce and export milk from Nicaragua to the entire region.
The Mexican company Lala confirmed the positive performance of Nicaragua's economy, announcing its intention to turn the country into a production hub and to export dairy products to the rest of Central America.