COSTA RICA: Brazil complains about sugar tax increase

Published: 02/17/2017, 2:54:33 PM

The Brazilian government sent a letter to Costa Rica's Ministry of Economy, Industry and Commerce (MEIC), saying that a 6.82% increase on sugar tariffs imported from the South American country is "worrying", according to Costa Rica's La Nación news website.

Costa Rica raised sugar tariffs in the beginning of this month as a measure to prevent unfair competition. Tariffs for Brazilian sugar imports were increased from 45% to 51.82%.

Costa Rican company La Maquila Lama, which imports sugar from Brazil, has already filled an appeal to revoke the tariff increase.

The increase in tariffs resulted from a complaint by the Costa Rica's sugarcane industry association Laica at the MEIC's Office of Trade Defense on June 12, 2015, alleging that increasing sugar imports by La Maquila Lama was negatively affecting national production.

The Brazilian embassy in Costa Rica said in a statement that MEIC's decision to raise tariffs is a violation of the World Trade Organization Antidumping Agreement.

MEIC refused to comment on the issue but confirmed it received the letter from the Brazilian government.