Entrepreneurs Support Trade Dispute

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.

Monday, August 10, 2020

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.

Following the restrictions imposed by Panama, the Costa Rican authorities decided to notify the situation of the trade dispute to the World Trade Organization.

In this scenario of commercial disputes, the National Council of Private Enterprise of Panama (CoNEP), has expressed itself in favor of the measures taken by the Panamanian authorities and has taken advantage of the moment to make some requests.

In a statement, the business association explained that there is an urgent need to review the current trade agreement, so that Panama can take further action to set the right course for sustainable development of the agricultural sector and to achieve trade expansion in the region.

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Laestrella.com.pa reviews that "... the CoNEP reiterated its support to the efforts of the Government to achieve a commercial balance among the countries of the region and called for the prompt installation of a Political Table, Panama - Costa Rica, where the guidelines for international commercial negotiations are established, the requirements and restrictions on exports and imports of the different items are discussed, since for years the national producers have made countless efforts to enter the Costa Rican market with a great variety of agricultural products, without obtaining substantial results in their fair right to commercial exchange."

The article adds that "... It is an issue of non-tariff barriers, which together with other conditioning elements, plant certification, technical interpretation of sanitary protocols, access restrictions, certification visits without issuing plant certification, among others, entail significant economic consequences for national trade', expressed the CoNEP."

An official document dated August 8, 2020 from Panama's Ministry of Commerce and Industry (MICI), details that "... Historically, more than 40 Costa Rican production plants have continued to export to the Panamanian market, demonstrating the openness of trade that Panama has always practiced in relation to this partner and neighboring country.

Panama has not received the same access from Costa Rica and despite many efforts, it has not been able to renew its exports of several million dollars in beef to Costa Rica, from 5 plants that were disqualified in 2015, nor has it been able to get approval from the Costa Rican authorities for a small group of Panamanian processing plants (finished chicken products, codfish, seafood and dairy products) that are trying to enter that market
".

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Trade: Costa Rica and Panama Begin Dialogue

February 2021

In order to overcome the trade conflict resulting from the blocking of the entry of animal products from Costa Rica into the Panamanian market, both nations have started a dialogue.

The trade conflict between the two countries began in July 2020, when Panama informed the National Animal Health Service (SENASA), an agency 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 trading in the Panamanian market for many years.

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As a result of the blockade to the entrance to the Panamanian market of products of animal origin coming from Costa Rica, on January 11 the Costa Rican government requested to the WTO the application of the mechanism of consultation with Panama.

The trade conflict began in July 2020, when Panama informed the National Animal Health Service (SENASA), an agency of the Costa Rican Ministry of Agriculture and Livestock (MAG), of the decision not to extend the export authorization to a list of Costa Rican establishments previously authorized and which have been trading in the Panamanian market for many years.

More Technical Solutions, Less Policy

September 2020

Once Panama blocked the entry of animal products from Costa Rica, discussions at the technical level progressed, but when the issue was brought to the political arena, the process to solve the trade conflict stalled.

In early July of this year, Panama informed the National Animal Health Service (SENASA), an agency of the Costa Rican Ministry of Agriculture and Livestock (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.

Trade Dispute Between Panama and Costa Rica

August 2020

Following Panama's blockade of the entry of animal products from Costa Rica, arguing that the permits have expired, Costa Rican authorities decided to notify the World Trade Organization of the dispute.

On July 10, Panama informed the National Animal Health Service (SENASA) of Costa Rica's Ministry of Agriculture and Livestock (MAG) of the decision not to extend export permits to a list of previously authorized Costa Rican establishments that have been exporting to Panama for many years.

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