Panama will continue to maintain restrictions on Costa Rican dairy products, pending a ruling from the World Trade Organization (WTO) on an appeal filed after an arbitration panel of that organization ruled in favor of Costa Rica on December 5, 2024.
The initial disputes between the two nations arose in 2011 when Costa Rica did not renew the permit for a Panamanian plant that exported poultry products to its territory, effectively halting those exports.
There was a previous incident. Previously, Costa Rica had complained that in a shipment of live cattle originating from Panama, one cow tested positive for ivermectin, a situation that occurs when an animal is dewormed.
At that time, Costa Rican ranchers were already complaining about the entry of Panamanian cattle.
The low-intensity conflicts between the neighboring countries continued, and in 2019, Panama began demanding that Costa Rica provide the risk analysis required by the WTO.
"At that time, we realized that in Costa Rica, animals are milked even when they have brucellosis, while we do not, and yet we process raw cheeses here, while they do not, which poses a health risk," according to sources in the livestock sector.
Therefore, citing the fact that Costa Rica was not meeting the required health standards, in June 2020, the Panamanian Food Safety Authority suspended the licenses of approximately 26 Costa Rican plants that processed dairy products...
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Neighboring countries have maintained a trade imbalance since 2011. (AI visuals) Panama will continue to impose restrictions on Costa Rican dairy products, pending a ruling from the World Trade Organization (WTO) on an appeal filed by Panama, after an arbitral tribunal of that organization ruled in favor of Costa Rica on December 5, 2024. The first signs of the dispute between the two nations emerged in 2011 when Costa Rica did not renew the permit for a Panamanian plant that exported poultry products to its territory, halting exports. There was a previous incident. Previously, Costa Rica complained that in a shipment of live cattle from Panama, one cow tested positive for ivermectin, a situation that occurs when an animal is dewormed. At that time, Costa Rican ranchers were complaining about the entry of Panamanian cattle. Low-intensity conflicts between the neighboring countries continued, and in 2019, Panama began demanding that Costa Rica provide the risk analysis required by the WTO. Laura Fernández, the new president of Costa Rica, warned that Panama must comply with trade rules. Photo: Infobae/AFP "At that time, we realized that in Costa Rica, animals are milked even if they have brucellosis, while we do not, and we also process raw cheeses, while they do not, which poses a health risk," according to the livestock sector. Therefore, citing the fact that Costa Rica was not meeting the required health standards, in June 2020, the Panamanian Food Safety Authority suspended the licenses of approximately 26 Costa Rican plants that processed meat and dairy products. The banned products include strawberries, beef, pork, animal feed, poultry, bananas, pineapples, and plantains. Since 2014, Panama had been granting import licenses to Costa Rican companies, which had since expired. In July 2020, news reached the National Animal Health Service of the Costa Rican Ministry of Agriculture and Livestock: Panama would not extend the export permits for a list of previously authorized Costa Rican establishments, which had been exporting to the country for several years. The Minister of Trade and Industry, Julio Moltó, stated that Panama is willing to sit down and discuss rules of equality. EFE/ Carlos Lemos. In response to this setback, a month later, Costa Rican authorities notified the WTO's Agriculture Committee about the blockade that Panama had imposed on its animal products. On January 11, 2021, Costa Rica officially initiated a process with the international organization against Panama. "Costa Rica must wait for the WTO to rule on the appeal filed by Panama; the final word has not yet been said," said a source in the dairy sector. The source added that the country has the sovereign right to maintain a defensive position because reciprocity must exist. The National Chamber of Dairy Producers of Costa Rica stated that "Panama's decision to resort to the appeal mechanism, which perpetuates the blockade in practice, undoubtedly reflects Panama's true intentions to continue maintaining unjustified protectionist practices, highlighting the fragility of its technical arguments, as demonstrated by the arbitral tribunal." FILE PHOTO: So far, the Panamanian president, José Raúl Mulino, has not commented on the conflict between his country and Costa Rica. REUTERS/Aris Martinez/File Photo. Now, the newly elected president of Costa Rica, Laura Fernández, has stated that she will seek to resolve the conflict with her Panamanian counterpart, José Raúl Mulino. She warned that Panama must comply with trade rules and remove barriers to meat and dairy products. In response to these statements, the Panamanian Minister of Trade and Industry, Julio Moltó, clarified to Fernández that Panama is willing to sit down and talk "always on rules that apply to both parties." "I fully agree with Minister Moltó. Support for our producers is non-negotiable, and fairness and equality of rights in this dispute is a just demand," said the Minister of Agricultural Development, Roberto Linares.