Nicaraguan businessmen propose evaluating the possibility of negotiating a commercial agreement with the North American country, to which coffee, peanuts, sugar, beans, tobacco products and beverages are currently exported.
The good results obtained after a visit made by Canadian businessmen a few days ago has awoken interest in the local private sector to deepen relations with the North American country, through improvements in tariff and commercial conditions.
Favored by an improvement in the international price, between January and April peanut sales abroad generated $44 million, almost 50% more than in the same period in 2016.
In addition to an increase in the international price of peanuts, the value exported also grew thanks to an increase in volume, which amounted to almost 36 million kilograms in the period in question. The average price was $1.2 per kilo, while in the first quarter of 2016 it was $1 per kilo.
Prawns, cheese, honey, vegetables, peanut oil, peanuts, raw sugar and fruits are some of the products that people want to have duty free status under the FTA.
In the framework of bilateral negotiations for free trade between the two countries, Nicaraguan businessmen pointed out that there are several products that are in the list for staged tax relief, such as shrimp, cheese, honey, vegetables, peanut oil, peanuts, sugar raw and fruits, but they are looking for a"better tariff treatment"for others that are pending negotiations.
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.
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.
In Nicaragua peanuts, sugar cane and tobacco have been held up as examples of how productivity can be increased in agriculture.
In 2006 one hectare of sugar cane in Nicaragua produced 66 tons, and five years later, in 2011, it produced 89 tons. Improvements in the use of technology and the search for the most suitable varieties of canes are part of the strategies that have enabled the industry to achieve outstanding levels of performance when compared with other countries in the region.
A bill to subsidize the production of peanuts in the U.S. and an initiative that would restrict imports of machine-made tobacco has caused concern in the private sector.
The agricultural bill and the initiative sent to consultation by the FDA in the United States includes the establishment of $10 as the price parameter for classifying cigars as premium and in the case of peanuts, raising production of grain by 30% through the application of an agricultural subsidy.
Nicaragua is the third largest exporter of peanut oil in the world and its main market is the Netherlands to which it exported $19.4 million worth in 2012.
The first and second place in terms of exports, at the global level, are occupied by Argentina and Brazil respectively. Another market to which Nicaraguan production goes to is France which received $7 million worth, followed by the U.S. with $5.4 million.
During 2012 peanut sales abroad totaled $133 million, nearly four times the amount of 10 years ago.
Nicaragua produces three million pounds of peanuts per year, with the region of Chinandega controling 60% of industrialized production and 90% of the grain that is exported.
Up to March 30, 2013, raw or unroasted coffee sales had fallen by 32%, which means a loss of $45.1 million.
Furthermore, the have been fewer sales of beef, sugar and peanuts, among other products, resulting in total export revenues diminishing by 8%, according to the Center for Export Procedures (Cetrex).
During 2013, Nicaragua plans to sell 600,000 more quintals of peanuts than in 2012, when 3.6 million quintals were exported, for a revenue of $132 million.
"Exports as a whole will increase (20%) in 2013, although the increase is because we are going to export greater volumes," said Joaquín Zavala, vice general manager of Comercializadora de Maní, S.A., Comasa, which contributes to almost 90% of foreign sales of the product.
A production of 3 million quintals of peanuts will be the result of the harvest that began in November and ends in early January 2012.
The 15% increase compared to the previous harvest is the result of an improvement in the performance of the planted area, as acreage has not been extended, said the producer Mauricio Zacharias.
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