G/STR/N/16/CRI  
2 August  2016 
(16-4125) Page: 1/12 
Working Party on State Trading Enterprises  Original:  Spanish  
 
  STATE TRADING  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVII:4(A)  
OF THE GATT 1994 AND PARAGRAPH 1 OF THE UNDERSTANDING  
ON THE INTERPRETATION OF ARTICLE XVII  
COSTA RICA 
The following communication, dated 2 8 July 2016, is being circulated at the request  of the 
delegation  of Costa Rica . 
 
_______________  
 
 
Pursuant to the provisions of Article XVII:4(a) of the GATT 1994 and paragraph 1 of the 
Understanding on the Interpretation of Article XVII , Costa Rica submits herewi th its notification 
concerning S tate trading enterprises . This notification includes  informatio n on the Agro-Industrial 
Sugar Cane League  (Liga Agrícola Industrial de la Caña de Azúcar , LAICA) for the 
period  2001-2015 and the Costa Rican Petroleum Refining Company (Refinadora Costarricense de  
Petróleo , RECOPE) for 2014 and 2015.  G/STR/N/16/CRI  
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  REPLIES TO THE QUESTIONNAIRE ON STATE TRADING  
COSTA RICA: LIGA AGRÍCOLA INDUSTRIAL DE LA CAÑA DE AZÚCAR (LAICA)  
1  ENUMERATION OF STATE TRADING ENTERPRISES  
The Agro -Industrial Sugar Cane League ( Liga Agrícola Industrial de la Caña de Azúcar , LAICA) is a 
non-State public entity, with its own legal personality, and subject t o public law in the exercise 
of its legal powers and duties  and to private law in the conduct of its marketing and other 
corporate activities . 
2  REASON AN D PURPOSE FOR ESTABLISHING AND MAINTAINING STATE TRADING 
ENTERPRISE  
LAICA was created under Law No.  3579 of 4 November  1965. This law was amended by the 
Organic Law on Sugar Cane Agriculture and the Sugar Industry (Law No.  7818 of 
2 September  1998) and ame ndments thereto with a view to improving LAICA's operational 
effectiveness and efficiency.  
The provisions of Law No.  7818 seek to maintain equitable relations between cane producers and 
sugar mills in order to guarantee each sector a reasonable and fair sh are, and to organize, in the 
interests of the industry's development and stability, the various factors involved in the production 
of sugar cane and the manufacturing and sale of sugar cane products . 
3  DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTE RPRISE  
LAICA has two divisions : the Corporate Division, governed by public law, and the Marketing 
Division,  governed by private law.  
The Corporate Division is managed by a Board of Directors made up of eight members, of whom 
two are from the Ministry of Ag riculture and Livestock and the Ministry of the Economy, Industry 
and Trade, three are appointed by the sugar industry and three are appointed by the cane sector.  
The Marketing Division is under the responsibility of the Marketing Board, which is made up o f 
six members.  
The activities under LAICA's responsibility include the marketing of sugar and the by -products of 
sugar cane processing . 
Under Article  9(f), LAICA is responsible for establishing and allocating the national sugar 
production  quota on an annua l basis . This quota is equivalent to the domestic sugar consumption 
recorded  in the previous season, multiplied by a fixed factor of 1.5 . 
The national sugar production quota is allocated among the mills in proportion to the reference 
quotas . The individual  production quotas include the amount and type of sugar to be produced 
within the national sugar production quota for domestic consumption, export or stockpiling.  
The export quota is divided among the various export markets in consultation with the industr y. 
If it benefits the industry, and subject to the conditions prevailing on the markets, the Board  of 
Directors may order that the sugar included in the quota be replaced by alcohol.  
Written contracts, duly registered with LAICA, are indispensable for suga r exports . Exports  must 
comply with the individual quotas granted for the corresponding sugar crop year.  
The Board of Directors determines the periods during which the sugar included in each mill's 
export quota and destined for preferential markets or mark ets that are covered by international 
agreements approved by Costa  Rica may be exported . G/STR/N/16/CRI  
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  Before authorizing sugar exports, LAICA must ensure that they are in full conformity with the 
established quota system and that they do not violate any international a greements concluded by 
Costa  Rica or affect or impede proper compliance with the quotas granted to Costa  Rica in the 
international sugar markets . 
Exporters are also required to inform LAICA of the real price of the sugar exported, and LAICA has 
the authori ty to reject any sugar export transactions that involve a sales price lower than the 
prevailing international market prices.  
In addition to registering their contracts, exporters must also ensure they are entered in the 
register kept by LAICA for that purp ose. The entry must include general data concerning the 
natural  or legal person in question . 
4  STATISTICS  
Statistical information is attached in Annex I. 
5  REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE  
There has been foreign trade, as shown in the statistical in formation . 
   
