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.
If Costa Rican businessmen still had doubts about the direction to be taken by the new Alvarado administration in agricultural matters, the affirmations made by the newly-appointed minister of Agriculture and Livestock have managed to dissipate them completely.
EDITORIAL
"...'The position that I bring to the ministry is to protect national production, with all the legal and technical instruments provided to us by treaty frameworks ...We are going to be very jealous with entries, no matter what they are, with meats, with potatoes.There has been a lot of laxity, non compliance with the regulations," said Renato Alvarado, the ministry's new leader, to Nacion.com.
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.
Exporters of ornamental plants are waiting for government approval in order to be part of the delegation which will request the reopening of the European market, which has been closed since May 2015.
The Chamber of Producers and Exporters of Plant Products (Caprodex) argues that the request was made on July 8 to the Ministry of Agriculture and Livestock (MAG) and there has not yet been a response to the request to attend on September 22 the meeting to be held in Brussels to demand the reopening of the market for ornamental plants from Costa Rica.In May2015the European Union banned ornamental coffee plants from Costa Rica and Hondurasin order to prevent the entry of the bacteria Xylella fastidiosa.
The delay in phytosanitation studies by the Ministry of Agriculture has stalled the process for starting imports of avocados from the Dominican Republic.
Even though it has been a month since the Chamber of Exporters and Importers of Perishable Goods asked to be able to start the process of importing avocados from the Caribbean island, a delay in carrying out a study on the part of the State Phytosanitary Service (SFE) has prevented this from happening.
In order to take advantage of the growing global demand for cocoa and fine chocolates, in the last three years the number of hectares dedicated to the cultivation of cocoa in the country went from 3169 to 4000.
Supporting efforts to obtain a high-quality grain, local producers are increasing acreage and diversifying final products, in order to export cocoa not only in its whole grain or chopped format, but also products such as chocolate, cocoa butter, liqueurs and other things.
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.
The decree which states that the domestic grain is insufficient to supply the local market, enables industries to import with zero tariffs in quotas which are proportional to local purchases.
Following complaints by agribusinesses about the delay in the declaration of a shortage, the government has finally signed the decree that authorizes the purchase of grain from abroad, tax-free.
According to the food industry chamber, the import ban on certain food products "does not conform to principles of reasonableness, technical criteria and political neutrality."
In a new attempt to reason with the authorities of the Ministry of Agriculture and the State Phytosanitary Service, the Costa Rican Chamber of the Food Industry (Cacia) asked President Solis to intervene to lift obstacles that have been imposed on the import of raw materials such as "... honey, potatoes, some varieties of spices, pork, fish, green bananas and jalapenos ..." as they are having problems entering the country.
The US Embassy has asked whether the government will support a moratorium of up to 15 years on the cultivation of genetically modified organisms.
In circumstances where the Ministry of Agriculture and Livestock of Costa Rica (MAG) is taking non-tariff measures to restrict imports that compete with local production, the Office of Trade Representative of the United States Embassy in Costa Rica, sent a letter to Minister of Foreign Trade, expressing concern about the issue, specifically pointing to the Minister of Agriculture as a driver of the moratorium.
Both countries have been granted import quotas for rice and wine as compensation for the increase from 35% to 62% in the tariff for milled rice.
Authorities at the Ministry of Agriculture indicated that Uruguay has been granted a quota 11,080 tons per year, between milled grain, unhusked and parboiled rice. Purchases made outside the established quota will incur the 62% tax.
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.