Panama and Colombia Involved in a Tariff / Trade War

[Bud]

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Trade war with Colombia escalates

Posted on August 4, 2016 in Panama

Flowers from Colombia will cost more

Post Views: 215

 PANAMA’S TRADE  war with Colombia  edged up a notch this week with a Cabinet move  to raise tariff rates on four categories to the maximum allowed by international regulations.

The move came in  response to Colombia’s decision to extend a tariff on imports of textiles and footwear,

The Cabinet Council on Tuesday, August 2, approved the increase on flowers, clothing, coal and material for cement.

The decree is valid from Aug. 16 to Dec. 31.

Colombia has refused to follow a ruling by the World Trade Organization (WTO) that said its duties on products from Panama are a violation of international standards.

On WEdnesdayb, Colombian Minister of Trade Maria Claudia Lacouture defended the country’s decision, saying it was an action taken against money laundering and smuggling, a view not supported by the WTO.

http://www.newsroompanama.com/news/panama/trade-war-colombia-escalates

[Bud]

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WTO to referee Panama-Colombia tax fight

Posted on August 6, 2016 in Panama

Colombia flowers are part of trade dispute

Post Views: 62

THE WORLD Trade Organization (WTO) will  has returned  to attempting to resolve the ongoing tariff dispute between Panama and Colombia over tariffs on shoes and textiles.

Tariffs imposed by Colombia on shoes and textiles prompted Panama to increase the duty on numerous products from Colombia, including flowers and concrete.

According to the Ministry of Commerce and Industry (MICI), the arbitrator has 90 days to issue a decision. That deadline is from June 22.

Panama and Colombia have failed to reach an agreement in the dispute. The reasons for the disagreement differ on both sides.

During meetings between the two countries, Colombia decided to extend the tariff until November  1, claiming  it was part of its fight against money laundering and smuggling.

Panama has repeatedly rejected the Colombian move and. has also won two decisions before the WTO

http://www.newsroompanama.com/news/panama/wto-referee-panama-colombia-tax-fight

[Bud]

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Colombia Ignores WTO Ruling, Maintains Tariffs on Panama Imports

Officials Predict Footwear and Textile Prices to Spike

August 1, 2016 at 4:21 pm

Colombia violates WTO ruling and maintains tariffs on Panama footwear and textiles (Pexels)

EspañolColombian Finance Minister Mauricio Cardenas and the Minister of Commerce Maria Claudia Lacouture announced Sunday, July 31 they will be maintaining tariffs on footwear and textiles imported from Panama to Colombia.

The decision reportedly goes against World Trade Organization (WTO) policy.

According to a WTO ruling, Colombia should have eliminated tariffs imposed against Panamanian products in 2012 — a decision made with the aim of protecting Colombian producers from the low price of textiles and footwear from the Colón, Panama. Since then, Colombia has charged a tax of 10 percent plus a fine of US $5 for each imported container.

According to the decree, the new measure will help combat money laundering and is therefore justified as protecting public morals.

Shoes enter Colombia from China and sell between 30 and 50 cents, but they must first pass through Colón. Colombian producers of shoes reportedly consider the 35 percent maximum tax allowed by the WTO to be insufficient for protecting their products from the competition of imported products.

President of the National Federation of Merchants of Colombia (Fenalco) Guillermo Botero Nieto said he thinks merchants are the most effected by the protectionist measure, as prices of footwear products and textiles will increase and thus discourage consumption.

Colombian businessmen reportedly said they will respect the agreements reached with Panama and the WTO, but requested a solution that doesn’t continue to affect different sectors of the economy.

https://panampost.com/julian-villabona/2016/08/01/colombia-wto-ignores-ruling-maintains-tariffs-panama-imports/

[Bud]

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Panama-Colombia trade war escalates

Posted on August 15, 2016 in Latin America, Panama

90% of goods arriving in the Free Zone are for onward transmission, 10% go to the local market.

Post Views: 141

THE WAR OF  words and reciprocal taxation threats between Panama and its southern neighbor, Colombia, continues to warm up.

