EXECUTIVE SUMMARY PANAMA Among the many environmental problems facing the country, one can highlight an increase in poverty, deterioration in quality of life, an increase in water, soil and air pollution, deforestation, soil erosion and degradation, an increase in solid and toxic waste and a loss of biological diversity. Environmental management of this country is fraught with restrictive factors such as institutional weakness, lack of legal instruments, limited civic participation, a low level of environmental awareness and little environmental culture. The Caribbean Sea area differs from the Pacific coastline in terms of quality of life and biological diversity. The poverty indices on the Caribbean coast are higher than in other rural areas of the country. Approximately 40% of the population in this area lives in poverty, with extreme cases amounting to 20%. A large section of the Caribbean coast is wooded. There is a great amount of diversity and the zone is administered by persons with ancestral and traditional techniques which are being used even today in the exploitation and preservation of natural resources. The Caribbean Sea and its coastal areas are very important resources for the Republic of Panama, where activities that contribute significantly to the economy of the country, such as maritime transportation, ecotourism and fishing, are carried out. Small-scale fishing of non-traditional invertebrate species contributes to the economy and to the life of these indigenous communities, as well as to sectors of the Caribbean coastal population that are immersed in poverty. The soils in the region are largely infertile latosols and there is little arable land. Agricultural activities are carried out along the coast, predominantly intensive cultivation of bananas on the river banks, with heavy use of agrochemicals, and largescale cattle rearing. There is also extensive biological diversity as well as conservation of the largest portion of the country’s natural forests. Given this reality, there is an urgent need for integrated environmental management, by the relevant authorities, of economic activities carried out in the area. Several standards exist for regulating pesticides in the health, agricultural and environmental sectors. Additionally, permission must be sought from other entities including the Safety Bureau. However, there is very little enforcement of compliance. Primary control for the use of pesticides lies with several State entities such as MIDA, MINSA and ANAM. In the area of marine transportation, the AMP and the ACP fulfil major roles. Standardization is the responsibility of the MICI/COPANIT as well as ANAM. Taxation of licensed retail outlets is carried out by CLICAC, an entity whose focus is on ensuring that instructions are available in Spanish as well as on the expiry date of the product. Isolated components of the tax system are counterproductive in certain cases, although this system has enabled the detection of pesticides uses that are in breach of what is stipulated in the permit. 2 Owing to coordinated inter-institutional work, standards have been established to regulate the prohibition of sixty-one protectores de cultivos as well as to enforce restriction of some twenty pesticides that are considered as highly dangerous to health and the environment. Pesticides have played an important role in agricultural activities and in public health. Damage caused to crops by undesirable organisms are of the order of one hundred bilboas per year. The use of pesticides has had positive economic impacts on 30-100% of crops and has saved many human lives from tropical illnesses transmitted by insects. Among the many reasons for the use of pesticides in Panama, the most important are the influence of the industrial/commercial pesticides sector, the use of technology in the cultivation of monocrops as well as the climatic conditions of the inter-tropical zone with high temperature and rainfall. The use of pesticides in the country amounts to about 7 million metric tonnes per year. Stabilization of the quantities of pesticides in use in Panama has been observed, with an annual variation of 5-11% over the last few years. Substitution by low-dose substances and reduction in the growth of cultivated areas are determining factors in this phenomenon. The quantity of active material used is less than 2 million metric tonnes per year. In 1999, the protectores de cultivos with the highest toxicity in use in agriculture amounted to 3,500 metric tonnes of formulae; this figure does not include oils and other additives. The most significant group includes herbicides 2, 4-D, glifosato, propanilo, paraquat and fluazifop, fungicides of the EBDC type such as mancozeb and clorotalonilo as well as the insecticides terbufos, malation, monocrotofos and metamidofos. In the 1997-1999 biennium, herbicides were the most widely used (40.6%), followed by fungicides (30.5%) and insecticides (18.3%) Approximately 200 formulae are used, with 110 being the most frequently used; active substances number 59 of a total of 120. In general, pesticides enter the Republic of Panama from the United States, Europe and Japan as well as from Central America, Asia and Africa. 59% arrives by the Caribbean sea followed by land transportation through northeast Central America. Local manufacturing utilizes 470 metric tonnes of active material to produce an estimated 1,370 metric tonnes from 20 formulae with 15 active/year, of which 81.7% goes to agriculture. Exports are not very significant in comparison to imports. The permanent presence of pesticides in the country was estimated at 2-3 thousand metric tonnes of commercial products at the national level, the largest quantities being during the pre-planting periods. 