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.
In Costa Rica, the productive activity of agricultural goods destined for domestic consumption has been stayed low in recent years, despite the fact that most benefit from the protection afforded by the tariffs imposed on imports of some similar goods.
The Central Bank of Costa Rica calculates the Monthly Index of Agricultural Activity (Imagro), which includes an item called "agricultural products", which monitors the production of basic grains, cereals, pulses and other oil seeds, vegetables, roots and tubers, cane, coffee and fruit trees, which are usually intended for domestic consumption.
From July 30 to August 1, a business meeting will take place between business leaders in the region and Chilean companies from the forestry, agriculture, manufacturing and seafood sectors.
From a press release by ProChile:
The event will be held in Guatemala City, between July 30 and August 1, and will bring together about 120 buyers from all over the region.In total, there will be 60 places for Chilean entrepreneurs in the forestry and agricultural sector, industry-manufactures and seafood.
In the agricultural sector fair held days ago in San Pedro Sula, more than two thousand business appointments were made between companies from 21 countries.
The event was held on May 17 and 18, and according to its organizers among the products that registered the highest demand were oriental vegetables, fresh vegetables, fruits and special coffees.
At the agro-food fair to be held in San Pedro Sula, more than 3,000 people are expected to take part and it is thought that $50 million will be raised in 2,000 business appointments.
The Agromercados fair, which will take place on May 17 and 18 in San Pedro Sula, will include the participation of 300 exhibiting companies and another 500 visitors to the event.
While agricultural companies in Guatemala insist on signing the agreement so as not to lose out to their competitors in the region, industrialists propose to renegote the agreement from scratch.
Each sector's position is very clear.The industrialists say that if the agreement is signed under the current conditions, some subsectors will be affected, and for that reason they want, if there is openness on the part of the Korean government, to go back to the negotiating table.
Through a proposed law the Ministry of Agriculture aims to protect national production by increasing tariffs on grain imports.
According to figures from the Salvadoran Coffee Council, of every 4 hundredweight consumed in the country approximately 3 are imported.The proportion is reflected in data from the 2015-2016 cycle, a period in which about 270 thousand hundredweight was purchased abroad, which contrasts with the 100 thousand hundredweight of local product consumed.
Nine companies are responsible for about 50% of the annual exports of the livestock and agricultural sectors, which in 2016 were worth around $1.5 billion.
Figures from the information system 'Business Identifier in Costa Rica', complied by the Business Intelligence Unit at CentralAmericaData:
During the AGRITRADE event held in Guatemala, 2,000 business appointments were held between international buyers and Central American exporters, adding up to a total of $55 million in trade deals.
From a statement issued by Agexport:
More than 3 thousand people gathered together at the 18th edition of AGRITRADE, the only agricultural fair in the region, which on this occasion served as a platform for closing businesses deals worth US $55 million.
Agricultural exports totaled $4.7 billion in 2016, equivalent to 45% of the total amount exported by the country, and grew by 7% compared to 2015.
The most recent Agricultural Statistical Bulletin (№ 27), by the Ministry of Agriculture and Livestock, provides detailed information on the main indicators, area and production, prices, foreign trade, credit granted to the sector, wages, public expenditure and employment.
The government has announced that companies certified as Authorized Economic Operators will have access to faster foreign trade procedures.
Companies interested in achieving this logistical facility in the trade of their products should register voluntarily as Authorized Economic Operators (OAS).
From a statement issued by the Ministry of Agriculture:
The union projects a 3.7% growth in activity in the agricultural sector, after having achieved an estimated 3.2% increase in 2016.
From a statement issued by the Chamber of Agriculture:
As it does at the beginning of every year, the Chamber of Agriculture this morning presented its partners the results of an economic study on agricultural which includes estimates for economic growth in the agro sector in 2016 and growth expectations for 2017 located at 3.7%.
Sectors related to metal mechanics, tires, plastics, chemicals and electrics in Costa Rica have asked for their products to be excluded in the negotiation of a regional trade agreement with the Asian tiger.
The industrial and agricultural sectors are those who have objected in the process for negotiation of a free trade agreement with South Korea, arguing that some products would be hurt by the arrival of similar products from China.
Employers indicate that taking the dispute to an arbitration panel will cost many millions of dollars and will result in indemnization payments, as it is clear that trade agreements and phytosanitary standards were breached.
The announcement by the Mexican authorities to take Costa Rica to a World Trade Organization (WTO) arbitration panel because of the dispute over avocados, has caused concern among employers who are members of the Chamber of Exporters and Importers of Perishable Goods (Ceipp).
The National Rice Corporation states that adhering to the regional initiative blights what has been achieved in bilateral agreements with each country in the Alliance.
The Costa Rican agro industry has closed ranks against the country's accession to the Pacific Alliance. Both producers and the minister himself, Luis Felipe Arauz, have stated that the agreement is unfavorable for products such as rice, coffee, swine, beef cattle, ornamental flowers and strawberry growers.