The latest shot across Panama’s bows comes from Colombia’s  Ministry of Commerce of Colombia which has announced that companies from that country have invested almost $8 billion in Panama.

Minister María Claudia Lacouture provided the  figure to the newspaper El Tiempo in an article about the current trade dispute between the two countries.

“What we see is that Colombia has erected measures to stop illegal trade, and Panama is putting up measures that affect legal trade,” the minister said.

Colombia has refused to abide by a World Trade Organization ruling that has determined its tariffs on textiles and footwear from Panama’s  Colón Free Zone violate its regulations. Colombia has argued that the tax is needed to combat smuggling and money laundering.

Last week, Panama  Minister of Economy and Finance Dulcidio De La Guardia presented a proposal to  the National Assembly to expand the scope of the law that allows Panama to expand the discriminatory measures it can take against countries that discriminate against it.

That could raise the tax on goods from Colombia to 40 percent..

http://www.newsroompanama.com/business/latin-america-2/panama-colombia-trade-war-escalates

[Bud]

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Panama: New Tariffs Against Colombia In Effect

Import tariffs on flowers will rise from 15% to 30%, those on cement clinkers from 0% to 30%, and import duties of clothing will go from between 10% and 15% to 30%.

Tuesday, August 16, 2016

The increase in tariffs comes on top of a 7% payment on account of the Tax on the Transfer of Goods, Furniture and Services (ITBMS) in the case of cement clinkers and clothing. See decree published in the official newspaper La Gaceta.(In Spanish)

Panamaamerica.com.pa reports that "...The Panamanian Colombian Chamber of Commerce is concerned about the consequences of the entry into force of this decree. Eduardo Cristo, union president noted that in the Board meeting an agreement was made to hold a meeting with Colombian businessmen who are affected by the tariff measures that Panama has adopted, in order to seek alternatives and mediate with their respective governments. "

"Colombian exports in general were 35 billion dollars last year and only 2.55% of them came to Panama, therefore various sectors indicate that the tariff measure will not have much effect," he said.

http://www.centralamericadata.com/en/article/main/Panama_New_Tariffs_Against_Colombia_In_Effect

[Keith Woolford]

Panama, Colombia officials to meet next week

Minister of Trade and Industry * Augusto Arosemena will meet next week with Colombian officials to try and resolve the trade dispute between the two countries.

"Talks are still open to find a solution," Arosemena said.

Colombia has placed tariffs on goods from Panama, including textiles and footwear from the Colón Free Zone. Panama has threatened to retaliate on goods from Colombia.

Panama has petitioned the World Trade Organization, which has ruled in its favor on two occasions. 

Arosemena has said that Panama will take steps to protect its rights.

http://www.prensa.com/in_english/panama-colombia-reunion-aranceles-omc_21_4565003458.html

* Minister Arosemena is the son of ophthalmologist and friend Dr. Augusto Arosemena.

Edited August 31, 2016 by Keith Woolford

[Moderator_02]

http://www.prensa.com/in_english/Panama-suspende-compra-millones-Colombia_21_4665493410.html

[Moderator_02]

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Tension Growing Over Panama-Colombia Trade Dispute

The Panamanian government has announced that until the dispute over tariffs is resolved, it will keep in abeyance the agreement signed with Colombia to buy two ships for $30 million.

Thursday, January 12, 2017

As part of the trade dispute caused by the tariffs imposed by Colombia on imports of Panamanian footwear and textiles, the Varela administration has announced the suspension of a contract signed in October with Cotecmar, a company linked to the Colombian Defense Ministry.

".. The purchase 'has been suspended until we can resolve the trade dispute' said the Panamanian Minister of Commerce and Industry, Augusto Arosemena, during a presentation of the 2016 annual report. The decision announced on Thursday to stop the transaction was taken 'some time ago', said Arosemena, who denied that this is a retaliatory measure against the Andean country. The purchase of ships was agreed on October 25 during a meeting between presidents Santos and Varela."

Laestrella.com.pa reports that "...In November the Government of Colombia suspended a mixed tariff on footwear and textiles from the Colon Free Zone (CFZ), a tarriff declared illegal by the World Trade Organization (WTO), but it approved two decrees toughening customs controls and which also impeded imports of these products."

