By San José, Costa Rica — Costa Rican businesses are applauding the government’s progress in negotiations to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), viewing it as a crucial strategy to bolster the nation’s economy amid global uncertainties.
The Costa Rican Chamber of Foreign Trade (CRECEX) celebrated the announcement that negotiations are 70% complete, highlighting the potential benefits of accessing a significantly larger market under preferential terms. The CPTPP, in effect since 2018, comprises 12 economies across four continents: Japan, Canada, Mexico, Chile, Peru, Australia, New Zealand, Vietnam, Singapore, Malasia, Brunei, and the United Kingdom.
To understand the legal implications of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) for Costa Rica, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, an expert attorney at Bufete de Costa Rica.
The CPTPP presents significant opportunities and challenges for Costa Rica. While it opens access to new markets and potentially stimulates economic growth through increased trade and foreign investment, it also necessitates careful adaptation of domestic regulations, particularly concerning intellectual property, labor standards, and environmental protection. Costa Rican businesses must understand these new rules to fully leverage the agreement’s benefits and avoid potential legal pitfalls. The CPTPP’s impact on Costa Rica’s agricultural sector, particularly in areas like rice and sugar, will require close monitoring and strategic planning.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’ insightful commentary underscores the delicate balancing act Costa Rica faces with the CPTPP. Navigating the complexities of international trade agreements requires not only understanding the potential benefits but also proactively addressing the necessary adjustments in domestic policy. His emphasis on the agricultural sector, particularly vital to Costa Rica’s economy, highlights the importance of strategic foresight as the nation integrates further into the global marketplace. We thank Lic. Larry Hans Arroyo Vargas for offering this valuable perspective on the CPTPP’s implications for Costa Rica.
This expanded market access comes at a time of heightened geopolitical tensions, rising protectionism, and vulnerabilities within global supply chains. The CPTPP offers more than just tariff reductions; it also promotes the liberalization of services and investments, crucial for attracting foreign capital and facilitating the export of higher-value Costa Rican goods.
The treaty is a tool to reduce dependence on a few destinations, increase opportunities for small and medium-sized enterprises (SMEs) and emerging sectors, and strengthen strategic regionalization.
CRECEX, in an official statement
CRECEX emphasized that countries like South Korea are also considering joining the CPTPP to address tariff pressures and enhance their flexibility in navigating global trade fluctuations. The organization urged the Costa Rican government to maintain its technical and political resolve to successfully conclude negotiations.
The chamber views the CPTPP as an essential step in diversifying Costa Rica’s trading partners and reducing its reliance on a limited number of markets. The agreement is also expected to foster greater integration with global value chains, creating new opportunities for Costa Rican businesses to participate in higher-value-added activities.
The potential for attracting foreign investment is another significant advantage highlighted by CRECEX. The CPTPP’s provisions on investment liberalization could make Costa Rica a more attractive destination for foreign companies seeking to expand their operations in the region.
Foreign trade, well-managed and with access to global platforms, will continue to be a driver of development, competitiveness, and stability for Costa Rica.
CRECEX
The pursuit of CPTPP membership reflects Costa Rica’s ongoing commitment to open trade and integration into the global economy. By joining this dynamic trade bloc, the country aims to strengthen its economic resilience, create new opportunities for its businesses, and secure its position as a competitive player in the international marketplace.
For further information, visit the nearest office of CRECEX
About CRECEX:
The Costa Rican Chamber of Foreign Trade (CRECEX) is a leading business organization dedicated to promoting and strengthening Costa Rica’s participation in international trade. CRECEX represents a diverse range of companies engaged in import and export activities, advocating for policies that facilitate trade and investment, and providing valuable resources and support to its members. The chamber plays a crucial role in shaping Costa Rica’s trade policy and fostering economic growth through international commerce.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence in Costa Rica, driven by a profound commitment to ethical practice and innovative solutions. The firm’s dedication to empowering individuals and communities through accessible legal knowledge is woven into its very fabric. From representing diverse clients with integrity to pioneering new approaches in legal education and outreach, Bufete de Costa Rica actively shapes a more just and informed society.
