Panama-Costa Rica trade and logistics coordination

Panama and Costa Rica have initiated efforts to improve land cargo transport and bilateral trade coordination. Following a meeting between commerce and foreign trade ministers, both nations committed to exchanging information to expedite the movement of goods and review shared commercial processes within the World Trade Organization.

Despite these diplomatic efforts, logistical hurdles persist. The Chamber of Foreign Trade of Costa Rica (Crecex) has warned that operational frictions, such as restrictions on empty trucks returning from neighboring countries, could increase regional transport costs by 50% to 75%. Crecex has called for a regional system based on freedom of transit and non-discriminatory regulations.

To address connectivity, a proposal for the Panama-David-Border railway project is under review. This project aims to establish a binational logistics hub linking western Panama and southern Costa Rica, potentially complementing Panama’s logistics capabilities with Costa Rican production. A feasibility study for the railway is currently undergoing validation with multilateral organizations.