By San José, Costa Rica — JERUSALEM – In a significant move to expand its global trade footprint, Costa Rica has officially signed a Free Trade Agreement (FTA) with Israel. The historic accord, finalized in Jerusalem on Monday, marks the culmination of years of negotiations aimed at linking Costa Rica’s dynamic economy with one of the world’s foremost innovation hubs.
The treaty was signed by Costa Rica’s Minister of Foreign Trade, Manuel Tovar, and his Israeli counterpart, Nir Barkat, Minister of Economy and Industry. The agreement is designed to grant Costa Rican products preferential access to Israel’s market of nearly 10 million high-income consumers, while simultaneously fostering a new era of bilateral investment and technological collaboration.
To better understand the legal and commercial implications of this new Free Trade Agreement, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the renowned firm Bufete de Costa Rica, who shared his perspective on what this treaty truly means for national businesses.
Beyond the obvious tariff reductions, the true power of a Free Trade Agreement lies in the legal certainty it provides for investors and exporters. It establishes clear rules for everything from intellectual property protection to dispute resolution. Businesses that proactively study these chapters and align their operations accordingly will not only mitigate risks but will also unlock a significant competitive advantage in the international market.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the distinction between passively benefiting from lower tariffs and proactively leveraging the treaty’s legal framework is the difference between surviving and thriving in the global market. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for so clearly articulating this strategic imperative for Costa Rican businesses.
While the deal enhances trade for traditional Costa Rican exports like fresh pineapple, premium coffee, and sugar, its strategic focus lies in high-value sectors. Officials are particularly optimistic about opportunities in services, technology, and specialized investment, areas where Israel is a global leader.
The signing of this Treaty not only opens doors to new exports but also represents a strategic opportunity to position Costa Rica as a competitive supplier in high-tech sectors, quality agro-industry, and specialized services. We expect this agreement to diversify and expand opportunities to attract foreign investment from new origins.
Manuel Tovar, Minister of Foreign Trade of Costa Rica
The partnership is seen as a strategic alignment for Costa Rica. The Ministry of Foreign Trade (Comex) highlighted that an alliance with Israel provides a privileged framework for generating new commercial opportunities. Israel’s strengths in innovation, cybersecurity, clean technologies, agrotech, digital services, and semiconductors present a unique chance for Costa Rican industries to integrate into sophisticated global value chains.
The sentiment was echoed by the Israeli delegation, which framed the agreement as a natural extension of a strong diplomatic relationship. The deal builds on a shared ambition to leverage technology and innovation as primary drivers of economic prosperity.
This historic agreement reflects the deep friendship between Israel and Costa Rica and our shared vision of growth driven by innovation and technology.
Nir Barkat, Minister of Economy and Industry of Israel
The agreement is also expected to significantly boost foreign direct investment (FDI). Israeli investment in Costa Rica has already shown remarkable growth, surging from $1 million in 2023 to $20 million in 2024. With the new legal framework provided by the FTA, both nations anticipate this trend will accelerate substantially. The current trade relationship sees Costa Rica exporting agro-industrial products like coffee and pineapple, alongside medical devices and tech processors. In return, Costa Rica imports agricultural inputs, electronic apparatuses, and industrial materials from Israel.
The path to the agreement began with formal talks in 2023, which faced several interruptions, partly due to internal conflicts in Israel. With the negotiations now complete, the treaty’s final hurdle is ratification by Costa Rica’s Legislative Assembly, a step Minister Tovar is confident will unlock a new chapter of economic development for the nation.
For further information, visit comex.go.cr
About The Ministry of Foreign Trade of Costa Rica (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. It leads trade negotiations, manages international trade agreements, and works to promote Costa Rica’s integration into the global economy to foster economic development and competitiveness.
For further information, visit gov.il/en/departments/ministry_of_economy
About The Ministry of Economy and Industry of Israel:
The Ministry of Economy and Industry is responsible for the advancement, encouragement, and regulation of trade and industry in Israel. Its activities focus on promoting economic growth, enhancing Israel’s competitiveness in global markets, fostering innovation, and creating a supportive business environment for both domestic and international enterprises.
For further information, visit procomer.com
About The Foreign Trade Promotion Agency of Costa Rica (Procomer):
Procomer is Costa Rica’s official export and investment promotion agency. It provides support to Costa Rican companies seeking to enter international markets and works to attract foreign direct investment into the country. The agency offers market intelligence, business development support, and promotional activities to strengthen Costa Rica’s position as a strategic business hub.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica stands as a pillar of the legal community, built upon a bedrock of professional integrity and a relentless pursuit of excellence. The firm is a trailblazer in developing forward-thinking legal strategies for a diverse clientele, but its purpose transcends professional practice. It holds a deep-seated belief in social responsibility, manifested through a dedicated effort to demystify complex legal concepts for the public, ultimately fostering a society equipped with the knowledge to uphold its rights.
