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.
Increasing the percentage of deliveries and optimizing the use of fodder will help raise productivity and improve conditions for competing with other export markets.
A pilot plan which is being promoted by the Livestock Corporation (CORFOGA) and which is already being implemented in 93 producing farms aims to improve productivity in cattle breeding and milk in the country.
Pineapple exporters claim to have lost $2.3 million since the authorities started making additional inspections of containers at ports of departure.
Arguing that in April an increased presence of insects was detected in containers of pineapples exported to the United States, the State Phytosanitary Service (SFE) has tightened control measures, which are no longer limited to inspections on farms and packing plants, but also include an extra inspection at ports of departure.
Drought in Southeast Asia is creating opportunities to export more palm oil to Europe, where the entry of the product is duty free because of the Association Agreement with Central America.
The fall of up to 45% in the production of palm oil in Southeast Asia (the world's leading producer) due to El Niño has opened up an opportunity for Central American countries to export the product to markets such as Europe.
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 "... harmonizing approaches in foreign trade" in order to avoid having one agriculture ministry imposing nontariff barriers to protect local production, and at the other extreme another minister of foreign trade promoting free trade.
The country has been criticized for violating trade agreements and placing phytosanitary barriers on trade using political-ideological and non-technical justifications.
EDITORIAL
Having entrusted the management of the Ministries of Economy and Commerce and Agriculture and Livestock -and linked institutions - to a group of officials who believe in their own last century protectionist model - and going against openness to the world practiced by the country in the last 20 years, and who were also openly opposing the Central American Free trade Agreement (CAFTA) with the United States, the Solis administration has made sure that there will be recurrent conflicts related in trade of agro-industrial products to the Northern nation, Costa Rica's main trading partner.
Within the Economic Council of Government Luis Guillermo Solís' ministers are divided with some favoring openness to international trade, and others wanting to protect vulnerable sectors.
The Ministry of Foreign Trade, which is in favor of accession, argues that there are free trade agreements with member countries of the Alliance, meaning that they would only be strengthening commercial ties.
On January 20 a sanitary protocol was ratified which enables the export of shrimp caught in Costa Rican waters to China.
From a statement issued by the Ministry of Agriculture and Livestock (MAG):
During the visit by the President of the Republic, Luis Guillermo Solis Rivera, to China, ratification was given to signing of a sanitation protocol for the export of prawns, a prerequisite for the official opening up of the Chinese market for prawns caught in Costa Rican waters.
Four Costa Rican companies now meet the health requirements and have been given authorization to start exporting.
From a press statement issued by the Ministry of Agriculture and Livestock of Costa Rica (MAG):
In accordance with a letter from the Ministry of Agriculture, Forestry and Fisheries of Japan, Costa Rica has been given authorization to export pork and related products to that country through the form of an animal health certificate.
A 42% increase in the production of pineapples in the last four years is due to higher yields, not by an increase in planted areas.
The strong increase in the production of the product in the period 2009-2013 can be attributed to an improvement in yields on already cultivated land and not to an increase in the amount of areas planted, explain industry representatives. In the same period exports increased by 44%.
The Japanese market for pork, organ meats, sausages and pork derivatives coming from Costa Rica has reopened.
The next step in the process is identifying companies interested in exporting pork products to the Asian nation.
From a press release issued by the Ministry of Agriculture and Livestock:
"After a process that began in 2012 under the framework of the objectives of the National Swine Commission, the Ministry of Agriculture, Forestry and Fisheries of Japan recently announced to the authorities of the National Animal Health Service (SENASA) at the Ministry of Agriculture, that this country recognizes the status of Costa Rica as a country free of swine fever and has reopened its market not only pork, but also offal and other derivatives as well as pork sausages."
Agencies in charge of the certification of organic products for export must meet new regulations set by the European Union.
From a press release by the State Phytosanitary Service:
In 2014 new regulations will govern EU organic products.
The MAG will support certification agencies and producers in complying with new requirements.
From January 2014 Certifying Agencies for organic products and the Phytosanitary Service (SFE by its initials in Spanish) at the Ministry of Agriculture will have to comply with the new rules established by the European Union with the objective of ensuring in more detail the implementation of the requirements that define a product as an organic vegetable.
In the last year 11 rice industries invested $14 million to deal with changes in the international market and local pricing.
Nacion.com reports: "These investments are being made in the new context that is expected with the liberalization of grain prices from 1 March 2014 and the start, two years later, of the gradual reduction of 35% tariffs on imports from the U.S.".
The international crisis and exchange rate fluctuations caused the sector to export 7% less during the first seven months of 2013 than in the same period of 2012.
The Costa Rican agricultural sector is not experiencing good times. Nacion.com reports: "According to the monthly index of economic activity (MIEA), the agricultural sector has registered a decline since August 2012, when it grew by 4.46%.
From 1 January 2015 20% of their agricultural imports must be produced sustainably, a percentage which will reach 100% in 2020.
Giovanna Valverde, Director of International Affairs of the Ministry of Agriculture and Livestock of Costa Rica (MAG), said the move is a big challenge for domestic farmers, but especially for pineapple and melon growers, and producers of ornamental plants and foliage.