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Trade and Trade Disputes Between Panama and Costa Rica; Tica (Paso Canoas) Border Closures


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Illicit Trade of Agri-Products from Costa Rica to Panama

Panamanian producers report that every week between 5 thousand and 7 thousand hundredweight of tomatoes enter the country illegally from Costa Rica, in addition to other agricultural products.

Friday, July 21, 2017

Producers in the province of Chiriquí claim that smuggling from the neighboring country is not limited to agricultural products, but also occurs with materials for production. Tomatos are the product that arrive in the greatest volume from Costa Rica, but also illicitly entering are carrots, potatoes, onions, yams and bananas, according to producers.

See also: "Crops in Central America - What and How Much"

Francisco Rodríguez, regional administrator of the National Customs Authority in Chiriquí, acknowledged to Prensa.com "... the clandestine entry of agricultural products from Costa Rica and said that this has forced them to redouble their controls."

"... Costa Rican tomatoes are sold to intermediaries at a price ranging from 30 to 35 cents, while the local fruit is traded in a range of 50 to 57 cents."

 

http://www.centralamericadata.com/en/article/main/Agricultural_Contraband_from_Costa_Rica_to_Panama

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Panama and Costa Rica: Removing Trade Barriers

Authorities from both countries met to review pending procedures related to the export and import of products such as tomatoes, beef, chicken, fish and sausages.

Tuesday, October 1, 2019

The bilateral agenda also addressed the issues of international cargo transport, smuggling at border crossings, streamlining procedures and efficiency in processes, as well as the provision of facilities and measures restricting the international transport of land cargo, reported the government of Panama.

The document reviews that, during the September 30 meeting "... The ministers of both countries were accompanied by technical teams in the areas of animal health, foreign trade and policy, standards, regulations and phytosanitary services, and international trade negotiations.

The authorities agreed to provide answers and pending information by Monday, October 14, as well as to present work schedules to attend plant inspections in both countries.  In this regard, Costa Rican authorities also undertook to make the corresponding visits to two Panamanian plants this October.
 
Regarding customs difficulties, both countries agreed to adopt measures to overcome restrictions on international transport of cargo
."

In mid-September, CentralAmericaData reported that the absence of toxic waste laboratories at Panama's meat processing plants is one of the obstacles preventing the product from entering the Costa Rican market.

According to representatives of the Panamanian Exporters Association (Apex), Costa Rican regulations require at least 14 toxic waste tests and Panamanian laboratories perform only 8.

https://www.centralamericadata.com/en/article/main/Panama_and_Costa_Rica_Removing_Trade_Barriers

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Costa Rica notifica a la OMC un "bloqueo" panameño a productos lácteos y bovinos

c6e75b39-1151-4e73-841d-75b43c221351_16-9-aspect-ratio_default_1004625.jpg

La medida panameña afecta actualmente a 19 establecimientos pecuarios costarricenses dedicados a la producción de lácteos y subproductos lácteos. AFP

EFE

El Gobierno de Costa Rica informó notificó a la Organización Mundial de Comercio (OMC) lo que considera un "bloqueo" que Panamá está ejerciendo al ingreso de productos lácteos y bovinos costarricenses desde hace aproximadamente un mes.

La ministra de Comercio Exterior de Costa Rica, Dyalá Jiménez, dijo en un comunicado ayer jueves, que existen acercamientos con las autoridades de la vecina Panamá para tratar de resolver la situación, pero aclaró que su país exige el cumplimiento de un reglamento regional.

“Se le ha requerido a Panamá cumplir con las disposiciones del artículo 13 del Reglamento Centroamericano sobre Medidas y Procedimientos Sanitarios y Fitosanitarios que establece la obligación de permitir el comercio cuando la renovación de la habilitación del establecimiento se haya requerido con 90 días antes de su vencimiento y la situación ya fue notificada ante el Comité de Agricultura de la Organización Mundial del Comercio", explicó

Según las autoridades costarricenses, Panamá informó el pasado 10 de julio sobre la decisión de no extender la habilitación para la exportación a una lista de establecimientos costarricenses previamente autorizados y que exportan a Panamá desde hace muchos años.

La medida panameña afecta actualmente a 19 establecimientos pecuarios costarricenses dedicados a la producción de lácteos y subproductos lácteos, alimento para peces, carne de bovino, cerdo , carne procesada de aves y embutidos.

En Panamá, el administrador de la Autoridad Panameña de Seguridad de Alimentos (AUPSA), Raúl Salcedo, declaró a la prensa local que el Ministerio de Agricultura y Ganadería de Costa Rica no entregó a tiempo los documentos necesarios para el proceso de renovación de los permisos sanitarios

El ministro de Agricultura de Costa Rica, Renato Alvarado, afirmó que el argumento del vencimiento de permisos carece de "fundamento técnico", pues las condiciones sanitarias no han variado ni se han presentado desviaciones de inocuidad en los productos costarricenses.

Alvarado aseguró que días atrás Costa Rica solicitó a las autoridades panameñas la extensión del período de habilitación de los productos, de conformidad con la normativa centroamericana.

"El Servicio Nacional de Salud Animal (Senasa) ha realizado en tiempo y forma las solicitudes de renovación de habilitación de los establecimientos costarricenses ante las autoridades panameñas y ha ofrecido soluciones e incluso brindar cooperación y apoyo técnico a los establecimientos panameños para que puedan alcanzar los estándares sanitarios equivalentes con los de Costa Rica”, afirmó el ministro.

Según el funcionario, a esta situación se suma que productos agrícolas costarricenses como tomate y banano "tienen meses sin poder exportarse al mercado panameño" por razones que no precisó.

La cooperativa costarricense Dos Pinos, productora de lácteos, jugos y otros bienes, denunció el miércoles que desde hace un mes no ha podido ingresar producto a Panamá debido a la no renovación del permiso, a pesar de que asegura que presentó las solicitudes correspondientes a tiempo.

Dos Pinos es propietaria de la marca panameña Nevada y exporta a Panamá leche y jugos para abastecer a un mercado deficitario en lácteos que, en el marco de la pandemia, ha visto crecer entre un 20 % y un 30 % la demanda de leche, según la empresa.

