Home Business Change In Regulations Would Cut Cement Prices in Half

Change In Regulations Would Cut Cement Prices in Half

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QCOSTARICA – Reducing the price of imported cement in Costa Rica between 25% and 50% is the goal of Movimiento Liberatio (ML) legislator, Otto Guevara.

Currently a 50kg (110lb) bag of cement costs ¢5.513 colones (US$10.21 at the current dollar exchange rate). But, with a change in regulations, the price can drop to ¢2.756.

Guevara, the leader of the ML and former presidential candidate, says he has sent the request to the ministro de Economía, Industria y Comercio (Minister of Economy, Industry and Trade), Welmer Ramos, to review  the “Reglamento Técnico RTCR 383:2004” – the technical regulations with respect to cement.

The legislator says that Articles 8.1 and 9.1.6, in place since 2004, act as barriers for the packaging and marketing of cement in the country, mainly because the expensive product favours importers operating in the country.

The articles provide that 50kg cement bags must be sold within 45 days of packaging, making it very difficult for other companies to enter the local maret, for the risk of losing unsold product.

Guevara says that if two articles are deleted it would lead to the import of cheaper cement and more competition for the two foreign companies currently handling all cement products in the country.