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.
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.
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.
Given the blockade that has been in place since July 2020 to the entry of animal products from Costa Rica into the Panamanian market, the Panamanian guild of poultry farmers supports the actions taken by the Cortizo administration.
At the beginning of the second semester of 2020 the commercial conflict between both countries began, since 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.
As a result of the blockade to the entrance to the Panamanian market of products of animal origin coming from Costa Rica, on January 11 the Costa Rican government requested to the WTO the application of the mechanism of consultation with Panama.
The trade conflict 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 the export authorization to a list of Costa Rican establishments previously authorized and which have been trading in the Panamanian market for many years.
Based on the willingness of Costa Rican authorities to raise the tariff on imported sugar from 45% to 73%, Brazil decided to raise the entry taxes on four animal products from Costa Rica.
Months ago, the private sector has been warning of the possibility that the country's trading partners would apply reciprocal measures because of Costa Rica's unilateral decision to raise entry taxes on imported sugar.
After the Costa Rican authorities raised the tariff on imported sugar from 45% to 73%, the South American country decided to raise before the World Trade Organization, a process to exercise the right of suspension.
In June of this year, the Alvarado administration decided to increase to 79% and for the term of three years, the tariff on sugar entering the country.
Once Panama blocked the entry of animal products from Costa Rica, discussions at the technical level progressed, but when the issue was brought to the political arena, the process to solve the trade conflict stalled.
In early July of this year, Panama informed the National Animal Health Service (SENASA), an agency of the Costa Rican Ministry of Agriculture and Livestock (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.
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.
After the Panamanian government agreed to ban the entry of animal products from Costa Rica, Panamanian businessmen supported the measure and asked to discuss the export and import requirements, since they claim that their agricultural products are prevented from accessing the Costa Rican market.
The trade dispute began when on July 10 Panama informed the National Animal Health Service (SENASA) 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 exporting to Panama for many years.
Following Panama's blockade of the entry of animal products from Costa Rica, arguing that the permits have expired, Costa Rican authorities decided to notify the World Trade Organization of the dispute.
On July 10, Panama informed the National Animal Health Service (SENASA) of Costa Rica's Ministry of Agriculture and Livestock (MAG) of the decision not to extend export permits to a list of previously authorized Costa Rican establishments that have been exporting to Panama for many years.
In the context of the tense diplomatic and commercial relationship between the two world powers, Central American countries could have the opportunity to attract new investments, as it is estimated that some American companies would need to migrate their operations to the American continent.
As a result of the tension between the two nations, Mauricio Claver-Carone, an advisor to President Trump, believes that U.S.
Guatemalan producers say the Honduran authorities refuse to inspect their plants, preventing them from exporting milk to that market, so they ask the Guatemalan Ministry of Economy to apply reciprocal measures.
According to the directors of the Dairy Development Association (Asodel) and the Chamber of Dairy Producers of Guatemala, with the aim of authorizing sanitary permits, a year ago they waited for the National Agrifood Health and Safety Service (Senasa) of Honduras to visit the production plants, but the Honduran authorities refused to do so.
On November 5, a 37.9% tariff was charged on imports of clothing when its declared FOB price is less than or equal to $20, which affects businessmen in the Colon Free Zone in Panama.
Decree No. 1416 of the Ministry of Commerce, Industry and Tourism of Colombia, dated August 6, 2019 and which has just come into force, states in its Article 1 that "... a tariff of 37.9% on imports of products classified in Chapters 61 and 62 of the National Customs Tariff, when the declared FOB price is less than or equal to US$20 per kilogram gross."
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.