American Expatriate Costa Rica

Strike caused decrease of $53 million in exports

The Chamber of Exporters of Costa Rica (CADEXCO) said that the performance of exports has been impacted by the indefinite strike.

According to the Chamber, there is a significant reduction of -5.5% in the exports made in September 2018 compared to September 2017. This implies a decrease of $ 52.7 million.

The entity believes this decrease is mainly due to the repercussions of the strike, which caused prolonged delays in the transport of merchandise throughout the national territory, operational delays in the port, and additional expenses in the companies to achieve their commitments with their commercial partners.

The accumulated exports up to September reflect a growth of 6%, where the definitive regime has increased by 2% and the free zone by 10%. However, these are lower compared to 2017.

CADEXCO reiterated the great impact of the crisis in Nicaragua, since there was a 9% drop in exports going to that destination.

Nearly 95% of exports in the region are transported by land. Each month, around five thousand containers leave the country to those destinations, which were affected by the closure of these roads due to the conflict.

The authorities are also worried about the deceleration in essential products for national development, such as juices and fruit concentrates that showed a reduction of $34 million (-18%). The banana decreased its sales by $25 million (-3%). The export of sugar decreased by $24 million (-22%).

A proposal on the competitiveness agenda has been presented to the government with 84 recommendations on various issues, which aims to strengthen our exports, so we expect greater actions that encourage increased performance,”

said Laura Bonilla, president of the Chamber.

crhoy.com