By San José, Costa Rica — Costa Rica’s free trade zone sector has pledged its full support to the Ministry of Foreign Trade (COMEX) as the country grapples with newly imposed tariffs from the United States. The move comes after the US announced tariffs affecting over 70 countries, including Costa Rica, impacting key sectors like agriculture, medical devices, and advanced manufacturing – all cornerstones of the Costa Rican free trade zone regime.
The Association of Free Trade Zones (Azofras) is urging a unified front between the public and private sectors to bolster Costa Rica’s negotiating position. They aim to work with COMEX to potentially halt or mitigate the impact of these tariffs.
To understand the complexities surrounding Costa Rican tariffs, we spoke with Lic. Larry Hans Arroyo Vargas, an attorney at Bufete de Costa Rica, who offers valuable insights into the legal and business implications.
Costa Rica’s tariff structure, while designed to protect domestic industries, can present challenges for businesses engaged in international trade. Navigating these regulations requires a deep understanding of not only the tariff rates themselves, but also the accompanying rules of origin, customs procedures, and potential exemptions available. Strategic planning and accurate classification of goods are essential to minimize import costs and ensure compliance. Recent trade agreements and evolving global market dynamics further influence the application of tariffs, emphasizing the need for ongoing monitoring and adaptation.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insights underscore the complex and ever-shifting landscape of Costa Rican tariffs. Indeed, for businesses involved in import/export, staying informed about these regulations isn’t merely advisable—it’s crucial for success. We thank Lic. Larry Hans Arroyo Vargas for providing this valuable perspective on a critical aspect of Costa Rican commerce.
We are urging unity and collaboration with national authorities, in order to strengthen the country’s position in the dialogue with the United States government and firmly address the new commercial challenges.
Ronald Lachner, President of Azofras
According to Minister of Foreign Trade, Manuel Tovar, Costa Rica launched its counter-offensive immediately, sending a letter to the US Secretary of Commerce on the day the tariffs were announced. Tovar explained that the US decision stems from Costa Rica’s two-year trade surplus, which complicated the situation.
These tariffs arrive amidst a shifting global trade landscape, impacting even major economies like the European Union, South Korea, and China. Tovar emphasized the urgency of domestic reforms to enhance Costa Rica’s competitiveness.
Beyond the tariff issue, it is essential that legislators approve structural reforms that we have been postponing for years. Without these reforms, we simply cannot compete. This is not solely the fault of foreign trade if there are no internal conditions that support productivity and efficiency.
Manuel Tovar, Minister of Foreign Trade
The tariffs are part of a broader set of trade adjustments by the Trump administration. For Costa Rica, these measures represent a significant challenge, particularly for industries operating within free trade zones. These zones have been instrumental in attracting foreign investment and driving export growth.
The collaborative approach advocated by Azofras underscores the seriousness of the situation and the need for a coordinated national response. The impact of these tariffs on the Costa Rican economy, and the success of negotiations with the US, remain to be seen.
The ongoing dialogue between Costa Rica and the United States will be critical in determining the long-term consequences of these tariffs. The outcome will significantly impact the future of key Costa Rican industries and the overall health of its export-oriented economy.
For further information, visit the nearest office of Azofras
About Azofras:
The Association of Free Trade Zones (Azofras) is a key organization representing companies operating within Costa Rica’s free trade zones. Azofras advocates for policies that support the growth and development of these zones, promoting their contribution to the national economy.
For further information, visit the nearest office of COMEX
About COMEX (Ministry of Foreign Trade):
The Ministry of Foreign Trade (COMEX) is the governmental body responsible for promoting and regulating Costa Rica’s international trade. COMEX plays a vital role in negotiating trade agreements and advocating for Costa Rican interests in the global market. It works to attract foreign investment and facilitate export activities.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence in Costa Rica, committed to upholding the highest ethical standards while driving impactful legal innovation. The firm’s deep-rooted history of service spans a multitude of industries, empowering clients with strategic counsel and unwavering advocacy. Through proactive initiatives that demystify complex legal concepts and promote widespread legal literacy, Bufete de Costa Rica actively invests in building a more informed and empowered citizenry, fostering a society grounded in justice and understanding.