  G/STR/N/16/CRI  
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ANNEX I: LIGA AGRÍCOLA INDUSTRIA DE LA CAÑA DE AZÚCAR (LAICA)  
TABLE I  
STATE TRADING:  STATISTICAL INFORMATION , IMPORTS  
LAICA does not import sugar  
TABLE II  
STATE TRADING: STATISTICAL INFORMATION, EXPORTS  
Description of 
product(s)  Year* Total qu antity 
exported * 
(50 kg sacks ) Quantity exported by State 
trading enterprise  
(50 kg sacks ) Average 
procurement price  
(per 50 kg sack 
of sugar ) 
(₡) Average representative 
domestic sales price  
(per 50 kg sack of sugar ) 
 
(₡) Average export price  
(per 50 kg sa ck of 
sugar ) 
 
(US$)  National  
production ** 
(50 kg sacks ) 
Sugar  
(1701) 2001-2002 
2002-2003 
2003-2004 
2004-2005 
2005-2006 
2006-2007 
2007-2008 
2008-2009 
2009-2010 
2010-2011 
2011-2012 
2012-2013 
2013-2014 
2014-2015 2,700,525  
2,553,594  
3,751,155  
3,441,656  
2,897, 015 
2,691,318  
2,158,957  
1,993,269  
3,077,583  
2,150,471  
2,434,153  
3,658,551  
4,220,794  
4,311,804  2,700,525  
2,553,594  
3,751,155  
3,441,656  
2,897,015  
2,691,318  
2,158,957  
1,993,269  
3,077,583  
2,150,471  
2,434,153  
3,658,551  
4,220,794  
4,311,804  6,835.0 0 
7,300.0 0 
7,885.00 
8,750.0 0 
10,291.4 6 
11,239.8 4 
10,945.9 7 
12,008.3 9 
13,438.1 7 
13,751.6 3 
15,092.6 1 
15,325.9 7 
15,609.9 6 
15,136.6 1 10,125  
10,207  
11,387  
12,519  
13,992  
14,362  
14,831  
16,819  
17,589  
17,989  
19,392  
20,073  
21,460  
22,000  9.92 
9.68 
8.76 
11.89 
14.33 
17.06 
16.81 
18.24 
24.68 
31.15 
28.27 
23.44 
22.32 
20.16 7,072,126  
7,065,211  
8,009,080  
7,822,749  
7,398,712  
8,060,882  
7,203,408  
6,992,552  
7,549,197  
6,860,515  
8,018,300  
8,867,900  
9,319,689  
9,001,398  
Source : LAICA.  
* The sugar cane crop year runs from 1 October  to 30 September . 
** Does not include the production/exports of sugar companies with a low level of production in relation to the national total ( LAICA represents over 95 %).   
  G/STR/N/16/CRI  
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TABLE III  
STATE TRADING: STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
Description of product(s)  Year* Domestic purchases by State 
trading enterprise  
(50 kg sacks ) National production ** 
(50 kg sacks ) Domestic sales by State 
trading enterprise  
(50 kg sacks ) National 
consumption ** 
(50 kg sacks ) 
Sugar  
(1701)  2001-2002 
2002-2003 
2003-2004 
2004-2005 
2005-2006 
2006-2007 
2007-2008 
2008-2009 
2009-2010 
2010-2011 
2011-2012 
2012-2013 
2013-2014 
2014-2015 7,072,126 
7,065,211 
8,009,080 
7,822,749 
7,398,712 
8,060,882 
7,203,408 
6,992,552 
7,549,197 
6,860,515 
8,018,300 
8,867,900 
9,319,689 
9,001,398 7,072,126 
7,065,211 
8,009,080 
7,822,749 
7,398,712 
8,060,882 
7,203,408 
6,992,552 
7,549,197 
6,860,515 
8,018,300 
8,867,900 
9,319,689 
9,001,398 4,162,716 
4,120,709 
4,105,537 
4,364,030 
4,444,892 
4,683,503 
4,586,259 
4,566,742 
4,723,908 
4,735,674 
4,834,910 
4,804,036 
4,807,820 
4,646,131 4,162,716 
4,120,709 
4,105,537 
4,364,030 
4,444,892 
4,683,503 
4,586,259 
4,566,742 
4,723,908 
4,735,674 
4,834,910 
4,804,036 
4,807,820 
4,646,131 
Source : LAICA.  
* The sugar cane crop year runs from 1 October  to 30 September . 
** Does not include the production/c onsumption of sugar companies with a low level of production in relation to the national total (LAICA represents over 95 %). 
 G/STR/N/16/CRI  
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  REPLIES TO THE QUESTIONNAIRE ON STATE TRADING  
COSTA RICA: REFINADORA COSTARRICENSE DE PETRÓLEO (RECOPE)  
1  ENUMERATION OF STATE TRADI NG ENTERPRISES  
The Costa Rican Petroleum Refining Company ( Refinadora Costarricense de Petróleo S.A ., RECOPE)  
has a monopoly on the importation, refining  and wholesale distribution of crude oil, fuels derived 
from oil, asphalt and naphtha . RECOPE is  a State trading enterprise which was established as a 
joint stock company . All of its shares are held by the State . It is a legal person regulated, as far as 
its commercial activities are  concerned, by private law.  
The list of products marketed by RECOPE and the ir tariff headings is as follows : 
Products  Tariff heading  
Light crude (*)  2709.00.10.00  
Heavy crude (*)  2709.00.10.00  
Regular gasoline  2710.12.30.21  
2710.12.30.91  
Premium gasoline  2710.12.30.22  
2710.12.30.99  
Diesel fuel  2710.19.21.90  
Jet fuel  2710.12 .90.11  
Liquefied petroleum gas ( LPG) 2711.12.00.00  
Aviation gasoline (Av Gas) 2710.12.20.00  
Fuel oil  2710.19.23.00  
Heavy naphtha  2710.19.13.10  
Methyl tertiary -butyl ether (MTBE)  2909.19.00.00  
Asphalt  2713.20.00.00  
(*) Crude oils refined by the compan y. 
2  REASON AND PURPOSE FOR ESTABLISHING AND MAINTAINING STATE TRADING 
ENTERPRISE  
RECOPE has the exclusive right to manage the State monopo ly on the importation, refining and 
wholesale  distribution of crude oil and derivatives in order to satisfy domestic de mand . This right is 
derived from Law No. 5508 of 8 April 1974 and Law No. 7356 of  24 August  1993 (ratification of 
the above -mentioned State monopoly administered by RECOPE).  
The importation and marketing of fuels is a strategic national interest . State int ervention 
guarantees effective control over fuel price policies ; fuel prices in turn have a powerful impact 
on the stability  of the prices of a wide range of other goods and services, hence even a slight 
increase in  fuel prices is enough to appreciably aff ect inflation . It follows that, through the  
intermediary of  RECOPE, the State performs an important social function, namely to maintain 