3 The gross consumption rate of agricultural pesticides was calculated for the 199799 biennium showing a value of 0.97-1.27 kg/capita. In terms of active substances, the consumption rate is 0.5 kg/capita for agricultural use and 0.7 kg/capita for all pesticides used at the national level. The regional consumption rate can be very high and may reach values of >7 kg/person, including in the Caribbean coastal zones. The rates of pesticide use per unit of soil varies greatly depending on the crop, place, the technological level of the producer and the climate. These can range from 1-75 kg/hectare/year. In banana production in Changuinola the rate of application of pesticides amounts to 75kg/hectare/year. There are approximately one thousand pesticides retail outlets in Panama and there is frequent movement of these substances via the national road network. In some areas there is greater movement of these dangerous substances, especially by ground transport. Crops that utilize the highest quantities of pesticides are fruits such as banana, melon, pine and citrus, vegetables, grains such as rice and corn, and sugar cane. On the Caribbean coast, the most important crops are banana, rice, cocoa and fodder. An estimated 50 active substances are applied in the Caribbean zone in the above-mentioned areas. Of special environmental interest are piretroid insecticides, which impact strongly on hydro-biological sources. Also, public health makes important use of these substances on the Caribbean coast. Pesticides are applied with the use of spraying equipment (spraying cans carried in knapsacks, on tractors, in aircrafts), manual labour and special applicators. Pesticides are available in concentrated form to be applied with water or oils or as a mist, solid granular form, bags, etc. Waste disposal from these applications do not currently follow a well known procedure; a portion is deposited in dumps on farms and the remainder scattered around farms. Large companies recycle, reuse or return the remainder of the pesticides to suppliers. This is a matter deserving of immediate attention; it is therefore recommended that a Control Centre be established. The institutional infrastructure for controlling the use of pesticides and the contamination emanating from such use is weak and requires strengthening to substantially improve the use of these products. A number of permits for the use and management of pesticides must be obtained from several institutions. There are barriers to changing and improving the management of pesticides and these exist at the institutional, economic, cultural, social and technological levels. Among the elements needed for a national programme to reduce the drainage and improper use of pesticides is the organization of an inter-institutional system, with the agreement of the competent authorities. Possible participants are MINSA, MIDA, ANAM, AMP, ACP and other decentralized entities including municipalities and local authorities. Required at the technical level are training, technical assistance and strengthening of environmental research capacity, including the collection of samples, analysis of designs in environmental matrices and general monitoring of pollutants. 4 Support is needed for cleaner production activities and improving existing programmes as well as creating new programmes within the framework of the interinstitutional environmental system. Among the interesting economic instruments that have been recommended are subsidies for discharges and standards for environmental loads, which should be gradually implemented. Levels and permits can also contribute to improving the problem of pesticides. Possible incentives mentioned are tax relief for sums invested in the treatment of waste water, a general agreement on the Caribbean coastal zone and a bank loan facility for producers who use little or no pesticides. Any proposal to improve the management of pesticides and reduce their seepage through run-offs from non-specific land-based sources into the Caribbean Sea should include the adjustment of regulatory policies, better definition and co-ordination of responsibilities and institutional competencies, activation or establishment of an Interinstitutional Environmental System, concrete actions to reduce the adverse environmental effects of pesticides, better awareness of the environmental risk for the Caribbean sea coast system, capacity and training in better agricultural practices and in the integrated management of pests, significant reduction (1/3) in the amount of pesticides used in the country in the next decade and the development of activities to decontaminate critical areas and the elimination of dangerous wastes as established by Law. A National Programme of Action with regard to pesticides requires a major financial input and cannot be funded solely by the State; funding should be sought from external and domestic sources, from the private sector and international bodies. Public as much as private entities, including representation from industry and environmental NGOs are interested in participating and supporting a National Plan of Action to reduce seepage through run-off of pesticides from non-specific land-based sources into the Caribbean Sea.