An arbitration panel of the World Trade Organization (WTO) ruled in favor of Costa Rica in its trade dispute with Panama over restrictions imposed in 2019 and 2020 on the importation of key Costa Rican agricultural products. “The Panel recommends that Panama bring its measures into conformity with its obligations under the Agreement on Sanitary and Phytosanitary Measures,” the group of experts stated.
The litigation addressed restrictions on Costa Rican exports such as strawberries, which Panama banned from importation in mid-2020; dairy products, beef, pork, poultry, and derivatives (including sausages), after Panama failed to renew sanitary approvals for these products and requested the process restart.
Regarding pineapples, exports were blocked in 2019, pending new certifications for managing the “pink cochineal” pest. Similarly, trade in bananas and plantains was paralyzed that same year when the Panamanian government announced a review of its control standards. Panama’s primary argument, that its restrictive measures were provisional due to “insufficient scientific evidence” from Costa Rica concerning strawberries, pineapples, bananas, and plantains, was rejected by the WTO experts.
It was repeatedly emphasized that Panama’s measures “are not based on scientific principles and are maintained without sufficient scientific evidence.” For dairy and meat products, the experts concluded that Panama’s actions violated the Agreement on Sanitary and Phytosanitary Measures.
Meanwhile, Costa Rica’s arguments were upheld on all points by the WTO panel. The expert report must still be adopted by the WTO within 20 to 60 days. The trade dispute with Panama at the WTO lasted three years. Costa Rica filed the case in 2021, arguing that Panama’s measures were unjustified under WTO agreements. Hearings were held in late 2022, and the process has since continued.
Costa Rica aims to recover market access and resolve trade tensions with Panama, a country it has historically maintained strong relations with. “I am confident that the outcome will favor Costa Rica’s interests. It is a contentious dispute with a friendly country. It should not happen,” said Manuel Tovar, Minister of Foreign Trade (COMEX).
