No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveHigh Court Strikes Down Part of Guaro Monopoly

High Court Strikes Down Part of Guaro Monopoly

With Executive Branch plans to lift state monopolies on telecommunications, insurance and fuel already generating discussion this week (see separate story), the Judicial Branch ruled against a monopoly on another product: guaro.

Before the decision from the Constitutional Chamber of the Supreme Court (Sala IV), the National Liquor Factory (FANAL) had the exclusive right to produce, market and sell the liquor, 30% alcohol by volume, in Costa Rica. The factory’s Cacique brand is among its top sellers.

Sala IV justices voted June 14 to uphold FANAL’s exclusive right to produce guaro, but allow other companies to import and sell the liquor, according to the daily La Nación.

A suit filed in 2004 by Marvin Arce, the representative in Costa Rica for Salavadoran guaro Cañal, prompted the justices’ decision, the daily reported. The two justices who dissented, of a total of nine, wrote in their opinion that the Legislative Assembly, not the Sala IV, is the place to decide the future of the FANAL monopoly.

President Oscar Arias, asked about the ruling Monday, said that he hasn’t mentioned the Liquor Factory in his criticisms of monopolies because it’s “less important,” but that the Sala IV ruling “would benefit all of us who drink alcohol if there were competition, because we wouldn’t have to drink only Cacique.” (He added that Cacique is, nonetheless, “very good.”)

He did not comment on the possibility that FANAL would be closed, saying he needed to speak with Production Minister Alfredo Volio; however, Volio told the daily Al Día he thinks “the state should be doing more important things” than producing and selling liquor.

Carlos Villalobos, manager of FANAL, told La Nación that the production of illegal liquor, without Public Health Ministry approval and without paying taxes, has diminished the factory’s share of the market; FANAL sold 840,000 cases of Cacique in 1999 and only 490,000 last year.

 

Trending Now

On Father’s Day Costa Rica Quietly Rethinks What It Means to Be a Dad

Costa Rica celebrates Father's Day today and anyone who spent August here will notice the difference immediately: the third Sunday of June arrives with...

Costa Rica Confirms Bird-Flu Case in Wild Marine Bird at Manuel Antonio

Costa Rican animal health officials confirmed a new case of highly pathogenic avian influenza H5 in a wild marine bird found in Manuel Antonio,...

Costa Rica President Evacuated After Loud Blast During Crucitas Visit

President Laura Fernández was rushed out of the Crucitas mining area Friday morning after a loud blast interrupted her official visit to the Finca...

Costa Rica President Floats Referendum on Crucitas Gold Mining

President Laura Fernández said the government could take the Crucitas mining issue to a national referendum if a bill to allow regulated open-pit gold...

Panama to Adopt Bukele-Style Prison Measures After La Joyita Escape

Panama will adopt the kind of "hardline" prison reforms of its Latin American neighbors to address failures of its penal system following a mass...

Venezuela Earthquake Death Toll Tops 160 as Costa Rica Pledges Aid

The death toll from the twin earthquakes that struck Venezuela yesterday climbed to at least 164 by this morning, with nearly 1,000 people injured,...

Ex-Costa Rica Coach Alfaro Leads Paraguay to Crucial World Cup Win

Paraguay’s World Cup campaign came back to life Friday night under coach Costa Rican fans know all too well. Gustavo Alfaro, the Argentine manager...

Cuba Weighs Major Economic Reforms After Raúl Castro Gives Approval

Former Cuban President Raúl Castro gave his approval Wednesday to a package of economic reforms debated by top representatives of the Communist Party, Cuba’s...

Powerful Earthquake Topples Buildings in Venezuela

A powerful earthquake struck north-central Venezuela this afternoon, collapsing buildings in the capital, Caracas, knocking out power in parts of the city and prompting...
Avatar
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel