Costa Rica to droop tariff advantages for Panamanian merchandise amid commerce dispute By Reuters

SAN JOSE (Reuters) – Costa Rica will droop tariff advantages for Panamanian merchandise, the nation’s international commerce ministry mentioned on Thursday, marking one other step in a bilateral commerce dispute that began in 2020 and is the topic of a World Commerce Group (WTO) lawsuit.

Costa Rica suspended tariff advantages for its southern neighbor after Panamanian authorities did not adjust to a 2021 ruling regulating tomato commerce between each events, in response to a press release revealed by the ministry which didn’t specify the objects affected or when the suspension can be enacted.

“I hope they perceive … we’re able to go all the way in which,” Costa Rican Commerce Minister Manuel Tovar advised lawmakers on Wednesday.

“Taxing merchandise that arrive by free commerce as a retaliatory measure is an instance of what we’re prepared to do,” he added.

Costa Rica and Panama entered a Free Commerce Settlement (FTA) in 2008.

Authorities from Panama’s Ministry of Commerce and Industries couldn’t be instantly reached for remark.

Panamanian authorities have beforehand said they’re assured each side will discover a answer to resolve the dispute.

Commerce and Industries Minister Federico Alfaro mentioned in a tweet late on Wednesday that each international locations acknowledge the WTO’s competence to resolve the dispute.

Panama is the third largest marketplace for Costa Rican merchandise by worth.

Costa Rica’s imports from Panama totaled $221 million and exports amounted to $603 million in 2021.