The Guatemalan Minister of Economy, Luis Velasquez, has submitted a proposal to the Council of Ministers of Economy of Central America (Comieco) which aims to add an amendment to DR-CAFTA on error correction mechanisms.
According to the minister, certificates of origin of U.S. products are wrongly labelled as NAFTA, the trade agreement with the U.S., Canada and Mexico - meaning that when they enter the country they lose the tariff preferences of the regional FTAs.
"In March a proposal was sent on behalf of Central America and The Dominican Republic to the U.S. Trade Office, but they have not paid anyattention to it, so we are therefore insisting" he said.
Carolina Castellanos, executive director of the Guatemalan-American Chamber, said that under the FTA products do not require certificates of origin, only affidavits.
"However, perhaps due to ignorance, U.S. exporters are erroneously sending certified products with the NAFTA stamp, so on admission, the Superintendency of Tax Administration (SAT) is applying tariffs, believing that there is no assurance as to whether the product is from the U.S., Canada or Mexico", he said.
Raul Diaz, head of Customs at the SAT, said that the regional treaty states that the only way to prove the origin of a product is with a certificate – although it does not establish a single parameter - and when they are imported with mistakes they are accepted, and amended but the tariff preferences are lost.
"The law is clear and the only thing that the SAT is doing is applying the rules", said Diaz.
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The Dominican Republic, Central America and the U.S. agreed to make adjustments in agriculture, sanitary standards, textiles and disputes.
During the meeting held in El Salvador, government representatives began the meeting by reviewing developments in trade and investment.
Companies are preparing for the process of tariff reduction for imported goods and services from the United States under the FTA.
Starting 2015 various products will be able to come into Nicaragua from the U.S. tax free. Employers are now preparing for the tariff reduction process of the Free Trade Agreement between the U.S., Central America and Dominican Republic (DR -CAFTA).
Since the entry into force in 2006 of the DR-CAFTA, the tip in favor of the U.S. in the trade balance has multiplied by 5.
"The Central America to which President Barack Obama is coming to visit on on Friday is a region that maintains multiple communication vessels with the United States, including a growing trade relationship which in 2012 amounted to $40 billion, although very much in favor of the American power," reported Prensa.com.
A dispute over the failure to implement tariff benefits on the part of El Salvador on tires and juices exported by Costa Rica has not been resolved using other methods.
The Costa Rican Minister of Foreign Trade, Anabel Gonzalez confirmed that on January 20th El Salvador will be taken to court for not applying the tariff benefits negotiated in the FTA between the U.S., Central America and the Dominican Republic on tires and juices.