Costa Rica: Cost of Litigation with Mexico Over Avocados

Employers indicate that taking the dispute to an arbitration panel will cost many millions of dollars and will result in indemnization payments, as it is clear that trade agreements and phytosanitary standards were breached.

Tuesday, March 15, 2016

The announcement by the Mexican authorities to take Costa Rica to a World Trade Organization (WTO) arbitration panel because of the dispute over avocados, has caused concern among employers who are members of the Chamber of Exporters and Importers of Perishable Goods (Ceipp).

See also: "Avocados: Mexico and Costa Rica will Litigate in WTO"

An excerpt from the letter sent to President Solis and disseminated by Crhoy.com states that "... we consider it appropriate to request that the President use his offices to prevent Mexican authorities from initiating a dispute process against Costa Rica with the WTO, which as you knows first hand, involves an expenditure of more than 500,000 euros ($558,000), plus the eventual claim for compensation by producers affected by the measure. "

See also: "Costa Rica: The Avocado Debate"

"... From the point of view of employers, the measure adopted by Costa Rica violates several trade agreements and phytosanitary regulations signed by the country, which puts us in a position which is very difficult to defend and also threatens to generate a high economic burden at a time when we are facing an adverse fiscal situation."

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From a statement issued by the Ministry of Economy of Guatemala:

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