As a result of the blockade that has been in place since July 2020 on the entry of animal products from Costa Rica into the Panamanian market, Costa Rican exports to Panama are reported to have fallen and companies such as Dos Pinos are reporting losses in the millions.
The trade conflict began when Panama informed the National Animal Health Service (SENASA), an agency of Costa Rica's Ministry of Agriculture and Livestock (MAG), of the decision not to extend export authorization to a list of previously authorized Costa Rican establishments that have been trading in the Panamanian market for many years.
Unless intra-regional trade in chemical contents and residues, micronutrients and food preparations is regulated in a balanced manner, trade relations in Central America could face obstacles in the future.
Trade between Central American countries is essential, since a considerable proportion of foreign sales by local companies are destined for other markets in the region.
In order to overcome the trade conflict resulting from the blocking of the entry of animal products from Costa Rica into the Panamanian market, both nations have started a dialogue.
The trade conflict between the two countries began in July 2020, when Panama informed the National Animal Health Service (SENASA), an agency of the Costa Rican Ministry of Agriculture and Livestock (MAG), of the decision not to extend export authorization to a list of previously authorized Costa Rican establishments that have been trading in the Panamanian market for many years.
Following what began as a blockade by Panama on the entry of animal products from Costa Rica, a formal proposal has been made to apply an import tariff to Costa Rican dairy products marketed in the Panamanian market.
In July of this year, Panama informed the National Animal Health Service (SENASA), an agency of the Costa Rican Ministry of Agriculture and Livestock (MAG), of the decision not to extend the export authorization to a list of Costa Rican establishments previously authorized and that have been trading in the Panamanian market for many years.
Allowing the operation of economic sectors with low density and lower risk of transmission of covid-19, with the respective biosecurity measures, is the request of the Panamanian business sector to begin to revive the economy.
In this scenario of health emergency and spread of covid-19, businessmen have already held talks with both the Ministry of Health (MINSA) and the Ministry of Commerce and Industries (MICI) on the gradual opening of activities that lead to the resumption of work in sectors that commit to do so through strict compliance with general and specific protocols approved by the authorities, explains a publication by the Chamber of Commerce, Industries and Agriculture of Panama (CCIAP).
The location of a sales point in any city in Central America can yield significantly different results, since the concentration of people on site, the expense they incur and the estimated time for home delivery in the area all have a significant influence.
In CentralAmericaData we developed a geomarketing tool based on interactive maps, through which it is possible to identify where people are and what characteristics they have as consumers.
The impact of the covid-19 crisis on the wholesale sector in Central America is predicted to be explained, to a greater extent, by the expected drop in trade in disposable items.
The "Information System for the Impact Analysis of covid-19 on Business", prepared by the Trade Intelligence Unit of CentralAmericaData, measures the impact that the crisis will have on companies according to their sector or economic activity, during the coming months.
During the fourth quarter of 2019, Walmart's sales increased year-on-year in all countries in the region, except in Costa Rica, where they fell because of the lower dynamism of local economic activity.
The signs of recovery reported in the Costa Rican economy in the second half of 2019 do not seem to have been enough to boost retail trade, as one of the largest supermarket chains is registering a drop in sales.
During 2019, sales abroad totaled $713 million, exceeding the amount reported in the previous year by 6%.
Data from the General Comptroller of the Republic, detail that between 2018 and 2019 exports reported $41 million increase, from $672 million to $713 million.
For the periods in question, banana exports grew 30%, increasing from $106 million to $138 million, and in the case of fish meal and oil sales rose by 57%, from $47 million to $75 million.
Given the rise of online commerce to the detriment of traditional channels, the contact point between customers and brands is packaging, which must meet the demands of consumers, who are increasingly responsible for the environment.
Studies carried out by companies that provide courier services, detail that in a context of booming e-commerce, 90% of companies believe that in the coming years packaging will be more important, in the area of sustainability and in reducing carbon emissions.
Up to October 2019, sales abroad totaled $611 million, exceeding by 5% the amount reported for the same period in 2018.
The most recent figures of the General Comptroller of the Republic, detail that between January and October 2018 and the same period in 2019 exports reported a rise, going from $584 million to $611 million.
For the periods in question, banana exports grew 33%, increasing from $86 million to $114 million, and in the case of watermelon sales rose by 34%, from $9 million to $12 million.
In order to attract tourism from Costa Rica, in the Panamanian province of Chiriqui, investments have been made in the construction of new shopping centers and the expansion of some existing ones.
In addition to plans to modernize the border crossings between the two countries, whose works will favor the transit of tourism, businessmen estimate that in the construction and renovation of shopping centers, Chiriqui has hoarded investments in excess of $500 million.
In August 2019, sales abroad totaled $63 million, 7% more than the amount reported in the same month last year.
The most recent figures from the General Comptroller of the Republic, detail that between January and August 2018 and the same period in 2019 exports reported a minimum decline, going from $487 million to $485 million.
For the periods in question, banana exports grew 27%, rising from $69 million to $88 million, and in the case of "other exports", which include copper concentrate, rose 8%, from $129 million to $139 million.
The National Assembly approved in first debate the bill of the Free Trade Agreement between the State of Israel and Panama, signed in May 2018.
The Foreign Affairs Committee approved in first debate the bill of the Free Trade Agreement between the State of Israel and Panama, informed the National Assembly last October 2.
Between the first half of 2018 and the same period in 2019, the number of people employed by hotels and wholesale businesses in Panama grew by 2% and 0.5%, respectively.
The Quarterly Economic Survey (EET), elaborated by the General Comptroller of the Republic, specifies that in terms of the economic activities of Manufacturing Industries, the variation for the periods in question was -2.4%, Retail Trade of -3.3% and Some Services of -3.3%.