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.
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.
The decision was made not to extend the decree that allows employers to regulate the immigration status of workers who come to Costa Rica to work in agricultural activities.
The decree concerned is No. 42406-MAG-MGP and establishes that employers in the agricultural sector may regularize the immigration status of foreigners who entered the country between January 15, 2016 and January 15, 2020.
In Costa Rica, the Chamber of Commerce opposes the agreement signed between the rice sector and the government, which maintains the fixing of the price and the 35% tariff on grain imports.
The decision was made on August 23rd in the framework of the meeting in which the National Production Council (CNP), the National Rice Corporation (CONARROZ) and the Ministries of Economy, Industry and Commerce (MEIC) and Agriculture and Livestock (MAG) participated.
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.
Two months after the end of the rainy season, farmers in Costa Rica lament that the government has yet to execute the works needed to mitigate the effects of the droughts scheduled for next summer.
In the opinion of the producers, among the works that the government should have promoted during the current winter was the construction of water reservoirs and wells, as well as the cultivation of fodder to store animal feed, since there is the threat of a possible new drought.
Mexico asks to inspect Costa Rican farms to determine if it is true that the sustain is not in the crops, to which local producers oppose.
In December 2018, the phytosanitary and livestock authorities of Costa Rica and Mexico agreed on a procedure to end almost four years of trade conflict, which arose from the barriers imposed on the entry of avocado to the Costa Rican market.
Authorities from both countries agreed that Costa Rica would accept avocado from Mexico, as long as it has a phytosanitary certificate indicating that the shipment is "symptom-free."
The State Phytosanitary Service (SFE) and the Ministry of Agriculture and Livestock (MAG) of Costa Rica, managed to agree in December 2018 with the new Mexican authorities, the procedure to end almost four years of trade conflict, which emerged from the barriers imposed on the entry of avocado to the Costa Rican market.
Because of the dry season and the rise in temperature, Costa Rica expects an increase in pests in crops such as melon, watermelon, courgette, chili, tomato, beans and cucumbers, among others.
Authorities of the Ministry of Agriculture and Livestock (MAG) informed that the climatic conditions foreseen for the coming months are associated with the El Niño-Southern Oscillation phenomenon.
Because Costa Rica forecasts less rainfall in the Pacific and North Coastal Belt, demand for animal feed is expected to increase in the coming months.
The National Meteorological Institute (IMN) forecasts the presence of El Niño phenomenon with moderate intensity and its influence will extend from November 2018 to May or June 2019.
It is detailed in the "Seasonal Climate Forecast November 2018 - March 2019" of the IMN, that the North Pacific region (Guanacaste) has a historical average precipitation or rainfall of 150 millimeters (per square meter) for that period, while for the current one it will only receive between 45 millimeters and 75 millimeters.
In Costa Rica, the government has decided to establish an additional tariff of 11.67% on imports of brown rice, for purchases exceeding 6,367 tons.
With this new protectionist measure taken by the government, which will apply from September 21 to December 31 of this year, the current tariff will increase from 35% to 46.67%.
After the government argued that "...the increase in imports of brown rice, is generating an increase in national inventories of rice, resulting in repeated and growing surpluses in the domestic market," it proceeded to implement the protectionist measure called Special Agricultural Safeguard (SGE).
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.
In Costa Rica, a new bill has been presented to grant resources at a preferential rate to producers, aimed particularly at the smaller ones.
According to the bill, which received a positive ruling in committee and now must go to the Plenary, the fund will be financed by a contribution of 5% from the liquid surplus of the Coffee Institute of Costa Rica (Icafé), resources from the Ministry of Agriculture and Livestock and funds recovered from the Trust Fund for Coffee Producers Affected by Rust and the Coffee Plantation Renewal Plan.
Despite the fact that the Costa Rican pineapple sector has faced complaints of alleged environmental damage, sales abroad have continued to grow, and it remains the number two export product.
Between 2016 and 2017 Costa Rican exports of fruit increased from $905 million to $970 million, which represents an increase of 7%.This rise has occurred in the context of environmental and social complaints, due to the use of agrochemicals and their respective implications.
In Costa Rica, a decree is being prepared to eliminate the ban that has been in effect since 1988 and to re-authorize planting of the robusta variety in some areas of the country.
The results obtained in tests carried out in 2016 and the conclusion that there is no longer a real technical justification for prohibiting the sowing of this variety have led the Ministry of Agriculture and Livestock to review the conditions and evaluate resumption of planting in some areas of the country.
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