Source: Prensa.com

http://www.centralamericadata.com/en/article/main/Tension_Growing_Over_PanamaColombia_Trade_Dispute

[Moderator_02]

http://www.prensa.com/in_english/Panama-Colombia-Cartagena-resolver-arancel_21_4681991757.html

[Moderator_02]

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Panama to Maintain Tariffs Against Colombia

The government has extended, until December 31 this year, the decree from August 2016 that temporarily increases import tariffs for flowers, coal, clinker and clothing.

Wednesday, February 8, 2017

From a statement issued by the Presidency of Panama:

The Cabinet has given approval to the extension of Executive Decree No. 001-17 which temporarily increases import tariffs on items such as flowers, coal, cement clinker and clothing. The measure was applied from 16 August 2016 and remained in force until December 31, 2016.

The extension of the Decree will take effect from February 15 to 31 December 2017 and excludes countries that have free trade agreements in force with Panama, members of the Central American Economic Integration Subsystem and Countries with the less Economic Development in Relation to the Latin American Integration Association.

http://www.centralamericadata.com/en/article/main/Panama_to_Maintain_Tariffs_Against_Colombia

[Moderator_02]

http://www.prensa.com/in_english/Panama-OMC-autorizacion-sancionar-Colombia_21_4689491011.html

[Moderator_02]

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Panama asks WTO for $210 million fine for Colombia

Posted on February 14, 2017 in Latin America, Panama, Panama

 

Augusto Arosemena

Post Views: 135

PANAMA and Colombia are planning regular meetings to  iron out trade issues, but while jaw not war may be on the table, it has no stopped Panama from firing a parting shot at its southern neighbor by asking the World Trade Organization to impose sanctions of $210 million.

The move is related to a trade dispute between the two countries that arose in 2013.

“Panama requests the authorization of the Dispute Settlement Body (DSB) to suspend the application of concessions or other obligations to the value of $210

million to Colombia. This level of suspension is equivalent to the level of impairment resulting from the fact that Colombia has not complied with the recommendations and rulings of the DSB concerning the importation of textiles, clothing and footwear,” said a Panama government press release.

Last week, the Ministry of Commerce and Industry reported that Panama and Colombia had  agreed to implement a plan of action to overcome the differences between the two countries, arising from the trade measures applied by the Colombian authorities to footwear and textiles from the Colón Free Zone.

The agreement was made during a meeting held in Cartagena between Commerce Minister Augusto Arosemena and his Colombian counterpart, María Claudia Lacouture.

Deputy Minister of Foreign Affairs Luis Miguel Hincapie and Colombian Deputy Minister Patti Londoño also spoke at the meeting.

Arosemena described the meeting as positive and said a diplomatic solution to the issue seemed likely.

He said  that “the two governments agree on the importance of strengthening trade relations

and finding a viable solution that guarantees the interest of both countries that have historically been important partners.”

Arosemena stressed that it is the responsibility of the technical teams in each country to carry out their assessments to determine the feasibility and application of the agreements.

 

http://www.newsroompanama.com/business/panama-4/panama-asks-wto-210-million-fine-colombia

[Moderator_02]

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Panama: Tougher Sanctions for Colombia

Raising taxes exclusively on Colombian products is one of the measures that Panama could take until Colombia starts to comply with the WTO ruling.

Tuesday, February 14, 2017

The Panamanian government has asked the World Trade Organization (WTO) for authorization to use trade measures against Colombia, worth $210 million, equivalent to the effects that the imposition of Colombian tariffs had on the Colon Free Zone.

Laestrella.com.pa reports that "...Among the trade measures that could be applied by the isthmus is raising import taxes exclusively on Colombian products until the country starts to effectively enforce the ruling against the tariff measures applied by the Colombian authorities on shoes and textiles coming from the Colon Free Zone, reported the Ministry of Commerce and Industry of Panama (MICI). "

"...The MITI indicated that Panama submitted this request within the timeframe of a procedure established by the WTO, as January 22 was the deadline for Columbia to comply with the ruling. According to the MTI, the Government of Panama requested that the agenda of the meeting of the Dispute Settlement Body of the WTO, scheduled for February 20, 2017 include a review of the request."