El 90 % de la leche deslactosada que se consume en Panamá es provista por Dos Pinos, y este segmento representa casi la mitad de los envíos que la empresa hace desde Costa Rica.

 

Moderator comment: Below is an unedited automated translation of the above news aricle.

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Costa Rica notifies the WTO of a Panamanian "blockade" of dairy and bovine products

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The Panamanian measure currently affects 19 Costa Rican livestock establishments dedicated to the production of dairy products and dairy by-products. AFP

EFE • Aug 7, 2020 - 06:21 AM

The Government of Costa Rica reported notified the World Trade Organization (WTO) of what it considers a "blockade" that Panama has been exerting against the entry of Costa Rican dairy and cattle products for approximately a month.

The Minister of Foreign Trade of Costa Rica, Dyalá Jiménez, said in a statement Thursday, that there are approaches with the authorities of neighboring Panama to try to resolve the situation, but clarified that her country requires compliance with regional regulations.

“Panama has been required to comply with the provisions of Article 13 of the Central American Regulation on Sanitary and Phytosanitary Measures and Procedures, which establishes the obligation to allow trade when the renewal of the establishment's authorization has been required 90 days before its expiration. and the situation has already been notified to the Committee on Agriculture of the World Trade Organization, "he explained.

According to the Costa Rican authorities, Panama reported on July 10 on the decision not to extend the authorization for export to a list of Costa Rican establishments previously authorized and exporting to Panama for many years.

The Panamanian measure currently affects 19 Costa Rican livestock establishments dedicated to the production of dairy products and dairy by-products, fish feed, beef, pork, processed poultry meat and sausages.

In Panama, the administrator of the Panamanian Food Safety Authority (AUPSA), Raúl Salcedo, declared to the local press that the Ministry of Agriculture and Livestock of Costa Rica did not deliver on time the necessary documents for the process of renewal of permits sanitary

The Minister of Agriculture of Costa Rica, Renato Alvarado, affirmed that the argument for the expiration of permits lacks a "technical basis", since the sanitary conditions have not changed nor have there been any safety deviations in Costa Rican products.

Alvarado assured that days ago Costa Rica asked the Panamanian authorities to extend the period of product authorization, in accordance with Central American regulations.

"The National Animal Health Service (Senasa) has made timely and proper requests for the renewal of authorization of Costa Rican establishments before the Panamanian authorities and has offered solutions and even provided cooperation and technical support to Panamanian establishments so that they can reach the sanitary standards equivalent to those of Costa Rica, ”said the minister.

According to the official, in addition to this situation, Costa Rican agricultural products such as tomatoes and bananas "have been unable to export to the Panamanian market for months" for reasons he did not specify.

The Costa Rican cooperative Dos Pinos, a producer of dairy products, juices and other goods, denounced on Wednesday that for a month it has not been able to enter the product in Panama due to the non-renewal of the permit, despite assuring that it submitted the corresponding applications on time .

Dos Pinos owns the Panamanian brand Nevada and exports milk and juices to Panama to supply a deficit dairy market that, in the context of the pandemic, has seen milk demand grow between 20% and 30%, according to the company.

90% of the lactose-free milk consumed in Panama is provided by Dos Pinos, and this segment represents almost half of the shipments the company makes from Costa Rica.

 

https://www.telemetro.com/internacionales/2020/08/07/costa-rica-notifica-a-la-omc-un-bloqueo-panameno-a-productos-lacteos-y-bovinos/3110929.html

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Costa Rica protests Panama trade blockade to World body

costa-rica.jpg

Posted 07/08/2020

A growing trade dispute between  Costa Rica and Panama has landed  on the world stage as Costa Rica  notified th Agriculture  Committee  of the World Trade Organization (WTO) that Panama has blocked the entry of Costa Rican products of animal origin to the Panamanian market for over three months

In a statement, issued on Thursday, August 6, the Minister of Agriculture and Livestock, Renato Alvarado Rivera, and the Minister of Foreign Trade, Dyalá Jiménez Figueres, said that the blockade constitutes "a serious commercial problem between both countries."

The reaction of Costa Rica came after Panama decided to disable 26 Costa Rican plants that process meat and dairy products, because the authorities of the neighboring country did not deliver the required documentation on time to continue with the renewal of sanitary permits, according to the Panamanian Food Safety Authority (Aupsa).  

The Costa Rican Minister of Foreign Trade explained, in the statement, that intense efforts have been made between the competent authorities of both countries, both at the technical and political levels, in addition to coordinating with the export sector.

”Panama has been required to comply with the provisions of Article 13 of the Central American Regulation on Sanitary and Phytosanitary Measures and Procedures, which establishes the obligation to allow trade when the renewal of the establishment's authorization has been required 90 days before its expiration. "Jiménez Figueres indicated.  

He added that the rapprochements with the Panamanian authorities continue, "because we must make all the necessary efforts to reestablish trade with our important neighbor and commercial partner."

For his part, the Minister of Agriculture Alvarado Rivera stressed that the argument of the closure due to the expiration of permits is not valid, and does not represent any technical basis, since Costa Rica has not changed its sanitary conditions or has presented safety deviations in their products.  

“Since the measure was known, coordination began with the National Animal Health Service (Senasa) to request the Panamanian authorities to extend the authorization period, in accordance with Central American regulations. Senasa has made in time and form the requests for the renewal of the authorization of the Costa Rican establishments before the Panamanian authorities and has offered solutions and even offered cooperation and technical support to Panamanian establishments so that they can reach the sanitary standards equivalent to those of Costa Rica ” , said  Minister Alvarado Rivera, who added that Costa Rica maintains a high level of animal health and safety that guarantees health to national consumers as well as to the demanding markets to which it exports.

Additionally, Alvarado indicated that this new problem adds to the blockade that was already being experienced with other agricultural products, such as tomatoes and bananas, which have been unable to export to the Panamanian market for months.

Panama informed the National Animal Health Service of the Ministry of Agriculture and Livestock on July 10 of the decision not to extend the authorization for export to a list of previously authorized Costa Rican establishments that have been exporting to Panama for many years. 

The new measures in Panama currently affect 19 livestock establishments, according to Senasa data, including dairy establishments and dairy by-products, fish feed, beef, pork, processed poultry, sausages.

