U.S. tariff hike puts Costa Rican pineapple industry on high alert
Writing and reporting by Macarena Bravo
The recent U.S. tariff increase on Costa Rican pineapples and other exports has put the country's fruit industry on alert.
Abel Cháves, president of the National Chamber of Pineapple Producers and Exporters of Costa Rica (Canapep), tells Freshfruitportal.com that the sector had been adapting well to the previous 10 percent rate, but "now that the news comes that Costa Rica has a 15 percent tariff, to a certain extent, it can infringe a little on the competitive side."
Costa Rica supplies around 87 percent of the fresh pineapple consumed in the U.S., followed by Honduras (4.5 percent), Mexico (4 percent), Ecuador (1.6 percent), and Guatemala (1.4 percent).
While this dominant position may seem secure, Cháves notes that price remains a decisive factor for buyers. “If they can get a pineapple at a better price from another supplier and not from Costa Rica, that is where we have to be very attentive,” he says, adding that the measure came as a surprise, as other countries in the region are only facing a 10 percent tariff.
Following the regulatory change, the Canapep president said the Costa Rican government has been in talks with the United States since the tariff was raised.
He said the 5 percent increase is related to Costa Rica’s positive trade balance with the United States, supported in part by exports from free trade zone companies and significant U.S. investment, according to Cháves.
Costa Rican pineapples—a coveted commodity
Despite the challenge, per capita pineapple consumption is rising in both the U.S. and Canada, offering some market opportunities.
"If we wanted to seek new markets, there is no fruit available,” he says, noting that production is already committed to existing contracts in the U.S., Europe, and Asia.
“Costa Rica will continue with the volumes it has been working with, serving those two main markets where it has a very strong position, namely the United States and Europe,” Cháves says.
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