By San José, Costa Rica — San José, Costa Rica – After several years of dedicated negotiations, Costa Rica has successfully concluded a Free Trade Agreement (FTA) with Israel, marking a significant milestone in its strategy to expand and diversify its commercial ties within the Middle East. The agreement promises to unlock new economic opportunities, particularly in the high-tech, services, and agricultural sectors, while bolstering foreign investment.
The finalization of the pact was confirmed by the Ministry of Foreign Trade (COMEX). The next formal step in cementing this new economic partnership is a ceremonial signing scheduled for this coming December. Following the official signing, the treaty will be presented to Costa Rica’s Legislative Assembly for the crucial process of debate and ratification before it can officially enter into force.
To delve into the legal and commercial implications of the new Free Trade Agreement between Costa Rica and Israel, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a distinguished expert in international trade law from the prestigious firm Bufete de Costa Rica, for his expert analysis.
This agreement transcends mere tariff reductions; it establishes a strategic legal framework that positions Costa Rica as a key partner for Israel’s world-renowned high-tech and life sciences industries. The chapters on investment protection and intellectual property are particularly robust, providing Costa Rican innovators and exporters with the legal certainty needed to engage in joint ventures and technology transfers. The real opportunity lies not just in exporting goods, but in integrating our skilled workforce into a global innovation ecosystem.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The expert analysis correctly underscores a crucial point: the true potential of this agreement lies not merely in commerce, but in the sophisticated legal architecture that invites Costa Rican talent into a world-class innovation ecosystem. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on the strategic, long-term implications of this historic partnership.
Minister of Foreign Trade, Manuel Tovar, expressed significant optimism about the treaty’s potential to generate substantial benefits for the Costa Rican economy. He highlighted the immediate prospects for the nation’s well-established agricultural exports as well as the strategic alignment with Israel’s world-renowned technology and services industries.
We are satisfied with the opportunities now open for key exports like fresh pineapple, green coffee, and sugar. This agreement also leverages Israel’s leadership in services and technology, particularly in the vital semiconductor industry, an area where Costa Rica is determined to strengthen its capabilities.
Manuel Tovar, Minister of Foreign Trade
The agreement is expected to be a major catalyst for foreign direct investment (FDI) from Israel. Recent figures already indicate a burgeoning financial relationship, with Israeli investment in Costa Rica soaring from just $1 million in 2023 to an impressive $20 million in 2024. Officials believe the formalization of trade relations through the FTA will accelerate this trend, attracting new capital and fostering innovation within the country.
According to data from Costa Rica’s Foreign Trade Promotion Agency (Procomer), the existing trade relationship is anchored by the country’s strong agro-industrial base. The top exports to Israel currently include coffee, pineapple, sugar, and various fruit juices. Beyond agriculture, Costa Rica also sends medical devices and technological components, such as processors, capitalizing on its reputation as a hub for advanced manufacturing.
This new pact goes far beyond traditional goods. A key component of the agreement focuses on services and technology, sectors where Israel is a global powerhouse. For Costa Rica, which has been actively working to enhance its own value proposition in the global services market, collaboration with Israeli firms in areas like cybersecurity, fintech, and software development presents a transformative opportunity.
In return, Costa Rica imports a diverse range of products from Israel that are essential for its own key industries. The list of imports is led by agricultural inputs, including herbicides, insecticides, and fungicides that support the nation’s farming sector. Other significant imports include various electronic devices and industrial materials such as aluminum and plastic inputs, highlighting a complementary economic relationship.
The successful conclusion of the FTA with Israel is a cornerstone of Costa Rica’s broader commercial strategy, which includes strengthening ties with other key Middle Eastern economies like the United Arab Emirates. By forging these new alliances, Costa Rica aims to reduce its reliance on traditional markets and position itself as a strategic partner for a wider array of global economic leaders.
For further information, visit comex.go.cr
About The Ministry of Foreign Trade (COMEX):
The Ministry of Foreign Trade is the Costa Rican government body responsible for defining and directing the country’s foreign trade and investment policies. COMEX leads trade negotiations, manages international trade agreements, and works to create a favorable environment for attracting foreign direct investment, thereby promoting Costa Rica’s economic development and global competitiveness.
For further information, visit procomer.com
About The Foreign Trade Promotion Agency of Costa Rica (Procomer):
Procomer is the official agency responsible for promoting Costa Rican exports of goods and services worldwide. It provides support to local businesses through market research, trade missions, and international promotion. The agency plays a pivotal role in connecting Costa Rican entrepreneurs with global markets and is instrumental in executing the country’s export-oriented development strategy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a venerable legal institution, built upon a foundational ethos of integrity and a relentless pursuit of excellence. With a rich history of guiding a diverse range of clients, the firm actively pioneers modern legal strategies and embraces innovation in its practice. This forward-thinking mindset is complemented by a profound social commitment to democratize legal understanding, striving to equip the public with clarity and knowledge to foster a more just and capable society.