 

https://www.newsroompanama.com/business/costa-rica-protests-panama-trade-blockade-to-world-body-1

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Trade Dispute Between Panama and Costa Rica

Following Panama's blockade of the entry of animal products from Costa Rica, arguing that the permits have expired, Costa Rican authorities decided to notify the World Trade Organization of the dispute.

Friday, August 7, 2020

On July 10, Panama informed the National Animal Health Service (SENASA) of Costa Rica's Ministry of Agriculture and Livestock (MAG) of the decision not to extend export permits to a list of previously authorized Costa Rican establishments that have been exporting to Panama for many years.

You may be interested in "Food and Beverage: Trends in Central America"

From the MAG statement:

August 6th, 2020. The decision of the Panamanian authorities to block the entry of animal products from Costa Rica has been in effect for more than three weeks and constitutes a serious commercial problem between both countries, according to the Minister of Agriculture and Livestock, Renato Alvarado Rivera and the Minister of Foreign Trade, Dyala Jiménez Figueres.

The minister explained that intense efforts have been made between the competent authorities of both countries, both at a technical and political level, and have been coordinated with our export sector.

"Panama has been required to comply with the provisions of Article 13 of the Central American Regulation on Sanitary and Phytosanitary Measures and Procedures which establishes the obligation to allow trade when the renewal of the establishment's authorization has been required 90 days before its expiration and the situation has already been notified to the Committee on Agriculture of the World Trade Organization. Approaches to Panamanian authorities continue, as we must make every effort to re-establish trade with our important neighbor and trading partner," added Minister Jiménez.

On the other hand, Minister Alvarado Rivera highlighted that the argument of the closure due to the expiration of permits is not valid, which does not represent any technical basis, since Costa Rica has not changed its sanitary conditions nor has it presented any safety deviations in its products. "Since the measure became known, coordination with SENASA began to request the Panamanian authorities to extend the period of authorization, in accordance with Central American regulations. SENASA has made timely applications to Panamanian authorities to renew the approval of Costa Rican establishments and has offered solutions and even provide cooperation and technical support to Panamanian establishments so they can achieve health standards equivalent to those of Costa Rica," said Minister Alvarado Rivera, who added that Costa Rica maintains a high level of animal health and safety that guarantees the health of domestic consumers and the demanding markets to which it exports.

Additionally, Minister Alvarado indicated that this new problem adds to the blockade already experienced with other agricultural products, such as tomatoes and bananas, which have been unable to export to the Panamanian market for months.

On July 10, Panama informed the National Animal Health Service (SENASA) of the MAG about the decision not to extend the authorization to export to a list of Costa Rican establishments previously authorized and which have been exporting to Panama for many years.

The new Panamanian measures currently affect 19 livestock establishments, according to data from SENASA, including establishments producing dairy and dairy sub-products, fish feed, beef, pork, processed poultry meat, and sausages.

 

https://www.centralamericadata.com/en/article/main/Trade_Dispute_Between_Panama_and_Costa_Rica

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Costa Rica ignora pacto con Panamá

La semana pasada, las autoridades sanitarias y de agricultura de ambos países acordaron intercambiar información para solucionar el conflicto comercial. El vecino país prefirió denunciar a Panamá ante la OMC.
 
Aet Elisa Tejera C.
11 ago 2020 - 12:23 AM

https://www.prensa.com/impresa/panorama/costa-rica-ignora-pacto-con-panama/

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Entrepreneurs Support Trade Dispute

After the Panamanian government agreed to ban the entry of animal products from Costa Rica, Panamanian businessmen supported the measure and asked to discuss the export and import requirements, since they claim that their agricultural products are prevented from accessing the Costa Rican market.

Monday, August 10, 2020

The trade dispute began when on July 10 Panama informed the National Animal Health Service (SENASA) of the Costa Rican Ministry of Agriculture and Livestock (MAG) of the decision not to extend export authorization to a list of previously authorized Costa Rican establishments that have been exporting to Panama for many years.

Following the restrictions imposed by Panama, the Costa Rican authorities decided to notify the situation of the trade dispute to the World Trade Organization.

In this scenario of commercial disputes, the National Council of Private Enterprise of Panama (CoNEP), has expressed itself in favor of the measures taken by the Panamanian authorities and has taken advantage of the moment to make some requests.

In a statement, the business association explained that there is an urgent need to review the current trade agreement, so that Panama can take further action to set the right course for sustainable development of the agricultural sector and to achieve trade expansion in the region.

You may be interested in "Food and Beverage: Trends in Central America"

Laestrella.com.pa reviews that "... the CoNEP reiterated its support to the efforts of the Government to achieve a commercial balance among the countries of the region and called for the prompt installation of a Political Table, Panama - Costa Rica, where the guidelines for international commercial negotiations are established, the requirements and restrictions on exports and imports of the different items are discussed, since for years the national producers have made countless efforts to enter the Costa Rican market with a great variety of agricultural products, without obtaining substantial results in their fair right to commercial exchange."

The article adds that "... It is an issue of non-tariff barriers, which together with other conditioning elements, plant certification, technical interpretation of sanitary protocols, access restrictions, certification visits without issuing plant certification, among others, entail significant economic consequences for national trade', expressed the CoNEP."

An official document dated August 8, 2020 from Panama's Ministry of Commerce and Industry (MICI), details that "... Historically, more than 40 Costa Rican production plants have continued to export to the Panamanian market, demonstrating the openness of trade that Panama has always practiced in relation to this partner and neighboring country.

Panama has not received the same access from Costa Rica and despite many efforts, it has not been able to renew its exports of several million dollars in beef to Costa Rica, from 5 plants that were disqualified in 2015, nor has it been able to get approval from the Costa Rican authorities for a small group of Panamanian processing plants (finished chicken products, codfish, seafood and dairy products) that are trying to enter that market
".

https://www.centralamericadata.com/en/article/main/Entrepreneurs_Support_Trade_Dispute

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Movements in Regional Commercial Chess

The blockade to the entrance of products of animal origin coming from Costa Rica to the Panamanian market, has derived in a commercial conflict in which both countries have their share of responsibility, since the authorities of both nations advocate for protectionist measures.

