Costa Rica and Panama at Odds when it Comes to Trade of Agricultural Products

The President of Costa Rica, Laura Fernández Delgado, re-toughened her government’s speech in the face of the trade conflict with Panama and announced diplomatic actions to face Panama’s restrictions on Costa Rican agricultural products.  During their weekly press conference this Wednesday, May 20, the mandate affirmed that they instructed Chancellor Manuel Tovar pictured below, to activate a bilateral strategy and set up a working table with Panama that “has to give results”. “I am not going to allow you to be mistreated for blocks that do not have legal sustenance for domestic producers,” declared Fernández Delgado.  The Costa Rican president also assured that her government will use “all mechanisms” available to defend the agricultural sector.

“There are people losing many millions in Costa Rica, producers of dairy, potatoes, and onions. We are going to activate all mechanisms that are within our reach to do justice for Costa Rican agro”, she expressed.  The declarations coincide with a new hardening of the speech of the Costa Rican private sector, who again accused Panama of acting in “bad faith” for maintaining trade restrictions despite the favorable decision Costa Rica obtained before the World Trade Organization (WMC).  The National Chamber of Milk Producers (Proleche) of Costa Rica recently claimed that the sector’s losses already exceed $200 million and claimed that Panama “illegally” keeps its market closed. 

In statements to the media El Observer, Ivannia Quesada pictured above and below, president of Proleche, pointed out that this is the third Costa Rican administration trying to approach Panama without reaching agreements.  “Then we see bad faith on the part of the authorities of Panama, because no agreement has been wanted to be reached and there have been multiple efforts, meetings and conversations from the private productive, technical and political level to bring solutions and proposals,” she affirmed.  Quesada added that “Panama finally acts in bad faith and illegally keeps the Panamanian market closed to Costa Rica”.  As retaliation from Panama, in the face of the electricity requirement by Costa Rica, the Panama President Mulino chooses not to sell electricity to CR.

Costa Rica “broke the regular commercial dialogue” by directly moving the conflict to the Ministry of Foreign Affairs.