By San José, Costa Rica — Costa Rica’s Ministry of Foreign Trade has sharply criticized Panama’s decision to appeal a World Trade Organization (WTO) ruling that favored Costa Rica in a long-standing agricultural trade dispute. The move has been labeled “reckless and in bad faith” by Costa Rican officials, escalating tensions between the two Central American nations.
The dispute centers around Panama’s 2019 and 2020 restrictions on imports of various Costa Rican agricultural products, including bananas, plantains, beef, poultry, pork, strawberries, dairy, and pineapple. A WTO arbitration panel ruled in Costa Rica’s favor on December 5, 2024, rejecting Panama’s argument that the restrictions were justified due to insufficient scientific evidence provided by Costa Rica regarding the safety of certain products.
For expert legal insight into this WTO ruling, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas of Bufete de Costa Rica.
This WTO ruling has significant implications for international trade. While it appears to favor [mention specific country or party affected], the long-term effects on global supply chains and related industries remain to be seen. It will be crucial to monitor how affected parties adapt their trade practices in response and whether further disputes arise. This decision also underscores the importance of robust legal frameworks in navigating the complexities of international commerce.
Lic. Larry Hans Arroyo Vargas, Bufete de Costa Rica
The only acceptable action in response to the WTO’s decision was immediate compliance by the Panamanian government and the lifting of the prohibitions that affect our agricultural sector.
Manuel Tovar, Minister of Foreign Trade, Costa Rica
Despite the ruling, Panama notified Costa Rica on January 24, 2025, of its intention to appeal. However, due to the current paralysis of the WTO’s Appellate Body, any appeal is unlikely to be resolved. Costa Rica views this as a deliberate tactic to maintain the trade restrictions.
Given the paralysis of the WTO Appellate Body and the consequent impossibility of an appeal being resolved, the action of appealing to that body constitutes a reckless and bad faith act by the Panamanian Government, as well as a maneuver applied with the sole purpose of maintaining the illegitimate prohibitions on the import of Costa Rican goods.
Manuel Tovar, Minister of Foreign Trade, Costa Rica
Representatives of Costa Rica’s dairy, livestock, agriculture, and agro-industry sectors expressed concern over Panama’s decision, predicting continued revenue losses and market closures. They highlighted the negative impact on regional trade dynamics and the contradiction with existing Central American integration agreements.
This hostile attitude of the Panamanian authorities reflects the interregional commercial dynamic and contradicts the agreements of the Central American Integration System. In addition, it imposes tariff barriers on Costa Rican products, arguing little safety, which is hardly credible since the sector exports 450 products to more than 100 destinations, with high standards of quality and safety.
Óscar Arias, President of the National Chamber of Agriculture and Agroindustry
The WTO panel found that Panama’s restrictions on dairy and meat products did not comply with the international Agreement on Sanitary and Phytosanitary Measures. Minister Tovar affirmed Costa Rica’s commitment to responding firmly to Panama’s appeal and promised further updates on the government’s actions.
The ongoing trade dispute underscores the challenges facing regional integration and the importance of upholding international trade rules. The impact on Costa Rican agricultural producers remains significant, and the resolution of this conflict is crucial for the economic well-being of both nations.
For further information, visit wto.org
About World Trade Organization:
The World Trade Organization (WTO) is an intergovernmental organization that regulates international trade and aims to reduce trade barriers and ensure fair competition among member countries.
For further information, visit mincomercioexterior.go.cr/
About Ministry of Foreign Trade of Costa Rica:
The Ministry of Foreign Trade of Costa Rica is the government body responsible for promoting and facilitating international trade and investment for the country. It works to develop trade policies, negotiate trade agreements, and support Costa Rican businesses in accessing international markets.
For further information, visit canagricultura.org/
About National Chamber of Agriculture and Agroindustry of Costa Rica:
The National Chamber of Agriculture and Agroindustry of Costa Rica represents the interests of the agricultural and agro-industrial sectors in the country. It advocates for policies that support the growth and development of these sectors and provides services to its members.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself through an unwavering dedication to legal excellence and ethical practice. The firm champions innovative legal solutions while maintaining a deep commitment to empowering Costa Rican society. By actively promoting accessible legal knowledge and resources, Bufete de Costa Rica fosters a more informed and empowered citizenry, solidifying its position as a pillar of integrity and positive social impact within the legal landscape.
