Panama’s government has signaled willingness to discuss its long-running restrictions on Costa Rican beef, dairy, poultry, fruits and vegetables, but cattle producers immediately drew a firm line against any imports.
Minister of Commerce and Industries Julio Moltó said this week that President José Raúl Mulino’s administration is prepared to hold talks with Costa Rica’s new president, Laura Fernández Delgado, but only “under the same rules” that apply equally to both countries. Panamanian ranchers responded within hours. Samuel Vernaza, president of the National Association of Cattle Ranchers, said that not one gram of meat or dairy products from Costa Rica will enter the country until the situation is resolved.
The exchange marks one of Fernández’s first foreign-policy tests since she took office. It also underscores persistent tensions in bilateral agricultural trade. Panama has blocked imports from about 26 Costa Rican processing plants since June 2020, citing sanitary and phytosanitary concerns.
The restrictions cover beef, pork, poultry and dairy products as well as certain fruits and vegetables, including strawberries, pineapples, plantains and bananas. Officials have framed the measures as necessary to protect Panama’s livestock health status and as a response to similar restrictions Costa Rica once placed on Panamanian products.
A World Trade Organization panel ruled on Dec. 5, 2024, that Panama’s actions violated the Agreement on the Application of Sanitary and Phytosanitary Measures. Panama appealed the decision in January 2025. The restrictions remain in force while the appeals process continues.
Moltó stressed that Panama is not acting arbitrarily. He said the country stands ready to sit down as “friends and brothers” provided the rules give equal opportunities to producers on both sides. He added that Panama’s productive sector deserves the same respect Costa Rica demands for its own.
Vernaza, who also heads the Association for the Defense of Panamanian Livestock, insisted the issue must be settled on technical, not political, grounds. He warned that no agreement can override Panama’s sanitary standards or jeopardize the country’s disease-free status.
The dispute has roots in earlier frictions dating back more than a decade. Trade in these product categories has remained limited, with Panama maintaining that its measures follow international guidelines from the World Organisation for Animal Health and WTO rules. Ranchers provided technical input to Panama’s defense during the WTO proceedings.
Costa Rican officials have pushed for direct presidential-level talks to reopen the market for their agricultural exports. Fernández has described the restrictions as an obstacle that should be addressed promptly between the two neighbors.
Panama has not lifted any of the blocked plant approvals. Officials say any resolution must await the final WTO outcome or a bilateral understanding that meets the equal-rules standard Moltó outlined.
For now the measures stay in place. Both governments have left the door open to further contact, but ranchers have made clear their position will not change until the underlying sanitary and reciprocity issues are settled.
