Newsletter #145 / January 2023
Prior to the conflict between Russia and Ukraine, which began in February 2022, Ukraine was one of the world's leading corn producers[1]the fourth largest corn exporter and one of the world's leading grain producers. Due to the war, this has changed. It is estimated that in 2023 Ukraine will decrease its production from 41.9 million tons to 18.6 million[2] .
The impact of the international situation has not only been reflected in the availability of basic grains, but also in products such as fertilizer, natural gas, consumer goods, oil and other fuels, amongst others.
In response to this, the Guatemalan Ministry of Economy (Mineco) published Ministerial Agreement No. 022-2023[3], which will enter into force on September 13, 2023.
This agreement is a response to the impact that basic final goods have suffered. Therefore, imports of yellow corn, corresponding to the tariff item 1005.90.20.00[4] of the Central American Import Tariff, will be exempted in its entirety from the payment of tariffs from September 13th to December 31st of this year.
The subsidy granted will apply exclusively to those who comply with the requirements contained in the Regulations for the activation and administration of tariff quotas for shortage of yellow corn and /or white corn[5].
For more information, please contact:
- María de Lourdes Villanueva maria.villanueva@carrillolaw.com
- Gabriel Cabrera gabriel.cabrera@carrillolaw.com
[1] https://www.investopedia.com/articles/markets-economy/090316/6-countries-produce-most-corn.asp
[2]https://farmpolicynews.illinois.edu/2022/02/a-closer-look-at-ukrainian-corn-and-wheat-exports-recent-usda-reports/
[3] https://leyes.infile.com/index.php?id=143
[4]https://comercioeinversionguate.gob.gt/media/uploads/2022/03/07/sac-vii-enmienda 2022_compressed.pdf
[5] https://leyes.infile.com/index.php?id=182&id_publicacion=84077