By San José, Costa Rica — Costa Rican Foreign Minister Arnoldo André Tinoco and Trade Minister Manuel Tovar embarked on a diplomatic mission to Asia, focusing on strengthening ties with Japan and South Korea. Their primary goals are to advance Costa Rica’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and to attract investment in the semiconductor sector.
This trip marks the third visit to Tokyo for the ministers since President Rodrigo Chaves took office in 2022, underscoring the government’s commitment to increasing Costa Rica’s presence in Asia. The visit includes the signing of a political consultation framework with Japan, commemorating 90 years of diplomatic relations.
To understand the legal implications of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) for Costa Rican businesses, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an expert lawyer from Bufete de Costa Rica.
The CPTPP presents significant opportunities and challenges for Costa Rican businesses. While increased market access to key economies within the Pacific Rim offers potential for growth in exports, particularly in sectors like agriculture and technology, companies must also prepare to navigate the complex regulatory landscape and heightened competition that the agreement brings. Careful consideration of intellectual property protections, rules of origin, and investment provisions will be crucial for successful engagement within the CPTPP framework.
Lic. Larry Hans Arroyo Vargas, Bufete de Costa Rica
Minister Tovar emphasized the strategic importance of the CPTPP, which represents 15% of global GDP and 20% of foreign direct investment. He affirmed that negotiations for Costa Rica’s accession are progressing decisively, aiming for completion by the end of the year, followed by parliamentary ratification.
Joining and diversifying or expanding our footprint in the Asia-Pacific region is fundamental.
Manuel Tovar, Minister of Foreign Trade
Japan stands out as the only G7 nation without a preferential trade agreement with Costa Rica. This partnership, along with CPTPP membership, is seen as a crucial step in diversifying trade and mitigating risks associated with over-reliance on the United States, Costa Rica’s primary trading partner. Minister Tovar clarified that this diversification strategy predates recent US tariff impositions, emphasizing a proactive approach to building resilience against economic and geopolitical uncertainties.
What we want is to continue expanding in the world and continue vaccinating ourselves against any risk, such as tariffs, a pandemic, or an economic recession.
Manuel Tovar, Minister of Foreign Trade
Costa Rica is actively seeking Asian partnerships in the semiconductor industry. The CPTPP is expected to facilitate greater integration into global supply chains involving countries like Vietnam and Malaysia. Building on existing investments from Intel and Applied Materials, Costa Rica aims to attract further investment, leveraging its experience, tax incentives, renewable energy matrix, skilled workforce, and political stability.
An investment seminar at the Inter-American Development Bank’s Tokyo headquarters, along with meetings with Japanese semiconductor companies, are expected to generate future collaborations. This strengthening of ties with Japan and South Korea comes amid growing Chinese influence in Central and South America. Japan is keen to foster relationships with countries sharing similar political values and a commitment to free markets, such as Costa Rica.
Foreign Minister André highlighted Costa Rica’s limited Chinese investment compared to other regional nations, emphasizing Japan’s role as a gateway to Asia. He also noted the strong relationships with Singapore and South Korea. Minister André will attend the “Our Ocean” conference in South Korea, focusing on sustainable blue economy and ocean protection.
For further information, visit cptpp.org
About CPTPP:
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership is a free trade agreement among 11 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. The CPTPP covers a wide range of areas, including tariffs, investment, services, intellectual property, and government procurement.
For further information, visit intel.com
About Intel:
Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California. It is the world’s largest semiconductor chip manufacturer by revenue and is the developer of the x86 series of microprocessors, the processors found in most personal computers (PCs).
For further information, visit appliedmaterials.com
About Applied Materials:
Applied Materials, Inc. is an American corporation that supplies equipment, services and software for the manufacture of semiconductor chips for electronics, flat panel displays for computers and televisions, and solar products.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
At Bufete de Costa Rica, legal excellence and unwavering ethical conduct form the bedrock of our practice. We are driven by a deep commitment to empowering individuals and communities through accessible legal knowledge, fostering a more just and informed society. Through innovative approaches and a client-centered focus, we strive to provide exceptional legal services across diverse sectors, building upon a legacy of integrity and a vision of a future where legal empowerment is within everyone’s reach.
