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

Guatemalan journalist Zamora says his country’s justice system is a criminal structure

Prominent Guatemalan journalist José Rubén Zamora says the justice system in his country operates like a criminal structure, and he said he was prepared...

U.S. President Trump Suggests Friendly Takeover of Cuba

President Donald Trump said Friday the United States could carry out a “friendly takeover” of Cuba, citing direct talks with the island’s government as...

The United States seized a tanker that had escaped the Caribbean blockade

The United States intercepted in the Indian Ocean a third tanker accused of violating the blockade against sanctioned vessels in the Caribbean, after it...

Cuban Border Guards Kill Four on Florida Speedboat in Maritime Clash

Cuban border guards killed four people and wounded six others aboard a Florida-registered speedboat that entered the island's territorial waters, according to an announcement...

Panama President Shrugs Off China Retaliation Threats After Canal Port Takeover

Panama President José Raúl Mulino on Thursday brushed aside the possibility of Chinese reprisals after his government moved to take control of two ports...

Heavy Military Security Surrounds El Mencho Burial in Mexico

Soldiers, National Guard troops and police formed rings of security around a funeral home and cemetery as the body of alleged Jalisco New Generation...
Avatar
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica