Panama City, Panama – President José Raúl Mulino defended his government’s trade restrictions against Costa Rica during his weekly press conference on Thursday. He stated the measures are necessary to protect Panama’s domestic agricultural sector. The response came after Costa Rican President Laura Fernández accused Panama of maintaining a long-term commercial blockade against certain Costa Rican products.
Mulino expressed surprise at the tone Fernández used in her recent statements. He reminded reporters that Panamanian companies faced similar limitations when trying to export to Costa Rica for over a decade. The president emphasized that trade disputes should be handled through proper diplomatic channels.
The conflict centers on sanitary and phytosanitary restrictions Panama applies to specific agricultural goods from Costa Rica. These measures have created significant tension between the two neighboring nations. Both countries have taken their grievances to international bodies seeking resolution.
World Trade Organization Appeal Continues
Mulino confirmed that Panama filed an appeal following a World Trade Organization dispute settlement ruling issued last year. The ruling did not favor Panama’s position. The president stated that former Costa Rican President Rodrigo Chaves personally asked him to drop the appeal.
“I was the most surprised person by the tone used by the Costa Rican president in her recent declarations,” Mulino said during the press conference. [Translated from Spanish]
The president reiterated that Panama will continue its appeal process while keeping the door open for bilateral negotiations. He stressed that international relations require discretion, moderation and mutual respect between neighboring countries.
Panama’s appeal challenges the WTO ruling on Sanitary and phytosanitary measures in Central America. These measures affect products like dairy, pork and certain fruits from Costa Rica. Panamanian officials argue the restrictions protect local farmers from unfair competition.
Energy Negotiations Suspended Amid Trade Tensions
Mulino revealed that Panama is carefully evaluating a Costa Rican request to expand access to Panamanian energy. The president instructed Commerce and Industries Minister Julio Moltó to inform Costa Rican authorities that, for now, there will be no energy sales. This decision adds another layer to the complex Panama-Costa Rica trade relations.
The trade dispute has escalated significantly in recent weeks. Costa Rica’s president publicly accused Panama of maintaining unfair trade barriers. Panama’s president responded by defending his country’s right to protect domestic production.
Both nations have historically maintained strong diplomatic and economic ties. The current tension represents one of the most serious trade disagreements between them in recent years. Agricultural producers in both countries watch the situation closely.
The World Trade Organization will likely play a key role in resolving this dispute. Panama’s appeal process could take months or even years to complete. Meanwhile, bilateral negotiations remain possible if both sides show willingness to compromise.
Mulino emphasized that Panama remains open to dialogue. He called for respect and moderation in all international communications. The president made clear that protecting Panamanian farmers remains his top priority.
Trade experts suggest both countries could benefit from a negotiated solution. A prolonged trade conflict might harm consumers and businesses on both sides of the border. The coming weeks will reveal whether diplomatic efforts can bridge the current divide.
