Twelve months after Central America began a health and economic crisis triggered by the covid-19 outbreak, Guatemala was the fastest recovering economy and Panamanian economic activity is the slowest to return to pre-pandemic levels.
In March 2020, the first cases of covid-19 began to be detected in the countries of the region. The highly contagious disease, which at that time had already claimed the lives of thousands of people around the world, forced Central American governments to establish mobility restrictions.
Although the end of the year holidays is a threat to Central America for a second wave of covid-19 infections, it is expected that total closures will not be decreed since there are currently effective health control options, and less costly for the economy.
When the first cases of covid-19 were reported in the region in March 2020, most governments decided to paralyze a large part of productive activities and decree home quarantines.
Following the protests reported on August 29, Costa Rican authorities decided that as of September 9, units with foreign plates transiting from border to border in the country will be monitored by GPS and will no longer be given convoy escort.
As a form of protest, drivers of cargo vehicles kept the traffic blocked at Paso Canoas, a border post between Panama and Costa Rica.
In response to the restrictions applied to Costa Rican pilots, who are prevented from leaving with cargo from Panama, since July 14 Costa Rica has not allowed trucks with Panamanian plates to leave carrying goods.
Because of the spread of covid-19, Costa Rica was the first country to impose restrictions on cargo transport units from other countries in the region. Faced with this decision taken unilaterally, governments applied reciprocal measures.
Arguing that it is not allowed to leave with cargo from the rest of the countries in the region, Costa Rican transporters are protesting at the border between Costa Rica and Panama, and are asking the authorities to apply reciprocal measures.
The discontent of Costa Rican businessmen could hinder the transit of goods in Central America, and although as of midday on July 7 no blockades of cargo transport had been reported, the sector does not rule out extending the protests.
Local authorities decided to extend from 3 to 10 days the maximum period that drivers of international cargo transport are allowed to stay in Salvadoran territory to unload or load merchandise.
Due to the spread of covid-19 Costa Rica was the first country to impose restrictions on cargo transport units from other countries in the region. Faced with this decision taken unilaterally, the governments applied reciprocal measures.
After the difficulties generated by the restrictions imposed by Costa Rica on the entry of cargo from neighboring countries were overcome, the Costa Rican pilots denounce that the authorities of the region, far from applying reciprocal measures, have established "repressive measures."
Between May 18 and June 1, 2020, the free transit of goods in Central America was interrupted.
From three to five days, the time that Costa Rican carriers have available to stay in Nicaraguan territory, to unload goods or for regional transit, was increased.
Currently, transporting goods by sea between Central American countries can increase freight costs by at least 60% compared to the land option, which represents an obstacle to changing the way goods are transferred in the region.
As a result of the closure of the Penas Blancas customs crossing, on the border between Costa Rica and Nicaragua, some businessmen in the region had to resort to the sea route in order to deliver their orders.
Although the region's markets are not yet facing a scenario of shortage of raw materials or products, the restrictions imposed on freight transport are destroying the regional logistics chain.
After Costa Rica imposed several restrictions on the movement of cargo entering its territory, the Panamanian government limited the permit for Costa Rican carriers to remain in the country to 72 hours.
The transit of goods in the region is becoming more complicated every day, since it is argued that the propagation of the covid-19 is being mitigated.
After the Costa Rican government decided to impose several restrictions on heavy transport units entering its territory, the Honduran government decided to grant Costa Rican pilots only 72 hours in the country.
The monitoring of trucks by GPS to supervise the scheduled routes and the time of the carrier in the country, is the proposal of the Costa Rican authorities so that the cargo transport units of Central America can enter their territory.
After Costa Rica, with the intention of mitigating the spread of the covid-19, decreed restrictions on cargo transport units entering its territory, the Nicaraguan government ordered the closure of the Peñas Blancas border post.
Although the President of El Salvador seeks to maintain absolute quarantine, the Legislative Assembly of that country approved a law that establishes the measures that will be applied to gradually resume labor and economic activity, in both the public and private sectors.
The approval of this legal framework, which establishes four phases for the reactivation of the economy, takes place in the context of strong tensions between the Executive and the Legislative, who have had different criteria regarding the home quarantine, to which the population was subjected due to the outbreak of covid-19.
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