The Central American dairy sector is currently facing the problem of marketing imitations and substitutes for its products, despite the fact that the region has a Technical Regulation in this area.
According to the Inter-American Institute for Cooperation on Agriculture (IICA), a study conducted in 2016 by Canadean Wisdom estimated a 1.6% increase in animal milk consumption in Latin America and a 2.8% increase in the consumption of substitutes, hence the importance of regulating and ensuring the correct use of dairy terms in the region.
The sanction was imposed following a complaint made "by TVC Network, S.A. de C.V., against Digicel, S.A. de C.V., for a possible abusive dominant position."
The complainant stated that this economic agent was creating barriers to the entry of competitors or the expansion of existing ones in the market for the termination of national and international calls, informed the authorities of the country.
The Ministry of Economy found that Costa Rican Dos Pinos had dumped, but ruled out sanctions, arguing that no damage was caused to sales or local production.
The investigation process was carried out by the Ministry of Economy of El Salvador, derived from the complaint filed in 2017 by the Salvadoran Cooperativa Ganadera de Sonsonate, de RL de CV against the Costa Rican Cooperativa de Productores de Leche Dos Pinos and the local distributor Comersal.
American Drugstore and C. Imberton were sanctioned for proving "that they engaged in the anti-competitive practice of agreeing to fix the prices of Cataflam, Diovan and Lamisil products."
The Superintendence of Competition of El Salvador (SC) sanctioned American Drugstore, for $171,000, and C.
Holcim S.A. in El Salvador was sanctioned for "having failed in its duty of collaboration to provide the information and documentation required to the Superintendence of Competition."
From the Superintendence of Competition statement:
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.
Due to failing to provide on time the information and documentation required to carry out a study on the beef market in the country, in El Salvador the Superintendence of Competition sanctioned Sukarne.
From the statement of the Superintendence of Competition:
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).
The Supreme Court has ruled in favor of the Superintendency of Competition in the case brought against them by Telefónica, claiming the alleged illegality of a resolution which sanctioned an agreement between competitors in December 2011.
From a statement issued by the Superintendency of Competition in El Salvador:
The legislation includes the implementation of anti-dumping, countervailing, anti-subsidy and safeguard actions against unfair trade practices.
From a statement issued by the Legislative Assembly of El Salvador:
The National Assembly has passed, with 68 votes, the Special Law on Trade Remedies. This regulation was discussed within the Committee on Economy, after it was presented to the Legislative Assembly last October by the Minister of Economy and private sector representatives, who also accompanied the legislators during their studies.
A draft Law on Trade Defence establishes mechanisms to protect and defend the industry against unfair trade practices.
The bill, prepared jointly by the private sector and the government, will be presented on Tuesday, Oct. 13 at the Legislative Assembly. The aim of the law is to regulate actions such as massive imports in some sectors that could result in unfair practices.
Costa Rican dairy farmers have denounced the fact that in the region regulations are not met nor are specifications on labeling and product features.
The Chamber of Milk Producers (CPL by its initials in Spanish) argues that there are companies in the region that are replacing animal protein with plant protein, or decreasing the percentage of fat in exchange for lowering the price of the product, which is not in compliance with the requirements and standards set out in the Central American technical regulations.
Under discussion in the Salvadoran Congress is the application of equal fiscal controls and management for private companies and those made up of mixed capital.
Public-private companies should be subject to the same controls and audits as those consisting of 100% private capital, because lack of transparency in controls of some of them and excess controls in others affects competitiveness and economic development.
The company was fined $759,924 for failing to petition the Salvadorian Superintendency of Competition to approve to purchase of nine service stations.
In addition to the financial penalty, the Superintendencia de Competencia (SC) demanded that the company submit within 30 days an application to follow the procedure which should have been done in the beginning.
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