Tariffs International Commerce World Trade Organization Exports & imports exports Polypropylene trade litigation restrictions to international trade trade restrictions CAFTA-DR Commerce Héctor Dada Sánchez Luis Velásquez export sector exporting companies

WTO Rules Against Dominican Republic

A complaint by Costa Rica, Guatemala, Honduras and El Salvador over tariffs on woven and polypropylene bags, has obtained a favorable ruling.

Thursday, November 24, 2011

The arbitration panel of the World Trade Organization (WTO) today released its final report, which stated that safeguard measures imposed by the Dominican Republic in 2010 on polypropylene and woven bags from Costa Rica was a violation

The arbitration panel found that the Dominican Republic violated several provisions of Article XIX of GATT 1994 and the Safeguards Agreement of the WTO and therefore recommended that the Dominican Republic take steps to conform with its obligations under these agreements.

Polypropylene and woven bags came into the Dominican Republic duty free until the safeguard consisting of a 38% tariff was imposed, which halted exports of these products to this market. This situation forced Costa Rica to activate the dispute settlement mechanism of WTO, on October 5, 2010, along with Guatemala, Honduras and El Salvador. The countries participated in consultations with the Dominican Republic in the WTO, which failed to resolve the dispute. Subsequently, an Arbitration Panel was appointed which today released its findings.

Key entities

World Trade Organization

Countries

Dominican Republic El Salvador Honduras Guatemala Costa Rica

Insight

Tariffs Polypropylene exports exports trade litigation Exports & imports International Commerce

Central America Wins Dispute with Dominican Republic

October 2011

The WTO has provisionally determined that the measures imposed by the Dominican Republic, charging tariffs of up to 38% on imports of certain products from the region, are inconsistent with its trade obligations.

The lawsuit filed at the World Trade Organization (WTO) by El Salvador, Honduras, Guatemala and Costa Rica objected to the high tariffs imposed by the Caribbean country on products from the region.

WTO Confirms Dominican Republic Violated Rules

February 2012

The report argues that tariffs on Central American imports imposed by the Dominican Central on tubular fabric and polypropylene bags, of up to 38%, are in violation of its rules.

The Central American tariffs on imports of tubular fabric and polypropylene bags, imposed by the Dominican Republic, are in violation of the rules of the World Trade Organization (WTO), said a report by the agency.

Dominican Rep. Removes Tariff on Polypropylene

March 2012

By eliminating the tariff of 38%, conditions for the export of tubular fabric and polypropylene bags to the Dominican Republic return to normal.

A statement from the Ministry of Foreign Trade of Costa Rica:

The Dominican Republic will comply with WTO recommendations before April 30th

Costa Rica Resumes Shipments of Tubular Bags to Dominican Republic

May 2012

The first exports of polypropylene and fabric tubular bags entered the Dominican Republic after the WTO ordered the country to eliminate the safeguard measure imposed on imports from Costa Rica, Guatemala, Honduras and El Salvador.

From a press release from the Ministry of Foreign Trade of Costa Rica (Comex):

close (x)