Source: laestrella.com.pa

http://www.centralamericadata.com/en/article/main/Panama_Tougher_Sanctions_for_Colombia

[Moderator_02]

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Tariff Conflict between Panama and Colombia Continues

The WTO has established a new compliance panel to verify whether or not the South American country has complied with the ruling mandating it to withdraw the tariff on imports of textiles and footwear from Panama.

Tuesday, June 20, 2017

The decision of the Dispute Settlement Body of the World Trade Organization (WTO) was made at the request of the Panamanian government, which requested a panel be established for a second time, arguing that the South American country continues to impose restrictions on the importation of the products in question "... and that it wanted the trade dispute to be addressed within the framework of the WTO."

See: "Tougher sanctions for Colombia"

Portafolio.co reports that "...The tariff conflict between the two countries began in 2012, when Colombia started to apply tariffs of 10% on footwear and textiles and a charge of $5 for each container coming from the Panamanian Free Zone of Colon (ZLC in Spanish), for which reason Panama turned to the WTO, whose ruling was appealed by Colombia, but without success."

"... On November 2, the Colombian government replaced the tariff by two decrees which, in its view, comply with the WTO ruling and which, according to Panama, harden customs controls and impose new restrictions on access to the Colombian clothing and footwear market which is re-exported by the ZLC."

 

http://www.centralamericadata.com/en/article/main/Tariff_Conflict_between_Panama_and_Colombia_Continues

[Moderator_02]

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Panama: Retaliation Against Colombia

If the request by the Panamanian Ministry of Commerce and Industries is approved, a new tax of up to 40% could be established on the dividends distributed by Colombian companies.

Wednesday, November 15, 2017

In response to a decision by the Colombian government to extend the import tariff for footwear and textiles from Panama for two more years, the Panamanian Ministry of Commerce and Industries has asked the Foreign Ministry to apply the retaliation law, which has been in place since October of last year and which penalizes companies from countries that discriminate against Panama.

"... In November of last year Colombia issued two decrees. One of them adjusted the mixed tariff to the import of textiles and footwear which started a dispute over the limits allowed by the WTO, in the second, it established customs measures which led to a disagreement with the Panamanian authorities."

Laestrella.com.pa reports that "...The Cabinet Council will decide whether or not to apply a retaliatory measure.  Among them, according to Law 48, is application of a dividend tax of up to 40% on companies from States that take discriminatory actions against the country."

 

https://www.centralamericadata.com/en/article/main/Panama_Retaliation_Against_Colombia

[Moderator_02]

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The Never Ending Tariff Conflict between Panama and Colombia

The Panamanian government has decided to increase, in some cases by up to 30%, import tariffs on several products, including flowers, cement and bituminous coal, most of which are imported from the South American country.

Wednesday, February 7, 2018

According to a Cabinet Decree published on January 10 in the Official Newspaper, the Panamanian government decided to modify several fractions of the National Import Tariff, taxing at 30% imports of roses, carnations, chrysanthemums, calla lillies, astomerias, gladiolas and "flor de confite" (Calyptronoma plumeriana (Martius) Lourteig), which mostly come from Colombia.

Imports of bituminous coal will be taxed at 15%, purchases of white cement at 5%. Added to the list of products with a tariff of 30% are toilet paper and paper towels.  

Far from being resolved, the problem seems to be getting more and more complicated. What started more than two years ago with the imposition by Colombia of mixed tariffs on imports of textiles and footwear from Panama has turned into a kind of commercial war, in which both countries are using tariff increases to defend their position. See details of the tariff dispute between Panama and Colombia.

The new tariffs apply from February 1 of this year. See decree (in Spanish).

