While San Jose insists that a World Trade Organization (WTO) ruling vindicated its position, the Panamanian government responds that it will use all international mechanisms to defend its producers, although it left the door open to further negotiations between the two countries.

Fernandez stated that she is willing to talk with the government of President Jose Raul Mulino to find a solution to the trade conflict.

She said on national television, “I am going to be clear about this. I do not intend to allow, and I will do everything at hand, to ensure that Panama, God willing, complies with its obligations.”

The newly elected president questioned the restrictions imposed by Panama on Costa Rican products such as dairy, meat, and fresh fruits and vegetables, arguing that these measures damage the historic relationship between the two countries.

The report stated that Costa Rica reached a favorable ruling in December 2024 from the WTO in its dispute with Panama. However, the Panamanian government appealed that decision in January 2025, so the process remains open.

The trade dispute arose from restrictions imposed by Panama between 2019 and 2020 on the import of several agricultural products, citing sanitary concerns and the need to protect the domestic market.

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