An arbitration panel of the World Trade Organization (WTO) has ruled in favor of Costa Rica in a trade dispute with Panama regarding the latter's imposition of restrictions on the importation of several Costa Rican agricultural products in 2019 and 2020. The panel has advised Panama to align its measures with its obligations under the Agreement on Sanitary and Phytosanitary Measures.
The dispute encompassed restrictions on a variety of Costa Rican exports, including strawberries, which were banned by Panama in mid-2020, and a range of animal products like dairy, beef, pork, poultry, and their derivatives, following Panama's decision not to renew sanitary approvals. Additionally, the export of pineapples and bananas from Costa Rica was halted due to Panama's review processes for managing pests and control standards.
The WTO panel found that Panama's measures were not scientifically grounded and lacked sufficient scientific evidence, particularly concerning strawberries, pineapples, bananas, and plantains. For dairy and meat products, the panel concluded that Panama's actions violated the Agreement on Sanitary and Phytosanitary Measures.
The trade dispute, which lasted three years, saw Costa Rica challenging Panama's restrictions as unjustified under WTO agreements. The WTO's final report on the matter is pending adoption. Costa Rica's Minister of Foreign Trade, Manuel Tovar, expressed confidence in the outcome favoring Costa Rica and highlighted the importance of resolving trade tensions with Panama, underscoring the historically strong relations between the two nations.
Source: Tico Times