Monday, August 24, 2020

On July 10, 2020, Panama informed the National Animal Health Service (SENASA), an agency of the Ministry of Agriculture and Livestock of Costa Rica (MAG), about the decision not to extend the authorization for export to a list of Costa Rican establishments previously authorized and that have been commercializing in the Panamanian market for many years.

Upon learning of the restrictions imposed, the Costa Rican government decided to notify the World Trade Organization (WTO) about its trade dispute with the neighboring country.
This commercial battle is being fought in a context of protectionism on the part of both countries. In the case of Panama, President Cortizo said in 2019 that during his administration he would review the trade agreements with the United States, Costa Rica and Nicaragua. On the Costa Rican side, representatives of the Ministry of Agriculture and Livestock (MAG) have spoken out against the opening of trade.

You may be interested in "Food and Beverage: Trends in Central America"

Ronald Saborio, former Costa Rican ambassador to the WTO told Elfinancierocr.com that Renato Alvarado, head of MAG "... advocates for protectionist measures to favor national farmers, the official expressed his 'strong opposition' to the opening of trade on MAG's Facebook profile on May 2. There, he stated that 'the legal frameworks for trade defense make it impossible to apply instruments for a real protection of national production."

Saborio added that "... It could be said that the borders with Panama are growing because the worst scenario for two neighboring countries in trade is that both are protectionist. Unlike years past when Costa Rica was the force in the region pushing for harmonization of rules, transparency and opening of markets, Costa Rica has become a protectionist country and Central America is not advancing as before towards economic integration."

Costa Rica has become a protectionist country and that can have an effect on the countries' attitude towards Costa Rican products, an example is the case of the Mexican avocado, says Saborío.

https://www.centralamericadata.com/en/article/main/Movements_in_Regional_Commercial_Chess

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400 vehicles stranded at closed Tico border crossing

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400 vehicles stranded

Posted 05/10/2020

The Paso Canoas border with Panama- Costa Rica remains closed as protests  continue despite the announcement that the administration of President Carlos Alvarado would not continue with negotiations with  the International Monetary Fund (IMF). .

Groups leading the protests are requesting that the Government commit in writing that they will not continue with this plan and the decision to close the roads is being felt in Panama.

The closing of dozens of highways including  Paso Canoas, Panama, which is mainly affecting international trade; about 400 trucks are stranded in the sector.

The protesters have  blocked the streets on the Costa Rican side. since Sunday night,

Dump trucks unloaded a large amount of earth and stones, to prevent the passage, both pedestrian and vehicular, as seen in videos published on social networks.

Panama  President Laurentino Cortizo, said on  Monday, October 5, for now, the situation in the border between Panama and Costa Rica "is manageable."

According to a report from the AFP agency , Costa Rica’s Ministry of Security detected 40 blockade points  , including Route 36, which connects the Costa Rican sector of Limón with Sixaola in the direction of the binational bridge with the province of Bocas del Toro, Panama.

New taxes to the detriment of spending cuts, was one of the points of the negotiations between the Tico government and the IMF that caused the demonstrations.

It was reported that the Government of Costa Rica was trying to agree with the IMF a loan of about $1..75 billion to face a complicated fiscal situation.

 

https://www.newsroompanama.com/business/400-vehicles-stranded-at-closed-tico-border-crossing

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Empresarios evalúan impacto económico por cierre de Paso Canoas

El Consejo de la Empresa Logística exhortó a las autoridades de Costa Rica a buscar una solución a las protestas que se dieron en el país, para evitar el cierre de las fronteras y que el comercio se paralice

Por Mirta Rodríguez P.

5f7bbf32db1da.jpeg
Las protestas comenzaron el 30 de septiembre de 2020.Cedida

Aunque el Gobierno de Costa Rica decidió, el pasado domingo, retirar la propuesta de negociación de un crédito con el Fondo Monetario Internacional, el paso fronterizo de Paso Canoas amaneció bloqueado.

Hasta altas horas de la mañana de ayer lunes se podía observar a una gran cantidad de transportes de carga varados sin poder avanzar hacia Centroamérica, y el presidente del Consejo de la Empresa Logística (Coel), Rodolfo De La Guardia, no descartó que el cierre de las fronteras haya generado un impacto económico negativo al comercio del país y a nivel regional.

“Los bloqueos sí traen repercusiones a nuestra economía ya que se imposibilitan las exportaciones que se hacen desde Panamá y el tráfico de mercancía que se envía desde aquí (a otros países de la región). Hay farmacéuticos, aceite de palma y algunos productos que enviamos hacia Centroamérica, y por supuesto que si no los podemos pasar, nos afecta”, advirtió De La Guardia.

Se estima que entre 300 a 500 transportistas se hallaban en esa situación, aunque el movimiento ya se ha comenzado a restablecer. Adicionalmente, “Panamá realiza importaciones de productos necesarios, que vienen desde Centroamérica a nuestro país; y si no pueden entrar, también afectan a las empresas que los comercializan y por ende afectan directamente la economía nacional”, añadió De La Guardia.

Aunque se espera un impacto económico en la carga logística, De La Guardia señaló que en estos momentos todavía es muy pronto para dar una cifra en concreto sobre las pérdidas que se estarían generando.

“Esto está en progreso y esto es muy incipiente”, expresó el presidente de Coel. Sin embargo, enfatizó que cualquier situación de bloqueo en las fronteras entre Panamá y Costa Rica afecta el comercio regional.

“Si lo que se comercia desde Centroamérica hacia Panamá y desde Panamá hacia Centroamérica queda interrumpido con cualquier situación que se dé en nuestras fronteras, impacta económicamente a este país y al resto de Centroamérica”, dijo.

Aseguró que la mercancía y los transportistas panameños que estaban del lado de Costa Rica ya han empezado a moverse, pero que la afectación económica la podrán ir cuantificando los próximos días. “En estos momentos no tenemos la información precisa, se está recopilando”, afirmó De La Guardia.

El presidente del gremio logístico insistió en que la situación que se está dando en Costa Rica con los bloqueos es muy particular y muy propia de los hermanos costarricenses, por lo tanto Panamá y el Consejo Empresaria Logístico no tienen ningún tipo de injerencia, en lo que allá pasa en estos momentos.

