NOVA MEDIA PUBLISHING INC.

Costa Rica: Sales to the United Kingdom Lose Dynamism

24.8.2018

During the first semester of the year, exports to the English market registered a fall of 9% with respect to the same period of 2017.

As of June 2018, the transactions generated US$ 110 million in foreign currency, while in 2017 revenues were US$ 121 million, according to the Foreign Trade Promoter (Procomer).

The contraction was due to a decrease in banana sales, the main export product, to other international markets as well as to the English. For the first six months of 2017, this business accounted for US$ 55 million and for the first semester of this year the figure decreased to US$ 41 million. A reduction of 25%.

In the first four months of 2018, fruit sales fell internationally, as the producing areas suffered flooding, as confirmed by Jorge Sauma, general manager of the National Banana Corporation (Corbana).

In the case of exports to Great Britain, the decline also occurred because the banana companies decided to place the product in other markets such as Finland, Italy, Sweden, in addition to providing more fruit to the United States and Germany. This was indicated by Karina López Porras, coordinator of Market Research of Procomer.

The National Banana Corporation (Corbana) exported 5.2 million boxes in the first half of this year, compared to 6.6 million boxes in the same period of the previous year. A decrease of 21%.

After Brexit, the United Kingdom is in negotiations to leave the European Union; In mid-July the government of Theresa May presented a new proposal with which it intends to reach an agreement with Brussels before March 29th the deadline for departure if the parties fail to reach an agreement.

Weeks ago, George Hollingbery, Minister of Trade Policy of the Ministry of International Trade of the United Kingdom, visited Costa Rica to talk with the authorities about the challenges of the process.

The minister said that Britain wants to maintain relations with its trading partners, so they would replicate the conditions of the Association Agreement of Central America and the European Union (Aacue) to trade with the Isthmus.

'We are not only willing (to replicate the Aacue), but that is exactly what we want. It is essential, we have 40 different agreements of the European Union with third parties, 70 different countries, and in each of those cases we have the desire to make the transition with as little change as possible," Hollingbery said.

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