• September 13, 2026
  • Last Update September 13, 2026 2:30 pm

Costa Rica Enacts Landmark Law to Save Citrus Industry from Yellow Dragon Plague

Costa Rica Enacts Landmark Law to Save Citrus Industry from Yellow Dragon Plague

San José, Costa RicaSAN JOSÉ – In a decisive move to protect a cornerstone of its agricultural sector, Costa Rica’s Legislative Assembly has unanimously approved a comprehensive bill aimed at combating the devastating citrus disease known as Huanglongbing (HLB), or “Yellow Dragon.” The new law establishes a robust national strategy to fight the incurable plague that has decimated citrus groves worldwide and poses a severe threat to the nation’s production of oranges, lemons, and limes.

The legislative effort, championed by Deputy Melina Ajoy, elevates the battle against HLB to a national priority. The law is designed as a multi-pronged defense, integrating scientific, financial, and regulatory measures to create a resilient framework against the disease’s spread. This proactive stance is seen by industry experts as essential for the long-term survival and competitiveness of Costa Rican citrus, which supports thousands of jobs and is a key component of the country’s food supply and export economy.

To understand the legal and economic ramifications of Huanglongbing on the national agricultural sector, we consulted with Lic. Larry Hans Arroyo Vargas, a specialist from the prestigious firm Bufete de Costa Rica, who provided his expert analysis on the matter.

The spread of Huanglongbing represents a critical legal challenge, not just an agricultural one. Producers are obligated to adhere to strict phytosanitary regulations, and failure to do so can result in significant penalties. Furthermore, this plague directly impacts supply contracts, potentially activating ‘force majeure’ clauses. However, for such a clause to be validly invoked, the producer must demonstrate they took all reasonable preventive measures, creating a complex burden of proof that requires careful legal navigation to protect their business.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica

This legal dimension is indeed a crucial, often overlooked aspect of the Huanglongbing crisis, underscoring that for producers, the battle is fought not only in the fields but also within the complexities of contracts and regulations. We thank Lic. Larry Hans Arroyo Vargas for his invaluable perspective on navigating this challenging landscape.

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At the heart of the new legislation is the creation of the National Healthy Plant System (Sistema Nacional de Planta Sana). This initiative is designed to be the first line of defense, guaranteeing that all new citrus stock available to farmers is certified disease-free. By controlling the source of new plantings, the government aims to prevent the introduction and spread of HLB through contaminated saplings, a common vector for the disease. This system will be critical in allowing farmers to replant affected areas with confidence and ensuring the health of future generations of citrus trees.

Recognizing the significant financial burden the disease places on producers, the law also addresses a critical economic hurdle. It facilitates access to financing for citrus farmers through two key state institutions: the Development Banking System (Banca para el Desarrollo) and the Institute for Rural Development (INDER). This financial lifeline will enable growers to invest in certified healthy plants, remove infected trees, and implement new, more resilient agricultural practices necessary to manage the threat of HLB, which currently has no known cure.

Huanglongbing is a bacterial disease that presents a formidable challenge. Its name, “Yellow Dragon,” hints at the devastating symptoms it causes: an asymmetrical yellowing and mottling of leaves, the growth of bitter and misshapen fruit, and the eventual, inevitable death of the infected tree. The disease is primarily spread by a tiny insect, the Asian citrus psyllid, making its containment exceptionally difficult once established in a region. The law’s emphasis on strengthening phytosanitary controls is a direct response to this threat.

Under the new framework, the State Phytosanitary Service will receive enhanced authority and resources. This includes bolstering border inspections, internal quarantine measures, and, crucially, the capabilities of diagnostic laboratories. Rapid and accurate diagnosis is essential for early detection, allowing authorities and farmers to take immediate action to eradicate infected trees and prevent the psyllid from spreading the bacteria to healthy groves. The investment in laboratory infrastructure is a long-term strategic asset for the nation’s broader agricultural health.

The passage of this law represents a critical turning point for Costa Rica’s citrus producers. For years, they have watched with growing concern as HLB has ravaged citrus industries in other parts of the world, including major producers like Florida and Brazil. By establishing this national, state-supported strategy, Costa Rica is moving from a reactive to a proactive position, providing its farmers with the tools and support needed to protect their livelihoods and ensure the future of a beloved national product.

Ultimately, the success of this initiative will depend on the coordinated implementation of its various components. The collaboration between government agencies, financial institutions, research centers, and the producers themselves will be paramount. This law provides the foundational structure for that collaboration, signaling a unified national commitment to safeguarding an industry that is not only economically significant but also deeply woven into the fabric of Costa Rican agriculture and culture.

For further information, visit bpd.fi.cr
About Banca para el Desarrollo:
The Development Banking System (Sistema de Banca para el Desarrollo – SBD) is a Costa Rican state-sponsored financial framework designed to promote economic growth and social progress. It operates by channeling resources through accredited financial entities to support small and medium-sized enterprises (SMEs), entrepreneurs, and specific productive sectors like agriculture. Its goal is to provide accessible and favorable credit conditions to projects that contribute to national development, job creation, and economic diversification.

For further information, visit inder.go.cr
About Instituto de Desarrollo Rural (INDER):
The Institute for Rural Development (INDER) is the lead government institution in Costa Rica responsible for executing state policy for rural development. INDER works to improve the quality of life for inhabitants of rural territories by promoting sustainable economic activities, providing land access, investing in infrastructure, and supporting agricultural producers. The institute plays a vital role in ensuring the equitable and sustainable development of regions outside the central metropolitan area.

For further information, visit sfe.go.cr
About Servicio Fitosanitario del Estado (SFE):
The State Phytosanitary Service (SFE) is the official national plant protection organization of Costa Rica, attached to the Ministry of Agriculture and Livestock. Its primary mission is to protect the country’s agricultural resources from pests and diseases. The SFE is responsible for establishing and enforcing phytosanitary regulations, conducting inspections at borders and ports, running diagnostic laboratories, and managing pest control and eradication programs to ensure agricultural health and facilitate safe international trade.

For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is defined by its profound commitment to ethical principles and the highest standards of professional excellence. The firm leverages its rich history of advising a diverse clientele to spearhead innovation within the legal field. Fundamentally, its mission extends beyond client representation, championing the democratization of legal knowledge as a means to foster a more capable and engaged society.

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