Sin embargo, exhortó a las autoridades costarricenses y a su pueblo a buscar una solución lo antes posible para que se abra definitivamente la frontera y continúe el comercio, pues los bloqueos que allí se dan perjudican no solo a Costa Rica, sino a todos los países de la región.

En cadena nacional, la noche del domingo pasado, el presidente de Costa Rica, Carlos Alvarado, llamó a la población a levantar los bloqueos y actos de vandalismo que venían protagonizando en las últimas semanas, y abogó por un diálogo nacional para lograr la salida frente a la crisis de la covid-19.

“Hoy hago una convocatoria a los distintos sectores que respaldan las vías institucionales para que abramos un diálogo nacional para resolver la emergencia económica que enfrenta el país. En ese diálogo me involucraré personalmente”, expresó Alvarado, publicó El Financiero.

Con el crédito de $1,750 millones que daría el FMI, el plan era hacer un ajuste fiscal en el aumento temporal a las tasas del impuesto sobre la renta, que se cobra a los salarios y a las utilidades de las empresas, y un incremento a la tasa del impuesto a la propiedad de bienes inmuebles. Igualmente se proponía un tributo nuevo a las transferencias bancarias y cheques.

CRISIS EN COSTA RICA

 Protestas mantenían detenidos 200 camiones ayer.

| Más de 400 contenedores que van desde Panamá hacia Centroamérica quedaron varados en la frontera.

| Las protestas empezaron el pasado 30 de septiembre de 2020.

 

Moderator comment: Below is an unedited automated translation of the above news article.

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Businessmen evaluate the economic impact of the closure of Paso Canoas

The Council of the Logistics Company urged the authorities of Costa Rica to seek a solution to the protests that took place in the country, to avoid the closure of the borders and the paralyzing of trade

By Mirta Rodríguez P.
Updated 10/06/2020 00:00

<<5f7bbf32db1da.jpeg>>
The protests began on September 30, 2020.

Although the Government of Costa Rica decided, last Sunday, to withdraw the proposal to negotiate a loan with the International Monetary Fund, the Paso Canoas border crossing was blocked.

Until the wee hours of the morning of Monday, a large number of cargo transports stranded could be observed without being able to advance towards Central America, and the president of the Council of the Logistics Company (Coel), Rodolfo De La Guardia, did not rule out that the closure of the borders has generated a negative economic impact on the country's trade and at the regional level.

"The blockades do bring repercussions to our economy since exports made from Panama and the traffic of merchandise sent from here (to other countries in the region) are impossible. There are pharmaceuticals, palm oil and some products that we send to Central America, and of course, if we cannot pass them on, it affects us, ”De La Guardia warned.

It is estimated that between 300 and 500 carriers were in this situation, although the movement has already begun to reestablish. Additionally, “Panama imports necessary products that come from Central America to our country; and if they cannot enter, they also affect the companies that market them and therefore directly affect the national economy, ”added De La Guardia.

Although an economic impact on logistics cargo is expected, De La Guardia said that at this time it is still too early to give a specific figure on the losses that would be generated.

"This is in progress and this is very incipient," said the president of Coel. However, he emphasized that any situation of blockade on the borders between Panama and Costa Rica affects regional trade.

"If what is traded from Central America to Panama and from Panama to Central America is interrupted by any situation that occurs on our borders, it will economically impact this country and the rest of Central America," he said.

He assured that the Panamanian merchandise and carriers that were on the Costa Rican side have already begun to move, but that the economic impact will be able to be quantified in the coming days. "At the moment we do not have the precise information, it is being compiled," said De La Guardia.

The president of the logistics union insisted that the situation that is occurring in Costa Rica with the blockades is very particular and very typical of the Costa Rican brothers, therefore Panama and the Logistics Business Council do not have any type of interference, in which there it happens right now.

However, he urged the Costa Rican authorities and his people to seek a solution as soon as possible so that the border is definitively opened and trade continues, since the blockades that occur there harm not only Costa Rica, but all the countries of the region.

On a national network, last Sunday night, the president of Costa Rica, Carlos Alvarado, called on the population to lift the blockades and acts of vandalism that had been taking place in recent weeks, and called for a national dialogue to achieve the exit from to the covid-19 crisis.

“Today I make a call to the different sectors that support the institutional channels so that we open a national dialogue to resolve the economic emergency facing the country. In that dialogue I will get personally involved, "said Alvarado, published El Financiero.

With the credit of $ 1.75 billion that the IMF would give, the plan was to make a fiscal adjustment in the temporary increase in the rates of income tax, which is charged to wages and company profits, and an increase in the rate of the property tax on real estate. A new tribute to bank transfers and checks was also proposed.

CRISIS IN COSTA RICA

 Protests stopped 200 trucks yesterday.

| More than 400 containers going from Panama to Central America were stranded at the border.

| The protests began on September 30, 2020.

 

 

https://www.laestrella.com.pa/economia/201006/empresarios-evaluan-impacto-economico-cierre

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I believe there is a misunderstanding in the way this report is presented.

The President of Costa Rica has been in negotiations with the IMF for a $1.75 billion loan, the need for which can be ascribed to the economic consequences of the Covid-19-related shutdowns. The conditions required by the IMF include spending cuts and tax increases. The Costa Rican population has demonstrated for several days against the prospective measures, and has blocked up to 36 different roads, paralyzing the country. Today, Tuesday October 6, the police report 17 blockades throughout the country, and there are calls for further demonstrations. The President has aborted the negotiations.

Yes, there have been arguments between Panama and Costa Rica over trade and Covid-19 sanitation issues, but this is not one of them.

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I am not sure how to read your question. The financial need is caused by past effects of Covid-19 on government revenues.

The proposed borrowing was to fill the gap in revenues consequent to the anti-virus measures taken. The amount was to be $1.75 billion, the term three years. The conditions imposed were said to involve the sale of a couple of government-owned assets and new taxes on incomes, property, and a new tax on bank transfers.

There has been an intense negative reaction by the opposition parties and by the populace. The Costa Rican border officials went on strike, joining the action of other labor unions, so the border blockage has nothing to do with any trade dispute.

