The High Cost of Protectionism

In Costa Rica, the Contentious Administrative Court ruled in favor of the companies who accused the government of damaging the local market, after the Solis administration banned the import of Mexican avocado in 2014.

Thursday, February 6, 2020

The conflict, which remains unsolved, dates back to several years ago, when in May 2014 Costa Rican authorities decided to ban the import of avocados from Mexico, arguing the existence of the disease known as sun spot.

As a result of the ban, six avocado importing companies decided to go to court to seek a millionaire compensation, arguing that the decision caused damage to the companies, since according to the plaintiff was caused damage to the market.

Crhoy.com reports that after the case was known "... the Contentious Administrative Court condemned the State of Costa Rica for the ban on importing Mexican Hass avocado, during the administration of Luis Guillermo Solis Rivera."

You may be interested in "Crops in Central America: Main Figures in 2018"

The Chamber of Exporters and Importers of Perishable Products confirmed the resolution of the case, "... however, the amount to be paid was not defined and it was transferred to the Execution of Judgment where a new expert's report should be made."

The presence of the Mexican product in the country has fallen dramatically, since in 2014 purchases made to companies in Mexico represented 83% of the total, but since 2016 there are no reported imports of Hass avocado from the U.S. country.

Do you need detailed information on the agricultural sector? 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

Avocado: Some Lose, Some Win

September 2019

Since Costa Rica suspended the entry of Hass avocado from Mexico, countries such as Chile, Peru and Nicaragua have taken advantage of the situation to increase their exports to the Costa Rican market.

The dispute that is still unresolved dates back several years, when in May 2014 the Costa Rican authorities decided to ban the import of avocado from Mexico, arguing the existence of the disease called sunspot.

The Avocado Paradox

February 2018

Almost three years after the beginning of the restriction of avocado imports from Mexico, citing supposed phytosanitary issues, the Solis administration is now promoting exports of Costa Rican varieties of the fruit, while the local market suffers from shortages.

The Ministry of Agriculture and Livestock announced with great fanfare that it has started an advice giving program to a group of Hass avocado producers in Tarrazú, so that they can start to export the fruit to European countries.

Avocado and the High Cost of Protectionism

February 2017

In Costa Rica since the government suspended imports of Mexican avocados in May 2014, the average wholesale price of the fruit went up by 19% in 2015 and 16% last year.

Since the country stopped the imports of mexican avocados because of the alleged presence of the sunblotch plague, the price of this fruit in the local market has kept on rising. Although avocados are now imported from seven different countries, total imports have fallen 25% since then, and the average price has recorded since then an annual increase of 18%.

Costa Rica: A Year Without Mexican Avocados

May 2016

As expected after any government intervention in a market, the price consumers pay for the product has increased and a black market has been created, encouraging smuggling.

And the Costa Rican State itself risks having to pay millions in compensation for convictions for failing to comply with the procedures established by the WTO after blocking imports of avocados from Mexico.

 close (x)

Receive more news about Agriculture & Food

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

(Apr 9)
Brent Crude Oil
34.18
Coffee "C"
119.25
Gold
1,740
Silver
16.053