The blockade to the entrance of products of animal origin coming from Costa Rica to the Panamanian market, has derived in a commercial conflict in which both countries have their share of responsibility, since the authorities of both nations advocate for protectionist measures.
On July 10, 2020, Panama informed the National Animal Health Service (SENASA), an agency of the Ministry of Agriculture and Livestock of Costa Rica (MAG), about the decision not to extend the authorization for export to a list of Costa Rican establishments previously authorized and that have been commercializing in the Panamanian market for many years.
After the Panamanian government agreed to ban the entry of animal products from Costa Rica, Panamanian businessmen supported the measure and asked to discuss the export and import requirements, since they claim that their agricultural products are prevented from accessing the Costa Rican market.
The trade dispute began when on July 10 Panama informed the National Animal Health Service (SENASA) of the Costa Rican Ministry of Agriculture and Livestock (MAG) of the decision not to extend export authorization to a list of previously authorized Costa Rican establishments that have been exporting to Panama for many years.
In Costa Rica, the General Directorate of Customs announced that companies that have tax or employers debts will not be able to complete the procedures and formalities needed to export or import goods or services.
Resolution DGA-030-2019 of the Directorate General of Customs (DGA), issued on October 22 of this year, states that "... it is communicated that the Information Technology Information System for Customs Control will verify compliance with these requirements and if there are outstanding debts will prevent continuing with the import or export procedure requested by electronic transmission."
Authorities from both countries met to review pending procedures related to the export and import of products such as tomatoes, beef, chicken, fish and sausages.
The bilateral agenda also addressed the issues of international cargo transport, smuggling at border crossings, streamlining procedures and efficiency in processes, as well as the provision of facilities and measures restricting the international transport of land cargo, reported the government of Panama.
The irreconcilable positions of both countries over phytosanitary measures for the Mexican product form the backdrop to a possible arbitration panel with the world trade body.
Since Costa Rica stopped issuing permits for the entry of Hass avocados from Mexico, for phytosanitary protectionism reasons, (the country argues they are protecting themselves from the disease known as sunspot), neither country has managed to convince the other through technical and political methods to reopen the market.
Costa Rica is not allowing the entry of potatoes from the U.S. and customs in Miami have increased controls on ornamental plants coming from Costa Rica.
It has been assumed that the increased controls on ornamental plants occurred after the State Phytosanitary Service (SFE) of Costa Rica suspended the issuance of phytosanitary requirement forms for importing U.S. potatoes.
The willingness to stop exports of red beans between mid-2010 and September 2011, resulted in Nicaragua earning bad reputation as a trading partner.
According to Enrique Zamora, president of the Association of Producers and Exporters of Nicaragua (APEN), in 2010, "the government was warned that what it was doing was wrong", mainly because of the cost invested in turning it (the beans) from a subsistence product in 1996 into a product which generated $80 million in exports.
Panama, Honduras, Guatemala and Mexico continue to hinder the importation of beef from Nicaragua.
The President of Canicarne, Onel Perez, said that since January 2010, Nicaragua has not exported beef to Panama under the agreed quota within the Free Trade Agreement, reported Elnuevodiario.com.ni.
"In this country, the problem is that the meat is subject to unique public auction requiring the exporter to pay taxes of 21%, according to a specific list of cuts that are not suitable for export, there are more than 50 cuts, six items for each tariff, which hinders the operation, is expensive, and, contrary to what you may believe, tends to concentrate the use of the full amount of the quota in a single buyer and a single seller," said the Canicarne president.
Health authorities now require any exported rambutans to obtain a certificate stating that they are free of the pests Coccus Moestus and Pseudococcus Landoi.
The National Service of Agrarian Health (Senasa) of Peru has imposed the phytosanitary requirements on imports of any rambutan fruit from Costa Rica, to ensure an adequate level of protection and minimize the risks of entry of quarantine pests into the Andean nation.
Nicaragua's government is blaming beef and sausages exporters for the blocks on their products, for not having obtained the required export licenses.
"The Minister of Industry and Commerce, Orlando Solorzano, blamed Nicaraguan businesses for the obstacles they face at a regional level in exporting their meat and sausages. The official said the exporters have failed to meet various requirements in the process for getting export licenses", reported Laprensa.com.ni.
As with the case of beef with other countries, Honduras has placed phytosanitary restrictions on 20,000 pounds of sausage from Nicaragua, which is being disputed by exporter Delmor S.A.
The general manager of Delmor S.A., Zacarias Mondragon confirmed that his company stopped exporting to the Honduran market because of the imposition of phytosanitary restrictions a year and a half ago by the authorities of that country.
The entry of 40,000 pounds of Nicaraguan meat has been prevented for alleged phytosanitary reasons, an argument which has been rejected by exporters.
Executives from Nicaraguan slaughterhouses have complained that Guatemala has had phytosanitary restrictions in place for two years on beef imports, arguing that this has caused huge losses, both in terms of money and business connections.
Restrictions by Honduras, Guatemala and Panama on Nicaraguan beef exports have caused a reduction in revenues of about $60 million for exporters, who are demanding reciprocal measures to those countries.
Since 2010, Nicaraguan farmers have failed to collect about $60 million in profit due to the restrictions imposed by the authorities of Honduras, Panama and Guatemala on importing meat from Nicaragua, said industry leaders in the El Nuevo Diario.
Nicaragua has lifted the measures that kept its border closed to the Honduran citrus fruit since early September.
Leopoldo Duran, president of the National Federation of Farmers and Ranchers of Honduras, reported the resolution, adding that fortunately there were no large losses by producers during the border’s closure.
"Duran said that monthly exports of the fruit to Nicaragua amount to five million lempiras ($ 270 thousand), especially from the Sonaguera sector, Colon, where the biggest processing plant in the country is located.
Failure to do so will result in a lawsuit being filed against the Nicaraguan government for creating trade barriers.
The Honduran government on Monday has given a deadline of September 19 for the situation to be reversed otherwise they will proceed with a Chancery suit or through the Ministry of Industry and Commerce, said the director of the National Service of Agricultural Health (SENASA ), Heriberto Amador.