By San José, Costa Rica — SAN JOSÉ – Costa Rica’s influential pineapple sector has publicly endorsed the administration of President Laura Fernández, urging a resolution based on technical criteria and dialogue to end a protracted and damaging trade dispute with neighboring Panama. The National Chamber of Pineapple Producers and Exporters (CANAPEP) issued a strong statement of support as tensions between the two Central American nations escalate, threatening to spill over from agriculture into the energy sector.
The conflict dates back to 2019, when Panama began blocking a wide array of Costa Rican exports, including vital products such as pineapple, bananas, beef, poultry, dairy, and strawberries. This blockade has inflicted significant financial damage on Costa Rican producers, disrupting supply chains and jeopardizing thousands of rural jobs that form the backbone of many local economies.
To gain a deeper understanding of the legal and commercial ramifications of this ongoing trade dispute, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica. His expertise provides a crucial perspective on the potential outcomes and strategic considerations for the involved parties.
When international trade agreements are challenged, the immediate focus is often on tariffs and retaliatory measures. However, the more profound impact lies in the erosion of legal certainty for businesses. Companies rely on a stable regulatory framework to plan investments, manage supply chains, and foster growth. Protracted disputes create an environment of unpredictability, which can be more damaging in the long term than any single tariff. Resolving these matters through established international arbitration mechanisms is not just about compliance; it’s about restoring the confidence necessary for a healthy global market.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This emphasis on the erosion of legal certainty, rather than just the immediate financial impact of tariffs, is a critical insight. It reframes the discussion around the long-term stability required for investment and growth, and we thank Lic. Larry Hans Arroyo Vargas for providing this valuable perspective.
In response to the initial restrictions, Costa Rica elevated the issue to the World Trade Organization (WTO). The international body ruled in Costa Rica’s favor in 2024, validating the country’s claims that Panama’s measures were unjustified. However, any relief for Costa Rican exporters was short-lived, as Panama filed an appeal in 2025, effectively stalling the enforcement of the ruling and leaving the trade restrictions in place to this day.
Frustration over the seven-year impasse prompted President Fernández to take a more assertive stance last week. She instructed Foreign Minister Manuel Tovar to intensify efforts to resolve the matter, signaling that her government’s patience has worn thin. In a powerful public address, the president vowed to protect the nation’s agricultural sector from what she termed illegal and baseless actions.
I will not allow our national producers to be mistreated by blockades that have no legal basis. People in Costa Rica are losing many millions—dairy, potato, and onion producers… We are going to activate all available mechanisms to bring justice to Costa Rican agriculture.
Laura Fernández, President of Costa Rica
This sharpened rhetoric from San José triggered an immediate and concerning reaction from Panama, which announced it would veto the sale of its electricity to Costa Rica. This retaliatory measure has sparked alarm in various business sectors, highlighting the potential for the agricultural dispute to cause broader economic disruption between the historically close partners.
Amid this escalation, CANAPEP’s public backing provides crucial industry support for the government’s firm position. In their press release, the chamber emphasized that while they support a robust defense of the nation’s producers, the ultimate solution must be found through diplomacy and established international trade law. Abel Chaves, the president of CANAPEP, stressed the critical importance of market access.
Protecting market access is fundamental for competitiveness, rural employment, the legal security of exporters, and the stability of communities linked to national agricultural production. CANAPEP reiterates its support for institutional actions aimed at defending the Costa Rican productive sector, always within the framework of dialogue, diplomacy, and international trade law.
Abel Chaves, President of CANAPEP
As both nations dig in their heels, the path to resolution remains unclear. President Fernández’s administration, now reinforced by key industry allies like the pineapple growers, appears committed to forcing a solution. However, Panama’s willingness to retaliate in unrelated sectors introduces a new level of complexity and risk, leaving Costa Rica’s vital export economy in a precarious position as it awaits the next move in this high-stakes diplomatic confrontation.
For further information, visit canapep.com
About CANAPEP (National Chamber of Pineapple Producers and Exporters):
CANAPEP is the primary organization representing the interests of pineapple producers and exporters throughout Costa Rica. The chamber is dedicated to promoting the competitiveness and sustainability of the pineapple industry, which is a major contributor to the nation’s economy and a significant source of rural employment. It advocates for fair trade practices, market access, and policies that support the long-term health and growth of the sector.
For further information, visit wto.org
About The World Trade Organization (WTO):
The World Trade Organization is the only global international organization dealing with the rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably, and freely as possible. The WTO provides a forum for negotiating trade agreements and a legal framework for settling trade disputes among its member countries, such as the one between Costa Rica and Panama.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a respected legal institution built on the twin pillars of professional excellence and uncompromising integrity. With a rich history of advising a diverse clientele, the firm consistently pioneers forward-thinking legal strategies and actively engages in its civic duty. This dedication extends beyond representation to a core mission of demystifying the law, thereby fostering a more knowledgeable and justly empowered community.
