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.
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.
The Mexican government has filed a complaint with the WTO against Costa Rica over the imposition of restrictions on imports of avocados, in place since May 2014.
Mexican authorities are tired of waiting and have decided to initiate a process with the World Trade Organization in order to resolve the problem, only days after Costa Rica suggested, as a possible solution to the conflict, the implementation of a laboratory test for imports of the fruit.
A change of minister in Costa Rica will aid in increasing the cost of sugar via an import tariff hike, harming consumers and the food industry, and increasing protection for the powerful sugar lobby.
EDITORIAL
The decision taken by the new chief of the Ministry of Economy reflects a clear interest in meddling in a process that should be resolved at a technical and non-political level.The decision to declare whether or not dumping occured in a particular market and what measures should be taken in response, corresponds to the office of Trade Defense, and should be free from any possible political bias.
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Employers indicate that taking the dispute to an arbitration panel will cost many millions of dollars and will result in indemnization payments, as it is clear that trade agreements and phytosanitary standards were breached.
The announcement by the Mexican authorities to take Costa Rica to a World Trade Organization (WTO) arbitration panel because of the dispute over avocados, has caused concern among employers who are members of the Chamber of Exporters and Importers of Perishable Goods (Ceipp).
Arbitrators working under the framework of DR-CAFTA have ruled that Costa Rican exports within this trade agreement in El Salvador should receive the tariff preferences provided for in the text.
From a statement issued by the Ministry of Foreign Trade of Costa Rica (COMEX):
Defending the interests of the country as part of the effective administration of the treaty
Lego International has won a lawsuit against Lego PZ Multiservicios S.A. of Costa Rica for the misuse of the toymaker's brand name.
Lego International won the lawsuit filed against the corporation Multiservicios Lego PZ Costa Rica for the unauthorized use in its company name, of the trademarked name Lego. The Register of Legal Entities at the National Registry ordered the administrative detention of the corporation.
Infinito Gold is suing for $94 million lost due to violations of the agreement for the promotion and protection of investments between Costa Rica and Canada.
Industrias Infinito confirmed that its parent company, Infinito Gold, has filed a law suit against Costa Rica at the International Centre for Settlement of Investment Disputes (ICSID) seeking compensation as a result of their investments in the canceled mining project of Crucitas.
The accusation of blackmail hanging over the Spanish construction company Sacyr in its proceedings related to the Canal expansion, casts a shadow over all firms of the same nationality.
An article printed in Spanish media outlet Invertia.com says "concerns of Spanish employers established in Panama have increased after the Canal Administrator Jorge Luis Quijano, censored the behavior of the construction firm Sacyr."
The Salvadoran President has asked the SIECA to intervene in a trade dispute with Costa Rica.
President Mauricio Funes, believes that a regional agency should resolve the trade dispute with Costa Rica, which has requested the creation of an international arbitration group. The problem, Funes said, should be resolved by the Secretariat for Central American Economic Integration (SIECA).
Having glossed over the Bechtel report on technical deficiencies in the very cheap proposal made by Grupo Unidos por el Canal for the Canal expansion, the project could now turn out to be very expensive for the ACP.
At the time of the award of the construction works on the Panama Canal expansion to the consortium Grupo Unidos por el Canal (GUPC), the efforts made by the U.S.
As a precaution against the conflict not being resolved with the construction consortium, the Panama Canal Authority is already planning for the expansion works to carry on under its management.
The administrator of the ACP, Jorqe Quijano, announced that on Monday January 13 there will be a meeting with Zurich, the project's insurer, noting that the Canal Authority has $548 million available for the financing of the work in letters of credit and $442 million in reserve.
The facts seem to bear out what was said in 2009 -according to WikiLeaks- by the U.S. ambassador, who described Sacyr as "a bankrupt company sustained only by the Spanish government."
The dialogue regarding the cost overruns in the construction of the canal expansion project between the Panama Canal Authority (ACP) and the consortium Grupo Unidos por el Canal (GUPC)-initiated by the intervention of the Spanish Minister of Development- has been interrupted, and it is not longer the Spanish group Sacyr the spokeshead but instead it is now the other majority company in the Consortium, Italy's Impregilo, which is asking - via the media- for $1 billion from the ACP, while keeping up its threat to stop the work.
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