Protests have been happening for seven days, and continue, even though the negotiations with IMF were halted last Sunday. Yesterday, Wednesday October 6, the Costa Rican police reported 21 blockades, including one on Route 32 (San Jose-Limon) and one on the Pan-American highway 200 kilometers north of San Jose. The intent is stop the transport of goods.

Panama's President Cortizo was quick to state that he is not considering any taxes. Yesterday the general director of revenues for Panama reiterated that the government is not contemplating new taxes.

Here is the President of Costa Rica on a gallows labeled "taxes":

 

CR Image.jpg

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Blocks and Costs to the Region

The protests in Costa Rica, which affect vehicle circulation in the country and border crossings, will have a short-term impact on intraregional trade and cargo transport costs.

Tuesday, October 6, 2020

In order to access the $1.75 billion credit that it intends to request from the International Monetary Fund (IMF), the Costa Rican government proposed to tax financial transactions, raise the tax on the profits of companies and individuals, and increase the tax on real estate.

The proposed measures generated a series of protests in the country, and although on October 4 the Alvarado administration reversed the initial proposal to request funding and called for an inter-sectoral dialogue, by October 5, Costa Rica was still semi-paralyzed by blockades on various roads in the country.

In addition to the roadblocks, which until the morning of October 5 totaled more than 30, during the weekend and because of the demonstrations, cargo transport was prevented from passing through the border point of Paso Canoas, which is shared by Costa Rica and Panama.

Rodolfo De La Guardia, president of the Council of the Logistics Company (Coel) of Panama, said to Laestrella.com.pa that "... the blockades are bringing impacts to our economy since they make impossible the exports that are made from Panama and the traffic of merchandise that is sent from here (to other countries of the region). An economic impact on the logistic load is expected, but at this moment it is still too early to give a concrete figure on the losses that would be generated."

The executive explained that although the movement has already begun to restore, it is estimated that between 300 and 500 transport units were affected by the blockades.

Hector Fajardo, member of the Central American Federation of Transport (Fecatrans), informed Prensalibre.com that "... the blockades went from seven to 23 strategic points where cargo transport circulates in Costa Rica, and during last weekend the demonstrators took machinery to be able to obstruct the passage with earthen volcanoes and rocks."

Fajardo added that "... In addition to the delays, the failure to comply with the immigration deadlines established by Costa Rica for heavy cargo pilots is a consequence of the blockades. The five-day deadline is about to expire for most of the pilots, and if they do not free their way, they will stay longer in that country, and there is no option to return either."

According to the member of Fecatrans, there are fines in the cases of the pilots who do not comply with the immigration deadlines. This and the delays, could push up the costs of cargo transportation.
 
See article from Laestrella.com.pa "Businessmen evaluate economic impact of closing Paso Canoas" and from Prensalibre.com "Crisis in Costa Rica: This is what each transport unit loses due to daily delays".

 

https://www.centralamericadata.com/en/article/main/Blocks_and_Costs_to_the_Region

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Border with Costa Rica remains closed as presidential stand-off continues

costa-rica-prtests.jpg

Posted 07/10/2020

Panama’s border with Costa Rica in  Pano Canoas, remain closed as nationwide protests and road blockades  continue to create traffic chaos and clashes with the police  and  a stand-off with President Carlos Alvarado, who refuses to meet with demonstrators until the blockades are lifted

He  told Costa Rican media that he will only meet with the National Rescue movement if the road closures are suspended.

The Alvarado administration informed José Miguel Corrales and Célimo Guido , leaders of Rescate Nacional, that it will not include them in the national dialogue if the blockades continue.

National Rescue was called by the National Association of Public Employees, the main union of state workers and had the support of some educator  unions.

The movement began in the middle of last week a series of roadblocks throughout Costa Rica to pressure the Alvarado government to desist from its negotiation proposal with the International Monetary Fund (IMF).

According to the Alvarado government, the agreement with the IMF is considered key to face the fiscal deficit, projected at 9.7% of gross domestic product for this year.

The government agreed pn  Sunday, October 4, to withdraw the proposal, criticized for promoting temporary taxes instead of cutting expenses, but the movement maintained the protests.

 

https://www.newsroompanama.com/business/border-with-costa-rica-remains-closed-as-presidential-stand-off-continues

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  • Moderator_02 changed the title to Trade and Trade Disputes Between Panama and Costa Rica; Tica (Paso Canoas) Border Closures
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Medical supplies may cross Costa-Rica border closed 9 days

border.jpg

Protesters have dumped truck loads of dirt and rocks at the border

Posted 08/10/2020

 Medical supplies may cross Costa-Rica border closed 9 days

After nine days of closure f the border between Panama and Costa Rica, Panama’s Chamber of Freight Transportation has requested the passage of at least 40 trucks with medicines and perishable items. 

Costa Rican civil society and unions linked to the closure during anti-Government protests have said that they could allow the passage for humanitarian reasons.

Andrés Muñoz, of the National Chamber, hopes that they will allow the passage by Friday.

Edgar Gutiérrez, from the Costa Rican union, said that, above all, the movement is "people", so he believes that they will not oppose the humanitarian step.

 

https://www.newsroompanama.com/business/medical-supplies-may-cross-costa-rica-border-closed-9-days

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Threats to Cargo Transport Continue

Arguing that there is unfair treatment in the other countries of the region, Costa Rican drivers of cargo vehicles block the transit through the border posts of Penas Blancas and Paso Canoas.

Friday, October 9, 2020

The conflict dates back to May of this year, when the Costa Rican government decided that only transporters who made direct border-crossings would enter its territory, arguing that this measure was intended to mitigate the spread of covid-19. On that occasion, most countries decided to apply reciprocity policies.

At the end of September, Costa Rican authorities decided to eliminate most of the restrictions that had been maintained, and now trucks with license plates from other countries are allowed to load and unload directly in the warehouses of the companies, without prior authorization.

See "Freight Transport at Borders: Endless Problem"

Although the restrictions were removed, Costa Rican pilots claim that they are treated unequally in most Central American countries.

Marjorie Lizano, president of the Costa Rican Chamber of Unitary Transporters (CCTU) told Nacion.com that despite the fact that Costa Rica relaxed the restrictions "... trucks with Costa Rican plates are required to unload the merchandise in fiscal warehouses in the rest of the countries, except Guatemala, which lifted the measure on Tuesday, June 7."

