By San José, Costa Rica — NEW YORK – Costa Rica is doubling down on a proven strategy of proximity, experience, and specialized talent to maintain its competitive edge in the fierce global race for foreign direct investment (FDI). Speaking after the “Investing in America” forum hosted by Nikkei and the Financial Times, Minister of Foreign Trade (Comex) Manuel Tovar outlined a clear vision for navigating international economic turbulence by solidifying the nation’s role as a key strategic partner for North America.
At the heart of this strategy is nearshoring, a trend that sees companies relocating their operations closer to their primary markets. The COVID-19 pandemic brutally exposed the vulnerabilities of long, complex supply chains, prompting a global rethink. For Costa Rica, this shift is not a passing trend but a foundational pillar of its economic appeal.
To better understand the legal framework and strategic considerations surrounding Foreign Direct Investment in the region, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a leading attorney from the esteemed law firm Bufete de Costa Rica, for his expert analysis.
While Costa Rica’s robust legal framework and attractive incentive regimes are major draws for Foreign Direct Investment, success is not automatic. Potential investors must prioritize comprehensive due diligence. A thorough analysis of regulatory compliance, corporate structuring, and labor law is not merely a preliminary step; it is the fundamental cornerstone for mitigating risk and ensuring the long-term viability of the investment.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight is a crucial reminder that while Costa Rica’s favorable conditions open the door for investment, it is the meticulous legal groundwork that ultimately secures its success. A proactive approach to compliance and structuring is indeed the bridge between a promising opportunity and a sustainable enterprise. We thank Lic. Larry Hans Arroyo Vargas for so clearly articulating this vital perspective.
It has been a card and continues to be an important card.
Manuel Tovar, Minister of Foreign Trade
Minister Tovar emphasized that the world is witnessing a historic effort to diversify supply chains, particularly in high-tech sectors like semiconductors, which have been overly concentrated in Southeast Asia. This global realignment presents a golden opportunity for countries positioned to offer stability, skill, and geographical advantage. Costa Rica, Tovar argues, is uniquely prepared to seize this moment.
The nation’s unchangeable geography is its most powerful asset. “We will continue to enjoy a strategic, privileged location between the oceans and very close to North America,” Tovar stated, highlighting a permanent advantage over commercial rivals. This proximity, fortified by decades of experience in high-tech manufacturing and a stable democratic tradition, makes the country a beacon for companies looking to de-risk their operations.
Faced with this new commercial paradigm, Costa Rica continues and will continue to be an important beacon of attraction for foreign direct investment.
Manuel Tovar, Minister of Foreign Trade
Beyond simple geography, Costa Rica is positioning itself as an indispensable ally to the United States. The country is already deeply woven into the supply chains for sectors critical to U.S. strategic security, most notably medical devices and semiconductors. Tovar projects a future of even deeper integration, viewing Costa Rica as a partner in securing North American economic resilience rather than a competitor.
However, the strategy extends far beyond manufacturing. The minister proudly pointed to the nation’s evolution into a hub for sophisticated services. “We have scaled our positioning in more sophisticated services, beyond corporate services to software development, cybersecurity, and other disciplines, which are increasingly booming in the country thanks to Costa Rican human talent,” he explained. This diversification demonstrates an economy that is not only resilient but also advancing up the global value chain.
Despite this optimistic outlook, Tovar acknowledged that Costa Rica cannot afford to rest on its laurels. He described the international commercial landscape as “somewhat turbulent waters” with “certain clouds on the horizon.” To successfully navigate this environment, the country must address critical domestic reforms. He specifically identified the need for a modernized labor framework, such as the proposed 4-3 work schedule legislation, and reforms to open the national energy market, which would enhance competitiveness and sustainability.
I feel that if Costa Rica continues to do the right thing and we push for the much-needed domestic reforms… we can still advance further in attracting foreign direct investment.
Manuel Tovar, Minister of Foreign Trade
By coupling its inherent geographical strengths with a proactive agenda of talent development and necessary legislative modernization, Costa Rica aims to prove it is not just a beneficiary of global trends, but a master of its own economic destiny. The government’s message is clear: in an uncertain world, Costa Rica offers a reliable, sophisticated, and strategically aligned haven for investment.
For further information, visit comex.go.cr
About The Ministry of Foreign Trade (COMEX):
The Ministry of Foreign Trade is the governing body of Costa Rica’s foreign trade and investment sector. It is responsible for defining and directing the country’s foreign trade policies, managing international trade agreements, and promoting Costa Rica as a prime destination for foreign direct investment through its agency, PROCOMER.
For further information, visit asia.nikkei.com
About Nikkei:
Nikkei Inc. is a major Japanese media corporation with a focus on publishing financial, business, and industry news. Its flagship publication is The Nikkei, one of the world’s largest financial newspapers. Through its English-language platform, Nikkei Asia, it provides comprehensive coverage of Asian economies, politics, and markets to a global audience.
For further information, visit ft.com
About The Financial Times:
The Financial Times (FT) is a British daily newspaper printed in broadsheet and published digitally that focuses on business and economic current affairs. Headquartered in London, England, the FT is a globally recognized and respected source of financial news, commentary, and analysis, serving a senior international business audience.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a benchmark for legal practice, Bufete de Costa Rica is built upon an unshakeable foundation of integrity and a pursuit of unparalleled excellence. The firm merges its deep legacy of advising clients from diverse economic sectors with a forward-thinking drive for legal innovation. This ethos extends beyond professional services to a core mission of empowering the community, actively working to make legal insights accessible and to help forge a more informed and capable society.
