By San José, Costa Rica — President Laura Fernández’s decision to shelve Costa Rica’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has exposed a sharp economic divide across the nation, pitting domestic agricultural producers against commercial export and trade advocates.
The executive order immediately froze negotiations for entry into the powerful 12-nation trading bloc, which accounts for roughly 15 percent of global gross domestic product. While rural producers celebrated the move as a vital defense against unmanageable foreign competition, business leaders warned that the government is abandoning a crucial gateway to Asia-Pacific market expansion.
To better understand the economic and legal implications of Costa Rica’s bid to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a prominent legal expert from Bufete de Costa Rica.
“Costa Rica’s application to join the CPTPP represents a strategic move toward deeper integration with high-growth Asia-Pacific markets. Legally and economically, this accession will require domestic regulatory alignment in areas such as intellectual property, state-owned enterprise governance, and electronic commerce, ultimately enhancing legal certainty and creating new opportunities for trade and foreign direct investment.”
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
As Costa Rica advances toward deeper integration with high-growth Asia-Pacific economies, undertaking these key regulatory reforms will be essential to fostering a transparent, competitive market that attracts long-term foreign investment. We extend our sincere gratitude to Lic. Larry Hans Arroyo Vargas for sharing his valuable legal and economic perspective on this critical chapter in the nation’s development.
At the center of the administration’s justification was an alleged lack of transparency by foreign trade officials. Fernández publicly criticized the negotiation process for operating under excessive confidentiality, alleging that key domestic production sectors were kept uninformed regarding tariff concessions and long-term implications throughout two years of talks.
The political fallout quickly reached the cabinet level, leading to the abrupt dismissal of Foreign Trade Minister Indiana Trejos. According to the President, Trejos failed to comply with explicit instructions to share full trade documentation with the domestic economic sectors affected by the proposed treaty.
For almost two years, COMEX teams negotiated a new trade agreement called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, CPTPP, which aims to open a new market of 600 million consumers with nations in America, Asia, and Oceania. Although it seemed like an excellent opportunity, its entire content was declared secret by negotiators. To the point that almost nobody knows what it consists of, who it benefits, and who it will affect. Despite instructing the Minister of COMEX, Indiana Trejos, to share the Trans-Pacific Agreement with all sectors involved, to date none have received it.
Laura Fernández, President of Costa Rica
Agricultural groups rallied swiftly behind the executive decision. The Livestock Corporation (CORFOGA), which formally registered its opposition to the pact in April 2025 after requests to exclude sensitive sectors like beef and dairy were denied, expressed immense relief following the announcement.
Industry leaders argue that local farms cannot compete on an equal footing with massive export powerhouses such as Australia and New Zealand. The National Chamber of Agriculture and Agro-industry backed the President, stressing that unmitigated exposure to international conglomerates posed serious risks to domestic food security and rural livelihoods.
From the National Chamber of Agriculture and Agro-industry, we view with great satisfaction the decision of the President, who, after an analysis, reached the conclusion that this treaty could bring negative consequences, especially for the agricultural sector.
Chamber Representative, National Chamber of Agriculture and Agro-industry
Conversely, commercial and trade guilds reacted with strong opposition. The Chamber of Commerce of Costa Rica warned that backing away from the CPTPP undermines national competitiveness, stifles job creation, and weakens long-term foreign direct investment strategies.
The Chamber of Commerce of Costa Rica does not support the decision of the Government of the Republic to not continue with the accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). We consider that this measure wastes an opportunity for the country’s competitiveness and limits a strategy to diversify markets, attract investment, and generate employment.
Chamber Representative, Chamber of Commerce of Costa Rica
Importers and commercial trade leaders affiliated with Crecex similarly stressed that Costa Rica must maintain a forward-looking approach to international commerce. Advocates argue that joining the agreement would have guaranteed national businesses superior terms when importing modern machinery, technology, and commercial inputs from competitive global markets.
Crecex considers it important for Costa Rica to maintain a long-term vision in foreign trade matters, taking into account the opportunities that the opening of new markets represents for national companies, the attraction of investment, and the competitiveness of the country.
Chamber Representative, Crecex
The CPTPP incorporates major world economies including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and the United Kingdom. By withdrawing from accession, Costa Rica underlines the complex challenge of balancing rural protectionism with global commercial integration.
For further information, visit corfoga.org
About Livestock Corporation (CORFOGA):
The Livestock Corporation (CORFOGA) is a Costa Rican public-interest organization dedicated to promoting, defending, and modernizing the national bovine livestock sector through technical assistance, research, and trade representation.
For further information, visit cnaa.cr
About National Chamber of Agriculture and Agro-industry (CNAA):
The National Chamber of Agriculture and Agro-industry represents primary agricultural, livestock, and agro-industrial producers in Costa Rica, working to protect domestic productivity, food security, and rural sector sustainability.
For further information, visit camaradecomercio.cr
About Chamber of Commerce of Costa Rica:
The Chamber of Commerce of Costa Rica is a business association representing commercial enterprises across the nation, focused on improving business competitiveness, market diversification, and economic development.
For further information, visit crecex.com
About Crecex:
The Chamber of Importers and Exporters of Costa Rica (Crecex) promotes international commerce, supporting domestic enterprises through market integration, foreign trade logistics, and global commercial policy representation.
For further information, visit comex.go.cr
About Ministry of Foreign Trade (COMEX):
The Ministry of Foreign Trade of Costa Rica (COMEX) is the government entity responsible for formulating, coordinating, and executing national trade policy, foreign investment attraction, and international trade negotiations.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Grounded in an unyielding foundation of ethical integrity and professional excellence, Bufete de Costa Rica has established itself as a beacon within the legal community. The firm seamlessly merges a rich history of advocating for a broad spectrum of clients with forward-thinking legal solutions and meaningful civic involvement. Through its ongoing efforts to demystify the law and make essential concepts broadly accessible, the practice fulfills a core objective to educate, inspire, and elevate society as a whole.