Lizano added that "... the closure of transporters in Paso Canoas, on the border with Panama, joined the demonstrations of the population against the government. At that border point the action of the community is more visible, because they even put land and other materials on the road."

Also see "Central America: Disruption of the Logistics Chain"

In an attempt to justify that the border crossings are not closed, Duayner Salas, Minister of Foreign Trade, explained on the afternoon of October 8 that government authorities are maintaining services in Paso Canoas and Penas Blancas.

Salas admitted that the flow of cargo transport is interrupted by Costa Rican pilots.

https://www.centralamericadata.com/en/article/main/Threats_to_Cargo_Transport_Continue

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Moderator comment: This is posted as an exception to CL policy about content needing to be related to life in Panama because this is a follow-up to the story of the recent blockage of the border between Panama and Costa Rica.

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Lack of Leadership and Ungovernability

Faced with increasing chaos in Costa Rica due to demonstrations and blockades, a part of the business sector decided, unilaterally, to negotiate with representatives of the movement that incites to protest, and to reject the official call by the President of the Republic.

Friday, October 16, 2020

The protests and blockades that are taking place in Costa Rica arose after it was reported that in order to access the $1.75 billion credit that it intends to request from the International Monetary Fund (IMF), the Costa Rican government proposed to tax financial transactions, raise the tax on the profits of companies and individuals, and increase the tax on real estate.

After the country was semi-paralyzed by the violent blockades made by the demonstrators on different highways, the Alvarado administration decided to withdraw the initial proposal and called for a national and multi-sector dialogue.

The government's proposal was not welcomed by several of the business chambers, as of the 29 seats available, only four were directed at the business sector. For the productive sector this dialogue scheme was unbalanced.

You may be interested in "Blocks and Costs to the Region"

On October 15, the Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP) issued a statement informing the decision not to attend the Table organized by the President of the Republic, through the State of the Nation Program, but to continue in the dialogue forum called by the Assembly of Workers of the Banco Popular.

Jose Alvaro Jenkins, President of UCCAEP, said that they reiterate their "... concern regarding the unbalanced proportion of the table promoted by the government, which does not guarantee the representation of all sectors of society in the search for a consensual solution for the country. We are in favor of dialogue and we urge the government to join the National Forum for Multisectorial Dialogue that was promoted by the National Assembly of Workers of the Popular and Community Development Bank."

On the night of October 15, it was reported that UCCAEP and leaders of the National Rescue Movement, which promotes violent demonstrations and closures of highways in the country, held a meeting in which they negotiated the lifting of blockades on national roads.

After the news was spread, the Costa Rican Chamber of Construction (CCC) reacted through a statement published on October 16.

The CCC document details that "... given the information that circulated about a meeting between UCCAEP and the so-called National Rescue Movement, we wish to state that the Costa Rican Chamber of Construction did not receive for its information, did not approve, nor does it endorse, any agreement of the Costa Rican business sector, meeting in UCCAEP, with this group."

"... From our organization we support dialogue and make the necessary efforts to build bridges in search of agreements, but in no way, with groups that use force, disorder and the breaking of constitutional rights of Costa Ricans. We reiterate our support to the institutionality of the country and we call for dialogue to solve the problems, in a fair, representative and balanced environment," the statement concludes.

 

https://www.centralamericadata.com/en/article/main/Lack_of_Leadership_and_Ungovernability

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On 10/20/2020 at 8:46 AM, Moderator_02 said:

Moderator comment: This is posted as an exception to CL policy about content needing to be related to life in Panama because this is a follow-up to the story of the recent blockage of the border between Panama and Costa Rica.

https://www.centralamericadata.com/en/article/main/Lack_of_Leadership_and_Ungovernability

 

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Costa Rica opens air borders cuts covid-test requirement

costarica.jpg

Posted 22/10/2020

Costa Rica  which will open its its air borders for all countries in the world on November 1 has eliminated the requirement for a negative Covid-19 test for the entry of foreign visitors, as the high tourism season approaches, the government announced  Thursday,October 22.

The Minister of Tourism, Gustavo Segura, said that the measure will take effect from October 26.

The country began a gradual opening of air borders in August after the total closure of borders in March when the first cases of the coronavirus were detected.

The minister called on tourism companies to be "very careful" in applying the protocols to contain the spread of covid-19 to maintain the opening of air borders.

The country will maintain the requirement to purchase health insurance to cover pandemic infections.

"These measures help to recover jobs, which is so important throughout the country, but especially on the coasts", hard hit by unemployment, which affects 23.2% of the country, according to official figures.

 

https://www.newsroompanama.com/travel/costa-rica-opens-air-borders-cuts-covid-test-requirement

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Trucks on the move after Panama-Tico border log jam

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Posted 24/10/2020

The movement of national and international cargo paralyzed for more than three days on the Panama-Costa Rica border restarted on Saturday morning, after the signing of agreements by truckers from both sides of the border.

The truckers said they were relieved by the and hope that dialogue will continue to be used to avoid confrontations causing serious financial outlays, not only to them but also to the merchants who own the load.

" We are left in the middle of these disputes and the worst thing is that we are not certain that it will be repeated in the coming weeks, because they want to fix everything by closing traffic, without going to dialogues or other instances of their countries, " said Gallardo Blandón, a truck driver from Nicaragua who was stranded for five days in Paso Canoa.

Among the agreements to reopen and normalize the transportation cargo on the border of Panama with Costa Rica is that truckers from Costa Rica enter full and leave empty, as will truckers from Panama, who will also enter full and will leave Costa Rica empty.

It was also agreed that the coupling and uncoupling system in this sector of the Panamanian Tico border is eliminated, for what is the National cargo of Costa Rica and also of Panama. "With this, we can say that we are approaching reciprocity on the issue of cargo in these countries, which should be further analyzed by the leaders of these republics, " they assured. It was also determined to keep in force the regional agreements that govern cargo in the regions of Panama and Costa Rica, which are in force and allow reciprocity between the countries.

 

https://www.newsroompanama.com/business/trucks-on-the-move-after-panama-tico-border-log-jam

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From Trade Barriers to Safeguards

Following what began as a blockade by Panama on the entry of animal products from Costa Rica, a formal proposal has been made to apply an import tariff to Costa Rican dairy products marketed in the Panamanian market.

