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 Panama, the government established the maximum gross profit margin in the entire commercialization chain, for different personal hygiene, cleaning and consumption items, which are of primary need.
According to Decree 152 dated May 13, the measure decreed is with the aim of mitigating the outbreak of covid-19 and to give the general population access to most products.
Arguing that imports may be close to reaching the level of automatic activation of the special safeguard mechanism, the Panamanian government ordered an investigation into pork purchases made from companies in the United States.
The General Directorate of Trade Defence has analyzed the information available through periodic reports requested from the National Customs Authority on imports of the goods described above and has submitted a report warning that such imports may be close to reaching the level of automatic activation of the special agricultural safeguard mechanism, explains the resolution of the Ministry of Trade and Industry (MICI).
At the beginning of the Cortizo administration the quantity of products with controlled prices in Panama was reduced from 22 to 14, and from January 1, 2020 the list will decrease to 7.
The gradual elimination of price control has been one of the actions that has strengthened the Cortizo administration, because since July 7, eggs, macaroni, beans, lentils, chop, marrow, breast and tuna, ceased to be part of the list of products, whose prices are controlled.
The Panamanian National Assembly ratified the Association Agreement between the United Kingdom of Great Britain and Northern Ireland and Central America, which aims to safeguard trade relations for the Brexit process.
Project 154, which was approved on October 28, essentially preserves the rights acquired by both parties and does not change the set of rights and obligations acquired by the Republic of Panama.
Weeks after the Cortizo government decided to interrupt the negotiations of the trade agreement, it announced that in 2020 the issue of the FTA with the Asian giant could begin to be seen again.
The issue has generated expectation, because after having advanced to the fifth round of negotiations during the Varela administration, with the arrival of Laurentino Cortizo in charge, the process of signing the agreement was completely interrupted.
In Panama, the Cortizo administration has announced that it does not plan to sign new trade agreements, as what the country currently needs is to "strengthen its exporters.”
Representatives of the Ministry of Commerce and Industries informed that until the exportable offer of Panama is strengthened, they will begin to advance in the negotiation of commercial treaties with other countries.
Although there have already been five rounds of negotiations to sign a free trade agreement, the Cortizo administration announced that they decided to restrict themselves to signing a partial-scope agreement.
Representatives of the Ministry of Commerce and Industries (Mici) explained that they want the scope of the trade agreement with the Asian giant to be limited to the exchange of agricultural and industrial goods, which is known as a partial scope Free Trade Agreement (FTA).
After the law banning the use of polyethylene bags in supermarkets, grocery stores, pharmacies and other retail stores came into force in the country on July 20, the businessmen say the restriction should be applied gradually.
18 months after the new law was published in the Gaceta Oficial, it entered into force for retail establishments, but, in the case of wholesalers, the use of free polyethylene bags will be implemented from January 20, 2020, considering that the norm establishes a 24-month period from the enactment of the law. See full publication in Gaceta Oficial.
After completing all the requirements, Panamanian authorities announced that next June 21 will leave the first container with 200 tons of beef bound for the Asian country.
At the end of March, it was reported that the meat product plants that received the endorsement of the General Administration of Customs of China to start marketing their products were Matadero de Chiriquí, S.A. (Machisa), Unión Ganadera, S.A. (Ungasa) and Macello.
For businessmen in the sector in Panama, the rules and regulations that currently apply to the import of cement into the country have lagged behind.
According to the Chamber of Construction (Capac), cement is not the only material that should be regulated, since the rest of the main construction inputs that are marketed and used in industry should also be regulated.
In Panama, the National Assembly authorized the transfer of $11 million to finance the rehabilitation of tourism projects in Isla Colón, the Antón Valley and the construction of the Boquete convention center.
Regarding the administrative management to provide the funds, the National Assembly reported that the Budget Committee was responsible for approving two transfers of items from the Ministry of Commerce and Industries to the Panama Tourism Authority.
The Panamanian government's decision to raise the tariff on meat imported from Nicaragua from 3% to 30% to allow local producers to compete has so far shown no clear results.
In September 2018, the Panamanian government decided to establish barriers to the entry of Nicaraguan beef by raising the import tariff from 3% to 30%. This has not had the expected effects, as the prices paid to local producers have not risen.
The measure initially defined as transitory, became permanent in Panama, since the beginning of the Varela administration has been extended nine times, leaving negative balances in some sectors.
Juan Carlos Varela will close his administration with a new extension of the controversial measure that regulates the prices of 22 products of the basic basket, affecting several sectors, including meat producers, who report economic losses.
In Panama, the agribusiness sector and the government agreed to review all legal details to assess an increase from 15% to 30% in the import tariff for mozzarella cheeses.
This week, the country's dairy agribusiness sector met with President Juan Carlos Varela and representatives of the Ministries of Agricultural Development and Trade and Industries.