 

https://www.centralamericadata.com/en/article/main/Tariff_Conflict_between_Panama_and_Colombia_Continues_1

[Palo Alto Jo]

I just spoke to a man from Colombia who was telling me how lucrative it is to buy shoes here and re-sell in Colombia.  They evidently cost twice as much in Colombia as Panama.  I'm sure the same is true of every item involved in this trade war.  It helps no one because the items end up on the black market, protecting no one, and bringing in no government revenue.  But, there is always some politician trying to be popular by protecting some industry, and ends up hurting the common citizens who can't afford to fly to Allbrook to buy tennis shoes for their kids.  Is there even a shoe manufacturer to be protected in Colombia?    A good read of history shows it never works out well for anyone.

 

[MarieElaine]

Funny, I live in Medellin and found the quality of the shoes to be much better than Panama.  I think the leather goods come from Argentina.  Because the quality is better, the price is higher.  There are Payless stores here if one wants cheaper shoes and the prices to me seem comparable to Panama.  Just my take on this subject.

[Moderator_02]

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Panama and Colombia undertake effort to resolve tariff dispute

Marietta Puche
Tue, 03/13/2018 - 14:46

@MICIPMA

The Minister of Commerce and Industry of Panama, Augusto Arosemena, met with the Minister of Commerce of Colombia, María Lorena Gutiérrez, in an effort to "move forward with a consensual solution" to resolve the tariff dispute that began in 2012, as a result of the restrictions imposed by the Colombian government on the import of textiles and footwear from the Colon Free Zone, affecting relations between both countries.

This was announced by the Ministry of Commerce and Industry of Panama on Twitter. They reported that the meeting between the ministers was held "in a very cordial and positive atmosphere, which reaffirms the willingness of both governments to seek a solution to the commercial conflict".

This meeting is convened after the government of Panama’s inclusion of Colombia within the list of the 20 countries that apply discriminatory or restrictive measures against the country, which could lead to the application of tax, customs and migration reciprocity measures through the Retorsion Law, in force in Panama since the end of 2016.

The Minister of Commerce and Industry, Augusto Arosemena, recently informed that with the publication of this list "they seek to defend the interests of Panama"; however, he highlighted that they will analyze the case of each country to take the pertinent measures in the case they render necessary to adopt them. He told local media that the government of President Juan Carlos Varela is committed to resolving these differences through dialogue.

"We as the Government must defend the interests of Panama internationally. When we passed the retorsion law (reciprocity) in 2016, a year and a half ago, we had planned to take this step, although obviously we had to exhaust previous efforts," said the official, according to local media reports.

The commercial conflict between the two countries began in 2012, when Colombia applied tariffs to the re-exports of footwear and textiles from the Colon Free Zone (CFZ). Given this measure, the Panamanian government went to the World Trade Organization, which ruled in its favor and declared this action illegal, forcing Colombia to suspend the mixed tariff in November 2016.

However, the South American country replaced the tariff by two decrees increasing the rate of some products re-exported from the Colon Free Zone, specifically clothing and footwear, to which the Panamanian government responded by also increasing the number of goods arriving from Colombia, as in the case of flowers and toiletries, according to local press release.

Varela’s government, imposed a measure on Colombia to face the trade dispute, by also canceling the purchase of two patrol boats to the Colombian army, for approximately 30 million dollars, "a transaction that had been agreed in October 2016 during a meeting of the presidents of Panama, Juan Carlos Varela, and of Colombia, Juan Manuel Santos," according to the press release published by EFE.

Because of the tariff dispute, Panama has suspended the approval process of the free trade agreement (FTA) signed by the two governments in 2013, after four years of negotiations that began in 2009. (EFE)

Colombia, Brazil, Chile, Ecuador, El Salvador, Peru, Uruguay, Venezuela, Croatia, Slovenia, Estonia, France, Greece, Lithuania, Poland, Portugal, Cameroon, Georgia, Russia and Serbia are the countries that apply discriminatory or restrictive measures against Panama, according to the list published by the country.

 

http://www.panamatoday.com/economy/panama-and-colombia-undertake-effort-resolve-tariff-dispute-6405

[Moderator_02]

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Footwear: In Search of New Business

Re-exporters in the Colon Free Zone are seeking to attract companies from Peru, Uruguay, Brazil and Mexico, to compensate for some they of the businesses that have lost due to the taxes imposed by Colombia.

