Movements in Regional Commercial Chess

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.

Monday, August 24, 2020

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.

Upon learning of the restrictions imposed, the Costa Rican government decided to notify the World Trade Organization (WTO) about its trade dispute with the neighboring country.
This commercial battle is being fought in a context of protectionism on the part of both countries. In the case of Panama, President Cortizo said in 2019 that during his administration he would review the trade agreements with the United States, Costa Rica and Nicaragua. On the Costa Rican side, representatives of the Ministry of Agriculture and Livestock (MAG) have spoken out against the opening of trade.

You may be interested in "Food and Beverage: Trends in Central America"

Ronald Saborio, former Costa Rican ambassador to the WTO told Elfinancierocr.com that Renato Alvarado, head of MAG "... advocates for protectionist measures to favor national farmers, the official expressed his 'strong opposition' to the opening of trade on MAG's Facebook profile on May 2. There, he stated that 'the legal frameworks for trade defense make it impossible to apply instruments for a real protection of national production."

Saborio added that "... It could be said that the borders with Panama are growing because the worst scenario for two neighboring countries in trade is that both are protectionist. Unlike years past when Costa Rica was the force in the region pushing for harmonization of rules, transparency and opening of markets, Costa Rica has become a protectionist country and Central America is not advancing as before towards economic integration."

Costa Rica has become a protectionist country and that can have an effect on the countries' attitude towards Costa Rican products, an example is the case of the Mexican avocado, says Saborío.

Do you need to understand the new business normal? Contact Us








this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423


More on this topic

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.

Costa Rica - Mexico Trade Dispute Escalates

March 2017

The Mexican government has filed a complaint with the WTO against Costa Rica over the imposition of restrictions on imports of avocados, in place since May 2014.

Mexican authorities are tired of waiting and have decided to initiate a process with the World Trade Organization in order to resolve the problem, only days after Costa Rica suggested, as a possible solution to the conflict, the implementation of a laboratory test for imports of the fruit.

Avocados: Mexico and Costa Rica will Litigate in WTO

March 2016

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.

Contradictions in Costa Rica's Foreign Trade

February 2016

The private sector is demanding homogeneity in the foreign trade strategy, since the situation today is that there is "one protectionist minister and another who works for free trade."

In the words of José Manuel Quirce, president of the Chamber of Importers of Costa Rica (Crecex), the Solis administration needs to focus on "...

 close (x)

Receive more news about Exports & imports

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Looking for Importers and distributors of furniture

Mexican manufacturer of office furniture seeks importers and distributors interested in dealing their products in Central America.
PM Steele is a 100% Mexican company, with more than 67...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Jan 15)
Brent Crude Oil
54.84
Coffee "C"
129.8
Gold
1,828
Silver
24.745