Brazil suspends concessions on Costa Rican imports in protest against surcharge on its sugar exports

The Brazilian government suspended concessions on imports of certain products from Costa Rica on November 17. The measure will represent a 27.68% surcharge on imports of Costa Rican products such as chocolates and teas. The decision is supported by the WTO Safeguards Agreement.

The measure was taken through a CAMEX (chamber of foreign trade) resolution in retaliation to Costa Rica’s decision to apply unjustified safeguards to sugar it imports from Brazil that results in a surcharge of 27.68% on the Brazilian product.

In a joint note signed by the Ministry of Foreign Affairs, Ministry of Economy, and Ministry of Agriculture and Food Supplies, the authoritative bodies state that “before the measure was applied, the Brazilian government sought to negotiate an agreement with Costa Rica that would avoid restrictions on bilateral trade, which has not yet been possible.”

Costa Rica’s safeguards affect Brazilian exports are valued at US$ 3.7 million per year, according to the latest data (August 2019 to July 2020). The Brazilian measure, implemented in the form of an increase in import tariffs identical to that applied by Costa Rica for Brazilian sugar, will fall on exports from that country in the amount of approximately 950 thousand dollars and may be withdrawn or supplemented in light of the progress of the negotiations between the two countries.

The note also states that “the Brazilian government will remain committed to seeking a negotiated solution that will go towards strengthening and expanding commercial ties with Costa Rica”.

With information from Agência Estado

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