Panama Calls for Fair Competition: Costa Rica’s President Laura Fernández Escalates the Trade Dispute
The WTO panel ruled in favor of Costa Rica, Panama appealed the decision and the conflict remains unresolved.
Costa Rican President Laura Fernández has escalated her rhetoric against Panama over trade restrictions that, she claims, are affecting the export of Costa Rican agricultural products to the Panamanian market. She considers the Panama case a priority in her foreign policy. Fernández indicated that the trade conflict has already gone beyond the negotiation stages of the Ministry of Foreign Trade (Comex) and that he has taken the matter directly to Foreign Minister Manuel Tovar to activate diplomatic mechanisms and international actions.
Costa Rica Announces International Action Against Panama for Trade Blockade Imposed by Panama Since 2019
Costa Rican President Laura Fernández announced on Friday that she will pursue “international actions” in response to the trade dispute with Panama over restrictions imposed since 2019 on various Costa Rican agricultural products. Among the affected products are dairy products, meats, bananas, plantains, pineapples and strawberries, the president indicated during a tour in the province of Cartago. Fernández explained that the issue was no longer solely under the management of the Costa Rican Ministry of Foreign Trade and was transferred directly to Foreign Minister Manuel Tovar to activate diplomatic mechanisms and international actions.
The conflict between the two countries originated after Panama imposed health and trade restrictions between 2019 and 2020 on agricultural products from Costa Rica. Among the affected products are dairy products, meats, bananas, plantains, pineapples and strawberries, the president indicated during a tour in the province of Cartago. Fernández explained that the issue was no longer solely under the management of the Costa Rican Ministry of Foreign Trade and was transferred directly to Foreign Minister Manuel Tovar to activate diplomatic mechanisms and international actions.
Trade Dispute Continues at the WTO
The conflict between the two countries originated after Panama imposed health and trade restrictions between 2019 and 2020 on agricultural products from Costa Rica. In 2024, a World Trade Organization arbitration panel ruled in favor of Costa Rica in the trade dispute. Panama subsequently filed an appeal in January 2025.The Costa Rican president stated that the agricultural issue represents “the top priority” of her administration and assured that she will defend the producers affected by the restrictions.
“I stand with Costa Rican producers and we will not tolerate any imbalance in the marketing and export of our country’s products.” Fernández said.
Panama Defends Health Measures
The WTO panel rejected Panama’s main argument, related to alleged deficiencies in scientific evidence provided by Costa Rica for exports of fruits and other products. For its part, Panama maintained that the suspension of imports to 16 Costa Rican establishments was due to the lack of renewal of sanitary authorizations. The Minister of Trade and Industries, Julio Moltó, indicated that Panama uses legitimate mechanisms contemplated within the multilateral trading system to protect the national productive sector.