Monday, March 26, 2018

Nearly 70 companies in the Colon Free Zone (CFZ) are among the most affected by the tariff measures imposed by Colombia, the main importer of footwear and textiles that is re-exported from the FTA to Latin America. Panamaamerica.com.pa reports that this is added to  "... Venezuela's economic condition and a drop in purchases from Caribbean countries."

See also: "Shoe market in Central America"

The manager of the CFZ Manuel Grimaldo explained that "...Technical work tables have been created with very specific sectors of the Colon Free Zone in order to detect needs and identify actions that will promote competitiveness of the free zone. Important companies such as Zeppelin, SA, Payless Shoesource among others, were part of this work table."

See: "Tariff conflict between Panama and Colombia"

Grimaldo added that "...'Footwear companies have had to reinvent themselves in order to stay in business and offer new services, in addition to taking advantage of the benefits offered by Free Trade Agreements' ... We started with pharmaceutical products and now we will continue with footwear, but we intend to cover textiles, electronics, jewelry and others that have been affected by various factors, we want to know the status of the activity and how the CFZ can contribute to this activity being maintained."

 

https://www.centralamericadata.com/en/article/home/_Empresas_de_calzado_se_han_reinventado_para_seguir_en_el_negocio__La_guerra_comercial_entre_ambos_pases_ha_afectado_mayormente_el_rubro_calzado_donde_operan_unas_69_empresas_debido_a_las_medidas_discriminatorias_que_ha_impuesto_Colombia_y_otros

[Moderator_02]

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Panama and Colombia Try to Resolve Tariff Dispute

The business associations of both countries started working on a joint plan to solve a problem that has been causing them damage for the last six years.

Wednesday, June 20, 2018

Representatives from the Chamber of Commerce, Industries and Agriculture of Panama (Cciap) and members of the Chamber of Commerce of Bogotá, initiated talks to develop a joint plan to end the conflict that has affected them since 2012.

In a statement,  the Cciap explained that " ... we have begun conversations with the Chamber of Commerce of Bogotá, in order to establish a joint plan aimed at promoting the signing of an agreement between Panama and Colombia that will allow us to overcome the dispute that arose because of restrictive measures adopted at the time by the Colombian government."

Read here more details about the history of this tariff dispute. 

The statement adds that " ... Similarly, the aim is to sign an agreement between the Chamber of Commerce, Industries and Agriculture of Panama and Corferias of the Chamber of Commerce of Bogota, which will enhance the competitive advantages of our country for the attraction of trade fair events and conventions of magnitude, similar or superior to that of Expocomer, which would represent a significant economic impact with multiplier effects."

 

https://www.centralamericadata.com/en/article/main/Panama_and_Colombia_Try_to_Resolve_Tariff_Dispute

[Moderator_02]

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WTO: Colombia has complied with resolution on Panamanian import tariffs

Fri, 10/05/2018 - 16:20

A panel of experts from the World Trade Organization (WTO) has ruled that Colombia has complied with a resolution that forced it to withdraw tariffs and obstacles to textile, clothing and footwear imports from Panama.

Panama had claimed before the WTO Colombia's alleged failure to comply with that resolution, but the panel concluded that the Central American country has failed to demonstrate that the measures taken by Colombia to comply with the requirements were incompatible with Bogotá's obligations under the rules of the entity.

The WTO had urged Bogotá to withdraw a tariff and the Colombian government replaced it with two decrees that, in Panama's opinion, tighten customs control and entail new restrictions on access in the Colombian clothing and footwear market re-exported by the Colón Free Trade Zone, something that the panel has rejected.

The dispute between Panama and Colombia over the measures imposed by Colombia on imports of textiles, clothing and footwear crossing the Panama Canal, allegedly taken to combat undervaluation and money laundering, goes back more than a decade.

However, it worsened when in 2012 Colombia began to apply tariffs of 10% on footwear and textiles and a charge of 5 dollars for each container coming from the FTA.

Today's decision responds to two compliance procedures initiated by each of the countries involved in the conflict.

The WTO Dispute Settlement Body established in June 2017, at the request of Panama, a panel of experts to determine compliance or not by Colombia of the body's decision.

