Following Costa Rica's decision to impose requirements on the entry of avocados grown in Honduras, Costa Rican businessmen believe that these unilateral measures could generate trade retaliation for the country.
Arguing that molecular biology tests detected the presence of the Avocado Sunblotch viroid in shipments from Honduras, the Costa Rican State Phytosanitary Service (SFE) decided to start taking samples to analyze Honduran avocados.
Arguing that through molecular biology tests the presence of the Avocado Sunblotch viroid was detected in shipments from Honduras, Costa Rican authorities decided to impose requirements on the entry of the fruit produced in Honduran territory.
Fernando Araya, Director of the State Phytosanitary Service (SFE), confirmed on May 25, 2021 that "... from this moment on, when samples are taken for analysis by the Molecular Biology Laboratory of avocado shipments from Honduras, these will be retained and will be released once a negative result for Avocado Sunblotch viroid (ASBVd) is obtained. The above in compliance with the responsibility to prevent the introduction and spread of pests that threaten food security and economic activity based on agricultural production."
In recent years, regional avocado exports have gained importance, as in 2018 they amounted to $2.8 million, in 2019 they climbed to $10.9 million and in 2020 they rose to $11.9 million.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with the graph"]
Encouraging production and raising the quality standards of the fruit are some of the challenges that Guatemala faces in order to take advantage of the multiple opportunities that exist in the international market.
It is estimated that worldwide the demand for avocado grows at a 10% annual rate and in its best season the fruit is quoted in Asian and European markets up to $1.75 per unit.
In Costa Rica, the Contentious Administrative Court ruled in favor of the companies who accused the government of damaging the local market, after the Solis administration banned the import of Mexican avocado in 2014.
The conflict, which remains unsolved, dates back to several years ago, when in May 2014 Costa Rican authorities decided to ban the import of avocados from Mexico, arguing the existence of the disease known as sun spot.
The government announced that it is planning to increase the area planted with avocado from 2,000 to 4,500 hectares, in order to meet the demand for the fruit on the local market.
The Ministry of Agriculture and Livestock (MAG) reported that the National Avocado Plan will serve as an instrument to guide the management of agricultural sector institutions towards strengthening the cultivation of this fruit.
Since Costa Rica suspended the entry of Hass avocado from Mexico, countries such as Chile, Peru and Nicaragua have taken advantage of the situation to increase their exports to the Costa Rican market.
The dispute that is still unresolved dates back several years, when in May 2014 the Costa Rican authorities decided to ban the import of avocado from Mexico, arguing the existence of the disease called sunspot.
Despite the fact that in December it was announced that a WTO panel would be formed to solve Mexico's complaint against Costa Rica, this was only established on May 16 and in the next few days’ meetings will begin to set the calendar for the process.
The unresolved conflict dates back several years, in May 2014, when Costa Rican authorities decided to ban the import of avocado from Mexico, arguing the existence of the disease called sunspot.
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.
The WTO was part of the panel of experts that will resolve Mexico's lawsuit against Costa Rica, arising from the barriers imposed by the Costa Rican authorities to import the fruit.
The trade conflict emerged because of the barriers that Costa Rica imposes since 2014 to the entry of avocado from Mexico. Because the dispute remains unresolved, the authorities of the North American country requested last November 27 to the World Trade Organization (WTO) to submit the case to an arbitration panel.
Because of the problem of the barriers that Costa Rica has imposed since 2014 to the entry of avocado from Mexico remains unsolved, the Mexican authorities asked the WTO to refer the case to an arbitration panel.
The blockade of the Mexican avocado does not end. The Ministry of Foreign Trade (Comex) reported that Mexico requested the WTO to establish a panel of arbitrators to solve the dispute.
In Costa Rica a considerable increase has been reported in the illegal transfer of agricultural products such as avocados, which have been banned from Mexico for almost three years.
Crhoy.com reports that "... 'The Fiscal Control Police (PCF) reported a change in the trend of items confiscated in the first quarter of 2018. This is because they have detected significant shipments related to products such as avocados and garlic."
Almost three years after the beginning of the restriction of avocado imports from Mexico, citing supposed phytosanitary issues, the Solis administration is now promoting exports of Costa Rican varieties of the fruit, while the local market suffers from shortages.
The Ministry of Agriculture and Livestock announced with great fanfare that it has started an advice giving program to a group of Hass avocado producers in Tarrazú, so that they can start to export the fruit to European countries.
Hass avocados from Mexico can be imported in containers, provided that they come certified as fruit containers that are free from the sunspot disease or from areas certified as free.
The proposal put forward by the State Phytosanitary Service (SFE) to the Committee on Sanitary and Phytosanitary Measures at the WTO, where the conflict between Costa Rica and Mexico is being resolved, establishes that the fruit may be imported in any of three circumstances: the fruit is sent with a certificate that guarantees that it does not have sunspot, with a certificate that comes from areas free of the disease, or where there is compliance with rules agreed bilaterally by the two countries.
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