macroeconomic stability . Likewise, RECOPE must take proper account of the needs relating 
to the country's energy program me. G/STR/N/16/CRI  
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  3  DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  
The monopoly held by RECOPE consists firstly in the exclusive right to import and refine all crude 
oil and oil by -products, and secondly in exclusive wholesale fuel distribution rights . In this 
connection, and in accordance with Executive Decree No. 24943 -MINAE of 1 3 January  1996, 
wholesale sales are defined, for the purposes of establishing the distribution monopoly, in terms of  
the following minimum volumes : 
Products  Minimum  sales volume  
(litres)  
Regular gasoline  1,900 
Premium gasoline  1,900 
Diesel fuel  1,900 
Kerosene  1,900 
Bunker oil  1,900 
Heavy diesel fuel  1,900 
Asphalt  1,900 
Asphaltic emulsion  1,900 
Liquefied petroleum  gas (LPG) 757 
Aviation gasoline (Av Gas) 1,900 
Jet fuel  1,900 
Heavy naphtha  1,900 
Light naphtha  1,900 
IFO 380  25,000 
IFO 180 25,000 
Article 4 of the Regulation under Law No. 6588 (law regulating the activity, objectiv es and other 
aspects of RECOPE)  provides that RECOPE may sell oil and oil derivatives abroad,  provided that 
domestic market requirements are guaranteed . In addition to the above, it should be pointed out 
that, with regard to hydrocarbon exploration and production (nat ional oilfields), Article 36 of the 
Hydrocarbons Law provides that such productio n shall be used as a matter of priority to cover 
domestic requirements and the national reserve . These requirements are determined by  the 
Executive, through the Ministry of Natural Resources, Energy and Mining, and every contractor is 
obliged to sell to th e State the amount of output required to satisfy domestic market needs . 
Accordingly and in view of the monopoly managed by RECOPE, the output of n ational oilfields must 
be sold to RECOPE on a priority basis . 
Furthermore, Article 6 of Law No. 6588 of 3 0 June 1981 provides that RECOPE may participate 
individually or jointly in tendering procedures organized by the Directorate -General of 
Hydrocarbons for the exploration and production of hydro carbons, in accordance with the 
provisions  of the Hydrocarbons Law.  
RECOPE imports, processes and markets all the crude oil and deriv atives consumed domestically 
in Costa Rica and exported (the country does not produce oil) . On the basis of its yearly 
demand  estimates, RECOPE buys crude oil and finished products on the int ernational market . 
Import  quantities are determined on the basis of local demand and th e refining and storage 
capacity of RECOPE plants . Export levels are set principally in th e light of storage capacity and the 
size of shipments.  
With regard to import pri ces and resale prices for imported products, RECOPE purchases crude oil 
and oil by-products  on the international market on the basis of strict market criteria . These are 
determined by reference to international market prices in the Caribbean and on the Uni ted States 
Gulf Coast . RECOPE does not negotiate import contracts ; these have a one -year limit and prices 
are negotiated each year in the light of price fluctuations on the international oil market . 
Article 4 of Law No. 5508 provides that, given RECOPE's s tatus as a public enterprise (carrying  
with it certain general prerogatives and privileges which it enjoys exclusively or  in conjunction with 
all other public entities) , the Ministry of Finance is authorized, on the State's behalf and under its  
responsibil ity, to give RECOPE the guarantee(s) it needs to obtain financing for its working capital, 
provided that the total amount does not exceed US$5,000,000.00 (five  million US dollars) . To this 
end, approval must be obtained from the Central Bank of  Costa  Rica and loans must be negotiated 
with leading banks and institutions.  G/STR/N/16/CRI  
- 8 - 
  Lastly, RECOPE has an obligation, which also takes the form of a right, to engage in an activity 
related to its principal, statutory and routine corporate activity when situations arise requ iring the  
efficient and effective supply of fuels in the national interest . This obligation and right is  derived 
directly from Article 5.1 of Law No. 5508, which in turn comes within the framework of  the public 
objectives assigned to RECOPE . For example, R ECOPE would be required to engage in  wholesale 
distribution activity when there is a need for an effective supply at that level and  development of 
the activity is affected by serious or unexpected problems . 
RECOPE calculates fuel prices on the basis of the  principle of service at cost, pursuant to  
Article  3(b) of Law No. 7593 (Public Services Act) ; these must be approved by the Public Services 
Regulatory Authority (ARESEP, formerly SNE, the National Electricity Service), in  accordance with 
Laws No. 6588 and  No. 7593. Export sales prices are set by RECOPE on the basis of prescribed 
formulae which take both local prices and prices on other markets into consideration ; these are 
not controlled by the ARESEP.  
In conclusion, as regards market structure, RECOPE - as mentioned earlier - has a monopoly 
on the importation and domestic distribution of petroleum products given that it was granted 
exclusive statutory powers to these ends . The situation is different with regard to exports, 
since any natural or legal person  who buys products from RECOPE can resell them for export to  
another country . However, this type of transaction is not at all common.  
4  STATISTICS  
Statistical information is attached in Annex II. 
 
