#1Presentation by the Ministry of Trade and Industry H CARICOM-COSTA RICA FREE TRADE AGREEMENT MARCH 6, 2018 DOING BUSINESS IN COSTA RICA SEMINAR EXPORTT TRAINING ROOM 1#22 Overview of Presentation Key Facts Trade with Costa Rica Overview of CARICOM-Costa Rica Free Trade Agreement (FTA) What's in it? How can you benefit? Issues Facing exporters in the Costa Rican Market Where can you get more information? mti MINISTRY OF TRADE AND INDUSTRY#3Key Facts - Costa Rica 3 mti MINISTRY OF TRADE AND INDUSTRY Currency - Colón Population 4.8 million Doing Business ranking - 61 GNI per capita - US$10,210 Language - Spanish GDP - US$ 54.1 billion#4mti MINISTRY OF TRADE AND INDUSTRY $11 2000000,000 1800000,000 1600000,000 1400000,000 1200000,000 1000000,000 800000,000 600000,000 400000,000 200000,000 Trinidad and Tobago's Trade with Costa Rica 2012-May-June 2017 4 Total Exports -Total Imports 2012 50013,344 305986,975 2013 1787488,637 301725,107 2014 522497,480 302808,861 2015 472812,514 327382,424 2016 50105,609 329208,177 Total Exports Total Imports Jan-May 2017 13769,471 119606,553#5mti MINISTRY OF TRADE AND INDUSTRY Trade with Costa Rica - 2016 Trinidad and Tobago's Trade with Costa Rica - 2016 Total Exports Total Imports Top 5 Exports Top 5 Non- energy exports Top 5 Imports TT$ 50.2 M TT$ 329.2 M Liquefied propane, Urea, Semi-finished iron, Non-alloy bars/rods and Cereal preparations Cereal preparations, other food preparations, electric lamps and lighting fittings, plugs and sockets Other Food Preparations, Carrots, plastic lids and caps, detergents and Paperboard products. 5#6CARICOM-Costa RICA Free Trade Agreement (FTA) 6 mti Signed on March 9, 2004 Agreement reciprocal in nature for CARICOM MDCS - Barbados, Guyana, Jamaica and Trinidad and Tobago ► CARICOM LDCs are not required to grant preferences but benefit from preferential access into the Costa Rican market Covers trade in goods, with built-in agenda for the negotiation of Services and Investment ► Provides access for all goods, except for those listed in Annex III to the Agreement ▸ Act to give effect to the Agreement in Trinidad and Tobago was assented to on February 24, 2005 MINISTRY OF TRADE AND INDUSTRY#7mti MINISTRY OF TRADE AND INDUSTRY What's in it? Tariff Eliminatio n Annexes Rules of Origin Annexes SPS, TBT Trade in Goods Contact Points Dispute Settlemen † Annex Joint Council Institutional Issues Built-in Agenda 2 years after Trade in Services Built-in Agenda 2 years after Investment Future Work Program for Competiti on Policy, Governm ent Procurem Lent and Other Provisions 7#8mti MINISTRY OF TRADE AND INDUSTRY What's in it? 8 Tables contained in Annex III A Special Treatment of Selected Agricultural Products - B Excluded Products C - Phased reduction of duties Description of Treatment Granted • T&T - tomatoes, cauliflower, cabbage, lettuce and sweet potato from Costa Rica Costa Rica cucumber, sweet peppers, pigeon peas, sweet potatoes, yams and avocados - CARICOM meat of swine and edible offal, fresh and frozen fish, milk and cream, pepper sauce, citrus fruits, beer and rum Costa Rica - coffee, rice, cigarettes, beer and rum, disinfectants, toilet paper and wooden furniture CARICOM - Cocoa beans, tomato ketchup, perfumes, trays and cups, plywood, lamps and light fittings and brooms Costa Rica - passion fruit, cocoa beans, jams, fruit jellies and marmalades and tableware#9mti MINISTRY OF TRADE AND INDUSTRY What's in it? Tables contained in Annex III DSpecial List E - Special Treatment applicable to Oils, Fats and Soaps Description of Treatment Granted T&T - excluded hams, bacon and luncheon meat. Offered duty free treatment for meats of sheep, sweet biscuits and aerated beverages. Phase reduction was applied to other fermented beverages and preparations for use on hair Costa Rica - excluded hams, bacon and luncheon meat for T&T. Offered duty free treatment for cocoa powder, peanuts, beauty or make-up preparations and aerated beverages. Phased reduction was applied to wheat or meslin flour, ice cream and other edible ice and cigars. The Parties are yet to discuss the treatment to be accorded to products of Chapter 15 and 34 under the Agreement.#10mti MINISTRY OF TRADE AND INDUSTRY What's in it? 10 The following goods produced by companies operating under Free Trade Zone Regimes are eligible to tariff elimination benefits: ►8473.30 - parts and accessories of the machines of heading No. 8471 ►8533 - electrical resistors (including rheostats and potentiometers), other than heating. resistors 8534 Printed circuits - ►8542 - Electronic integrated circuits and microassemblies ‣ 8543.90 - Parts#11mti MINISTRY OF TRADE AND INDUSTRY How can you benefit? Manufacturers benefit from duty free access for all products, except for those listed in Annex III which are subject to special treatment. 11#12mti MINISTRY OF TRADE AND INDUSTRY Issues Facing Exporters in the Costa Rican Market Non-Tariff Measures (NTMS) and Administrative Practices i. Product Registration Requirements Requirement of Costa Rica's Law 6209 of 1978 (Distributor Law) Inadequate Transportation Links between CARICOM countries and Costa Rica 12#13How can your issues and any additional requests for market access be addressed? 13 ► Submit information on issues experienced when trading with Costa Rica, with relevant supporting evidence Requests for duty free treatment of products not covered under the Agreement Permanent Secretary Ministry of Trade and Industry Level 17, Nicholas Tower 63-65 Independence Square Port of Spain#14Additional Information Contact the Trade Directorate Ministry of Trade and Industry Ms. Trudy Lewis, Senior Economist (Ag.) Tel: 627-8418 Email: [email protected] Ms. Melissa Marshall Tel: 623-2931/4 ext. 2403 Email: [email protected] 14