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Costa Rican foreign minister urges end to Panama trade blockade
🇵🇾 Paraguay /Elections & Politics

Costa Rican foreign minister urges end to Panama trade blockade

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Costa Rica's foreign minister urges Panama to resolve the commercial blockade on Costa Rican products.
  • The blockade, affecting agricultural exports, has been ongoing for six years and is a priority for the new Costa Rican government.
  • Both nations are working to reactivate dialogue and de-escalate the dispute through joint working groups on various common interests.

Costa Rican Foreign Minister Manuel Tovar has urgently called for an end to the commercial blockade that Panama maintains on Costa Rican products, describing the situation as a "priority" for the new government. Tovar expressed deep concern over the "systemic protectionism" imposed by Panama on Costa Rican agricultural exports, which began six years ago.

It is a situation that pains us deeply.

— Manuel TovarCosta Rican Foreign Minister Manuel Tovar expressed his deep concern about the commercial blockade imposed by Panama on Costa Rican products.

Speaking in Brussels, Tovar explained that the dispute has escalated to the World Trade Organization (WTO), where a ruling favored Costa Rica. However, Panama's appeal has left the resolution in a state of limbo, exacerbated by the paralysis in the WTO's appeals system. "This perpetuates the problem and puts the definitive solution... in limbo, a dispute that has caused much pain to the Costa Rican family," Tovar stated, estimating losses in the hundreds of millions of dollars for local meat and dairy producers.

The minister highlighted that the dispute is particularly painful given the friendly relations between the two "brotherly" nations. It also occurs amidst a global rise in protectionism and disruptions to global supply chains, compounded by U.S. tariff measures. To address this, Tovar met with his Panamanian counterpart, Javier Martínez-Acha, in New York last week. They agreed to advance a joint agenda covering security, migration, customs, trade, and diplomatic cooperation.

This perpetuates the problem and puts the definitive solution... in limbo, a dispute that has caused much pain to the Costa Rican family.

— Manuel TovarTovar described the impact of the ongoing trade dispute, highlighting the financial losses and the prolonged uncertainty due to the WTO's stalled appeals process.

"A commercial dispute of this nature is in no one's interest," Tovar emphasized, noting that the only steps taken so far toward resolution involve establishing working groups to address shared interests. Costa Rica's new president, Laura Fernández, echoed these sentiments, acknowledging the historically good relationship with Panama but stating that the "commercial blockade" cannot be ignored.

A commercial dispute of this nature is in no one's interest.

— Manuel TovarThe Costa Rican Foreign Minister emphasized the mutual detriment of the ongoing trade conflict between Costa Rica and Panama.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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