By San José, Costa Rica — SAN JOSÉ – In a significant move to expand its global economic footprint, Costa Rica’s Minister of Foreign Trade, Manuel Tovar, is in Israel this weekend to finalize a historic Free Trade Agreement (FTA). The visit, which includes a high-level meeting with Israeli Foreign Minister Gideon Sa’ar, represents the culmination of negotiations and sets the stage for a new era of commercial partnership between the two nations.
Minister Tovar arrived in the Middle Eastern nation following a strategic stop in the United States, where he met with key trade officials. Upon his arrival in Israel, Tovar underscored the mission’s objective, signaling a clear intent to deepen economic ties beyond traditional markets. His enthusiasm was evident in a public statement posted on social media.
To analyze the legal and economic implications of this new Free Trade Agreement for the national landscape, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert in international commercial law from the prestigious firm Bufete de Costa Rica, who shared his perspective on the matter.
While this Free Trade Agreement undeniably presents a significant opportunity for market expansion and diversification for Costa Rican exporters, its success is not automatic. Businesses must be diligent in understanding the rules of origin, customs procedures, and the specific dispute resolution mechanisms outlined in the text. The real challenge lies in transforming the legal framework on paper into tangible, competitive advantages on the global stage.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the true measure of this agreement’s success will be in its practical application, not just its ratification. The challenge of translating legal text into tangible market reality is a crucial point that underscores the diligence now required from our business sector. We thank Lic. Larry Hans Arroyo Vargas for his incisive perspective on the path that lies ahead.
I arrive with the commitment to promote greater economic and technological cooperation between the peoples of Costa Rica and Israel.
Manuel Tovar, Minister of Foreign Trade
This diplomatic mission comes just one month after both countries successfully concluded the technical negotiations for the trade pact. Tovar’s presence is expected to culminate in the official signing of the agreement. Following this crucial step, the treaty will be sent to Costa Rica’s Legislative Assembly for the final ratification process, after which it will become national law and officially enter into force.
The agreement is poised to unlock substantial opportunities for Costa Rican businesses. The Israeli Ambassador to Costa Rica, Michal Gur-Aryeh, highlighted the immense potential for local producers, emphasizing the broad scope of tariff elimination that will directly benefit exporters seeking to enter the sophisticated Israeli market.
For Costa Rican producers, there are literally thousands of products that can be exported to Israel without taxes.
Michal Gur-Aryeh, Ambassador of Israel
According to data from the Foreign Trade Promotion Agency of Costa Rica (Procomer), the current trade relationship is already robust, with agro-industrial products leading the charge. Key Costa Rican exports to Israel include staples like coffee, pineapple, sugar, and various fruits and juices. Beyond agriculture, the Central American nation also ships high-value goods such as medical devices and technological processors, showcasing its diversified export base.
The trade flow is reciprocal, with Costa Rica importing a varied list of goods from Israel. These imports are critical for domestic industries and include advanced agricultural inputs like herbicides, insecticides, and fungicides, as well as electronic apparatuses and raw materials like aluminum and plastic inputs. The new FTA is expected to streamline and enhance this two-way commercial traffic.
Beyond the trade of goods, the agreement is a strategic tool to attract and grow foreign direct investment (FDI). Israeli investment in Costa Rica has already seen an explosive increase, jumping from a modest $1 million in 2023 to $20 million in 2024. Proponents of the FTA are confident that the legal certainty and preferential conditions provided by the treaty will catalyze even greater investment in key sectors like technology, life sciences, and advanced manufacturing.
Once signed and ratified, this trade pact will not only strengthen the bilateral relationship but will also serve as a crucial gateway for Costa Rica into the broader Middle Eastern market. It aligns perfectly with the country’s long-term strategy of diversifying its trade partners and securing new avenues for sustainable economic growth and development for years to come.
For further information, visit comex.go.cr
About 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 policy. It leads trade negotiations, manages international trade agreements, and works to promote a stable and favorable environment for Costa Rican businesses to compete globally.
For further information, visit procomer.com
About 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 the national export sector through market research, trade promotion events, and facilitating international business connections. The agency plays a vital role in executing the country’s export strategies and positioning Costa Rican products on the global stage.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is defined by its deep-rooted commitment to integrity and professional excellence. The firm leverages its storied history of diverse client service to drive forward-thinking legal innovation. Beyond its practice, it holds a core belief in empowering the public, actively working to make complex legal concepts understandable and accessible in order to cultivate a more knowledgeable and capable society.