Wednesday, November 4, 2020

In July of this year, Panama informed the National Animal Health Service (SENASA), an agency of the Costa Rican Ministry of Agriculture and Livestock (MAG), of the decision not to extend the export authorization to a list of Costa Rican establishments previously authorized and that have been trading in the Panamanian market for many years.

See "Movements in Regional Commercial Chess"

When this trade dispute began, it was perceived as a problem that could be solved by technical inspections of food production plants operating in Costa Rica. However, plans have changed, and now Panamanian authorities are focusing on taxing dairy products of Costa Rican origin.

Also see "More Technical Solutions, Less Policy"

The document sent by the Panamanian authorities to the Costa Rican Ministries of Foreign Trade (Comex) and Agriculture and Livestock (MAG), specifies that the intention is to create "... the special agricultural safeguard mechanism for certain dairy products. The safeguard mechanism will take the form of an import tariff."

Duayner Salas, head of the Comex told Nacion.com that "... 'in effect, we received from the trade authorities a proposal, which we are analyzing and reviewing to respond according to what is feasible to implement in terms of our bilateral relationship with Panama'."

According to Renato Alvarado, Minister of Agriculture and Livestock, "... the safeguard mechanism is not justified when the Panamanian market is in deficit in dairy products. They produce 60% of the consumption and Costa Rica participates with its exports in the other 40% of the market, without causing damage to the local industry."

You may be interested in "Dairy Products: What goes on in the consumer's mind?"

For the National Chamber of Dairy Producers of Costa Rica, it is not feasible to attend these proposals from any commercial partner that are not consistent with the framework that regulates the relationship between both economies.

https://www.centralamericadata.com/en/article/home/From_Trade_Barriers_to_Safeguards

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Trade: Panama-Costa Rica Blockade Gains Support

Given the blockade that has been in place since July 2020 to the entry of animal products from Costa Rica into the Panamanian market, the Panamanian guild of poultry farmers supports the actions taken by the Cortizo administration.

Tuesday, January 19, 2021

At the beginning of the second semester of 2020 the commercial conflict between both countries began, since Panama informed the National Animal Health Service (SENASA), an agency of the Ministry of Agriculture and Livestock of Costa Rica (MAG), about the decision not to extend the authorization for export to a list of Costa Rican establishments previously authorized and that have been commercializing in the Panamanian market for many years.

Because the trade dispute has not been resolved, the Costa Rican government decided to send a request to open the consultation mechanism to the World Trade Organization (WTO) on January 11, 2021.

In this context, the National Association of Poultry Farmers of Panama (Anavip) issued a statement on January 18, in which they support the actions of the Panamanian government.

"We support the National Government for ensuring that our phyto-sanitary and zoo heritage is respected and protected, applying the national sanitary regulations in force," explains the document issued by the union.

You may be interested in "Meat: Forecast for the Panamanian Market"

The statement adds that "... this sanitary rigor must always be applied with the primary objective of seeking the food safety of our consumers with attachment to what this reality demands."

Anavip reiterates the need to maintain a healthy, fair, symmetrical, reciprocal and sustainable commercial flow, always recognizing the need for commercial exchange of complementary products so that both countries are benefited, the document concludes.

 

https://www.centralamericadata.com/en/article/main/Trade_PanamaCosta_Rica_Blockade_Gains_Support

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Panama Reopens Land Borders

The authorities decided to reopen the land borders to the transit of persons, who will be required to undergo a PCR or antigen test with a negative result for covid-19 within 48 hours of entering Panamanian territory.

Friday, January 29, 202

In accordance with the provisions of Executive Decree No. 61 of January 8, 2021, issued by the Ministry of Health, the National Immigration Service announced the reopening of land borders for the entry and exit of nationals of the Republic of Panama, residents and foreigners who are in its territory, informed the National Immigration Service.

Check out the "System for monitoring markets and economic situation in the countries of Central America" of CentralAmericaData.

The official statement dated January 29, 2021 states that "... the mentioned Executive Decree establishes the sanitary measures for nationals, residents and foreigners entering the country, while the state of National Sanitary Emergency is maintained.

Article two of this Executive Decree establishes that nationals of the Republic of Panama, residents and foreigners who intend to enter the national territory, must comply with the biosecurity measures recommended by the Ministry of Health, and present at the air, sea and land entries the certificate of swab test (PCR) or antigen, prior to entering the country, with a negative result to COVID-19 with a maximum of 48 hours.
"

The National Immigration Service indicates that the provisions of the Executive Decree No. 61 of the Ministry of Health is in force since its promulgation in the Official Gazette No. 29193-C, of January 8, 2021, and under this provision, has proceeded with the reopening of land borders for entry and exit of nationals and foreigners residing in the country, concludes the statement.

 

https://www.centralamericadata.com/en/article/main/Panama_Reopens_Land_Borders

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Trade: Costa Rica and Panama Begin Dialogue

In order to overcome the trade conflict resulting from the blocking of the entry of animal products from Costa Rica into the Panamanian market, both nations have started a dialogue.

Friday, February 12, 2021

The trade conflict between the two countries began in July 2020, when Panama informed the National Animal Health Service (SENASA), an agency of the Costa Rican Ministry of Agriculture and Livestock (MAG), of the decision not to extend export authorization to a list of previously authorized Costa Rican establishments that have been trading in the Panamanian market for many years.

Since the trade dispute has not been resolved, the Costa Rican government decided to send on January 11, 2021 a request to open the consultation mechanism to the World Trade Organization (WTO).

After the WTO became aware of the case, the authorities of both countries decided to initiate a dialogue process to overcome the conflict.

Laestrella.com.pa reports that "... high authorities of Panama and Costa Rica are meeting today, Friday, February 12, in Paso Canoas, to discuss possible ways to solve the differences arising in relation to bilateral trade, mainly in agricultural products, official sources informed."

The trade dispute affects different types of Costa Rican livestock establishments, including dairy and dairy by-products, fish feed, beef, pork, processed poultry and sausages.

Source: laestrella.com.pa

 

https://www.centralamericadata.com/en/article/main/Trade_Costa_Rica_and_Panama_Begin_Dialogue

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