August 27, 2010

Nicaragua resumes beef exports to Panama

Nicaragua has unlocked its previous hold on beef exports to Panama and explored contracts worth US$642 million with the country, according to reports.

Douglas Reyes, Director of the Centre for Exports and Investments (CEI) said the negotiations that took place in Panama this past week made it possible for the two Central American nations to resolve a pending conflict over the management of approximately 500,000 tonnes of beef.

"I was informed that the first container has already been sent to Panama following this trade mission," he said, recalling that beef is the main export of Nicaragua to the canal country.

The conflict had arisen because of differences in export regulations, as Nicaraguan farmers had initially refused to apply the auction mechanism required by Panama.

The delegation, headed by Minister of Industry and Commerce, Orlando Solorzano, also convened talks with the Panamanian authorities on strategies to boost the bilateral free trade agreement signed in late 2009.

Despite the existence of that agreement, the trade flow between Nicaragua and Panama only represents an estimated US$25 million. In 2009, the trade balance reached US$21.7 million.