In March of that same year, the Dispute Resolution Body had already decided to establish a panel but at the request of Colombia.

Bogotá demanded the panel to investigate whether or not it complied with the WTO resolution, something quite unusual, since normally a nation does not usually ask to be investigated.

At the same time, there is a third arbitration panel on the same case given that Panama, when understanding that Colombia had not complied with the organization's ruling, requested the WTO to impose, in retaliation, commercial sanctions on Colombia for 210 million dollars.

The Andean country appealed the amount of sanctions requested, which automatically activated a WTO arbitration panel.

The decision on this third arbitration has not yet been issued.

 

https://www.panamatoday.com/panama/wto-colombia-has-complied-resolution-panamanian-import-tariffs-8023

[Moderator_02]

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Tariff Dispute: Colombia's New Offensive

The South American country decided to impose a tariff of 37.9% on clothing when its declared FOB price is less than or equal to $20, again affecting businessmen in the Colon Free Zone in Panama.

Wednesday, August 14, 2019

Decree Number 1416 of the Ministry of Commerce, Industry and Tourism of Colombia, dated August 6, 2019, specifies in its Article 1 that establishes "... a tariff of thirty-seven point nine percent (37.9%) on imports of products classified in chapters 61 and 62 of the National Customs Tariff, when the declared FOB price is less than or equal to 20 United States dollars per gross kilogram."

Article 2 stipulates that "... a tariff of 10% ad valorem, plus 3 United States dollars per gross kilogram, shall be applied to imports of products classified in Chapters 61 and 62 of the Arancel de Aduanas Nacional, when the declared FOB price exceeds 20 United States dollars per gross kilogram."

The Decree also stipulates that "... goods of Chapters 61 and 62 of the National Customs Tariff coming from a Special Customs Regime Zone, a Free Trade Zone or an International Logistics Distribution Center shall be subject to the provisions of this Decree at the time they are to be introduced into the rest of the national customs territory."

The tariff dispute between Colombia and Panama dates back years, even the case has been brought before the World Trade Organization (WTO), where the Panamanian government has filed appeals, as the rulings have concluded that the restrictive customs control measures adopted by Colombia do not violate WTO rules.

In response to the new offensive of the South American country, the Association of Users of the Colon Free Zone requested "... urgently to the administration of President Laurentino Cortizo "forceful" retaliatory measures against Colombia, for the new restrictions imposed on trade between the two countries."

Prensa.com reports that "... For this business guild, Colombia again incurs in the application of measures that harm trade with Panama. This situation directly affects the Colon Free Zone, despite the fact that on different occasions these actions that are discriminatory for our country have been upheld before the World Trade Organization".

Source: Prensa.com

 

https://www.centralamericadata.com/en/article/main/Tariff_Dispute_Colombias_New_Offensive

[Moderator_02]

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Tariff Conflict: Colombia's New Offensive Rules

On November 5, a 37.9% tariff was charged on imports of clothing when its declared FOB price is less than or equal to $20, which affects businessmen in the Colon Free Zone in Panama.

Wednesday, November 6, 2019

Decree No. 1416 of the Ministry of Commerce, Industry and Tourism of Colombia, dated August 6, 2019 and which has just come into force, states in its Article 1 that "... a tariff of 37.9% on imports of products classified in Chapters 61 and 62 of the National Customs Tariff, when the declared FOB price is less than or equal to US$20 per kilogram gross."

Daniel Rojas, president of the Colon Free Zone Users Association, told Prensa.com that "... these new tariffs are a new blow to the Colon Free Zone and the country's economy. The new tariffs take him by surprise, so he will investigate the issue."

Rojas added that "... Definitely that this tariff issue should be on the agenda of President Laurentino Cortizo on his next visit to Colombia on Wednesday, November 13."

The tariff dispute between Colombia and Panama dates back years, including the case has been brought before the World Trade Organization (WTO), where the Panamanian government has filed appeals, as the rulings have concluded that restrictive customs control measures adopted by Colombia do not violate WTO rules.

 

https://www.centralamericadata.com/en/article/main/Tariff_Conflict_Colombias_New_Offensive_Rules