5  REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE  
There has been fo reign trade, as shown in the statistical information . 
   
  G/STR/N/16/CRI  
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ANNEX II: REFINADORA COSTARRICENSE DE PETRÓLEO  
TABLE I.A  
STATE TRADING: STATISTICAL INFORMATION: IMPORTS  
2014 
Product description  Tariff heading  Total quantity 
importe d 
 
(m3) Average import pric e 
 
 
(US$/m3) Average domestic 
sales  price 
 
(US$/m3) Mark -up 
 
 
(US$/m3) National 
production  
and blendin g 
(m3) 
95 RON gasoline  2710.12.30.22  
2710.12.30.99  494,019 707 836 --- - 
91 RON gasoline  2710.12.30.21  
2710.12.30.91  587,048 671 804 --- - 
Diesel fuel  2710.19.21.90  1,151,446 737 854 --- - 
Fuel o il 3% 2710.19.22.00  137,975 548 606 --- - 
Fuel oil 1%  190,166 621 688 --- - 
Aviation gasoline (AvGas)  2710.12.20.00  1,402 1,277 1,446 --- - 
Jet fuel 2710.12.90.11  224,353 746 857 --- - 
Asphalt  2713.20.00.00  65,479 567 549 --- - 
LPG 2711.12.00.00  248,755 415 341 --- - 
Methyl tertiary -butyl 
ether (MTBE)  2909.19.00.00  11,126 897 n/a --- - 
Source s: 
RECOPE, Division for International Trade in Fuel . 
Columns 5 and 6 : RECOPE, Customer Service Department . 
Notes : 
"-" indicates zero . 
"---" indicates not applicable . 
Sales price refers to the RECOPE Group price . 
n/a: Sales data are unavailable  (MTBE is used as oxygenate additive in gasoline ).   
  G/STR/N/16/CRI  
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TABLE I.B  
STATE TRADING: STATISTICAL INFORMATION: IMPORTS  
2015 
Product descripti on Tariff heading  Total quantity 
importe d 
 
