Panamanian food exporters are actively seeking access to 21 international markets through 52 separate regulatory processes. This push for market diversification comes as a longstanding trade conflict with neighboring Costa Rica continues to block key agricultural exports. The Panamanian Food Safety Authority (APA) is managing the requests for meat, dairy, seafood, and poultry products.
At least eight Panamanian plants remain blocked from exporting to Costa Rica. Panama has reciprocated by restricting entry for 26 Costa Rican facilities, primarily affecting meat and dairy goods. This bilateral dispute, which intensified between 2019 and 2020, has forced local companies to urgently find alternative destinations for their products.
Rosmer Jurado, president of the Panamanian Union of Industrialists, framed the conflict as a result of an unbalanced trade relationship. He argued that Costa Rica historically exported far more to Panama without granting equivalent conditions for Panamanian goods.
“The lack of progress led to a stalemate that now forces both countries to resume direct dialogue,” Jurado stated. [Translated from Spanish]
Companies like Manuel E. Melo S.A., Grupo Carnes de Coclé, and Grupo Mangravita have lost their regular export channels. Industry leaders warn the impasse carries both commercial and political weight, damaging producers and consumers in both nations.
WTO Ruling Leaves Legal Vacuum
A December 2024 World Trade Organization ruling initially favored Costa Rica. The WTO found Panama’s restrictions lacked sufficient scientific justification. Panama’s subsequent appeal, however, entered a legal limbo due to the WTO’s inoperative appellate body. This unresolved international complaint has increased pressure for a bilateral solution.
The private sector in both countries now pushes for a direct agreement to rebuild trade confidence. They seek to avoid further losses while the multilateral system remains stalled. This scenario has made Panama’s market diversification strategy not just an opportunity but a necessity for its agro-industrial sector.
Bianca Morán, president of the Panamanian Exporters Association (APEX), emphasized the practical cost of delays. She called for faster approval processes for sanitary permits and plant certifications.
“Bureaucratic delays reduce competitiveness and raise costs for companies trying to place Panamanian food abroad,” Morán explained. [Translated from Spanish]
Her comments highlight a critical bottleneck. Even with new market interest, slow approvals hinder exporters from capitalizing on immediate opportunities.
Detailed Breakdown of Active Export Processes
The APA’s 52 active processes target a geographically diverse set of countries. The list includes major Latin American economies like Argentina, Brazil, Colombia, and Mexico. It also covers Caribbean nations such as Cuba, Jamaica, and the Dominican Republic.
Official data shows 11 processes are for meat products, 10 for dairy, 13 for seafood, and 17 for poultry. One process covers miscellaneous goods. Sixteen Panamanian plants have already received approval in various markets. Many others, however, remain in intermediate stages.
Some companies are completing detailed questionnaires from foreign health authorities. Others await confirmation for on-site inspections or simply need a formal response to their initial application. Each pending step represents a delayed business opportunity.
The Dominican Republic exemplifies both potential and frustration. A recent business mission there generated $13.2 million in deals. Final plant approvals and certifications are still pending though. This bureaucratic delay could slow the growth of what appears to be a promising new trade relationship.
Regulatory Divergence at the Heart of the Dispute
The prolonged conflict with Costa Rica has exposed deep regulatory differences, particularly in sanitary standards. This area has been a historical source of tension and retaliatory measures between the two Central American neighbors. Resolving these technical disparities is now seen as key to any lasting trade normalization.
For Panamanian exporters, the closed Costa Rican market for sensitive items creates immediate pressure. It limits their options and makes the success of new market openings more urgent. The strategy is not just about growth but about survival for some sectors.
Panama’s aggressive pursuit of new partners reflects a broader shift in its trade policy. The country is leveraging its food safety authority to act as a commercial diplomat. The goal is to build a more resilient and diversified export portfolio less vulnerable to bilateral disputes.
Success in these efforts could reshape Panama’s agricultural trade map. It would reduce dependency on any single regional partner and open new revenue streams. The ongoing work at the APA is therefore a critical component of national economic strategy.
Industry observers note that progress in other markets, like the recent developments with the Costa Rica project, shows Panama’s broader infrastructure commitment to trade. Efficient ports and logistics are meaningless, however, without the sanitary permits to move goods across borders.
The coming months will test the efficiency of Panama’s regulatory diplomacy. Exporters are watching to see how many of the 52 processes convert into actual, operational market access. Each new approval will provide a small buffer against future trade uncertainties.