Mexico agrees to resolve avocado dispute with Costa Rica outside WTO
Staff Writer |
Last weekend, Mexico agreed to postpone the composition of a panel of arbitrators at the World Trade Organization (WTO) to resolve the dispute over the Hass avocado trade with Costa Rica, which opens a new space in which both countries can solve the confrontation.
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This was confirmed by the Costa Rican Foreign Trade Minister (Comex), Dyala Jimenez Figueres, who achieved this agreement with the Mexican Secretary of Economy, Graciela Marquez Colin.
According to Jimenez, the agreement was reached after at least four (face-to-face, phone, and teleconference) meetings between December and last weekend, and it aims at avoiding both countries from investing significant sums of resources in the defense of their positions before the Dispute Settlement Body of the WTO.
According to estimates Costa Rica would invest $ 500,000 to $ 600,000 for its defense in this conflict, a sum that could increase if the arbitrators request additional investigations.
The conformation of panel of experts should begin this week, as there was an agreed meeting for that purpose on Monday, stated the Jimenez Figueres.
Comex is the entity in charge of representing the country in commercial conflicts and must finance the processes. In this case, however, the Ministry of Agriculture and Livestock (MAG), through the State Phytosanitary Service (SFE), is in charge of the country's defense.
In May 5, 2015, the SFE agreed to stop issuing permits to import Hass avocado from nine markets (eight countries and the state of Florida), including Mexico, the world's leading exporter and almost the only supplier in Costa Rica at that time.
Avocado imports from Australia, Spain, Ghana, Guatemala, Israel, Mexico, South Africa, Bolivarian Republic of Venezuela and the State of Florida were banned to protect Costa Rica's phytosanitary status, as those markets were affected by the Sunspot disease, which is non-existent in Costa Rican territory. ■