(m3) Average import  
price 
 
(US$/m3) Average domestic sales 
price 
 
(US$/m3) Mark -up 
 
 
(US$/m3) National 
production  
and blendin g 
(m3) 
95 RON g asoline  2710.12.30.22  
2710.12.30.99  526,215 459 554 --- - 
91 RON g asoline 2710.12.30.21  
2710.12.30.91  600,908 423 520 --- - 
Diesel fuel  2710.19.21.90  1,168,069 421 530 --- - 
Fuel oil 3% 2710.19.22.00  119,297 271 327 --- - 
Fuel o il 1%  15,514 378 433 --- - 
Aviation gasoline 
(AvGas)  2710.12.20.00  1,413 976 1,098 --- - 
Jet fuel 2710.12.90.11  231,275 424 512 --- - 
Asphalt  2713.20.00.00  79,096 350 361 --- - 
LPG 2711.12.00.00  259,190 214 155 --- - 
Methyl tertiary -butyl 
ether (MTBE)  2909.19.00.00  10,165 612 n/a --- - 
Source s: 
RECOPE, Division for International Trade in Fue l. 
Columns 5 and 6 : RECOPE, Customer Service Department . 
Notes : 
"-" indicates zero . 
"---" indicates not applicable . 
Sales price refers to the RECOPE Group price . 
n/a: Sales data are unavailable  (MTBE is used as oxygenate additive in gasoline ).   
  G/STR/N/16/CRI  
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TABLE II  
STATE TRADING: STATISTICAL INFORMATION, EXPORTS  
RECOPE made  no exports in 2014 or 2015.  
TABLE III.A  
STATE TRADING: STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
2014 
Product description  Tariff heading  Domestic purchases  
by RECOP E 
(m3) National production  
and blending  
(m3) Domestic sales  
by RECOP E 
(m3) National  
consumptio n 
(m3) 
Regular gasoline  2710.12.30.21  
2710.12.30.91  - - 598,014 598,014 
Premium gasoline  2710.12.30.22  
2710.12.30.99  - - 476,562 476,562 
Diesel fuel  2710.19.21.90  - - 1,080,846 1,080,846 
Kerosene  2710.19.11.00  - - 7,574 7,574 
Bunker oil  2710.19.22.00  - - 107,447 107,447 
Jet A-1 2710.12.90.11  - - 201,262 201,262 
Aviation gasoline (AvGas)  2710.12.20.00  - - 1,487 1,487 
Heavy naphtha  2710.19.13.10  - - 391 391 
IFO 380  2710.19.22.00  - - 856 856 
LPG 2711.12.00.00  - - 253,711 253,711 
Asphalt  2713.20.00.00  - - 64,555 64,555 
Source : RECOPE, Sales Department . 
Notes : "-" indicates zero .   
  G/STR/N/16/CRI  
- 12 - 
 
TABLE III.B  
STATE TRADING: STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
2015 
Product description  Tariff he ading  Domestic purchases  
by RECOP E 
(m3) National production  
and blending  
(m3) Domestic sales  
by RECOP E 
(m3) National  
consumptio n 
(m3) 
Regular gasoline  2710.12.30.21  
2710.12.30.91  - - 616,620 616,620 
Premium gasoline  2710.12.30.22  
2710.12.30.99  - - 547,206 547,206 
Diesel fuel  2710.19.21.90  - - 1,138,164 1,138,164 
Kerosene  2710.19.11.00  - - 8,805 8,805 
Bunker oil  2710.19.22.00  - - 107,831 107,831 
Jet A-1 2710.12.90.11  - - 219,796 219,796 
Aviation gasoline (AvGas)  2710.12.20.00  - - 1,481 1,481 
Heavy naphtha  2710.19.13.10  - - 311 311 
IFO 380  2710.19.22.00  - - 807 807 
LPG 2711.12.00.00  - - 265,328 265,328 
Asphalt  2713.20.00.00  - - 83,621 83,621 
Source : RECOPE, Sales Department . 
Notes : "-" Indicates zero . 
 
__________