Costa Rica Teeters on Brink of Trade Collapse as Customs Gridlock Continues

A state of emergency has been declared in Costa Rica after a crippling cyberattack brought the country’s customs system to a standstill, causing widespread disruptions to international trade and commerce.

A Crisis Unfolds

The attack, attributed to the Conti hacking group, has left thousands of containers stuck in limbo, with customs officials forced to process paperwork manually, resulting in approval delays of up to four days. The situation has sparked warnings from business leaders that Costa Rica is on the brink of a paralysis of international trade, with severe consequences for the economy.

Joint Request for State of Emergency

The Costa Rican Chamber of Foreign Trade (CRECEX), the Chamber of Fiscal and General Deposit Warehouses (CAMALFI), the Costa Rican Chamber of Shippers (NAVE), the Chamber of Exporters of Costa Rica (CADEXCO) and the Association of Customs Agents (AAACR) jointly requested the declaration of a state of emergency, citing the devastating impact on trade.

Devastating Consequences

“We’re facing a crisis that could have far-reaching consequences for our economy,” said Rodrigo Chaves Robles, President of Costa Rica. “We don’t know who’s paying taxes correctly and incorrectly, or how much of the budget is being spent. We’re making salaries blindly based on previous payrolls, which represents a huge challenge for the future.”

Ministry of Finance Affected

The hack has also affected the Ministry of Finance, which is responsible for managing the country’s public finances. The ministry has been forced to implement manual payment procedures, leaving many workers without timely pay.

State of National Emergency Declared

In response to growing protests and unrest, President Chaves Robles signed Executive Decree No. 43542-MP-MICITT, declaring a state of national emergency due to cyberattacks against the public sector in Costa Rica. The decree ordered the Presidency of the Republic to take control of the national response, superseding the National Emergency Commission.

Regional Cybersecurity Infrastructure Lags

The crisis has drawn attention to Latin America’s lagging cybersecurity infrastructure. While 12 countries in the region had national cybersecurity strategies in 2020, that number has since risen to 20.

Long-Term Consequences

As the situation continues to unfold, Costa Rica is bracing for potential long-term consequences, including economic paralysis and reputational damage. The country’s leaders are working to contain the crisis and restore normalcy to trade and commerce, but the road ahead will be challenging.