Panamanian President José Raúl Mulino announced Thursday that his government has suspended plans to sell electricity to Costa Rica.He linked the decision directly to recent public statements by Costa Rican President Laura Fernández amid a longstanding trade dispute over agricultural products. Mulino spoke during his weekly press conference today in Panama City,
“I know they are requesting greater access to Panamanian energy to be sold to Costa Rica because of their own needs,” Mulino said. “That request is being very carefully evaluated by us. But for now, there will be no sale of energy to Costa Rica. It’s that simple.” Mulino instructed Minister of Commerce and Industries Julio Moltó to convey the decision to Costa Rican authorities.
In recent days President Fernández has pressed for resolution of the dispute, publicly directing her foreign minister, Manuel Tovar, to pursue international actions against Panama’s restrictions on Costa Rican imports. The restrictions, in place since 2019 and 2020, block entry of Costa Rican fruits such as strawberries, pineapples, bananas and plantains, as well as dairy products, beef, pork, poultry and processed meats including sausages. Panama has cited sanitary and phytosanitary concerns.
A World Trade Organization panel issued a report in December 2024 that favored Costa Rica. Panama appealed the ruling in January 2025. The matter remains unresolved. Mulino said he was surprised by Costa Rica’s reaction. He noted that Panamanian and Costa Rican officials had already held meetings to discuss the proposed energy sales.
“International relations are based on great prudence,” Mulino said. “It is not through a pulpit, a stage or a press conference that statements should be made that directly affect the relationship between two countries, especially neighbors and friends.”
He added that the foreign policy of countries should be conducted with discretion, moderation and respect. Mulino emphasized Panama’s policy of reciprocity with Costa Rica. “This is an important issue for Costa Rica, but it is also important for Panama, and my duty is to protect Panamanians,” he said.
Panama maintains that its measures protect local agricultural producers. Costa Rican officials have described the restrictions as a blockade that harms their exporters. Fernández has called resolving the conflict a priority for her administration and has warned that her government will not accept any imbalance in the commercialization and export of Costa Rican products.
Mulino said Costa Rica has blocked countless Panamanian companies for more than 10 years. The two countries share a border and maintain close economic ties, including through the regional electricity interconnection grid known as SIEPAC. Panama has exported limited amounts of electricity to Costa Rica in the past, but no details were released on the scale of the suspended plans.
Mulino did not specify when or whether the energy sales could resume. He said Panama would continue to evaluate requests under the principle of reciprocity. As of yet, no official response from the Costa Rican government to Mulino’s announcement had been reported.
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